2006 Annual Meeting

Eagle Ranch Property Owners Association

Minutes for 2006 Annual Meeting Held Saturday, June 24, 2006

The meeting was called to order at 11:35 by Ken Simpson, President, with 29 Lot owners or proxies present.

Secretary’s Report: The 2005 Summary Minutes were read by Debby Graham, in the absence of Secretary Alison Oswald, and approved as read.

Treasurer’s Report: Cathi Scriven provided a copy to all in attendance. It was noted that total expenses exceed income, due in part to Kaitlyn Bridge approach repair which included installation of a culvert. In addition, the roads were graded three times, with spot grading on Nolan and Siegel this spring. Weed spraying was just completed and the bill is not included in this report, but we expect to realize a savings of about $600 over a full spray.

A checking account was opened at Pueblo Bank and Trust, due to unsatisfactory experience with US Bank. The savings account remains with US Bank, since they are paying a better rate at this time.

Ken Simpson commended Cathi for her excellent work in collecting the annual assessments, with only 1 lien outstanding for 2005 and 2 liens filed for 2006.

Budget Approval: The President noted that 55 of the 104 property owners eligible to vote abstained from doing so; despite receiving a stamped self-addressed envelope to aid in submitting their ballot. Ballots were sent via first class mail to all property owners. We did additional follow-up where no response was received via valid telephone numbers or email addresses. Since the meeting was properly called and a quorum was present, abstentions were excluded from the basis upon which the majority vote was determined (Reference Roberts Rules of Order, Chapter XIII, No. 44). On such basis (55), 28 votes were required to ratify the budget. Voting results were 35 in favor; and 15 against. Accordingly, the budget was ratified with 2007 dues raised to $200.00 per lot.

It was noted that the Board cannot propose a budget requiring an assessment greater than $200 unless approved by the required percentage of all property owners (see New Business).

Road Report: Grading of the roads is currently completed three times per year. Evan Consalves of Evan’s Earthworks was available for a lively discussion of the road maintenance. Evan explained the various materials that constitute road base and how weather and speed can have an adverse affect on road maintenance. It was also noted that our roads do not have even half of the amount of compacted road base of the county roads. Everyone needs to slow down to help preserve the road base that we do have.

As reported at the 2005 annual meeting, it was again noted a substantial portion of the Shadow Lane road complex has inadequate road base. Although this situation is to be addressed in the near term it was requested that anyone preparing to start construction in that area give the Board notice so that additional road base can be addressed before the road is damaged by construction traffic.

It was also noted that our neighbors at St. Charles River Estates increased their annual assessment to $300 to maintain their road surface.

An Engineering Report was obtained from Beebe Engineering Co., which provided Load capacity for our 3 bridges, as follows:

Nolan Drive – Load = 58 tons. The un-braced length is 58 feet.

Kaitlyn Drive – Load = 46 tons. The bridge has a bow which deflects 1 to 1 ½ inches; the un-braced length is 79 feet.

Reba Court – Load = 65 tons. There are 56 feet un-braced.

(Note: The Pueblo County minimum for comparable public roads is 44 tons. A full cement truck weighs approximately 72,000 pounds, or about 36 tons.)

Mike Ager suggested culvert pipes in the ditch line to replace the bridges, estimating the cost to be about $4,000 each. The Board will look into requirements for approval from the ditch company, culvert cost and cost of disposal of the existing bridges.

A question was raised about deeding the roads over to the county. The Board will investigate the county requirements and property tax effect, if any.

Fire Protection: Several requirements for creation of a Volunteer Fire Department were included in the Spring 2006 Newsletter article by Nicole Swartwood, currently available on the website: www.erhoa.org, were read by Ken Simpson. Mr. Al Taylor (Lot #65) has also provided input on this topic. These and other considerations include:

• Splitting the volunteer fire department into a separate organization from the Property Owner’s Association.

• Have a sufficient number of willing and able bodied volunteers that can make themselves available 24 hours a day and 7 days a week.

• Probable necessity to increase annual assessment to the maximum allowable by the state.

• Having a heated, insulated building for your fire fighting truck.

• Installation of a 20,000 gallon cistern (average water usage in typical house fire per Rye Fire Department).

• Application for grants and accept donations to start the volunteer fire department.

• Insurance considerations for both the POA and the volunteers.

• Initial and ongoing education and training requirements

• Start up costs which include helping to purchase worker’s comp, liability insurance, oxygen tanks, fire resistant gear, safety courses, CPR courses, CDL licenses, etc.

• To gain cooperation, we may be required to provide assistance to other Volunteer Fire Departments in the area.

• No guarantee that there will be a reduction in homeowner’s insurance premiums.

Cathi Scriven has information from the Department of Emergency Management, who hopes to work with Eagle Ranch, Verde Valley and St. Charles River to develop a volunteer fire department.

St. Charles River Estates has a community well and 1,500 gallon cistern for fire protection.

It was reported that there was a recent grass fire at the St. Charles River Nature Trail area. Someone called 911; Pueblo County fire trucks arrived in about 45 minutes and Rye arrived later. Members of both Eagle Ranch and St. Charles River Estates were able to put out the grass fire prior to arrival of the fire departments. (Note: The City of Pueblo Fire Department will not respond out in the county.)

A comment was made that the apparent cost and staff required to develop and maintain a volunteer fire department may be prohibitive. It was also noted that (1) in many rural areas, such as in Montana, pick-up trucks with water tanks and pumps are utilized and (2) that whole house sprinkler systems could be considered by property owners.

Pueblo County is currently under a fire ban, with no fireworks allowed and no charcoal fires.

New Business

Association Laws: The State of Colorado has enacted legislation affecting the conduct of Common Interest Communities such as the ERPOA. (Reference: Senate Bills 05-100 and 06-089). A handout was provided summarizing items currently requiring attention. The ERPOA will continue to review and give notice of changes required in future newsletters.

However, one important change indicates that the percentage of votes of property owners necessary to change or revise our covenants must be not less than 51% or more than 67%. Our covenants currently state a 75% requirement. The new ERPOA Board will establish a revised percentage, taking into consideration input from property owners, at their next Board meeting.

Horse Gates: Ken Simpson advised the ERPOA should own horse gates for inclusion in insurance coverage of entrances. It was noted that the gate at the entrance to Kaitlyn Drive was installed by the owners of Lot 39 and that appropriate reimbursement thereto should be considered.

Trail Access: Nicole Swartwood reported that, due to insurance liability considerations, the St. Charles River Estates nature trail access is being denied. However, documents received by many at the time of purchase from Red Creek Ranch, indicate that Eagle Ranch is to have open access to the trailhead and nature trail. This matter is currently being addressed.

Ballots and Election of Officers: Prior to the election there was some discussion about multiple family members being on the board. The group was in agreement that there should be no husband and wife on the Board at the same time, although there is no covenant restricting such. Nor is there a restriction again persons that are related and also property owners being on the board. Six names were on the ballot for the five board positions. The newly elected officers are:

Ken Simpson, President

719-676-2964

pres@erhoa.org

Tom Ossner, Vice President

719-568-3107

vp@erhoa.org

Theresa Ager, Secretary

719-676-4044

secretary@erhoa.org

Cathi Scriven, Treasurer

719-676-3199

cathi@erhoa.org

Nicole Swartwood, Member-at-Large

719-676-2583

mal@erhoa.org

Correspondence to board members and annual dues payments should be addressed to:

Eagle Ranch POA

5000 Nolan Drive, Box A-11

Pueblo, CO 81004

It was recommended that the newsletter be sent only via email in order to save money. The new laws require certain information be provided via first class mail and that printed copies of correspondence be provided to those who do not have access to email or prefer a hard copy. Email can be used for those who have no objection on certain correspondence.

The business meeting adjourned at 1:15 p.m. and everyone was welcomed to enjoy the picnic lunch. Organic hamburger patties were provided by Evan’s Earthworks. The POA provided additional meats, condiments and bottled water. Everyone enjoyed sampling the salads and desserts contributed by those attending.