2017 Board Meeting

Eagle Ranch Property Owners Assoc. Board Meeting – October 17, 2017

Location: Pueblo Main Library, Thurston Room

Called to order at: 7:01pm

Members Present: Bob Robler, President; Chris Robinson, Vice President; Debby Graham, Treasurer;

Jim Sandusky, Member At Large, Lenny Newland, Cathi Scriven, Claudine Riccillo, Sam Riccillo, Kurtz Reader, Chris Capote, Eugene McDonnell.

Approval of Agenda: All members present approved the agenda with the stipulation that items could be added during the discussion.

Approval of Minutes: Chris moved to approve the minutes as mailed to Board Members. Debby seconded the motion. Motion passed unanimously.

Updates:

1. Road Maintenance: The contractor is scheduled to grade the roads next week. At the same time we start our annual road improvement program: 80% goes on Nolan and Siegal. There will be about $8,000 of improvements. There are spots on Kaitlyn and Eagle Ranch Rd, which will also be getting gravel. The priority of gravel and maintenance was determined by contractor and board members driving on the roads. Question: the washboards on Shadow lane, will they be taken care of? Answer: yes, when the contractor grades the roads. Just a reminder – wash boarding is caused by the presence of a hill or people speeding. The speed limit is 25 miles per hour. One member volunteered to help with road maintenance at his own expense. This is not discouraged, but a caution was given about digging too deep, bringing up clay or pushing gravel off the road. There is currently no speed limit sign on Shadow lane. The Board has a speed limit sign and asked for volunteers to put it up. Lenny and another member volunteered to do this. Chris will be watching the contractor next week to make sure all is done. Cathi complained about gravel on the concrete by the mail boxes and volunteered to sweep it off.

2. Property Questions:

-Is hunting allowed in the subdivision? Answer: we rely on state law, which allows hunting on private property with permission of the owner. It does not allow them to cross onto other properties that have not given permission. For anyone that doesn’t want hunting on their properties, post signs or confront the trespassers. Question: what do you do if there are bullet holes in your windows? Answer: call the sheriff’s department.

-Trash is blowing onto Ryan’s land from the end of Kaitlyn property. At the time it blew there it was the responsibility of Fannie Mae. The new people just moved in and have trash in the gully left by the old tenants. -Who is responsible for the fence on Burnt Mill and Little Burnt Mill? The Snells and Joe O’Brien are as well as the cattle guards. The concern was voiced that someone might hit a cow on the Burnt Mill road when they get out. Because of the open range laws of Colorado, you fence animals out not in. If you have concerns, call the sheriff’s dept. or Joe O’Brien or Dan Snell, or the Brand inspector (look this up on the internet or call Chris).

Treasurer Report: Starting in January we had $73,765.09 in checking and savings. Income so far this year is $28,537.30 primarily from assessments and fees. Expenses $23,777.70. (See statement for detail) Net income $4,759.60. Closing balance is $78,524.69. We have 15 lots that are past due, totaling $25,185.56. Four of those lots have been assigned to the attorney for foreclosure or collection. Amendments to liens to bring them up to date are being filed. Bob added that attorney’s fees to date have to do with foreclosures and we will get all that money back when the property is foreclosed or the owner comes in to settle up. Four of the 15 lots are responsible for about $15,000 of the $25,000 past due. Those properties are up for foreclosure.

Business:

1. State Farm Insurance policy (approval and bill) – Due first of December. It covers one million in liability on roads and bridges. It won’t pay for any replacement. It also protects the board for any decisions made. There is fraud coverage of about $10,000. This has been the most cost-effective policy of any company the board has researched. The cost is $741per year. Jim made a motion that we approve and renew the insurance policy, Chris seconded. Passed unanimously.

2. Website information update - The contact information on the site does not work for Chris, Debby, Jim or the Newsletter. Bob’s recommendation is we take the contact information for Jim off the site, for Chris, Debby and Newsletter either remove the information or work with Ken Martin to fix it. Debby said she will go see Ken Martin to see if it can be fixed.

3. Bridge replacement work – We hired an Engineer out of Colorado City to give us a design based on EVRAZ requirements. The drawings show a box culvert with concrete head walls that function as retaining walls and cutoff walls. There will be guardrails to keep people from driving off into the ditch. Estimate of work is roughly $200,000. Currently we have about $65,000. It will take us about 15 years to get the rest of the money and the bridge probably won’t last that long. We may have to approach a bank to see if we can borrow the money. One option is to follow up on a loan or increase assessments, probably we will have to do both. After looking at the law to stay a limited expense community, we can probably go up to $600 or $700 per lot. Debby said we need to increase the assessment, because we have Kaitlyn bridge, Nolan bridge and Reba Ct bridge to maintain. There have been requests for more grading and gravel as well. So, both the regular and special assessment need to go up. In summary, the next steps are to 1) approach a bank; 2) get the drawings to EVRAZ and get approval for the plan; 3) get additional estimates.

4. Fees, Penalties, Charges discussion – Because of the current financial crisis, it led us to look at fees, penalties and other charges that will cover operating costs.

-Liens: for every lien we file there is a fee to file and a fee to take it off as well as a board member must go to the court house twice. It was suggested that there be a $100 fee per lien that the property owner must pay. When a lien is amended an additional $50 will be charged (Liens need to be updated/amended every 4-5years). Additionally, a $50 lien release fee will be charged.

-Need a fee for increased road usage – at this time because of the “business” at the end of Shadow Lane. Possibly a fee for hauling water. No actual fee was decided on.

-Rancher Access Fee – After discussion it was decided on at least double the annual assessment because the rancher uses all the properties roads.

-Transfer fee – this is a common fee for HOA and POA’s. At property purchase we do have to change current information- ledger, mailing labels and data base. $100 to $250 was suggested.

- Non-compliance penalties – for persons not in compliance with covenants. Procedures will be published on the website. A letter will be sent, then a hearing afforded to the property owner. Then the penalty will be assessed: actual cost and/or penalties for non-compliance.

- Repeat billing fee – fee for mailing additional bills. It was suggested to increase late fee and the interest rate being charged (currently 8%).

After discussion, it was decided to put fees and penalties into a resolution to vote on at the next Board meeting.

5. Foreclosure update – we have started foreclosure on four lots that owe a significant amount of money. One of the lots has a payment agreement with us that will pay it off in 2-3 years. We entered into a payment agreement with a second lot - they made one payment then defaulted after that, so we have gone back to court. All the additional court and attorney fees have been added into that amount and we are proceeding with foreclosure. On the other 2 lots they did not want to go into foreclosure and agreed to quit-claim the properties to the association. The attorneys are working on this now. We will then sell them to recover our costs and put any profit into the bridge rehabilitation fund. At the first of the year we will look at the delinquent list again and see if there are more properties that we need to go after for foreclosure.

Meeting was adjourned at 8:19 pm

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Eagle Ranch Property Owners Assoc. Board Meeting – 06-24-2017

Location: Bob Robler’s home

Called to order at: 8:32am

Members Present: Bob Robler, President; Chris Robinson, Vice President; Debby Graham, Treasurer;

Becky Robler, Secretary; Jim Sandusky, Member At Large.

Approval of Agenda: All members present approved the agenda with the addition of the Special Assessment

Approval of Minutes: Jim moved to approve the minutes of the last Board meeting. Becky seconded the motion. Motion passed unanimously.

Updates:

1. Road Maintenance – Jim said he was approached after the meeting by owners asking if maybe we could use slag on the roads instead of gravel. Bob said it is okay for driveways, but not roads because it is light and at the speeds people go on the roads it would take it off. Also some owners wanted to know if we could do an experimental chip and seal area. Because of the costs a short area is not feasible. Jim said he would see if he could get a cost estimate for chip sealing.

2. Property questions – Bob has been approached about assessments. Debby got a request for information on lot 108. She filled out the land title request. Debby also had a call from a Connie Sinclair looking for a horse property. She asked if she could build a barn with living quarters. Debby referenced the Covenants house square footage and told her she could look at the Covenants on our website.

3. Treasurer Report – Not needed for this meeting since we just had it at the annual meeting.

Business –

1. Special Assessments

a. Special assessments – Normally this is sent the first week of August. The one going out this August should specify what the special assessment is for: “future improvements”.

b. In the past we have always sent out two separate billings, one for the regular assessment and one for the special assessment. From a cost and work load perspective, it was proposed we send out just one assessment per year with both the Common and Special Assessments detailed on it beginning next year. Debby made a motion to send out the Special Assessment billing for 2017 the first week of August. For 2018, the billing will be delayed until February and include both the Common Assessment and Special Assessment Due in April instead of March. Chris seconded the motion. Passed unanimously.

2. Mowing Costs – payment for the work was clarified. Bob made a motion that the board will pay persons within the POA who contact the board and contract to mow the sides of the roads will be paid $60/mile – each side of the road. So $120/mile for a pass on each side of the road, or $60/mile mowed for a 5 or 6 foot pass. Jim seconded it. Passed unanimously.

3. Bridge replacement work – Bob and Chris have been talking to Atencio engineering. Other firms they have been talking to have been non-responsive. This new firm of Amanda Atencio and Chris Lesser put together a proposal. Preliminary estimates for precast Arch culverts would be around $160,000 to $170,000. Box Culverts would be around $110 to $130,000. To go further they would like a contract. It would cost $12,985 to do the design work. Question: “If we get the design work done now, is there a limitation on the time it is good for?” Answer: “Probably not, there is not going to be anything that changes significantly. The only unlikely thing would be if they no longer make the precast culverts.” Discussion: If we have the drawings then we can move forward with EVRAZ’s approval. If we wait too long we may have to start over with a different person at EVRAZ. Also, the presence of a plan for the special assessment with a cost estimate will assist in our rationale for saving up the money. If we want them to solicit bids or do onsite inspections, it will be billed at $110/hour, typically construction engineering costs are about half of the design costs. A motion to move forward with a contract with Atencio and Lessor providing the design and overseeing the construction was made by Chris, seconded by Becky. Passed unanimously.

4. Entrance improvements – The wood on the entrances is red treated wood, not Redwood. Some of it is warping. Although using extra screws has helped. In the future, the board will make sure we get Redwood to replace needed areas and update the last 3 entrances.

5. Attorney update and invoices – Bob and Debby got status reports from the attorneys. They ask that it be confidential and should not be shared. The reports were read, but will not be included in the minutes. Debby made a motion to move forward with the foreclosures on two lots, seconded by Becky. There was some discussion then the vote was made in favor of moving forward unanimously.

Bob called the attorneys to find out why they had not responded to his enquiries and why haven’t they sent us a bill. They replied that they sent two bills, which were returned. They had sent them to 500 Nolan Dr. instead of 5000 Nolan Dr. In the future they will be emailed to the President. Currently we owe the attorneys $845 for April and May. This is for the processing of the foreclosures. This money will come back to us. All agreed these bills need to be paid.

6. Articles, Bylaws, Covenants were signed, Bob will take them to the Pueblo County Clerk and Recorders office.

7. Questions/comments, Annual Meeting feedback - Question: “Are we liable for injuries or accidents of persons who are contracting to mow or volunteers on the entrances?” Answer: “It is the stance of the board that: No, we are not liable. These are volunteers and independent contractors.” There was also a discussion how everyone thought the meeting went and what could improve in the future.

8. Meeting adjourned at 10am

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Eagle Ranch Property Owners Assoc. Board Meeting – March 18th, 2017

Location: Robler's house

Called to order at: 10:16am

Members Present: Bob Robler, President; Chris Robinson, Vice President; Debby Graham, Treasurer; Jim Sandusky, Member At Large, Becky Robler, Secretary and Dan Hulbert, member of covenant/bylaws committee – Cathi Scriven and Claudine Riccillo, members of the were absent due to prior a engagement and illness. They did send in their comments to Bob.

Approval of Minutes: Debby moved to approve the minutes as mailed to Board Members. Jim seconded the motion. Motion passed unanimously.

Updates:

1. Entrance improvements – Entrance signs were shown to the board and guest. There are 6 volunteers so far to assist with the installation of entrance improvements. The date of April 7th was agreed upon by those present to do the first 3 entrances. Bob will check with the others who volunteered to see if that works.

2. Covenants, articles and bylaws – The rough draft was sent out to board members. We need to approve a final form to put out to the POA members by the Annual meeting.

Comments – Dan: several things he does not agree with: the marijuana ban; the ban on storage containers provision; He will not vote for the covenants at all if the marijuana ban stays.

*Cathi and Claudine (other committee members) – are in favor of the marijuana ban. (as sent in by them prior to the meeting.

Discussion -

*Marijuana -Dan stated that he personally can't have anything to do with marijuana, because of his job, but he feels that banning it decreases the property value. Other board members felt just the opposite was true. The example of the now defunct Kaitlyn grow operation was brought up. It has negatively impacted property value. That home was previously purchased for $550,000. After the grow operation was shut down, the property has been repossessed. At auction the minimum bid was set for $400,000, but no offers were made. It is still on the market. Another example was the attempted grow operation at Little Burnt Mill and Burnt mill. The persons there were aggressive, took wild shots at neighboring homes, and left trash. The Board along with neighboring POA's went to the licensing board and were successful at having the license denied. There is still trash there. Another example is the operation trying to go in on Shadow Lane. The noise and lights from just the construction at all hours of the night had neighbors complaining. The Shadow Lane operation owner was notified that they will be out of compliance with the current covenants as soon as they go into operation. (no commercial operations of any kind are allowed in Eagle Ranch)

Fees – Dan felt fees should not be in the covenants. Bob agreed and will put them in the By-laws. Dan wanted a set fee schedule. Becky proposed that any fee should depend on the impact on the POA. Because the board is all volunteer, there are no up front costs, hence, there should be no application fee. Most variances would have no fee as well. Debby brought up that only those variances granted impacting roads or having other real costs would have to have a fee schedule. Neighboring properties would have input to the approval/denial by the board. Fines for lack of compliance would be levied to bring persons into compliance if needed. It was stated that we are not a policing board, we work on a complaint bases. Dan felt we need a “Grandfather clause” included with the variances.

Vehicles – One committee member didn't like the language of the new covenants on vehicles because they have antique tractors. Other board members voiced that they don't mind machinery being left around on properties. The general opinion of persons present was that they don't want to see a salvage yard or a bunch of junk but some equipment is okay. If the machines/junk were hidden or aesthetically appealing it should be okay in an agricultural setting. Becky brought up variances as part of the language to allow some non-functional vehicles.

Tiny houses – Two committee members wanted to allow prefab tiny houses as guest houses. The proposal was made to leave this as part of the variance process, so the property owner has to come to the board for review and permission. It was brought up that currently stick built small guest houses are allowed in conjunction with the main house. Modular units would need a variance.

Voting on the covenants – Various methods to receive feedback and votes on the covenants, articles and bylaws were discussed. A motion by Chris to put the old and new versions of each on our web site by May 1, refer to them in the news letter and invitation to the Annual meeting to be put out by May 1, ask for feedback on each, and a vote by property owners by the Annual meeting in June. Seconded by Becky. Passed 4 to1. The notice of the Annual meeting will include the instructions to go to the web site.

Access Road 3.6 question: What is considered an access road? Our access roads were named in a proposed section (6.3)of the covenants. The ditch access roads are not the POA's, responsibility or liability. We must allow the Rancher and ditch rider to use those roads as long as they meet the easement requirements. Any more than that can be fenced off to disallow use.

3. Emails: We will request in the newsletter that people give us email addresses so we can send out notices in that manner, as well as mailing.

Business:

Budget:

-Income should be: 107 lots x $300 or $32,100 for yearly assessments. We should keep this the same for the next year.

-Expenses, none for equipment maintenance since we don't have any currently. Put all of that money into Roads and Bridges.

-We are not doing spraying, so that money can go into mowing of roadside weeds. Keep it the same at $1400/yr, but place it under Road and

Bridge Maintenance

-Have $1600 for snow removal, but put it into Road Maintenance since it is all part of that.

-Proposing having one category for Road and Bridge Maintenance that would include all mowing, snow removal, grading etc at $16000 and add entryway repair $1500.

-Need to bump up the Legal budget to $2000 to cover costs of foreclosure.

-Leave Insurance the same.

-Newsletter $350 , Debby will check on actual expenses from last year, but thinks that is enough.

-Contingency reserve – need to be more explicit and name it the “Kaitlyn Bridge and Contingency reserve and identify an amount. May need a footnote to explain the numbers and the fact that we can't get a loan to repair the Kaitlyn bridge as we have no tangible assets.

-Bob requested members look again at budget and make any suggestions at a future time.

Treasurer's report – Savings has $68,054.85 as of 12/31 statement; Checking has $13,805.99 as of 2/28/17 – reconciled. There was one check in March of $60 to Bridge Investigations. Today the Unreconciled Balance is $17057.33, with $400 for deposit on Monday. We will move some into savings, but will retain around $10,000 in checking for upcoming grading and legal fees.

-suggestion was made by one property owner that we put on the web site the date the assessments are due and how much. Becky said she would do that in the future.

Other:

We have not had tax free status in the past, but Becky will mail in the application so we will be in the future

* Fanny Mae requested a W9 and ledger, Debby will fill it out and send. Bob will send her the email of where to send it.

* Bob had a meeting with Joe O’Brien. Lot 40 was excluded from fees, but not rules of the POA. There is a document given to Bob on file with the Secretary that was drafted when the property was sold. If the property sells to another owner, it will then be subject to fees and rules of the POA.

* Lots 106 and 107 were excluded forever. We have that document as well.

* Grazing rights: Joe indicated that he may be willing to sell us the grazing rights in the future. Bob was given a copy of the grazing lease. It is a 5 year lease – restricted to 125 head, at $12/head/month. It is unknown what the actual payments were, since the cattle are not there all year and may not be that many at any one time. To purchase the lease we would have to pay for the balance left in the lease at a discounted rate – could be as much as $60,000 to purchase it. Each year that goes by it will be less expensive, but at the end of the lease he will renegotiate it so the balance will never be zero.

Bob asked Joe if we could have a portion of the lease since the rancher uses our roads. Joe said he can't do that, but would be willing to give an annual contribution to the POA for road maintenance.

* Attorneys and Foreclosures- Candace Cavanagh of Orten, Cavanagh & Holmes LLC, reviewed our covenants and said we can foreclose on properties to collect interest, fees and attorneys fees as part of the foreclosure. The properties would go up for auction for what we have into it (reserve bid) if no one bids on it we would get title to it; if someone bids beyond the reserve bid, they would get title to it and we would get our money owed. Question: If someone bids more than what is owed to us, where does that money go? (This will be forwarded to the attorney for an answer.) We can do this on an hourly rate or a fixed fee. Demand letter is $150, Notice is $150, Review of title is $45. Hourly is $295-340 for an attorney; $195-295 for an associate. Question: do we have to pay this upfront or after the foreclosure takes place? Question: is it per lot, or if we give them a group are the fees inclusive? Question how can we improve our position in a bankruptcy so we don't take losses in the procedure? (These questions will be forwarded to the attorney as well.)

* A motion was made by Debby to “Hire Candace Cavanagh of Orten, Cavanagh & Holmes LLC out of Colorado Springs to assist us in the collection or foreclosures on properties with past due assessments.” Seconded by Chris. No discussion. Motion passed unanimously.

* Test case go after the biggest ones – lots 30 and 32.

* Becky made a motion: “Move that the Board go after foreclosures on Lots 30, 32, 31, and 70, using Candace Cavanagh of Orten, Cavanagh & Holmes LLC, immediately.” Debby seconded. Motion carried unanimously.

* Question: What is our intent? Answer: Recoup our losses. The board does not want to be property owners. If the board gets title to a property, it will be sold as soon as possible. The money will be used for Bridge and road repair and maintenance.

Meeting was adjourned at 12:45pm

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Eagle Ranch Property Owners Assoc. Board Meeting – February 21, 2017

Location: Main Library, Pueblo, Thurston Room

Called to order at: 7:02 pm

Members Present: Bob Robler, President; Chris Robinson, Vice President; Debby Graham, Treasurer;

Jim Sandusky, Member At Large, Mike McDonnell, owner; Cathi Scriven, owner; and Horst

Armbrust, owner.

Approval of Agenda: All members present approved the agenda with the stipulation that items could be added during the discussion.

Approval of Minutes: Jim moved to approve the minutes as mailed to Board Members. Debby seconded the motion. Motion passed unanimously.

Updates:

1. Road Maintenance –

-We had a request from a property owner to grade Nolan and Siegel, but haven't had a chance to drive it. Responded to owner saying that the board had decided to grade primary roads twice a year and all the roads once a year, even those with no houses on them. Then we may grade once more depending on need. The Board decided to drive the roads soon and then make the determination if needs grading because of the added cost.

-Chris and Bob met with Evraz and a contractor about the Kaitlyn bridge improvements. Evraz said in December that they would accept a bridge replacement, repair, or concrete box culvert, but they would not accept a metal culvert. They gave the following parameters: it must have the ability of passing 160cfs, and it has to be rated for highway loads for heavy equipment and have guardrails. Bob and Chris met with a contractor who will put together a proposal that takes these parameters into consideration to let us know where we stand with costs.

- It had been brought up previously to see if we could get a loan to help with the bridge. It was found that it is not feasible due to lack of collateral or guarantee that everyone would pay their assessments.

-Once we have a proposal, we will look at the budget for next year and see if it is feasible to move forward then or what the time line will be. It is our plan to continue the additional special assessment in the fall, with the entire amount going to the bridge budget. We may have to increase it from the current $100 if additional road maintenance is required. Because of cost of living increases since the state mandated limit of $400/year we could probably assess up to $500.

2. Property questions –

-Bob has been getting a few questions concerning the Kaitlyn bridge which is holding up the sale of a property on the road.

- We are considering meeting with Red Creek Ranch concerning the grazing lease. We would like to at least get $300/year from the rancher to pay for road maintenance. Members stated they feel he uses the roads more than one family dwellings so more money may be indicated.

- There is a cattle lease on the land to the west of the POA. We would like to approach the state to say if there is access to the land through our roads that the lessor would have to pay $300/year as well in order to use our roads. Chris stated that the state told the lessor that he no longer had access using our roads since he is not a property owner.

3. Treasurer Report:

-Debby presented the Yearly Income and Expense Statement: January 1-December 31st , 2016. (See attached statement.)

-Delinquency report: One of the owners of two lots has died, his wife's last known address was in California and has not been traceable. The Treasurer wants permission to initiate a search for heirs to get a collection of fees. Cost estimate $75. Jim made a motion to spend the $75 to trace the heirs and bring this land to some resolution, Chris seconded. No discussion, passed unanimously.

-Default letters have not yet been sent for this year. Balance due amounts were sent with assessment notices.

-Up to date Treasurer's report: Current 2017 bank balance - $73765.09; 2017 income to date - $6,300.00; 2017 expenses to date – $1062.56; total bank balance as of February 21, 2017 - $79,002.53.

Business:

1. Shadow Lane Mailbox - At the last meeting there was a request to pay for the mail boxes that were installed by a private individual. The Board talked about doing a special assessment for those properties that would use the boxes and reimburse the individual that purchased them, but after research was done, it was found that the Board cannot do special district assessments. Therefore according to the responsibilities of the POA, which do not include mailboxes, we will not be reimbursing the private installation of mailboxes now or in the future.

2. Bridge replacement work – This was covered earlier. Question: Is there a time line? Answer: It would have to be in the fall, to comply with requirements of diverting the water. We will also have to wait until the cost estimates come in, but it looks like we would not have the money to complete the work for a few more years at least until our reserves are built up to pay for it.

3. Entrance improvements – We did order and receive signs for the entrances. One set has POA name and contact information for the POA. The current signs have incorrect information. Metal artwork was ordered and received for each entrance. We are hoping to do the fence work, mount the signs and install gates where appropriate for 3 entrances this year and 3 next year. This will be done with volunteers in April. The vertical logs will be gone, 2x6 redwood or cedar rails and 6” round posts and 4' gates for pedestrians and horses will be installed at each entrance. Mike McDonnell volunteered to assist with the entrance construction. Question: Are you going to put a Stop sign on Eagle Ranch road where it enters Little Burnt Mill Rd? Answer: The board didn't know there wasn't one there. They will look into it.

4. Bylaw and Covenant changes (committee report):

Bob said thank you to the committee that put the work into revising the Bylaws and Covenants. They met many times and put many hours into completing the work. The Board is not quite ready to post them on the website. The board needs to meet and have a work session on the changes. The committee made suggestions and are not in agreement on all of the changes.

a. Articles of incorporation: the changes were to remove any and all references to Red Creek Ranch, Joe O'brien and their office, and made it current to our POA name and address. When Claudine was doing research, she found references to the stated responsibilities that are incorrect in the Articles and in the Declaration. They had references and regulations from the “Colorado Common Interest Ownership Act”, in reality we are a “Limited Expense Community”. So we need to change the language in the Articles and Declaration to reflect correct legal tenants. The law changed in 1998, but Red Creek Ranch was continuing to use language from their previous developments without changing to current laws. All we have to do as a Board is agree to the new language in the “Articles of incorporation” and then we can file the new document with the state.

b. Bylaws – The big changes were to remove references to Red Creek Ranch and anything that refers to the “Declarant”, which was Red Creek Ranch. Claudine was the one that researched the “Articles” and Dan was the one that did the research and writing of the bylaws and both were reviewed by the whole committee. The committee wanted to define “Proxy Voting” and add a “Variance” provision, so the Board had the authority and responsibility to grant variances for situations that came up that are gray areas. A penalty and fee clause was also added. Right now there is nothing we can do to anyone in violation, except write letters. All documents will be posted on the website as soon as they are proofed for language and grammar. They will be posted as “DRAFT”. Question: “Are we going to have an attorney review them?”; Answer: “Currently, no. The committee went through the State regulations and conformed them to these. Attorneys cost $250/hour, the cost benefit isn't there.”

c. Declaration of Covenants – Again, the committee removed references to Red Creek Ranch and the Declarant. The committee added Marijuana language that does not allow any type of commercial operation in the subdivision. Question: “How is that going to work since there is already one (grow facility) there?” Answer: “They are not already in operation yet, they have a license and a building. We have written them a letter letting them know that as soon as they go into operation they are in violation of the covenants. We would try to work with the licensing board, but their stance is that they would not enforce covenants, if we want to take it further than that, it would take a court action. Everything we have written to this operation we have copied to the licensing board. We have already had complaints about their activities from neighboring properties.”

- Another change was to modify the sign language, the state law says that you cannot exclude political signs, but you can regulate them. We came up with language to limit size and how long they can be posted before removal. This could be another fee if the board had to remove them.

- The committee would like to add, in conjunction with the by-laws, a variance, penalty and fee clause that would refer to the bylaws for for information.

- The committee would like to write into the Covenants the exclusion of lots 40, 106 and 107. These were originally excluded by Red Creek Ranch. This would be the most cost effective way to continue how we have been operating without redrawing the POA map using a surveyor.

- The last addition is to change to voting to simple majority instead of 75%, which is allowed under the Limited Expense Community Laws.

- Items of contention:

-Marijuana language – one member believes commercial grows should be allowed because it will improve the value of his property. Others believe it would be just the opposite.

-Second item of contention is: Sheds, tiny houses and storage containers. The committee could not agree on language on Manufactured buildings. Right now the covenants do not allow Manufactured buildings like mobile homes, Modular homes, etc. A strict interpretation would be a shed from Lowes would not be allowed. Therefore the board as a whole should meet and determine language we will go forward with before posting “drafts” on the website. One committee member thought that a “Tiny House” would make a good guest house. Another thought that shipping containers was acceptable, others were strongly opposed because they are “junky”. Currently they are only allowed temporarily.

- The third is “inoperative vehicles”, there are currently antique vehicles on properties, and there are also junk vehicles, defining the difference is difficult.

Other: Any A-1 Zoning allows only 36 marijuana plants per property. The Sheriff will not enforce this, but they can come out and verify the number of plants and report this to the Zoning Dept., which can enforce the regulations.

Meeting was adjourned at 8:24pm