Minutes of the Annual Homeowners' Meeting

Ashbury Condominium Association

April 9, 2002

Attending: Board members Sunday Rowlee (207), Orin O'Neill (206), Eyvind Westby, (403), Greg Kappers (Portsmouth LLC, the owner of the commercial space); property manager David Whitener; George Beers of Property Consultants International (PCI); Homeowners Anthia Kappos (102), Angela Richard (105), Collin Lee (204), Joe Sievers (205), Diane Calvert (209), Michael G. Lee (301), Ranee Kakaria (304), Sara Mano (307), Christophe Chagnard (402) Doug Beeman (409).

The meeting was called to order at 6:33 pm by Sunday. It was determined that a quorum was present; 42.31% of homeowners were in attendance. Introductions of Board members and George Beers were made.

Earthquake insurance claim: George explained that our insurance carrier has been engaging in delaying tactics, something that has happened in many other claims in which PCI has been involved. When asked what individual homeowners can do, George emphasized that patience is the best strategy, and expressed thanks for homeowners' cooperation with regard to inspections of individual units. George said the best way to deal with the insurer's tactics is to file a lawsuit alleging negotiation in bad faith, but to hold the suit in abeyance until it becomes obvious that no other avenue is open to achieving resolution. One homeowner expressed support for pursuing litigation; George pointed out that PCI would absorb legal fees initially. When asked about Ashbury's insurability, it was pointed out that our present carrier has already informed us that our policy will not be renewed when it expires in June (go figure…); George said higher premiums and higher deductibles are certain, though a new carrier can add a voice that confirms earlier assessments of damage and required repairs. When asked why repairs to the common areas haven't been completed, George pointed out that insurance wouldn't pay twice, i.e., if a crack in a wall were merely patched without fixing the underlying wall structure, the crack could reappear, but we would have to at least partially bear the costs of repairing it again. When asked about the Association retaining an attorney, David said this had been discussed, and he would be supplying names to George.

Reports from officers: President—Sunday noted progress in addressing punch list issues, which numbered over 70 at the beginning of her term, the list having been reduced to 5; passage of an initial set of house rules; acquisition of a mailroom table (thanks to Orin for finding it at a furniture store on Etruria); acceptance of our application for the SBA loan; the new walkoff mat in the garage (thanks to Anthia for getting us a great deal!); creation of a schedule for cleaning and minor maintenance; the hiring of PCI to handle our insurance claim; replacement of the door handles with vandal-resistant ones (she reminded homeowners to make sure doors are completely shut when entering or leaving the building); and the replacement of the garage-door motor with one better suited to use in a residential parking garage. Treasurer—Eyvind explained the increase in homeowner dues needed to repay the SBA loan, on which we have received $25,000.00; combined with money already in the replacement reserve and checking account, the Association presently has approximately $43,000.00; we did exceed our budget as a result of replacing exterior door handles, fixing the garage drainage problem, and replacing the garage-door motor.

Committee Reports: Ashbury Web site—Orin explained that the site is hosted by Yahoo!GeoCities, which provides this service at no cost in exchange for adding pop-up ads; because of Yahoo!'s recent financial problems, Orin said pop-up ads may be more numerous and more persistent, so please bear with it. Orin concluded by asking anyone who might be interested in learning how to maintain the site to please contact him (doing so requires no financial commitment and no special software, only an Internet connection).

Property Manager's Report: Window screens—David says homeowners have contacted him; the company offering this is not the same one that did the initial batch; we will try to find contact info for that company. Video surveillance signs—These will be installed shortly… we hope they will deter whoever's been beating on the exterior doors… Window washing—The company that did this last time has raised its fee significantly, so alternative bids are being sought. Reaching David—He said a homeowner had called the office number over the weekend about an emergency; fortunately, it turned out not to be urgent. Homeowners are encouraged to call on David's cell number: 206. 949.9120.

Board Member election: No nominations were received prior to the meeting, and no nominations were made from the floor; since Sunday has declined to run for another term, the remaining Board members will appoint a homeowner to the empty seat.

New Business:

• By voice vote (MSP—Eyvind, Sunday) the homeowners present decided not to waive the annual audit pursuant to the Washington Condominium Act, due to the fact that we have ordered a transition audit, which will be completed shortly.
• By voice vote (MSP—Orin, Eyvind) the homeowners present decided to direct the Association to apply excess membership income against subsequent tax year assessments as provided by IRS Revenue Ruling 70-604.

There being no further business, the meeting was adjourned at 7:42 pm.

Respectfully submitted,

Orin O'Neill, Secretary