PLUM CREEK MASTER HOMEOWNERS ASSOCIATION
www.plumcreekhoa.com

BOARD OF DIRECTORS MEETING

October 9, 2002

CALL TO ORDER & VERIFICATION OF QUORUM

The meeting was called to order at 7:00 p.m. by Board member Mark Kramer (Vice President). Also present were Board members Ross Fife, Sheila Haulter, Al Holowinski, and Clyde Simmons (Treasurer). Also present was John O'Connor of Pristine Communities, Inc. Board members Jason Johnson (President) and Mark Richards were absent. Mr. Kramer noted there was a quorum.

APPROVAL OF SEPTEMBER 11, 2002, MINUTES

Motion was made, seconded, and passed unanimously to approve the September 11, 2002, minutes. The minutes will be posted on the website.

HOMEOWNERS FORUM

There were no homeowners present, so the homeowners forum was closed without discussion.

MANAGEMENT REPORT

Mr. O'Connor reviewed key points of the September 2002 financial statements, as follows:
- Income year-to-date $103,700 budgeted $103,700 actual
- Operating expense year-to-date $116,300 budgeted $101,800 actual
- Net operating income (loss) year-to-date $ (12,600) budgeted $ 1,900 actual

Mr. O'Connor stated that tree trimming costs have been paid and are included in the actual expenses. He noted that the fruit trees would be done at a later date. He further noted that any surplus resulting from reduced water usage would be placed in the reserve fund.

OLD BUSINESS

Proposed Rules and Regulations-Mr. O'Connor reported attorney Rich Johnston's determination to not include the suggested language for the proposed rules and regulations. Instead, any issues will be handled on a case-by-case basis. He noted that existing violations could be grandfathered only if related to the new (i.e., changed) rules and regs.

Motion was made, seconded, and passed unanimously to adopt the modified rules and regulations of the Plum Creek Master Homeowners Association, which will be titled, "As Amended October 2002."

Welcome Letter-Mr. O'Connor provided the board with a new draft of a proposed welcome letter to new homeowners, which was revised to include information regarding covenants. The board was in agreement that Mr. O'Connor should commence sending this welcome letter to new homeowners.

NEW BUSINESS

Landscaping Maintenance Update-Duane Farnsworth of Douglas County Maintenance (DCM) joined the meeting and provided the board with an update of several issues. Mr. Farnsworth reported that DCM is in the process of blowing out the sprinkler system. Mr. O'Connor offered his compliments on DCM's fertilization and aeration results, as well as their water conservation efforts. Mr. Farnsworth suggested that additional savings could result from replacing sprinkler heads to those that would maintain pressure levels. The board authorized replacement to these type new heads as needed. Mr. O'Connor reviewed for the board the history of the watering system and indicated that at some point the 18-year-old system would need to be updated to a more efficient system. The cost of these improvements would be covered by the reserve fund.

Snow Removal Contract-Discussion was held regarding the snow removal contract submitted by DCM. Mr. O'Connor pointed out that DCM's rates remain the same as last year's contract, except a slight increase for hand shoveling, which would be minimal. As before, snow removal is based on a 4-inch accumulation on sidewalks, which service is provided within 24 hours following the end of a snowstorm and/or after city plows have cleared the streets.

Motion was made, seconded, and passed unanimously to accept the snow removal contract with Douglas County Maintenance for the 2002-2003 snow season.

Christmas Tree Lights-Discussion was held regarding Christmas tree lights. Mr. O'Connor stated that the lights would be installed by the beginning of November and tested by mid-November, so that the lights could be turned on at the same time as the Castle Rock star is to be lit, usually the Saturday before Thanksgiving. Mr. Farnsworth noted that stringed lights are recycled each year and budgeted for replacement as needed.

Plum Creek Boulevard Entrance Damages-Mr. O'Connor reported that Mr. Farnsworth met with a representative of Burlstone, the contractor who installed the stoplights. They made a physical inspection of the intersection, and Mr. Farnsworth identified specific damages that need to be repaired. Either Burlstone or the Town of Castle Rock will reimburse the cost of these repairs, estimated at $1,465. It was specifically noted that this cost does not include any irrigation repairs, which will be billed separately at a later date. Mr. O'Connor will follow up on this matter.

Insurance Renewal-Mr. O'Connor advised the board that the association's liability insurance premium would increase at renewal; i.e., this year's budgeted amount of $4,600 could increase to about $7,000. He briefly explained the insurance coverage, noting that liability insurance was required by the declaration. Current coverage is $1 million per occurrence, with a $2 million aggregate. Mr. O'Connor further advised that the insurance agent, Talty, was obtaining competitive bids for the insurance renewal.

2003 Preliminary Budget-Mr. O'Connor gave a brief overview of the 2003 preliminary budget. He specifically noted that the only open line item was the fountain cost. It was suggested that this amount be budgeted at $18,000, which would bring the 2003 budget on-target. The board could make a decision in the spring regarding how best to handle the fountain issue.

Discussion was held regarding appointing a Budget Committee to review the 2003 preliminary budget and make recommendations. Mr. O'Connor suggested that the three-person committee consist of Mr. Simmons (Treasurer), plus Ken Van Horn and Lawanda Tinnen, both of whom have served on this committee previously. Mr. O'Connor stated that the committee would meet by mid-November, so that the 2003 budget could be finalized at the December meeting.

NewsPress Article-For the board's general information, Mr. Simmons handed out a copy of a NewsPress article from the October 9, 2002, edition regarding a dispute between a board and its architectural control committee in another Douglas County subdivision.

Castle Rock Development-A general information discussion was held regarding current and planned development in the Castle Rock area.

ADJOURNMENT

At 8:00 p.m., a motion was made, seconded, and passed unanimously to adjourn the meeting.

NEXT BOARD MEETING-Wednesday, November 13, 7:00 p.m. at Plum Creek Country Club, in the Plum Room.