Meeting Minutes

January 3, 2010

Park River Oaks Estates HOA Board minutes

ATTENDED: Marguerite Elia, President; Eric Olsen, Vice-President; Liz Dare, Treasurer; Darrell Hamamoto, Secretary

Marguerite Elia began the meeting at 5:30 pm. Quorum was met.

#1) Volunteer to Record Minutes: D. Hamamoto volunteered. We might also try rotating minute-takers because of the amount of work involved. The minutes should be complete and on permanent record within thirty days.

#2) Darrell Hamamoto was voted onto the Board on 11/01/09.

#3) Election of Officers: An unanimous Board vote for Marguerite Elia as President; Eric Olsen as Vice-President; Liz Dare as Treasurer; Darrell Hamamoto as Secretary.

#4) Past problems with Board minutes, We are missing seven sets of minutes, some as old as two years ago, several sets are about six months old. Solution: Tape record meetings; complete minutes within thirty days as specified in By-Laws. Hard copies will be filed in business office.

#5) Collections Case: Names of delinquent homeowners cannot be publicly disclosed; A mortgage company will hold a foreclosure auction on one owner’s property on 01/19/10.

#6) Update on “Yeager” issue—We are waiting for arbitration proceedings, still. Legal fees total $20,000 so far. In six more weeks, arbitration with Yeager will take place. The longer this case goes on (over non-payment of dues and their unjust enrichment from having two rental properties consume our amenities such as garbage, water, landscaping, street lights, security, use of our gates, parking lots, etc.) the less compromise becomes desirable for the HOA, because many years of being taken advantage of has now accrued. We will also seek to recover legal fees, but legal fees may be limited by the courts. This case might go to trial in late-2010. Civil trials in California consistently face long delays and take years to reach conclusion. Yeager has created longer delays by firing or forcing out several of her own attorneys, not paying her own attorneys, and refusing to reasonably mediate. Her positions have been extreme, and not supportable. We have a very strong case for a court trial.

7) Update on Roof Issues. One homeowner reported that her ceiling is “sagging.” There was also a new roof leak in another unit and the developer dismissed it as a “vent” issue, which is not acceptable given the photos and inspection discoveries that were presented to us, in recent months. It is likely that every repair that was necessary was not done by the developer, and therefore may cost our Reserves more after future deterioration. Attorney Haydu has not yet scheduled the big inspection by the architectural consultant. Expert evidence will enable a successful resolution, and proper repairs.

#8) Board Member responsibilities—The Board president provided an overview: ALL Board members need to actively help on every level, and take responsibility for all parts of the community. Every Board member is responsible for the overall welfare of this

HOA. The president is not the only one who is supposed to help on all issues, the state requires participation and help from all. We cannot just “make up” what we think we want to do as we go along.

Currently we have chosen to have no property management company due to many serious past problems by inept managers — specific history was provided by Elia. Given that there is no property manager, it is more imperative that Board members not just pass the buck, or choose to not notice issues as they cross their path, or to ignore rule violations. We now need everyone’s eyes looking for areas to help. It will be overly difficult to maintain this community if only one person is managing most of the work, although, we are already doing a better job than any Property Management company of the past.

Currently, we have no maintenance person. Some Board members stated that one should be easy to find, locally. A retired person might be found, perhaps. If there are relatively few hours per week involved, they do not need to be bonded. If we had more income, we could hire someone on a set weekly schedule. The Board president has hired many dozens of individuals for this community for painting, plumbing, repairs, carpentry, asphalt, and every other detail, but dependability and supervision has always become an issue. Quality work really does matter especially in the “little details,” or complications and mistakes become more expensive in the long run. “Quality,” skilled, professional, and affordable part-time labor is very hard to find. Unreliable, substandard, risky work is very easy to find, locally, unfortunately. We are open to specific recommendations.

Garbage problems — Please help dispose Christmas trees properly. Prominent signs are already up, but are frequently ignored. Littering is commonplace and problematic on this property. Please don’t walk over bags, cups, etc., please pick them up and toss in a dumpster.

#9) Clubhouse—Abuse of privileges during rentals has happened a few times too often; recent history provided. Alcohol-impaired driving on our property has been observed after a large clubhouse party. Someone used the clubhouse one night as a possible motel lodging, also, based on the specific debris that was found in the living room area. Lights are often left on, and sauna is left on which are unnecessary electric expenses. There is excessive soiling and wear and tear on the clubhouse carpets, walls, furnishings, and our supplies are missing. Some behaviors are shortening the life, and accelerating the time for replacing big-ticket items such as the carpet and furniture, and causing the need for more frequent professional cleanings, etc. Our modest dues do not have “spare” funds to repair and replace items in an accelerated fashion. Do we need a clubhouse curfew?

One Proposal: No more private parties in Clubhouse.

Counter-proposal: Some events without alcohol like an alcohol-free baby shower created no problems in past, so clubhouse should remain available for more “low-key” events. Some homeowners had an expectation of reserving the Clubhouse as a Park River Oak selling point, although abuses of privileges are reasonable grounds for setting limits.

RESOLVED: 11:00 pm curfew for all clubhouse functions, including exercise room and sauna, and for clean-up after parties. Raise refundable rental deposit fee to $200.00. Enforce a strict, new No Alcohol policy (in any form) inside the clubhouse, for any reason. Unanimous approval vote by Board.

#10) Davis Stirling Act is the primary law that governs HOAs. Find link on Park River Oak Estates Website. Sign up for weekly e-mail newsletter for Davis Stirling updates, because there are changes in state law twice a year. We are obligated to make an effort to be informed of legal changes and the laws.

#11) Crime— Our gates are often jimmied so people can get in without a key. Our private security officers have started to regularly check and have found problems with homeowners rigging the gates, weekly. Board members: please help check gates as often as possible to ensure they are pulled shut and locked. Garage doors: Keep closed as recommended by the police. Sacramento PD reports a spike in crime locally. Beware of “solicitors” on premises. Our security guards seem to be working out as deterrent to crime.

#12) Approved HOA printer purchase for the HOA president to use, for HOA business.

#13) Regularly schedule Board meetings. Resolved to meet at more regular days/times: First Sunday of each month, if possible.

Next meeting: February 07, 2010, Adjourned 6:30 pm.

Submitted by, Darrell Hamamoto