2007 ANNUAL MEETING MINUTES

Lost River Valley Property Owners’ Association
Annual Meeting
June 2, 2007

The Annual Meeting the Lost River Valley Property Owners’ Association (the Association) took place on June 2, 2007 at the Lost River Retreat Center

Call to Order

The Association President, Bob Alcock, called the meeting to order at 1:10 pm, and noted that a quorum of the membership was present at the Annual Meeting.

Minutes of the 2006 Annual Meeting

The membership considered the minutes of the 2006 Annual Meeting. Barry Miners moved that the minutes be approved as written. The motion was seconded by Bill Loy. The motion was approved unanimously by voice vote.

Before proceeding to further Association business, Blair Mastal informed the membership that on May 31, 2007, approximately $4000 worth of tools was stolen from the construction site at his home on Settlers Valley Way.

Treasurer’s Report

Greg Thomas, Treasurer, provided a Treasurer’s Report. He began by reporting that the Association is currently in a positive financial status. There were no deviations from the 2007 Annual Budget. It was estimated the Association would not exceed the Annual Budget for the current fiscal year. The Association has paid for all roadwork projects to date.

The current balance of the Association savings account was $10,121.58; the balance of the Association checking account was $1603.10. Total assets in the checking and savings were $15,904.34.

Greg Thomas reported more than $12,500 has been contributed by property owners to the Road Maintenance Fund and the Reserve Fund. The contributions were invested in a Certificate of Deposit as that provided a greater return than retaining the balance in the Association savings account. On behalf of the Board of Directors, Greg expressed appreciation for those who had contributed to the funds, and he encouraged the membership to make contributions in the future.

Greg Thomas provided an overview of the audit of the Association finances by Rosalie Thomas, a certified accountant from Moorefield. The accountant has completed the audit of all financial transactions for fiscal years 2004-2006. The audit identified no irregularities to date. The accountant has also completed and filed the 2006 federal and state income tax returns.

Greg Thomas provided the membership with a status update on collection of delinquent Annual Assessments. The Association began fiscal year 2006 with approximately $4,000 in overdue assessments. The Board of Directors has contacted all property owners who have not paid their assessment. As a result, approximately 75% of the past due assessments have been collected. Greg Thomas reported that one owner of three properties was in major arrears and appeared to be unwilling to bring their balance to current paid status. Bob Alcock indicated that the Association has attempted on numerous occasions to have the property owner in question pay their outstanding balance. The owner has not responded to these requests. Therefore, the Association has begun the process of placing a lien on the subject properties.

Bob Alcock responded to a question from the 2006 Annual Meeting regarding the maximum amount that assessment may be increased in a given fiscal year. Bob indicated that Jack Walters, of the law firm Walters, Krauskopf and Baker, had reviewed the Covenants and Bylaws of the Association and determined that annual assessments may be increased at a maximum of 10 percent per fiscal year. Ed Pickens indicated the membership should consider whether amendments should be made to the Covenants and Bylaws to allow for greater than 10 percent annual increases in annual assessments. Bob Alcock said the Board of Directors would discuss the matter with the accountant and provide the Association with a recommendation on this question.

The floor was then opened for questions from the Membership regarding the Treasurer’s Report:

Ed Pickens asked about the increase in road maintenance expenditures. Association President Bob Alcock reminded the membership there were a total of five major snow removal projects last winter. Furthermore, the snow removal contractor was using a more sophisticated cinder spreader, which contributed to the increase in road maintenance expenditures.

Richard Lehman and Jim Burkholder both commented that snow removal service was the best it has been in many years. Others in the membership expressed agreement and thanked the Board of Directors for their work on this matter.

There being no further questions regarding the Treasurer’s Report, Tom Robertson moved that the Treasurer’s Report be approved as presented. The motion was seconded by Rich Lehman. The motion was approved unanimously by voice vote.

Road Maintenance

Joe Keyerleber provided an overview of road maintenance activities. He began by thanking property owners who had contributed to the Road Maintenance Fund. Joe indicated that rising fuel costs and additional tree trimming needs contributed to increased expenditures for road maintenance.

Joe Keyerleber acknowledged the continued contributions of Ed Pickens for his assistance in keeping the roads safe and in good operating condition. The membership responded with a hearty round of applause.

Joe indicated that several people have complemented the snow removal services during the past winter.

He thanked the volunteers who took time to help with spring tree trimming projects. Keith Dove, the road maintenance contractor for the Association, requested that owners pay particular attention to trees over ditches. Additional tree trimming will greatly assist the road grading projects.

The floor was opened for questions from the membership regarding road maintenance issues.

Rich Lehman indicated that the canopy at the bottom of Meadow Lane prevents sunlight from drying puddles following rainstorms and asked that attention be paid to that matter. He also indicated that roads have not been ditched in a very long time. He also indicated that an owner had used a backhoe on Meadow Lane and piled debris in the ditch. He also reminded the membership to observe speed limits for both road maintenance and safety reasons.

Diane Thornton inquired about the contracts with Mr. Dove and how specific they were with regard to snow removal, removal of debris and other road maintenance work to be performed. Other members of the Association asked if Association contracts were competitively bid.

Association President Bob Alcock responded that Association contracts are specific in nature. He said he welcomed volunteers to assist with the writing and review of any contract into which the Association enters. He also reminded the membership that there is not a large supply of potential vendors due to the rural area of Lost River.

Ed Pickens agreed that supervision of all contractors is needed. He complemented the Board of Directors for entering into written agreements with vendors and reminded the membership that such agreements used to be oral in nature. Ed Pickens also reminded the membership of the importance of maintaining driveway culverts.

Bob Alcock thanked Joe Keyerleber for his dedication and assistance to the Association in its road safety and maintenance activities.

Good Neighbor Policies

Bob Alcock asked the membership to review and adhere to the good neighbor policies distributed at the Annual Meeting. He noted that some contractors have been in violation of the 15 mile per hour speed limit within Association boundaries, and asked the membership to remind contractors doing work on their properties to adhere to the posted speed limits. He also reminded the membership to be aware of bears that have been seen in the area. He noted that a bear was seen recently on Whispering Pines Drive. He asked the membership to not leave bird feeders unattended, to burn off grill residue after use and to carefully dispose of garbage.

Voluntary Construction Fee Schedule

Bob Alcock reminded the membership that voluntary contributions to the Road Maintenance Fund are requested when property owners engage in significant construction projects. Some property owners who wished to contribute asked the proper amount of such contributions. The Board of Directors presented the following schedule of contributions for consideration by the membership:

1. New Home $300

2. Major Renovation/Major Landscaping

Adds 50% or more square footage to current structure, and/or 15 or more truck loads of fill material. $250

3. Minor Renovation/Minor Landscaping

Adds less than 50% square footage to current structure, and/or 14 or less truck loads of fill material. $200

4. Other Improvement

Job takes more than 5 working days. $100

5. Small Jobs

Job takes 5 or less work days, e.g. storage shed or decking. No Fee

Ed Pickens moved that the Association approve the recommendation of the Board of Directors regarding the voluntary schedule of contributions for construction projects. The motion was seconded by Bob Dillard. The motion was approved unanimously by voice vote.

Ed Pickens reminded the membership that construction of new driveways presented a particular problem with clogged culverts, sheeting and mud clogging. He asked that owners pay attention to these matters when having new driveways constructed.

Safety Committee

Bob Alcock informed the membership that legislation recently enacted by the West Virginia legislature provided for decreases in insurance premiums for associations that had active Safety Committees. He announced that a Safety Committee for the Lost River Valley Property Owners Association has been established. The Safety Committee, comprised of the Association Board of Directors, meets quarterly to review and revise the Association Safety Plan of Risk Management. Finally, he informed the membership this action has resulted in a reduction in the liability insurance premium for the Association.

Settlers Valley Way – Right-of-Way

Bob Alcock informed the membership that owners of property on Settlers Valley Way between Mill Gap Road and Whispering Pines Way have conveyed that portion of their property that comprises the road to the State of West Virginia. The State has now designated that 0.4 miles of Settlers Valley Way as a state road. Therefore, the State may pave that section of Settlers should funds become available. This conveyance does not change the boundaries of the Association.

Guest Houses

At the request of the membership during the 2006 Annual meeting, the Board looked into the question of whether restrictions on the establishment and operations of guesthouses could be placed in the Association’s by-laws. The Association’s attorney, when consulted by the Board, advised that such language would be considered a use restriction and could be imposed only through an amendment to the Covenants. George Simpson moved that the Board study the issue more and report its findings to the membership. The motion died for lack of a second.

Covenant Amendment

Bob Alcock provided an overview of the proposed amendment to the Declaration and Covenants, Conditions and Restrictions of the Lost River Valley Property Owners Association regarding commercial logging. Ballots were sent to the membership in January 2007 along with the member newsletter and Annual Assessment invoices.

Association Secretary Mark Smith announced the results of the vote:

Total Properties in Association – 272
Votes Necessary to Amend the Covenants – 204 (75% of properties)

Ballots Received: 187
Voting to Approve the Amendment: 132
Voting to Disapprove the Amendment: 55

The proposed amendment to the Covenants of the Lost River Valley Property Owners Association was defeated.

Garbage Collection

Bob Alcock updated the membership on an investigation by the State of West Virginia Public Service Commission following a complaint filed against Envirco, Inc. for improper garbage pick-up services.

Bob Alcock reminded the membership that only subscribers of Envirco, Inc. could leave garbage in pick-up areas. He also reminded the membership that Envirco does pick up on schedule on Mondays that are federal holidays.

Bob Alcock announced that a property owner on Meadow Lane was willing to donate property for the purposes of constructing a similar garbage enclosure at no cost to the Association.

Election of Officers

The Association then conducted the election of officers for term of office from July 1, 2007 until June 20, 2008. The following Association members sought re-election to the Board of Directors:

President – Bob Alcock
Vice President – Glenn Thornton
Treasurer – Greg Thomas
Secretary – Mark Smith
Member at Large – Joe Keyerleber

The floor was opened for additional nominations. No additional nominations were made. Rich Lehman moved that the slate of officers be elected. The motion was seconded by Blair Mastal. The motion was approved unanimously by voice vote.

The membership thanked the Board of Directors for their service to the Association.

New Business

Bob Alcock indicated that updating of the Association website would begin shortly. He indicated that the Association welcomes suggestions from the membership on website content.

Bob Dillard provided an update with the removal of the barn on Settlers Valley Way. He indicated that the insurance company would not allow for underwriting of a liability insurance policy for the barn. Therefore, he had no choice but to remove the barn.

Bob Dillard asked for permission to work with the Board of Directors on the design and installation of a new mailbox facility on Settlers Valley Way. He indicated that he would not seek any funding from the Association. There was no objection from the membership.

Rich Lehman suggested that contractors or owners should provide Impact Statements to the Board of Directors for new construction projects.

Adjournment

Bill Loy moved that the meeting of the 2007 Annual Meeting of the Lost River Valley Property Owners’ Association be adjourned. The motion was seconded by Jim Klumpp. The motion was approved unanimously by voice vote. The meeting was adjourned at 3:15 pm.