2009/2010 SPECIAL MEETING OF THE

EXECUTIVE BUSINESS TO BE CONDUCTED

3. Property Owner Appeal – Norris, Citation #9403, $100.00, Parking on Launch Ramp (4:30 p.m.)

Upheld

4. Property Owner Appeal – Hajduk, Citation #9482, $50.00, Dog Impound (4:45 p.m.)

Reduced to a Warning

5. Property Owner Appeal – Allen, Citation #9343, $325.00, Failure to Stop & Foul Language (5:00 p.m.)

Waived the $50.00 Failure to Stop and Upheld the $25.00 Failure to Stop for Security Office, and $250.00 for abuse of employee

6. Property Owner Appeal – Mitchell, Citation #9296, $500.00, Illegal Dumping (5:15 p.m.)

Reduced to a Warning

7. Property Owner Appeal – Perez (resident of tenant Lauer), Citation #9322, $300.00, Public Indecent Exposure (5:30 p.m.)

Upheld

8. Property Owner – Lee, Citations (various), $750.00. Requesting leniency for Tenants citations (5:45 p.m.)

Upheld

9. Personnel Issue

No discussion

10. Update on Litigation

Scott Baker to appear by phone at 4:00 p.m.

Indemnify all Employees, Officers and the Board of Directors to the fullest extent of the law including punitive damages arising out of both the Brock and Mary Gonzales Smith cases

ADJOURN TO CLOSED SESSION

RECONVENE IN OPEN SESSION AND ANNOUNCE ANY CLOSED SESSION ACTION

(Estimated time to be 6:00 p.m.)

PLEDGE OF ALLEGIANCE

MEMBER COMMENTS: All members are invited to speak on non agenda items at this time. Each speaker will be limited to three (3) minutes with a maximum speaking period of thirty (30) minutes. Please raise your hand to be recognized by the Chairperson, at which time you should step forward and state your name, lot and tract #.

COMMUNITY / COMMITTEE REPORTS

Activities

D.O.G.

Election

Equestrian

4-H

Fire Department

Seniors

OFFICERS’ REPORTS

President, Dan Prunk

Vice President, Denise Roach

Secretary, Jeff Smith

Treasurer, Denise Roach

EXECUTIVE / BOARD COMMITTEE REPORTS

Advisory Committee, Chairperson John Martin

AEC Committee, Chairperson John Martin

Finance Committee, Chairperson Denise Roach

Planning Committee, Chairperson Dan Prunk

GENERAL MANAGER REPORT

OPEN MEETING CONSENT AGENDA ITEMS

11. Approve/Disapprove minutes of the Organizational Meeting of the HROA Board of Directors held on August 15, 2009

Motion by Martin, second by Roach to approve, 3/0 with Smith and Negro abstaining

12. Approve/Disapprove minutes of the Re-convened Organizational Meeting of the HROA Board of Directors held on September 11, 2009

The meeting was opened on August 15, 2009 and then all action was tabled to be re-convened to a later date

Motion by Martin, second by Smith to approve, unanimous approval

13. Approve/Disapprove minutes of the Special Meeting of the HROA Board of Directors held on September 11, 2009

Motion by Smith, second by Roach to approve, unanimous approval

14. Approve/Disapprove to add Bill Barker, Roy Myers and Dave Rymal to the Advisory Committee

Motion by Martin, second by Smith to approve, unanimous approval

BUSINESS TO BE CONDUCTED

MEMBER COMMENTS: Time will be allotted during the business portion of the meeting for member comments on agenda items. Each speaker will be limited to three (3) minutes with the Chairperson determining the duration of member comments on each agenda item. When the Chairperson calls for discussion from the floor, please raise your hand to be recognized by the Chairperson, at which time you should step forward and state your name, lot and tract #.

ANNOUNCEMENT ITEMS:

Nil

UNFINISHED BUSINESS:

15. Boat Slips

a) Approve/Disapprove new 5-Year Boat Slip Lease to begin January 1, 2010 through December 31, 2014

b) Approve/Disapprove Boat Slip Management Policy

c) Approve/Disapprove revised Boat Slip Response Policy

d) Approve/Disapprove “Guest” fee(s)

The Advisory Committee recommended that $10.00 / day be charged for “guests”, and $10.00 / day be charged for use by other “members” acting as the LESSEE’s “guests”.

On June 12, 2009 the Board discussed several possible changes to the terms and conditions of the new Boat Slip Lease agreements, which will begin on January 1, 2010.

The Board then sent this item to the Advisory Committee to create a list of all the possible items to be discussed in the current lease agreement, and to mail a copy of the same to all existing lessees, and all persons on the waiting list to advise them of the same.

On July 6, 2009 the Advisory Committee completed this task with letters mailed out that same day.

On July 17, 2009 the Board discussed a list of possible items to be discussed including

1 - Requirements for maintaining “good standing” with the Association

Possible cancellation of lease for those who fail to maintain their good standing, and/or removal from the waiting list.

Also, related to monies owed at time lease agreement is signed.

2 - Requirements for making timely payments under the terms of the lease agreement

Possible cancellation of lease for those who fail to make timely payments

3 - Requirements for maintaining insurance as specified in the lease agreement

Possible cancellation of lease for those who fail to maintain their insurance (such as a lapse of policy)

4 - Establish time limits for all procedures related to managing the lease agreement, including but not limited to: signing of lease, processing the waiting list, payment schedules and notices, etc.

5 - Remove or modify language related to “Water Level Fluctuation”

6 - Establish criteria for number of slips allowed per household or lot; and/or any limitation related to private docks (such as can only have one or the other, but not both)

7 - Modify language related to “Indemnification of HROA” to include a provision if HROA is required to move watercraft in a slip

8 - Modify language related to “Individuals Authorized to Use Watercraft Slip”

9 - Establish a policy or add language related to individuals who wish to switch their slip number after signing the lease agreement

The Board also discussed all of the following to be potentially added to the New Slip Lease: possible sharing of slips, guest indemnification, requirement to have a vessel at time slip renewal signed, stay in good standing while on the waiting list, possibly use some slips at daily-weekly-monthly rental, building more slips. The Board then voted that anyone placed on the waiting list from this point forward acknowledge that there will be new lease drafted with changes to existing rules / procedures, and that no additional persons can be added to the current waiting list who have a private dock or a slip. This item was sent back to the Advisory Committee for review.

The Advisory Committee, over the course of two meetings developed the following specific list of proposed changes:

1 - Requirement for maintaining “good standing” with the Association – Slip owners to be given a 30 day warning to re-establish their good standing. It they don’t they lose their lease and deposit.

2 - Requirement for making timely payments under the terms of the lease agreement – After notification of non-payment the lessee has 30 days to pay. If payment is not received, at that time the lease will be cancelled.

3 - Requirements for maintaining insurance as specified in the lease agreement – a) if a slip owner cancels their insurance policy, they lose their slip immediately; b) if the insurance company cancels the lessee’s policy for reason other than non-payment, the lessee has 30 days after notification to get a new policy. If the lessee fails to do so they lose their slip immediately.

4 - Remove or modify language related to water level fluctuation – Remove all language related to water level fluctuation.

5 - Modify language related to indemnification of HROA to include provision if HROA is required to move a watercraft – HROA must be held harmless. Enhance the indemnification clause of the lease to cover access or use of slips

6 - Mofidy language related to individuals authorized to use watercraft slips – Authorized guest or other owner must register at the office and show proof of insurance, pay of fee of $10.00 per day for a guest. A member will pay a weekly fee of $10.00.

The following additional procedural issues were also recommended, which has been put in form of a Boat Slip Management Policy –

6 - Establish criteria for number of slips per household or lot, and/or any limitation related to provide docks – As of date of new lease agreement there will be one slip or one private dock per member.

7 - Establish time limits for all procedures related to managing the lease agreement, including but not limited to: signing the lease, processing the waiting list, payment schedules and notices

Motion by Martin, second by Smith to approve a) amending #4 to have the last paragraph stricken, 4/0 with Martin abstaining

Motion by Roach, second by Smith to approve b) amending #1 to include a member who is on the waiting list who fails to maintain their “good standing” having 30 days to cure, or they will be removed, and that having a second slip or private dock related to the waiting list is effective as of July 16, 2009, 4/0 with Martin abstaining

Motion by Smith, second by Negro to approve c) as presented, 4/0 with Martin abstaining

Motion by Smith, second by Prunk to approve d) as presented, 4/0 with Martin abstaining

NEW BUSINESS:

16. Approve/Disapprove, a proposed sloping lot line adjustment (variance) for Lot 11 of Tract 424, owned by Jezek

On June 25, 2009 Shari Doss appeared at the AEC Committee for property owner Jezek to discuss the possibility of obtaining a sloping lot line adjustment. Doss stated that SLO County would not be opposed to such a request. The AEC Committee advised Doss that there were steps required for submission of plans to the AEC Committee.

On August 14, 2009 Doss submitted plans to the AEC Committee along with a letter from SLO County confirming they would not be opposed to considering a sloping lot line adjustment on the stated property. The AEC Committee reviewed the plans and requested the Board determine if a variance would be allowed. The plans were acceptable as to all other general issues.

On September 11, 2009 the Board authorized a postcard to be mailed to all Tract 424 members to be notified that this item would be discussed at the October 16, 2009 Board Meeting.

Motion by Martin, second by Negro to approve as long as the conditions meet SLO County 22.10.140D (2)(b), with the AEC Committee verifying the conditions are met, 4/0 with Prunk abstaining

Note: Jezek to submit plans to the AEC Committee including elevation drawings to verify the conditions related to the SLO County ordinance stated. All plans must be approved through the AEC Comitteee

17. Approve/Disapprove, to issue a postcard to Tract 424 regarding a proposed encroachment in the side setback for an awning/carport for Lot 29 of Tract 424, owned by Wilde, to be heard on November 20, 2009

On September 24, 2009 Mark and Jim Wilde appeared at the AEC Committee to discuss the possibility of obtaining an encroachment in the side setback for an existing awning/carport which had been installed without receiving approval from the AEC Committee.

The AEC Committee directed them to the HROA Board of Directors.

Motion by Martin, second by Negro to direct Wilde to draw up and submit plans to the AEC Committee to represent all elements of the project not approved by the AEC Committee, for the AEC Committee to either approve or disapprove said plans, and that any disapproval by the AEC Committee may then be appealed to the HROA Board, unanimous approval

Note: That a variance will not be considered until these steps are complete, and that if the plans are not submitted in a timely manner, that a citation(s) may be issued

18. Approve/Disapprove, by resolution, a Board of Directors Code of Conduct

This item was requested to be added by Director Negro

Attorney Scott Baker was given the task to develop a Board of Directors handbook, which is a work in process. To date a complaint procedure has been developed along with handouts as to Fiduciary Duties. The proposed Code of Conduct resolution, if adopted, can be utilized immediately and eventually incorporated into the overall Board of Directors handbook.

20. Acknowledge and Accept receipt of First-Quarter Treasurer’s Report for Fiscal Year 2009/2010 along with Revenue and Expense statement year-to-date

21. Approve/Disapprove to Acknowledge receipt of the 2008/2009 Audit as prepared by Porter and Company

22. Approve/Disapprove, by resolution, the deficit revenue of <$45,763.00> for 2008/2009 for Operations

Note: Excess Revenue for Fiscal Year 2008/2009 was a positive $14,917.00 prior to the writing off of $19,380.00 in Bad Debt and prior to the Auditor transferring an additional $41,300.00 to Bad Debt to offset potential uncollectibles due to the high accounts receivable balance. ($14,917.00 - ($19,380.00 + $41,300.00) = <$45,763.00>)

Motion by Prunk, second by Roach to table #20, 21 and 22 until Thursday, October 22,2009 for a Special Meeting to be held at 9:00 a.m. at the Association Office

23. Approve/Disapprove, by resolution, the deficit revenue of <$234.00> for 2008/2009 for the Equestrian Center

Note: This will decrease the balance on account (Equestrian Center Equity) to $2,719.56. These funds are dedicated for improvements to the Equestrian Center as requested by the Equestrian Committee.

24. Approve/Disapprove to purchase 60 feet of storm drain pipe for Comanche Way from Reserves for a cost of $1,386.48 + tax and delivery

The Maintenance Manager discovered that an existing pipe had been crushed and buried and needs replacement. Unknown when this occurred.

25. Approve/Disapprove to contract out to pave Blackhorse Lane for a budget not to exceed $37,000.00

This road needs resurfacing as soon as practical. It is recommended the work be done prior to winter.

26. Discussion of Jason Cardena’s complaint, Lot 60 of Tract 1094/3 related to handling of pool overcrowding – potentially providing an allotted time period, instead of a first come first serve procedure

It is the Board’s perogative to discuss the item, table it indefinitely, or approve it as a later agenda item, setting a date and time at which the agenda item will then be heard (and in what format).

This item was requested to be added by tenant Greg Howard who has requested to sponsor a Halloween Party at the Rec Barn this year

Motion by Roach, second by Negro to approve allowing Greg Howard and Carol Watson to sponsor a “for profit” Halloween party for adults only (21 and older), and under the following conditions which must be agreed to in writing by both parties: 1) the party is shut down at midnight; 2) Greg and Carol hire at least one security person from a licensed security firm to attend the entire event; 3) Greg and Carol provide a certificate of insurance named HROA as an additional insured; 4) HROA provide free use of the Rec Barn; 5) that the party be available to all members, residents and tenants and their guests, only; 6) HROA to provide free use of website and print flyers as requested for free advertising the event, and 7) Greg and Carol obtain a liquor license in their name, allowing them to sell liquor at the event, unanimous approval

Without objection, this was left to the General Manager’s discretion to determine