Kachess Ridge Maintenance Association

Board Meeting

Jerry Gamin's Cabin

February 2nd, 2002

The meeting was called to order by Janet Nelson, President at 9:42 a.m. The following board members also attended the meeting: John Parisi, Jerry Gamin, Keith Baldwin, and Ann Lewis. The minutes of the August 19th, 2001 Board Meeting were read and approved. However, it was noted that the second page of the minutes had not been sent out to the Association and the whole should be resent with the next mailing.

TREASURER'S REPORT

John Parisi passed out a corrected Annual Treasurer's Report dated September 15th, 2001. The next mailing to Association members is to include the corrected report. A motion was made and seconded that the board ratify the $500 cost overrun for the driveway improvements of Fire Station #2. The motion passed. John noted that the assets shown in the treasurer's report do not reflect the value of the Association's 223 acres held in common. According to the By-laws, these acres are owned by the corporation which is made up of the owner(s) of record of each lot in the Association. The Association pays the taxes on the common property. Discussion ensued. No action was taken. In the Income and Expense Report, under Expenses, the Fire Garage Loan Interest and Principal payments to the Thomases will be so designated in the future to avoid confusion.

John presented a current Treasurer's Report dated January 31st, 2002. He noted that the Fire Garage asset value has increased because of the driveway improvements done in 2001. The Fire District is current in its loan payment to us and we are current with the Thomases. John changed the checking account we have with Bank of America and added a savings account. Together the new accounts allow unlimited check writing. (Previously the treasurer was limited to only 3 checks/month which delayed bill payments.) No additional fees for the new accounts will occur as long as the balance is above $1,500. Janet as President and John as Treasurer sign checks.

A motion was made and seconded to approve the payment of legal fees to Montgomery Purdue et al for Lynn Hurst's legal review of the amended covenants draft. The motion passed. Janet gave Ann correspondence from Mr. Hurst which will be put in the Kachess Notebook.

As per the discussion at the Annual Meeting, the 2002 dues of $150/lot are to be allocated, $75/lot for general operations and $75/lot for the Legal Fund.

OLD BUSINESS

Director and Officer Liability Coverage. Keith will continue to research Director and Officer Liability Coverage, both with our agent Brian Berend and other insurers. Currently the Association has Casualty Insurance of $1 Million with Griffin Underwriting Insurance.

Covenants. Keith discussed two further changes to resolve issues brought up at the Annual Meeting. Under Section 3, in response to member suggestions, he proposed that we add a clause indicating that reasonable accommodation may be made for an apron at the point where a driveway connects to an existing county road. Under Section 11, in response to a suggestion by attorney Lynn Hurst, he proposed language providing that "Any of these covenants may be amended at any time by an instrument signed by all the owners of record of the lots and recorded with the Kittitas County Recorder."

The Board moved to ask the Covenant Review Committee to review the changes recommended by legal counsel and Association members and to provide the Board with final recommendations by the end of February. Motion passed. Keith will contact Bob Kitchell, chair of the committee.

To insure the acceptance of the amended covenants, the Board agreed that it is important to obtain as many signatures as possible. According to the original covenants, the amended covenants must be approved by the notarized signature of all the owners of record of a majority of the lots. Keith will also ask Bob to relay the Board's request for committee help in obtaining the necessary signatures. The Board thought that having a notary come to a group gathering on June 8th for the required signatures would speed up the process. Including a property/cabin tour as part of the June 8th gathering was suggested but deferred to the Covenant Review Committee.

Keith volunteered to be in charge of the signature gathering process and to write the cover letter to the members. Suggestions to aid in getting signatures included Keith's offer to have his legal secretary attend the June 8th meeting, or contacting our bank (Bank of America) to see if they could provide a central location nearer Seattle and notary for Association lot owners. Janet will ask Lynn Thomas to obtain a current list of the owners of record for Kachess Ridge from the County.

Timeline:

The Covenant Review Committee recommends a final draft of the amended Covenants by the end of February.

The Board finalizes the Amended Covenants.

The Amended Covenants with instructions and a self-addressed, stamped envelope are sent to the members for approval and notarized signature in early spring.

Additional signatures are gathered and notarized on June 8th.

If needed, more signatures are gathered at the work party, and picnic.

If enough signatures are obtained then the Amended Covenants would be recorded with the proper agency by late July and go into effect in early August.

Fire Station Settling Problem. Janet reported that the committee, set up to explore alternatives with the contractor of the Fire Station, didn't get any positive feedback from the contractor. Jerry had an idea for a possible repair that he agreed to discuss with Joel Thomas, who is part of the settling problem committee.

Board Minutes Review. Janet will contact Mary O'Haver to see if her offer still stands to review past Board Minutes and summarize Board Motions and other important items.

Lot 45 Easement. Lot 45 is just west of Tract A and actually includes the gated road beside Track A to about halfway up to the Association picnic area. The owners have been approached by previous Association Boards about a possible easement for member usage and the owners have seemed amenable but no Board action has taken place to date. Janet will pursue the issue.

Forest Plan. The Board deferred any action on setting up a committee to develop a Forest Plan until the covenant work is complete.

NEW BUSINESS

Snowmobile Conditional Use Permit. The Board sent a letter protesting the Butler Conditional Use Permit for setting up a snowmobile rental on Kachess County Road near Association properties. With much public input including some from Association members, the permit was denied. Janet does not expect an appeal from Mr. Butler as he now has the concession on the other side of I-90. In discussing the permit issue, it was determined that the Board was not unanimous in its disapproval and that on similar controversial issues in the future, the Board will need better communication, preferably meeting face-to-face or by teleconference so that a full discussion could ensue.

Planning. Association members need to be informed about the following dates and activities set by the Board:

1.The next work party is scheduled for June 22.

2.The Association picnic is set for July 20th, from noon to 4 pm

3.The Annual Meeting is set for September 14th, starting at 1pm, at Fire Station #2 on Tract A. Several Board positions will be open in the fall. Members are encouraged to join the Board.

Projects. Janet listed the projects proposed by members in the survey mailed out to all members in January of 2001. The projects included trail clearing and building, land maintenance of areas held in common, benches/picnic tables at the wetlands and on the ridge, a foot/bike path paralleling the county road, some tree removal near the community boating area, a boat ramp, a dock, a canoe/kayak rack, and a meeting place for the community. Much discussion followed. It was noted that the projects fell broadly into three areas; trails and trail maintenance, waterfront access and issues, and a meeting place. A board member suggested that the Board delegate more to committees. Another member recalled the great work of the Covenant Review Committee. Many people were involved and the work progressed well. A motion was made and seconded to form volunteer Enhancement Committees in the following three areas: Trails, Meeting Place(s), and Waterfront. The motion passed. Current issues (such as work on existing trails, and usable lake access) would then be referred to the appropriate committee.

Another motion was made to set up an annual work party date to be a Saturday in the second half of June and that ongoing maintenance projects be posted on the Kachess Ridge Website. The motion was seconded and passed. The ongoing maintenance projects would need to be carefully defined so that any Association member would feel free to do one as his or her time allowed, i.e. without a formal work party. As an alternative, for those members who would like to contribute funds rather than labor, it was also agreed to post on the website, information necessary for such a donation, which would be used for trail maintenance.

Communication. The following items need to be communicated to the Association members:

1.August 19, 2001 Minutes.

2.These February 2nd Minutes.

3.Corrected Annual Treasurer's Report, dated September 15th, 2001.

4.Notices of Annual Work Party and Picnic.

5.Request for member's e-mail address and the member's approval to post on Association web site and/or roster.

6.A call for volunteers to sign up for Enhancement Committees (Trails, Meeting Place(s), and Waterfront).

7.Volunteers to organize the Picnic and other existing projects.

8.A call for volunteers for Board positions open at the Annual Meeting.

9.The Amended Covenants with instructions on acceptance process.

Snow plow Request. Pat Dwyer requested permission to plow Tract B access for his use. A motion was made and seconded to allow Pat Dwyer to plow the access for this winter only, subject to the following conditions: that the gate is left open and that the area remain available for Association member use on a nonexclusive first come--first serve basis. The motion passed.

Parking problems. Board members discussed the parking problems along the county roads in our area. Some of the public are parking in No Parking areas, including directly across from the Fire Station and near the Lake Kachess/Via Kachess intersection. Fire Chief Mony Moore wrote a letter to the Kittitas County Sheriff's Office concerning illegal parking along Kachess Lake Road, Via Kachess, and Winter Park Lane. A suggestion was made at the Board Meeting that the county prohibit overnight camping at the snow permit areas to prevent mobile homes with snowmobile trailers taking up all the available parking space. Other than agreeing to monitor the situation and to post Fire Chief Moore's letter on our website, the Board took no action.

ADJOURMENT

The meeting was adjourned at 1 p.m.

Respectfully submitted by Ann Lewis

Secretary

Minutes of the Annual Meeting of the Members of the

Kachess Ridge Maintenance Association

September 15, 2001

Kachess Ridge Fire Garage

The members of the Kachess Ridge Maintenance Association held their Annual Meeting on September 15th, 2001 at 1 p.m. at the Kachess Ridge Fire Garage. Written notice of the meeting was mailed to all members as provided in the Association by-laws.

Call to Order. President Janet Nelson called the meeting to order at 1:17 p.m. Janet introduced the members of the Association Board who were present at the meeting including herself, Keith Baldwin, Jerry Gamin and Ann Lewis. John Parisi, treasurer, was not present. Ann Lewis as secretary recorded the minutes of the meeting.

Roll Call and Quorum. Roll call of members in person or by proxy was taken. Lots 2, 6, 9, 10-1/2, 11, 18, 22-S, 23, 26-1 & 26-2, 27, 28, 32-A & B, 34, 37-B, 38, 39, 49, 51, 52, 53, 55-1, and 55-2, 3 & 4 were represented by owners present. Lots 4-1, 30, 47, and 54 were represented by proxy granted to John Daugherty, President. Lot 12 was represented by proxy granted to Janet Nelson, President and Lot 54 was represented by proxy granted to Mike Edde. There being 32 lots represented at the meeting out of a total of 75 lots, a quorum was declared. According to the by-laws, a quorum is 10% of all lots in the Association.

Minutes of the Previous Meeting. The minutes of the previous annual meeting of the members of the Association, dated September 30, 2000 were read by Ann Lewis. Upon motion duly made and seconded, the minutes of the previous meeting were approved as read.

Treasurer's Report. Keith Baldwin presented the Treasurer's Report for John Parisi, the treasurer. A copy of the Report is attached to these minutes. The report does not yet reflect the annual Fire District rental payment due for the fire garage, so the income shown is less than actual. The legal fund established last year has $7,569.18. No funds were used from this account. Since John was not present to answer questions, the report was not approved.

Covenant Modification.

History and ProcessKeith explained the history of the covenants and named the members of the covenant review committee, namely: Rosemarie Gamin, Lonnie Gienger, Jack Hayes, Charlie Jung, Alex Kor, Larry McCoy, Janet Nelson, Tom and Mary O'Haver, Lois Smith, Gayle Watts, Keith Baldwin, Ann Lewis, Janet Nelson, John Parisi and chaired by Bob Kitchell. Frank and earnest discussion ensued on the committee, with a wide range of views expressed, yet consensus was reached in all areas. The Covenant Review Committee recommended to the Board to modify the Association covenants as stated in their report. The Board in turn accepted the Committee's recommendations and mailed copies of the Committee report and proposed revised covenants to the members of the Association as a part of the announcement for the Annual meeting. In addition, the Board submitted the recommended modifications for legal review to Lynn Hurst, an attorney. Two weeks ago, Mr. Hurst suggested some changes with respect to legal terminology and substance.

To adopt, a majority of the owners of the Kachess Ridge lots must sign with notary the modified covenants. The modified covenants would go into effect in August 2002. Most of Mr. Hurst's suggested changes were not discussed at the annual meeting, but would be looked at by the Board and the Covenant Review Committee to consider. These two groups with Mr. Hurst's help would finalize the modified covenants and set up a means to get the necessary notarized signatures.

John Daugherty asked about current violations-which were out of compliance of either the proposed modified or the original covenants. He asked what would be done by the Board. It was suggested later in the meeting that everyone try to bring their lot(s) into compliance before the modified covenants go into affect in August of 2002 (or the old ones remain in effect.) Some members at the meeting suggested that it would be better to be proactive rather than be reactive and have a covenant compliance committee to review any plans before building to prevent covenant violations. The Covenant Review Committee after much discussion, had decided not to set one up.

Modified Covenants. The recommended modified covenants were then discussed section by section at the Annual Meeting. Straw votes, taken after most of the covenants were discussed, indicated that the majority of the members present --on the whole--approved the modified covenants.

The first paragraph was mainly house-keeping indicating that the covenants were modified and defining the Association and Membership. A preamble, which is new to the covenants, states the goals/shared values of the membership. The members present had not objection to the preamble.

Covenant 1. The Property This modified covenant had two changes: 1) the legal inclusion of several owners who thought they were already a part of Kachess Ridge and had paid dues for years, and 2) provision of a process to annex other properties into the Association.

Covenant 2. Restrictions against Business Use. The modified version expands to allow some businesses that did not impinge on the Kachess Ridge community. The majority present accepted the changes but wants to prohibit multi-family housing or group homes in the community. Renting out a member's cabin on occasion or possibly a B&B seemed acceptable to the group.

Covenant 3. Lot Areas, Width, Set Back Lines. The new covenant allows gates, specifies that the buffer be improved only with native vegetation, that the allowable width of any driveways be increased to 16 ft and that two driveways on one lot be separated by at least 150 ft. Concern by members was expressed about county requirements for the fan access to the driveway. Most of the members present said that the road surface width itself be limited to 16 ft. It was suggested to specify where the driveway "road" starts. The waiver process should cover any need to revegitate any side slopes of constructed driveways.

Sharon Carlson, volunteer and Fire District Commissioner, says fire safety may require some changes in the 50 ft. buffer zone. Our area is considered an urban interface with different criteria than a forest. Keeping 6 ft between trees, and thinning not to exceed 30 ft up from the ground or 1/3 of the tree would help prevent forest fires spreading. Members suggested that fire-related thinning in the

50 ft. buffer zone may be okay. One member suggested that any thinning in the buffer zones be subject to a waiver and according to a forest plan. (See Covenant 9.)

Covenant 4-8. 4. Signs The members accepted this modified covenant. Covenant 5. Nuisances The language is very generic. No one made any comments. Covenants 6, 7, & 8 The modified covenants have no changes from the original. Mr. Hurst suggests only a few minor changes.

Covenant 9 Timber Cutting This covenant is totally changed. The modified covenant separates timber cutting on individual properties from timber cutting on community property. Selective cutting on individual properties for specific reasons such as hazards, forest health, and fire safety would be allowed. No commercial clear cutting on common property would be allowed and any cutting done only according to a forestry plan developed and approved by the Board and 2/3 of the members at a meeting called for that purpose. Approval of the specifics of any timber cutting would also require approval. At the Annual Meeting, members talked about encouraging individual lot owners to develop a forest plan to enhance their property. Jack Hayes has provided the membership information about a government group that would help develop a plan and possibly help pay for it. The consensus of group at the meeting was that the modified covenant is acceptable and better than the original.

Covenant 10. Liens and Collections of Assessment The group is satisfied with modified

Covenant 10 as drafted, including the up to $100/day fine for covenant violation. When questioned about covenant enforcement in this intervening time between now and August 2002, when any accepted modified covenants go into effect, the Board could choose to waive old covenant violations if the change is within the new modified covenants (for example 12 vs. 16 ft. wide driveways).

Covenant 11. Terms of Restrictions The members liked this modified covenant with Mr. Hurst's addition that allows change of covenants only by a positive vote of every owner.

Covenant 12. Enforceability No one at the meeting was unsatisfied by the modified covenant.

Covenant 13. Severability Unchanged

Covenant 14 Waivers. This covenant is new and provides a process to accept waivers to the covenants. No one at the meeting was unsatisfied with this covenant.

One member had a suggestion of including rules about burning etc. in the covenants, like the Village does. Keith's reply was two fold: 1) that burning rules are done and enforced by others. (The Fire district has rules about burning, which had been sent to all owners prior to the Annual Meeting.) and 2) the feeling of the committee and Board was to keep the covenants minimal as they are at present. A round of applause was given to the Covenant Review Committee for all their hard work.

Fire District Report. Bob Angrisano, Chairman of Fire District #8, reported that voters passed a bond levy April 24th, which garnered $140,000 and paid for a medical ambulance and a new fire truck. They also upgraded the brush truck. The District is an all-volunteer district so any money raised is spent on equipment. Another public vote brought the Kachess Village property assessments for fire protection to the same level as Kachess Ridge property assessments ($1/$1,000).

Work will commence soon to expand the driveway to this Fire Garage and allow for some parking. The cost of this work will come out of last year's Kachess Ridge donation to the Fire District.

A tender and truck are stored in this garage. Kachess Ridge fire protection has 2 problems: a source of water and access. In the winter, the garage is not heated and the tender and truck are unusable. If they can't put out a fire with 1,000 gallons, there is no other water available locally in winter. It takes 15 to 20 minutes for Easton to respond up here. The FD does not have the funds to pay to winterize the garage. Members at the meeting agreed that it would be a good use of Association funds to pay for the cost of winterize the Garage. The Fire District could reimburse the Association over time through an increase in the building rental. (Once winterized, arrangements would have to be made to keep the garage driveway plowed.) Another possible source of funds would be if the FD plans succeed in selling their old fire truck for $10,000. Sharon Carlson said later that the Fire District figured it could spend up to $2,000/yr increase in building rental to pay for the cost of winterizing the building.

No work to winterize the garage can be done, however, until the garage settling problem is fixed. The side posts have settled several inches and the garage shell is settling unevenly. Joel talked with the original contractor, who built it to current code. The contractor said that it would cost $4,800 + tax to jack up the posts to put in new footings. Joel Thomas, John McKenna and Chuck Buchholtz agreed to form a committee to 1) explore Association alternates with the contractor to share the costs of repair and 2) to make recommendations for the repair itself.

Work Party, June 23rd, 2001 A new trail was made on Access A, an area was cleared out on Access A for Association picnics and the parts of the Beaver trail were cleaned up and improved. Bob Keeney who has built trails for some Association members as well as for the Forest Service came and helped on that day. He is willing to work with the Association to lay out new trails, rework existing trails, train Association members how to build trails, and even to build the trails himself. He works for $16/hr. There was no consensus about building more trails. One member didn't want wide trails in the community properties and others thought the Fire Garage issues had higher priority.

Picnic, July 21st, 2001The consensus at the meeting was to have the picnic again. A sign up sheet was put up for people to help organized it next year. Members requested more notice to both events. Ann apologized for the late notice.

Election of New Officers. Bob Kitchell moved and Mike seconded to keep the same slate of directors for 2001-2002. The motion passed.

Other Business Assessment of increased dues. Last years dues went from $75/lot to $200/lot, mainly to start a Legal Fund. After much discussion, the consensus was to recommend to the Board that the dues be $150 /lot/yr. with $75 for Legal Fund and $75 for normal business.

www.kachesridge.com Tom O'Haver started and is maintaining a web-site for the Association. Burn permit information, a property owner directory and some maps are already on the web-site. If you would like your e-mail address added or need to make any corrections to your address information, you may contact him at tchohaver@yahoo.com. The Property Owners Directory is password protected for your privacy. The password is krma. It was requested that the covenants be added to the web-site.

*Maps about the Ridge in larger versions were available for sale.

Project ideas Members suggested that people send any ideas to the web-site. Excitement ensued about getting access to the lake. Many members suggested that Kachess village be contacted to see if it would be possible to use their boat launch. Parking in the village is an issue. Several members were willing to pay for the privilege. Other suggestions included getting a chipper, getting a community dumpster for garbage, and black topping the community access road to the lake.

Adjournment John Daughtery moved and Joel seconded that the meeting be adjourned at 4:33 p.m.

Respectfully submitted,

Ann Lewis, Secretary