THE MINUTES OF THE MEETING

OF THE

BOARD OF DIRECTORS

OF THE

HASLEY HILLS HOMEOWNERS ASSOCIATION

February 6, 2005
 

CALL TO ORDER

The following are the Minutes of the Meeting of the Board of Directors of the Hasley Hills Homeowners Association held February 6, 2005 in Santa Clarita, CA. A Quorum was noted and the meeting was called to order at 7:15 p.m.

BOARD MEMBERS PRESENT

Kathy Waggoner, President; Bob Throckmorton, Vice President; Larry Totter, Secretary and Roger Ludwig, Treasurer.

BOARD MEMBERS ABSENT

Donna Covert, Member at Large.

LB PROPERTY MANAGEMENT REPRESENTATIVES

Craig, Tice, Ellen Ford, and Janice Eisenberg of LB Property Management (LB) were also present.

APPROVAL OF MINUTES

Roger Ludwig moved to waive the reading and approve the Minutes of the Meeting held January 6, 2005 as submitted. Larry Totter seconded the motion, which carried.

PRESENTATION

Annexation Update/Meeting

Mitch Green reported that he is against the annexation of just the industrial center, noting that he feels that the annexation of the industrial center should be coupled with annexation of town of Castaic.  Green indicated that annexation with the City would eliminate the County 5% utility tax that community residents currently pay, and would increase Castaic’s access to local law enforcement.  Green also stated that Castaic’s needs would be more effectively met if they were annexed with the much smaller and easier to communicate with City of Santa Clarita than the much larger and more difficult to communicate with County of Los Angeles.

Mitch Green advised that the community would need to obtain signatures of 50% of the homeowners on a petition of interest if they would like to pursue the matter of annexation further.

Mitch Green reported that an Annexation Meeting is scheduled for February 28, 2005 at 7:00 p.m. at the Castaic Union School District Office.

PRESIDENT’S REPORT

Kathy Waggoner reported the following:

• The Class Action lawsuit was presented before a judge, and the judge granted the right to relate the Class Action lawsuit with the Association’s lawsuit against KB. 
• A trial date has been scheduled for July 7, 2005.
• A mediation date has been scheduled for March 7, 2005 with KB.
• KB has acknowledged service of a Summons and Complaint and have thirty days January 31, 2005 to respond to the Complaint
   

HOMEOWNERS’ FORUM

A resident on Holmby Court - inquired about the status of a slope that failed behind his home. Penny Hansen reported that KB has covered the slope with plastic, the County has been informed about the incident, and the Association has turned off the irrigation on the failing slope.

Davis/29833 Cashmere - inquired if homeowners need to call to be included in the Association and Class Action lawsuits.  The homeowners were advised that they are automatically part of the Class Action Lawsuit, but may opt out of the lawsuit should it become certified. The homeowners were advised further that all homeowners are part of the Association’s lawsuit against KB by virtue of being part of the Association.

Copeland/29865 Berkshire - inquired about the status of a slope that failed behind his home.  Penny Hansen reported that True Green is trying to isolate the irrigation on the slope while trying to keep the plants alive. Penny Hansen reported further that soils engineers are conducting inspections, and will include their report as evidence in the lawsuit against KB.

Hamon/27941 Knight - inquired how the Association is paying for legal expenses of approximately $30,000 per month with only a $2,000 per month budget. The homeowner inquired if there would be a levy of a special assessment to cover the additional legal expenses. The homeowner inquired why the Association is not utilizing a lawyer on a contingency basis.

Roger Ludwig advised that the board may have to look into funding options if the litigation continues long term..  Roger Ludwig indicated that the board calculated that it would be less expensive to pay legal fees up front rather than pay approximately 30% in contingency fees.  Roger Ludwig noted further that the board could switch to a contingency plan if the litigation takes longer than anticipated. 

A homeowner inquired if they can vote to utilize a contingency system.

Kathy Waggoner reported that the board approved the current legal payment method based on the board’s fiduciary responsibility to the Association.

Penny Hansen indicated that some of the items that KB needs to address in the litigation are lot line adjustments not related to the square footage issue, malfunctioning and/or improper irrigation systems, slope repairs, as well as wrought iron.

A homeowner inquired if a water recycling system could be added as part of a long-range plan.

Penny Hansen advised that installation of a water recycling system would most likely not occur because of the high cost of set-up.

A homeowner inquired if the slopes could be returned to their natural state.

Penny Hansen advised that this is not recommended because the manufactured slopes have been holding up better than the natural slopes.

A homeowner inquired if the slopes could be donated to the County.

Penny Hansen advised that the County does not want the slopes.

A homeowner inquired if the slopes could be released to the homeowners.

Kathy Waggoner advised that this would have to go to the homeowners for a vote.

Penny Hansen reported that the debris basins are currently under KB’s control, noting that the debris basin will eventually be turned over to the County once KB meets the Counties criteria.  Hansen indicated that the maintenance of the debris basins would eventually be paid for through the County flood assessment. 

Kathy Waggoner advised that homeowners concerned about the debris basin, i.e. mosquitoes, smells, etc can contact Ron Edwards at the County.

A homeowner advised that she has had difficulty getting on the website, noting further that other methods of communication should be utilized for homeowners that do not have Internet access.

A homeowner suggested that the board look into publicizing the litigation with KB..

A homeowner inquired if the addition of the construction defects to the lawsuit caused the increase in dues.

Roger Ludwig advised that the dues were increased because KB stopped subsidizing the Association.

Homeowner Green reported that he is an attorney, and is familiar with class action and construction defect litigation.  Green advised that the amount being charged by the Association’s legal counsel is not out of line. Green advised further that it is prudent to pursue litigation against KB for construction defects as well as the square footage issue together because it would be difficult for the Association to pursue additional claims against KB should the case be settled or found in favor of the Association because KB would require that the Association provide a release from future claims.

A homeowner inquired if the board knows how much they plan on spending out of the reserve funds before they decide whether to special assess the homeowners. 

Roger Ludwig indicated that the board does not have an answer right now, noting that they will be evaluating this matter as they go.

The homeowners were encouraged to write letters to the Department of Real Estate, Attorney General, and County regarding their concerns related to KB. 

ADJOURNMENT

The Meeting adjourned at 9:00 p.m.

NEXT MEETING

Thursday, March 3, 2005 at 7:00 p.m.