Minutes of
ESPERANZA ESTATES HOMEOWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING

Monthly Meeting on May 15, 2006
Bank of America 410 W Continental Road
Green Valley Arizona

Members Present: Max Perry, Tom Cooke, Sheila Bennen, Ken Miller, Steve Brown, Gary Chelseth.
Members Absent: Norma Stanley, Joan Moreaux

At 1:30 PM President Max Perry called the meeting to order. There were no new members present.

Max announced that Ben Sheffield had resigned from the board. He stated that he had asked if Kathy Babcock or Sig Friedman, two members who had run in the annual election, would agree to serve. Kathy declined but Sig stated he would fill the vacancy. Tom moved and Steve seconded that we approve Sig to fill the vacancy. All the board approved. Sig will join the board effective this date.

Max then asked for approval of the minutes of the regular April 17th meeting, the minutes of the Executive Session of April 17th and the Special Meeting of April 29th, 2006. Tom moved to accept and Ken seconded the motion. The minutes were approved.

Sheila presented the Treasurer’s report. It was noted that three areas were over budget; CAM labor, CAM materials and CAM palm tree and tall tree trimming. Sheila stated that these were one-time expenses and would not be an ongoing expense. We are over budget by $5,259.71 at this time. Tom moved to accept the report but it was to be noted that the overages were one-time expenses. Steve seconded the motion. Treasurer's report was accepted as submitted.

COMMITTEE REPORTS

A) Architectural Committee - Steve reported no requests had been received in the last month.

B) Capital Projects - Tom Cooke read from a prepared statement outlining the history of the Ramada Project. He then moved with the following statement: I hereby move that the Board approve this project and proceed with it and authorize the President to sign an agreement for the construction at a cost not to exceed the sum of $110,000.00 with the subject of financing to be the subject of further discussion and a separate motion. Steve seconded the motion. Max then asked for comments from the Board. Ken expressed his approval of the project stating that it will enhance property values. Max then asked for comments from the audience:

Stina Herrick stated that the project was too big, would cause greater heat and would obstruct her view. Dean Wickwar stated that the membership should be allowed to vote on the project. Carol Wickwar stated that she did not believe it would enhance property prices and asked Max how much he felt prices would increase. Max stated that improvements historically increase prices. Carol was against the project and objected that a vote would not be taken. George Paddleford felt the cost of the project is underestimated and that there will be overages. He demanded a vote be taken. If a vote is taken he will help pay the costs. Walter Stremme expressed his approval of the project. Scottie Blum expressed her approval of the board. The pool area has been enhanced during the last four years and she is for the project 100%. Hal McMickle expressed his dis-pleasure with the project and stated that a vote by the owners should be taken.
Hope Allen expressed her belief that this project is just the beginning. More expenses for the walls, air conditioning etc. will follow. Jessica Greulich stated that she felt the board was dealing with matters in an automatic manner. Stina Herrick thanked the Board for its past actions but feels there needs to be a vote by members.

Max then asked the Board to vote on the motion. A roll call vote was taken and all members approved the action unanimously.

Tom then read a prepared statement outlining the financing options. He then stated that we had paved several quad driveways for a cost of $90,000.00 and no vote was taken for that action and it only benefited 67 members. He then asked that a Board member make a motion to authorize the President and Secretary-Treasurer to negotiate for a financing package not to exceed $70,000.00 on terms deemed most suitable and appropriate to accomplish financing of the Ramada Project with an interest rate not to exceed the current prime rate. Steve moved to accept the motion and Ken seconded. A roll call vote was taken and the motion was approved unanimously. The prepared statement will be attached to the official minutes for the record.

C) Common Area Maintenance - Ken reported that one owner wanted to plant Oleanders in the common area. The request was denied. She was asked to plant them inside her wall. Trimming is almost complete, spot weed spraying will not be done until after the Monsoons.

D) GVCCC - Sheila reported the GVCCC has a new volunteer brochure. She will write an article for the Periodico on the brochure.

E) Neighborhood Relations - Max reported for Joan that all the illegal signs were removed and thanked the owners for their cooperation.

F) Recreational Facilities - Gary reported that Joan Lazarski is still doing the morning pool chemical check. Max asked that the board members continue taking their turns in the PM. Pool use is up to 7-29 per day for an average of 19. Spa use is up. The Spa will be closed on May 29th for re-plastering. It will be closed for 7-10 days.

G) Hospitality - Scottie reported that 120 people attended the Cinco De Mayo Party. There was lots of food and it was all eaten. The bank balance is $815.15. There will be a Memorial Day Party.

H) Neighborhood Watch - Melodye reported that people should take extra care watching houses during the summer. They should also put in long life bulbs when they leave.

I) Esperanza Enhancement - There will no activity until the Fall. Their bank balance is $4,099.68. Ken requested that they plant low maintenance plants when they do plant in new areas.

Old Business - Mary Wallace has rocks she will donate if they can be used and transported. Ken will try to find a way to move the rocks.

New Business - None

Tom moved for adjournment - The meeting adjourned at 2:30 PM