March 2, 2000
Subject: Minutes of the Board of Directors Meeting held on February 26, 2000.

1. Subject meeting was held at 47 Kinglet Lane following Enclosure (1) agenda. The meeting was attended by Raymond Cook, Chairperson; Ronald Wise, Treasurers; Edmond Vignoul, Secretary; Melvin Nunn, Manager, and Deanna Knox, President of Elite Management Services.
2. The meeting was called to order by Raymond Cook, Chairperson, at 2:20 P.M.
3. The agenda was reviewed, modified and approved by the board of directors.
4. Deanna Knox presented the accounting report. The presentation included financial status along with a review of capital reserves. The board discussed the movement of funds into proper reserves and this will be accomplished by accounting. The financial status is positive.
5. The board of directors discussed the minutes of the January 7, 2000. The minutes were modified to meet the approval of the board. The modified minutes were approved by the board.
6. Mel Nunn presented the Manager's report. The report included the following:
   1. Harrigan Patrick Price & Co. has performed a brief analysis of the association reserves. Their analysis recommends an increase in reserves and an update of the reserve requirements. Their analysis also recommends a change from the calendar year to a fiscal year accounting system. This fiscal year accounting system change would make it more convenient for owners to obtain more timely accounting data at the annual meeting. The company has submitted a proposal to address the issue of an audit that was approved by the owners at the 1999 annual meeting. The company will compile the data that they receive from the association in the form of financial statements that are representative of management in accordance with standards of the American Institute of Certified Public Accountants. The company will also prepare state and federal income tax returns for the year ended December 31, 1999. The cost of these proposed efforts will not exceed $1,200.00. They also propose to perform an analysis of cash reserves and other matters for an additional fee of $600.00 to $800.00.
   2. The status of the action item list of January 6, 2000 and as modified on February 27, 2000, was also presented.
   3. New action items and status changes were also presented to the board.
   4. A report was presented to the board describing what would have happened during the recent January and February snow if Wildflower II had metal roofs.
   5. The draft revisions to the By-Laws were recommended for approval. All the Manager Report documents are available upon request by contacting Mel at (541)593-2237.
7. The board discussed the Harrigan Patrick Price & Co. report. The board approved contracting with the firm for the following tasks at a price not to exceed $1,200.00:
   1. Compile the balance sheet of the Wildflower II Association of Unit Owners as of December 31, 1999, and the related statements of revenue, expenses and changes in fund balances, and cash flow for the year then ended, in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.
   2. Prepare federal and state income tax returns for the year ended December 31, 1999, and provide consultation on tax and accounting matters as the need may arise.
   3. Make application to the Internal Revenue Service to switch from a calendar year-end to a September, 2000, year-end fiscal year. Action was assigned to the manager to verify the not-to-exceed cost and to initiate the contract.
8. The board reviewed the action item list with the manager. Some additional action items were listed. A discussion ensued regarding financial responsibility for window breakage and replacement. It was pointed out that as far back as 1994, Ridgepine had notified owners that they were financially responsible for window breakage. The Chairperson noted that the association was carrying $100.00 deductible insurance for window coverage. The chairperson also noted that the association needs documented board declarations regarding such issues as windows, skylights, snow removal from steps and walkways, and other areas not specifically covered by the By-Laws. This will be a future agenda item.
9. The metal roofing scenario report developed by the manager was discussed. This report basically pointed out the winter problems associated with metal roofs on structures not designed for metal roofs such as Wildflower II. The board of directors agreed that they and the owners need to revisit this roofing issue with more data prior to any re-roofing of the wooden shake shingle areas. The board of directors agreed that their approach to re-roofing will be:
   1. Determine the roofing material. This will involve a ballot vote by each owner. Owners will be sent a packet of information developed by the board.
   2. The manager and a certified roofing inspector will inspect every roof and write up the condition and life expectancy of each unit roofs. This includes flat, sunken, shake roofs and any other part of the roof. This data will be used to determine the priority of roofing.
   3. The board will use this data to develop a Roofing Plan. The plan will include financing, scheduling and contracting. Each board member and the manager will research material for submittal to the owners. This material and data will be organized by the board for a possible April mailing to the owners. The manager and certified roofing inspector will begin inspection when the snow melts from the roofs.
10. The board discussed procedures for releasing information to the web site. The board agreed that all articles about board business must be approved by the board prior to submitting to the Webmaster for publication.
11. The board discussed the condition of the trash enclosure doors and the trash being scattered by the animals. The manager was assigned the action of looking into alternatives to solve this condition.
12. The board reviewed the costs associated with flood insurance ($14,419.00/year) and earthquake insurance ($2,175.00) and, based on past experience, decided neither form of insurance was necessary.
13. The board proposed that the next annual meeting be on October 21, 2000. This date was selected because of the Association's fiscal year ending on September 30. 2000, and to ensure sufficient time to close out the financial records.
14. The Chairman summarized the meeting and reviewed the action item list. Neither a date nor a place has been set for the next meeting. The meeting was adjourned at 4:35 P.M.

Respectfully,
Edmond Vignoul, Secretary,
Wildflower II Association of Unit Owners

Copies to: Board of Directors, Manager, and Elite Management