BEAUTY BAY HOMEOWNERS ASSOCIATION

ANNUAL HOMEOWNERS MEETING MINUTES
Draft until approved at BBHOA Annual Meeting 2022

AUGUST 21, 2021

Meeting Called to Order at 10:07 am

It was verified that a quorum was met.

Introduction of new members : Raffi and Melissa (present), Tina and Greg Burnworth,

and Chris and Carrie Briner

Review/approve minutes from annual meeting 2020 – Renee made a motion to waive the reading of the minutes. Debbie seconded. Motion passed. Reading of the minutes was waived. Joe made a motion to approve the minutes. Bill seconded. Motion passed. Minutes of the 2020 Annual Meeting are approved.

Treasurer’s 2021 Report – Patty gave the Treasurer’s report, noting that a Reserve Account had been set up and funded. James Everett asked how much the liability coverage is. Patty did not recall and told James she would forward the information to him after the meeting.

Renee pointed out that the reserve was approved the prior year for only one year. Renee made a motion to assess the $20 per lot for the reserve again in 2022. Joe Rush seconded. Motion passed.

Old Business

Beauty Bay Drive easement update – Delayed until November because of date of recording- Raffi asked about the background. Bill asked if the survey verified the fence is where it should be. Renee said it did.

Beauty Bay Resort update – Renee read this statement:

“There has been a lot of talk and inaccurate information floating through the HOA. Many have been speaking to groups without knowing the facts so I would be happy to clear up any confusions and would like to share the step-by-step process of how and when the resort property has sold.  As many of you may have heard, the beauty bay resort and the Beauty Bay Marina parcel have sold as of this summer. On March 7, 2021, I saw on the MLS that the flowers estate relisted for sale. The marina and the resort were re-listed as two separate parcels. On March 11 I made an offer on just the marina parcel in hopes that much of the neighborhood would join in with me to save it from major California development with restaurants, condo towers and sky bars. After I made the offer I asked the following neighbors to go in with me and be apart of this venture with me. I asked Bill Braid, Wayne and Barbara Christopherson, Tim and Amber Ochoa, Eric and Cheryl Novojw, Joe & Ruth Rush, Dan and Becky Sturgis, Debbie and Cory Bridges, and Fred and Verna Hinkle, not all parties made the decision to go in this with me. The neighbors who were able to join me in this venture are the Rush’s, Hinkles, my parents Joe and Patty Bordelon and myself. I also included Tammy and Toby Doolittle as well. On April 15 we successfully closed on just the marina parcel.

Upon our closing the Doolittle‘s began to get approached by major developers to do condos in high-rises and multi-family housing. We immediately knew we needed to take action to stop this kind of development in our bay. We came to an agreement with Tammy and Toby Doolittle and we as an ownership group successfully closed on the resort lot on June 15.

The folks who are owners but do not live in the neighborhood either live in BBay or have been lifelong residence of Coeur d’Alene Idaho and comprise 2/3’s of the ownership which means that only 1/3 of the ownership is HOA members. There is not one owner that is capable of doing major developments or buying any of us out. This is a venture that we intend to keep the community apprised. As many of you know the marina parcel is not a part of the HOA and has been separate since the beginning of time. Many of you are wondering what our plans are. We plan to make our money back by adding boat slips to beauty bay. We have no plans to do a restaurant, a bar, or any sort of Condo towers residences or high-rise entertainment. In fact our plan is to make Lot 1 BLK 6, that is a part of the HOA community to my right here is only going to be private parking.

This is a win-win for the HOA as it will only have people parking in it three months out of the year. The rest of the year remains very quiet with no activity. Some of you may be aware of how the county process works. In Kootenai County we are under no obligation to share our plans until the permit is filed. We are not required by anyone to share our plans nor ask permission to purchase property. However, Once we file the permit the county will immediately notify the adjacent neighbors which will be the HOA, Marilyn and Lyon’s residence. The county will provide the HOA and adjacent neighbors a full packet of exactly what the plans are. Details will be explained in full on our project. From there the county will hold a public hearing down at the courthouse and all neighbors and residents of Beauty Bay HOA will have the opportunity to go in front of the county commissioners and share your thoughts on our project. From there the county will make the decision to grant the permit. Please understand we were not in any way holding information from the HOA, the reason our ownership did not reach out the the HOA is because we don’t have anything in our plans that will affect the HOA. As you all recall all prior developers or potential buyers wanted or needed something from HOA therefore the HOA was a major part in their due diligence. We do not. We don’t want anything to do with the HOA common area, parking or land. We plan to develop the lots without harm to the HOA. At this time we still do not have our survey completed nor do we have our site plan done from our engineer therefore we are still weeks or perhaps months away from applying for any permit. Without either of those we are unsure how many slips we can apply for. Also keep in mind Idaho is a public notice state so it has been public information since we purchased the property. Anyone is able to go to the county and look up who owns the property at any time.

In order to avoid any perception of conflict of interest between the HOA and the marina, any board member who also has interest in the marina will recuse themself from a vote that may create a conflict of interest. We as Beauty Bay Marina were so excited about being able to step in front of major developers, out of state investors and people who just don’t care about this community, this bay and what it is about.

I have lived here since I was 10 years old, I remember moving into our home on my 10th birthday. I’m coming up on 24 years as a resident in beauty bay. As most of you know my parents still live in the same home that I grew up in. The Rush’s have been here even longer than my mom and dad have. The Henkels moved here to retire in a quiet place, and the Ochoa’s came to raise their kids in a safe neighborhood. Please understand our intentions are to live here for many more years. We therefore have the best interest in this bay. We thought we were doing right by being able to come together as a group to do this and we appreciate your support. Please know I am here to answer questions and am open to phones calls, texts and emails anytime.”

Debbie said thank you for that statement and there was applause. Dan and Becky Sturgis, Cheryl Nowoj, Verna Henkel and Elaine Say also voiced their appreciation .

Walter Babich and James Everett said they felt the Board had not been transparent enough and should have communicated their involvement in the purchase to the BBHOA.

Wayne said that there had been a meeting of some of the homeowners when they learned about who had purchased the property. Wayne said that the Board had a

Fiduciary responsibility to notify the homeowners. He read from the minutes of the Board Transition Meeting held on : “The Board discussed and determined that the Board will tell all prospective buyers that the Board cannot speak on behalf of the members of the Association as to whether they would support any potential project. The Board will ask for written, detailed proposals that they can then take to the membership.”

Renee, Joe and Patty, who had also attended that transition meeting, had a different interpretation of that discussion. The developers with whom the Board met needed something from the BBHOA to complete their plans. (i.e., easement for sewer, use of tunnel, use of commons for underground parking, etc). These developers had asked the Board how the homeowners would feel about the development. That is why the Board said they would not speak on behalf of the Association. The Beauty Bay Marina LLC needs nothing from the BBHOA, so had no need to approach the Board. Further, they have no written, detailed proposals to share, as the surveying, review of the Department of Lands, and the permitting process with County have not taken place. The BB Marina first needs to find out what they can do before they determine what they want to do.

Renee pointed out that Block is subject to review by the architectural committee. There are currently no plans to build a structure on that block, but if they would at some point in the future, no one on the architectural committee has any ownership of the property.

Dan Say asked how the properties are zoned. Lot 1 block 6 is commercial. The marina is special use.

Much discussion followed, with some members clearly feeling the situation should have been handled differently, and others expressing how grateful they were that the outside developers were stopped.

Renee suggested that a committee of concerned BBHOA members be formed to meet on a regular basis with Renee, as a spokesperson for the BB Marina. The meetings would be to share any information that comes up during the permitting process. The members of the Marina Communication Committee are Bill Braid, Wayne Christofferson and Angela Brown.

By-laws Revision – By laws revision passed with 58 votes yes, 6 nos 15 no votes. 53 were required to pass the revision. The revision was recorded on 12/2/20.

Parking stickers – made and distributed

Private Parking signage -– Joe and Joe and Corey installed them. They seem to help keep Mineral Ridge hikers out of the lot.

Additional parking spaces proposals – Debbie Bridges brought up some ideas to reduce the congestion in the parking lot and handed out an area diagram. Some members mentioned that they only saw a crowded parking lot on a few occasions this summer. Bill suggested that the ATV’s park along the area between the pump house and the parking lot. After discussion, Renee motioned to have all ATV’s park in that area in 2022, and see if this resolves the congestion. Verna seconded it. Motion passed.

Path along the fence for ATV’s – Thanks to Joe Rush for making the path. Cheryl said the path is getting dusty. Debbie suggested that planting clover might cut down on the dust. Members were as to drive slowly and carefully and stay on the path.

Roger’s pile of brush – A demand letter was sent to the Rogers and they cleared

Parking stickers – Joe and Joe and Corey put those up no parking

Red shed – A motion to tear the shed down was passed at the 2020 Annual Meeting.. Bill suggested that a work party be put together to tear it down and haul the debris away. 9:00 am on September 18, 2021, was chosen as the time. Wayne, Joe R, Renee and Eric Nowoj volunteered.

Mailbox – Debbie put new numbers on each box, which look great. There are 6 open mailboxes available.

New Business

Proposal to reconfigure the docks to protect the beach from further erosion and to add additional slips for members on the waiting list – Renee got a bid and it was too expensive to pursue. The erosion of the beach is still a major concern. A Beach and Dock committee was formed to address this concern as well as the maintenance of the docks. Wayne said that if dock maintenance is done a step at a time, one step each year (i.e., replace boards first, then address flotation, then pilons), a new permit would not be needed. Carrie and Chris Briner, Cheryl Nowoj and Wayne volunteered for the Beach and Dock Committee.

Road speed – dust, safety, kids, integrity of the road. Any way to enforce with carriers such as Fed ex, Amazon, UPS?

Debbie Bridges and Becky Sturgis presented a draft of new guidelines to the Board and the Board approved them. The new guidelines will be posted to the website. A new architectural committee was named: Bill Braid, Dan Say, James Everett & Raffi Diradorian.

BBHOA lot assessment – Debbie made a motion to remain the same at $165/lot. Elaine Say seconded it. Motion Passed 49-9.

Dock assessment – Joe Rush made a motion to remain the same at $200. Corey seconded it. Motion passed 12-2.

New business

Corey said every lot owner that butts up to an existing road is responsible for weed whacking the road for fire prevention. He made a motion that the homeowner who does not clear the road by June 15^th each year should be charged $20/hr for the cost of someone doing it. Bill seconded. Motion passed 50 – 5.

Proposal to change the number of votes required to pass addendums to by-laws and CC&R’s from 2/3 vote of all of members to 2/3 vote of the number of respondents – Joe Rush mentioned that when amending the bylaws, it requires 2/3 vote of homeowners. As seen when revising the by-laws this past year, it is difficult to get the votes of people who do not live here. Those people make up a significant % of votes. Joe motioned that the requirement be changed to 2/3 of the respondents, as long as a quorum of the membership responds. Corey seconded it. Discussion followed. There was confusion about exactly what the motion was. It was reiterated that this was a motion to draft an amendment to the by-laws. This amendment would require 2/3 votes. Motion passed 34-25.

James E said the Lake Water System should have a utility easement. Bill said he would work on that.

Wayne brought up that BBHOA owns the pump building of lake system. He said if BBHOA really wants to differential themselves from the Lake Water System, the BBHOA should gift or sell them the building. Bill Braid made the motion to sell the building to the Lake Water System for $1.00. Wayne seconded. The motion passed 54 – 2. Bill wrote the check to the BBHOA.

Wayne said because of heightened fire danger it would be nice to have a system to warn all of the residents to be ready to evacuate. Bill said there is a mobile app for that. Renee and Bill will investigate this further.

Elaine Say said it would be nice to communicate more through the website. She suggested a monthly community newsletter. Many members liked the idea. If you have information you would like to post in the newsletter, contact Elaine. She will write the newsletter and give to the Secretary to post to the website.

Raffi asked if it was possible get an easement for a septic if you don’t own the lot next to you. He was told to get permission from Purdy.

Renee brought up the issue of lots being consolidated. Sometimes the County requires it. When lots are consolidated, there is a loss of revenue to the BBHOA. Renee would like to work on an addendum to the by-laws to state that the assessments will remain the same as the original lot configuration. For example, if a homeowner purchases 3 lots, and then consolidates to 1 lot, the assessment will remain at $495.00 (3 x $156). A consolidation committee of Renee, Patty and Bill Braid was formed to work on the addendum.

Don Abbott asked if a new Beauty Bay Road sign could be made. It was discussed that all the road signs were old and hard to read. Bill said that the county should give us new signs. It was mentioned that it might take a long time for the county to get around to it. Renee said she would investigate it and would ask for a bid from the sign maker who made the parking and no trespassing signs.

Election of Officers

First, Board Member (Renee Bordelon’s post)

Wayne nominated Bill – 4 votes

Jerry Robinson – 19 votes

Corey nominated Renee – 36 votes

Renee elected.

Second, Board Member (Joe Rush’s post)

Wayne nominated Bill – 21 votes

Wayne nominated Jerry – 4 votes

Corey nominated Joe Rush – 34 votes
Joe Rush elected.

Third, Board Member (Formerly Secretary/Treasurer, now Board Member – Patty Bordelon’s post)

Patty nominated Becky – 40 votes

Bill nominated Angela; Angela declined

James nominated Jerry – 19 votes

Becky Schmid elected.

Other Business – Renee gave a big thanks to all the volunteers who maintain the community. She called out especially the work crews after the terrible windstorm in January that brought so many trees down.

Meeting Adjourned at 12:52 pm