HEATHERLEA OF ARLINGTON

ANNUAL MEETING

JULY 28, 2003

Board Members Present: Gene Cowan, President: Jim Shelton, Treasurer; Betty Scott, Secretary.

Representing KPA, Inc.: Carol Hanas, Community Manager.

Attending from the Association Office: Kathleen Cook, Administrative Assistant; Leslie Bush, Office Temporary; Eugene Evans, Maintenance Engineer.

CALL TO ORDER

President Cowan called the meeting to order at 7:35 PM without a quorum present.

PROOF OF NOTICE OF MEETING

Notice of the 2003 Annual Meeting was mailed first class on June 30, 2003 to all owners of record on that date.

INTRODUCTION OF ASSOCIATION STAFF

The Board of Directors introduced themselves to all unit owners present. President Cowan introduced the Association staff.

REPORTS BY OFFICERS

President's Report- President Cowan explained the importance of the Board of Directors and the Unit Owners Association. He stressed that the unit owners are responsible for being involved in their Association because it is the owners who control the Association through their Board, and no one else. (Note: the text of President Cowan's report is appended at the end of the minutes.)

Treasurer's Report- Jim Shelton explained the budgeting process. Some funds are kept in a money market account for liquidity even though the interest rate is lower than other investments. The rest of the Association funds are invested in CD's; $100,000 matures per year.

Condominium fees are now $200 per month. Last year, they were $200 plus a special monthly assessment of $35. The condominium fees will remain at $200 for the next year.

UNIT OWNER FORUM

President Cowan asked owners to comment on the idea of installing skylights at the Heatherlea. He suggested three options:

1) Install the skylights, paying for them with a special assessment.

2) Create a reserve fund for the skylights- he estimated it would take 5- 7 years.

3) Not install the skylights at all.

Owner opinion was fairly evenly divided for and against the installation of skylights.

The Board of Directors commended Eugene Evans for his service to the residents of the Heatherlea Condominium.

Heatherlea 2003 Annual Meeting

July 28, 2003

Page 2

ESTABLISHMENT OF QUORUM

At 8:30, Gene Cowan proudly announced the establishment of quorum.

APPROVAL OF MINUTES

4500-D moved to approve the minutes of the 2001 and 2002 Annual Meetings; 4514-C seconded. Minutes approved.

ELECTION OF DIRECTORS

Four unit owners submitted Statements of Candidacy although five Board seats were available 2819-A, 4514-A, 4514-C, and 4537-D.

Nominations from the Floor- 2429-E nominated herself for a Board seat.

Gene Cowan suggested that all candidates be elected to the Board by acclimation; all approved. Elected to the Board of Directors for one year terms were Rita Becker, Michael Bell, Gladys Daines, Betty Scott and Jim Shelton.

Ballot & Ratification

All present (25 unit owners) voted in favor of the Ratification.

RAFFLE WINNER

Ticket number 8532220 was called; the winner was Michael Bell.

ADJOURNMENT

At 8:45 p.m. the Annual Meeting was adjourned.

_______________________________

Approved by the Membership on this Date