OWCAM BOARD OF DIRECTORS MEETING
TUESDAY, MAY 14, 2002
RIVERPLACE CONFERENCE ROOM
PORTLAND, OREGON AT 8:30 A.M.

PRESENT:
Marshall Fant, President
Bryce Stephens, Treasurer
Cheryl Brendle, Secretary

MEMBERS PRESENT:
Rich Thompson, Regenesis
Alan Crandall, Union Bank of California

BY INVITATION:
Bill Sasser, Transpacific Management Service
Jim Agostini, Community Risk Management

CALL TO ORDER
Marshall Fant called the meeting to order at 8:40 A.M.

II. MINUTES APPROVED
The minutes of the March 12, 2002 meeting were approved as previously circulated.

III. 2002 EXPO
The Fall Expo is discussed. Marshall will be in Seattle on May 28 and will meet with Michelle, the person that organized the Seattle CAI trade fair. The format of OWCAM's program is discussed. It will be educational. Members will be encouraged to send their staff and non-members will be permitted to attend too. There will be opportunities for vendors to interact with managers. At this time it is not certain if it will be half-day or full-day format. Whether it should be held in October or moved until December is suggested.

IV. PROMOTION OF OWCAM
Service Provider Member Rich Thompson explains that he has changed his newsletter to a PDF (portable document format). This has allowed him to increase the newsletter's circulation cost-effectively, making it available to about 5000+ subscribers instead of the current version, which is mailed to 1000 persons. Rich offers to prepare a special advertising page for OWCAM. A portion of this advertisement could be used to promote OWCAM's vendor members; thereby increasing the likelihood, they will renew their membership. Rich offers to insert this ad in the mailed version of his newsletter at the discounted rate of $100 per mailing. The purpose of having an ad would be to increase name recognition of our new organization and to be able to show our vendor members that we have supported and promoted them. Upon motion made by Cheryl Brendle, seconded by Marshall Fant and carried, OWCAM will advertise in two issues of Regenesis at a total cost of $200.

It is further decided that all but $1000 of OWCAM's funds shall be moved into a money market account that is interest bearing.

IV. NEW MEMBERS
Bryce Stephens reports that Rich Ranf, State Farm Insurance has joined the organization as a new Service Provider Member.

V. BYLAWS
Generic bylaws provided courtesy of Landye, Bennett and Blumstein are discussed. Cheryl Brendle will send copies of this document to the other directors so that adoption of a set of bylaws can be discussed at the next business meeting. Marshall will provide the directors with a copy of the CACM bylaws as well.

VI. ETHICS
No report.

VII. UPCOMING PROGRAMS
Rich Thompson will send e-mail to all OWCAM members to determine who would like to speak at the upcoming programs. Cheryl Brendle will be responsible for setting up the next program after Rich determines who wants to available to speak.

VIII. REPORT ON MEETING WITH REAL ESTATE COMMISSION
Brian DeMarco of the Real Estate Commissioner's office has meet with a joint session of members of OWCAM and CAI. It has been determined that he has no immediate intention of proposing legislation regarding the licensing of community managers. The State's primary concern is that unrestrained managers might have the ability to mishandle HOA funds. Rich reminds the group that the largest percentage of HOAs is still self-managed.

Within the next two years, we can lay out a reasonable set of procedures and controls. It is mentioned that California requires each Association to conduct an annual financial review using an independent CPA. In Washington, an audit is required where an HOA has over $50,000 in annual revenues.

No action is taken on this matter. The topic will be tabled and discussed at a future time.

IX. OWCAM's PUBLIC POLICY POSITION
Need for Lobbyist - Marshall Fant led a discussion of whether OWCAM may need a lobbyist to representative the organization at the state level. Who might be able to do this and what it might cost is discussed. Marshall will speak with the CAI people in Seattle next week as they have had a lobbyist in the past.

Implement Educational Standards for Managers - Cheryl Brendle suggests OWCAM/CAI should proceed with implementing educational standards for managers even if the State will not mandate them.

Financial Audit Requirement - The issue of requiring Oregon Associations to have financial audits/reviews is another topic the organization should eventually take a position upon. Rich Thompson says that CAI-Oregon's Legislative Action committee may be taking a position of the financial review issue and it has the ability to bring the matter to the legislature.

Resale Disclosure - Amending ORS Chapter 105 - resale certificates - Rich Thompson says currently the seller in an HOA or condominium is required to disclose very little to the buyer of his/her unit. In CAI's LAC, Rich Thompson and Barbara Kanz are working to improve this situation. Restrictions on pets, parking, rental of units are some items that should be disclosed to a prospective buyer.

X. TREASURER'S REPORT
Bryce Stephens reports that OWCAM has $8580.19 in its checking account. Only one member has yet to pay his membership fee.

XI. FIDELITY INSURANCE PRESENTATION
Risk Manager, Jim Agostini gives the group information about the fidelity risks of Associations and managers and presents a program through which a management company can purchase aggregated fidelity insurance through Hartford Insurance. As fraud cannot be stopped, it is important that managers learn to deal with it and properly insure against this risk. Generally, Associations should have fidelity insurance equal to their current reserves plus 3 month's fees. Fidelity insurance must protect the customer against theft by the owner of a management firm. Many policies exclude the owner. Criminals understand that fidelity losses are often uninsured and therefore are not aggressively investigated or prosecuted.

XII. ADJOURNMENT
The meeting was adjourned at 10:07 A.M.

SUBMITTED BY: Cheryl Brendle, Secretary