BAYSHORE BEACH CLUB

Meeting called to order at 1:00PM by Max Metcalf Vice President, acting as President Pro-Tem. Lloyd Haines is not in attendance.

Max Metcalf welcomes everyone (approximately 75 homeowners have attended today’s meeting). A brief history of what has happened since June; In May Max was voted on to the board at the Annual meeting. In July the Vice President of the Board of Directors resigned for personal reasons, and Max was asked to fill the position he accepted and was elected Vice-President. At the July 19th meeting the Corporate Secretary resigned her position and then in August the President resigned. There was a meeting on August 20, 2003 and Max conducted that meeting as Vice President, acting as President Pro-Tem.

MSP Ray Schmidt motions to approve the minutes from August 20, 2003. Dan Norton seconds the motion. Unanimous, passed.

Names will be submitted to the board at the executive meeting for the Budget Committee. If possible Vicki will have the Committee meet within the next 2 weeks and by the November 15^th Homeowners meeting give a detailed report of the financial position of the corporation.

The pool closed earlier than was scheduled due to pump problems. Ron (Caretaker) submitted a list of repairs that the pool needs to have done before it opens next season. An approximate figure for those repairs has yet to be determined.

7,428 people came through the pool door. We sold 899 pool passes, $8.00 in swim diapers, minus a few supplies our total income for the pool this year $1798.00.

Thank you to Kathy Foss, Heather Hughes, Sherrie Michaels and Jackie Super for a great job this season. Thank you to Connie Abercrombie for volunteering to be on call when we needed her for any scheduling problems that came up. Thank you to Beth Marin for volunteering her time for the last 5 years to the pool.

MSP Mary Lou Morris motions to accept the treasurer’s report. Ray Schmidt seconds the motion. Unanimous, passed.

Ron (caretaker) will be on vacation from September 23^rd to October 1^st, if you have any questions or concerns please come and see me in the office, if I’m not here and you need an immediate response please call your division representative.

The Planning Committee members are Debbie Cushman, Don Butler and Randy Walker.

A letter was sent to property owners that use their homes as vacation rentals regarding the livability of the Bayshore community. In the letter a list of the problems affecting the Bayshore community were; Increased traffic, Excessive noise, Overflowing garbage cans, Excessive number of cars on the property and road shoulders, Large number of occupants, ATVs on roadways, dunes and the beach, Motor homes, trailers and fifth wheels parked on lots for extra rooms, Boats/Boat trailers parked on property as well as roadway, Illegal use of fireworks on property, dunes and beach and Fires on the dunes and in the driftwood areas. The letter went on to site Article II, Subsection 8a of the Guidelines for Determinations and Article II, Subsection 10a. It also stated that it is illegal to have any form of fireworks on the dunes or beaches. Fires are not allowed in the dues or driftwood areas.

A copy of this letter was also sent to the rental agencies renting properties in Bayshore and we asked that the property owner discuss this letter with their rental agency to make sure the C & R’s and State laws are not violated.

The last paragraph stated that we hoped for cooperation and that no further action would be required. However, if residents of Bayshore continue to make complaints about particular rental properties, the property owner will be notified and legal action may result. Any illegal beach activities will be reported to the Oregon Parks and Recreation Department and Oregon State Police. Other illegal road violations will be reported to the Lincoln County Sheriff’s Department.

Audience was asked that if they had a rental home in their area that we do not have on the list to please let us know so we can send one of these letters to them. Also if they knew of any property owners that live down here part or full time and they are violating any of the C & R’s to please contact Vicki or someone from the Planning Committee and let us know.

A letter was written to the Board of Directors from the corporate attorney Brian Haggerty. Max read the following paragraph from this letter to the audience because he felt it was pertinent on the subject of the Planning Committee.; A particular concern are the actions of the Planning Committee, their decisions are central to the purposes for which the homeowners association is formed. That all their decisions be made in an orderly and predictable way based on written procedures and that all decision should be documented.

Max attended one of the Planning Committee meetings and he found them to be doing an excellent job.

MSP Ray Schmidt motions to accept the Planning Committee report. Kevin MacPhee seconds the motion. Unanimous, passed.

There are several purposes for my being at this meeting. The first purpose is obtain input from the Bayshore Homeowners Association Board on a directional sign that the Road District is going to place at the intersection of Bayshore Drive and Bayshore Loop. As you know if you have been attending the Road District meetings, the residents of Bayshore Loop have requested that the street sign be moved closer to the intersection and that the bright yellow arrow be removed and replaced with a sign that provides visitors some information that will significantly reduce traffic into the Loop. The sign proposed is 30 inches wide and will say: Beach Access Club House and will have an arrow pointing down the hill.

The question before you today is, does the Homeowner’s Association want anything else on the sign? We are ordering the sign this week, but wanted the Homeowner’s Association to have the opportunity for input.

Max Metcalf: "If you the audience has a concern about signs, call or see Vicki and she will pass on all comments or ideas to the Board."

It is time for the Road District to have Tri-Agg come down and clear the roads on South Oceania of sand. That means that the ‘green machine’ will be parked at the canal again unless the Bayshore Homeowners Association Board of Directors provides other instructions. The decision on the green machine, if it needs to be parked in a different location, should occur soon and should be in writing.

The Road District is adopting a policy on traffic calming devices, i.e. stop signs and speed humps. The information is posted on the bulletin board downstairs as well as on the bulletin board here. Everyone is urged to read the information and offer comments. Your suggestions are appreciated.

In another matter concerning the Road District, the petition to dissolve the Road District has been filed and an election will be held either in February, or in March, on the matter.

The Road District has a meeting Tuesday, September 23^rd to finalize the plans to dissolve the District if the petitioners are successful. It is estimated that the cost to dissolve the Road District will be approximately $14,500 — which includes the cost of the election. The remaining money in the Road District will be refunded to the taxpayers on a percentage basis, as provided by law.

There are several rumors going around the area on what will happen if the Road District is dissolved. After meetings with Lincoln County Counsel, this is what will or will not happen.

The County will NOT take over the roads, nor widen the roads, nor put in walking paths. The County does not have the money and the roads do not meet County standards.

If the Road District is later reestablished, there will not be any money for the new Road District. A new property tax levy would also need to be approved. Under no circumstances will the Road District report to the Bayshore Homeowners Association. Whoever is spreading this rumor does not understand government. Government cannot report to anyone except the taxpayers via public meetings, as has been happening all along.

On the issue of higher insurance rates because of speed bumps, the State Insurance Commissioner’s office and ISO (Insurance Services Office) were contacted because someone is spreading a FALSE rumor that speed bumps and the slightly decreased response time of fire engines will result in higher fire insurance rates. They both verified that response times do NOT impact insurance rates. The distances to a fire station and to a fire hydrant are used to determine insurance rates.

Max Metcalf: "I asked our corporate attorney what happens if the Road district was dissolved according to the petition. I asked him specifically, should the Board of Directors get involved?" He said: "The petition is to the County, not to the Homeowners Association." He advised the Board to not get involved at this time, but in the future and only then if the homeowners wish us to get involved at the time. He also said: "The Road District is a separate legal entity and has nothing to do with the current Board of Directors." The tax comes originally from the County and is given to the Road District and they put the roads in. The attorney said that he doubted the County would give us any priority at all because it’s a Homeowners association, they don’t have enough money for the County let alone us. He said to be very careful of what we do, he is not telling us how to vote, he is trying to advise us on the legalities.

Jane Hamblet: "There is an article in the September 17^th edition of the Newstimes about what is happening to our Road district here in Bayshore. You can access the article on-line at www.newportnewstimes.com. It explains it well and also gives you an idea about how this was a mistake to begin with and asks you not to dissolve the Road district"

Hal Culbertson comments: "Without the Road District you will get very little maintenance and it is going to cost the homeowners a lot more money."

Lots of comments from the audience and the consensus from the audience is no one here today supports the petition to dissolve the Road District.

Michelle Coney: "One thing that you need to consider when you are making your decision. If you want to assume the responsibility of maintaining these roads if you assume the responsibility, you have assumed the liability for anything done wrong."

Appeal for support for Waldport Boosters Club by Mr. Ronn Berry. This appeal is to individual homeowners and not the Board of Directors. Non-profits cannot donate to other non-profit business.

Ten minutes given for open hearing time for homeowner’s comments about concerns, which will be added to last month’s list for Board action when the Board is up to full strength of membership and new officer vacancies are filled.

A question from Carl Koster regarding the letter that was sent to homeowners from Jerry Hofstetter. His question "Is the board still considering, enclosing the pool and inviting the high school students to swim, or the new sewer system? Answer from Max Metcalf: "None of these items were presented to the board prior to the letter being sent out."

Josephine Bregenzer concerned about the ladies room upstairs possible dry rot underneath one of the toilets.

A homeowner from Pine Crest Way questions; "Pine Crest Way is a dead end without any indication or signage, if someone were to drive off at the end would it be our responsibility? It seems to be a hangout for kids and there is lots of debris. Could Bayshore put up some kind of cable to block that area off? Answer from Don Butler: "We cannot, the Bayshore property ends where the road turns and goes down the hill, the property beyond that is an individual’s private property, so we can’t cable it. We have no control over what happens down that road. Agreement that the Board will look into writing a letter to the individual that owns the property at the end of Pine Crest Way, regarding this matter.

Carol Jones: "Are the beach accesses going to open here in the near future?" It would help for when renters come down here so they don’t use private property to go to the beach. Kevin MacPhee answers hopefully by next summer.

Jane Hamblet: "Asks the board to please read the By-laws, the Articles of Incorporation and the C & R’s. Have them with you at all times because that is what we are supposed to be following. As homeowners each and every one of you should have a copy, read them. If you read them and read them word for word you will understand what should be done and the board won’t have to spend an hour and a half talking about a subject that tells you in one paragraph the action that is supposed to be taken."

Ray Schmidt: "About 2 months ago the Chief of the Seal Rock Fire Department was here and he gave some of us on the board here a book on the regulations for the roads. He said that the speed bumps impeded traffic and their response time was cut down considerably here on some different tests runs that they did." Glen Morris responds see page 4, paragraph 2. Also homeowners can go to the website www.iso.com that is the organization that rates response time.

Current Board of Directors are Lloyd Haines — Division 3, Kevin Macphee — Division 7, Mary Lou Morris — Division 1, Dan Norton — Division 6 and Ray Schmidt — Division 6.

Current candidates are as follows; Connie Abercrombie — Division 4, Dennis Gilbert — Division 4, Beth Marin — Division 7, Ted Thurman — Division 7 and Keith Bosley — Division 2. Connie Abercrombie, Keith Bosley and Dennis Gilbert are not in attendance at this meeting.

No nominations from the floor.

Adjournment at 2:35PM.

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