5/30/02, 7:45 A.M.

Pursuant to the memorandum dated May 21, 2002, the May Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the offices of Oddo Development Co., 8460 Nieman Road, Overland Park, KS.

Board members present were: Bill Charcut, Nick Moos, Jerry Miller, Doug Price, Ralph Lewis, Lee Harris, Ken Riedemann, and Chris Erdley. Also present were: Jim Beverlin, Peter Engelman, Greg DuVall, Mark Levin, Bob Wise, Dennis Watts, and Sam Alpert. (Ward Katz, Brent Blake, Rick Oddo, and Ron Nolan were absent.)

Doug Price called the meeting to order and guests were introduced to the Board.

The minutes of the last meeting on 4/25/02, which had been previously circulated, were reviewed and approved by those present.

Sam Alpert reported on current legislative activities (see attached) including: 

1. KCMO Elevators - A meeting on April 26, resulted in the attached proposal of May 8, 2002, submitted by Barry Archer, Kansas City Codes Administrator to the Missouri Elevator Safety Board. Upon discussion, members of the Board voiced reservations about the ultimate outcome as to whether a better situation for Kansas City owners would be achieved. There was to be further deliberation with regard to the proposal as no word had yet been received from the State Elevator Safety Board. 

2. Overland Park Storm Water Utility – Additional meetings had been held between the HAA and Savage and Browning (tax rep) in ongoing efforts to establish a case for inequitable assessment. Once sufficient data is collected, it is HAA’s intent to ask The Overland Park City Council to re-open discussions on the issue. OP City Councilman Neil Sader had previously indicated a willingness to entertain this request. Simultaneously Savage and Browning is advancing a KS Board of Tax Appeals Case, which if successful, would establish that net operating incomes (upon which property valuations are based) are significantly reduced as a result of the current assessment.

3. Johnson County Waste Water- Peter Engleman reported that he had attended a work session of the Johnson County Commission on May 23rd at which the county engineer submitted his proposal to change the basis of assessment. Sam Alpert reported that a similar presentation to the HAA on the proposed shift to water consumption was scheduled to take place at the Johnson County Waste Water District offices at 7311 W. 130th, Overland Park, KS. on Tuesday, June 4th at 3:00 p.m. It was suggested that Johnson County Commissioner Anna Beth Surbaugh be invited to meet with the HAA.

4. Johnson County Property Taxes- It was reported that some members of the Johnson County Commission may be leaning toward an increase in the property tax mill levy to help fund acquisition of park land. (This would be another issue to take up with Anna Beth Surbaugh).

5. Failed KS. Water Sub-Metering (HB-2999)- Failing to advance out of the Senate Utilities Committee, this year’s effort to enact a state water sub-metering provision in Kansas was discouraged. It is anticipated that hiring a lobbyist to pursue the issue next session may be in everyone’s best interest throughout the state. Clark Lindstrom with the Peterson Companies in Wichita will request a proposal be submitted by Jonathan Small of Topeka. Simultaneously, the HAA will encourage Carla Stovall, Kansas Attorney General, to write an opinion, which would reject the Kansas Corporation Commission’s interpretation of what constitutes the creation of a “public utility”.

6. MO HB 1403- Limits on Retainage- After significant modification in the Senate, the bill passed. While not ideal, the bill provides for significant line item withholding where work has not been completed to satisfaction at the time of “substantial completion”.

Chris Erdley reported that he felt that the position the real estate community had taken on increased fees for KCMO street closings sent an important message to city officials. While not yet resolved, regardless of the final outcome, various participating real estate interests have had an impact on the process.

Sam Alpert reported that MO telecommunications “forced access” and high-rise sprinkler retrofit measures failed directly as the result of an abundance of communications received by the MO Senate from concerned owners throughout the state.

Sam Alpert reported that a meeting had been scheduled with the HUD Regional Director for later that morning, but that it was to be rescheduled. The purpose of the meeting will be to discuss the apparent increased incidence of frivolous fair housing claims for which premature settlement demands are being made.

Bob Wise reported that increased court filing fees will be an issue to continue to monitor.

Previously, Bob Wise had requested the HAA entertain contributing $1,000.00 to fund a study by Dr. Robb at the University of Missouri at Columbia on alternatives to property taxation. Doug Price had hoped to bring the issue to a vote of the HAA Board at this meeting, but a number of members left before this matter was considered and a quorum was not present to approve the contribution. The issue will be considered early on the June 27th meeting agenda.

Bob Wise advised that he was selling dinner reservations for a $500.00/plate fund raiser dinner on June 11th for Jim Talent at which President Bush will speak.

The next regularly scheduled meeting of the HAA Board of Directors is to be held on Thursday, June 27, 2002, 7:45 a.m. at the offices of Oddo Development Co., 8460 Nieman Road, Overland Park, KS.

There being no further business to come before the regular Board of Directors meeting , guests departed and the remaining Board members went into closed session at approximately 9:45 a.m.