06/24/04, 7:45 A.M.

Pursuant to the e-mail notification dated June 14, 2004, the June 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: Doug Price, Lee Harris, Rick Oddo, Chris Erdley, Bill Charcut, Jim Beverlin, and Ralph Lewis. Also present were Jim Bowers and Sam Alpert. (Jerry Miller, Mike Cassin, Ken Riedemann; Dennis Watts, Ward Katz, Jim Adams, and Ron Nolan were absent.)

Doug Price called the meeting to order.

The minutes of the last meeting on 05/27/04, which had been previously circulated, were reviewed and approved by those present.

JACKSON COUNTY COURTS- Jim Bowers reported that a meeting with the Jackson County Courts Administrator and the Presiding Judge had been scheduled for June 30th. A letter outlining the core issues to be addressed at the meeting was circulated and reviewed by those present.

KCMO FIRE INSPECTION FEE SCHEDULE- Sam Alpert reported that the parties had entered into an interim settlement agreement, which effectively temporarily deferred a preliminary injunction hearing, placed a moratorium on the collection of back fee assessments, and enabled the introduction of a remedial city ordinance for City Council consideration. If the city were to adopt the ordinance as drafted, all multifamily properties and all office buildings (designed for at least 90% office use) would be exempted from the inspection fee assessment. The ordinance was to be introduced in the full City Council session on June 24th.

KCMO BUSINESS LICENSE- Sam Alpert reported that he had recently received a number of inquiries regarding the KCMO business license fee assessments being applied for the first time to "rent revenues". While management companies had for many years paid the "occupation" license fee based upon management fee income, owners of properties are now being assessed based upon gross rents, which are being viewed by KCMO as equivalent to "sales". Jim Bowers took issue with the notion that investment or passive income be treated the same as retail sales. It was suggested that the issue be taken up by a broader coalition of building owners who routinely collect rents. It was also recommended that a tax rep firm run some calculations reflecting the impact of the fee on the assessed property values. Sam Alpert will attempt to get a meeting with the KCMO City Manager, Wayne Cauthen and a few of our owners to raise concerns about this and other city funding initiatives aimed at multifamily properties.

PENDING KCMO ADOPTION OF 2003 UPDATED I-CODES- Sam Alpert reported that the codes technical review committee had met twice, but that little had been accomplished in finding common ground with the local plumbers, who fear the loss of significant jurisdiction should the I-Codes be adopted in their entirety. Those present were encouraged to continue contacting individual City Council members to urge their support for the I-Codes adoption.

JOHNSON COUNTY WASTE WATER- As of the May meeting, Sam Alpert had reported that there was movement on the part of wastewater staff and the county's consultant to establish some kind of rate classification that is more indicative of the service provided to multifamily properties. Subsequently, Doug Price and Sam Alpert had met with both the staff and members of the JOCO BOCC. After discussion, it was determined that the HAA should press the Wastewater District for a retroactive settlement of the disputed delinquent accounts as soon as possible.

KCMO STORM WATER FEES- Sam Alpert reported that he had made an inquiry in the Mayor's "Service First" forum with respect to the calculation basis of the regular storm water fee on periodic water billings. The KCMO Water Department staff responded that the fee was based on the respective property's impervious surface area (runoff) units of 500 sq. ft. billed at $.50 / 500 sq. ft. unit ($1.00 per 1,000 sq. ft.) per billing cycle. The impervious area units for each property are measured from scaled and color shaded aerial maps of the entire KCMO metro area. To the extent an owner disputes the city's impervious surface calculation, the staff will consider adjusting their calculations based on an owner's accurately measured (on the ground) representation of actual impervious surface area (all hard surfaces including parking lots, private streets, sidewalks, and roof area).

2004 / 2005 HAA SLATE of OFFICERS and DIRECTORS OFFICIAL BALLOT- Sam Alpert reported that with over 20,300 votes received in favor of the slate of officers and directors as submitted, the following officers and directors will be seated effective July 1, 2004:

HEARTLAND APARTMENT ASSOCIATION
BOARD OF DIRECTORS
2004/2005

OFFICERS-

President … Douglas M. Price
Price Development Co.
1st Vice President … Ward A. Katz
Katz Residential Services, Inc.
Vice President … Chris Erdley
Tower Properties
Secretary … Rick Oddo
Oddo Development Co.
Treasurer … Kenneth L. Riedemann
The Peterson Companies

DIRECTORS-
Jim Adams, Maxus Properties
Jim Beverlin, Cohen-Esrey Real Estate Services, Inc.
Michael Cassin, Trinity Property Management
Bill P. Charcut, The Neighborhood Group
Peter Engelman, Nolan Real Estate Services, Inc.
R. Lee Harris, Cohen-Esrey Real Estate Services, Inc.
Ralph E. Lewis II, Attorney at Law (Vendor Associate Advisory Member)
Jerry Miller, Prudential Signature Real Estate Services
Dennis Watts, Aimco

VOTER REGISTRATION- Sam Alpert reemphasized the importance of continuing to encourage and track universal voter registration on all member properties. It is important that the HAA be able to quantify the effectiveness of the voter registration initiative prior to the November general election.

The next meeting of the HAA Board of Directors is tentatively scheduled to be held on Thursday, July 29, 2004, 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 Board of Directors, the meeting was adjourned at approximately 9:30 a.m.