10/28/04, 7:45 A.M.

Pursuant to the e-mail notification dated October 18, 2004, the October Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the HAA offices, 2405 Grand, Suite 106, Kansas City, MO 64108.

Board members present were: Doug Price, Lee Harris, Bill Charcut, Rick Oddo, and Chris Erdley. Also present was Sam Alpert. (Jerry Miller, Mike Cassin, Ken Riedemann, Dennis Watts, Ward Katz, and Ron Nolan were absent.)

Doug Price called the meeting to order.

The minutes of the last meeting on 09/30/04, which had been previously circulated, were reviewed and approved by those present.

Those present reviewed and approved formal legal representation letters of engagement relative to the Jackson County Courts and the KCMO business license issues submitted by Jim Bowers.

KCMO FIRE INSPECTION FEE SCHEDULE- Sam Alpert reported that there was no word as yet on the Jackson County Circuit Court hearing of September 10th to consider the issuance of an injunction to prevent KCMO from continuing to collect "certificate of compliance" fees while the entire lawsuit is being fully adjudicated . As reported previously, Judge Del Muro had taken the matter under advisement and to date there had been no decision on the injunction.

KCMO BUSINESS LICENSE- Sam Alpert reported that Jim Bowers had met with Assistant City Manager John Franklin and Assistant City Attorney Bill Geary to discuss updating the antiquated ordinance from which the city is taking its authority to assess business license fees on all apartment owners. While the meeting didn't result in consensus to revamp the ordinance, Bowers set out the owners' coalition position that in the absence of a satisfactory resolution, a lawsuit challenging the appropriate application of the statute would be filed.

JOHNSON COUNTY WASTE WATER- Recounting recent developments surrounding talks with JCW staff and the JOCO BOCC, Sam Alpert and Doug Price lead a discussion on HAA's ultimate goal in seeking a cost effective final resolution. Those present were reminded that it would be HAA's burden to refute the county's rate setting methodology if a legal challenge was mounted. This would necessarily entail the engagement of a nationally renowned civil engineering consultant to perform an in-depth system-wide analysis, which would clearly demonstrate the current lack of equity in assessing multifamily properties relative to their respective utilization of waste water services and facilities. If in the end there is still an absence of data that clearly demonstrates a disproportionate burden being borne by multifamily properties as the result of the county's cost allocation methodology, the HAA would be left with a burden to prove the county's general mismanagement and specific wasteful practices. Those present agreed it would be beneficial to enumerate the HAA's claims of specific instances of mismanagement and potential malfeasance, and to then obtain a legal opinion as to the merits and cost benefit of pursuing a legal remedy.

OP STORM WATER ASSESSMENT- Sam Alpert distributed a letter that Jim Bowers had submitted on behalf of the HAA to the city of Overland Park (OP). The letter essentially put the city on notice that while the HAA has no current plans to persuade OP to roll back existing fees to a more equitable level, if the city were to decide to raise these fees, it would be HAA's position to take whatever legal steps necessary to prevent that from happening.

Sam Alpert distributed copies of the proposed 2005 Operating Budget to be reviewed for final approval at the year end Board of Directors Meeting to be held on December 2, 2004.

It was agreed that it would be beneficial to explore the possibility of a cooperative purchasing arrangement. Lists of most commonly purchased goods, services, and volume suppliers were to assembled and discussed at the next Board meeting.

Alternative meeting venues were to be considered as a means of encouraging better attendance at the monthly Board meetings.

The next and last regularly scheduled meeting of 2004 (November / December holiday session) of the HAA Board of Directors is tentatively scheduled to be held on Thursday, December 2, 2004, 8:00 a.m. at the HAA offices, 2405 Grand, Suite 106, KCMO.

There being no further business to come before the Board of Directors, the meeting was adjourned at approximately 9:30 a.m.