12/02/03, 8:00 A.M.

Pursuant to the e-mail notification dated November 16, 2004, the November / December 2004 year end 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, Chris Erdley, Dennis
Watts, Ward Katz, Ken Riedemann, Jim Beverlin, and Jim Adams . Also present were Jim Bowers, Jim Birt, and Sam Alpert. (Jerry Miller, Rick Oddo, Mike Cassin, , and Ron Nolan were absent.)

Sam Alpert called the meeting to order.

The minutes of the last meeting on 10/28/04, which had been previously circulated, were reviewed and approved by those present.

KCMO FIRE INSPECTION FEE SCHEDULE- Sam Alpert reported that Judge Del Muro had denied our motion for a preliminary injunction to prevent KCMO from collecting fire inspection fees while the case is being adjudicated. The judge qualified her decision stating that she believes the plaintiff (BOMA / HAA) has demonstrated it has an "adequate remedy at law" in addressing the constitutionality of the city ordinance in question, and therefore the plaintiff would not qualify for injunctive relief, which is granted only when such remedy is not available. The decision is seen by our attorneys to be extremely favorable, and efforts by them to get a response from the City Attorney's office were underway, while they proceeded to secure an early trial date.

KCMO BUSINESS LICENSE- As reported at the October meeting, 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. As of this board meeting date, there had been no further response from the city regarding their position

JACKSON COUNTY COURTS- Jim Bowers reported that due to the lack of various attorneys' "post judgment" involvement in the eviction process, it would be necessary to identify an owner, who is experiencing undue delay in regaining possession of a dwelling unit, for purposes of bringing a test case. In turn, a suit could be filed to cause judgments to be executed in conformance with the state statute.

JOHNSON COUNTY WASTE WATER- Sam Alpert sited four primary objectives he recommended the HAA continue to seek in negotiations with the JCW:
1. Discounted annual billing option
2. Capital and O&M on one bill (eliminate tax line item)
3. January / February AWWU
4. Amnesty settlement of delinquent accounts
Talks with the JOCO BOCC and the JCW staff will be ongoing in this regard.

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.

PURCHASING COOP- As reported last month, it was agreed that it would be beneficial to explore the possibility of a cooperative purchasing arrangement. Jim Bowers spoke to a number of concerns, targeting the avoidance of restrictive trade practices. After considerable discussion, it was agreed that for the concept to be viable, a critical mass of properties would need to be assembled and that a periodic competitive bid process would need to be adopted. Assuming concurrence from the AAKC (Board), it was agreed that to begin with, establishing a limited purchasing cooperative could be initiated through soliciting bids on just appliances. Jim Beverlin agreed to coordinate the effort.

2005 HAA OPERATING BUDGET- Sam Alpert had distributed copies of the proposed 2005 Operating Budget to be reviewed for final approval. The budget was approved as submitted with the exception that "Contract Services" provided by Sam Alpert would be compensated by an amount equal to 106% of the amount paid in 2004 ($45,400 paid in 2004; $48,124 to be paid in 2005). In addition, an incentive to increase membership revenues will be paid in an amount equal to 25% of all 2005 membership revenues collected in excess of the $65,900 collected for 2004 membership dues.

The next regularly scheduled meeting of the HAA Board of Directors is scheduled to be held on Thursday, January 27, 2005, 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.