Dear Kachess Community Members,                                                                                                   

As you know, the Kachess Board of Directors passed a 10 percent annual assessment increase for the current fiscal year.  This action was taken at the meeting immediately after the failure of the proposed additional assessment to begin funding a �Reserve Maintenance Fund� for the purpose of replacing depreciating community assets and keeping them in working order.  We, on the board, recognize this would be an excellent time to communicate our concerns and the rationale behind this action.

First and foremost, we take our fiduciary responsibility to the community very seriously.  We have been entrusted to conduct the affairs of the community consistent with the objectives and purposes set forth in the Articles of Incorporation, The Declaration of Covenants, Conditions and Restrictions and By-Laws and pursuant to the laws of the State of Washington.

Let us begin by saying this; We, as Kachess Board members, have the same concerns as the rest of the community.  As community members, we are affected equally by annual assessment increases or lack thereof.  Our asset values and quality of life are equally impacted if we cannot enforce the CC&R�s.  If the water system fails and we must pass an emergency assessment, we pay the same dollars.  We all have the same contingent liabilities relating to community assets. 

Let me give one example that is fairly recent that sparked controversy within the community. This example, like so many others has a reasonable explanation.

As most of you know, the Board passed a fine schedule to be imposed on those who do not adhere to the CC&R�s.  While many of you support our action, we have heard some complaints that the fine schedule was unnecessary and unfair. 

This is why we took action.  There is legal precedent that made it imperative that the Board draw up a fine schedule to defend the community CC&R�s.  We cannot act on your behalf effectively after a breach of the CC&R�s unless we have monetary damages, as provided by the CC&R�s to insure that they are applied uniformly.  Our fines would be unenforceable in the courts had they not been formally defined and adopted.  Without the ability to levy fines, we cannot fulfill our obligations to you, the community, by enforcing our CC&R�s.  We do not pick and choose which parts of the By-Laws or CC&R�s we uphold.  It is in all of our long-term best interests to strictly uphold the CC&R�s and By-Laws to maintain the value of the homes in the community and the common areas and keep our community a beautiful and inspiring place.

The next topic is the 10% annual assessment increase. As most of you know, we have experienced rapid growth in our community over the past few years.  Yet, we have made no plans to replace or repair community assets, such as the water system or roads to name just two areas of concern.  We felt it to be only prudent to begin to build a small cushion to anticipate the depreciation and repair of our capital assets.

To increase communication we are installing a bulletin board outside the clubhouse.  Our intension is to post information vital to the community on the board.  This may include meeting dates and locations, notices on current issues or announcements, etc.  There will also be a �For Sale� section on the board.  Please send your entries to me at the address below on a 3x5 card with the date of the entry written on the card.  All entries will be posted for 30 days on a first come, first served basis.

As community liaison, I would like to encourage each of you to contact me with any questions, concerns or suggestions you may have.  I would be happy to talk to each of you and fill you in on what is going on in the community, Board concerns or any areas of interest.  There is no reason for misunderstandings or misinformation.  If you have concerns, please call me at 425.392.2424.  Please keep in mind that the Board meets regularly.  These meetings are open to community members and we encourage your attendance.

Regards,

Morris B. Hanan
Kachess Community Laison