Sunland Division 17 Owners Association
December 11, 2019, 2:30 p.m. – 4:30 p.m
Due to a scheduling error by Sunland Owners Association (SLOA), the meeting was moved to the ballroom of the Sunland Golf and Country Club, 109 Hilltop Drive, Sequim, WA. We thank the country club for their assistance in this matter.
Call to Order
The President called the meeting to order at 2:30 p.m.
Verification of Quorum
All Board members were present.
Approval of Minutes
November 13, 2019, Board minutes were approved as submitted.
Old Business
Clallam Conservation District irrigation project update
Mike Johnson reported on the piping and other materials unloaded, without Sunland’s permission, near the Woodcock Road entrance to Sunland North. These materials are associated with the Evans Road Piping Project. This project, undertaken by the Clallam Conservation District and the Sequim Prairie Tri-Irrigation Association, will convert the open irrigation ditch running from Evans Road and extending east through Sunland North, to a covered, pipelined irrigation system. The Sequim Prairie Tri-Irrigation Association predates Sunland North, dating back in some form to the 1920s. The Irrigation Association has an easement for the irrigation system, and among other things contends the Sunland North developer changed the route of the irrigation ditch at some point, without the Irrigation Association’s permission.
The Clallam Conservation District issued a bid for the construction work in September 2019, and shortly after this the Sunland North Board became aware of the project. Mike attended a pre-construction meeting in Port Angeles and exchanged information about the project via email with several of the project managers. The Irrigation Association was respectful of Sunland North’s concerns, but not always in agreement with how to handle these concerns.
The Irrigation Association has a “prescriptive easement” for the irrigation ditch, and though Sunland North was not involved in the planning for the work, nor did Sunland North approve of storing materials on Sunland North property, the HOA does not have much leverage to ask for a change of plans. The HOA’s attorney agrees with that assessment.
Sunland North asked the contractor, Nordland Construction, for a copy of their certificate of liability, and it does show Sunland North as an “additional insured.” While Sunland North did not have a say in the project planning, Mike did ask for and reviewed the project specs and design. After noting the contractor was cutting down and burning trees on farm property adjacent to Sunland North, the HOA notified the contractor that they could not burn any material within Sunland North.
As tree roots can cause pipeline leaks and blockages, the Irrigation Association will remove cottonwood trees along the path of the pipeline. Mike asked the Irrigation Association to avoid damaging any HOA trees, not in the pipeline path, and Clallam Conservation District manager Joe Holtrop offered to replace the cottonwood trees with a variety that will not compromise the pipeline or filtration system. They also offered to add Douglas Fir trees to screen Woodcock Road from Sunland North view and replant some native brush.
Mike met with the Clallam Conservation District representative, the Irrigation Association representative, and the contractor on Monday (December 9). The contractor intends to complete the project by March 2020, weather permitting. Sunland North’s portion of the pipeline will be at the end of the project.
2020 Landscape Maintenance contract
At the request of the board, Mike Johnson contacted the landscaping contractor seeking a possible discount on the proposed work for 2020. The contractor sent a letter with a counteroffer, proposing to split the proposed rate increases across three years. The contractor proposed a 10% increase over 2019 for 2020, and a 15% increase over 2019 for 2021 and 2022. The contractor proposed the increases due to increased regulatory and labor costs, and due to coverage of additional units, and the increased complexity of landscaping in the Mt. Baker area.
While the Board did solicit proposals from other contractors, there are not many contractors capable of fulfilling Sunland North’s stated needs. The alternatives are: change what is being covered by HOA landscaping maintenance, do more maintenance by volunteers, or accept the contractor’s proposal.
Questions from the floor: what about spreading bark? This is a separate issue, with its own line item in the budget, and is already planned. What if shrubs are damaged? Such matters would go through Landscape Maintenance. In the past, if the landscaper is at fault, the landscaper has made amends.
The Board agreed to accept a three-year landscape contract as proposed in landscaper’s letter of Nov. 20, once a contract is presented for signing.
New Business
Year-end Reserve Fund allocation
Susan Hamman reported that the original plan was to place $50,000 in the Reserve Fund at the end of the year. Because of increased expenses in 2019, that will not be possible. Susan projected that $34,000 will be available for transfer to the Reserve Fund ($9,000 into mulch project reserves, $25,000 into undesignated reserves) .
Requested and required changes to website, forms, flyers, signs, etc.
Lawrence Charters requested that Board members and committee chairs provide, as soon as possible, any and all requested changes to the website, as well as forms, flyers, Welcome packet materials, and other Sunland North publications. Our goal is to make our publications as easy as possible for owners to find the information they need. For example, there have been instances in which information on the Sunland North site seemed to be in conflict with the SLOA site. We can try to keep the information we post accurate, but we can’t control when other sites, such as SLOA, update their pages.
Susan Hamman suggested we include information in the Welcome packet on insurance. The Insurance Committee will be asked for appropriate text.
Officer, Committee and Coordinator Reports
President Update — Gary Fortmann
Gary expressed appreciation for member attendance at meetings. He also encouraged members to attend SLOA meetings to make sure Division 17 interests are heard.
Secretary Update — Lawrence Charters
No report.
Treasurer Update — Susan Hamman
Monthly Expense Report: The preliminary November 2019 monthly expense report shows our total expenses for the month were $10,538, which brings our total expenses for the first eleven months to $333,683. We are $20,534 over budget year to date, due to legal fees. At the end of November, the Operating Fund balance was $74,332 and the Reserve Fund balance totaled $345,713.
October Monthly Expense Report: After reviewing the Profit & Loss Statement from Sequim Tax Service, an $11 error was found and corrected on the October Monthly Expense Report, which was then re-posted to the website.
Fire Trust Fund: There was one payment made to Belfor from the Fire Trust Fund in November in the amount of $99,624.93. The fund earned $33.66 in interest in the month of November. The Fire Trust Fund balance at the end of October was $19,213.38.
Reserve Contributions 2019: At the end of December, approximately $49,000 will remain in the operating account (checking and money market combined). $9,000 will go into the mulch project for 2019, leaving $40,000 in the operating fund. $15,000 will remain in checking and the money market operating fund at year end, with approximately $25,000 going into undesignated reserves.
$50,000 had been projected to go into the Reserves.
Vice President — John Lewis
Regarding the Cascadia Loop fire restoration, John reported we can see light at the end of the tunnel. The contractor is working on interior finishing. Painting will start on the interior December 12. Some plumbing and flooring remain to be done.
John expressed a desire for the HOA to do some long-range planning. He would like us to look into the future and see what we can do to plan for community resiliency, both in terms of our funding and what we do with those funds. He suggested three target areas: look at our governance documents and make appropriate updates; look at our facilities and infrastructure (roof replacement, irrigation system, etc.); and look at our finances (see if current and projected income matches up with current and projected expenses).
Board Member at Large — Mike Johnson
No report.
Architectural Control Committee — Richard Helmensteine
There were two applications for upgrades from old mailboxes to locking mailboxes, at owner expense, from design approved by Division 17.
One comment from the floor: some of the safety lights are staying on continuously, even in the day. The External Maintenance Committee will investigate and see if this is due to seasonal issues (dim winter sun) or malfunction.
Insurance Committee — Donna Carson
No report.
Developed Landscape — Gerry Hatler / Eric Mahnerd
No report.
Exterior Maintenance and Inspection — Doug Hale
Some minor repairs were made to fencing and a few other routine things.
Open Space — Tom Hamman
No report.
Communications and Outreach — Kay Hatler
Kay will be sending out a request for information to include in the quarterly newsletter. Leah made one new Welcome visit.
From the floor: there was a request to include a note that the useful life of a smoke detector is 10 years. Owners should give some thought to replacing them.
Susan requested that anyone with Division 17 records should please give them to Susan so they can be archived.
Sunland Water District Update — Al Frank
Gary Fortmann reported that Al Frank is no longer an observer, but a district water commissioner.
Homeowner Comment Period
Should the realtor’s signs be at the entrance to Sunland North? Sunland North rules and regulations permit one realtor’s sign fronting the road on the property being sold. Signs are not authorized at the entrance.
Because of speeding on Blakely Drive, would it be possible to get a radar speed sign for Sunland North? SLOA has a couple of these signs, and we will request one be moved to Blakely. The signs are expensive (they start at around $2,500).
Adjournment
The President adjourned the meeting at 3:38 p.m.