Sunland Division 17 Owners Association
June 10, 2019 2:30 p.m. — 4:30 p.m.
The Gathering Place, 135 Fairway Drive
Call to Order
President Gary Fortmann called the meeting to order at 2:30 p.m.
Verification of Quorum
All Board members were present.
Approval of Minutes
The June 12, 2019 minutes were approved as submitted.
Old Business
Ratification of paint contract
Due to the late submission of the contract and time constraints on painting, the Board reviewed the annual paint contract via email and approved the contract. At the Board meeting, these actions were discussed, and the Board ratified their decision.
Expert legal counsel proposal
Recent events, including changes to Washington State law and some court precedents, have highlighted a need for specialist legal counsel in homeowner association law. The Board moved to secure such counsel, and President Gary Fortmann will recommend a firm to the Board.
Board recruitment — Nominations from the floor
A call for nominations to the Board for election during the Annual Meeting resulted in one apparent volunteer, but they were just stretching to scratch.
Governance Documents Committee
Former member Cindy Rhodes recommended the Board form a Governance Documents Committee, and sent in a very detailed overview of how Sunland North governance is created and amended, and the skill set required in a Governance Documents Committee.
John Lewis had concerns the job was too complex, and at some points might infringe on the responsibilities of the board. Lawrence Charters offered to take a look at it and see if he can make the proposal less daunting.
2020 Reserve Study
Each year, Sunland North is required to do a review of the Reserve Fund and see if it meets the recommended guidelines. The recommended funding level for the Association was 70%, but as of January 1, 2020, Sunland North will be 32% funded. There are reasons many reasons and complexities, including a desire to keep homeowner assessments low. Sunland North did increase the fund by 1% over the past year.
Annual Meeting and Board Election date, documents
Sunland North Division 17 will hold its annual meeting on Wednesday, September 11, 2019, in the Ballroom of the Sunland Golf and Country Club, 109 Hilltop Drive, Sequim, Washington. All members are encouraged to attend.
The Board reviewed a packet of documents that will be mailed to each member address, inviting members to the meeting, providing proxies for those unable to attend, and other documents. The Board approved the packet except for the President’s message and candidate statements, which were not yet final.
New Business
Proposed 2020 Budget
The Board reviewed the 2020 Sunland North Division 17 budget. Budget comments and assumptions:
- The annual assessment for each owner is unchanged from 2019 at $2,840/year ($710/quarter).
- The number of units used to calculate the budget is 139.
- The total budget is $394,700 with Operating Expenses at $284,700 and Reserve Funding at $110,000.
- The Association is required to use a professional to conduct the Annual Reserve Study in 2020 (estimated to cost $2,050 compared to $349 for the Do-It-Yourself Study in 2019).
- Attorney fees are estimated at $25,000 due to the uncertainty at this time of how much longer we will need legal counsel for the 191/201 Cascadia Loop restoration project.
- The annual insurance premium is estimated to be 5% higher than in 2019.
- The landscape contractor is estimated to be 2% higher per unit than in 2019.
- Sunland Water District irrigation water fees will increase since the number of irrigation water meters has increased over 2019.
- Anticipating higher minor maintenance expenses than 2019.
- The number of units scheduled to be painted (one triplex and one duplex) is substantially less than 2019.
- The mulching of all beds in Sunland North (3-year cycle) will occur at an estimated cost of $28,000 with $18,000 coming from Mulch Reserves deposited in 2018 and 2019.
- Reserve contributions to the Reserve Fund are at $70,000 to increase our Reserve Fund balance to a level higher than the current Reserve Study level of 32%.
After discussion, the Board approved the proposed budget. This budget will be voted on for ratification by all members at the September Annual Meeting.
Officer, Committee and Coordinator Reports
President Update — Gary Fortmann
No report.
Secretary Update — Lawrence Charters
Lawrence felt he used up enough time discussing the annual meeting and declined to say more.
Treasurer Update — Jim Jones
Monthly Expense Report: The preliminary June 2019 Expense report shows our total expenses for the month were $19,607 which brings our total expenses for the first half of 2019 to $196,902 which is $4,231 over Budget. The need to purchase an Injunction Bond ($5,350) and the higher than planned legal fees have more than offset the lower than planned cost for Sunland Water District irrigation water and minor maintenance. At the end of June, the Operating Fund balance was $81,154 and our Reserve Fund balance totaled $94,262 which excludes the $250,000 from Reserves used for the cash collateral for the bond.
Fire Trust Fund: Although the restoration of 191/201 Cascadia is underway, there were no progress payments made from the Fire Trust Fund in June although there was $180.31 in interest which resulted in a month-end balance of $511,871. A progress payment of $105,135 was made to Belfor on July 1 and a second progress payment of $107,014 was made on July 3. Following these payments, the Fire Trust Fund balance is $299,722.
First Federal CD: The proceeds ($51,692.44) from the First Federal CD that matured on June 14, 2019, were reinvested in a new 13-month CD at First Federal that is adjusted monthly based on the US Treasury bill rate (current interest rate = 2.39%).
Correspondence: Letters of introduction were sent to two new homeowners since the June Board meeting.
Vice President — John Lewis
Roof tiles are in the process of being installed on the Cascadia restoration units. Siding, windows, doors are in the process of installation.
A court appearance regarding the restoration is scheduled for July 19. Sunland North will request a summary judgment to dismiss the lawsuit.
Board Member at Large — Mike Johnson
Mike thanked volunteers for their work on recent landscaping and maintenance projects.
Insurance Committee — Donna Carson
No report.
Architectural Control Committee — Susan Hamman
Susan reported that, as usual, it has been a busy spring, with 23 requests for exterior changes.
Developed Landscape — Gerry Hatler / Eric Mahnerd
Susan Hamman reported that Division 11 did some tree work behind Mount Baker. A crew will be coming back on July 16. Susan reported that Division 11 and their crew were respectful of the Division 17 property line. They will come back in the fall to “weedwhack” around the property markers. A “danger tree” behind Cascadia Loop was taken down.
Eric said he has been inundated with watering requests and sprinkling problems. Some parts of the irrigation system are 20 years old, and other parts are falling apart because of cheap parts.
Another major problem: inappropriate plants too close to homes. Some of these plants pose structural dangers to home (trees that may fall on homes) and some of these are just nuisance plants.
Eric will draft a detailed message to distribute to members, explaining the problems. He also asked members not to directly contact contractors to do work. Contact Eric first.
As for mulching, it is expensive to purchase mulch, and expensive for delivery of the mulch and the labor to spread it. He is working on pricing and vendors.
He encouraged members to refresh their memories of Appendix B of Rules and Regulations, “Division 17 Landscape Maintenance Guidelines.” https://sunlandnorthownersassociation.com/governing-documents/sunland-division-17-bylaws/
Exterior Maintenance and Inspection — Doug Hale
Annual inspections are done. The contractor is out making repairs as specified in the report.
Open Space — Tom Hamman
Volunteers are still working on greenspace issues. The county is concerned about thistles, which are an invasive weed. The country recommends spraying thistles in the fall.
Communications and Outreach — Leah Prince for Kay Hatler
Leah said the committee is looking for a volunteer to draw a logo for Sunland North, to be used in Sunland North communications. Three welcome visits to new residents were completed recently, with two more awaiting scheduling.
Sunland Water District Update — Al Frank
The recent California earthquakes reminded the Sunland Water District Board that they need to think about an emergency communications system. The district is also still trying to resolve irrigation versus home water use. (Irrigation responsibilities belong to Sunland North; home use is owner responsibility.)
Homeowner Comment Period
There was a question about the Reserve Study funding level, and if the 32% funding level includes the funds currently tied up by the injunction bond. The answer is yes; this money is included in the 32% figure, as it is slated to return to the Reserve Fund.
There was a question on whether there have been any county inspections of the Cascadia Loop restoration. The county has made a number of inspections of work as it proceeds.
Thanks were offered from the floor for the “neat teamwork” shown at Board meetings.
Adjournment
The meeting adjourned at 3:33 p.m.