Division 17 Board Meeting
May 8, 2:30 p.m. to 4:30 p.m
The Gathering Place
Call to Order
President Gerry Hatler called the meeting to order at 2:30 p.m.
Verification of Quorum
Board members present were President Gerry Hatler, Secretary Lawrence Charters, and Treasurer Betty Gwaltney. Absent were Member-at-Large Warren Husman and Vice President Mark Anderson.
Approval of Agenda
Gerry asked for approval of the Board agenda. Betty made the motion, seconded by Lawrence, and all approved.
Review and Approval of April 2024 Minutes
Gerry asked for the approval of the April 2024 board minutes. Lawrence made the motion, seconded by Betty, and all approved.
Old Business
Revision of Covenants, Conditions and Restrictions
Lawrence spoke about the ongoing process to update the CC&Rs. The original set was developed in 1999 by the Sunland North builder. It appears to have been copied and pasted from two other HOA divisions in Sunland. It has been revised over the years, but there were still errors (numbering, clarity, etc.). After a formal legal review, Lawrence has been working with Barbara Brooner, Betty Gwaltney, and Susan Hamman to finalize the new version draft. The new version will be shorter, all references to the developer removed, and generally make the CC&Rs easier to understand. The unit owners must approve the changes. The CC&Rs reflect the association’s obligations to the unit owners and the obligations of the unit owners to the association. When the draft is finalized by the review team, Lawrence will notify the unit owners to review the draft on the HOA website. Betty recommended a short summary of bullets of the changes to accompany the review. Gerry asked if it has to be approved by 60% of the unit owners. The new Washington state law regarding HOAs may change that percentage.
Gerry asked about Section 7.2, who is responsible for skylights. Glass has to be repaired by the unit owner but maintenance of the skylights is the HOAs responsibility.
Section 9.4 Signs. Previously, no signs were allowed except “for sale” and political signs within one month of an election. New state HOA law limits HOAs from preventing signage. Betty recommends deleting that section because it is in the Rules and Regulations.
17.3 Regarding the deductible credit, owners are responsible for the full deductible. Any deductible credits accrued by the association remain with the association.
20.2 Reserve study. Two years of self-study by the HOA, a third year by accredited outside professionals.
Limited common area definition is being clarified in this CC&R revision.
Back Flow Valves Update
No update is available.
New Business
SLOA change to Garage Sale provisions
SLOA recently relaxed its stance on garage sales, allowing one garage sale per year per owner. Previously, a homeowner could only have a garage sale after moving in or out of Sunland. The Board discussed the pros and cons of this and decided to leave the Division 17 requirements “as is” with moving in or out of Sunland North. The narrow streets in the division being blocked by garage sale traffic and damage done to sprinkler heads by outside cars parking on the lawns are the main reasons for this decision.
Certificate of Deposit Renewal
Betty stated that one CD matures on May 16th at Sound Bank; $105K. Gerry found a First Security 21-month CD at 5.07%. Our best option is to cash out the Sound Bank and purchase a 21-month CD at First Security and then move $72 K from First Security MM to Sound Bank MM. The HOA has seven CDs generating a monthly income of $400-500. Gerry asked for approval for a new 21-month CD, Lawrence moved, Betty seconded it, all approved.
The Association currently has $700K in CDs, and $188,000 in money markets. The HOA has $300K maturing in CDs between now and November 2024. Gerry asked if we should take advantage of moving more money into CDs. Betty said our account at US Bank has $75K in a money market fund. He recommended taking $50K to move into a CD. Lawrence so moved, Gerry seconded, all approved.
Records for Disposition Request
Susan Hamman reviewed the filing cabinet contents against the Records Retention Schedule; several more files were slated for disposition. Betty moved for disposal, Gerry seconded it, all approved.
2024 Annual Membership Meeting Planning and Discussion
The annual meeting is in September. Lawrence will follow up on the Golf Club ballroom reservation. Three board members’ terms are expiring: Betty Gwaltney, Lawrence Charters, and Warren Husman.
Nominations Committee – Susan Hamman will help identify unit owners who may be willing to serve on the Board.
After this year, the annual meeting will be moved to the fourth quarter of the year. There is too much to be done in the summer with budget planning, the reserve study, and the financial review to have everything ready by a September meeting. However, the By-laws have to be changed first to reflect the new annual meeting timing.
Issues to be reviewed and ratified at this year’s annual meeting are the revised CC&Rs, the financial review, and the approval of the 2025 budget.
Betty came across a software tool to assess the financial health of the HOA, a visualization tool, and will order it.
Officers Reports
President – Gerry Hatler
A CERT representative was supposed to be at the April meeting for a presentation but that is now rescheduled for June.
Vice-president – Mark Anderson
Nothing reported.
Secretary – Lawrence Charters
Lawrence stated that volunteer teams are reviewing the perimeter split rail fence for repairs.
There have been a number of reports of dogs off-leash and dog droppings not being picked up. Unit owners are reminded that all parts of Sunland North, including the natural habitat area, require pets to be on a leash and droppings to be picked up. There are fines involved for off-leash dogs and failure to pick up droppings!
Treasurer report – Betty Gwaltney
- Monthly Expense Report:
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- Operating expenses for April 2024 $15,399 and total year to date operating expenses $89,580. This is $37,487 OVER Budget year to date for Operational expenses.
- Interest income YTD: $10,531
2) Total Funds on hand:
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- Operating Accounts $217,043
- Reserve Accounts $902,401
TOTAL $ 1,119,444
3) CD Activity
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- 12-month CD at Sound Com Bk matures 05/16/2024
- Recommendation:
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- Depositing final CD balance to Sound Checking
- Purchasing 21-month CD with $105K at 1st Security with 5.07% yield
- iii. Transferring $72,000 from 1st Security Savings to Sound MM account (maintains min balance to avoid fees ($1,500) and keeps total balance at 1st Security less than $250K
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4) Reserve Study – to be submitted in the next two weeks.
5) Taxes – Have initiated quarterly payments of $2000 for income tax
6) Financial Review: Requested data submitted to HOA CPA
Member at Large – Warren Husman
Nothing reported.
Committee Reports
Architectural Control Committee – Eric Mahnerd
Nothing reported.
Insurance – Susan Hamman
The HOA received notification that the Community Association Underwriters (CAU) 2024 – 2025 insurance was renewed on Monday, May 6, 2024. The deductibles were raised from $5,000 to $10,000. Another change was raising the Ordinance and Law Demolition and Ordinance and Law Increased Cost of Construction from $500,000 to $750,000 to reflect the increased values of Sunland North units.
With excess crime, volunteer accident, and commercial excess liability coverage added to the basic premium, the total premium is $103,523, $1,977 under the budgeted amount.
As soon as the Certificate of Insurance is received from CAU, it will be posted on the division website and a notification sent to unit owners.
Developed Landscape – Tom Steffen
Our landscaping crew is making the most of warmer and dryer days in Division 17.
Irrigation—
The process of reactivating our extensive irrigation systems has begun. This process takes several weeks to activate, repair, and replace, as well as adjust spray patterns. In keeping with the Sunland Water District’s invitation to conserve water, we will closely monitor usage at 50% and increase only when necessary during hot/dry summer months. Owners should continue to report irrigation issues by submitting a maintenance request form via the Landscaping portal available on Div 17’s website.
Plants and Bushes—
As a result of yet another cold winter, we lost most of the escallonia hedges in the over two dozen utility islands in our HOA. Discussions with our landscape contractor are underway and a plan is being developed. Another division in Sunland recently removed a hedge in a utility island with success and little or no damage. I recommend that we invite our landscape contractor, under a separate contract, with estimated time and equipment costs, to begin the process of removing all dead plants in our islands, beginning with one of our larger islands. This will give us an idea of the demolition costs involved per island. This might be a three-month-long project. Under a separate contract, we could ask our contractor to replant and apply mulch around the utility boxes with hardy plants.
Approximately 10 owners have reported dead plants around their locations. We are in the process of developing a list of locations and will soon be removing the dead plants, some by our landscaping crew and some by volunteers. Not all dead plants will be replaced, since some locations are overcrowded with plants. Owners should continue to report landscaping issues by submitting a maintenance request form via the Landscaping portal available on Div 17’s website.
Lending a Hand—
Some owners enjoy tidying up the landscaping beds around their locations, which is not only good therapy for the soul but also helps keep our HOA looking great. Small amounts of clippings can be placed on a driveway next to the street on Wednesdays for our landscaping crew to pick up (hopefully) by the weekend. Best to bag leaves because of windy conditions. Never put out food scraps, trash, or piles of dirt.
Landscaper Report on Dead Plants –
Dead plants.
Mt Baker backs 78.
Fronts 13
Island front and backs 44 (doesn’t include 6 half-dead large ceanothus)
Cascadia outer loop backs and sides 94
Cascadia loop fronts 32
North Blakely 30
Big island on Mendel 62
Small island 40
403 plants total
Exterior Maintenance – Mike Johnson.
Gerry stated that some minor trenching was done at 270 Blakely to alleviate standing water. A ground bee population was reported near 290 Mt. Baker. Because the bees were in the right of way (not next to the unit), the HOA reimbursed the owner for the bee removal. 61 Mendel had a heat pump with wet spots around it that did not appear to be coming from irrigation. Needs further investigation.
Natural Habitat – Sarah Miller
In early April, the HOA received notice from the Clallam County Noxious Weed Control that the property had more poison hemlock infestation. Tom Hamman, Dianna Burns, Gerry Busch, and Greg King have been actively spraying the hemlock to kill it.
Several small Douglas fir trees were transplanted to the NE section of Mt. Baker that faces Woodcock Road. Sarah Miller, John Meyer, Elaine Brown, Rindy Hainstock, Susan, and Tom Hamman assisted in the transplanting. Rindy Hainstock will water the trees until they get established.
Sarah extends thanks also to Barry Burns for his once-a-month trash pickup along the HOA’s property on Sequim Dungeness and Woodcock.
Welcome Committee – Kay Hatler
Gerry reported for Kay that four units are under contract; welcome visits will be arranged for those new owners.
Communications and Outreach – Lawrence Charters and Kathy Gross
Nothing to report.
Open Comment Period
Gerry opened the meeting for unit owner comments. Colette Cavaleri asked about getting skylights cleaned since unit owners and unauthorized roof cleaners were not allowed on the roofs. With a roof cleaning program in place, she requested that skylights be cleaned at the same time.
Mary Kubas-Meyer again requested a resolution to the drainage water problem along northeast Cascadia. Two small trenches had been dug along the road but she stated that it would not resolve the issue.
Adjournment
With no further comments from the attendees, Gerry adjourned the meeting at 3:53 p.m.
Submitted by Susan Hamman for Secretary Lawrence Charters