SUNLAND DIVISION 17 OWNERS ASSOCIATION
Board of Directors Monthly Meeting
Wednesday, April 11, 2018
Location: Sunland’s “The Gathering Place,” Ground Floor Meeting Room
Call to Order
The April meeting of the Sunland Division 17 Owners Association Board of Directors was called to order by President Gary Fortmann at 2:30 p.m. and confirmed a quorum with all members of the board present: Gary Fortmann (president) John Lewis (vice president), Jim Jones (treasurer), David Walp (secretary) and Mike Johnson (member-at- large). There were 19 homeowners plus 5 board members in attendance.
President Gary Fortmann read a statement informing the board of directors and owners present that a complaint has been filed by the Bergers and the Colburns against Division 17 Owners Association. Gary Fortmann and John Lewis were also listed as defendants.
Review/Approval of Board meeting Minutes
The draft March 14, 2018 board meeting minutes were unanimously accepted as presented. Secretary was directed to post the final minutes.
Old Business
- Insurance Renewal – Insurance Committee coordinator Lindsay Busch reported on the analysis of the renewal quote received from CAU. The quote is 25% over the expiring premium, whereas the past 2 renewals were increases of about 1%. Dianna Kaspar, the CAU underwriter, explained that the fire at units 191, 201, and 231 Cascadia Loop brought to light that the cost of rebuilding in Division 17 is higher than anticipated. So the total property value for Division 17 were increased 12% from estimated $49 million to estimated $55 million based on the actual costs of this The 2018-2019 annual package premium is $64,826 which is $13,167 more than the expiring premium. The premium increase per household will be $104 per year, or $26 per quarter. The 2018 operating budget estimate for insurance premiums is $51,600 leaving us with a budget shortfall of $13,226 to be addressed by the board. The committee recommended that the board approve the renewal, recognizing that after this major loss, it is very unlikely that we’d have more attractive option.
CAU unexpectedly offered an earthquake option. The coverage has a cap of $10 million and a 10% deductible for each structure damaged. The coverage is based on the $55 million total property values. The optional earthquake coverage has an added premium of $16,638. The committee recommends not purchasing this earthquake coverage, in favor of putting a set amount into the 2019 budget to establish a reserve fund to pay for earthquake deductibles and other uninsured losses.
Jim Jones made a motion to approve the premium increase to $64,826 to renew insurance coverage recommended by the Insurance Committee.. John Lewis seconded the motion. John Lewis asked how the premium increase would be paid for. Jim Jones indicated that he felt that budget savings should be sought to cover the increase after which a special assessment for the remaining amount would be prorated across owners of record. Jim proposed that the issue be revisited later in the year. Cindy Rhodes asked the board if we should continue insuring through CAU and the board accepted the Insurance committee recommendation that we continue with CAU. The motion was then called for a vote and unanimously approved by the board.
- Professional services Quote from Peninsula Urban Forestry – The services approved at the March board meeting are proceeding. Expect to see members of the Peninsula Urban Forestry in the neighborhood collecting information about our trees. An initial finding is that we have several infestations of “tent caterpillars” that we will need to deal with.
New Business
- Executive session for insurance renewal review – Cancelled as renewal quote arrived in time to be reviewed before the meeting.
- Reserve Study – Jim Jones reported that the next full reserve study is not planned until 2020. Jim Jones made a motion to perform a self survey/study versus a full reserve study with the data submitted to update last year’s result at a cost of $369. John Lewis seconded the motion and the board unanimously approved the motion.
- Independent Financial Review – Jim Jones noted that the members approved a financial review versus a full audit at the annual meeting in September 2017. Jim further stated that the financial records would be submitted to the the same company used last year following the tax The report from the review should be available at the end of July or early August like last year.
OFFICER, COMMITTEE, AND COORDINATOR 2015-16 SUMMARIES
- President – (Gary Fortmann) nothing additional to report.
- Secretary- (David Walp) If anyone has any updated owner information forms please forward to me so I can add them to the master hardcopy Thank you to Valerie Holland and Jan Hale for agreeing to be Co-Chairs for the Developed Landscape committee through the rest of the year.
Please support our community – consider volunteering to be a candidate for the committee coordinator/chair positions for the Exterior Maintenance Committee.
- Treasurer – (Jim Jones) March Treasurer report
- Monthly Operating Expense Report: The March, 2018 Expense report shows our total operating expenses for the month were $10,162 which brings our YTD operating expenses to $40,956 which is $4,427 below Budget due to timing of legal fees and less minor maintenance than planned because of the weather. As shown in a separate document, Operating expenses in March included $582 due to fire related expenses. At the end of March our Operating Funds totaled $115,840, and our Reserve Funds totaled $288,073.
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- Fire Trust Fund: As shown in the Fire Trust Fund Summary report, we paid Three Crowns $634.14 for cleaning of the exterior of 231 Cascadia In addition we earned $217.36 in bank interest during March. At the end of the month the Fire Trust Fund balance was $528,375.
- Funds Transfers: In March I transferred $6,000 of Operating Funds from First Federal Money Market Account to Checking, and I transferred $600 of Fire Trust Funds from Sound Community Bank eMoney Market Account to checking.
- Income tax Return: We filed our 2017 Income Tax return in March with a tax payment of $824 which is based on our total income of $2,848 from interest earned in 2017.
4. Vice president – (John Lewis,) John Lewis had no comments
5. Member at Large – (Mike Johnson) Mike reported that inspections have been completed and the data is being processed into the database Chet Reynolds has volunteered to perform inspections for completed work orders to verify satisfactory completion.
6. Insurance Committee – (Lindsay Busch) Lindsay reported that the renewal needs signatures from board members.
7. Architecture Control Committee – (Susan Hamman) Susan reported that requests for installation of an electrical inlet for connecting an emergency generator and installation of a hand railing were approved. The committee has coordinated paint colors with owners whose units will be painted this year and 4 color change requests have been approved. A request for a deck installation was coordinated and the requestor decided to cancel the request because of cost issues related to approved materials.
8. Developed Landscape – (Mike Johnson acting) Mike reported that the owner at 31 Mendel Drive requested that some dead plants be replaced. Mike reported that upon closer inspection the plants were not dead, only dormant and beginning to Will continue to monitor. 351 Mount Baker Drive owner wants to reconfigure side and rear yard with planting, bark and rock changes and flagstones. This request will be turned over to Valerie and Jan the new co-chairs to continue working the request.
9. Exterior Maintenance & Inspection – (John Lewis)
Paint contract has been signed and painting will commence when the weather improves
Moss control project is in place in with implementation starting 5/15/2018 subject to weather conditions. After repairs identified by spring inspections are entered into the database work orderws will be issued to the maintenance contractor for completion during the spring and summer.
As of 30 April 2018 John Lewis will cease acting as the Exterior Maintenance Coordinator. John requested that references to him in that role be removed from records and from the website.
10. Greenbelt – (Tom Steffen) Tom Hamman will continue to mitigae poison hemlock The first mowing of the greenspace will be early May.
11. Newsletter – (Kay Hatler) Nothing reported.
12. Welcome Committee – (Atrie O’Kelly) nothing reported.
13. Website – (Barbara Brooner) Barbara reported that maintenance actions approved at the march meeting were completed. She indicated that she will verify that references for Exterior Maintenance Committee Chair have been revised to remove John.
14. Sunland Water District – (Ken Niblett) Ken reported that Water District’s new ‘sludge truck is in operation’; fire hydrant on Mt Baker has been relocated; One Call Notification system will be online soon; a second meter reading for all of Sunland has been completed and comparison against the first reading is in The Water District is willing to work with Division 17 to develop a solution to the combination irrigation home water meters.
Homeowner Forum/Comments
Comments about: Cell Tower update, loose pet concerns, prioritize maintenance to reduce costs and Mt Baker landscaping.
ADJOURNED AT 3:41 PM, by consensus.
Submitted by David Walp, Secretary of the Board of Directors