Division 17 Board Meeting
April 10, 2024 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, Vice President Mark Anderson, Secretary Lawrence Charters, and Treasurer Betty Gwaltney. Absent was Warren Husman.
Approval of Agenda
Gerry asked for approval of the Board agenda. Mark made the motion, seconded by Betty, and all approved.
Approval of Minutes
Gerry asked for the approval of the March 2024 board minutes. Betty made the motion, seconded by Mark, and all approved.
Old Business
Revision of Covenants, Conditions and Restrictions
Lawrence stated that the ad hoc governing documents group is looking at the current draft revision. He deferred further details to Betty’s report below regarding SB 5796 and its potential impact on the governing documents.
Back Flow Valves Update
No update is available.
Review and Approval of 2023 Financial Review
Every year for the past several years, Olympic Tax Service (OTS) has done the HOA’s annual financial review. OTS has merged with another company and will no longer provide this service. Betty located another service, Newman CPA, which specializes in HOA finances. Newman CPA submitted a financial proposal to Division 17. The cost is $2,000, which is $1,400 less than OTS charged. The deadline for the completed 2023 review is July 1st. Betty moved to approve the engagement letter with Newman CPA, and Lawrence seconded the motion; all approved.
Review and Approval of Mulch Disbursement
Betty received the invoice for the mulch work; the total bill for labor and bark was $42,487.34, $1000 less than was projected. Betty moved to approve the expenditure, and Lawrence seconded the motion; all approved.
New Business
Analysis of Senate Bill SB5796 with Respect to Sunland North CC&Rs
Betty reviewed the SB5796, Common Interest Communities (WUCIOA), which takes full effect on January 1, 2028. It will repeal RCW 64:38. The primary purpose of the new act is to bring all the different laws and regulations governing HOAs under one act.
Some of the key points of the new law: 1) Boards may remove unlawful restrictions in the governing documents without a vote of unit owners; 2) quorum for a meeting of unit owners is achieved if 20% of the votes in the association attend in person or by proxy. Unit owners may attend meetings via telephone, video, or other conferencing processes; 3) certain common expenses may be assessed exclusively against a unit owner related to damages from property negligence; 4) The HOA may take various actions during an emergency to protect the interests of unit owners, including use of association funds and reserve funds; 5) a resale certificate and public offering statement must include a conspicuous notice that a unit is located within a common interest community.
Betty moved that the HOA adopt SB5796 and incorporate the new elements now since the governing documents are under review and revision. Lawrence seconded the motion, and all approved.
SLOA Installation of Cameras
Gerry stated that SLOA will install license plate reading cameras off the Sunland North entrance (Woodcock Road) and Sunland’s entrance on Sequim/Dungeness in the coming months. The cameras will be mounted on 10 to 12-foot poles in unobtrusive spots. The primary purpose of the cameras is security, knowing what cars enter and leave Sunland during the night, when burglaries or malicious mischief may take place.
Renewal of Association Insurance
The Community Association Underwriters 2024–2025 insurance proposal came in last Friday, April 5. The Insurance Committee met on Sunday to review it. The proposal came in at $101,369, but did not reflect the requested basic deductible increase to $10,000. That correction will decrease the total premium by another $2,314.00. All the other deductibles have been increased to $10,000, as per our previous request. The Excess Crime Policy was received on Tuesday, April 9th, in the amount of $464.00.
CAU provided a CAU Coverage and Premium Summary sheet, comparing last year’s policy to this year’s proposal. After reviewing the section called “Ordinance and Law Demolition” and “Ordinance and Law Increased Cost of Construction,” the committee recommends that the coverage amount be raised from the current $500,000 to $750,000. $500,000 is too low considering the increased value of the units in Sunland North.
With excess crime, volunteer accident, and commercial excess liability coverage added to the basic premium, the total premium should come out to approximately $103,366. Gerry moved to approve minus or plus 2% to allow for the final paperwork. Lawrence amended the motion to approve payment up to the budgeted amount for the year ($105,500), pending the one piece of paperwork that has not yet arrived. All approved.
With the changes to the insurance policy/premium, the increase for 2024–2025 is approximately 10%.
Officers Reports
President — Gerry Hatler
Gerry asked John Lewis about the markings recently painted on the northeast side of Blakely and Mt. Baker. These markings reflect the drainage in those areas. Mike Johnson found an app that gave him some approximate elevations. Drainage appears to run east from Blakely to Mt. Baker. John believes that there may be a culvert somewhere along the driving range that is impacting the drainage. The driveways along Blakely have very limited slopes and the turf has built up over the years. There is nothing wrong with the driveways. One unit on Blakely, which reported drainage issues, is found not to have anything wrong with the driveway itself. There is a small swale on the east side of the driveway. Adequate ditches are needed to help drain that area; a suggested solution is to put in some dry wells at the edge of the driveway. There are so many underground utilities in that area that a French drain is impracticable. A dry well, two to three feet in diameter with gravel layered in the bottom, should help drain the water.
Vice President — Mark Anderson
Nothing to report.
Secretary — Lawrence Charters
Lawrence reported that the April newsletter went out recently. He has not heard anything from any residents about it, but received one compliment from a resident in attendance at the board meeting.
Treasurer report — Betty Gwaltney
Monthly Expense Report
a. Operating expenses for Mar 2024 $15,045 and total year-to-date operating expenses are $88,785. This is $36,065 OVER Budget year-to-date for Operational expenses.
b. Interest income YTD: $9,168
Total Funds on hand
Operating Accounts $237,932
TOTAL $ 1,130,417
CD Activity
Next CD matures 05/16/2024 (Sound Bank). Gerry reported that today’s CD rates appear better on the short-term CDs. However, in terms of benefits to the HOA, long-term CDs appear to be a better option. As of 4/10/24, Kitsap has a 12-month at 3%, First Security has a 21-month, at 5.07%, Sound Bank has an 18-month at 3.5%, First Federal has a 13-month at 4.80%, U.S. Bank has a 15-month @3.65% and WaFed has a 19 month at 4.60%.
Financial Review
See above under Old Business
Betty stated that the mulch project comes out of the Reserve account. She would like to move $50,000 out of the operating account as part of this year’s planned contribution to Reserves. Then she will transfer money from reserves back to the operational account for the mulch project to reflect this expense as a Reserve Expense. $110K is budgeted to move into reserves this year.
Member at Large – Warren Husman
Nothing reported.
Committee Reports
Architectural Control Committee – Eric Mahnerd
Nothing reported.
Insurance – Susan Hamman
Nothing further to add to the new business section on insurance renewal.
Developed Landscape – Tom Steffen
Spring is well on its way. Regular mowing is taking place, and the long-awaited mulch/bark application has been completed. Paul West, our landscaping contractor, submitted this summary of the mulch/bark project: The purchase of 430 cubic yards of “medium” beauty bark totaled $11,180.00. Our contracted crew spent 526 hours prepping beds, applying and spreading bark, and 60 hours picking up and delivering, which totaled$27,835.00 in labor. Actual costs, plus tax ($3,472.34) totaled $42,487.34. ($1,000 under estimated. In the estimate Paul submitted, he estimated 500 cubic yards and 500 hours in labor.)
Chris Dahl, of Tree Experts, is in the process of estimating tree pruning/shaping jobs that have been requested by owners. Chris is also surveying our nearly 100 plum/cherry trees throughout our HOA, and will submit to the Board a per-tree estimate.
Sunland Water District recently reported unexpected irrigation water use in a unit on Cascadia Loop. A SWD staff member will attempt to close the value, until we can investigate the location of the possible leak. This adds to the five other locations that we shut off when not in use.
In late April or early May, our landscape crew will begin to check and activate irrigation systems in our HOA.
Exterior Maintenance – Mike Johnson.
Concrete repairs have started on identified areas on Blakely.
Natural Habitat – Sarah Miller
I plan to transplant fir trees the weekend of April 20 and 21. Volunteers are invited to meet at the detention pond behind Cascadia on April 20th at 10:00 a.m. Bring a long-handled shovel if you have one.
One more volunteer has turned up for poison hemlock duty.
Welcome Committee – Kay Hatler
Kay Hatler welcomed a new resident on Cascadia.
Adjournment
With no further comments from the attendees, Gerry adjourned the meeting at 3:15 p.m.
Submitted by Susan Hamman for Secretary Lawrence Charters