August 13, 2025 Board Meeting
Sunland Division 17 Owners Association
August 13, 2025, 2:30 p.m.
The Gathering Place, 135 Fairway Drive
Call to Order, Verification of Quorum
President Gerry Hatler called the meeting to order at 2:30 p.m., and verified a quorum of five Board members present, Gerry Hatler, Betty Gwaltney, Beverly (Sunny) Stern, Mark Anderson, and Susan Hamman.
Approval of Agenda
The meeting agenda as circulated earlier was approved, so moved by Betty, seconded by Mark, and all approved.
Review and Approval of July Meeting Minutes
The minutes from the July Board meeting were approved, so moved by Betty, seconded by Mark, and all approved.
Old Business
Ratification of 390 Blakely driveway replacement – Gerry Hatler
Gerry asked for ratification of the 390 Blakely driveway replacement, which had been tentatively approved by the Board since the last meeting. The company requested a down payment and a signed contract before the work could take place.
Sunny moved to approve the ratification, seconded by Betty, and all approved. Betty mailed the down payment check last week.
Approval of Foremost Building invoice
Mike Johnson submitted an invoice from Foremost Building in the amount of $13,420.25 for multiple projects done over the summer to several units. Gerry asked for a motion to approve, Betty so moved, seconded by Susan, and all approved.
Nomination Committee report and board acceptance of candidates – Gerry Hatler
Gerry Hatler, with the assistance of George Bannon, canvassed the community for candidates for the two upcoming board vacancies. Lawrence Charters and Mark Anderson volunteered to run for the Board. Gerry asked for a motion to approve the candidates, so moved by Sunny, seconded by Susan, and all approved.
New Business
Proposed By-laws Revision – New RCW financial audit requirement – Betty Gwaltney.
Previously, HOAs were allowed to conduct either a financial review or an audit, depending upon the vote of the membership. Under the revised RCW 64.90, the Washington Uniform Common Interest Act, HOAs are now required to perform an audit.
Sunland North’s bylaws need to be changed to reflect the RCW requirement. Betty proposed the following bylaw changes:
Bylaws Art IV
1. Annual Meetings. The annual meeting of the members of the Association shall be held in the fourth quarter of each year to elect directors, present a financial statement showing in detail the current financial condition of the Association, propose and ratify a budget for the upcoming year, determine if a certified public accountant will conduct an audit or a financial review of the Association’s accounts, appoint two inspectors of election, and for the transaction of such other business as may properly be addressed at the meeting. Amended per July 12, 2017 Board of Directors meeting minutes, Amended December 2024.
Delete highlighted text
Article VII
5. Financial Review. At least annually, the Board shall prepare, or cause to be prepared, a financial statement of the Association. The financial statements shall be audited or reviewed at least annually by an independent certified public accountant. At the Annual Meeting of the owners where a quorum is present, a sixty-seven percent (67%) affirmative vote will authorize the Association to have a financial review performed by a certified public accountant in lieu of the required annual audit.
Replace with:
5. Financial Audit. At least annually, the Board shall prepare, or cause to be prepared, a financial statement of the Association. The financial statements shall be audited at least annually by an independent certified public accountant
The process for amending the by-laws is as follows; the Board approves the proposed bylaw changes, announces the change to the membership for their review and comments and then the Board approves the changes at the September 2025 Board meeting. Gerry asked for approval of the changes, so moved by Mark seconded by Sunny, and all approved.
The financial review versus audit section will be removed from the election ballots since only an audit can be performed.
2026 Budget Proposal and Approval – Betty Gwaltney
Betty presented the proposed 2026 budget to the Board. There will be a $23 monthly increase in Division 17’s assessment rate beginning in January 2026, bringing the total 2026 assessment to $5,022 or $1,246 quarterly. A full explanation of the 2026 budget and annual assessment increase is included in the election packet going out to the membership. Gerry asked for a motion to approve the 2026 budget, Mark so moved, seconded by Sunny, and all approved.
Monthly Expense Report – July 2025
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- Operating expenses: $34,643 YTD $299,337 UNDER budget $22,243
- Interest income YTD: $19,708
Total Funds on hand:
Operating Accounts $284,205
Reserve Accounts $979,617 (85% in CDs)
TOTAL $ 1,263,823
Banking Transactions and Transfers:
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- Operational account CD matured – $101,405.58. Had funds deposited into Operational Checking account.
- Transferred $85,000 from Operational Checking to Reserve Spruce MM (Budgeted $$ for 2025 Unit Painting)
- Transferred $75,259.80 from Reserve Spruce MM to Operational Checking to reimburse check for Unit Painting.
Financial Review:
“Accountant’s conclusion based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.”
Reserve Study Report:
- Projected Starting Reserve Balance as of Jan 1, 2026: $980,000* as of July 31, 2025, Reserve Balance is $980,000 so Reserve Study underestimates our Reserves after end-of-year deposits (additional ~$60-70,000)
- Percent Funded 28.8%
- Average Reserve (Deficit) per unit ($17,394)
- Risk of Special Assessment HIGH (at 30% funding)
- Note: % funded is understated for 2 reasons – 1) Reserve Balance estimate 2) Reserve expense for Unit painting is budgeted for each year so doesn’t impact Reserve balance. Estimated ACTUAL Reserve % funding is closer to 35-38%, putting the HOA at medium risk for special assessment. Given our approach to budgeting each year for unit painting, the recommendation from Association Reserves was to move unit painting to Operational expense so that Reserve Study more accurately reflects % funding.
Betty submitted another Reserve Study to the company who computes the reserve figures, minus the painting as a reserve expense, to get a more accurate picture of the Reserve Balance.
2026 proposed Budget – See attached
CD Purchase – Operational Dollars
Betty recommended the purchase of a $50,000 3-month CD at 2.51% from checking operational monies. Gerry asked for a motion to approve, Mark so moved, seconded by Sunny, and all approved.
Election Documents Review and Approval – Susan Hamman
The election documents will be amended to remove financial review and audit instructions per the discussed bylaw changes. No other changes were received from the Board. Gerry asked for a motion to approve the election packet, Betty so moved, seconded by Sunny, all approved.
Appointment and Approval of 2025 Election Inspectors – Gerry Hatler
Gerry and Kay Hatler volunteered to be election inspectors this year. Gerry asked for a motion to approve, so moved by Mark, seconded by Sunny, and all approved.
Officer Reports
President Update – Gerry Hatler
Nothing further to add except thanking George Bannon for his help with recruiting candidates for the two upcoming board vacancies.
Vice President Update – Mark Anderson
Mark addressed a previous SLOA concern about propane tanks being near windows, which appeared to be in violation of Clallam County regulations. Mark researched and found at the time the propane tanks were installed, they were properly permitted, so they are grandfathered in and do not require any changes. Current regulations mean that new tanks cannot be within five feet of a window. Owners wanting propane tanks must be both approved by the HOA ACC and go through the county required permitting process.
Secretary Update – Susan Hamman
Nothing further to add.
Treasurer Update – Betty Gwaltney
See Betty’s reports above under New Business.
Member-at-Large – Beverly (Sunny) Stern
Sunland North received a letter from Sunland Water District (SWD) about five areas in the HOA where tree roots are infiltrating water service lines and meter boxes. The five areas are between 80-90 Cascadia Loop, 280-290 Cascadia Loop, 30 Mt. Baker Dr. 201-231 Cascadia Loop and 60-70 Mendel Dr. SWD seeks permission from Sunland North to remove tree roots at no cost to the HOA. The work will take approximately a week. There is a slight chance that a tree may not survive when the roots are cut back, but there will be water line problems in the future if this is not done. Gerry asked for a motion to approve SWD’s request, Betty so moved, seconded by Mark, and all approved.
Sunny read Tom Steffen’s Landscaping report, see below.
Committee Reports
Architectural Control – Barbara Ross
Barbara reports that the ACC is waiting for the 231 Mt. Baker homeowner to advise when the pavers are placed for final inspection.
ACC is waiting for 421 Blakely homeowner to advise when front and rear grab bars are installed for final inspection.
ACC is waiting for 230 Cascadia Loop’s mailed paperwork for handrails and grab bars (it has not been received from the postal service as of yet).
A prospective ACC volunteer was called after Barbara received a message, but they have yet to connect.
Insurance – Susan Hamman
A reminder that Dianna Kaspar from Community Association Underwriters (CAU) will give a presentation to the membership on August 29th at 1:30 p.m. at the Sunland Golf Course Ballroom.
Developed Landscape – Tom Steffen
Irrigation
July was a busy month for irrigation issues. New control boxes were needed at two locations. Ongoing issues of low water pressure, faulty sprinkler heads and heads requiring extensions or adjustments were addressed at three locations.
Tracking down the location of a leak at one location required help from two irrigation plumbers and Sunland Water District. August will also be a busy month of repairs and adjustments. Our attempts at conserving irrigation water continue to show positive signs. May, June, and July numbers indicate that we have used 8.6% less irrigation water compared to 2024. Our projected annual saving remains at one million gallons. Special thanks to John Lewis who continues to advise and support our efforts.
Do Not Spray in Beds and Do Not Prune
In response to the request of owners, we have created two “Do Not” lists that our landscaping crew will follow: Do Not Spray (8 units) and Do Not Prune (10 units).
Landscape Debris
A growing number of owners are benefiting from placing their landscape clippings on their driveways the evening before their weekly mowing. In an attempt to better manage this opportunity, I request the Board consider publicizing and enforcing a few guidelines. After consulting with our landscape crew and a few owners, the following examples are worth considering:
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- All owners use sturdy plastic containers with handles (one large or two small per week). No more plastic bags.
- Do not put out containers before Wednesday morning and after Thursday noon.
- If debris is not removed by end of day Thursday, move container into the garage and put out the following week.
- Only put out clippings from HOA maintained bushes/trees. NEVER put out soil, food scraps, bottles, cans, paper, etc.
- Do not put debris container on lawn, which has to be moved before mowing can resume.
Exterior Maintenance – Mike Johnson
Oscar Lopez Painting finished the annual painting and did their usual great job!
Natural Habitat – Sarah Miller
No report received.
Welcome Committee – Kay Hatler
Jann Hale & Kay visited new residents at 50 Cascadia, Joan and Richard Bennett. There are three additional new residents to contact.
Communications and Outreach – Kathy Gross and Lawrence Charters
Lawrence reported there was a Sunland North Web outage caused by the Russian Federation. The outage lasted an hour at the end of July. The creator of the site’s security software gave Lawrence a $4.69 bounty for identifying the hacker and the methodology used by the hacker.
Owner Comment Period
Concerns were raised about the SLOA picnic’s plans to have a hot air balloon at the driving range. The concern was that people attending this event would park on the Blakely and Cascadia roads, blocking traffic and potentially breaking sprinkler heads if they parked on the lawn (which has happened in the past). Betty will contact the picnic event coordinator to see if SLOA will place “no parking signs” up and down the street.
Adjournment
Gerry adjourned the meeting at 3:23 pm.