July 2018 Board Minutes – Sunland North

SUNLAND DIVISION 17 OWNERS ASSOCIATION

Board of Directors Monthly Meeting

Wednesday, July 11, 2018

Location: Sunland’s “The Gathering Place,” Ground Floor Meeting Room

Call to Order

The July 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 five members of the board Gary Fortmann (president), John Lewis (vice president), Jim Jones (treasurer), David Walp (secretary) and Mike Johnson (member-at- large). There were 29 homeowners plus 5 board members in attendance.

Review/Approval of Board meeting Minutes

The draft June 13, 2018 board meeting minutes were unanimously accepted as amended. Secretary was directed to post the final minutes.

Old Business

2019 Budget – Jim Jones discussed the draft budget created out of the budget working meeting on 28 June The 2019 budget is based on an assumed 135 units in the community, an increase of 12 units over 2018. The association budget includes increases for operations of $59,400 as follows: Administrative expenses up $5,500 (accounting; taxes: licenses, permits; Professional services) Insurance up $24,000 (due to increased valuation for restoration costs and increased number of units) Landscaping up $27,240 (Landscape contract; irrigation repairs; Irrigation system SWD costs)

Minor maint & repairs up $2,400 (Supplies & Labor; Moss control; Gravel pad for storage trailer) The operations costs total $273,200 or $2,024 per unit

Reserves are budgeted at $100,200 (an increase of $10,000) Reserves cost $816 per unit The total budget for 2019 is $383,400 for a cost per unit of $2,024 + $816 or $2,840

Jim Jones made a motion to approve the proposed budget. The motion was seconded by john Lewis and unanimously approved by the Board of Directors

Owner Survey – Barbara Brooner reported that the draft suvey was sent to the board for review and comment. The Board is not in a rush to complete the survey before the Annual Meeting but wants the survey team to continue working on the Barbara reports that the team is working on revisions to prepare a draft release survey.
Vacant BOD Position recruitment – Susan Hamman reports that there are three Incumbents John Lewis, and Gary Fortmann have decided to stand for re-election to the Board along with new volunteer Lawrence Charters. David Walp withdrew his candidacy to instead stand for election for the SLOA BOD.
Financial Review – Jim Jones reported that the accountant used last year has agreed to a contract to perform the services again this year. The report will be available before the August BOD meeting.
2019 Reserve Study – Jim Jones reports that he has completed the self generated study using the software available from the company that completed the full study last year. Changes to conditions for the study included increasing Mt Baker roof life from 30 to 35 years. He used the current reserve balance and projected contribution from 2018 to get to the year end reserve funding percentage. Last year, 2017, we were at 16% Using the new conditions raises our funding percentage to 31% for year end of 2018.

New Business

Annual Meeting Documents Review – David Walp Discussed the status of document preparations and indicated that the draft documents would be distributed to board members for review. Final revisions will be incorporated following the August board meeing to prepare for making copies for mailing to members of record.

OFFICER, COMMITTEE, AND COORDINATOR 2015-16 SUMMARIES

President – (Gary Fortmann) Nothing 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 file.

Our community continues to grow with 127 units of the planned 139 units occupied. There are seven homes for sale/under construction in the Mount Baker area which leaves only four more units to complete build-out of the final phase in our development.

Status Address	Year Built	Sold Price Closing Date	#Beds Ba	Sq Ft	Price	Owner
For Sale 80 Mendel Dr	2005	$	2 2	1744	$394,950	Craig Baker
Pending 20 Mount Baker Dr	2012	$ 7/20/2018	3 3	2037	$474,000	Allen Estes

I have completed draft versions of the documents for the annual meeting for review by the board.

Please support our community – consider volunteering to be a candidate for the committee coordinator/chair positions for the Exterior Maintenance Committee

I have decided not to stand for reelection to the Division 17 Board of Directors in September. I will instead stand for election to the SLOA Board of Directors as a member at large to represent both Sunland and Division 17 interests.

3. Treasurer – (Jim Jones) July Treasurer report

- Monthly Expense Report: The preliminary June, 2018 Expense report shows our total Operating expenses for the month were $26,577 which brings our total expenses for the first half of 2018 to $162,977. Operating Expenses are $13,666 higher than Budget due primarily to our 2018/2019 insurance premium and landscaping contractor expenses both being higher than planned which are partially offset by lower than planned minor maintenance expenses. At the end of June our Operating Funds totaled $63,771, and our Reserve Funds totaled $289,013.
- Fire Trust Fund: As shown in the Fire Trust Fund Summary report, we earned $159.32 in bank interest during June. At the end of the month the Fire Trust Fund balance was $528,803.
- Proposed 2019 Budget: The proposed 2019 Budget has been sent to you. As you can see, Operating expenses total $273, 200 which is an increase of $59,441 over the 2018 Reserve funding totals $110,200 which is an increase of $6,600 compared to this year’s Budget. As a result, the proposed 2019 Budget totals $383,400, based on 135 units assumed for the Budget, and equates to an annual assessment of $2,840 ($710/quarter) for each unit which is an increase of 10.6% over 2018.
- 2019 Reserve Study: The 2019 Reserve Study has been completed and the Executive Summary page from the report was sent to the board members. As you can see, this year’s study shows the Reserve Fund is 31% of what should be on hand at the end of 2018. This is based on projected, inflated long term major repair expenses for Division 17. The 2017 Reserve Study indicated that we were 16.6% funded last year.
- 2017 Financial Review: On behalf of Division 17, I have signed the letter of engagement for the 2017 Financial Review with Duane Wolfe, the CPA in Port Duane has performed our recent Financial Reviews. He has indicated that he will have his final report to us by our August Board meeting.
- Correspondence: I sent three letters of introduction to new owners since our June meeting. I also sent a letter to the affected owners and SWD that Division 17 would no longer be paying the water/sewer invoices for 191/201 Cascadia Loop effective with the 3 rd quarter of Finally, John Lewis and I collaborated on a letter that I mailed to SWD that stated it was our opinion that the fee that Division 17 is being charged for irrigation water is too high, so we requested information concerning the pricing methodology that they had used for irrigation water.

4. Vice president – (John Lewis,) nothing to report

5. Member at Large – (Mike Johnson) Mike Johnson requested that owners contact Valerie Holland or Mike and not speaking directly with the landscape crew members.

6. Insurance Committee – (Lindsay Busch) nothing to report.

7. Architecture Control Committee – (Susan Hamman) Susan reported that the new process codified in the MOU with SLOA is now in effect for all future architectural requests.

8. Developed Landscape – (Valerie Holland) Nothing new to report.

9. Exterior Maintenance & Inspection – (TBD) There is still a need for a coordinator.

10. Greenbelt – (Tom Steffen) Tom Hamman reports that he, Alan Morris and Ken Niblett have divided up the greenbelt areas for poison hemlock mitigation.

11. Newsletter – (Kay Hatler) There were some issues with distribution but problems were successfully corrected and all owners with emails on record have received the distribution.

12. Welcome Committee – (Artie O’Kelly) Artie reported 3 visits are planned.

13. Website – (Barbara Brooner) Barbara reported that routine maintenance actions were completed.

14. Sunland Water District – (Ken Niblett) Ken reported that

- Sunland Water District reports that all meters are being labeled as House or Irrigation
- Lead and Copper testing is being completed (not required in Div 17)
- the 5^th Sunland wide meter reading has been completed to provide data regarding metered billing
- Cell Tower – Verizon has resolved fiber routing issue to the Emerald heights tower and will be starting service soon.