Sunland Division 17 Owners Association
June 14, 2023
Call to Order and Verification of Quorum
President Gerry Hatler called the meeting to order at 2:35 p.m.
Review and approval of June Board Minute
Minutes were approved as presented.
Old Business
Backflow Valves Update – Warren Husman
The contract with Brett Romano has been signed. The checking process of the valves is immediate. There is a possibility that some may need to be replaced. Cost of replacement is estimated at $300 per valve. This cost was not budgeted for.
Legal Counsel Update -Shirley Legg
Upon Board review of the Engagement letter presented by Apex, Lawrence Charters noted that the Board would likely be the ones “drafting” the letter for the law firm review. Shirley noted that law firm engagement letters are drafted with commonality of laws and best practices and that the only leeway for edits is if there was concern or clarification needed with regard to the scope of work.
New Business
Irrigation Services Agreement
Peninsula Water Solutions will charge $65 per hour under a service contract. Betty Gwaltney moved to approve; Warren Husman seconded. Motion approved by Board.
Field Mowing Contract
Sarah Miller inquired re: a contract and was told a contract should be provided for Board Review.
Approval of Annual Meeting Date
It was moved and approved by Board that the Annual Meeting will be held on September 13, 2:30 p.m. at the Sunland Golf and Country Club ballroom.
Appointment of Board Recruitment Committee
Ellen Valway and Susan Hamman will recruit possible board members to be on the ballot at the Annual Meeting.
Officer Reports
President Update
Ratification from May Board meeting authorizing President and Treasurer to purchase new CD that was maturing in May with highest available rate. Betty reports that a new CD at Sound Community Bank was purchased with an 18 month maturity with a 4.2% yield.
A motion was made to cash out another CD at Sound Bank early (maturity date 08/19/2023) and purchase a new 11-month CD at 5.27%. While this would result in ~$1000 penalty, it would mean a higher yield overall. Motion was made by Lawrence Charters, seconded by Warren Husman and approved by Board.
Vice President Update
Lawrence Charters reported there have been requests for the streaming of meetings. However, the logistics of the room set up doesn’t allow for clarity of streaming. He noted it is worth experimenting with and perhaps he could do this at the July meeting.
Secretary Update
Tom Steffen and Betty Gwaltney have offered to assist with preparing the annual meeting materials.
Treasurer Update
Monthly Expense Report:
Operating expenses $19,165 and total year-to-date operating expenses to $177,274. This is $32,601 UNDER budget year to date for Operational expenses.
Interest income YTD:$6631.
Total Funds on hand:
Operating Accounts $ 196,708
Reserve Accounts $600,925
TOTAL $ 896,633
Reserve Study Analysis Report – See attached
Corrected Dec 2022 Report – Corrected Budgeted $$ and Maintenance expense total – see attached
2024 Reserve Study
Background: Per Bylaws Article VIII 4.B Certified Reserve Study professional conducted onsite inspection in April 2023 and issued the 2024 Reserve Study Analysis. Projected Reserve $$ requirements are based on:
- Components (roofs, siding, driveways, etc.)
- Useful life and Remaining life of each component
- Current average cost to repair/replace
- Required Reserve $$ compared to Current Reserve $$ and planned contributions
Results:
- Projected Reserve Balance Jan 1, 2023 $762,423*
- Fully Funded Reserve Balance $2,972,831
- Percent Funded 6% (High Risk for Special Assessment)
- Average Reserve (Deficit) per unit ($15,902)
- 2024 “Baseline Funding” minimum to keep Reserves above $0 $7917
*Given higher interest earnings we would expect Reserve Balance to be closer to $815,000
Analysis by Board:
- Major capital $$ required within 10-15yrs
- Cost of replacement increased with inflation:
- Tile roof replacement for Phase 1 went from est. $178,000 to $195,000
- Siding replacement for Phase 1 went from est. $112,000 to $192,000
- Current annual Reserve Contribution is not sufficient to grow funding for needed capital projects to come
- Significant increase (200-300%) in Annual Assessments would likely put hardship on owners
Recommendation:
- Increase budgeted Reserve Contribution by at least 10-15% each year to decrease risk of Special Assessments
- Continue to adequately fund preventive maintenance to prolong useful life of components (rough cleaning, repainting, etc.)
- Continue investment strategy with Reserve funds to maximize growth
Reserve Study Analysis Report – See attached.
Corrected Dec 2022 Report – Corrected Budgeted $$ and Maintenance expense total.
Committee Reports
Architectural Control – None
Insurance Committee – Susan Hamman
Susan announced that Divisions 7, 11, and 16 are hosting a “How Insurance Works” presentation on August 14, Sunland ballroom. It will be basic and provided for a question and answer session.
External Maintenance – Mike Johnson
This year’s painting is in progress.
Developed Landscape – none
Natural Habitat Sarah Miller
Volunteers are still needed for watering the young trees in the around about area.
Welcome Committee – None
Communications and Outreach – Lawrence Charters
Lawrence is still working on migrating to new website. There are still some technical issues.
Owner Comments
Question re: SLOA cameras. These cameras have been installed to eliminate the nighttime security patrols. The cameras feed to tapes to the designated SLOA tech person.
Question regarding an emergency contact phone number. Mike Johnson was asked to research and contact emergency service companies for costs.