Division 17 Board Meeting
June 12, 2:30 p.m. to 4:30 p.m
The Gathering Place
Call to Order
Vice President Gerry Mark Anderson called the meeting to order at 2:30 p.m.
Verification of Quorum
Board members present were Mark Anderson, Trseasurer Betty Gwaltney, Secretary Lawrence Charters, and Member-at-Large Warren Husman. Absent was President Gerry Hatler.
Approval of Agenda
Mark asked for approval of the Board agenda. There were no objections or revisions.
Review and Approval of the May 2024 Minutes
Mark asked for the approval of the May 2024 board minutes. Betty made the motion, seconded by Warren, and all approved.
CERT Presentation – John Anzalotti
John is a co-captain of the Sunland CERT (Community Emergency Response Team). CERT is a nationwide program of volunteers who assist their neighborhoods in times of natural disasters and other emergencies. He co-leads a team of 25 people, two of which are from Sunland North Division 17. He is looking for more Sunland North participation for either CERT or Clallam Ready (neighborhood-driven activity). There is an open house on Wednesday, June 19 at the Sunland Golf Course ballroom. John emphasized that it doesn’t take much of an emergency to disrupt life here on the peninsula if bridges or roads are down for any length of time. CERT training involves a volunteer background check and three Saturday training sessions of 8 hours each. The teams meet once a month for training purposes; a different topic is addressed each month. The key theme of CERT is helping neighbors in times of disasters and other emergencies. Division 17 residents are encouraged to volunteer for CERT.
Old Business
Revision of Covenants, Conditions and Restrictions; Amendment procedure; procedure for adopting new law provisions
Secretary Lawrence Charters the revised Washington state law, RCW 64.90, the Washington Uniform Common Interest Ownership Act (WUCIOA), much of it which goes into effect July 2024, and other parts go fully into effect in 2028. This law affects homeowner associations such as Division 17. The current Division 17 CC&R review is incorporating the changes required by RCW 64.90. Division 17 membership will be asked to adopt the new law now and adopt the revised CC&Rs at the September 2024 annual meeting. 67% of the units must approve changes to CC&Rs.
Back Flow Valves Update
No update available.
Committee Vacancies
Two critical committees, Architectural Control and External Maintenance still don’t have replacement chairs. Division 17 owners are encouraged to volunteer!
Annual Meeting
At the July 10 Board meeting, the Board will approve 1) the proposed 2025 budget and 2) the ballot forms for Owners which include electing new Board members, ratifying the 2025 budget, selecting a financial review or an audit, and adopting RCW 64.90 and the revised CC&Rs. The annual meeting packet will go out no later than early August to unit owners.
New Business
Roof Inspection Estimates
Mike Johnson found a roof inspection company called BES (Building Energy Specs Energy, located in Port Angeles. He asked for an estimate for this company to into unit owner attics to determine how the roofs are faring. Mike said it is time to be proactive to review how the roofs are holding up before things can become a major problem for the association (an undetected roof leak can cause more damage the longer it is undented). The costs are $250 -$275 per unit. Or $10,000 for the first two sections of Division 17’s buildout (32 roofs). Betty made a motion to inspect 20 units first to see get an idea of what is going on before proceeding with more buildings. Warren seconded it, all were in favor.
Reserve Study Report
Betty stated that this year’s reserve study was a “Do it yourself.” Mark Anderson, Mike Johnson, and Betty reviewed and submitted information to get projections for reserve status. Bottom line: reserve fund strength is 32.7% funded which puts the division into a medium-risk level of a special assessment (previously, we were in a high-risk category). The reserve balance is now a little over a million dollars. If Division 17 were fully funded, there would be $3.1 million in reserve funds.
Irrigation accounts, unit water accounts
Betty stated that the irrigation lines throughout the division are billed to the division once a year for approximately $12,000. She had a map of the division with green shaded areas showing the irrigation lines assigned to the division. However, there are water lines that are shared by irrigation and unit owner lines. The HOA is not getting billed for all water being used because the lines are connected to unit owners. It is something that will need to be addressed in the future if the Sunland Water District goes to metered billing.
Bylaws revision, process
Lawrence stated that the CC&Rs are the contract between the HOA and the unit owners. The Bylaws are how things are carried out. The Bylaws are revised by the board but the membership is consulted. The new Washington State law going into effect has an impact on the composition of a Board Committee versus an Advisory Committee. Currently, Division 17 has a Board member assigned to each committee. Under the new law, a Board Committee must have two members for each committee. If they are an advisory committee, that is not necessary. The Board consensus was to recommend the committees be designated advisory committees and have two Board members on the committees most central to the HOA’s responsibilities, Architectural Control and Exterior Maintenance.
July newsletter
Lawrence asked the Board and Committee chairs to submit their reports for the July newsletter by June 25. Kathy Gross is the newsletter editor and is doing a great job!
Officers Reports
President – Gerry Hatler
Absent.
Vice-president – Mark Anderson
Nothing to report.
Secretary – Lawrence Charters
Nothing further to add.
Treasurer report – Betty Gwaltney
Monthly Expense Report
Operating expenses for May 2024 were $128,814 and total year-to-date operating expenses were $243,793. This is $45,919 over Budget year to date for Operational expenses due to maintenance expenses.
Interest income YTD: $12,941.00
Total Funds on hand:
Operating Accounts $ 93,326
Reserve Accounts $904,809
TOTAL $ 998,135
CD Activity
Previously approved CD at 1st Security was no longer available so renewed CD at Sound Bank 24-month at 4.28%; mature May 16, 2028.
Purchased CD at US Bank (7-month at 4.55%) with $50,000 from money market funds at US Bank.
Since these CD changes were different from what the Board approved in May, the Board needs to ratify these changes. Lawrence so moved, Warren seconded, and all approved.
Reserve Study – Report received. Key takeaways:
Reserve funded at 32.7% (up from 30% at end of Dec) – this is assessed as a medium risk for a special assessment.
Projected Reserve balance as of December 31, 2024, $1,245,000. If fully funded, the reserve balance would be $3,146,572
Washington Secretary of State annual report (required of non-profits) filed May 20, 2024.
FIPHO – HOA assessment score – scores on reserve, architectural control functions, finance; attempted to submit required documentation, but the HOA does not have required engineering or architectural plans so unable to obtain a report.
Quarterly assessments
Delinquencies: 6 notices sent
New Owners
Two new owners since the last report.
2025 Draft Budget
-
- Maintenance expenses have escalated this year and probably will continue – we have already spent our 2024 budget on repairs this year! Estimated total of $103,500 for 2024.
- Budgeting only $3,000 in taxes for 2024; our interest earning is $2600/month so Taxes will increase accordingly by $11,000.
- Developed Landscaping – Spread plant replacement over 1-2 years
- Insurance – included 10% increase
- Reserves -Painting increased 10%, and mulch increased to $18,000 (times 3 years).
- Reserve Fund contributions – a slight increase
Member at Large – Warren Husman
Nothing to report.
Committee Reports
Architectural Control Committee – Position Vacant
Currently, we have two open projects that are working towards final inspection. As a friendly reminder, if you plan to make changes to the exterior of your unit, screen doors, stair railings, privacy fences, etc, you need to submit a request to the ACC. The proper forms can be found on our website – https://sunlandnorthownersassociation.com/
Insurance – Susan Hamman
Susan will be meeting on June 13, 2024, with the Insurance Chairs for Divisions 7, 11, and 16 to discuss our CAU insurance policies.
Developed Landscape – Tom Steffen
Irrigation— All systems have been activated. Checks, repairs, and replacements of parts and boxes are routinely done by the landscaping crew and/or Brett (irrigation plumber). Owners should continue to report irrigation issues by submitting a maintenance request form via the Landscaping portal available on Div 17’s website.
Trees— Tree Experts have been hired to remove a few trees and prune a larger number of other trees. The cost will be a total of approximately $1,200. Work should conclude by the end of June. Owners should continue to report tree concerns by submitting a maintenance request form via the Landscaping portal available on Div.17’s website.
Plants and Bushes— Dead bushes next to buildings are in the process of being removed; this will be an ongoing project. To date, there have been no attempts to remove the dead escalonia hedges in the islands. A few owners have already replaced the dead plants with new plants; some have personally paid for the new plants. Owners should continue to report landscaping issues by submitting a maintenance request form via the Landscaping portal available on Div. 17’s website.
Lending a Hand— Some owners enjoy tidying up the landscaping beds around their locations, which is not only good therapy for the soul but also helps keep our HOA looking great. Small amounts of clippings can be placed on a driveway next to the street on Wednesdays for our landscaping crew to pick up (hopefully) by the weekend. Best to bag leaves because of windy continues. Never put out food scrapes, trash or piles of dirt.
Exterior Maintenance – Mike Johnson.
Painting has started on the six buildings identified for 2024. The list of Exterior Maintenance has 32 items open on Basecamp. Four priority items must be taken care of; others need feedback from the board. Mike recommends proceeding to get all 32 completed. There are 12 units to be painted next year; Mike will solicit bids in the next few months. 34 homes on the list for roof moss treatment and gutters cleaned; Mike will solicit bids for those. 290 Blakely had holes punched in vents by critters. The vents were sealed up and the crawl space was checked for critters; one opossum was trapped. The exterminator sealed and baited the crawlspace. The cost was $325.00. Betty noted that Owners are responsible for pest control. The pest control bill will be sent to the owner.
Natural Habitat – Sarah Miller
This month’s report is all about appreciating the wonderful volunteers helping with the Natural Habitat:
It looks like we are getting good control of our poison hemlock infestation. Many thanks to Gerry Busch, Tom Hamman, Diana Burns, Greg King, and Sandy Reed for helping with this effort.
Thanks to Susan Hamman, Rindy Hainstock, and Teresa Frank for watering the trees. Most of the ones we transplanted from the detention pond to the west side of the RV storage appear to be doing well.
Thanks to Barry Burns for the regular litter pickup along the frontage roads – Woodcock and Sequim-Dungeness.
Jim Rossi got our fields mowed last weekend so we can see the fawns again!
Welcome Committee
No report.
Communications and Outreach – Kathy Gross
July Newsletter: Board and Committee Chairs, please submit your quarterly reports to Kathy Gross or Lawrence Charters by June 25.
With no further comments from the attendees, Mark adjourned the meeting at 4:01 pm.
Secretary Lawrence Charters met with owners after the meeting to discuss the proposed revision of the CC&Rs, answered several questions, and took note of several small suggested changes. One interesting note: the current CC&Rs have an incorrect name for Sunland Division 17 Owners Association.
Meeting notes by Susan Hamman, with thanks from the Board.