SUNLAND DIVISION 17 OWNERS ASSOCIATION
Board of Director’s Meeting March 11, 2015 2:30 PM
Location: Sunland’s “The Gathering Place” Ground Floor Meeting Room
Homeowner Forum: Per established Board procedure, the meeting began with an open Homeowners’ Forum. No one spoke.
Call to Order: The regular meeting of Sunland Division 17 Owners Association Board was called to order at 2:40 PM by President Susan Hamman.
Roll Call and Quorum: The chair confirmed a quorum with four Board members present: President: Susan Hamman, Secretary: Judy Field, Treasurer: Terry Main, Board Member at Large Two: Tom Steffen. Board Member at Large One: David Jelin was absent
Review and approval of minutes: Draft minutes from the regular Board meeting of January 14, 2015had been circulated to the Board in advance. There were no corrections.
MOTION: Tom Steffen moved to approve the minutes as written. The motion was seconded and approved.
Old Business:
1. Earthquake Insurance: Susan read a summary from our insurance Committee, detailing their work from last December to the present. In December 2014, our Association was notified by our current provider (Community Association Underwriters) that we should anticipate an increase in our regular premium; that they would no longer offer earthquake insurance as part of our regular coverage; and that we would be moving to an annual policy renewal instead of the three year policy which we currently have. Presently, the committee is in contact with two companies which are direct writers: CAU (our current provider) and American Family Insurance. The committee is also working with one independent agent, Callis & Associates.
As of today (3/11/2015), the offers from those two companies are:
A.) American Family Insurance: the total policy, including earthquake coverage, has a preliminary quote of $64,827; $26,650 is the earthquake portion of that quote. (Our current earthquake policy is about $2700). The regular insurance part of that premiumis$38,177. The earthquake deductibleis15% per unit. Our budget for ALL insurance coverage for 2015-2016 is $45,150 –a deficit of $19,677.
B.) CAU: a one year policy, without earthquake insurance, is $45,073. The company will provide a separate earthquake rider to our policy but cannot provide a quote until 30 days before the effective expiration date. (That would be April 1 since our present policy expires on May 1). The company representative said we should expect an earthquake premium of at least $40,000, which works out to $ 360 per unit, per year.
On March 16, 2015, the Insurance Committee will meet with the third agent: Andy Callisof Callis and Associates. He is an independent agent (local) representing many companies.
Subsequently, the committee will study the three offers and present them to the Board and the homeowners. A fourth option could be added: that there will be no earthquake coverage provided through the Association.
An issue needing further clarification is: do individual homeowners have the option of purchasing their own personal earthquake coverage? We have received mixed messages from the insurance companies on this point.
2.) Storage Shed Investigation: David Jelin was absent so no report was given.
3.) Why Assessment Checks Aren’t Cashed at the End of the Year for Next Year’s Assessments: Per financial auditing and accounting practices, assessment checks must be reflected in the year that they are due. Terry Main, our Treasurer, suggested that if the Assessment notices are mailed later in December (the 15th instead of the 1st), checks would be held in the bank for a shorter period. MOTION: Terry Main moved that the Division 17 Associationaccountant change our invoice cycle from 12/1 to 12/15 each year, starting in 2015. The motion was seconded and approved.
4.) Roads: Fritz Field reported that SLOA will purchase some new signs, including a YIELDsign at the intersection of Mt. Baker and Blakely Boulevard and two CAUTION SHARP CURVE signs. One sign will be placed on the Neighborhood Watch post and the second sign will be placed on the median between the Driving Range and the road. SLOA has asked Division 17 to install the posts and mount the signs.
New Business:
1.) President’s report: Susan addressed some items from the February SLOA Board meeting:
A. Lot #207. Sunland Golf and Country Club accepted SLOA’s bid of $20,000 for the purchase of the lot. All the paperwork is not yet completed.
B. Celeste announced that 50 delinquent notices were sent out this year, which is significantly higher than in past years. A suggestion was made to increase the late fee from $25 to as high as $100. The matter was referred to a committee for further study.
C. SLOA is considering doing a reserve study and is investigating companies which provide a study and a report.
D. The following question came before the Washington State Supreme Court: can a HOA restrict the number of rental properties? The answer is no if the issue was not reflected in an HOA’s original CC&R’s.
Officer, Committee and Coordinator Reports:
1.) Secretary: Two units have sold and two others are under contract. Sales indicate that Sunland Division 17 is an attractive area for buyers.
2.) Treasurer:
A.) The financial status as of February 28, 2015 indicates we have $151,024 in our checking account and $167,270 in Reserve Fund accounts for a total of $318,295. $42,230 will be withdrawn from our Reserve Fund for unit painting in July/August.
B.) A new CD was purchased February 11, 2015. It matures in 18 months and offers an interest rate of 1.1 % .
C.) Deposits to Reserves: $12,000 will be deposited in March 2015 and $14,593 will be transferred in November 2015.
D.) One unit is being transferred to bank ownership; however, the Association has not been officially notified by the bank.
E.) Reserve Study for this year: MOTION: Terry Main moved that the Board order the “Do It Yourself” study at a cost of $349. A full reserve study was completed last year. The motion was seconded and approved.
3.) Water Board Update: no report
4.) Mole situation: Tom Steffen asked the board to determine a definite policy in regard to the elimination (or not) of moles. Tom will continue to locate a licensed mole exterminator while the Board further studies this issue. Hopefully, a local resident will volunteer for this job.
5.) Architecture: Cindy Meek had no requests in the last reporting period.
6.) Developed Landscape: Eldon Dennis requested that some wording under the Landscaping section of our R&R’s be revised and clarified as to “personal plantings”. He submitted his suggested revisions for the Board to study and vote on at the April Board meeting.
7.) Exterior Maintenance: Richard Helmenstine
A. A number of roofs have moss. Richard suggested the use of a sprayer while standing on a tall ladder, which would prevent actually walking on the roof. He will rent a sprayer to see if that system will work. If so, the Board might consider the purchase of this item (approximately $300-$400).
B. Unit painting will begin this summer or possibly earlier because of our mild weather. Lopez Painting has submitted their bid. MOTION: Tom Steffen moved to approve the estimate as presented by Lopez Painting. It was seconded and approved.
8.) Greenbelt: Tim Paschal
A. Tree planting is complete
B.The first mowing of the greenbelt should occur in April
C. Tim reminded homeowners to use caution when disposing of plants in the greenbelt areas.
D. A letter will be sent to Sunland Golf Club, requesting permission for our greenbelt mower to cross the lawn by the Driving Range. Susan will sign the letter;a copy will be retained in the archives.
9.) Newsletter: Renee Jones was absent but Susan asked that all reports and items for the next newsletter be sent to Renee by March 20, 2015.
10.) Welcome Committee: Barbara Paschal and the committee continue to visit new homeowners as they arrive.
CLOSING HOMEOWNER FORUM: no one spoke.
ADJOURNED AT 4:17 PM
MOTION: There being no further business, Judy Field moved to adjourn the meeting. It was seconded and approved.