Minutes – Board Meeting – July 2, 2013

Sunland Division 17 Owners Association

Board of Director’s Meeting July 2, 2013

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

(Approved August 6, 2013)

Homeowner Forum:

Continuing a new procedure first implemented at the May 7 meeting, the board scheduled an open Homeowners Forum from 9:00 AM to 9:30 AM, immediately preceding the board meeting itself. Fourteen observers attended the meeting, but none indicated a desire to speak. There being no homeowner comments, the board started its regular meeting

Call to Order:

The regular meeting of the Sunland Division 17 Owners Association Board of Directors was called to order at 9:05 by president Jim Karr.

Roll Call and Quorum:

The chair confirmed a quorum with all four members present: Jim Karr (president), Lee Cox (treasurer), Cindy Rhodes (secretary), and Gene Ross (board member).

Review and approval of minutes.

The draft minutes had been distributed earlier, and were included in the board packet. There was one correction.

Motion by Lee Cox to approve the minutes as corrected; the motion was seconded and approved.

President’s Report:

Jim Karr addressed several topics, including:

–He revised a map of Sunland Division 17, based on the plat map but with house numbers added (distributed at the meeting and to be available on Div 17 website);

–Four candidates will appear on the upcoming board election ballot, but additional candidates could still be nominated at this board meeting;

–He reminded the board they had discussed at an earlier meeting possibly closing the water and power accounts for two “pocket parks,” at a projected annual savings of $1500.

Motion: Cindy Rhodes moved that water and power be cut off to two “pocket parks,” one located at the intersection of Blakely and Mount Baker and the other near the Mt. Baker mailboxes. The motion was seconded and approved.

Committee Reports

1. Treasurer’s Report: Lee Cox reported that the association’s four accounts [three CDs, a money market fund, and a checking account] totaled $217,000.
2. Developed Landscape–Volunteer Coordinator Eldon Dennis reported that a number of dead plants had been removed, and that replacement, if not done by the homeowner, would be initiated this fall when the landscaper’s schedule was not so busy. There have been sprinkler problems in several areas, including sprinkler heads not going down. He encouraged homeowners to push down any they notice, to avoid damage by mowers. Moles have returned to three areas that had this problem in the past; they will be trapped, at a cost to the association of $50/mole.
3. Greenbelt Landscape (Meadow)–Volunteer Coordinator Tim Paschal submitted a written report. The chair expressed appreciation for the work Tim has been putting into weed eradication. Per Tim’s report, he noted that a 3rd mowing of the meadow area will be necessary due to continued rapid grass growth over recent weeks; and that weed eradication efforts will require a 4th mowing later this year, as well as major spraying at the end of summer.
4. Exterior Change Requests–Volunteer Coordinator Cindy Meek reported that no requests for exterior changes were received since the last board meeting.
5. Exterior Maintenance and Inspection–In the absence of Volunteer Coordinator Richard Helmenstine, Eldon Dennis reported that repair to perimeter fences had been more expensive than anticipated, due to water having leaked into the posts themselves.
6. Governing Documents Review–Gene Ross reported that his committee met 25 times since January 7, and completed their proposed revisions to the bylaws. He, Jim Karr and Tim Paschal met with attorney Allen Millet, who reviewed the draft bylaws, and that the review would be discussed more fully later in the meeting. The committee has begun work on the CC&Rs.
7. Secretary’s Report–Cindy Rhodes provided a number of updates:

–As of last week, there were four homes for sale in Sunland Division 17, some with offers in progress (plus the developer’s unoccupied new homes);

–15 units are currently identified as rentals;

–The number of units that require or prefer hand-delivered association communication has been further reduced from 13 to 7 owners;

–New Washington homeowner association rules, effective July 28, require a written record of owner’s authorization to send association communication electronically (i.e., via email), and a Division Contact Update Form was created to document this;

–The July newsletter, expected to go out next week, will be mailed as part of a larger packet that will also include election materials, the Contact Update Form, updates from the president and committee chairs, and budget information;

–Binders will be compiled for new board members; contents will include copies of (or electronic access to) the Sunland Division 17 governing documents (articles of incorporation, CC&Rs and bylaws), division map, and the official homeowner roster. Cindy asked that any additional suggestions be sent to her.

Old business

1. Discussion and adoption of proposed 2014 budget: The chair reviewed the budget materials included in the board packet, showing the 2013 operating budget; actual expenditures to-date (Jan thru June) for 2013 compared to the budget; the status of current association accounts; and the proposed operating budget for 2014, assuming 107 units. He noted that at this point—50% through the year—the 2013 budget was 49% expended, which was pretty much on track; but that an increase in assessments would be needed for 2014. The last increase in assessments was in 2010.

Motion: Lee Cox moved that the board adopt the 2014 budget as proposed, including an assessment increase of $96 per unit per year. The motion was seconded and approved.

2. Annual meeting: 6 August, 1:00-4:00 pm, Poolside Room at SGCC: The chair reminded the board and audience of the upcoming annual meeting, which will include election of new board members and a homeowner vote on the proposed 2014 budget.

He also announced that an organizational meeting for the new board will be held August 7, at 9:00 AM, in the SLOA/Sunland Water District meeting room located upstairs, next to the SLOA office. This organizational meeting, to be held within one week of the election, is required by the Sunland Division 17 bylaws. The chair confirmed that, like all board meetings, this organizational meeting is open to observation by homeowners.

3. Reserve Study: Cindy Rhodes reported that “Association Reserves,” the firm used for Division 17’s previous two reserve studies, are re-running the current reserve study, at no additional cost to the association. She said different interpretations of the appropriate input data significantly affected the projections, which were unrealistic. It was suggested that the association should probably contract for the more comprehensive version next year, which includes an on-site inspection, even though it’s more expensive. Per 2011 state law, homeowner associations are required to conduct annual reserve studies, which it was noted are also important resources for potential buyers and their lenders.
4. Implementing Document Processing or Transfer Fee: The chair discussed a new form authorizing title companies to deduct a $100 document processing fee at close of escrow, payable to the association, which will serve as notification when there is change of ownership. [NOTE: The association needs this information to notify all legal owners of important homeowner information, as well as approved or planned actions or requirements.] Gene Ross distributed a copy of an “Optional Clauses Addendum To Purchase & Sale Agreement” that lists items the seller must provide as part of what’s titled the “Homeowners’ Association Review Period.” The chair noted that all the items listed are available on the Sunland Division 17 website.
5. Review of ballots and other annual meeting documents: The board discussed the multiple items that will be a part of the election packet, making several suggested edits.
6. Discussion and approval of the revised bylaws: Gene Ross distributed a Governing Documents Committee Report, and summarized changes that had been made to the revised bylaws following legal review. Draft bylaws, dated August 6, 2013 had been included in the board packet. Following discussion, the board agreed by consensus to omit on page 9 the words “by lot” in Article V “Board of Directors,” Section 4 “Term of Office.” There was also discussion of how best to refer to the recently acquired areas surrounding the developed areas, currently referred to as undeveloped common space in the revised bylaws. The chair noted that some owners were not happy with the term “undeveloped common space” because it leaves open questions about how and when it might be developed. Development is actually prevented by the Clallam County development permits authorizing Division 17. Other terms used for those areas in recent months include greenbelt, meadow, and open space. Open space is the term used by the county and the developer in the plat maps of the area.

Motion: Following some discussion, Lee Cox moved that the bylaws be revised to refer to this area as “open space.” Discussion continued, but there being no second, the motion died without a vote.

Motion: Gene Ross moved that the board accept the proposed July 2, 2013 amendments to the Association’s 1999 Bylaws for adoption at the August 6 Annual Meeting and that member notice be given as required by the current Bylaws. The motion was seconded and approved, with a vote of three yes and one no.

7. Insurance claim, 20 Mendel: The chair reported that, in reference to water damage at 20 Mendel which had been reported at the previous board meeting, the association’s insurer (CUA– Community Underwriters Association) had formally declined to cover the event. The chair made three recommendations to all homeowners: do routine inspection and maintenance of homes as recommended by Kevin Estes Homes at time of initial sale; take immediate action if any anomalies are detected; and promptly call your insurance company and members of the Div 17 board to alert them to presence of any potential problem.

New business

1. Additional Board Candidate Nominations: The chair called for any additional nominations from the floor; there were none. He noted that proposed amendments to the bylaws call for a minimum of three board members and a maximum of five, and observed that the board can appoint board members. Finally, the nominating committee contacted many people in recent months in their effort to expand the pool of nominees.
2. Scheduled transfer of funds to Reserves: The chair reminded the board that as decided at the June 4 meeting, $20,000 would be moved into the association’s Reserve Account, as the 2012 reserves contribution in the next few weeks. This reflects what appears to have been the past practice of waiting until at least six months after the close of the fiscal year to make that year’s reserves contribution. He recommended that in the future, early in the 3rd quarter of each fiscal year,50% of that year’s budgeted reserves be transferred with the balance to be transferred after the close of the year.

Adjourned at 10:45 AM:

Motion by Lee Cox to adjourn the meeting; it was seconded and approved.

Prepared by: Barbara Brooner, Volunteer Recorder