Minutes of the Sunland Division 17 Owners Association
Board of Trustees Meeting
Nov 19, 2012
Detailed Minutes
Call to order: The first regular meeting of the newly-constituted Sunland Division 17 Homeowner Association Board of Trustees was held at the Poolside Room of the Sunland Golf & Country Club on November 19, 2012. The meeting was called to order at 9:00 AM by senior board member Lee Cox.
Roll call: Board members present were Lee Cox, Jim Karr and Jerry Schmidt; none were absent.
Nomination and election of board officers. The first order of business was election of board officers. Lee Cox nominated Jim Karr for president; the motion was seconded and approved unanimously. Mr. Cox nominated Jerry Schmidt for Vice-President; the motion was seconded and approved unanimously. Mr. Schmidt then nominated Lee Cox for the combined position of Treasurer-Secretary; the motion was seconded and approved unanimously. The 2012-2013 board officers are:
Jim Karr, President
Jerry Schmidt, Vice-President
Lee Cox, Secretary-Treasurer
Mr. Cox turned the meeting over to the newly-elected President, Jim Karr. As chair, Mr. Karr announced that the new board had received the signed document formally surrendering Declarant control, and that the homeowners now had full responsibility for the association.
Review of Operating Principles. The chair reviewed highlights from the board’s proposed operating principles, and noted that with the election and then subsequent run-off election, the new board had only been in place 16 days, and this was its first meeting. He provided the information that even informal discussions by two of three board members (a quorum) could be considered board meetings under Washington state law. He stated that the new board members are committed to all board deliberations being held in open sessions. He also reminded the board that executive sessions, which are closed to the public, can take place only on specific topics, and that all action (votes) must still be taken in an open session.
Recent election issues, revision of bylaws. The chair acknowledged that the recent board election did not comply with the association’s bylaws, which specify that the election take place at the association’s annual meeting. He stated further that, given the circumstances of that meeting, it would probably not have been possible; and that in the interest of the association it seemed best to move forward. There were no objections. Jim also acknowledged that the Declarant’s casting in the runoff election of all ballots available to him was not expected, but was consistent with the bylaws. He also stated there was still the outstanding question of assessments to the Declarant on properties still owned in Division 17. The chair also noted that up until 2012, the Declarant had 2 provided all administrative services such as assessment collection and other program administration at no charge to the association.
Possible board expansion. The chair introduced the issue of whether the board should be expanded. Jerry Schmidt proposed that it be expanded to a total five members, each with a one-year term. The chair noted that the board is authorized to fill vacancies and also to change the number of board positions. The latter would require a change in the bylaws. The board can make changes to the bylaws (authorized under Article XII) by (a) making the proposal at a regular or special meeting of the Board and (b) adopting the proposal at a subsequent meeting. If an increase in the number of board positions is approved, the current board would then appoint people to fill those additional positions. The two new positions, if approved, would continue until the next board election, in August 2012, concurrent with the present board members terms. The current meeting serves as notice of the proposed bylaw change, and the proposed change will be voted upon at the next board meeting. The chair stated three individuals have offered to serve if appointed by the Board: Kris Osborn, Cindy Rhodes and Gene Ross. Others willing to serve should contact the Board and forward a couple paragraphs about themselves. Homeowners are encouraged to express their opinions about the board expansion and, if passed, who might be appointed to the vacant positions. Comments should be sent to the Association’s current email address, sunlandnorth@gmail.com. They will then be forwarded to all Trustees.
Action Items
Approval of 2012 annual meeting minutes. The minutes of the August 2, 2012 annual meeting, circulated to the board members in advance, were approved by consensus without a separate reading.
Scheduling future board meetings. The chair stated that the board anticipates meeting monthly, at least for the next few months, and hopes to get on a regular meeting schedule; however, given the need to potentially coordinate with additional as-yet unnamed board members, they would schedule just the next meeting at this point. It was decided that the next board meeting will be Wednesday, December 19, 2012 at 3:00 PM; Sunland’s “The Meeting Place” was proposed as the location, although later discussion indicated this room is unlikely to be available for that date, and a new location would need to be found.
Selection of new accountant. The chair thanked Patricia Mitts for her work all this year, for her assistance to him during this transition period, and for agreeing to continue to handle the association’s accounts until a replacement could be found. Lee Cox expressed the association’s appreciation to Joanne Estes, who had previously provided these services, and at no charge to the association. Lee proposed that Sequim Tax Service (Robin Reese) be hired to take over the association’s accounting, which was seconded, and the motion was approved. Discussion had included two potential alternative providers.
Signature authority. The chair noted that, pending election of officers, he had worked with Kevin Estes to transfer the association’s checking account to the new board, and signed checks to pay valid invoices. There were no objections. The bylaws provide 3 elected officers of the board with signature authority. With the election of officers, all Div 17 bank accounts will be transferred to Div 17 and hereafter managed by the Board.
Committee appointments. The chair asked Lee Cox to continue as chair of the Landscaping Committee, and he agreed. Jerry Schmidt volunteered to chair the Architecture Control and Maintenance Committee, assisted on a day-to-day basis by homeowner Dick Helmenstine. These board members can be contacted at the association’s current email address (sunlandnorth@gmail.com).
Contact info for other issues: The chair offered that, for any homeowner association business, he can be contacted at jrkarr@olypen.com; or email sent to the association’s current email address (sunlandnorth@gmail.com) will be forwarded by Patricia Mitts to all three board members.
Status of unpaid assessments. The chair reported that, based on his research, six homeowners are late in making their most recent assessment payment, and have been sent reminders; and one homeowner is delinquent for both the 1st and 4th quarterly payment. The board decided not to pursue legal action at this time, but that Lee Cox would contact the homeowner.
Authorization for limited expenditures without specific board approval. The chair stated that board members had in the past been granted limited expenditure authority without having to wait for specific approval at a board meeting. Lee Cox moved to grant board officers authority to incur expenses as follows: President, up to $100; Landscape Chair, up to $500; and Maintenance Chair, up to $500. The motion was seconded and approved by consensus. Examples of expenses incurred by the President include board meeting room rentals, when necessary, postage, and copying; for the Landscape and Maintenance chairs, typical expenses would include hiring specialized maintenance workers and purchasing necessary materials.
Contract for income tax preparation. Mr. Cox moved that the same firm used last year to prepare the association’s income tax return be used again this year, and the motion was seconded. Mr. Cox indicated the firm had requested a commitment now so that the work could begin early. Subsequent discussion was to defer a decision, since it was possible that the proposed new accounting contractor could do this as part of their duties.
Updates On Other Issues
Financial. The chair acknowledged accounting is not his background and again welcomed volunteers with expertise to help in this area. He stated that, to the best he could determine, the association’s financial status, generally rounded to the nearest thousand, was as follows:
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- $ 41,300 in checking account (which he noted it appears can vary $5,000 to $8,000/month, depending on when dues and various bills come in);
- $ 112,000 in Money Market account; and
- $ 55,000 in CDs (three different CDs, amounts 18K, 20K and 17K, all due during 2013)
He also stated that, although we still have six weeks in the current fiscal year, the association appears to have spent almost all of its 2012 budget of $160,000. He noted that administration, much of which was previously provided “with great care and free” by the Declarant, was a new cost of $6,500 so far this year, compared to the $1,047 budgeted, and that this is an item that will need to be factored into the 2013 budget.
The chair also noted that funds from the $2/month dues increase to pay for irrigation water meter installation, adopted effective January 1, 2011, have not been segregated in any way. He would like to see this corrected in the 2013 budget. [BACKGROUND NOTE: A $24/quarter assessment increase was approved at the Division 17 annual meeting held August 3, 2010, of which $6/quarter was to go towards irrigation water meter installation and $18/quarter was for the purpose of increasing the Reserve account.]
Finally, the chair observed that budgeting for the association is complicated by some interrelated factors, for example, adding a new home increases the amount of dues collected, but it also increases the cost to the association of insurance, maintenance, and needed reserves.
Selection of bank. It was decided to defer selection of a bank until a new administrative person is hired, since they may have recommendations in this regard.
Transfer of some accounts from Estes Builders. The chair identified three accounts that still need to be transferred from the Declarant to the association: two small PUD accounts (each about $20/month) and an account with Rhodda Paint for regular maintenance supplies. As Treasurer, Lee Cox agreed to follow through with these transfers.
Financial audit and reserve study responsibilities. The chair stated that this area needs more exploration, but will probably get more complicated in the future. Based on what he has been told, the law now requires a full-blown Reserve Study every three years, which can run from $10,000-$15,000; however, it is believed there are some exceptions. Also, the association may need a CPA-conducted audit each year, which would run around $2,000.
Water and water meter issues. Lee Cox provided estimates on the cost to install “water meter setters,” which is required throughout Sunland, based on work done on Mendel in 2009. [BACKGROUND NOTE: “Water Meter Setters” are a preliminary step to installation of the actual water meters—it involves upgrading the water connections so that they can accommodate the meters. Water usage in Division 17 occurs at two levels: individual home use, and shared irrigation (landscaping) use. Currently irrigation water comes off of individual homeowner lines, so the preliminary step of Water Meter Setter installation in Division 17 will also require separation of the homeowner lines from the irrigation lines. Each homeowner will at some point be billed by the Sunland Water District for installation of their individual Water Meter Setter and their individual meter. The cost to install Water Meter Setters and meters for the irrigation lines will be billed by the water district to the association.] In the 2009 example the cost of Water Meter Setter installation worked out to $267 to each of the affected homes, and Mr. Cox suggested one 5 might therefore anticipate the cost in the future to be around $275-$280. The meters themselves will be installed later, currently estimated to be around an additional $200 each. Mr. Cox explained the problem of underground connection boxes that house the irrigation backflow valves, which will need to be located, but said he was encouraged by the 2009 example because it looks like there would be fewer irrigation lines than initially thought. He suggested hiring Sanford Irrigation, with whom he has worked before, to begin locating the irrigation boxes. It was decided Lee should investigate a couple possible contractors and get estimates, for consideration in the 2013 budget.
Facilities and Maintenance
Status of road turnover. Kevin Estes reported that his company brought in a big crew from “Lakeside” [a paving contractor] in order to complete the work as fast as possible, with minimal disruption to homeowners, and they were about one week short of completing all the needed work when the weather turned bad. They are investigating what outstanding components could be completed despite the weather. Mr. Estes mentioned specifically that some repairs are still needed, crosswalks and some signs will be added, and they have a grade problem at one intersection.
Tree cutting on hillside. The chair reported he had talked with Monica Ostrom, the SLOA board president. He learned there are some five different homeowner associations whose borders touch on the bluff south of Division 17. A meeting of all the affected homeowner associations is being scheduled to work towards a solution to the continuing problems with unauthorized trimming and cutting of trees in the connecting lands between these homeowner associations.
Planned maintenance program. New Architecture Control and Maintenance Committee Chair Jerry Schmidt, and homeowner volunteer Dick Helmenstine, will work to fine-tune the routine maintenance program.
Landscape and mowing contract. The chair reported that annual contracts for landscape maintenance and mowing of the open space are signed each year in August.
ADMINISTRATION
Governing documents review. The chair noted there are multiple inconsistencies in the association’s governing documents that need to be addressed, and asked volunteers to sign up to indicate their willingness to help.
Insurance. The chair reported that he had learned the association’s insurance contract runs three years, with a price lock and annual updates; the next renewal date will be in 2015. The chair stated he now has PDF copies of the policy, a general purpose endorsement, and the policy booklet, and that homeowners could contact the chair if they would like to receive those PDF files.
Use of “BaseCamp” for project tracking. The chair reported the previous board had been using a software package called “BaseCamp” for tracking projects. Using it costs $300/year, and it is something the new board may want to consider further.
Meeting notification. The chair indicated the new board hopes to develop a planned schedule of meetings so they can be anticipated.
Development of Division 17 website independent of Estes Builders. The chair asked that anyone with expertise in website development indicate their interest in helping develop this.
Attendance and volunteer sign-up sheets were circulated to the audience.
Visitor comment period. The chair opened the visitor comment period of the meeting, noting that, aside from an informational response, the board would probably just hear comments, rather than trying to get into a full discussion at this point or prematurely indicate a board position. At least a dozen homeowners rose with comments, questions and suggestions. Topics included proposed transfer of the informal Division 17 social account; potential advantages and/or a new state requirement that a CPA do the association’s bookkeeping; potential location and configuration of the main cutoff and irrigation meter boxes; enforcement of SLOA CC&Rs and inconsistencies between SLOA and Division 17 CC&Rs; spraying of hemlock weed by the county; support for a previously-existing “social and welfare” committee within the Division; and interest in an emergency preparedness workshop. Dick Helmenstine also reported on a number of home maintenance issues. These included a reminder to homeowners to disconnect water hoses for the winter; the idea from one homeowner of homeowner work parties to help address maintenance issues; his findings that perceived water pressure issues could actually be either a homeowner regulator that needs to be adjusted or a screen that needs to be replaced; and problems maintaining the split rail perimeter fence. He encouraged homeowners to not grow things along the rail fence, as it contributes to deterioration, as does the need for landscaping services to use a “weed-eater” around the posts, and noted that one option would be to remove the rail fence in order to reduce maintenance costs. Several homeowners also thanked the new board members for stepping forward to serve.
Adjourned at 10:40 AM. Lee Cox moved that the meeting be adjourned; it was seconded and the motion passed. The meeting adjourned at about 10:40 AM.
Submitted by: Barbara Brooner, Volunteer Recorder
Approved: December 20, 2012
Signature: _____________________________________________________