Division 17 Board Meeting
October 11, 2023, 2:30 p.m. to 4:30 p.m.
Gathering Place
Call to Order
The meeting was called to order at 2:30 p.m. by President Gerry Hatler.
Verification of Quorum
Board members present were Gerry Hatler, Lawrence Charters, Mark Anderson, Warren Husman, and Betty Gwaltney.
Approval of Agenda
Gerry asked for approval of the agenda. Lawrence made the motion to approve, it was seconded by Betty, and all approved.
Approval of Minutes
Gerry asked for a review and approval of the September 2023 annual board meeting minutes. Betty made the motion to approve, it was seconded by Warren and all approved.
Old Business
Review of Welcome Packet
Gerry requested that officer and committee members review the Welcome Packet which is currently being revised; and submit changes to Kay Hatler, who is the new welcome committee chair.
Governing documents review
See the discussion to change the annual meeting date, below, and President’s update.
Field mowing contract
Warren has no information as of yet from Jim Rossi, the contractor, about a 2024 contract.
New Business
Introduction of Board Members
Gerry announced the 2023 – 2024 officer appointments, which were determined at the organizational meeting following the annual meeting. Gerry will continue as president, Betty will continue as treasurer, Mark Anderson will be vice president, Lawrence will be secretary, and Warren will continue as member-at-large.
Time and date of Board meetings in 2024
Next on the agenda was setting the 2024 meeting schedule. While there were a few unit owners who requested changes of date and time to either evenings or Saturdays, the schedule will remain the same, the 2nd Wednesday of the month at 2:30 p.m.
Date of Annual Meeting
Next, there was a discussion about changing the annual meeting date from September to October. Betty suggested moving the meeting because of the 3-4 month process of drafting a new budget, setting budget meetings, approving the budget by the board, completing the annual financial review and the annual reserve study, all of which take a considerable amount of time.
Currently, this process typically starts in May by which time there is only 4 – 5 months’ worth of expense history to project expenses for the following year. The Division 17 by-laws sets the annual meeting date; if the date is changed from September to October, it must be changed in the by-laws. Betty stated that other HOAs under the SLOA umbrella have been moving their meetings to later in the year for many of the same reasons listed above. Gerry tabled this action setting the annual meeting date until the governing documents are reviewed; this change could then be incorporated and approved at that time. The law firm engaged to recommend changes to the governing documents submitted their draft to Gerry just ahead of today’s board meeting.
Painting contract for 2024
Mike Johnson, External Maintenance, received four bids for painting six buildings in 2024. They ranged from $56,317 to $107,063. Lopez Painting, who has been our painter of choice for many years, submitted a bid of $66,368. Mike recommended approving Lopez Painting; Lawrence made the motion to approve, which was seconded by Betty, and the board approved.
Records disposition
Susan Hamman submitted another records disposition request, resulting from applying the records retention schedule to the HOA archive files. Betty made the motion to approve, Warren seconded the motion, and the board approved.
Officer and Committee Reports
President Update – Gary Hatler
Gerry said that the legal review of the governing documents resulted in all references to the declarant (Estes) being removed from the documents.
Vice President – Mark Anderson
Mark Anderson has joined the board as a new member.
Secretary – Lawrence Charters
Lawrence had no additional items to report.
Treasurer – Betty Gwaltney
Betty stated that the operating expenses for September totaled $5712 and the total year-to-date operating expenses are at $260,343. This is $56,317 under budget for year-to-date operational expenses. Part of the reason for the lower than normal Sept. expense is that the Sept. landscaping bill was not paid until October. Year-to-date interest income is $10,150. Funds on hand are $127,668 for operational accounts and $780,554 in reserves, for a total of $908,222.
Last month, the Board discussed taking advantage of new CD rates; Betty cashed out a CD at Kitsap Credit Union of $126,241 and transferred those funds to 1st Security. She opened a 13-month CD at 5.05% with $127,000. It matures on October 20, 2024. In addition, the First security savings account was moved into a Business Money Market account that offered .85% interest versus the .15% interest in the savings account. Betty asked for the board to ratify those financial transaction actions, Gerry made the motion, Lawrence seconded the motion and the board approved the actions.
Betty is working with Bell and Bell (accountants) to set up a tax payment for the interest income generated this year. Next year, quarterly tax payments will be made to avoid any delinquent tax payments.
One new owner letter was issued; three units are on the market.
Member-at-Large – Warren Husman
Warren checked with SLOA about taking out small evergreen trees in the ditch near the driving range. While it was discussed that these trees might be Division 7’s responsibility, it was later clarified that these trees are in the small basin behind the east section of Cascadia and are therefore Division 17’s responsibility.
Architectural Control Committee – Eric Mahnerd
Eric is out of the country and has no report.
Insurance Committee — Susan Hamman
Susan had nothing to report.
Landscaping Committee — Tom Steffen
Tom stated that the fall pruning continues. Mowing has been a challenge with the recent rain. The landscapers and Tom have begun shutting down the irrigation systems for the winter. Owners are asked not to alter the settings on the irrigation control boxes or reactivate them.
The island with irrigation lines/equipment near 401 Blakely has received extensive work due to damage done by tree roots. New irrigation equipment has been installed, and tree roots and stump have been removed. The island is being re-seeded with grass and will be mowed in the future.
Owners are reminded to bring in their garden hoses and cover all external spigots with hose bibs for the winter.
Tom is waiting to receive the spreadsheet and analysis of the state of the backflow preventers throughout the HOA. Brett Romano, the irrigation plumber, has almost completed his work.
Exterior Maintenance — Mike Johnson
Mike’s report on painting is under New Business.
Natural Habitat — Sarah Miller
Susan had no report.
Welcome Committee — Kay Hatler
See report under Old Business.
Communications & Outreach – Kathy Gross
Lawrence Charters is trying to find out which Canadian company purchased Google accounts. There is a technical issue that affects e-mail addresses. He would also like to change the HOA address to a .org (indicating a non-profit), not a .com (indicating a commercial establishment).
Homeowner Comment Period
There were no owner comments.
Adjournment
Gerry adjourned the meeting at 3:06 p.m.
Meeting notes recorded by Susan Hamman, with the thanks of the Board.