October 2024 Board Minutes

Sunland Division 17 Owners Association
October 9, 2024, 2:30 p.m.
The Gathering Place, 135 Fairway Drive

Call to Order, Verification of Quorum

President Gerry Hatler called the meeting to order at 2:30 p.m. The quorum was established by the board members in attendance of Gerry Hatler, Mark Anderson, Beverly Stern, and Susan Hamman.

Approval of Agenda

Betty moved to approve the October board meeting agenda, seconded by Mark, all approved.

Review and Approval of September 2024 Annual Meeting Minutes

Gerry asked for the approval of the September annual meeting minutes, Mark so moved, seconded by Betty, all approved.

Old Business

Approved Amendments to Covenants, Conditions and Restrictions (CC&Rs) – Next Steps – Gerry Hatler

The CC&Rs, amendment 4, were approved by the Division 17 membership at the September annual meeting. The next step is to get the amendment recorded with the county. Gerry communicated with the attorney who will get the signed copy and record it for the HOA. Gerry and Susan signed the document at this board meeting.

Bylaws and Rules and Regulation Revisions

Betty requested that the new owner processing fee be raised from $100 to $250. She has to process resale certificates which involves research and answers to various questions from the relators and banks. More significantly, new owners often request repairs or landscaping changes, which costs the association. Division 17 is on the low end of HOAs for processing fees. Betty moved to raise the processing fee to $250, seconded by Mark, all approved the motion.

Lawrence Charters asked the Board if he should continue working on revising the Bylaws and Rules and Rules and Regulations; the Board gave a resounding yes!

New Business

Water Consumption – Beverly Stern, Tom Steffen, and John Lewis

John Lewis and Tom Steffen have researched, discussed and analyzed irrigation water distribution and conservation. Over the last 23 years, the HOA has grown into a beautiful community, which sits on approximately 22 developed acres, with 67 buildings (62 duplexes and 5 triplexes), comprising the 139 residences we enjoy.

After inspection of the Division 17 plat and Google maps, it has been determined that the average irrigated area per unit/residence is approximately 3000 sf. Using 2023 data from Sunland Water District, it has been determined that for an irrigation season of 20 weeks (approximately 15 May to 15 September) our HOA used 3300 gallons of water per unit/residence, per week (total for 139 units/residences is approximately 458,700 gallons per week or 9,174,000 gallons per year). Our investigation revealed that nationally and regionally published data recommend that water consumption for lawns be one (1) inch per week, which equates to 0.623 gallons/sf. Based on this recommendation, our target irrigation consumption should be 1900 gallons per unit/residence, per week (total for 139 units/residences is approximately 264,100 gallons per week or 5,282,000 gallons per year). This represents a potential water savings of about 3.5 million gallons of irrigation water per year.

Recommendation: Beginning in the spring of 2025,

1. Set all irrigation control boxes to run 60 minutes (for typical 6 zone building) three days a week. For triplexes, set boxes to 75 minutes (for typical 10 or 12 zone building) three days a week. The target: lawns zones will run approximately 15 minutes and plant beds 5 minutes.

2. Activate irrigation systems on 15 May (or earlier if unusually dry spring but at less than 100% setting).

3. Repair, adjust or replace underperforming sprinkler heads.

4. Repair, adjust or replace control boxes as needed.

5. Monitor for leaks (too much water in places) and dry spots (not enough water in places).

6. Revise the 60/75-minute plan (#1) if our community is suffering from lack of irrigation water.

John Lewis requested that if the Board approves the steps of this recommendation, he would like to present the plan to the Sunland Water District as a model water conservation project. It would be one of four projects in the Sunland Water District.

National and county water conservation guidelines were the basis of the new recommendations. Betty said that in the spring, we need a concentrated communication plan to inform the unit owners of these changes. Gerry requested that Tom provide a write up of the changes to be sent to unit owners. Identify it as one of 4 projects for a water efficiency plan. Tom hopes that it will slow down an eventual pay for per gallon usage plan, which would add tremendously to the costs of the HOA.

Beverly stated that the proposal would meet county and state water conservation requirements and would also be an incentive to keep individual metering payments off into the distant future. Betty moved to proceed with the plan, Beverly seconded it, and all approved the motion.

Tom Steffen also discussed the continuing problems of moles and voles in the lawns.

Officer Reports

President Update – Gerry Hatler

Nothing further to report.

Vice President Update – Mark Anderson

Mark stated that Mike Johnson offered to return as Chair of the External Maintenance Committee. Mark made the motion to do so, seconded by Betty, all approved the motion. Gerry asked each board member to review the Rules and Regulations section on “Unit Owner responsibilities” and “HOA responsibilities.” The HOA does not want to set precedents by paying for what are clearly unit owner responsibilities versus HOA responsibilities.

Secretary Update – Susan Hamman

Nothing further to report.

Treasurer Update – Betty Gwaltney

Betty moved to purchase a 21 month CD at First Security, seconded by Mark, all approved. The HOA has a 13 month CD at First Security with $133K; it matures the 20^th of this month, recommends leaving it at First Security and renew for 21 months at 3.75%. Betty made the motion, seconded by Susan, all approved. Gerry stated that the strategy has been to invest in longer term CDs to get a better rate since interest rates are starting to go down. An extended life CD will produce a better yield. The Board has authority to invest in US treasury bonds or notes as well. There are CD renewals coming up every month over the next several months. As these renewals come up, they can either be put in longer term CDs or kept in short term ones in case the HOA needs the money.

Monthly Expense Report:

Operating expenses for September total $33,584, year to date operating expenses$89,580. This is $16,005 OVER Budget year to date for Operational expenses – note Oct landscaping contract ($12,551) paid early in September and $4000 in prepaid taxes also paid
Interest income YTD: $25,541

Total Funds on hand:

Operating Accounts $ 66,889

Reserve Accounts $ 923,333 (84% in CDs)

TOTAL $ 990,222

Financial Transactions:

1. Deposited $78,067.33 into Kitsap CU savings account from maturing CD at Kitsap CU
2. Transferred $78,000 from Kitsap CU to First Federal Spruce Money Market Account (Reserve Account)
3. Transferred $71,590.40 from 1st Fed Spruce MM to 1st Fed Checking to reflect expense for unit painting done this year as a Reserve Expense
4. Purchased 21 Month CD ($78,000) at 1st Security bank with funds from 1st Fed Checking
5. Transferred $70,000 via cashier’s check from 1st Security Bank to WaFed money market account

Maturing CD

First Security CD 13 month $133,078 matures 10/20/24 – Recommendation: renew CD at First Security for 21 month at 3.75%

1st Sec 13 month #680 M 10/20/24	13m 5.05	10/20/2024
Sound Com Bk CD #5076	18m 4.2%	11/22/2024
US Bank CD #1344 7m 4.65% Matures 12/16/24	7m 4.65%	12/16/2024
US Bank CD #344 7 m Matures 12/16/2024 4.65%	7 m 4.65%	12/16/2024
Kitsap CD #002	27 m 3.49%	1/17/2025
US Bank CD #514	19m 4.83%	2/14/2025
WA Fed CD #716	19m 4.5%	9/18/2025
Sound Com Bk CD 24 m 4.28% #4375 Matures 05/16/26	24 m 4.28%	5/16/2026
First Security #2260 CD 21m @4.03 M 06/26/26	21 m @ 4.03	6/26/2026

TOTAL $ 990,222

Member-at-Large – Beverly Stern

Nothing further to report.

Committee Reports

Architectural Control – Barbara Ross

No report received.

Insurance – Susan Hamman

Nothing to report.

Developed Landscape – Tom Steffen

See report above under new business.

Exterior Maintenance – Mike Johnson

Mike submitted requests to two companies for 2025 paint projects, requesting bids by Dec. 1^st. He plans to put out to bid for roof treatment and moss control. 5-6 buildings being painted next year have some wood rot problems which need to be taken care of before being painted. Foremost Builders has been doing a great job on our maintenance repair lists. There are about 45 maintenance projects on BaseCamp lists including replacement of bulbs in security lights. The latter needs to be done by an electrician, who charges several hundred dollars per hour. Mike has asked for bids on concrete work, fixing and/or raising driveway pavement (particularly 270 Blakely). There is wood rot on the inside fascia at 270 Blakely that will be fixed. 30 Mt. Baker has a roof leak.

October 2024 Board Minutes