SUNLAND DIVISION 17 OWNERS ASSOCIATION

Annual Meeting and September Meeting of the Board of Director

September 12, 2017 2:30 PM

Location: Ball Room, Sunland Golf and Country Club’s Club House

CALL TO ORDER

The annual meeting of the Sunland Division 17 Owners Association was called to order at 2:44 by Gary Fortmann, President of the Board.

ROLL CALL, QUORUM, AND APPROVAL OF AGENDA

The chair confirmed a quorum of the board was present: David Walp (Secretary), Jim Jones (Treasurer), and Gary Fortmann (President), and John Lewis (Member-at-Large). Gary Fortmann stated that a quorum of 52 proxies and 29 in person voters are present. A minimum of 47 votes combined proxies and in person votes required for voting to e

MOTION: Gary Fortmann moved that the motion to approve the fire restoration/reconstruction contractor, Item 3 in New Business, be replaced with a motion to call a special board meeting 14 days after the annual meeting. The motion was seconded by Jim Jones and approved.

REVIEW OF MEETING PROCEDURES

Gary Fortmann reviewed the purpose of the annual meeting and the role of owners as observers at annual and monthly meetings, as required by law and also as encouraged by the board itself.

Depending on time available, the chair will acknowledge comments and questions.

REVIEW AND APPROVAL OF MINUTES

The minutes from the August 9, 2017 board meeting, distributed to board members in advance, were approved with no changes.

PROPOSED 2018 BUDGET AND PRESENTATION OF DRAFT AUGUST EXPENSE REPORT

Jim Jones commented on the 2018 proposed budget (mailed to owners in advance) and the draft August expense report (distributed at annual meeting). Total expenses for August – $27,547. Year to date total – $227,477, which is $27,276 higher than the YTD budget. We have higher than planned YTD expenses for the mulching, irrigation water fees, roof moss removal program and the 2017 painting program (filed with minutes).

INTRODUCTION OF 2016-17 DIRECTORS AND 2017-18 CANDIDATES

Gary Fortmann thanked the current Board of Directors for its service and introduced Jim Jones (incumbent) and Mike Johnson as candidates who submitted their names for consideration for next year’s Board.

BALLOT CASTING CONCLUDED AT 3:00 PM (announced by the chair)

OLD BUSINESS

1. Missing 3^rd quarter assessment payment # – Jim Jones explained the cause for the nine missing assessment payments as a mix up at the US Post Office in Sequim. Either the notice of mail overflow that did not fit in Division 17’s postal the box or it wasn’t placed there at all. Missing mail surfaced after the owners with missing payments were requested to send new payments and put stop payment on previous payment checks. Several owners were reimbursed for stop payment fees (reimbursements approved at August Board meeting). Jim has requested a meeting with the post office official to discuss this situation.

2. 2016 Financial Review – Jim Jones reported on the 2016 Financial Review conducted by Duane Wolfe of Burwell & Wolfe, Inc. The review concluded that, “… not aware of any material modifications that should be made to the accompanying financial statements … in order for them to be in accordance with accounting principles…”. This means that there were no identified abnormalities or deficiencies for financial income, outflow or operating costs for the period reviewed.
3. 2018 Budget – Jim Jones commented on the 2018 proposed budget (mailed to owners in advance) and the draft August expense report (distributed to the board prior to the annual meeting). After the draft budget was approved at the August board of directors meeting, a final review revealed the need to update the budget to account for some additional and revised budget amounts. The Budget mailed to the owners reflect the revisions required for irrigation water usage through new and existing meters ($394 per irrigation meter); Exterior Maintenance budget for maintenance, 1/3 of tri-annual moss removal program cost, painting program cost due to inflation; increased expenses due to the 191/201 building fire; Developed Landscaping costs for irrigation repairs and 1/3 of tri-annual cost for mulching program; and increase of $40,000 to catch up on deficiencies in the reserve funds account. The budget increase is 17% over the 2017 budget to $317,359 and a 7% increase in assessment to $2,568. The assessments are based on 123 units of the planned 139 units.
4. Draft August Expense Report # — Total expenses for August – $27,547. Year to date total – $227,477, which is $27,276 higher than the YTD budget. We have higher than planned YTD expenses for the mulching, irrigation water fees, roof moss removal program, the fire incident and the 2017 painting program.

NEW BUSINESS

1. Appointment of 2017-18 Election Inspectors – volunteer election inspectors Fritz field and Richard Helmenstine stepped up to perform this function for the 2017-2018 election. Election Inspectors for 2018-2019 election cycles are Tom Hamman and Barbara Ross.
2. 2016 Reserve Study –Jim Jones discussed the addition of new items to our reserve inventory list and described the impacts that those additions had on the Reserve Study conducted during 2017. Reserve studies are required by Washington State law every year; every third year, the HOA is required to have a professional company on-site to conduct the study. The impacts include the fact that the reserve fund is only funded at 16.6% and therefore part of the increase in the budgets going forward is to catch up to the minimum expected level of reserve funding.
3. Motion to convene a Special Board Meeting – Gary Fortmann made a motion to schedule a Special Board Meeting with the agenda item of discussion of restoration/reconstruction of the units at 191 and 201 Cascadia Loop culminating in selection of a restoration/ reconstruction contractor. The meeting will be either Sept. 26th or 27th, depending upon the availability of the Gathering Place meeting David Walp seconded the motion and the motion was approved by the Board.

PRESIDENT’S REPORT

Gary concluded his report with a special thank you to all the Board members, Committee chairs, and other volunteers who help run Division 17’s association for the benefit of the entire community.

OFFICER, COMMITTEE, AND COORDINATOR 2015-16 SUMMARIES

1. Secretary – David Walp reported that since September 14, 2016, 14 existing units built between 2001 and 2016 have been sold. Eight new construction units built in 2016 or 2017 sold and closed during the period and two units are currently active. There are 6 units currently under contract or being constructed. The total of units occupied by the end of the year is expected to be 123 of the planned 139. A special thank you was extended to Susan Hamman, Cindy Rhodes, and Barbara Brooner, along with Judy Field, Elaine Farley, Fritz Field and Richard Helmenstine for the time and effort given to insure a successful annual meeting.
2. Treasurer – Jim Jones reported on the Financial Review submitted by Wolfe, a CPA. He discussed the Reserve Study and actions take regarding the budget to rectify shortages. The August expenditure report and the treasure report are posted to the website.
3. Member at Large – vacant
4. Architecture Control Committee – Barbara Ross reported that the ACC received 16 exterior change requests, of which 15 were approved. One is pending for the painting of the gate at 241 Cascadia Loop. Barbara resigned effective at the completion of the annual meeting. Susan Hamman offered to take over as chairperson. Motion to accept Susan was made by Gary Fortmann, seconded by David Walp and approved by the board.
5. Insurance Committee – Lindsay Busch reported that Div 17’s insurance was renewed with Community Association Underwriters (CAU) on May 1, The committee expects to stay with CAU for the next year due to the fire at 191/201 Cascadia Loop and related consequences. There is a strong possibility that the insurance rates could be increased in 2018 due to impacts by hurricane damages from Harvey and Irma. Lindsay agreed to remain as Chairperson.
6. Developed Landscape – Valerie Holland reported on temporary repairs to several irrigation system locations with plans for more permanent repairs expected in the future. Valerie concluded her report by agreeing to continue as Coordinator.
7. Exterior Maintenance & Inspection – John Lewis reported that this year’s exterior painting has been completed. Moss control program is in the first year of an ongoing three year plan. He expects that exterior maintenance activities will increase due to aging. The replacement light pole arrived to replace one that had been run over by a non-resident driver. John asked for suggestions from the community regarding replacement screens around propane tanks (aging and non-uniform screens in phases 1 – 5 of the development). John agreed to remain as chairperson for the next year.
8. Welcome Committee – Barbara Gruner reported that 23 visits were made this year. Barbara agreed to remain as Chairperson.
9. Website – Susan Hamman reported for Barbara Brooner and highlighted the various features of our website.
10. Newsletter – Susan Hamman has resigned from the coordinator position to assume the Architecture Control Committee chair. Kay Hatler will assume the position as our newsletter coordinator.
11. Sunland Water District – Gary Fortmann reported that Division 17 will be the test cases for the new metering software to be conducted during 2018. Metering is expected to go into force for all of Sunland in 2019.

VOTING RESULTS

Gary Fortmann read the results of this year’s elections:

Quorum Present: 81 present (52 Quorum by Proxy + 29 ballots cast at the meeting for 2018 Budget – Approved 78 accept, 2 reject and 1 not cast

Financial Records Review Approved – Financial Review -72 and Financial Audit 9

Elected to the Board of Directors – Mike Johnson 74 votes for and Jim Jones 75 votes for.

Special thanks to, Fritz Field and Richard Helmenstine, this year’s election inspectors.

BOARD ACTIONS MOTION:

MOTION: David Walp moved approval of the owners’ vote to approve the 2018 budget. The motion was seconded by Jim Jones and approved by the board.

MOTION: John Lewis moved approval of the owner’s vote to review the 2017 financial records and transactions. The motion was seconded by Jim Jones and approved by the board.

MOTION: The Board approved the residents’ vote to elect Mike Johnson and re-elect Jim Jones to the 2017-2018 Board.

Confirmation by the board: the new board organizing meeting will be held at 1:00 PM on Thursday September 14 in the SLOA conference room.

HOMEOWNER FORUM

Announcements: Annual Holiday Party has been scheduled for December 8, 2016. There were comments from three members.

ADJOURNED: The meeting was adjourned at 3:40 PM.

Prepared by

David Walp, Secretary