SUNLAND DIVISION 17 OWNERS ASSOCIATION
Annual Meeting and September Meeting of the Board of Director
September 12, 2018 2:30 PM
Location: Ball Room, Sunland Golf and Country Club’s Club House
HOMEOWNER FORUM
Annual Holiday Party has been scheduled, watch for announcements.
CALL TO ORDER
The annual meeting of the Sunland Division 17 Owners Association was called to order at 2:45 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), John Lewis (Vice-president) and Mike Johnson (Member-at-Large). Gary Fortmann stated that a quorum of 59 proxies and 24 in person voters are present. A minimum of 47 votes combined proxies and in person votes required for voting to be valid.
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 8, 2018 board meeting, distributed to board members in advance, were approved with no changes following a motion to accept by John lewis and a second by Mike Johnson.
BALLOT CASTING CONCLUDED AT 3:00 PM (announced by the chair)
OLD BUSINESS
- Budget Shortfall Special Assessment – Jim Jones explained the need for the special assessment is to cover the unexpected increase in insurance premium due to the fire payout for 191, 201, and 231 Cascadia Loop and higher than planned legal expenses. The assessment of $140 per unit would be assessed on October 31, 2018 for owners of record September 30, 2018 with a due date of December 15, 2018..
- Recommendations from the Tree Maintenance Plan, completed May 2018, and plans to include in the Rules and Regulations as foundational documents for future maintenance of Sunland North tree inventory– Mike Johnson discussed the Arborist report that included three sections for maintenance, removal and Mike Johnson moved that the three sections be appended to the Division 17 Rules and Regulations as guidance for future Landscaping actions. John Lewis seconded the motion with the recommendation that these sections be adopted as Landscaping Best Practice upon inclusion into the Rules and Regulations as opposed to being rules and regulations. Then motion was approved unanimously by the board.
INTRODUCTION OF 2016-17 DIRECTORS AND 2017-18 CANDIDATES
Gary Fortmann introduced the current board member and thanked the current Board of Directors for its service. Candidates for the 2019-2020 open board member positions were introduced: Gary Fortmann (incumbent), John Lewis (incumbent) and Lawrence Charters.
NEW BUSINESS
- Architectural Control Form-Susan Hamman discussed the proposed new Hold Harmless Agreement Form for architectural changes being proposed. John Lewis requested that Logging numbers be applied to both Architectural Change Requests and Hold Harmless Agreements if not currently being done. Susan Hamman noted that logging was implemented under the new ACC Memorandum of Understanding with SLOA John Lewis moved for adoption of the revised Hold Harmless Agreement, Jim Jones seconded the motion and the board unanimously approved the new form effective immediately.
- Draft August Expense Report # — The preliminary August, 2018 Expense report shows our total expenses for the month were $15,149 which brings our YTD total expenses to $240,173. Operating Expenses are $15,424 higher than Budget due primarily to our 2018/2019 insurance premium and landscaping contractor expenses both being higher than planned which are partially offset by lower than planned minor maintenance expenses. At the end of August our Operating Funds totaled $44,862, and our Reserve Funds totaled $289,686.
- 2016 Financial Review – Jim Jones reported on the 2017 Financial Review conducted by Duane Wolfe of Garnero Smith Hurd & Miller of Port Angeles. 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. Jim noted that the current provider has under performed on promised deliveries and that a new vendor may need to be solicited in the future.
- 2016 Reserve Study –Jim Jones discussed the 2018 study noting that it was the second year of three and as such was a self conducted 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 reserve fund results from the self study indicate reserves are currently funded at 31% that is calculated as 328,421.
- 2018 Budget – Jim Jones commented on the 2019 proposed budget (mailed to owners in advance). The per unit assessment for 2019 will be $236.66 per month, $710 per quarter or $2840 annually. The budget increase over the 2018 budget is $66,000 for a total of $383,400. The total is based on 135 units of the potential 139 in Division 17.Expenses are projected to be up slightly across the board for the reasons previously discussed.
OFFICER, COMMITTEE, AND COORDINATOR 2015-16 SUMMARIES
President– Gary Fortmann
Update on the Colburn/Berger Lawsuit Against the Sunland Division 17 Owners Association
The Court issued the Attached Order and Memorandum Opinion regarding the Motions filed by both sides in the case [Attached]. The Court made various findings, including that the Colburns and Bergers took their Sunland Units subjected to Sunland Division 17’s CC&Rs. Among its findings, the Court concluded that the Board, and not the Unit Owners, is charged with facilitation of the fire remediation. The Court also held that the Board moved expeditiously in responding to the fire within the sixty days, as required by the CC&R’s. Importantly, the Colburns’ and Bergers’ attorney has recently agreed to dismiss Board President Gary Fortmann and Board member John Lewis from the lawsuit. Based on the Courts ruling, the parties are attempting to work toward an agreed resolution without the need for continued litigation.
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. This being said, Gary noted that there is still a need for some new volunteers to act as coordinators for several committees.
Secretary– David Walp
If anyone has any updated owner information forms please forward to the secretary so it can be added to the master hardcopy file. There are blank forms available at the sign in desk if you need to update your information.
Our community continues to grow with 130 units of the planned 139 units closed/occupied. There are 4 existing homes for sale. There is 1 new home pending and four new homes for sale/under construction in the Mount Baker area which leaves only four more units to complete build-out of the final phase in our development.
| Status Address | Year Built | Sold Price Closing Date | #Beds | Ba | Sq Ft | Price | Owner |
| For Sale 80 Mendel Dr | 2005 | $ | 2 | 2 | 1938 | $375,000 | Craig Baker |
| For Sale 20 Cascadia Loop | 2004 | $ | 2 | 2 | 1812 | $369,500 | Jeanette Brown |
| For Sale 231 Cascadia Loop | 2006 | $ | 3 | 2 | 1937 | $375,000 | Osborne |
| For Sale 181 Mount Baker Dr | 2017 | $ | 2 | 2 | 1897 | $415,000 | Estes |
| For Sale 241 Mount Baker Dr | 2017 | $ | 2 | 2 | 1897 | $399,500 | Charles Briggs |
| For Sale 271 Mount Baker Dr | 2017 | $ | 2 | 2 | Estes | ||
| Pending 280 Mount Baker Dr | 2018 | $ 1/15/2019 | 2 | 2 | Estes | ||
| For Sale 290 Mount Baker Dr | 2018 | $ | 2 | 2 | Estes | ||
| For Sale 321 Mount Baker Dr | 2018 | $ | 2 | 2 | Estes |
As of this meeting, there were 4 existing homes re-sold during this year and 7 new build homes sold since the beginning of the year
Please support our community – consider volunteering to be a candidate for the committee coordinator/chair positions for the Exterior Maintenance Committee. Donna Carson has agreed to become the coordinator for the Insurance committee.
A special thank you was extended to Tom Hamman, Barbara Ross, and Barbara Brooner, along with Elaine Farley, Fritz Field and Susan Hamman for the time and effort given to insure a successful annual meeting.
Treasurer – Jim Jones
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- Monthly Expense Report: The preliminary August, 2018 Expense report shows our total expenses for the month were $15,149 which brings our YTD total expenses to $240,173. Operating Expenses are
- $15,424 higher than Budget due primarily to our 2018/2019 insurance premium and landscaping contractor expenses both being higher than planned which are partially offset by lower than planned minor maintenance expenses. At the end of August our Operating Funds totaled $44,862, and our Reserve Funds totaled $289,686.
- Sound Community Bank CD: As approved at the August Board meeting, I reinvested the proceeds from a maturing 2-year CD into a new 2-year CD with a 2.27% APY.
- Fire Trust Fund: As shown in the Fire Trust Fund Summary report, we earned $164.83 in bank interest during August. At the end of the month the Fire Trust Fund balance was $529,133.
- 2017 Financial Review: We have received the final 2017 Financial Review report. The Accountant made no recommendations and concluded that our financial statements are in accordance with accounting principles generally accepted in the United States of America.
- Correspondence: I sent letters of introduction to two new owners since our August I also sent two late payment letters one of which is a second letter since the payment is over 60 days past due.
Vice-President–John Lewis
Secretary David Walp is stepping down and this is his last meeting. Thank you for your service.
Member-at-Large –Mike Johnson
Continuing to assist with Developed Landscaping and mole trapping. Valerie Holland is retiring for the coordinator and the committee. Gerry Hatler and Eric Manhard have agreed to co-chair the landscape committee.
Architecture Control Committee – Susan Hamman
The Architectural Control Committee received 23 exterior change requests from September 2017 to September 2018. One request is pending at the time of this report. The breakout of requests as is follows:
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- Five requests to add handrails to either the front or back porch, with two requests adding an additional step for safety purposes (one of the requests is pending at the time of this report).
- Five color change requests for buildings on the 2018 painting
- One solar
- One hot tub on back
- One exterior power inlet to run an emergency
- Two screen
- Five requests to enclose base of back decks with hardy board to prevent pest infiltration (all in the Baker neighborhood).
- One request to build a privacy/windbreak
- One request for a propane tank
- One request to replace existing mailbox with a security
- One request to replace a wooden
One request to add a wooden cedar deck was denied; only decks made from composite materials are allowed in Division 17.
In the spring of 2018, SLOA began requiring all exterior changes to any residence in Sunland to go through its Architectural Control Committee. Division 17’s and SLOA’s Architectural Committees have a memorandum of understanding for this process; an exterior change request is first reviewed and approved by Division 17’s ACC and then sent to SLOA ACC for final approval. Division 17’s community of homes are different than single family residences; within a Planned Unit Development (PUD), its exterior change requirements are equal to or more stringent than SLOA’s requirements for single family residences.
Division 17 2017 – 2018 Committee Members: Gerry Hatler, Susan Hamman, and Cindy Rhodes
Insurance Committee – Lindsay Busch
Lindsay reported that Div 17’s insurance was renewed with Community Association Underwriters (CAU) on May 1, 2018. The committee expects to stay with CAU for the next year due to the fire at 191/201 Cascadia Loop and related consequences. Lindsay agreed to remain as a committee member and Donna Carson has agreed to become the Chairperson.
Developed Landscape – Valerie Holland
There were issues with irrigation system including brown spots, worn sprinkler heads, low pressure and wrong locations due to shrub growth. The committee will be assessing these issues with plans for more permanent repairs expected in the future. Valerie is stepping down as Developed Landscape Coordinator. Future landscaping requests should be emailed to Gerry Hatler, Eric Manhard and Mike Johnson.
Exterior Maintenance & Inspection – TBD
We need to get started with Long Range Planning – initiatives need to get started to plan for 1, 5 And 10 year goals, starting with a member survey.
10. Greenbelt – Tom Hamman
There have been three mowings this year with the last one completed last week. Tom and Ken Niblett are continuing with the Poison Hemlock eradication when discovered during periodic walk aaround inspections. Some owners raised a concern about Horsetail and if there is anything planned for that noxious weed. Nothing is being done at this time.
Welcome Committee – Artie O’Kelley
Artie reported that 11 visits were made this year. Artie is stepping down from the coordinator and welcome committee.
Website – Barbara Brooner
Purpose of the Division 17 Website: The primary purpose of the Division 17 Website is to serve as an online “Owner’s Manual” for each Division 17 HOA member. The website also serves to identify the association and provides an overview of the community.
What’s On The Division 17 Website: there are ten “tabs” that run across the top of each page of the Website. A one-page summary was distributed to attendees at the Sept 12 annual meeting, as has been done each of the last several years.
Use Highlights Sept 1 2017-Aug 31,2018: Overall: Starting in January 2014, Division 17 opted in to a free Google service called “Google Analytics” that provides information about Website use. Without identifying any specific person, Google Analytics indicates that we had 2,576 “sessions” on the Division 17 Website during the past year, generated by 1,431 unique users. The average session lasted 3 minutes, with an average of 6.4 pages viewed per session. These statistics are for all users, from anywhere in the world. (Since the Division 17 Website was established (about 5 years ago), we have had a total of 8,466 sessions generated by 4,992 unique users throughout that longer time period, also with an average session duration of 3 minutes, and an average of 6.2 pages viewed per session.)
Conclusion: The Division 17 Website is not the board’s only communication channel with owners, but it remains a comprehensive and cost-effective one, if the information is kept accurate, laid out in a way that is easily accessible for users, and regularly promoted and highlighted the various features of our website.
Newsletter – Kay Hatler Nothing reported.
Sunland Water District – Ken Niblett
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- SWD reported that fee collections are up to
- SWD’s 2 wells produced 5 million gallons since june 2017.
- Sludge truck has proved to be very effective since
- ONE CALL is 100% Customers are requested to keep contact information current.
- Smoke testing is ongoing in upper
- Meter reader is using a bicycle to make rounds, more efficient than using a motor
- There have been 7 readings to date; no decision has been made regarding change to metered consumption. The decision could be delayed until 2020.
- There is a rate increased planned for 2019 following the budget development process is completed. An announcement will be forthcoming.
- Division 17 billing concerns raised by Jim Jones to SWD were reviewed and adjustments were approved by the commission. Jim should watch for communication regarding the adjustment.
- Ken is stepping down from his role as Division 17 representative effective September 30,
VOTING RESULTS
Gary Fortmann read the results of this year’s elections:
- Quorum: 76 present (59 Absentee ballots, 24 ballots cast at the meeting and 2 proxy designated ballots
- 2018 Budget – Approved 82 accept, 1 reject
- Financial Records Review Approved – Financial Review -80 and Financial Audit 1
- Special Assessment 73 votes to accept and 6 rejected and 4 not marked
- Elected to the Board of Directors –
Lawrence Charters 79 votes, Gary Fortmann 79 votes and John Lewis 79 votes..
- Special thanks to, Tom Hamman and Barbara Ross, this year’s election
BOARD ACTIONS MOTION:
MOTION: Jim Jones moved approval of the owners’ vote to approve the 2019 budget. The motion was seconded by John Lewis and unanimously approved by the board.
MOTION: John Lewis moved approval of the owner’s vote to review the 2018 financial records and transactions. The motion was seconded by Mike Johnson and unanimously approved by the board. MOTION: The Board approved the residents’ vote to elect Lawrence Charters and re-elect Gary Fortmann and John Lewis to the 2018-2020 Board.
Special Assessment was not passed due to not enough votes for a quorum on this issue. The board will readdress this issue at the October 2018 Board of Directors meeting
Confirmation by the board: the new board organizing meeting will be held at 1:00 PM on Thursday September 13 in the SLOA conference room.
HOMEOWNER FORUM
Hot water heater clean out and water consumption issues were discussed by unit owners.
ADJOURNED
The meeting was adjourned at 4:29 PM.
Prepared by
David Walp, Secretary