MINUTES OF THE MONTHLY BOARD OF DIRECTOR’S MEETING

SECTOR 2A AT SNOHOMISH CASCADE ASSOCIATION

7:00 PM  TUESDAY  OCTOBER 5, 2010

 

CALL TO ORDER / PRESENTATION OF PREVIOUS MINUTES

  1. Bill Steenis called the meeting to order at 7:09pm.  Present were Bill Steenis, Duane Oord, Steve Yandl, and Cheryl Carlson.  Trina Coleman arrived a few minutes later.

  2. Steve Yandl presented the minutes of the September 2010 meeting.  Duane moved that the minutes be accepted, Cheryl seconded and there was unanimous approval.

TREASURER’S REPORT

  1. Steve Yandl advised that the bookkeepers finance reports in Excel were posted on the web for review.  Steve presented our current financial status summarized below.

    1. Operation funds (checking):  $28,678

    2. Operation funds projected to end of year: $3,463

    3. Operational reserve (money market account): $24,003

    4. Capital replacement fund (CD, Long term reserve): $77,261 (after current year contribution is made).

  2. Steve reminded that the HOA is owed considerable fines from two members but actual collection amounts are impossible to forecast.

  3. Steve advised that officers or directors could review month to month expenditure tracking used as a budget forecast aid with data from January 2007 to present.

  4. Since the reserve study used as basis for the long term capital fund forecast the HOA spending $40k for extensive fence repair and painting in 2010 that the HOA is able to postpone, Steve asked if there were any objections to reduce the current year contribution to the long term fund from $9,880 to $6,380 to reflect the approximately $3,500 actually spent on painting and repairs.  There were no objections.  The long term analysis will need to be prepared again reflecting this current expense and the postponed future major maintenance.

  5. Steve asked Board consent to consolidate approvals for our new signature card so that all names appear on this single set of minutes.  There was unanimous approval for placing all the names here.  Approved for our new signature at Whidbey Island Bank (formerly City Bank) are Steve Yandl, Bill Steenis, Duane Ooord, Trina Coleman, Cheryl Carlson and Scott Fehr.

  6. Steve presented the proposed 2011 annual budget.  That proposed budget is to be posted on the HOA web site and considered part of these minutes.  Changes from the 2010 budget are summarized below.

    1. Increase dues from $325/year to $335/year ($2,745 increased collections).

    2. Interest income decreased by $1,150.

    3. Fees income decreased by $250 (although we could get a windfall).

    4. Landscape maintenance, regular contract, increased by $1,464.

    5. Common area repairs decreased by $394.

    6. Newsletter expense increased by $500.

    7. Discretionary giving (tips) decreased by $500.

  7. Trina Coleman moved that we accept the budget for presentation to the entire membership for approval and that dues be increased from $325 to $335.  Duane Oord seconded and the motion passed 4 to 1.  Cheryl Carlson was the dissenting vote.  Cheryl’s objections were based on the current challenging economy and a desire to find expense cuts rather than raise dues.  It was pointed out that we pay a fair amount less than those neighboring HOAs like Gold Creek 1 who do an adequate job maintaining their common areas.

  8. We had a brief discussion on our annual assessment history which is summarized below.

    1. 1997-2001     $180

    2. 2002               $265 ($180 + $85 special assessment for locking mailboxes)

    3. 2003               $285 ($215 + $70 special assessment for fence painting and repairs)

    4. 2004               $255 ($230 + $25 special assessment for long term capital fund)

    5. 2005               $300 ($265 + $25 special assessment for long term capital fund)

    6. 2006               $300 (started treating contribution to long term fund as expense)

    7. 2007               $310

    8. 2008               $310

    9. 2009               $325

    10. 2010               $325

    11. 2011               $335 is being proposed to the membership

      MAINTENANCE REPORT

  1. Cheryl Carlson reported that Brian Skinner had completed primer application on newly repaired sections of fence.

  2. We discussed our plans to hold homeowners liable for future common area fence repairs when it’s clear their neglect contributed to fence failure beyond normal wear and tear.

  3. Steve Yandl reported that a significant leak was discovered in our sprinkler system at the boat park, costing us several hundred extra on our water bill.  Skinner Landscape will be repairing the pipe as well as blowing clear lines before we get a hard freeze.

  4. Cheryl indicated that she would like us to advertise in the newsletter for volunteers to do some landscape improvements in the two unkempt beds at the entry to Sector 2A from Willis Tucker Park.  Skinner’s bid to do the work was too high to consider paying to do the work since the property doesn’t actually belong to the HOA and long term status of the beds depends on the County.

    ARCHITECTURAL CONTROL COMMITTEE REPORT / CC&R VIOLATIONS

  1. Steve Yandl reported that a letter had been written to the homeowner reported last month for having several large storage tents in back and side yards.  It appears one tent was removed but a second remains.  A certified letter to confirm that fines have begun to accrue will be sent out as a reminder to the member.

  2. A paint job approved at the last Board meeting was discussed.  The approval given had conditions regarding which color could be used for which house element and those conditions were not adhered to.  A number of complaints have been received.  It was decided that the ACC would generate a letter to the member asking that the problem color be changed.

  3. Bill Steenis reported that during several drive through inspections there were no significant new CC&R violation issues noted.

    MERIT AWARD PROGRAMS

  1. Bill Steenis reported that Yard of Merit was over for the season and all signs retrieved.

  2. Bill said holiday decoration judging would be December 13 with the same protocol for judging as last year.

    DISPUTES OVER UNAPPROVED RENTALS

  1. There were some preliminary discussions between our lawyer, Sherman Knight, and the attorney for Aaron and Shellie Guimont, Thom Graafstra over a possible settlement.  We had shared our guidelines with Mr. Knight for what we could accept and were waiting for a response from Mr. Graafstra.  [Since the meeting, Mr. Graafstra has indicated that Aaron Guimont is no longer interested in a settlement and wants to go to trial]. 

  2. The house that had been rented out by the  Sharma family remains for sale with the tenants vacated.  The claim of lien on that property is $81,700 which may well complicate any sale unless they get a great offer or come to some settlement with the HOA prior to receiving an offer.

    NEW BUSINESS

  1. Steve Yandl reported that he will still be recovering from cancer surgery at the time the November meeting would normally be held.  After discussion, it was decided that the meeting wouldn’t be held unless CC&R or other issues that shouldn’t be postponed came up.  In that case, Bill Steenis would notify the Board as if a special meeting were being held and the meeting would be at the Steenis house.  If that doesn’t happen, the next regular monthly meeting for the Board would be December 7, 2010.

    MEETING ADJOURNED AT 8:12PM.