MEETING MINUTES MULTI-PURPOSE ROOM

Transcription

1 MEETING MINUTES MEETING OF SVCA FINANCE COMMITTEE WEDNESDAY, JULY 11 TH 2018, 6:30 PM MULTI-PURPOSE ROOM I. CALL TO ORDER a. The meeting was called to order at 6:37 p.m. II. ROLL CALL Finance Committee: Carol Houlton, Chair; Eric Trower, Board Member; Tony Louzao, Paula Birchler, Collin Morrow, and Penny Carter. Rick Gray had an excused absence. Sudden Valley Staff: Mitch Waterman, General Manager; Jennifer Spidle, Interim Accounting Manager. Community Members: 1 III. ADOPTION OF AGENDA a. The agenda was adopted as submitted by acclamation. IV. APPROVAL OF MINUTES a. No Minutes Presented. V. CAPITAL REQUESTS a. No Capital Requests VI. CONTINUING BUSINESS a. Clubhouse HVAC Repair Discussion i. The GM stated that normally a repair request would not come to the Finance Committee, however, the repair cost exceeds the capital threshold of $2,500 therefore he needed to acquire permission to spend Capital funds on a maintenance repair. ii. The GM worked with 3 contractors to try and obtain bids and only one contractor was fully responsive - to do significant repair on the AC. There are two air compressors and the 30-ton compressor that cools the second floor of the Clubhouse has a leak. SVCA Finance Meeting 7/11/18 1

2 1. He would like permission to spend the $6, in order to repair the compressor. 2. The GM noted he did not go looking for additional bids as Barron Heating and Cooling has the SVCA contract for doing repairs on the HVAC. iii. Currently El agave is out of Air conditioning in the middle of the summer. iv. Director Trower inquired as to why the item had not been presented as a Capital Request. 1. Jennifer stated regular maintenance items are paid through operations even when they exceed $2,500 but because this is a major repair, lasting more than three years, and upgrade it should be spent with Capital Funds and it could be written as a Capital Request. 2. Director Houlton requested the GM present the repair on a Capital Request for the Board of Directors Meeting and it will include a 5% contingency. b. SVCA Management Recommendations to Establish List of Enduring Corporation Assets i. The GM proposed the Finance Committee determine if they concur with the proposed list on page 7 of the agenda packet and in turn, make a recommendation to the Board of Directors. ii. The GM recommended that funds no longer be put towards maintaining Barn 8 and the Maintenance building unless there is a safety requirement. The buildings need to be replaced. iii. The Finance Committee agreed with the list as presented. c. Review and Approval of 2018 CRRRF List Handout i. The provided list had been determined by Sudden Valley Managers ranking their items of importance followed by the CRRRF Managers (Rick and Tony) ranking items using a specific matrix. ii. According to the Reserve Study for the year 2018, a total of $2,695,632 is needed to complete all scheduled repairs and replacements. Some of that amount is currently funded in 2018 and some is deferred per the 2018 CRRRF List. iii. The GM announced his goal was to approve the presented 2018 CRRRF Plan, write individual requests for each item based on: risk, probability of failure, SVCA Finance Meeting 7/11/18 2

3 impact to the Association, and begin purchasing items beginning with the highest priority and working downward. 1. This means only half of the items that need to be addressed in 2018 will be completed as the funding is so limited; apx. $342,000 is available in CRRRF per the Financial statement projections and the $600,000 carry-over requirement. 2. The GM felt that next year SVCA should look at a minimum change in the CRRRF dues rate from $10.19 to $20/month. iv. The GM would like to suggest to the Reserve analyst that the Reserve Plan no longer be built of components but looked at holistically; rather than replacing electrical, plumbing, structural items, look at what it would cost to replace the building and when. 1. Jennifer noted they would like Finance to agree that the items listed should be looked at holistically when presented to the Board, which is why items had been removed from funding priority v. Penny Carter noted there was an error on the handout that the Adult Pool resurfacing showed a date of 2019 when really it had been done this year. 1. Jennifer would correct the date error. vi. Penny Carter wanted to identify the dollar amount that would be deferred to a specified year if a project is not addressed in the year that it is recommended, like the Roads Plan shows. 1. The GM noted that we do not have that specific amount. But it could be discussed with the Reserve analyst. d. Review and Approval of 10-Year Integrated Roads Plan Handout i. The expected road reserve collections jump in the year 2019 from $606,655 to $1,584,943 million: this would be the result of a change in dues from $17.29 to $45 per month. ii. The grand total for the roads work is $15,301,000 over the next 10 years. 1. Construction management, taxes, and contingency have been included in the $15 Million. SVCA Finance Meeting 7/11/18 3

4 iii. The biggest project is currently the Marina Parking lot; design $309,515 and project totaling $2.24. As an option, it could be funded by a loan with an 18- month drawdown and 4 years of payments out of the Roads account. If the project were to be funded without a loan the $45/month would be insufficient. iv. It was noted that the Roads Reserve collection should have reflected the annual amount of $356,132. Jennifer would make that correction. v. Jennifer would send historical dues collection percentages to the Committee. vi. It was noted updates needed to be made to the Roads plan prior to being distributed to the Board of Directors. Jennifer would make those updates. vii. Penny Carter suggested there be a line item included on the Roads Plan showing the suggested dues increase. viii. The GM noted that under Construction Contingency the 20% contingency needed to be adjusted to 28.5% in order to include sales tax. MOTION: Collin Morrow moved that the Finance Committee recommend the Board of Directors accept the 2018/19 Wilson Engineering recommended plan out of the 10-year plan with the recommended dollar amount to fund those two years with the understanding there will be minor changes to update the plan. Tony Louzao seconded the motion and it passed unanimously. MOTION: Collin Morrow moved to the Finance Committee recommend the Board of Directors accept the 2018 CRRRF plan as written until funds are no longer available. Tony Louzao seconded the motion and it was approved unanimously. MOTION: Penny Carter moved that the Finance Committee recommend the Board accept and establish the SVCA Management Recommendation List of Enduring Corporation Assets as the control basis for the corporation s core facilities and assets that require being sustained. Collin Morrow seconded the motion and it passed unanimously. VII. NEW BUSINESS a. No New Business VIII. FINANCIAL STATEMENTS a. Financials will be presented at the regular Finance Meeting. SVCA Finance Meeting 7/11/18 4

5 IX. MEMBER QUESTIONS AND COMMENTS a. There were no member questions and comments. X. CLOSE a. The meeting adjourned at 9:11. Action Item List Task Create HVAC Capital Request for BOD Meeting Correct error on CRRRF document for the Adult Pool Make noted corrections to the Roads Plan Send historical dues collection rates to the Committee Correct the Adult Pool date error on the CRRRF Plan Assignee Assigned Due Completion Mitch N/A Mitch N/A N/A Comments SVCA Finance Meeting 7/11/18 5