LODGE LOG Blue Lake Springs Homeowners Association FEBRUARY 2018

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1 LODGE LOG Blue Lake Springs Homeowners Association FEBRUARY 2018 Happy President s Day 1

2 2018 Calendar of Events Tuesday Evening Bridge Tuesdays at 7:00 p.m. Patty Enos Thursday Morning Duplicate Bridge Second Thursdays at 9:30 a.m. Bev Vasquez Friday Morning Bridge Every Friday at 9:30 a.m. Debbie Kushnir Bridge Lessons 1st and 3rd Wed. at 1:00 p.m. Bobbie Neely (Please note for all bridge groups, please call ahead to save a spot) Mahjong First and Third Thursdays at 10:00 a.m. Leni Salayko Texas Hold em: Second Thursday at 2:00 p.m. (September 2017 through May 2018) Brian Raley Potluck Second Wednesdays at 5:30 p.m. (September 2017 through May 2018) Dodie Raley If there is any member who knows of someone who may need a get well card or sympathy card, please call the Sunshine Lady, Sheila Silcox at WELCOME HOMEOWNERS Alfred Sanderson, Jr. Unit 07 Michael & Deborah Jones Unit 01 John & Kimberly Young Unit 11 Kathleen Stirtz Unit 08 James & Jamie Byron Unit 08 Chris Krueger & Laura Halpin Unit 11 G. McLean & J. Kalesnikoff Unit 11 Jared & Maria Nussey Unit 11 Jerome & Pamela Kenyon Unit 03 Guy & Kristina Hernandez Unit 03 John & Tracey Maytum Unit 08 Mark Lord Unit 09 Daren & Vanessa Morris Unit 03 2

3 SNOWFLAKE LODGE HOURS: FRIDAY/ SATURDAY 5:00 pm - 8:30 pm (year round) Snowflake Lodge Restaurant is open year round Friday and Saturday nights, to members and their guests. It is a full service restaurant serving an extensive, ever evolving menu featuring the finest food on the mountain prepared by Chef Marc Kirby and his talented team. With a full service dining menu, and a more casual Lounge menu that requires no reservation, you are sure to find your new favorite! Although alcohol is not served, you are welcome to bring your own wine with no corkage fee. Snowflake Lodge always offers complimentary soft drinks. We hope to see you in the restaurant soon! For Dinner reservations please call Walk-ins will be accommodated as space allows. 3

4 BLS Homeowners, This month s Lodge Log features several graphs that further illustrate and explain our BLS financials. One graph shows the need to increase our Asset Reserve Account to an acceptable level of 50 percent by As previously stated, this account has been underfunded for some time. The other graph shows a side by side comparison of 2017 actual expenses to 2018 budgeted amounts. This side by side comparison graph of 2017 actuals to 2018 projections shows the dedication of the Board and the BLS Management team to keep expenses in line in spite of rising costs. Please review the notes with each chart. A special thanks to Director Bruce Utter for compiling these charts. The Board has been requested to provide information regarding the lawsuit. A letter explaining the lawsuit is being published in this month s Lodge Log. The attorneys cautioned against saying more until the case is over. The lawsuit has cost the Association approximately $250,000 to date and resulted in a $50.00 per lot increase for the 2018 Assessment. The trial is scheduled for the first week in May At the January Board meeting we had several members who expressed concern over the increases and changes in the fee structure for the BLS Seasonal Family Pass. In light of these comments, the Board directed the Summer Recreation Committee to review the new pricing structure of the BLS Seasonal Family Pass and report back to the Board by the February Board meeting. Your Board of Directors welcomes all comments and questions from our membership. It was refreshing to see approximately 20 members attending our January Board meeting. Our next meeting will be February 17, 2018 at 9 am in Snowflake Lodge. Chris Gosswiller, President 4

5 Your Money at Work Funding the Asset Reserves Asset reserves are funds set aside for the planned purchase, repair, or replacement of major assets (those over $1,000 in value). A recent study compared the sales price of units in 100 comparable homeowners associations to their reserve fund strength measured in percentage funded. This study showed that market values were 12.6% higher in associations with strong reserves (over 70% funded) than in associations with weak reserves (less than 30% funded). Doing the math, this means that the property value of a $300,000 home would increase by $37,800 if the association took reserves from weak to strong. In this sense, funding our reserve account is not an expense, but rather an investment in your home with a substantial return. Your Board recently adopted Revised Policy 500A-17, setting the goal for Major Asset Reserves of 50%, and further set the target for achieving this goal within the next 8 years. The chart below shows our planned Asset Reserve Percentage and the Member Contribution necessary to achieve this funding level. Looking at 2016 and 2017, it is apparent that the contribution level was just not enough to grow our reserve fund. We voted to make a step increase in 2018, followed by much more modest increases in subsequent years. The plan calls for reserves to increase from the current level of 21% to the target of over 50% within 8 years, with the member contribution increasing from $75 in 2018 to $92 in 2025, a 2.6% CAGR over the 8 year period. Asset Reserve % Funded and Member Contributions 5

6 Your Board has adapted a similar strategy for increasing our operating reserves, which covers those items with a value of under $1000. This is categorized as part of our Administrative Expenses. Year-over-year Budget Comparison The year 2017 was in many ways (we hope!) an extraordinary one from a financial and budgeting point of view. It was a winter we won t soon forget, with many repairs and upgrades necessary. The lawsuit has dragged on with expenses mounting. New minimum wage laws have increased our labor expenses. Nevertheless, a comparison of our 2018 Budget to 2017 Actual expenses will show that your Board and BLS Management have worked hard to keep expenses in line. Comparison, 2018 Budget to 2017 Actual Expenses A review of this chart will show that we have budgeted increased expenses for Administration and Reserve Fund, with decreased expenses for Legal, Maintenance, and Security. Other categories are essentially unchanged from last year s actual expenses. The increase in Reserve Fund is explained in the Asset Reserves section above. The increase in Administrative Expenses has a similar explanation, since the Operating Reserves are a significant portion of the overall Administrative budget. 6

7 Blue Lake Springs Homeowners Association Re: Litigation Status Report Dear Members: This letter is intended to advise you of pending litigation involving BLSHOA. The Association was sued by a homeowner claiming that the current method of allocating assessments is improper. This particular homeowner owns multiple lots and claims that owners of multiple lots should only be charged one assessment. His claim is based on his theory that an owner can only hold one membership and so can only be charged one assessment. He also claims that because one year the Association agreed not to charge two assessments to anyone owning two lots that we must forever continue doing so. We disagree with the owner s self-serving claims and think adopting them would be unfair and harmful to our community. Under California law, our Bylaws and CC&Rs, the Board, acting for the Association has the right to charge an owner an assessment for each lot they own. Except for one year in 2009 when the member bringing the lawsuit was on the Board the Association has charged assessments in this manner for over fifty (50) years. Any other formula would require all owners to subsidize the interests of those with multiple lots and would also dilute voting power since multiple lot owners, such as the homeowner that brought this lawsuit, would get one vote for each lot owned. The lawsuit has been pending since August 2015 and the Association has incurred considerable expense defending the action. The trial date has been continued multiple times, mostly because there are not enough court rooms to try all the cases that must be tried in our county. The current trial date is set for May 2018 and we are hopeful that we can finally have the chance to obtain a successful conclusion to this lawsuit. We will keep the membership informed of developments after the trial is completed. P.O. Box 712, Arnold, California 95223, (209) , Fax (209) blsoffice@caltel.com 7

8 VOLUNTEERS IN PREVENTION (VIP) As I drive through Blue Lake Springs with this wonderful weather we've been having, even though we need rain and snow, I've noticed there is a lot of property cleaning being completed. As your BLS VIP Coordinator, I truly appreciate your efforts. Again, I am going to remind you that if you haven't already contacted a lot cleaner, now is the time to do so and get on their schedule. For all of you homeowners who have cleaned your lots of all the bark and debris, I know it has been a costly expense. Hopefully, we will never have to go through this again, but it makes it so much easier to clean up our properties once the bark and logs are gone. If any of you...and this includes new homeowners...have any questions or concerns regarding the 100 foot defensible space (CALFIRE PRC4291) go to our BLS website blsha.com under the Fire Prevention tab and you will find a wealth of information there. If, after reading all the information on our website regarding fire prevention, you still have questions or concerns about what is required, please the office and they will get in touch with me. I will then meet you at your property and go over what is required with you. FYI...I have been installing the green address reflective signs for a number of our homeowners and if anyone is still interested in getting a sign from the Sheriff's Department, I will install it. The order forms are on our website under Fire Prevention. Jimmy Cooke, BLS CALFIRE VIP Coordinator 8

9 9

10 Texas Hold em Poker Texas Hold em Poker started again in September for Blue Lake Springs Homeowners and their guests. All levels are welcome. Age: Adult Check in 1:30 PM Location: Snowflake Lodge Date: 2nd Thursday for the Month Come join the fun! Reservations required for seating, Brian Raley, POTLUCK We rang in the New Year with Let It Snow, hoping to put a bit of pressure on the powers that be. Sad, melted snowmen pleaded their case for more precipitation. A big thank you to our callers Kaaren Babb, Kathy Enea, Anne Evans, Linda Penney, Sheila Silcox, Bev Vasquez, Dana Weir, Maureen Dinnocenzo and Michele Stahlberg who made the many contacts with members to attend our January Potluck. Our kitchen committee, chaired by Debbie and Israel Kushnir, with help from Linda and Paul Penney, Elena and Rich Milan and Debbie and Larry Young, who all did a fantastic job of getting all the dishes out and keeping the long line moving. Our 50/50 went to Lee Vierra, and our Black Out Bingo game winner, Roger Hawkins. In other games our winners were Anne Evans, Steve Pollock, and Joan Allday. Kevin Andel emceed Bingo in fine humor and was assisted in pulling the bingo numbers by Brian Raley. Thanks so much to Vernon for keeping us safe and to Thomas, for washing up all of the potluck dishes. Looking forward to seeing another big crowd at our next potluck, February 14, That s Amore, celebrating Valentine s Day and of course delicious Italian cuisine. Dodie Raley, Chair Sue Pollak, Co-Chair 10

11 Blue Lake Springs Homeowners Association Office Hours Tuesday-Saturday ~ 8:30 a.m. to 4:00 p.m. Office Phone: (209) ~ Fax: (209) blsoffice@caltel.com Post Office Box 712, Arnold, CA Web Site: Snowflake Lodge Restaurant Friday and Saturday 5:00 p.m. to 8:30 p.m. Please Call for Reservation (209) Summer Recreation (Memorial Day to Labor Day) Recreation Office Phone (209) blsrecreation@caltel.com Board of Directors Meetings Third Saturday, 9:00 a.m. Board of Directors President, Chris Gosswiller Administration General Manager, Tony Abila Assistant General Manager Amber Meyer Snowflake Lodge Restaurant Executive Chef, Marc Kirby Facilities Facilities Manager, Mark Owens Summer Recreation Summer Recreation Director, Judith Anderson Assistant Recreation Director Veronica O Boy Security Vernon Nicholson Vice President, Bev Vasquez Treasurer, Guy Pollak Secretary, Jimmy Cooke Director, Bob Podesta Director, Denny Clemens Director, Bruce Utter Your Association welcomes letters from members and well publish them in the Lodge Log on a space available basis. If necessary they will be edited for style and shortened to 200 words. Letters will not be returned to author. Formal policy is on file at the Association office. Members should request a copy of the policy If they are considering submitting a Member to Member Blue Lake Springs Mutual Water Company Board Meetings: Second Saturday, 9 a.m. Office Phone: Emergency: Post Office Box 6015, Arnold, Office is located next to the Arnold Post Office at 1011 Blagen Road Production of the Lodge Log: Blue Lake Springs HOA Staff 11

12 February 2018 Sun Mon Tue Wed Thu Fri Sat 1 Mahjong 10:00 am 2 Bridge 9:30 am Bridge 7:00 pm 7 Bridge Lesson 1 pm Lions 6:00 pm 8 Bridge 9:30 am Texas Hold em 2:00 9 Bridge 9:30 am Bridge 7:00 pm 14 Potluck 5:30 pm 15 Mahjong 10:00 am 16 Bridge 9:30 am 17 BLSHA Board 9am 18 Crab Feed 4:00 pm-8:00 pm 19 Private Party (Bar) 11:00 am-2:00 pm 20 Sirs 11am Bridge 7:00 pm 21 Bridge Lesson 1 pm Lions 6:00 pm Bridge 9:30 am Bunco 6:00 pm 27 Bridge 7:00 pm 28 12

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