Somerset Homeowners Association Annual Board Meeting Minutes April 1, 2015

Transcription

1 Somerset Homeowners Association Annual Board Meeting Minutes April 1, 2015 APPROVED May 17, 2016 Board Members: Mike Atkins, David Edwards, Cindy Buck Property Manager: Al Orendorff - Landscape: Garret Quackenbush Guest: Vince Hirsch (BoCo Firm) Members: Buchholz, Budacz, Chirikos, Chopra (2 properties), Copenhaver, Eggers, Grampp, Grothus, Ingram, Don Johnson, Knudtson, McPherson, Oelsner, South Point Proxies: Barnes, Bond, Burden, Caruso (8073), Dancik, Dulin, Erb, Heimann, Hockmuller, Irwin, Kalm, Leing, Lindau, Reuter, Riegel, Santa, Smith, Uhler - 37 members present by proxy or in person. Meeting Started: 7:05 PM BoCo Firm Presentation: Vince Hirsch provided a presentation and update on the Boulder County Roads issues, road conditions in Somerset, funding and the status of the BoCo Firm lawsuit. Annual Meeting: Proof of Notice: - Notices were mailed at least 10 days prior, and signs were posted a minimum of 24 hours prior to the meeting. Based on the number of attendees and proxies gathered (37), the meeting meets the minimum requirement of 20% or 33 members. Motion to approve the 2013 Annual Meeting Minutes: Dick Eggers, 2 nd Dave Knudtson Approved. A member asked if we could do annual or semi-annual billing. Currently the HOA bills quarterly, however any homeowner may pay the entire annual assessment. Member Education: Al Orendorff provided and overview of the legislated changes affecting HOA s in HB regarding collection of delinquent accounts requires the HOA to adopt a policy within the state mandated requirements. In January 2014, new legislation required HOA s to amend their Collection Policy. The HOA is to provide delinquent members (greater than 30 days delinquent) notification, offer 14 days to bring account current, offer six Page 1 of 5

2 month payment plan (1 time only) including any late fees or penalties, prior to turning over the account for collection. - A copy of the policy can be found on the HOA web site. HB requires ALL HOA managers to be licensed by the State of Colorado by July 1, Manager s must meet defined educational requirements, pass a State exam and maintain continual education. Further, managers are required to carry liability, errors and omissions as well as fidelity insurance. Licensing applies to all managers or anyone who does two or more functions and is paid for their services by an HOA. A Year in Review Somerset Infrastructure 19+ acres under irrigation 7+ acres non-irrigated 6 major storage / feature ponds with 8+ acre feet capacity 7 irrigation pumps 5+ miles of 3-inch irrigation mainline 16 irrigation clocks 225+ irrigation zones 2,200+ heads and micro-sprays Use 60+ acre-feet of water annually Own rights for XX acre-feet of water 6+ miles of fencing (perimeter & common-shared) 95,000 sq-ft of paved pathways 30+ gardens available to be re-claimed Under-drain issues 35 Monuments - (4 Extra Large, 12 Large, 19 Small) 2014 Accomplishments Rebuilt waterfall pump system damaged by flood Numerous other projects as a result of the flood Replaced/upgraded lights at Hwy 52 to LED Replaced/upgraded lights at Niwot Road monuments to LED Repaired the under-drain on Niwot Road Added throttling valve to increase flow at main waterfall Repair pond liner in Pond 2 Page 2 of 5

3 Challenges: 2015 Maintenance and repair of aging infrastructure Significant unfunded project backlog Increasing unit costs for utilities and services Flat revenues Inadequate financial reserves Insufficient water rights (own 44.5 shares, use 60+ shares) SHOA Funding Strength Dues of $325/quarter established in 2005 Inflation has averaged 3-4% annually since 2005 If dues had been adjusted annually for inflation: 2005 $325/quarter 2015 $ /quarter SHOA funding strength is 35-48% lower than it was in 2005 Reduces ability to fund basic operating expenses Limits ability to fund enhancements to property Prevents any systematic funding of financial reserves Key Operating Objectives: Continue to manage expenses aggressively Continue to defer non-essential projects Attempt to minimize drawdown of financial reserves Assess opportunities to obtain additional water rights, if they become available on the market (unbudgeted) Major Projects for 2015 Repair Sawtooth under-drain ($15,000) Repair leaking Indian pond ($15,000) Refurbish waterfall electrical panels ($4,000) Repair pump house ($3,000) Replace waterfall pump motor ($2,400) Refurbish Niwot Road monuments ($18,000) if funds are available TOTAL ($57,400) Page 3 of 5

4 Reserve Fund Analysis: Reserve Fund Analysis conducted in 2014 Industry-accepted measures of strength: 100% Funded: - Ideal 70-99% Funded: - Goal 31-69% Funded: - Fair 0-30% Funded: - Weak SHOA Reserve: 6% Funded Based on $91,000 reserve balance 100% Funded: $1,476,000 70% Funded: $1,033,000 Typically, Reserve Contribution makes up 15%-40% of an HOA s total budget Reserve Fund is for Capital Replacement items that do not normally occur on an annual basis. Currently, SHOA Reserve Fund is woefully under-funded. Any funding of Reserves reduces funds available for basic operating expenses. Next Steps: Conduct town hall meeting to discuss Reserve Fund Analysis results Develop options for building reserves to an acceptable level Modify HOA funding structure to build an acceptable reserve position Homeowner Input/Comments/Questions: Owner believes that sooner or later if the SHOA cannot resolve the declarations, we will need to let a court decide. Owner feels we should make one more attempt to work through the membership; if that fails, take it to a judge. Owner could not understand why someone would not vote, especially if a non vote, results in a no vote Another owner asked about budgeting if water becomes available. Board answer was to see where we are on the budget. Owner commented on the new LED lighting and thought it was a good fix, appreciated the work on the reserve study and looking forward to having the Sawtooth drainage repaired. Member commented a summary page showing each item from the reserve would be a good idea. Board responded that a summary is part of the reserve study report. Also will the Board provide options to the membership? Possibly post the reserve study on the web site? Has the Board taken a position on the County subdivision road issue? Board responded that they have provided opportunity for both sides to inform homeowners; it is up to each resident to make their own decision. How much did the reserve study cost? - $3,500, and has anyone thought about doing a similar study with water. Does the HOA want to xeriscape some areas? Page 4 of 5

5 Is there a dispute between the Somerset HOA (SHOA) and the Somerset Swim and Tennis Club (SSTC)? Board responded that the SSTC is a totally separate entity and not part of the SHOA. Election of Officers: Four positions were officially open on the Board (Ajay Sreenivas, David Edwards, Mike Atkins and Shalia MCPherson). Ajay, David and Mike decided to run again for election, Shalia did not seek re-election. Members showed significant interest in being active on the Board. Kay Ingram, Anthony Chirikos and Kiran Chopra were elected to the Board. The 2015 HOA Board is now Mike Atkins, David Edwards, Ajay Sreenivas, Cindy Buck, Anthony Chirikos, Kay Ingram and Kiran Chopra. 8:37 PM - Motion to adjourn: - Herb McPherson, 2 nd Janix Hogle - Approved Page 5 of 5