Everette Estates Homeowners Association. Board of Directors Meeting Snow Branch Library, Conference Room #2 Spotsylvania, VA 22553
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1 Everette Estates Homeowners Association Board of Directors Meeting Snow Branch Library, Conference Room #2 Spotsylvania, VA June 14, 2017; 7:00pm to 8:45pm Meeting Notes ATTENDANCE Board of Directors: Crawford Jencks, President; Claudette Bachini, Secretary Architectural Review Committee: Nat McCague HOA Members present: Helen Jencks, Paul Murph OPEN FORUM Board of Directors Activity Update Crawford provided a summary of Board activities since the February 22, 2017 meeting. Please see the notes below from the Board of Directors Meeting for information and decisions relating to the following: the Budget, the Capital Reserve Study, Peek s contracts, the status of Protective Covenants Compliance in the neighborhood, Maintenance issues and other business items. Crawford presented follow-up information on an issue that came up at the February meeting regarding our tax-exempt status. To clarify, we are not a tax exempt organization and, therefore, we have no certificate. However, as an HOA, we have certain income that is tax exempt. What we have been doing all along is in accordance with IRS regulations. Crawford announced that he and his wife Helen attended, for the second year in a row, a seminar on HOA legal matters presented by our attorney s law firm Chadwick Washington. Thanks, Crawford and Helen. Crawford also mentioned that the Murph s and Jencks attended the musical, Saturday Night Fever, at the Riverside Center Dinner Theatre, an event arranged by our Social Committee. It was unfortunate that more neighbors were not able to attend. Member suggestions/comments/questions With a small attendance, this portion of the meeting evolved into an informal discussion which centered mainly around the need for others in our community to help with HOA activity and decision-making. Crawford reminded us of a comment from the February meeting when a member questioned the Board s decision-making ability (or power) as being so few deciding everything for the many. The Board, in fact, agrees and welcomes others to participate in the process. Later during the Board of Directors Meeting and to this end, Crawford will suggest the creation of two new committees and a possible restructuring of the Board.
2 Claudette Bachini announced that she would not be running again for Secretary. Please consider taking on this volunteer position. Claudette will be happy to assist the next Secretary during the transition and believes that the job will be easier now that policies and procedures are in place, and that many of the major issues which confronted our young HOA have been resolved. Crawford also expressed concern about a future time when he may be unable or no longer wish to serve as President. To date, only he has held this position. One suggestion was to establish a Board position for a member interested in serving as the next President. This is a common practice in other HOAs. Further discussion on this idea took place during the Board Meeting. BOARD OF DIRECTORS MEETING Crawford called the meeting to order. The Board approved the meeting notes of February 22, Treasurer s Report Christal Webber, our Treasurer, was unable to attend, but did submit a report to the Board. All HOA dues for 2017 have been paid in full. Thank you to all the homeowners. The following are bills totaling $ which have been paid in 2017: State Corporation Commission, Annual Registration Fee Common Interest Community Board, Annual Fee Attorney s Fees Peek s Nursery, Lawn Mowing ( ), Stormwater Maintenance ( ) DMA Interactive Reserves (Capital Reserve Study) Our checkbook balance as of 05/31/2017is: $15, Our Capital Reserve balance is: $10, ARC Report Committee Chair Nat McCague presented his report of ARC activity since the February meeting. Two applications for fences were received, both from Everette Court. One was approved and the fence has been installed. The second will be reviewed pending modifications to the original plan. Board/HOA Business Discussion Budget Status For the 2018 Budget, Crawford is looking for some input and assistance from a small group, or Budget Advisory Committee, which might meet once or twice before the Annual Meeting when the preliminary Budget is presented. In part, his request is a response to concerns raised by a couple neighbors at our last Board meeting that dues may not be high enough to accommodate future expenses. Although the recently completed Capital Reserve Study will contribute greatly, Crawford would welcome the advice in preparation of the 2018 Budget. Paul Murph has volunteered to participate. A few others would also be welcomed. Please let Crawford know if you are interested in joining this group. The effort might require 1 or 2 short meetings.
3 In addition, Crawford asked homeowners to please note that a Preliminary Budget is presented at the Annual Meeting and that the Final Budget is discussed and passed at the November Board of Directors Meeting. All comments, questions and concerns should be brought to the Board s attention at that time. Capital Reserve Study, Results The Board is pleased to report that our first Capital Reserve Study, a state requirement for all HOAs every five years, has been completed. The firm used was DMA Interactive Reserve Specialists out of Richmond. The 30-page document serves as a guide for annual contributions to a Capital Reserve Fund based on the timing and replacement costs of the community s assets, those assets being primarily the Stormwater Management Facilities and the entrance fence. The report has broad implications as we go forward with future budgets and assessments for homeowners. If anyone is interested in seeing the report, please Crawford at crawfordjencks@yahoo.com and he will forward a copy to you electronically. Based on this study, there was a side note here from the Board on our community s assets. We often hear comments that, because we do not have amenities such as a pool or clubhouse, the dues should be lower than what we have assessed in the past. The reality is that we own large amounts of land which we all like to see mowed and looking neat. We also own stormwater facilities which need maintenance, and we have a great deal of fencing in need of repair and re-painting. And we are only 32 homes. Peek s Contracts As noted at the February meeting, Crawford signed a three-year contract with Peek s. He also negotiated with Peek on an additional contract to maintain the newly cleaned up detention basins. The total annual cost is $2, for maintenance to be performed twice during the year on each basin. This expense was taken from the $9, which had been budgeted last year in the event we might have had to clean up the area entirely on our own. $6, remain in that budget item. No Trespassing Signs The signs have been purchased and should be ready for installation soon. In addition to the sites which have already been selected for the signage, the Board agreed to place signs by the fencing around the detention basins as well. Protective Covenants Compliance in the Neighborhood At the February meeting the Board presented a 3-page handout entitled Property Owner Requirements: Rules, Protective Covenants, and the Law. Crawford also conducted an online survey asking homeowners for input on the seven new rules which were adopted. There was broad support among the membership. Please see our website everetteestates.com for a summary of the new rules and the results of the survey. Crawford noted that Board members and the ARC have been in favor of a self-policing approach, but after a full year since the first ARC Neighborhood Review and several polite reminders, there are still issues. Board members have spoken individually to some of these homeowners, and have had good results. This approach will be continued. However, a last resort will be to send a letter in the mail. Form letters for non-compliance have already been written, yet we hesitate to send these unless necessary. Note the following reasons for which a letter may be forthcoming, and if you recognize yourself, please comply:
4 Visibility of Trash Barrels Condition of Mailboxes Long Lengths of Visible Drainage Pipes and Tubing Ditches not maintained/mowed (ditches are an extension of your front lawn) Visible Lawn Equipment and Machinery (when not in use) Long-Term and Routine Parking of Vehicles in the Roadway Suggested Changes/Amendments to the Protective Covenants The Board decided to table this item. Some reasons cited were lack of time for Board members who had a good deal of other HOA business to conduct this spring, the costly and laborious amendment process and the unlikely endorsement of any of the suggested changes by 24 members (75%). If, however, any member would like to pursue a certain change before the Board un-tables this item, please send Crawford the specific language that one might use for the amendment. We can then present it to the membership and evaluate the effort and cost involved to achieve the change. On a final note, our attorney does not think it necessary to edit just for the outdated and obsolete portions of the Covenants as HOAs throughout Virginia have left theirs in its original form for years. HOA Insurance Renewal and a Lower Rate for Workers Compensation Crawford reported that the cost of our HOA insurance policy renewal with CAU (Community Association Underwriters) has gone down from $ to $ The liability insurance is slightly up while the Workers Compensation is significantly lower based on the size and needs of our community. The policy also includes insurance for Directors and Officers. The annual payment is due by July 1 st. Neighborhood Watch Crawford recently spoke with Deputy Sheriff Richard Vasquez who coordinates the Neighborhood Crime Watch program for the County. He indicated that most of the details and information related to crime in our nearby communities are provided by him online on Nextdoor Everette Estates. The Board encourages all homeowners to join Nextdoor Everette Estates. However, if anyone is interested in being a designated leader for the program in Everette Estates, please let Crawford know. Deputy Sheriff Vasquez holds Neighborhood Crime Watch meetings on the third Tuesday of every month at the Sheriff s Sub-Station located at the Spotsylvania Mall. Although attendance is not mandatory, the meetings provide an opportunity to exchange information between neighborhoods and the Sheriff s Office. Make up of Board and/or Officer Positions Current Board Members have expressed among themselves over the past year some ideas for structuring the Board of Directors and Officer positions more effectively. One suggestion, and of concern to Crawford, is to possibly have an elected Vice-President, or a president-in-waiting of sorts, someone who would be groomed to be the next HOA President when Crawford decides to step down. The Board could then be expanded to five by having an elected at-large member also serve on the Board. Another idea is to have Officers, with the exception of the President, not serve as Board members and have two Board members elected, one from Everette Drive and one from Everette Court, one of which could be the president-in-waiting. There are other possibilities, but these were two options discussed. A secondary goal, as stated during the Open Forum, is to expand the decision-making process and have more folks engaged in the Board s activities. Please send your ideas to any Board member as soon as
5 possible since we would like to have recommendations for this restructuring before the Annual Meeting when elections are held. Your ideas are welcomed and appreciated. Thanks. Maintenance Issues As with the 2018 Budget, Crawford is asking for a group, or Maintenance Committee, to help identify issues and make decisions on repairs of the following: Spot Repair of Entrance Fence Painting the entire Entrance Fence Replacing the broken plank/rail in the fence near the Brady home on Everette Court Filling in the eroded areas leading to the Stormwater Management Facilities (SMFs) Replacing the two gates on the SMFs fences (this could come out of the Capital Reserve Fund) Crawford has begun to research these costs and has some bids in hand. Yet, he is reluctant to make these decisions on his own and hopes that a Maintenance Committee will study the options with him and provide some support. There were several members (Brian Zdgiebloski, Charlie Bachini, Jarrod Schmidt and Nat McCague) who volunteered at the last Board meeting, and Paul Murph offered his assistance at this meeting. Anyone else willing to serve on this Committee is asked to please contact Crawford at crawfordjencks@yahoo.com. Crawford will arrange a meeting to get things underway. Paul Murph suggested that the ARC might periodically submit a report that identifies maintenance issues and makes recommendations. Looking Ahead to the Annual Meeting This year s Annual Meeting will be held on Wednesday, September 20, 2017 in Conference Room #1 at the Snow Branch Library at 7:00pm. Please consider serving the community by volunteering for a Committee, running for an Officer s position and/or Board Member, or simply by attending meetings and being part of the process. The meeting was adjourned at 8:45.
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