Cotton Ranch Homeowners Association

Transcription

1 February 14, 2012 RE: Annual Meeting Thursday, March 15, 2012 Dear Homeowners and Property Owners: This letter is provided to you by the Board of Directors to inform you of the upcoming annual meeting. Association Annual Member Meeting March 15, 2012 Pursuant to the By-Laws of the, mailed to you was a written notice that the Annual Member Meeting of the Association is scheduled for Thursday, March 15th, at 6pm local time, at the Gypsum Recreation Center. This letter more fully explains the details for the meeting. If you will not be attending this meeting and would like your vote represented by someone who will be attending, you may complete and return the included proxy. Please fill in all areas including the appointed person s name and sign and date the proxy. You may designate anyone you wish to serve as your proxy or you may contact one of the existing board members if you would like one of them to serve as your proxy. Please return the proxy to Robertson & Marchetti, P.C. prior to 8:00 a.m. on March 15, 2012 to ensure the proxy is presented to the appointed person the day of the meeting. Please note the appointed person must be in attendance at the meeting for the proxy to be counted. The mailing address for the proxy is: PO Box 2036 Edwards, CO Fax: (970) Please note that per Section 7.1 of the Association Bylaws, your account must be current (excluding 2012 dues) to be able to vote on any matters at the meeting. Any accounts not brought current by 5:00 p.m. on Wednesday, March 14, 2012 will not be issues at ballot at the meeting. At the upcoming March 15, 2012 member meeting, the Association will be accepting nominations for two seats on the Executive Board. Current Board members up for election as well as new members of the community are eligible to run for the open positions. The current Directors and the remaining length of their terms are: Administrative Management Provided By Robertson & Marchetti, P.C. 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) ; Fax (970)

2 Bruce Penman- Up for election for a 3 year term Larry Britt- Up for election for a 3 year term Mike McGinty- 1 Year Remaining Robinette Hoppin- 1 Year Remaining Larry Brooks- 1 Year Remaining Beric Christiansen- 2 Years Remaining Tom Pohl- 2 Years Remaining Executive Board positions are not compensated positions, but do provide an opportunity to be involved in your community. It is anticipated the Board will meet on a quarterly basis with additional meetings if matters arise. Meetings normally last about 2 hours. The Association is still in need of two alternates for the Cotton Ranch Homeowners Association Design Review Committee to fill in if one of the other directors cannot attend a meeting. The current committee members and the remaining length of their terms are: Tom Bashford Lindsey Kraft Scott Gordon Alternate #1 Larry Britt Alternate #2 Vacancy Design Review Committee positions are not compensated positions, but do provide an opportunity to be involved in the design and appeal of the community. It is anticipated the Board will meet on as needed basis with most meeting item approvals done through . If you are interested in serving on the Board of the Association or the Design Review Committee, please let Matt Jones with Robertson & Marchetti know of your interest at Matt@rmpccpa.com or fax number Nominations for the Association Board will also be accepted from the floor at the meeting. It is the responsibility of the Board to uphold, administer and enforce the declaration covenants, conditions and restrictions of the. The Association is funded by assessments, commonly called dues, and are used to pay the costs of providing the Association services. The primary functions of the Executive Board at this time are overseeing maintenance of the common area landscaping and irrigation system, covenant enforcement, and overseeing the Association s budget. The Board would like to encourage using over regular mail to distribute information in regards to Cotton Ranch. If you did not receive a copy of the notice via both and regular mail then the Association needs your address. Please your physical address and address to Matt@rmpccpa.com. We assure that your will only be used for Association and community announcements and updates. Administrative Management Provided By Robertson & Marchetti, P.C. 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) ; Fax (970)

3 Also remember that the community website, which now includes information for the Metro District and Sky Legend Association can be located at All of the Association and other community documents, Rules and Regulations, Board meeting minutes and annual financials can be found here. Lastly, we are in need to scenic photographs taken within the community to enhance the new website. If you have any photos you would like to share please send them to We look forward to seeing you at the meeting on March 15, Sincerely, Eric Weaver Association Manager Administrative Management Provided By Robertson & Marchetti, P.C. 28 Second Street, Suite 213, Edwards, CO 81632; Phone (970) ; Fax (970)

4 COTTON RANCH HOMEOWNERS ASSOCIATION NOTICE OF MEETING OF MEMBERS TO BE HELD MARCH 15, 2012 Notice is hereby given that a meeting of the Members of (the Association ) has been called by the Executive Board of the Association pursuant to Section 3.5 of the Bylaws of the Association. The meeting will be held at the Gypsum Recreation Center, 52 Lundgren Blvd, Gypsum, Eagle County, Colorado, on March 15, 2012, at 6:00 P.M., local time, for the following purposes: To save on printing and postage costs, the meeting packet has been made available on the new community website at The packet includes an overview of the meeting, minutes from the March 2011 Annual Member Meeting, a proxy, and financial statements as of December 31, 2011, including the 2012 budget. AGENDA 1. Call to Order; Declaration of Quorum 2. Approval of 2011 Annual Meeting Minutes 3. Election of Directors- 2 Directors for Three Year Terms 4. Reports of Officers a. Real Estate (Beric) b. Social Events (Robinette) c. Common Area Maintenance and Sidewalk Plowing (Mike) d. Compliance (Larry) 5. Metropolitan District Update (Chris Meister) 6. Design Review Committee Update (Eric) 7. Financial Report and 2012 Budget Overview (Eric) Attachment 8. Homeowner Input/Other Business 9. Adjournment Executed this 20th day of February, 2012, by the Board of the Association. COTTON RANCH HOMEOWNERS ASSOCIATION, a Colorado Nonprofit Corporation By: /s/ Beric Christiansen, Director Robinette Hoppin, Director Mike McGinty, Director Larry Britt, Director Tom Pohl, Director Bruce Penman, Director Larry Brooks, Director

5 R E C O R D O F P R O C E E D I N G S Minutes of the Meeting Of the Members of March 1, 2011 The annual meeting of the members of the, Eagle County, Colorado, was held March 1, 2011 at 6:00 p.m., at the Gypsum Recreation Center, Gypsum, Eagle County, Colorado, in accordance with the applicable statutes of the State of Colorado. Attendance The following Directors of the Association were present: Larry Britt Beric Christiansen Robinette Hoppin Mike McGinty Tom Pohl Also in attendance were: Ken Marchetti, Cotton Ranch Metropolitan District Representative, Robertson & Marchetti, P.C. Matt Jones, Robertson & Marchetti, P.C. Eric Weaver, Robertson & Marchetti, P.C. Property Owners Jim Brieger Sandi Britt Mike Burk Teague & Tiana Carlson Beric Christiansen Vince Emmer Vicky Esposito Ellen Gall David & Loreen Gates Rainer Gerngross Tom Harned Robinette Hoppin Rick & Vickie Irvin Gary & Lea Lundberg Christine McGinty Linda Miller Bopi & Scott Moises Judy Phillips Anthony Phipps Larry & Virgene Rasmussen Bob Richardson Page 1

6 R E C O R D O F P R O C E E D I N G S COTTON RANCH HOME OWNERS ASSOCIATION March 1, 2011 Annual Member Meeting Minutes Jerry Santoro Chris Sauro Harry Taylor Mimi Turner Lai White The following Members were present by proxy: Larry Brooks Timothy Cashin Ronald Harrison Stephen Hoppin John Moff Steven Nieman Bruce & Cheryl Penman Gail Shannon Sky Legend Homes, LLC Dianne & Richard Stovall Call to Order Presidents Comments Approval of 2010 Meeting Minutes The member meeting of the was called to order. It was noted a quorum of owners was present at the meeting, since the Declarant, The Pauls Corp, had provided a proxy, with the directions that their votes be cast in accordance with the majority of the members votes. Director McGinty opened the meeting, introduced and thanked the Board for their continued involvement in the Cotton Ranch community, and gave a brief summary of the Association. Upon motion duly made and seconded, it was unanimous RESOLVED to approve the minutes of the 2010 annual member meeting as presented. Election of Directors The positions of Beric Christiansen and Tom Pohl are up for election for three year terms and there is a vacancy on the Board for a 1 year term. Nominations were taken from the floor and Beric Christiansen, Kelly Page 2

7 R E C O R D O F P R O C E E D I N G S COTTON RANCH HOME OWNERS ASSOCIATION March 1, 2011 Annual Member Meeting Minutes Assessment Finance Charges Gates, Bopi Moises and Tom Pohl were nominated. The candidates each gave a short presentation on the qualifications and reasons for desiring to serve on the Executive Board. Mr. Weaver reported that the Board is interested in raising the interest rate on unpaid assessments from 12% to 18% which requires a Homeowner vote. On the election ballot homeowners were asked to check whether they are opposed or in favor of the increase. Secret ballots were collected for both the Board Member and Fine questions and the meeting continued while the ballots were being counted. Association Website Mr. Weaver briefly reviewed the information on the Association website. The website contains all the Association documents, Annual Financials, Contact information, Compliance information and other useful homeowner information Billing Mr. Weaver reported that the Association has hired a company called American Conservation and Billing Solutions to bill out the annual assessments and assist in collection. This change will both provide costs savings to the Association and provide greater flexibility to owners in methods of paying their assessments. Reports of Officers Liaison to the Real Estate (Beric Christiansen) Real estate values in Eagle County have dropped 25%-35% countywide since the last assessment period. Within Cotton Ranch, property values have dropped anywhere from 30-50% since the last assessment period. Currently there are 15 homes in Cotton Ranch and 6 in Sky Legend listed on the M.L.S. and this does not include the homes that are for sale by owner. In the past 14 months there have been 3 sales in Cotton Ranch and 11 in Sky Legend. Director Christiansen briefly reviewed the new tax assessments and reviewed the assessor appeals process to homeowners. Social Coordinator (Robinette Hoppin) Social Events have decreased due to impacts of economy but there are plans of scheduling an Easter Event, a possible Garage sale event and a Page 3

8 R E C O R D O F P R O C E E D I N G S COTTON RANCH HOME OWNERS ASSOCIATION March 1, 2011 Annual Member Meeting Minutes Christmas event. Any Homeowners who would like to volunteer their time to assist with planning any of the above events are encouraged to contact Robinette. Liaison for Common Area Maintenance and Sidewalking Plowing (Mike McGinty) Last year the Association changed to Brush Creek Landscaping in order to reduce cost and increase service. The current Board has been happy with the service and the reduced cost in the budget. It was reported that the 10 th tee retaining pond has had a lack of maintenance since the Course was purchased by the Town. In the past this pond was maintained by whoever owns the Club, but since the sale of the course it has not been maintained at all. The HOA plans on repairing the pond pumps in The Noxious weed mowing that is required on vacant lots has historically been performed by the Association and then billed back to the lot owner. Due to collection issues and since this is a town ordinance, the Town of Gypsum will be taking over all the lot mowing and related collection for lot mowing. Communication Coordinator and Website (Laurie Ganz) The website has been updated with meeting minutes, commonly asked questions, and other pertinent information. Laurie asked that everyone provide their addresses to allow for better and more cost effective communications. Compliance Manager (Larry Britt) After the 2010 Annual Member meeting the Cotton Ranch HOA board felt that the neighborhood compliance was being enforced too strictly and was also too expensive. The current Board reviewed this issue and reviewed options to reduce cost and Mr. Britt volunteered to assist with compliance throughout Cotton Ranch. Instead of mailing compliance warnings Mr. Britt contacts the Homeowner directly to review the issue. Overall the Board feels the less strict approach has been relatively effective and has produced a big cost savings. Page 4

9 R E C O R D O F P R O C E E D I N G S COTTON RANCH HOME OWNERS ASSOCIATION March 1, 2011 Annual Member Meeting Minutes Developer Update DRC Update Financial Report Excess Income Mr. Weaver reported that the new developer in Sky Legend, Pauls Corp completed construction and sold 8 homes that were started by the previous developer, constructed and sold 3 more, and is currently constructing another 3. Currently there are two open seats for alternates on the Design Review Committee (DRC), if anyone is interested please let Matt Jones know. The activity of the DRC has decreased substantially due to the decline in the economy and real estate market. It was noted that there is one DRC board which reviews applications for both Sky Legend as well as the valley floor and that there are separate design review guidelines for Sky Legend. It was also note that the Sky Legend HOA board is separate from both the Cotton Ranch HOA board and the DRC. Mr. Weaver reviewed the financial report and the 2012 budget with the attendees. Dues will remain at $300 per property and due to the number of foreclosure and developer lots collections continue to be an issue. Mr. Weaver explained that if the members would like to retain the excess funds collected in 2010 over the amount expended, it requires a vote of the members to keep the funds from becoming taxable by the IRS. The funds would be used for future operations and capital repairs. After discussion and upon motion duly made and seconded it was unanimously RESOLVED, that any excess of membership income over membership expense for the year ended December 31, 2010, shall be applied against the subsequent tax year member assessments as provided by IRS Revenue Ruling Metro District Update Mr. Marchetti gave a quick update on the Cotton Ranch Metropolitan District, which is primarily responsible for providing raw-water irrigation to the community and for a paying the debt service for bonds issued to finance the costs of the infrastructure of the community. The decline in assessed valuations will require the District to increase the mill levy but overall taxes to owners are expected to decrease substantially starting in Mr. Marchetti took questions from the Page 5

10 R E C O R D O F P R O C E E D I N G S COTTON RANCH HOME OWNERS ASSOCIATION March 1, 2011 Annual Member Meeting Minutes floor on the history of the Metropolitan District and several Mill Levy questions. Homeowner Input Election Results Various homeowners spoke on issues relating to snow plowing of the sidewalks, the Town of Gypsum taking over the golf course and the related issues with tees, fairways, and greens, retaining ponds, neighborhood notifications, dog stations needing attention, repairs needed to the grass along Valley Road, the Club swimming pool, and other current issues of the community. After tallying the votes, the following directors were elected to the following terms based on those with the highest number of votes being elected to the longest terms. Tom Pohl 3 year Beric Christiansen 3 year Bopi Moises 1 year The results for the finance charge rate ballot question passed in favor of increasing the finance charge rate from 12% to 18% going forward. Adjournment There being no further business to come before the members at this time, upon motion duly made and seconded, it was unanimously RESOLVED to adjourn the member meeting of the Cotton Ranch Homeowners Association this 1 st day of March, Respectfully submitted, Secretary for the meeting Page 6

11 COTTON RANCH HOMEOWNERS ASSOCIATION MEETING OF MEMBERS March 15, 2012 PROXY The undersigned hereby appoints (Please print name of proxy holder) as the undersigned s proxy, with full power of substitution, to attend the meeting of the members of the (the Association ) to be held at the Gypsum Recreation Center, 52 Lundgren Boulevard, Gypsum, Eagle County, Colorado, on March 15, 2012, at 6:00 p.m., local time and any adjournment or adjournments thereof, and to vote thereat the number of votes which the undersigned would be entitled to vote, with all the power the undersigned would possess if present in person, as follows: 1. On such business as may properly come before the meeting. Receipt of the Notice of Meeting of Members dated February 20, 2012, is hereby acknowledged. THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE ASSOCIATION. THE ASSOCIATION MUST BE IN RECEIPT OF AN ORIGINALLY EXECUTED PROXY PRIOR TO THE TIME OF THE MEETING FOR YOUR VOTE TO BE COUNTED. Dated: (Please date your Proxy) Signature of Member as such Member s name appears on deed (Note one Vote per Property) Print Name Lot Number, Filing or Street Address Please return Proxy via mail or fax to: PO Box 2036 Edwards, CO Fax

12 ROBERTSON & MARCHETTI, P.C. Certified Public Accountants Accountant s Compilation Report February 20, 2012 Board of Directors Gypsum, Colorado I have compiled the accompanying balance sheet of as of December 31, 2010 and the related statement of revenues, expenditures and changes in fund balance historical, budget and forecast for the twelve month period then ended. I also compiled the accompanying budget of revenues, expenditures and changes in fund balance for the year ending December 31, 2011 and the 2012 a budget in accordance with standards established by the American Institute of Certified Public Accountants. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. As a consulting financial manager, I participate in the financial management of the Association. Management (with my participation) is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. I have prepared these financial statements in my capacity as consulting financial managers for the Association. My responsibility includes conducting the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Management (with my participation) has elected to omit substantially all the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included in the financial statements, they might influence the user s conclusions about the Association s financial position and results of operations. Accordingly, the financial statements are not designed for those who are not informed about such matters. A compilation of a forecasted financial statement is limited to presenting in the form of a forecast, information that is the representation of management and does not include evaluation of the support for the assumptions underlying the forecast. I have not examined the accompanying forecast and, accordingly, do not express an opinion or any other form of assurance on the forecasted statement or assumptions. Furthermore, there will usually be differences between the forecasted and actual results, because events and circumstances frequently do not occur as expected and those differences may be material. I have no responsibility to update this report for events or circumstances occurring after the date of this report. I also compiled the accompanying 2010 historical financial statements of the Association and my report thereon stated that I did not audit or review those financial statements and, accordingly, expressed no opinion or other form of assurance on them. I am not independent with respect to because I perform certain accounting services that impair my independence. ROBERTSON & MARCHETTI, P.C. Eric Weaver, CPA Vice-President 28 Second Street, Suite 213, Edwards, CO Phone (970) ; Fax (970)

13 Cotton Ranch Homeowners' Association Balance Sheet As of 12/31/10 and 12/30/ /31/10 12/31/11 Assets Millennium Checking 56,640 48,877 Millennium Money Market 27,697 55,466 Millennium CD 51,212 51,766 Petty Cash 0 0 Accounts Receivable 45,809 57,103 Other Receivables Total Current Assets 182, ,211 Fixed Assets ATV 3,921 3,921 Kubota Tractor 18,956 18,956 Accumulated Depreciation (22,877) (22,877) Total Fixed Assets 0 0 Total assets 182, ,211 Liabilities & Equity Liabilities Accounts Payable 6,253 11,944 Landscape Deposits 56,000 48,000 Total Liabilities 62,253 59,944 Equity Working Capital 64,000 64,800 Fund Balance- A/R 45,809 57,103 Fund Balance- Available For Spending 10,252 31,365 Total Equity 120, ,268 Total Liabilities & Equity 182, ,211 See Accompanying Accountant's Report = = Page 1

14 Cotton Ranch Homeowners' Association Statement of Revenues, Expenditures and Changes in Fund Balance Actual, Budget and Forecast for the Periods Indicated 2011 Annual 12 Months 12 Months Unaudited Variance Ended Ended Variance Adopted 2010 Adopted Favorable 12/30/11 12/30/11 Favorable 2012 Actual Budget (Unfavor) Forecast Actual Budget (Unfavor) Budget 2012 Budget Comments Units Cotton Ranch (Valley) - Beginning of Year Cotton Ranch (Valley) - Brought into Assn Cotton Ranch (Valley) - End of Year Sky Legend - Beginning of Year Sky Legend - Brought into Association Sky Legend - End of Year Annual Dues Per Unit Income Cotton Ranch Non-Sky Legend Dues 72,300 72, ,300 72,300 72, ,300 No Dev Sales In Valley Floor Sky Legend Dues 27,000 27, ,600 27,600 27, ,050 New Pauls Corp homes Design Review Fees 4, ,268 4,268 4, ,268 4,250 Assume 3 homes Lot Mowing Cost Recovery 4, Town will be doing Statement Prep Fees at $50 Lien Filing Charge (250) at $50 Interest Income 1, (109) 800 Based on 2011 Finance Charges 7,076 5,497 1,503 7,000 7,003 5,497 1,506 10,279 At 18% rate Compliance Fines Adminstrative Fees Fee for compliance violations Sale of Equipment 3,000 (2,000) 1,000 3,000 (3,000) 1,000 Sale of Tractor & ATV Total Income 117, ,637 5, , , ,437 4, ,499 Expenses DRC Expenses Architectural Fees 300 1,000 (3,000) 4,000 3,123 1,000 (2,123) 3,500 3 homes plus other misc DRC Admin Support 8,228 5, ,457 4,513 5, Total DRC Expenses 8,528 6,000 (2,457) 8,457 7,635 6,000 (1,635) 4,000 General and Admin Expenses Accounting, Tax Return, & Administration 28,647 30,000 1,500 28,500 26,584 30,000 3,416 28,000 R&M Billing Expense - AMCOBI 0 (1,750) 1,750 1,990 0 (1,990) 2,000 Amcobi Bad Debts- Actual Write-Off's 1,563 3,000 (491) 3,491 4,063 3,000 (1,063) 5,000 Hard to estimate Office Expenses & Misc (250) 750 1, (755) 1,000 Not mailing packets Covenant Enforcement 3,542 2,000 1,000 1, ,000 1,314 1,000 No hired compliance officer Insurance 2,899 3, ,996 2,996 3, ,116 4% increase from PY Legal Expense 0 1,000 (1,500) 2,500 2,595 1,000 (1,595) 2,500 Social Functions 229 1, , , ,500 Plan to bring back all events Total General & Admin Expenses 37,197 41,000 (1,487) 42,487 40,778 41, ,116 Operating Expenses Landscape Maintenance - Contract 20,185 21,000 1,498 19,502 19,500 21,000 1,500 21,303 Per contract Landscape Maintenance - Additional Work (1,665) 1,665 1,783 0 (1,783) 2,500 Landscape Improvements 3,201 4,500 4, ,500 4,500 2,500 New Trees or Major Repairs Other Misc. Maintenance, Dog Stations (275) 1,100 1, (558) 2,930 Weekly Maintenance Repairs & Maintenance Irrigation - T&M 1,174 4,000 1,000 3,000 2,110 4,000 1,890 3,000 Unforseen repairs Irrigation- Start up and Blow out 2,825 3, , ,000 3,000 3,000 Based on Prior Years Tree Spraying and Maintenance 1,680 1, , ,750 1,750 1,750 Metro has $12K Budget for VR Pond & Fountain Maintenance 1, , Not HOA Responsibility Mowed Lot Expense 3, Town now does Snowplowing of Sidewalks 2,354 4,250 1,985 2,265 1,265 4,250 2,985 3,500 Assume normal year Utilities 613 1, , Fountain and Common Area Website Development ,011 0 (2,011) 0 Complted in 2011 Website Maintenance (250) (369) 750 Hosting fee & updating Taxes on Unconveyed Common Area 0 (3,449) 3,449 3,449 0 (3,449) 0 None due in 2012 or beyond Total Operating Expenses 36,860 41,875 4,394 37,481 33,133 41,875 8,742 42,083 Total Expenses 82,585 88, ,425 81,547 88,875 7,328 90,199 Net Income (Loss) 35,382 20,762 5,971 26,734 32,406 20,562 11,844 27,300 Beginning Fund Balance 20,680 56, ,062 56,062 56,062 (0) 82,796 Ending Fund Balance (Budgetary Basis) 56,062 76,824 5,971 82,796 88,468 76,624 11, ,095 Less Allowance For Delinquent A/R (45,809) (68,973) 5,593 (63,380) (57,103) (68,973) 11,870 (78,412) Assume 55 non-paying lots Available Fund Balance 10,252 7,851 11,565 19,416 31,365 7,651 23,714 31,684 = = = See Accompanying Accountant's Report = Page 2