Directors meeting were approved by a unanimous vote of the board after corrections. Motion by Gene Touchet, second by Michael Duran.
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1 I. Call to Order: President Duran called the meeting to order at 7:30 AM. Additional Board members present included Vice President John Lustenring, Secretary Robert Sillonis, Treasurer Scott Tansor, and Voting Member Gene Touchet. Property Manager Cindy Anderson and nine HOA members were also present. II. Approval of Minutes: The minutes of the June 20, 2009, SVHOA Board of Directors meeting were approved by a unanimous vote of the board after corrections. Motion by Gene Touchet, second by Michael Duran. III. Treasurer s report: A. Treasurer Tansor reported the August, 2009, financial statement showed Total Operating Funds of $186,978.95, Total Reserve Accounts of $365,732.05, and other Current Assets of $13, for Total Assets of $566, He distributed an itemized Statement of Operations that showed: fencing/gates $22,931.09; Landscape/irrigation $9,189.97; Lighting $40,713.35; Painting $52,872.30; Pools/spas $2,956.80; Roofing $109,744.65; Streets/drives/surfaces $73,169.59; Tennis courts $5,883.83; Miscellaneous/ contingency $48, Tansor and the Board discussed that maturing CDs will require careful comparison of rates. The Board commended his efforts and encouraged him to seek the highest, safest rates available. He has arranged a shift for monthly tracking of the Mesquite Lease account to make those payments more transparent. B. Liens for unpaid HOA dues were reported by President Duran to be filed regarding three properties: 1. Lot 45, Tract 10807, AP# , Records of Riverside County ; 2. Lot 37, Tract , AP# , Records of Riverside County; 3. Lot 2, Tract 10807, AP# , Records of Riverside County. The motion to approve the liens was from Scott Tansor, the second was by Michael Duran and approval was unanimous. C. The Treasurer s Report was approved unanimously by the Board after the motion of Robert Sillonis and the second of John Lustenring. IV. Committees:
2 A. Landscape Committee: Chairperson Sillonis reported 1. Landscape water was turned off recently for treatment of Fire Ants by the Vector public program and will soon be turned off to begin the annual reseeding of lawns; 2. Hibiscus are currently being trimmed and bougainvillea and Mexican birds of paradise will be trimmed in November; 3. Entrance flowers will be removed soon to condition the soil before planting the Winter flowers (the pulled flowers will be piled by the entrance gate one day for HOA members to pot on their patios); 4. Replacement plants will be ordered for the side of the tennis courts and to fill in the island of quadrant 3; 5. Numbers on mailboxes will be repainted as needed. A. Neighborhood Watch: John Lustenring reported: 1. the committee has seen little action while the high school was on Summer break; 2. More volunteers are needed; 3. HOA members should attend upcoming Coachella Valley California Great Shake Out activities; 4. The local coalition to promote neighborhood interests disbanded but HOAs in the area are continuing to share information. B. Rules and Regulations: Gene Touchet distributed the latest proposed changes, emphasizing common area encumbrances and conducted a non-binding straw poll of board members regarding open houses held by realtors. C. Architecture Committee: There was no report due to the resignation from the board of the chairperson. Gene Touchet agreed to serve as chairperson in the interim. V. Old Business: A. Pools 1. The Board asked the Property Manager to arrange an Executive Session with the pool company manager prior to the next scheduled Board meeting. 2. The Board approved two previously submitted proposals from Don McIntyre Service (pool maintenance) for replacement and repair of pool and spa facilities with four ayes and one abstention (John Lustenring). B. Patio Covers: The Board accepted a proposal from Ernest Rio to
3 replace one unit s patio roof support beam (motion by Scott Tansor, second by Michael Duran) and directed the property Manager to schedule inspection and repair (as needed) of the roof of another unit that was repaired by a homeowner s contractor. C. Reserve Study: Treasurer Tansor provided the Board the following abbreviated summary of the Level II Reserve Study by Michael Graves of SCT Reserve Consultants, Inc., which included a thorough evaluation by direct examination of the entire complex by Mr. Graves, Treasurer Tansor and President Duran. 1.The pool and spa equipment showed age and neglect; 2. The Flat roofs (not including the five recently replaced) showed no estimated remaining life, whereas the tile roofs have an estimated life of Twenty years; 3. The streets are adequately maintained and should not be removed and replaced; 4. Reserve Funds need to be increased. SVHOA currently has Reserve Funds of 22.01%. The Treasurer concluded that the number one problem facing the SVHOA is the need to replace the flat roofs of the 28 units that have not been done. He explained that completion of these and other repairs and replacements will enable increasing the allocation for reserves. B. Budget: Accepting information from the Reserve Study, the Treasurer reported that the Budget Committee used the five completed flat roof replacements to estimate expenses for necessary flat roof replacement and narrowed discussion for the replacement of flat roofs to four possible Board actions: 1. No increase in dues and no special assessment. This does not enable the necessary replacement of flat roofs and probably curtails much needed repair of leaks. Previous roofing evaluations (for five years) have described the flat roofs as needing replacement. The Reserve Study evaluation of no life for the flat roofs indicates that replacement is necessary NOW to protect the value of individual units and the entire complex. Individual unit owners would continue to be responsible for interior damage to the unit structure and to their personal property. Leaks would be patched as possible within the
4 existing budget but major rains could deplete available funds. 2. Continue the current HOA fee of $375 with a one-time $ special assessment per unit for replacement of flat roofs. This would allow the Board to accept bids for the replacement of flat roofs, to evaluate submitted bids, to select a supervising roofing agent (separate from the companies bidding for the replacement contract), and to schedule roof replacement for the remaining twenty eight buildings in need of flat roof replacement. This would fund the estimated cost of $648, Raise monthly dues $75.00 on January 1, 2010, (the maximum allowed by law) to $ with maximum allowable raises in each of the following four years for other increasing expenses. This would delay the replacement of roofs but would raise the estimated $648, over five years. 4. as a method to fund the assessment stated in option 2 the board is prepared to offer HOA members two ways to fund the necessary $ assessment : A: a one-time special assessment of $ (due May 15, 2010) or B: 4 yearly special assessment payments of $ A $50 late fee to cover bookkeeping expenses would be charged for late payments. There would be no increase in dues to fund the replacement of flat roofs. If the HOA members fail to accept the Special Assessment of $ (option two) by secret ballot, the board would raise the regular monthly dues (as stated in option 3) by $75.00 to $ Approval of a motion for preparing a ballot for an HOA membership vote on option 2 was unanimously accepted by the Board. (Motion by Gene Touchet, second by John Lustenring). The Property Manager was instructed to prepare and distribute the ballot. Secretary Sillonis and Treasurer Tansor were charged with writing a cover letter for the ballot. VI: New Business:
5 A. Trees: 1. On separate occasions the Landscape committee toured the property for suggestions regarding our failing trees with our arborist, a tree pest and disease expert, our gardening contractor, and Property Manager. Twenty five trees were viewed as ailing. After comparison and discussion of all opinions the committee decided to recommend the removal of six trees and adequate trimming and thinning of the remaining ailing 19 trees. The Property Manager suggested ordering a fertilizing health treatment for the ailing trees before trimming or removing them. 2. The committee recommended purchasing and planting two male (fruitless) olive trees, a palo verde and two view blocking trees (Japanese oleanders or palo verdes). The Board had provided funding of replacement trees at a previous Board meeting. B. Management: Board discussion followed a suggestion that the Property Manager record a weekly log of work requested by HOA members and contractors and work completed to enable the Board to track concerns and changes. This will be considered by the Bids and Contracts Committee to be established by the Board. C. Flood Insurance: Some homeowners are not aware of FEMA s error in including parts of SVHOA as being in a flood plain. The Property Manager has information and forms for individual homeowner s to file for exemption. D. Backflow Fixtures: Notification has been received from The Desert Water Agency necessitating the replacement of two backflow fixtures. The motion to approve the bid was made by President Duran and Treasurer Tansor seconded. The motion was unanimously approved by the Board. E. Bids/Contracts: The Board agreed to create a Board Committee to review all bids and contracts for the SVHOA. F. Flowers and Grass Seed: The Board agreed to purchase 170 flats of Winter Flowers for the entrance areas. They are to be the biggest, brightest and healthiest flowers available up to four inch pots. The
6 Property Manager will create a schematic for the planting. Four tons of fertilizer for the lawns was recommended for purchase. The Board unanimously approved these purchases as moved by Secretary Sillonis and seconded by Vice President Lustenring. VII. Correspondence: Christopher Neil Enterprises sent an advertisement for a new form of Solartec Pool Heating Services that offered a new look at pool heating and the Board asked the property Manager to invite him to address the Board. VIII. Homeowners Comments: A. Is there any information regarding the Indian lease? Various Board members and attendees discussed the possibility that no increase will be made this year because increases are tied to cost of living increases (which are nil for this year). It is not certain what the decision of the Bureau of Indian Affairs will be or what Hale Industries will do. B. Is it possible to get the gardeners to mow and blow the debris from sidewalks and driveways on the same day? The Property Manager replied that is the schedule in the gardener s contract and that she will notify them of the need to comply with the contract. C. Budget Issues: There are a large number of budget issues needing open discussion by the Board. IX. Meeting Adjourned: President Duran adjourned the meeting at 10:37. The Next Meeting of the Board of Directors of the SVHOA is scheduled for October 17, 2009, at 8:00 AM
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