HAMLETS OF WOODLAND RIDGE EAST HOMEOWNERS ASSOCIATION MINUTES - ANNUAL MEETING October 7, 2013 Coventry Meadows Assisted Living 7833 West Jefferson Blvd. Fort Wayne, Indiana Having reached a quorum of the membership, the meeting was called to order at 7:06 pm by President Jay Miller. Jay welcomed all those in attendance and recognized the staff of Above & Beyond Management that were in attendance, Jessica Grim, Cassie Kitch, and Dawn Hartley. He then introduced the officers and members of the Board of Directors (Liz Frederick, Vice President, Michele Souder, 2nd Vice President, Don Mauch, Treasurer, Carolyn Krebs, Secretary; Steve Riethmiller, Dick Harnly, Steve Cassady, Michael Woehnker, and Brian Robinson. Board member Rise Vandenburg was absent due to illness. Jay reported that over the last year ten homes have been sold in the Hamlets. PRESIDENT'S REPORT 1) The Board met a total of 11 times over the past year. 2) The Board had reviewed and/or interviewed seven (7) potential landscaping contractors before offering the contract to Lawnscape Land Management. To date, feedback from Hamlets' owners has been overwhelmingly positive about the services provided by Lawnscape. 3) Association has provided tree trimming, removal and, in many instances, replacement of trees and shrubs that were among those originally planted in the Hamlets. 4) Pool house was remodeled, including repairs made to the roof. 5) New parking pad was added in front of the pool house; area around the parking pad has been landscaped. 6) Street repair project is ongoing. 7) Board had approved the mowing and spraying of weeds in the Canal during the Spring, Summer, and early Fall. (Approximately 15 x for mowing; 2x for spraying.) 8) Board has mandated that no burning shall take place in the Canal area. This same restriction on burning has long applied to the entire Hamlets due to city ordinance. 9) Ornamental grasses in the Hamlets will be cut in the Spring. 10) No increase in dues for the next year. 11) No capital assessments are anticipated at this time. 12) The Board has and continues to be involved in a legal dispute with the Plant Center regarding variance and drainage issues. 13) The Board continues to monitor the prior agreement between the Hamlets and Aqua Source in light of the new agreement between the City of Fort Wayne and Aqua Source involving the disposal of waste material at the Engle Road facility. Board will be vigilant in its efforts to ensure that this agreement is honored. Owner were asked to notify Management when odors emanating from the plant in the West End are present. 14) Board has worked on amendments to Bylaws and Covenants that shall be discussed later in the meeting. 1
APPROVAL OF PRIOR YEAR MINUTES The reading of the minutes having been waived, a motion was made and seconded to approve the minutes of the 2012 Annual Meeting. There being no further discussion, the motion carried. TREASURER'S REPORT Included reports were: Calculation of Reserve Activity as of 8/31/13 and Reserve Budget for 2013; Actual Budget for 2013 and Proposed Budget for 2014. Don reported that the financial position of the Association is strong with over $460,000 in reserves in two distinct accounts, i.e., Capital Fund and a Legal Fund. Operating Budget - Income and expenditures were consistent with our operating budget. Expenses for tree removal, street repair and pool house remodeling were taken from the capital reserve budget, thus the reduction in amount of reserves from a year ago. Expenses associated with the Plant Center issue were taken out of Legal Reserves. Operating income was as expected. The Meier property, which had been on ongoing problem for the Association in terms of non-payment of fees and dereliction in upkeep and maintenance, was sold at auction on October 2, 2013. However, it will be at least one year before any resolution is final. Owner Meier has about one year in which to make restitution to the county in an attempt to reclaim his property. In all likelihood, we will forfeit the funds associated with the liens that we have placed on this property. The Aqua Source funds, for which he never signed off, remain in an escrow account. Motion was made and seconded to approve the Operating Report. Proposed 2014 Budget - For the most part, operating expenses for the year will remain the same. However, management and landscaping fees will increase slightly, based on increased services. Repairs will continue on streets, as will the removal and replacement of trees and shrubs that are part of the original landscaping plan. Repairs to the gazebo at the pond and improvements to the pool area are also planned. Cost of these repair and improvement projects will come out of the capital reserve budget. Federal and state taxes that are approximately $7,000 are taken from the legal reserve budget. Motion was made and seconded to approve the Proposed Budget for 2014. 2
Capital Expenditure and Legal Reserves Budgets - Don mentioned that it is the Board's intention to maintain reserves at their current level, and in order to do that, at some point in the future it may be necessary to assess each owner a small amount. However, there will not be any increase in monthly assessment fees, nor will a special assessment be levied this year. The reserves have provided a savings of $1,135 per homeowner that, otherwise, would have required assessments or higher fees. Income from our investments is used to fund the reserve accounts. Interest rates that have declined over this past year have shown signs of rising. Don and the Investment Committee closely monitor our portfolio to minimize risk in this economic environment. The Investment Committee of the Board (Jay Miller, Don Mauch and Rise Vandenburg) met with the Association's investment advisors at Stifel Nicholas three times this past year. Reports from SN are received regularly, investment instruments are monitored and the Association retains the right to accept or reject any investment proposed by SN. The Association has a diversified portfolio. The goal is to maintain the Capital Reserves at the current amount in succeeding budgets. The Legal Reserve could be depleted if legal expenses exceed amount set forth in the fund should circumstances warrant such expenditures. In order to maintain the reserves at an acceptable level, the Board will consider an annual assessment should circumstances warrant such action. Motion was made and seconded to accept the Capital Expenditure and Legal Reserve Budgets for 2014. PRESENTATION OF PROPOSED AMENDMENTS TO THE COVENANTS & BYLAWS At its May 22, 2013 meeting, the Board agreed to amend the Article VII, Section 18 of the covenants to ensure that the Association has the legal right and authority to remedy a situation where a homeowner is unable or unwilling to act on their own to correct a maintenance problem that is in danger of becoming an eyesore that will impact the neighborhood and property values. Relevant sections of the bylaws will also be amended to ensure that language is in accord with the proposed covenant revision. (The proposed covenant and bylaws amendments are herewith attached and will be a part of these minutes.) Jay explained that the amendments are needed to protect the integrity of the association and the value of the property. Discussion followed with one owner asking if it were possible to resign from the Association. Since the obligation of membership resides with the lot, the answer is no. Owners inquired as to whom would determine the status of a property. Members of the Architectural Committee will identify whether property is in violation of covenant, and the full Board shall then vote to determine whether to proceed to legal remedy. Owners expressed some concerns with the language contained in the amendment. 3
Motion was made and seconded to approve the proposed amendment to the covenants with the following insertion to Section 18, second paragraph, third sentence: "giving the Owner a specified maximum number of days to be determined by the Board in each instance in which to complete the work cited in the notice." Note: Passage of the amendment is contingent upon the notarized signatures of 75% of owner(s) of record. Pam Miller and Liz Frederick, who are notaries, collected signatures during the meeting and will continue to do so until the necessary number for passage is reached. Jay then mentioned that there were two corrections to the bylaws materials that were submitted to the owners for their consideration, namely, 1) #2 should read Article 8 rather than Article 3, and 2) #6 A section on Conflict of Interest has been added to Article 5. There being no further discussion, a motion was made to approve the proposed amendments to the bylaws. Note: Amendments to the bylaws shall be effective on the date of approval of the proposed amendment to the covenants. NOMINATIONS TO THE BOARD OF DIRECTORS Jay asked for nominations from the floor to serve as a Director on the Board for a period of one year to fulfill the unexpired term of Board member David Bowden who resigned earlier in the year. Two names were submitted: Christine Dull and Lynn Ault. Motion was made and seconded to close the nominations. Having received a majority of the votes of the owners present or by proxy, Lynn Ault was elected to serve for a term of one year. OTHER BUSINESS 1) Social Committee chair Jean Panning reported on past activities and future plans for the committee. Dates of future events will be listed in the Quarterly Newsletter. 2) Owner mentioned that streets can become packed with ice in winter even when snowfall is less than 2". Lawnscape will be contacted to see if they can use an environmentally friendly substance to help with the melting of compacted ice on both streets and sidewalks. 3) The tennis courts will be spray washed in the Spring. 4
4) Owner Phil Burt reported that he has received an estimate to replace the large wooden sign at the entrance to the Hamlets. Vendor has offered discount if order is placed at this time. Funds for sign replacement are in the budget. Motion was made and seconded to authorize the Board to replace the damaged sign using the above-referenced vendor. There being no further business, motion was made and seconded to adjourn the meeting. Respectfully submitted by Carolyn Krebs, Secretary 5