Attendees: Cheryl Mitchell, Frank Morris, Steve Kemp
Association’s relationship with Mark Hitchens
Mark takes care of our common areas. Cheryl commented that she had noticed that our common area plantings were being pruned and wondered if we had a formal contract with Mark. Frank commented that he had not seen a formal contract in the HOA records and that it appeared we paid Mark on an as billed basis. It was emphasized that no one had any issues with the work done by Mark, only that a comparative estimate might be in order for the benefit of the community. It was decided that Frank would contact Mark to clarify these issues.
Delinquent payment of HOA fees
There are two homeowners who have paid only small portions of their assessment fees and both payments were over 30 days past due. This problem will be addressed at the next board meeting.
Delaware Uniform Common Interest Ownership Act (DUCIOA)
Steve and Frank commented on opinions voiced during Budget Committee meetings that Willow Lake was not subject to the act. Cheryl commented that she thought we were because our assessment was over the $575 per year threshold. It was decided that Frank would contact the State of Delaware department involved and obtain clarification.
Len Wright’s Findings
Len had investigated the grass carp replenishment and other treatments for the lake. He had obtained quotes and shared them with the budget committee and the board. It was decided that the board would ask him to share his findings with the lake committee for input into the 2017 budget.
Budget Committee Recommendations
Steve Kemp was invited to the meeting to present recommendations from the Budget Committee. This committee was formed after the 2015 Annual Meeting in order to evaluate the recommendations from the reserve study done by the Whayland Group. The major topics under review were road repaving and seal coating, the grass carp replacement to control phragmites proliferation in the lake, and storm water management (bio-swales) improvements. The Committee was chaired by Steve Kemp with contributing members Kathleen Schissler, Len Wright, Tom Allen, Bob Grasso and Frank Morris.
Capital (Reserve) Budget Accounting
It was recommended that we use an accounting tool developed by Kathleen Schissler to track the community’s capital (reserve) budget rather than pay the Whayland Group every 3 years to update their original study. Kathleen created a similar tool to the one used by Whayland (Threshold Funding Model) and instructed Frank on its use. Frank indicated that he was confident we could track and report on the reserve budget using Kathleen’s tool.
2016 Budget Errors
Two errors were found in the calculations that had determined the 2016 HOA assessment. The community’s insurance liability payment was underestimated and the assessment per household overestimated. The result was an overpayment of approximately $16 per household per year. The decision was made to pass this amount through to the 2017 budget to reduce the total assessment owed per household.
Seal Coating
Research done by the budget committee members, primarily Kathleen Schissler, indicated that the seal coating process was a cosmetic treatment at best. There were concerns about documented environmental hazards and possible adverse structural effects (moisture entrapment under the road surface). The decision was made to eliminate seal coating from the capital (reserve) budget.
Road Maintenance
All five members of the budget committee related observations of road damage that will most likely require attention prior to the complete repaving scheduled for 2029. There was general agreement that some areas of the road will need repairs in 2017. It was decided that Cheryl will obtain estimates for repairs and ask homeowner and paving expert Dan Rocks to review for credibility.
Grass Carp
The budget committee discussed the need to reserve $30K for grass carp as suggested in the Whayland study. It was noted that the life span of the carp may have been underestimated and that the addition of more carp may have an adverse effect upon the water quality in the lake. It was decided to scale back the carp replacement to correspond with the observation of hydrilla growth in the lake. The Whayland reserve estimate was reduced by two-thirds to $10k. Also, any observed hydrilla problem would be addressed from the operating budget and passed through to the capital (reserve) budget if necessary.
Storm Water Management
Action on funding work on the storm water management areas (bio-swales) was tabled pending recommendations from the lake committee.
2017 Capital (Reserve) Budget
There was a discussion about when the 2017 budget should be completed. The board is required to have a completed budget 60 days prior to the annual meeting. A preliminary date of August 1st was suggested pending budget input from the lake committee. Also, as suggested in the Whayland reserve study, a minimum funding balance of $5,000 will be maintained in the capital (reserve) budget. It was decided that a corresponding budget cushion of $5,000 will be maintained in the operating budget.
Installment Payment Reminder
It was decided that a notice would be sent on June 1st to remind homeowners who had elected to pay their 2016 assessment in 2 payments that the balance of their assessment was due by June 31st.
Legal Fees Line Item in Operating Budget
It was decided that a line item would added to the operating budget for legal fees incurred by the association in the attempt to collect delinquent HOA assessments. As of March 23rd, the community has incurred over $600 in legal fees for which they have not been reimbursed as required by covenant. It was decided to make the community aware that they are all sharing this expense due to non-compliance by 1 or 2 homeowners.
Action Items:
- Cheryl will check on trailer parked at rental home. Trailer was gone as of 3/24/16. Apparently, these people are moving and using the trailer to transport furniture etc.
- Frank will check with Mark Hitchens about contract, pricing, etc.
- Frank will try to get clarity on DUCIOA statute.
- Steve will talk to Len Wright about transferring research on lake to Bob Grasso and Robert Lamontagne.
- Cheryl will obtain estimates on Road Maintenance.
- Cheryl will get estimates for lighting at community entrance.