DRAFT COPY
Inner Harbor Village Condominium Association
Meeting Minutes
August 12, 2005
Opening:
The regular meeting of the IHVCA was called to order at 1:03pm on August 12, 2005 at the Bay Club, Port Ludlow by President Mark Garcia
Board Members Present:
Mark Garcia, Gregg Hupp, Brett Oemichen, Kees Bouterse, Bob Edelblut, Pegi Graham, Jon Olsen, Bev Rothenborg
Absent:
Jack McKay
Resident Guests Present:
Truman Thompson, Margaret Ischer, Sonya Harmon, Marianne Barber, Trix Bouterse, Barbara Landi, Dorothy Foust, Frosty Foust
Special Guest Present:
Allen Goff, President, Bestscape Management, Inc.
President’s Report:
President Garcia announced that the meeting would be recorded on a digital audio file. This audio file will be archived on a CD for future reference.
Acceptance of Minutes:
The July 8, 2005 Minutes were accepted by the board with correction submitted by email.
Discussion of Bestscape Contract:
As a courtesy to the special guest present, Allan Goff of Bestscape Management, Inc. was given the opportunity to respond to a letter sent to him on behalf of the Association by President Garcia outlining several deficiencies in Bestscape’s landscaping service. A letter of response was also distributed to Board members. Mr. Goff recognized the deficiencies noted in the letter and apologized for them, vowing that Bestscape’s service would improve because of an internal reorganization, better communication and tighter controls. His letter of response contained a detailed “Corrective Action Plan” authored by Jon Goff, which promised to bring the complex up to acceptable landscaping standards and maintain it at that level. Several Board members questioned Mr. Goff on specific landscaping issues. During the discussion it was noted that the current contract with Bestscape did not include two activities requested in the original request for proposal – Monument Maintenance and Barking and Mulching. At the conclusion of the discussion, Mr. Goff was thanked for his attendance and excused from the meeting.
Financial Report – Mark Garcia and Brett Oemichen:
Mark Garcia, Association Bookkeeper presented and explained the financial report. He noted that two payments were made in the preceding calendar month to each of two regular vendors because funds were available to do so. This did not constitute a double payment, but only a change in payment date. He also noted that the high-interest-bearing CD at American Marine Bank had been redesignated as “Reserve Account” and that another savings account had been opened with approximately $11,000 and designated “Operational Savings,” thus segregating reserve moneys from operational moneys. Assets as of August 11, 2005 were:
Checking $8510.88
Operational Savings 11,000.41
Reserves 94,322.02
Brett Oemichen, Association Treasurer, distributed a letter of engagement from Port Ludlow CPA firm, Froula & Glessing regarding an audit of IHVCA’s books as required by a vote of the membership at the June 22, 2005 Annual Meeting. The letter proposed that their firm would audit IHVCA books for Fiscal Year 2004-2005 at an estimated cost of $1500-$3000. Their proposal noted that the American Institute of CPAs also requires a “reserve study” to be conducted by an independent third party. Discussion followed concerning the necessity for IHVCA to have a reserve fund or to bear the additional unbudgeted expense of a “reserve study,” estimated to cost approximately $1200. The consensus of the Board was to explore the need for a reserve fund and consider adding a “reserve study” to the budget for the next fiscal year.
Motion _14_ Director Oemichen moved that “the Association employ Froula & Glessing to proceed with the audit of Fiscal Year 2004-2005 Association books, eliminating the need for a “reserve study.” Motion seconded by Director Olsen. Passed unanimously.
Landscape Report – Kees Bouterse and Bob Edelblut:
Bob Edelblut, Landscape Co-Chair reported spending significant time over the past month reviewing the condition of the landscape with various representatives of Bestscape. He believes that Bestscape has put forth a positive effort to create a good impression and demonstrated willingness and interest in making up for past deficiencies. He expressed serious reservations about Bestscape’s ability to maintain the increased level of service they have demonstrated recently. However, he does not believe that the Board should terminate Bestscape’s contract at this time because we would be unlikely to find a suitable alternative at a reasonable price at this time of the year. Bob would prefer to continue with Bestscape, closely monitoring their activities and requiring detailed documentation of their activities. Director Bouterse had nothing to add.
President Garcia noted that the homeowners of Building 16A had encroached on Association Common Area behind their unit, clearing and modifying vegetation, and installing several personal elements. He reported that he had sent a letter on behalf of the Association noting that this violated Association governing documents and asking that the homeowner’s cease and desist. At that time, the homeowners in question submitted a request for retroactive permission for the landscape modifications they had made as well as retroactive permission to install a propane tank. Director Graham questioned the advisability of allowing any homeowner to modify Common Areas. Director Rothenborg noted that prior Boards had granted approval for certain Common Area modifications at the request of homeowners so that a precedent had been set. However, any such modifications do require prior Board approval. The Board agreed to affirm this precedent. The concerned homeowner agreed to make no further modifications to Common Areas, except to remove some items previously installed, and the Board agreed to table the request until the next Board meeting so that Board members could view the area.
President Garcia noted that prior Board decisions establish a precedent and remain in effect unless modified or reversed by a vote of a succeeding Board. Director Oemichen, noting that the concerned homeowners claimed to be unaware that Board approval was required for their actions, suggested that Board policies and decisions be codified and distributed to the members.
Maintenance Report – Pegi Graham and Jon Olsen:
Director Olsen reported that a total of four skylights in two units (Building 15A&B) have leaky seals and are therefore cloudy, but that there is no leakage of water into the units. The manufacturer will not replace these skylights under warrantee because their warrantee extends only to original owners. Replacement cost would be approximately $1600 for all four skylights. However, he noted that the current homeowner of 15B (where three of the four affected skylights exist) claims that the previous owner agreed to replace these skylights as a condition of sale. Director Olsen will attempt to obtain a copy of the agreement between buyer and seller and present a recommendation to the Board at its September meeting.
Discussion followed concerning whether Association CC&Rs address skylight maintenance. Board consensus was that skylights should be considered the same as windows, with repair of any breakage or leakage being the responsibility of individual homeowners.
Director Graham noted that a capable handyman has been found who will visit the Village monthly to handle small repairs at a fee of $30 per hour. She suggested that the Association open an account with True Value with a $100 limit against which the handyman could draw for IHVCA repair materials.
Director Graham noted that our roofer had recommended that roofs be cleaned only when absolutely necessary because powerwashing can be detrimental to roofs. She thus recommended that roof cleaning be delayed until September or October each year because much of the growth dies and drops off during the summer months. However, gutter cleaning should continue as in the past.
She reported that repairs on Building 18 are encouraging. After removal of old carpeting, the stairs are intact and only one support beam appears to need replacement. Director Olsen questioned the appropriateness of the Association replacing porch railings on Building 18, believing them to be Limited Common Area elements. He asked that he not be held legally responsible for this action, should it ever come to a lawsuit. So noted.
Finally, Graham noted that clogged dryer vents can be a fire hazard and requested that a notice be included in the next Association newsletter asking that all dryer vents be cleaned at the expense of the homeowner.
Recess and Resumption:
At 2:45pm President Garcia excused himself from the meeting due to another engagement. Vice President Hupp took over as chair and called a brief recess. The meeting was called back to order at 2:58pm.
Motion __11_: Director Olsen moved that “the Association begin an immediate search for a new bookkeeper.” Seconded by Oemichen. Passed unanimously.
Insurance and Hospitality Report – Bev Rothenborg:
Director Rothenborg clarified insurance coverage, reading from our policy that “each of the following is insured. Any person who has been, now is, or shall become a duly elected or appointed director or trustee, a duly elected or appointed officer, employee, committee member, whether or not salaried, and any of your members acting at the direction of your Board of Directors on your behalf in a voluntary capacity.”
She also reported on her and Director Graham’s attendance at a CAU-sponsored seminar for homeowner association members. She noted that insurers keep careful track of claims and cautioned the Board against making claims other than for major problems. She also reported that in her roundtable session, representatives of other associations had been appalled that our Association did not use an outside bookkeeper. Because of the level of concern expressed and sad history reported by representatives of other associations, she recommended that the Association be proactive in periodically inspecting units for potential safety and damage causes such as hot water heaters, washing machine hoses and dryer vents.
CC&R Committee Report – Gregg Hupp:
Director Hupp reported that the committee had met on August 4, 2005 to consider results of the Homeowner Survey and to discuss next steps. The committee was impressed with the high level of response (80% of IHVCA homeowners responded) and felt that those who responded were representative of the community as a whole. Because a large majority (70%) of those who responded to the survey expressed a preference for the Association to continue its policy of Limited Common Area maintenance, the committee felt it is incumbent on the Board to draft appropriate CC&R amendments to clarify and formalize that position, and to submit them to a vote of the membership as soon as is practical. Bob Edelblut will draft a timetable for completion of various tasks involved in accomplishing that goal.
The committee also felt it was important to develop a long range maintenance plan, which would provide as accurate as possible an estimate of what maintenance and repair would be required at what time and at what cost. Bob Force was asked to explore options for developing such a plan, and has had preliminary discussions with Mike Derrig of Derrig & Associates, who has considerable experience in this area. The committee also recommended that the Board adopt a temporary moratorium on Limited Common Area maintenance and repair to allow a cooling off period until appropriate amendments can be presented to the membership for approval or disapproval.
Discussion followed on the implications of such a moratorium, with the consensus of the Board being that it should not affect any work already underway or any project for which material was already purchased or contractors scheduled. During the course of this discussion, Director Graham noted that, during her term as Maintenance Chair, she has contracted for no maintenance without first presenting it to the Board for approval, except for very small repairs. All major projects have been pre-approved by the Board.
Motion _15__: Director Hupp moved that “the Board adopt a temporary moratorium on Limited Common Area repairs until such time as the membership votes to amend the CC&Rs.” Seconded by Director Edelblut. Discussion followed regarding the likely term of the moratorium, with Director Edelblut expressing the expectation that a decision would be made by the end of 2005, hopefully sooner. The Board agreed that the moratorium would not apply to any hazardous or safety-related maintenance requirements. Motion passed unanimously.
Discussion moved to the committee’s recommendation for development of a long-range maintenance plan. The Board agreed in concept to moving forward, and asked that Bob Force contact the “reserve study” firm recommended by Froula & Glessing as a potential resource for developing the plan.
The Board then moved on to consideration of several motions previously submitted.
Motion __16_: Director Edelblut moved that “the Association not terminate Bestscape’s contract at this time. That we create a monitoring cycle to evaluate all of Bestscape’s work in the months going forward for the balance of their contract. That we openly communicate our concerns and grievances with them and that we require them to provide us with documentation of what their plan and the implementation of their plan is. To be reviewed on a monthly basis.” Motion seconded by Director Oemichen. Passed unanimously.
Motion _13__: Director Hupp, reading from the September, 2004 recommendation of the Long Range Planning Committee, whose recommendation had been accepted but not specifically noted in Board minutes, moved that “the Association begin using deck and railing materials that require minimal ongoing maintenance. Specifically, we recommend that a composite product such as Evergrain become the standard for decking material and that a while composite material such as Weatherbest be used wherever practical for railings. The Association will use there materials whenever replacement of decks and/or railings is required.” Director Rothenborg seconded. Motion carried.
Motion _7___: Director Hupp moved that “the Association send a letter seeking retroactive approval for the use of composite deck and railing materials as replacements to the SBCA Architectural Review Committee.” Director Rothenborg seconded. Passed.
Motion __8__: Director Hupp moved that “the Association send a letter seeking retroactive approval for installation of a propane tank at Building 10-C. Motion seconded by Director Rothenborg. Motion amended by Director Graham to include request for a propane tank at Building 16A. Motion carried.
Truman Thompson, a homeowner adjacent to the Common Area in question, spoke against granting approval for Common Area modifications behind Building 16A, saying that a visual and sound barrier had been removed between his unit and 16A. The owner of unit 16A agreed to make no more changes in the Common Area behind his unit.
Trix Bouterse noted that unkind words had been expressed by one homeowner to her husband and encouraged all homeowners to remain civil in their dealings with one another.
Marianne Barber questioned the validity of the recent homeowner survey and asked why the Board was going to the expense of drafting and submitting amendments to the CC&Rs because she believed they would not pass.
Frosty Foust offered the opinion that, based on prior experience working with Mike Derrig, he would be well suited to the task of helping the Board to develop a long range plan.
Resignation: Immediately following the Owner’s Forum, Director Brett Oemichen submitted his resignation from the Board of Directors because he had sold his home in Inner Harbor and was, thus, no longer qualified to serve.
The meeting was adjourned at 4:00pm by Vice President Hupp.