Teal Lake
Village Homeowners Association
Board of
Directors Meeting
The meeting was called to
order by Acting President Tim Perry at 3:30 PM. The board members present
were; Earl Yim, Jim Richards, Fran Wickeham, Jack Piper and Bob Duncan. The
homeowners present were; Barbara and Bill Collins, Bill Taylor, Bert
Goldstein, Marti Duncan, Clark and Lois Ruggles.
There was a review of the
agenda and two items were removed.
A motion to accept the
minutes from the October 28th meeting was made and seconded.
There was no discussion and the motion passed.
The Treasurers Report
was given by Bob Duncan in four parts. Bob reviewed the budget reporting
procedures he is currently using (discussed in the last Teal Squeal). In
sum, he said that for any given month he must prepare from two to three
budget execution reports. The first report for any given month is an
estimate. It is presented to the Board at the monthly meeting. It shows
all expenses that have been incurred by the Association during the month and
an estimate of the dues received for the month; it does not include interest
income. Because this report is completed before the end of the month
reported on, it cannot be reconciled against bank statements (they do not
arrive until the second week of the following month). Actual figures for
dues deposits and interest income are taken from our bank statements. The
following month, after reconciling the bank statements, Bob updates the
previous month’s budget execution report and submits it for printing in the
Teal Squeal. This report will vary somewhat from the earlier estimate and
is a much more accurate report. Occasionally, a third report may be
necessitated for a given month. This occurs when dues deposits are made at
the end of the month after the bank statement is closed. As a result, those
dues actuals are not seen for two months. This necessitates a third and
final report. A discussion followed to seek a way to simplify the reporting
process. The board determined that the Treasurer’s report should focus on
the previous month. If anything unusual occurred in the current month (eg.,
major unforeseen expenses, lose of income), the Treasurer would bring those
to the attention of the Board at the meeting.
Bob continued with
Budget Execution Report for the period: July 1, 2002 through November
30, 2002. This report showed that our total income for that period was
$78,668.32 and our total expenses for that same period were $76,045.58. The
report showed that our total assets are $47,618.65. (This will be the last
of these current month reports.)
Bob then gave the
Financial Review of FY 2001 Records. He shared with the board and the
homeowners present the findings in the independent financial review report
done by Garth Lindsey. Bob also shared his responses to specific findings
in the report. Based on this limited review, Mr. Lindsey found that there
were no major discrepancies in the recording income and disbursements or in
following of established internal control procedures. The complete report
and Bob Duncan’s response is attached to these minutes. A question was
raised by a board member as to whether the accountant is authorized to issue
any checks for direct disbursements and if so for what. Bob explained that
while the accountant cannot sign any checks, there are two instances in
which the accountant is authorized to cut checks – for the cost of his
services and for tax payments. All other checks are issued at the sole
direction of the TLV Treasurer. All checks are sent to TLV HOA for
signature (two Board members are required to sign a check).
Bob explained that the
accounting firm that has been doing our accounts (J. Graham Pierson, CPA)
has been sold to Gary V Anderson, doing business as Anderson PLLC, CPAs. He
stated that he has spoken with the new owner who assured him that the charge
for that service would be the same. Bob produced a letter of engagement
which was signed by acting President Perry.
Lastly, Bob gave the
Mid-Year Budget Review. He distributed a report on the mid-year review
of the Budget. His handout showed the Actual expenditures for 2001-2002, the
original budget for 2002-2003 as well as the revised budget. He emphasized
that this was a summary report as every change to the initial budget had
previously been noted as soon as it was identified. The result of the
mid-year review showed that at this time we are $7,499.00 over budget. This
results from a decrease in anticipated revenues of about $2,200 and an
increase in various expense categories of about $5,300. Bob went through
the document and clarified the larger expenditures. Earl Yim informed the
board that the amount for the maintenance of the pond was not an actual
amount but rather an estimate until the work is done and the actual figures
are known. Bob said that he had just received a notice from Millennium
Digital Cable saying that his residential cable TV bill is increasing in
January. He indicated that this could also impact our association bill;
this is yet to be determined. Bob asked the Board if it was their wish that
adjust the FY 2002 budget to show the revisions. The Board decided to not
adjust the budget at this time. Bob also included a report, for the board’s
information, on the estimated cash position as of December 31, 2002. This
entry to the minutes is a recap of what took place and the documents for
this report are attached to these minutes and can be reviewed by individual
homeowners who wish to do so.
The Landscaping Report
was given by Jim Richards. He stated that Wild Flower is done for the year
and will not be back until March of next year. The activity for All Care is
slowing down. They will do one more fertilizing this year that will keep
the lawns looking good next spring. The cutting of the common area, by
contract, is done once a year. The purpose is to cut back the tall brush
and new trees that have popped up. He stated that if anyone has a problem
with the trimming they should call him and he will look to see if there is a
problem. All Care is still picking up yard waste when they are in the
area. The staking program is still in affect and a new survey sheet will be
coming out to ascertain what your preference is as to weeding, spraying and
pruning. From this survey a report is generated to All Care and Wild Flower
so they know the preferences of each homeowner. Jim stated that All Care is
doing a very good job and has been very responsive to the homeowners needs.
A question came up regarding the blowing out of the irrigation lines and if
everyone knows about it. It was explained that the system is shut down and
cannot be turned on by an individual homeowners. All Care will turn the
system on and set the timers in the spring. They will also check the
sprinklers to assure that they are covering the areas they need to. Jim
stated that if a homeowner does succeed in activating their system and it
freezes and breaks it will be the homeowner’s responsibility to make the
repairs.
The ARC Report was
given by Earl Yim. He stated that at the last meeting there was a question
regarding the maintenance of the pond. He stated that Bay View wanted us to
sign an agreement as to our paying 62% of the cost of maintenance. There
was a question raised as to the money that was paid by Pope to Bay View for
maintenance. He stated that the money was spent for expenses incurred for
inspection and consulting and some repairs. The money left amounted to
$3,696.97 and that Bay View would hold that money for an emergency repairs
contingency fund. He produced a Detention Pond Maintenance Agreement for us
to sign. The estimated costs would amount to $1,240.00 and after discussion
it was agreed that the agreement would be signed. It was signed by Acting
President Perry.
Earl submitted the meeting
minutes of the TLV view task force. This committee is looking at trees that
my block views in the future. The committee is made up of; Al Preston, Bert
Goldstein, Arlene Malone, Jack Naye, Fran Oxton, Shari Ernst, Marg
Haverstick, Dan Clinkenbeard, Earl Yim and Jim Richards. He stated that He
and Jim Richards are non-voting members as they are on the board. The
committee, at the first meeting on the 18th of November defined
what a view is. The committee decided that a view is; “A view of the water
(Port Ludlow Bay, marina, Sound Hood Canal), The Mountains, (Mt. Baker,
Olympic and Cascades) and the golf course that would substantially enhance
the real estate value of the property over the other lots in TLV.”
Earl stated that the
maintenance is restricted to only maintain the same view that was there at
the time of purchase by the current homeowner. Earl recommended that
homeowners should photograph their present view to document what it looked
like if there is a dispute in the future. The committee will review any
problem areas and then the committee will determine what maintenance should
be done and who will pay for it. The committee will then submit a report to
the board. Earl clarified that this maintenance applies only to TLV and not
to problem trees in other areas.
The paperwork associated
with Earl Yim’s report is attached to these minutes for review by
homeowners.
The Communication Report
was given by Jack Piper. He reminded that he is starting to put the Teal
Squeal together and that there is a December 15th deadline for
articles. The web site is still ongoing and he has been told that there are
two web sites out there and he is checking into it. He stated that it is
not yet perfect but he continues to improve the content.
Fran Wickeham, gave the
Village Council Report. He stated that he has attended two
village council meetings and the South Bay meeting. He said that the
village council has elected a new treasurer and the trail committee has now
posted directions on all the trails in the area. The information on
Community Block Watch is still being disseminated. The Village Council is
moving forward to look at future needs of the community. He stated that no
decisions have been made but rather this is just an issue of discovery
process. The council is looking at the limits on moorage in the bay and
that there is a Port of Jefferson County requirement that you cannot moor a
boat for more than 30 days.
At the village council
meeting there was a concern regarding the cutting of trees by TLV and they
wanted to be sure that we knew that any cutting of trees over 6 inches round
or 5 feet tall could not be cut without permission of the South Bay ARC.
The auditorium at the Bay Club is being refinished at this time and will be
closed for several days. The South Bay Association is trying to negotiate
with various clubs as to rental fees at the Bay Club. The concern is about
non-members of South Bay using the facilities. That problem is ongoing. A
discussion took place regarding this matter and was terminated when it went
beyond a reasonable amount of time.
Under Old Business,
the matter of the review of the CC&Rs was discussed. Bob Duncan started the
discussion by reviewing of the review, as identified in the original
petition to the Board back in June, and the recommendations of the review
committee. He stated that there is material in the CC&Rs that needs to be
deleted. CC&R references to Board authority needs to be reviewed and
consolidated in the By-Laws. The document is written in confusing language
and needs to be clarified. The services provided by the Association need to
be reviewed. Association members need to be polled as to what services
they want and are willing to pay for. Bob produced a four year projection
that shows if we continue at the present level of services and allow for a
moderate increase in cost of 5% a year in the third and fourth years our
quarterly dues would jump dramatically. It was determined that the best
process to follow is to assemble a packet for each homeowner to explain what
the future holds and to ascertain which services are wanted and which are
not. This will allow the board to determine when and if additional monies
are needed to support the services. Some services are required and some may
be discretionary. Those areas will need to be identified and a vote taken
at a special meeting to determine where changes need to be made. Board
members unanimously emphasized that this is a work in process and that
everyone in the Association must be involved in the process.
Under New Business,
the problem of delinquent dues was discussed. It was stated that only one
homeowner is currently delinquent in the payment of their dues. It was
stated that per the CC&Rs that dues are to be paid within 30 days of the
receipt of the invoice. The comment was made that we could place a lien on
the homeowner’s house. This was done by the South Bay Association and a
court ruling required the homeowner to pay the dues as well as the legal
costs. Tim Perry asked for the board to hold off on placing a lien until he
could talk to the homeowner and see if they were willing to pay the
delinquent fee. He stated that the board could impose a fine for delinquent
accounts if necessary.
There being no further
business before the board a motion was made to adjourn the meeting, it was
seconded and passed. The meeting was adjourned 4:48 PM.
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