Teal Lake
Village Homeowners Association
2002 Annual Meeting
Teal Lake Village Annual Meeting Minutes
July 28,
2002
President Perry opened the meeting at 3:15
after it was determined that there was a quorum of homeowners represented at
the meeting.
The board members present were: Tim Perry,
Dick Padilla, Jim Richards, Bob Duncan, Earl Yim and Jack Piper. Board
members missing were Lynn Gauche and Marg Haverstick.
President Perry introduced the members of
the board and presented the State of the Association Report. He explained
the difference between regular meetings and work sessions was that the board
couldn’t vote on issues during the work sessions, as work sessions are not
an open meeting. He went on to state that because of a 26% increase in the
cost of living index over the last 10 years the current dues being paid by
the homeowners would not be sufficient to cover the cost of services
provided. He said that the board would be requesting a dues increase for
the upcoming year.
President Perry’s report included the
creation of a web page for the Association. This will assist in keeping the
Association Homeowners informed on what is taking place in our community.
The Board of Directors is also continuing to produce the Teal Squeal
newsletter that is distributed every other month. Between these two
processes the homeowners will be able to see what is happening. (A copy of
the full text is attached to the annual meeting report.)
President Perry explained the board’s
interpretation of CC&Rs section 5.5 regarding board approval of multi year
contracts. He stated that after seeking legal advice it was determined that
the one-year requirement applied only to agents of the Association and did
not apply to the board.
Bob Duncan gave the Treasurers report. He
gave the bank statement accounting for the time period through May 30, 2002
showing a balance of 28.5K before the clearance of all transactions and a
balance of 14K after the clearance of all transactions from the checking
account. The savings account balance was 23K and we have a 5K certificate
of deposit for a balance of 57K. He estimated that the ending balance for
June 30, 2002 at the end of our Fiscal year would be 43.5K. He also
produced a pie chart for the homeowners showing a breakdown of what our
expenses are by percentage.
Earl Yim gave the ARC report. He explained
that the SBCA had restructured the approval process to allow greater
autonomy to the villages. The new standards allow the TLV ARC to make the
final approval for most of the changes and additions to the community by
individual homeowners. This will speed up the process. The TLV ARC has
reviewed LCAs that are new to assure that they are landscaped properly to
avoid erosion. They found deficiencies and worked out an agreement with PLA
to take care of the problem areas. The ARC has been in the process of
reviewing mailbox stations to see if they needed maintenance. The
structures that did need it were maintained by the homeowners with the
Association paying for the materials to fix them. This will be an ongoing
process. He also reported on the collection pond for Bay View Village and we are responsible
for. It now meets standards and we will share in the cost of repair and
maintenance of the pond. The total amount estimated for next year will be
$1100.00. Lastly he reported on the projects that were approved last year
in TLV. (See full report attached to agenda and minutes.)
There was no landscaping report however, it
was reported that the landscape contract had been purchased by a new company
that has been doing the landscaping for the last two months. They will
continue to fulfill the contract requirements as agreed to by Allcare. A
breakdown of the bid process was given to show how the contract was let.
There was concern expressed by some homeowners that felt the cost of
landscaping was too expensive. It was explained by the board that all of
the bids for landscaping were well above what had been charged in the past.
The cost of doing business and the vastness of this job cause the costs to
go up. Concern was expressed that the board should not have entered into a
three-year contract and that they had exceeded what was budgeted for this
expense. It was explained that the board could enter into a multi-year
contract and did so to gain some cost breaks over the first two years of the
contract. By entering into this contract, the board was able to save a
considerable amount of money over the three years. It was further explained
that by law the board could move monies around within the budget structure
to cover costs that may increase. In this case, the money was there in the
budget to get us through the first year of the contract but a small increase
in dues and a spending down of our assets to cover costs over the next two
years would be required.
A homeowner expressed concern over the CC&RS
clarity and content. President Perry explained that our CC&Rs were put
together by the builder and were created to favor the developer’s
interests. President Perry had discovered that the CC&Rs are made up from
bits and pieces of other CC&Rs from a variety of homeowner’s associations,
both in and out of state. A petition to review the CC&Rs for the purpose of
updating and clarifying them was presented to the Board. This petition was
signed by 54 homeowners. The Board stated that it would form a committee of
homeowners to review the CC&Rs and present their finding to the Board. (See
petition attached to this file.)
The Board presented the ballot issues to be
voted on by the homeowners.
The first item was a change to the By-Laws
extending the length of terms for Board Members from one year to two. This
would allow for a smoother transition of the board.
The second item was the homeowners who were
running for election to the board. There were six candidates for the board
positions. They were; Bob Duncan, Jack Piper, Jim Richards, Earl Yim, Lynn
Gauché and Tim Perry. It was stated that if anyone wanted to be on the
board they were welcome to volunteer at the first regular board meeting and
the new board could appoint them at that time. There would still be three
openings if all candidates were elected.
The last item was the Budget for fiscal year
2002-2003. Bob Duncan presented the new budget by showing a comparison of
the budgets for 2002, 2003 and 2004 to show the increase in costs that the
Village will incur over time. He demonstrated this while also reflecting
the dues increase that was proposed by the Association Board of Directors.
There were questions regarding the amount of the dues increase and Bob
showed a comparison demonstrating the problems with using a lower amount
rather than the amount proposed. He stated that the amount of the dues
increase to support this budget and not require a larger dues increase next
year would be $50.00 per quarter. This would amount to a $16.66 a month
increase in dues. This would mean that the homeowners would be paying
$150.00 per month to operate the association at its current required level.
A motion was made from the floor to mandate
a committee be formed to review the landscaping contract and present it’s
finding to the board for action. The motion was seconded and approved by a
voice vote of the homeowners present.
The ballots were marked and colleted.
Together with the proxy ballots they were all counted by three volunteer
homeowners, Bill Taylor, Clark Ruggles and Frances Wickeham, with the
following results.
All of the candidates running for the Board
were elected.
The issue of changing the By-Laws to extend
the board terms passed 74 yes, 5 no.
The issue of the Budget and Dues increase
passed 47 yes, 28 no
(The Ballots and count are attached to this
report.)
With no further business before the Board,
the meeting was adjourned.
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