Teal Lake
Village Homeowners Association
Board of
Directors Meeting
The meeting was called to
order at 3:30 PM at the Bay Club by President Lynn Gauché. Members present
were: Lynn Gauché, Tim Perry, Earl Yim, Jim Richards, Jack Piper and Fran
Wickeham.
Homeowners present were:
Jack Naye, Dick Padilla, Dan Darrow, Esther Darrow, Bert Goldstein, Marg
Haverstick and Patricia Bolquerin.
The minutes of the August
28th meeting were presented and approved by the Board as written.
Treasurers Report:
Treasurer Bob
Duncan was on vacation and Lynn Gauché presented the Treasurers report. The
monthly report showed a comparison of actual expenditures against the
budgeted amounts. It showed that we were over budget due to a couple of
unexpected expenditures. Because we pay Wildflower over 8 months and budget
for each of 12 months, there is a variance. However, it will even out over
the course of the year. The water bill came out much higher than expected
and that also caused a variance from the budgeted amount. Lastly,
millennium cable back billed for additional houses that they were servicing
without knowing it. That number has now been corrected and this should be a
one time variance. Our net worth report through September 30th
shows that our current assets are $37K.
A discussion took place
regarding the watering of the entrance. Jim Richards stated that the area
has been getting over watered and the problem is now solved as he as
adjusted the regulator to cut back on the watering. There may be someone
else in the village that has a key to that regulator box and hopefully they
have not been changing the settings.
There was a discussion
regarding the watering of Sea Breeze Park and the fact that it has been a
consideration to stop watering there and let it grow up. Jim was informed
that the previous Landscape Committee had recommended this action but had
not had an opportunity to inform the Board. Jim was asked to reconfirm this
and make a final recommendation to the Board.
Lynn Gauché presented Bob’s
recommendation for an annual audit and review plan for the association. He
included a purpose and process for that review in his packet to the Board.
TLV resident, Ernie Oxton, had volunteered to conduct the review once the
process and plan was in place. Lynn went over that proposal and process for
the Board and homeowners present. She stated that anyone wishing to review
the plan can view it in the meeting materials held at the Bay Club. She
also explained Bob’s current internal control procedures that are in place.
It was moved that the Board approve the financial records review process as
submitted by Bob Duncan. The motion was seconded and unanimously approved.
Lynn will provide Bob with the results and he will contact Ernie Oxton to
get the review started.
ARC Report:
Earl Yim gave
the ARC report. He explained that we pay 62% of the maintenance of the
retention pond that we share with Bay View Village. Our final payment for
that maintenance was not paid, due to a delay in billing, until we were into
the 2002-2003 budget year. Therefore it will cause small variance in our
budgeted amount for the pond maintenance. He also explained that that there
are actually two ponds. Number one is for the initial filtering of the
water runoff and the second in for holding the cleansed runoff until it
dumps back into the bay. The pond gets choked with cattails and reeds and
must be cleaned to maintain maximum planned capacity. There were three bids
to do the cleaning and the Bay View ARC committee chose one of the bids.
Our share of that will be $1,240.00 for this year.
Two concerns were raised at
this point. The first concern questioned any requirement from Jefferson
County as to adequate capacity planning for water retention. Before we
agree with the proposed contract for maintenance we should know if the work
will meet Jefferson County requirements. The second concern was a question
regarding the money that Bay View received from ORM for the maintenance of
the pond. Does any of the money still exist and if so shouldn’t it defray
some of our costs. Earl said that he would check on both issues. He
recommended a budget change to cover the increased maintenance costs. Lynn
Gauché stated that a budget change was not necessary and would require
approval by the homeowners. Rather the correct process was to cover the
expenses with reserves and show and over budget status against the Holding
Pond Maintenance line item. The Board agreed. Earl agreed to reserve
payment until he checked on the two concerns and reports the answers to the
Board.
Earl also reported that
some homeowners have planted trees that may obstruct views in the future.
There are also trees that are growing up in the common areas that will do
the same if not removed. He will be forming a sub-committee to look at the
common areas and homes to assure that these trees are either removed or
maintained by the homeowner. He stated that unauthorized trees planted by a
homeowner, which must subsequently be removed, will the responsibility of
the homeowner. After the review he will make a report to the Board. Tim
Perry stated a concern that if the annual trimming of the common areas only
covers brush and new alders that will allow evergreens to continue to grow
and that they will begin to block views. He felt that those new trees in
the common area should be cut also. No action was taken on this last issue
and we will need to discuss this further.
Landscape Report:
Jim Richards
gave the landscape report. He stated that the quality assurance plan is
almost completed and should be ready for the next Board meeting. He went on
to report that he has reviewed the language in the contract as to
cancellation. The contractor has stated that there must be 60 days notice,
however he has found verbiage that allows only 30 days notice for
sub-standard performance. Lynn stated that the original contract called for
30 days notice for cancellation with cause in both sections. At contract
signing, the original vendor made the change, which was accepted by the
Landscape Chair at that time. The Vendor apparently missed the second
reference to cancellation notice timing.
Jim reported that the sign
at the entrance is splitting and needs repair. He will be looking for
volunteers who do woodworking to assist in the repair or replacement of the
entrance sign. There will be a notice placed in the Teal Squeal.
Communications
Report:
Jack Piper gave
the report. He stated that due to his computer crashing the Teal Squeal
will be delayed till the end of the month. He said that he needs reports
from the committee members to put in the news letter and he needs them
soon. He said that the webpage for the association is still being worked
on. There was input that the Village Counsel has offered to allow us to put
a link for our web page on their web page. They will not maintain ours but
will allow the link. Fran Wickeham offered to help Jack launch the web
page.
Village Council
Report:
Fran Wickeham
gave this report. He said that he attended a PLVC workshop and it was
enlightening to see how the counsel works and how they think. He stated
that the Ferry System under Referendum 51, will be replacing four boats but
reducing sailings and there will be an increase in costs to riders. He said
that he would be happy to share information with homeowners who have an
interest in subjects raised at these meetings. In the future Fran will
report on any issues that affect Teal Lake and will also serve as a liaison
for our TLV concerns with PLVC.
Annual Meeting
Balloting Issue Update:
Lynn Gauché and
Tim Perry reported on the meeting with an attorney to discuss the process
used to vote for the budget and fee increase. She review the concerns
raised by Carol Saber, which were the sequencing of the vote for budget and
fee increase. Carol believed that the first issue should have been a vote
on the fee increase and then a separate vote on the proposed budget which
then reflected the fee increase if passed by residents. The Board decided
at the August meeting to consult an outside legal source, with specific
expertise in Washington State Law and Homeowners Associations, to review our
process, information packages and ballots. There were two local attorneys
who work with Homeowners Associations considered for our review. Richard
Shattuck was chosen because he is the attorney who consulted on the CC&Rs
initially and currently represents Bay View Village and South Bay, both of
which have similar CC&Rs and By-Laws. Lynn & Tim met with Mr. Shattuck and
provided him a complete copy of the information package sent to all
homeowners prior to the Annual Meeting, copies of the issue statements, both
the proxy ballot and annual meeting ballot, the budget presentation made by
Bob Duncan at the Annual Meeting, the attendance registry and vote
counts. He was also given the CC&RS for TLV and South Bay, as well as our
by-laws and the RCW 64.38, which governs Homeowners Associations Law. Lynn
explained that after a complete review of the package presented, Mr.
Shattuck addressed the “intent” of the CC&Rs when originally written and
“precedent” with regard to the voting process for a fee increase and budget
approval as well as the actual requirements of our CC&Rs and RCW 64.38. He
stated that he could find no intent to require a sequential, two-vote
process. And, based on the fact that this was the first fee increase for
TLVA, he stated there was no precedent set for a sequential, two-vote
requirement to increase the fees. He then reviewed all of the CC&RS,
By-Laws, RCWs and Bob Duncan’s presentation at the annual meeting to
determine if the homeowners were properly informed of the intent of the
meeting and budget/fee vote. Tim Perry interjected at that point that he
wanted the homeowners to know that this process was done on a neutral basis
by the attorney and that he was not a “hired gun” who would say what we
wanted. Tim went on to explain and he did not want to know our opinions as
he wanted to make a neutral and unbiased assessment of the process. Lynn
continued by stating that Mr. Shattuck completed his review of all documents
and provided his conclusion that there had been no violation of the rules
and that the Board had followed all the requirements of our CC&Rs. By-Laws,
and RCW 64.38. She went on to say that the attorney is providing a written
opinion stating that fact. Because Lynn had prepared a complete package of
all written correspondence to the community, annual meeting minutes and
copies of all legal documents, it took less than an hour for this meeting.
In closing, the attorney stated that the information sent to the homeowners
in preparation for the annual meeting was the most complete and informative
of any that he has ever seen.
New Business:
The report from the CC&R Review Committee from Bert Goldstein was
reviewed along with their recommendations. He stated that four members of
the committee had met once and three met twice. Bert stated that the
committee did not feel they had the legal expertise to make specific changes
to the CC&Rs and were presenting general guidelines for consideration by the
Board. Their complete report is attached to the meeting minutes for
homeowner review. The committee made several recommendations to the Board,
including the following:
ü
Homeowners should be allowed input on major issues such as
landscape contract changes that will result in a significant change of
services or substantial fee increases prior to a Board vote.
ü
The Board should hold special meetings to clearly communicate
such issues and receive resident input prior to a Board vote.
ü
To change the fiscal year to correspond with the calendar year
and thus, to coincide with the letting of contracts.
ü
The Board should review the CC&R's relative to multi-year
contracts and determine if the Board can actually agree to multiyear
contracts without a vote of the homeowners.
ü
If attorneys are being consulted by the Board for any reason
they should be asked to provide a written opinion for the association.
ü
The Board should consider writing a set of rules, [commonly
called house rules ed.note], for maintaining external aspects of our
environment. (Lynn asked Bert if the committee would review current rules
in the CC&Rs and present the Board with an initial list. Bert agreed to ask
the committee)
ü
The should Board should review the use of Roberts Rules of
Order for appropriate modifications to insure more inclusive meetings. In
particular, changes that would establish time for resident input during all
Board meetings and prior to Board votes. The time frame could be set and
discussion stopped to allow the Board to vote.
Bert closed by stating that the report was not a
consensus of the committee but rather input for consideration by the Board
and the community.
A discussion took place
regarding representation on the Board. It was suggested by Earl Yim that
each block should select/vote for their own Board representative. Then for
all issues requiring Board action, each representative would go back their
block residents to gain their consensus on the issue so the member would
then vote their block’s opinion. Some input indicated that this might slow
down decisions and processes and that it is so difficult to get people
involved, some blocks might not be represented.
Insurance Update:
Lynn Gauché gave
Bob Duncan’s written report regarding the insurance update. He recommended
that the Board change our insurance carrier and adjust the coverage to
eliminate duplicate or excess coverage and reduce costs. He recommended
Safeco as the preferred insurance carrier because of their rates. The
Board voted to approve the proposed changes and authorized Bob to make the
changes. This will give the association greater coverage for less cost and
will save the association $1,366.00 as year.
Meetings Types:
Lynn Gauché clarified the
types of meetings as outlined in the CC&Rs as well as the By-Laws. She
explained that there are two types. First, there are Homeowner Association
Member meetings, which are the annual meeting, and other special meetings
that require special notification to the homeowners. Second, there are Board
meetings which include regular monthly meetings for which the homeowners are
notified 14 days in advance, currently posted in the Squeal, announced at
the annual meeting and listed in the Voice. There are also special Board
meetings that require only a 3-day notification to the Board members only.
The RCW clearly states that ALL Board meetings must be open to the public.
To comply with these rules all Board meetings will be open to all and held
at the Bay Club. Any work sessions or special meetings will be held one
hour before the regular Board meeting at the same location. Tim Perry
explained that at special meetings of the Board or work sessions no votes
can or will be taken and they are only for the purpose of research and
discussion to prepare or educate the Board on issues that need to be
addressed.
Meeting Dates and Times:
Due to complaints of noise during the regular meeting dates Lynn
recommended, after researching the dates and times available with the Bay
Club, that the meeting dates and times for the regular Board meetings be
changed. The Board reached a consensus that the meetings will be changed to
the fourth Monday of the month at 3:30 with any special meeting or work
session starting at 2:30 prior to the regular meeting. Both are open to the
homeowners.
Safety Committee:
Dick Padilla recommended that the Board get involved in the
“Neighborhood Watch” program. He explained that the Board could sponsor it
and that the Jefferson County Sheriffs office would put on a workshop once a
year for the homeowners in Teal Lake explaining how they can get involved.
He stated that it makes common sense to be looking out for your neighbors or
strangers or suspicious activity in the community and to report those. The
safety committee now has packets on how it works that will be distributed to
the homeowners but they can’t take on the ongoing management and training of
the community. A motion will be drafted for the next Board meeting to commit
support for this endeavor and the information on training schedules will be
put in the Teal Squeal.
Cable TV:
Tim Perry expressed a concern that with the battle between Millennium
and Channel 7 that we may loose the CBS feed. He stated that although it
may not come to pass we should be prepared to review our contract for basic
cable from Millennium to see if they will be in violation of that contract
if the do not provide all of the local channels.
There being no further
business before the Board the meeting was adjourned at 4:55.
|