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Date: Monday, February 28, 2000
Place: Silver Firs Elementary School
Time: 5:00 PM 7:00 PM
Eric Evans called the meeting to order at 7:10 PM.
Board Members present:
Eric Evans, President
Jim Yourkowski, Director
Tammy Barth, Director
Denise Thoreson, VP, Secretary/Director
Michael Bitz, Director
Board Members absent:
Jeff Kissner, Director
Guests:
Stacy Liedle
Kevin Nichols
Volunteer Homeowner(s) present:
Stephen Eilers
Introduction of Board Members
Each Board Member introduced themselves and gave a brief history of how
they came to be on the Board and how long they have been serving on the
Board.
Introduction of Web Page
Jim Yourkowski and Kevin Nichols presented the new Web Page created for SF
PHII HOA. Some of the benefits of having the Web Page such as reducing
costs to the Association, providing informative documentation on-line and
establishing clearer communication paths between the Homeowners and the
Board Members were discussed. As an example, Jim said that currently it
cost approximately $5,000 per year to mail the meeting minutes out to all
the Homeowners. He believes that having the Web Page and being able to
e-mail the minutes to many of the Homeowners who have e-mail could cut
these costs in half, or more.
The Web Team currently consists of seven Homeowners with Kevin Nichols as
the Web Administrator. These Homeowners are volunteering their time for
this project as they see this as a great benefit to the neighborhood.
Jim and Kevin then went through some of the features of the Web Page such
as a map detailing every lot and common/open space area within Silver Firs
Phase II, the search capabilities of the Web Page and how to contact the
Board Members regarding various items such as Architectural Control,
Reporting Violations and obtaining general information. Jim asked that
anyone who sends correspondence via e-mail, please include the Division and
Lot Number or Tract Number as noted on the map. This will help the Board
zero in on the exact location of the inquiry quickly.
It was noted that the current e-mail address is temporary and the Board,
with Kevin's help, is working on securing a permanent Web Site for SF PHII
HOA.
Treasurer's Report
The Treasurer's Report, accompanied by a Power Point presentation, was
presented by Eric Evans. Each page was gone through thoroughly, line item
by line item. A copy of the 1999 Treasure's Report will be published on
the Web site soon.
Proposed Budget for the Year 2000
Jim Yourkowski began the discussion regarding the Proposed Budget for the
Year 2000. He said that a transition is going to occur as Centex will be
through developing Silver Firs Phase II sometime mid 2001. As a result,
the Association will have to "stand on it's own two feet". He went
through
the Proposed Budget, line-by-line (see attached Budget
Summary).
Regarding the Office Expenses, he said that one of the many benefits of
having the Web Site is that communication costs will be greatly reduced.
He anticipates a savings of up to $5,000 just in printing, reproduction and
distribution (mailing) of the meeting minutes by e-mailing the minutes, or
getting the Homeowners who have a computer and on-line service, to access
to the Web Site for these minutes and other important communication pieces.
Jim explained that Centex has been essentially 'managing' the Association,
and when they leave it is strongly recommended that a Management Company be
hired. He reiterated what a big neighborhood Silver Firs Phase II is, and
how much work goes into being an active Association member; either a Board
Member or Volunteer Member ? they all work very hard for the Association.
It was reported that the proper Insurance for Silver Firs Phase II had been
obtained and is in effect. While the Board of Directors Budgeted a modest
$7,000 for this insurance, the actual amount came in under budget at
$5,500.
Homeowner Question(s):
Question: "The Insurance last year was $469. Why did this figure
increase so much?"
Answer: The previous insurance policy was inadequate in that it did
not cover all the Open Spaces and Common Areas that need to be
covered. As soon as this was brought to the attention of the Board,
the Board went out to bid to obtain adequate coverage. The best rate
was $5,500; a savings of $1,500 under the budgeted amount of $7,000
Question: "How did Centex arrive at the dollar amount of $27,000 that
they subsidized in 1999?"
Answer: It was predicated on costs of future improvements based on
costs.
Question: "How much land is still in Land Development that 'we (the
Homeowners) are paying for?"
Answer: Centex only insures the land it owns. Therefore, land
retained under Land Development would not be included in the
Associations insurance assessment amount.
Question: "Are there really $5,500 in outstanding/uncollected
dues?"
"What happens after the 3rd delinquency notice is mailed out?"
Answer: The Management Company will initiate a Lien to the home.
Question: "Is there any extra fees on top of the Management Fee for
this Lien?"
Answer: The cost of the Lien and any interest accrued, as well as any
applicable attorney fees, are included in the total amount of the
Lien.
Question: "Why hasn't Centex posted Liens for nonpayment (of dues)
previously?"
Answer: The previous Board of Directors elected not to file Liens for
reasons discussed in minutes from previous meetings. At the last
Annual Meeting there was extensive discussion of delinquency of dues.
A number of Homeowners said they were not informed and did not know
they were delinquent. As a result, the Board voted to step-up
communication efforts so the Homeowners would be more educated and the
Board would be in a better position to file Liens.
Question: "There is an abandoned home in Canterbury, can the HOA do
anything about maintaining the yard?"
Answer: This is a perfect example of where resources are needed in
order to answer questions such as these. Items such as this are
included under the Scope of Services for the Management Company. In
addition, there is a section in the CC&R's which addresses unsightly
conditions within the neighborhood and actions to be taken by the
Association to correct these violations.
Question: "Can the CC&R's be rewritten in Laymen's Terms and posted
on the Web?"
Answer: Currently there is a CC&R Sub-committee who is going through
training regarding the CC&R's. It is intensive, tedious training, and
it is this committee's goal to rewrite the CC&R's in Laymen's Terms
and post them on the Web Page.
Question: "Is there a long term contract with the Management
Company?" "Will the fee need to be re-negotiated year after year, or
can the Association get a long term agreement to guarantee the rate
will be consistent year to year?"
Answer: The Scope of Services was sent out to bid to a number of
companies and most contracts are on an annual basis. It is important
to remain flexible in acquiring another Management Company in case the
one selected does not perform as outlined in the Scope of Services, or
if after a year of working with the Management Company the Association
decides they would like to change the Scope of Services. The State
law of CC&R's actually states that if Centex were to hire a Management
Company, the Association has the right to fire said Management Company
after 90 days of assessment. Therefore, the Association is not locked
into a yearly contract if the Management Company is not performing
within the guidelines of the Scope of Services.
Comment: "The Management Fee should be performance based because you
really don't want to be locked in for a longer period of time".
Questions: "Why doesn't the Association just hire a Collection Agency
to go after the delinquent dues?"
Answer: The procedure for collecting dues delinquent is a Lien
because the dues go with the home, not the person. Liens do go
against the persons credit report so essentially a Lien has the same
discouraging factor.
Question: "Has anyone (on the Board) compared the SF PHII HOA annual
dues assessment with other neighborhoods?"
Answer: Jim Yourkowski noted that most of his knowledge of other
neighborhood's assessments has been from speaking to Homeowners at
Silver Firs. He had been told the following annual dues amounts:
Mill Creek $300, The Falls $200, Gold Creek $230, Silver Firs Phase I
$76. He also noted that it is hard to compare neighborhoods because
you have to take into account all the various amenities.
Comment: A Homeowner commented that they were disappointed that
Centex mislead them regarding the true cost of insurance during the
time that they (Centex) were developing.
Response: Centex has an umbrella policy that covers all of the
neighborhood which is different than an individual entity like Silver
Firs Phase II Homeowners Association. Once it was noticed how
inadequate the policy was, the Board went out to bid right away and
acquired adequate insurance as soon as possible.
Jim Yourkowski then went back to going through the Proposed Budget for the
Year 2000. He explained that the Capital Reserves are funds needed for the
repair and maintenance of the grounds. He noted that there is a
spreadsheet the Board compiled listing all of the items located in each
Tract, their estimated life-span and how much it will cost to
repair/replace/maintain these items throughout their estimated life-span.
The spreadsheet will be posted on the Web page for Homeowners to review.
As an example: There is approximately 750 lineal feet of wood fencing near
the trailheads and entry monuments. It costs approx. $2/lineal foot to
paint the fences ($1,500) and it is estimated this needs to be done every 5
years (20 years life = 4 X $1,500) = $6,000 which would be the amount to
put in Capital Reserves to repaint the wood fencing and keep it's
appearance nice and protect the wood from deteriorating.
Next, Jim Yourkowski discussed Capital Expenses. He described this as
funds set aside for action items the Board want to accomplish this year.
These items include such things as Rules Boards for Tot Lots, Sports Courts
and other Common Areas and Brochure Boxes to reduce cost of mailing minutes
or other informational notices.
Homeowner Question(s):
Question: "Since we help out the YMCA, why couldn't we have the
minutes available at the YMCA?"
Answer: This may be an option. The Board will look into it. In
talking with a lot of the Homeowners, Jim Yourkowski said that 90% of
them have internet access and the minutes will be available on the Web
site. The minutes will also go in the Brochure Boxes at each mail
station.
Comment: "People can still staple ads to mail boxes which is
unsightly."
Response: This is something the Board is working on. The Web site
can, and will, post Homeowner advertisements to help eliminate stapled
pieces paper at the mail stations.
Jim Yourkowski saved the discussion regarding Landscape Maintenance to the
end of the Proposed Budget presentation because he felt it was the most
detailed, consumed a major part of the Proposed Budget amount and required
the most explanation. He noted that the previous Landscape Maintenance
contract did not have a comprehensive Scope of Services that would meet the
standards the Homeowners have been asking for. Upon thorough audit by the
current Board of Directors, it became evident that a more comprehensive
Scope of Services needed to be written; that there was a lot of maintenance
that the Homeowners were requesting be done that was not previously
included in the Scope and therefore was not getting done. As a result, a
new, comprehensive Landscape Maintenance Scope of Services was written.
The Scope of Services was prepared in an itemized fashion that would allow
the Board to adjust certain items up or down depending on the Budget, etc.
Jim noted that a possible risk of itemizing is that sometimes the bid is
higher than if it were a lump sum. It was sent out to bid to three
Landscape Maintenance Contractors. Bids were received from two of the
three contractors, the third declined to bid. The two bids received varied
in such a degree that the Board decided they could not evaluate the bids
properly without at least one or two more bids. The original bid documents
remained confidential ? the members of the Board of Directors were the only
persons with access to, or knowledge of, these bids. Two additional bids
where received and the Board was confident they could evaluate the bids
properly. They are currently in this process.
Jim Yourkowski noted that the relative amount of the Landscape Maintenance
assessment is the same percentage as in previous years. Currently, of the
dues per Homeowner, two-thirds goes towards Landscape Maintenance ? the
same (percentage) is true in the Proposed Budget for the Year 2000. He
also pointed out that Silver Firs PHASE I has elected not to raise their
dues and it shows. He invited everyone to take a drive the PHASE I and
compare the two neighborhoods. He said the first step is to pass the
budget, then spend the money, then assess the performance and return
afterwards; this assessment cannot accurately be done before hand.
Homeowner Question(s):
Question: "Do Homeowners from PHASE I use Phase II's recreational
facilities?"
Answer: "Yes, we don't wear badges" A Homeowner from Phase II
commented that they sometimes use the facilities in PHASE I because
these facilities are closer to their home.
Question: "What is the likelihood of the Landscape Maintenance
dollars being refined?"
Answer: The next step for the Board is to follow-up on the bids
received from the Landscape Maintenance Contractors. The Board will
be setting down with some, or all, of the Contractors and discussing
the numbers and the Scope of Services collaboratively.
Question: "In the best case scenario with the current budget
(Proposed Budget for the Year 2000), if the Landscaping was
renegotiated and there was a surplus, what would happen to that
surplus?"
Answer: There may be a refund to the Homeowners or the surplus could
be applied to the reserve account, or possibly next years Landscape
Maintenance Contract. The Association would need to vote on what to
do with the surplus.
Question: "Why not go with a $55,000 Landscape Maintenance Contract
and reserve more if needed?" "Why not have volunteers pick up some of
the items?" "If you are able to Capital Reserve for other items, why
can't a figure be determined for Landscape Maintenance also?"
Answer: A number of Homeowners where unhappy with the current
Landscape Maintenance Scope of Services. In the previous contract it
wasn't clear what was expected by the Association and therefore these
expectations were unenforceable. The current Scope of Services was
bid to a number of contractors and the $100,000 amount was an average
of the bids received. The Board devised the Scope based on what it
was hearing from Homeowners, and to capture and measure performance.
$100,000 was based on competitive bids, not just a number out of the
air.
Question: "Is it necessary to have four seasonal color rotations at
the entrances?"
Answer: Due to the number of inquiries by Homeowners, the Board
believes this is one item the majority of Homeowners want. They want
the entries to their individual neighborhoods to look appealing and
well kept.
Eric Evans said this Proposed Budget for the Year 2000 has been approved by
the Board of Directors and it will be sent out to the Association
Membership for vote. To pass this Budget, there must be two-thirds of the
Association Membership who vote YES. Centex will continue subsidizing the
Association until the vote. Centex will vote YES for the number of lots it
owns. Each Homeowner will be sent a ballot in the mail that they must
return within the timeframe given on the ballot. If a ballot is not
received it is counted as a NO vote.
Homeowner Question(s):
Question: "Are the detention ponds controlled by Centex, the County
or the HOA?" "Who is responsible for maintaining them?"
Answer: They are controlled by the Association, however, the County
has an easement to maintain them. When a detention pond is built, it
is inspected by the County prior to being recorded. Centex must
maintain the detention pond for two years to insure the pond is
functioning properly. At some point, the pond is incorporated into
the Association. The 'mondo' pond is still under review for
function-ability. If the plantings are eaten by the ducks, Centex
must find a new, less palatable species to replant. Jim Yourkowski
noted that he would like to get rid of all the Scotch Broom within the
next 2 years. He reported that there are several volunteers willing
to do this and suggested organizing some 'clean-up' days.
Suggestion: A "Meet Your Neighbor" get together, or Block Party
where
everyone could clean up their neighborhoods and get to know each
other.
A Homeowner commended the Board on the degree of information and level
of participation.
Jim Yourkowski noted that the Web Site will also have a 'Social' link.
Michael Bitz told everyone that there were Volunteer Sign-up Sheets
located on the tables for Homeowners to sign up to volunteer for
future activities.
A Homeowner asked, "What happens if the budget fails?" Jim
Yourkowski
noted that by not voting, it is the same as a NO vote and that
two-thirds of the occupied homes need to vote YES. Eric Evans said
that in the event the budget did not pass, the Board would have to
adjust the Scope of Services to reflect the new approved budget
amount.
The meeting adjourned at 8:54 pm
Next Board Meeting:
March 27, 2000 7:00 PM
Silver Firs Model Home Sales Office