Meeting Minutes from Public Meeting December 1, 2010

Monarch Meadows HOA
Annual Meeting
Minutes

December 1, 2010
7:00 PM
Riverton City Library

Board Members Present: Chip Dawson, Tami Gazzero, Sharma Philips, Camille Cook.
Absent: Brian Smith

Management Company Representative: Richard Harman, Western Management,
Broker / Manager

Board Legal Counsel: Samuel E. Bell, J.D., Law Offices of Kirk A. Cullimore, HOA
Division

1. Welcome

The meeting was called to order by Chip Dawson at 7:10 PM. There were eight homeowners present in the audience at that time. Mr. Dawson welcomed those in attendance to the meeting and reviews the proposed agenda.

2. Board Accomplishments 2010

Chip Dawson reviewed some of the items accomplished by the Board during the year 2010. The primary accomplishment, which was spearheaded by Board Member Camille Cook was the repaving and replacement of several dozen driveways throughout the community. This was done without any outlay of capital funds since Richmond American Homes agreed to come back and review and replace many driveways.

The Board also mentioned that it had used funds to replace on driveway that was reviewed and found to be the most in need of repair. Board Member Cook mentioned that the Board would be forwarding a request for reimbursement for the driveway that the HOA paid to replace.

3. Financial Review 10-31-2010 and 2011 Budget Review

Financial Review 10-31-2010
Richard Harman of Western Management reviewed the year-to-date cash flow statement and year-to-date budget for 2010. (See exhibit #1). Resident Mr. Robby Duckworth asked how the HOA had managed to reduce its insurance costs. Mr. Harman explained that on the suggestion of resident Rory Duckworth, the Board had sought out bids for insurance coverage. The Board awarded the bid to Travelers Insurance, and that the insurance policy provided the same coverage and protection our previous carrier had provided.

2011 Budget Review
Mr. Harman explained that he felt that there could potentially be an additional two years of decreasing home prices based on local housing market and general economic conditions. As a result of this, he expected that there could potentially be additional foreclosures and resulting difficulties in reclaiming unpaid association fees and dues. He explained that the flat fee snow removal contract we had negotiated with our landscaping company, Ryan’s Landscaping, had proven costly to the association during the 2009-2010 snow year, but with the early snow that we have had so far, that the association would stand to benefit from the contract. The advantage to the flat fee contract for snow removal was that it provides a reliable number to base budgeting on.

Mr. Harman stated that the proposed 2011 budget included approximately $10,000.00 to be used for asphalt maintenance, including a crack seal and overlay. The association would be reviewing bids for this work in the coming months. He also discussed the difficulty that can arise in trying to recover monies for the association during a foreclosure. He proposed that the Board and association review a proposed change to the CCR’s which would allow lenders to pay up to six months of association fees in the event of a foreclosure. Attorney Sam Bell mentioned that as an amendment to the CCR’s, it would require a 67% approval by the association members.

Mr. Rory Duckworth asked how many homes were currently in foreclosure. Mr. Harman answered that there were three, and that there were approximately $9,000 in accounts receivable. Mr. Harman also discussed the alternative of having the HOA foreclose on a home, and then renting the home out to recoup some of the lost costs. Mr. Bell expressed some concern about that plan of action, stating that legally it could be done, but that he would have to educate and counsel the Board before pursuing that course.

Finally, Mr. Harman stated that if this budget was approved by the Board, that a copy of it would be sent to homeowners with the January 2011 association fee bill.

4. Management Board Elections – Three Members.

Mr. Bell explained that the terms of three Board Members had expired – Chip Dawson, Tami Gazzero, and Brian Smith. As a result, their needed to be an election of Board Members to serve three year terms. Mr. Harman explained the ballots provided to those in attendance. Mr. Dawson stated that he was interested in running for another term, as was Ms. Gazzero. Mr. Smith, who was not in attendance, had previously informed Board members that he would be unavailable to serve an additional term.

Mr. Bell and Mr. Harman then conducted the election. Rory Duckworth nominated and Sharma Philips seconded a motion to place Chip Dawson’s name on the ballot as a Board Member. Sharma Philips then nominated, and Sheryl Burkhart seconded a motion to place Tami Gazzero’s name on the ballot. Robby Duckworth nominated, and Sherry Pendergrass seconded placing Rory Duckworth’s name on the ballot.

Mr. Bell asked if there were any other nominations. There were no other names nominated. Chip Dawson then made a motion to close the ballot nominations, with Sharma Philips seconding the motion. Those in attendance were asked to mark their ballots and submitted them to Mr. Harman.

Mr. Bell and Mr. Harman announced that Mr. Dawson, Ms. Gazzero, and Mr. Duckworth had been elected to the three positions on the Board. At a future Board meeting, the Board will meet and appoint a President, Vice-President, and Secretary, and make other assignments as needed.

4. Open Forum

Chip Dawson asked if there were additional items that those in attendance wished to discuss.

Mr. Robby Duckworth mentioned a light near the east cul-de-sac of London Bay Drive appeared to be on 24 hours a day. Mr. Dawson explained that his could be a testing cycle for the lamp. The Board asked Mr. Harman to have his maintenance crew examine the light and make any repairs if necessary.

Tami Gazzero encouraged association members to seek out potential bids and bidders for landscaping. While the Board likes the service and pricing of the current landscaping company, the Board is always looking for bids and ways to save money.

Mr. Burkhart asked if the Board or association had ever considered xeriscaping as a way to keep water and landscaping costs down. Mr. Harman explained that CCR’s currently dictate how lots are to be landscaped, but that common areas could potentially be landscaped with this method.

Mr. Rory Duckworth asked if the concrete sealer used on his driveway would be reapplied in the future. Ms. Philips stated that this would be occurring, but that a timeline had not yet been set. Ms. Gazzero added that the Board had asked the landscaper to not use salt on the concrete as it has the potential to damage the concrete.

Mr. Dawson took a minute to thank each one of the Board members for their service.

5. Adjournment

Seeing that there were no other items of business or questions from audience members, Mr. Dawson moved to close to the meeting. There was no discussion to the motion. All present voted unanimously to adjourn the meeting.

The meeting was adjourned at 8:09 PM.