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Wednesday, November 8, 2017

Minutes: Autumn Walk 2017 Annual Meeting - Draft

The 2017 Autumn Walk HOA Annual Meeting was held on Oct. 30, 2017.

Highlights:
  • HOA is in strong financial shape, ahead of schedule in saving Reserves
  • Monument Sign: Chose a design (see bottom) and will proceed to installation
  • Landscaping:
    • Need to spend $2100 to replace shrubs in small island
      • Possibly killed by dog waste, cannot proceed till this is addressed
    • Will defer maintenance/replacement of crepe myrtle trees/knockout rose on large island
    • Landscaping contract issues this year
      • Severely behind schedule early in year, inconsistent even later
      • Landscaper not identifying issues (such as the dead shrubs)
      • Have discussed with vendor, will monitor performance in final year of 3-year contract
    • Water problems coming from neighboring HOA addressed via Emerson HOA
      • Initially not noticed behind houses because Autumn Walk HOA is maintaining yards
  • Elections
    • Two positions with 2-year terms elected
    • 2018 Board:
      • President: Dharmesh Patel
      • Vice President: Fred Leong (also Secretary & Communications)
      • Member at Large: Tammy Penning
Details:

1. Quorum was established
  • Board Quorum Established
    • Two of three Board Members in attendance (Dharmesh Patel, Tammy Penning; absent: Mike Fitzgerald) 
  • Homeowner Quorum Established
    • 12 houses needed to establish quorum (elections)
    • 5 houses were present
      • 9811, 9836, 9840, 9844, 9854
    • 9 houses submitted proxies
      • 9804, 9810, 9814, 9832, 9834, 9848, 9858, 9862, 9864
2. Call to Order and Introductions
  • Mr. Patel calls the meeting to order at 7:10 PM
  • In attendance:
    • April Day, CAS Management
    • Board Members: Dharmesh Patel (President), Tammy Penning (Member at Large)
    • Residents: Bindu, Raghu, Aru, Fred
3. Adoption of 2016 Annual Meeting Minutes
  • 2016 Minutes taken by Fred were adopted by the Board unanimously
  • Fred will once again act as secretary for this meeting
4. Financial Review
  • The Board conducted a review of the FY18 Budget
    • Copies were provided to all in attendance
    • Previously mailed to all owners in Autumn Walk
  • April reported balances for Operating Funds and Reserves
    • Both Operating Fund and Reserves increased in the past year
    • Discussion of Reserves:
      • Two-thirds of Reserves in a Mutual of Omaha CD that is maturing
      • New CD rates were provided by CAS
        • 25 month term was the highest rate 1.65%
      • Current Reserves are not laddered
        • Other funds are held in a money market
        • CD earns much more interest than money market 0.15%
        • Potential benefits of laddering:
          • Higher overall interest rates in a rising rate environment
          • Always have a CD maturing in case the money is needed
        • Board deferred decision until amount needed in the Reserve is determined (later discussion on monument sign project, though none of the Reserve funds are needed at this time)
      • We have too much in our checking: CAS recommends moving some into Reserves or using it
    • Auditors:
      • Long-time auditor changed personnel and does not seem to be able to keep up with workload
        • Were only able to complete FY17 recently - had to file for an extension on taxes
      • Some Boards are opting to do the audit themselves
        • Save the cost of the audit
        • Avoid late filing
      • CAS is testing a new company for some small communities
        • Limiting to HOAs below 50 units to ensure this company is not overwhelmed
        • CAS did due diligence on new company
          • They have been performing HOA audits for 16 years
      • After discussion Board directed CAS to query the new auditor on our behalf
        • We have not signed an engagement letter yet
        • May actually be less expensive
    • Social expenses
    • Insurance
      • Four types of insurance are carried by the HOA
        • Liability for common areas (e.g., if someone trips and falls)
        • Directors and Officers (most important)
          • Protects the Board from being sued
        • Workman's Comp
          • Not mandatory but highly recommended
          • Covers vendors who might not be insured
          • CAS however always checks that vendors have insurance (currently only applies to landscaping vendor)
          • Protects HOA if the vendor's insurance has lapsed, etc.
          • If have it for 5 years without claims start getting refunds
            • We are at the point now where we should start getting refunds
        • Fidelity
          • Crime, embezzlement coverage
          • 3 months' dues plus a percentage of reserves
          • Maryland began requiring this coverage because an association in Bethesda lost $1.5M to embezzlement 4 years ago
    • Legal Fees
      • Have not had to use this so far
      • This line item can rise sharply if we must use it
    • Management Fee
      • Rate is staying the same, but the fee is going up slightly
      • CAS pays a fee for the storage of records for HOAs being managed
        • This fee has been rising, so this year they decided to pass on $50 of the increase
    • Improve and Replace Landscape
      • Increased this line item slightly by reallocating other funds that weren't being spent
      • See later discussion
    • Landscape Contract
      • We are in the final year of the 3-year contract
        • As a reminder, after the one-time annual Spring Clean-Up, it is homeowner responsibility to weed, trim, and mulch front flower beds (not covered by contract)
      • Extended discussion of the vendor's performance this year
        • Very difficult start this Spring, not just our HOA but throughout Emerson as the vendor has contracts in most of the community as well as the Master HOA
        • In past years, the landscapers came every Thursday, but this did not seem to be the case this year
        • Over the course of the summer performance improved, though they seemed to send much smaller crews and take longer to complete all of Emerson
        • In addition the landscaper does not seem to be flagging issues as they have in the past
          • We have had issues with dead shrubs, water problems, etc. that went unreported until residents brought to HOA's attention
          • Vendor should be doing multiple walkthroughs each year reporting problems
      • Plan going forward:
        • Have discussed this with the vendor's supervisors, believe they do not want to lose contracts
          • Will ask them to notify us if they are behind schedule
          • Provide a plan for catching up
          • Also provide a report when they do come out
            • Notify us when they were on site
            • Also catalog what they saw (issues)
            • Provided on weekly basis to Board
        • Unclear if we should continue signing 3-year contracts
          • (In past, these contracts provided price stability)
          • Another community has invoked a contract termination clause (30 days written notice) to exit their contract 1 year early
        • Dharmesh has been tracking their service visits
          • Tammy also offered to make walkthroughs
        • We want to see them return to the expected level of service
      • Snow Removal
        • Was good last year
        • Vendor emails Dharmesh before every potential event with options that the HOA must choose (come out, don't come out, etc.)
  • The FY18 Budget was adopted by the Board.
5. President's Report
  • Things going well, have had Picnic and Chili Cook-Off as community gatherings
  • Community Entrance Signs vs Landscape Beautification
    • Extended discussion of whether to complete both projects
    • Entrance Sign
      • Three concepts (provided to those in attendance) from two vendors
        • Both vendors could provide, but one was lower in cost
        • CAS is confident both vendors can provide a quality product
      • Discussion of the three concepts by all present
        • General agreement that the third concept (wall) is too large for the space where it would be installed; plus cost is 1.6X other two concepts
        • Other two concepts are variants on the brick columns seen in several other Emerson communities (e.g., Skylark Ridge)
          • Brick structure
          • Precast cap
          • Cast bronze plaque (black and gold)
          • Second option includes 2-foot stone base
          • Feather over "Emerson" dropped because it would add 50% to cost
      • Board chooses Option #2 (brick column with stone base)
        • Budgets funds to include permits (less than $300) and processing fees ($100/hour)
        • Will transfer from Operating Funds to Reserves to cover the cost of the sign
          • Then will pay for the sign from Reserves
          • No net decrease in the Reserves
          • Note that we are ahead of the Reserve Study projections by roughly this amount
            • 2015 Reserve Study projected the amount that must be saved every year to cover long-term costs (repaving parking spaces, replacing retaining walls, etc.)
      • Timetable
        • If signed contract with site plans completed immediately, might be able to get rebar in the ground by end of November (must be above 30 degrees)
        • Precast (face of the pillar) would take the longest
        • Site plan needed - may be able to use the one form the builder
      • Warranties and Maintenance
        • 1 year warranty, but expected to last forever
        • Probably need periodic cleaning as the other signs do
    • Fixing Landscaping
      • Half the shrubs on the small traffic island at the front of the community are dead
        • Will cost $2100 to replace (taken from Operating Funds)
        • Possibly from dog owners allowing their pets to relieve themselves on these plants and not picking up dog waste
        • Cannot replace the shrubs until we are sure they will survive
      • Large island at back of community
        • Crepe myrtles need to be trimmed, potentially replace the knockout roses
        • Deferred at this time due to cost of repairing the small island 
6. Resident Forum
  • We had a serious problem with water from neighboring community washing out the yards behind one row
    • Neighboring house developed a water problem
    • Not noticed for a while because yards are maintained by HOA landscaping contract
      • Yards/hill were washing away, standing pools of water
      • Landscaping equipment tearing up yard, leaving deep ruts
    • Because this crossed HOAs Autumn Walk referred the matter to Emerson HOA, which worked with the neighboring HOA to resolve
      • Water stopped about 2 weeks ago, area is recovering quickly
7. Elections
  • Once business was concluded Elections were held for two positions
    • Autumn Walk HOA has two-year terms
    • Two were elected in 2015, one in 2016
  • No nominating forms were received, so nominations were made from the floor
  • 2018 Autumn Walk Board will be:
    • President: Dharmesh Patel
    • Vice President: Fred Leong (will also continue as Secretary & Communications)
    • Member at Large: Tammy Penning
8. Meeting Adjourned
  • Meeting adjourned at 9:10 PM by President (Dharmesh Patel)


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