Cedar Springs Homeowners Association
Special Board of Directors Meeting
Thursday, November 14, 2013
Present: Vince Sellen, Doug Winge, Jean Taylor, Naomi Hanson
Guests: Don Hanson, Art Cawrse, Art Shotwell, Rick Bunzel, Pacific Crest Reserves, LLC
President Vince Sellen welcomed those in attendance and announced that the purpose of this special meeting was to hear a presentation from Rick Bunzel, Pacific Crest Reserves, in support of the Reserve Study Proposal that he had previously provided to the board. This presentation was scheduled by the board to enable Cedar Springs to meet the state requirements that HOA’s must have reserve studies done and, in that regard, that certain amounts of money must be set aside for possible future costs.
Mr. Benzel explained what a reserve study entailed. He and his partner would look at Cedar Springs with the eye to predict what projects would be necessary and what costs would be incurred on the part of the HOA during the next 30 years. He would look at all areas that are the responsibility of the HOA. He indicated that HOA can look at reserve funds in a number of ways. Some do baseline funding which never goes 10 percent below what might be determined to be necessary. The second is full funding so that any cost can be covered at any time. Another option is 60 percent funding which has 60 percent reserve at all times. What the HOA will have to take into consideration is the age of the development and what costs will likely be incurred.
The law mandates that a full study be done in year one. This would be a complete inspection of the facility and grounds. That cost would be $2,400 (if we decide to do the full four year cycle). The second and third year would be a Level Three study which will not entail an inspection but would rather look at the funding plan, taking into consideration any increases in material and contractor costs. The charge would be $350 each year. During the fourth year, an on-site inspection would take place which would result in a condition assessment, a revised life and valuation estimate, a revised fund status, and a revised funding plan. The cost would be $1,750. Therefore, the total cost for a 4-year contract would be $4,800.00 spread over the course of four years. Mr. Bunzel indicated that they could have the reserve study done by the end of December and they would be willing to do an informative presentation at the annual meeting on January 18, 2014.
Since a quorum of the board members were in attendance, Vince opened the special meeting for business at 6:05 p.m. Naomi Hanson moved and Jean Taylor seconded to sign a contract with Pacific Crest Reserves in an amount not to exceed $5,000 over a period of 4 years. The motion passed unanimously.
Doug suggested that the first installment which would become due in 2014 be paid out of the existing reserve fund and the other board members agreed. Information gleaned from the reserve study will be used in preparation of the proposed budget to be presented to the membership in January. Budget preparation will take place at the board meeting on Thursday, December 19. Doug provided a worksheet for the board’s future consideration regarding the need to increase monthly dues to have sufficient monies in the reserve fund. There was also general discussion that there will be the need for new officers and board members in 2014.
The meeting was adjourned at 6:40 p.m.
Respectfully submitted,
Naomi Hanson
Secretary
Upcoming Meetings:
Thursday, December 19, 2013 is the next meeting of the Board. The budget for 2014 will be the main topic of discussion, together with a slate of officers and board members to be presented to the membership. Please consider being an officer or board member.
Saturday, January 18, 2014 is the annual meeting at the Anacortes Library. There will be an election of officers and board members, a reserve fund presentation, and the presentation of the 2014 budget.
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