Minutes of January 24, 2015 Annual Owners Meeting

CEDAR SPRINGS HOMEOWNERS ASSOCIATION

ANNUAL MEETING

SATURDAY, JANUARY 24, 2015

Anacortes Public Library Meeting Room

MINUTES

Present:  Cedar Springs Lane: Paul and Nancy Stannert (1801), Vince and Gretchen Sellen (1802); Paul Davallou (1804); Anita Dale (1805); Don and Naomi Hanson (1806); Bob and Andrea Gauthier (1813); Doug Winge (1817); Barbara McLendon (1901); Art and Marilyn Cawrse (1902); Alex and Jean Taylor (1907); Lynda Harper (1909); Art Shotwell and Lexie Lamborn (1910); and 39th Court:  Kippy Strandberg (1802).  Present by Proxy:  Cedar Springs Lane: Ted Krieg (1815) to Bob Gauthier; Steve Daly (1903) to Don Hanson.  39th Court:  Bruce and Linda Janicula (1811) to Vince Sellen and Mary Guard (1813) to Art Shotwell.

The meeting was called to order by president Vince Sellen at 10:05 a.m.  Those in attendance introduced themselves.

The president gave a general description of what had happened at Cedar Springs during the very busy past year.  Some of the highpoints were as follows:

• The Landscape Committee took a survey and provided a summary of the results to the membership.
• All units have now been painted with six units painted during the summer.
• The pavement within 39th Court was sealed.  The residents on 39th Court agreed to place their garbage/recycle containers on H so less damage would be caused by garbage/recycle trucks.
• A bridge was placed over the creek for safety purposes.
• $1,382 was spent on roof and skylight repairs.  There will be more repairs needed in 2015.
• A tragic situation at 1819 Cedar Springs Lane necessitated working with the association’s insurance company to make the necessary repairs.  The insurance company was easy to work with.
• Three trees were reduced in size and a fourth Alder on 39th Court which was pushing on the fence was removed.  A southern section of our fence was knocked over by construction crews and will be repaired by the contractor.

Vince reported that $3,000 was budgeted to begin work on repairing the gutter leaks by sealing the miter corners.  The charge was $75 for each unit.  It was pointed out that the gutter slopes are not good and there is a need for more downspouts.  This will be a continued challenge for the board in 2015.

As reported earlier, two trees behind 1815 Cedar Springs Lane and one near 1802 39th Court were reduced in size by Insight Tree Care.  The company also removed the tree pushing down the fence.  This area of the fence will have to be repaired.

Paul Davallou moved and Alex Taylor seconded to approve the minutes of the January 18, 2014 annual meeting.  The motion passed unanimously.  Naomi asked everyone to check the information on the roster to be sure it was correct.  A new roster will be provided to the membership.

Art Shotwell provided a treasurer’s report.  Highlights of his report were as follows:

• At the end of the year CSHOA had a total of $71,774.37 in available funds.
• CSHOA undertook the coordination of clean up/repair to 1819 Cedar Springs Lane.  The insurance company paid CSHOA $23,360.02 for anticipated costs.  Under Vince’s direction, after repairs were completed, there was $4,662.99 in additional income for the association.
• The largest single expense was $36,656.56 for landscape-related services.
• $17,360 was spent on completing the painting of all units during the summer.

The Reserve Account was discussed.  At the present there is $66,461.13 in the account.  The Funding Reserve Analysis suggested a higher amount but it was felt that much of our major expenses have been expended at the present time.  The account will continue to grow.  Art suggested putting a portion of the account in a CD to collect more interest.

Jean Taylor provided a landscaping report.  Some of the highlights were as follows:

• Beginning April 1, 2014, Green Street Yards was contracted to do landscaping and Green Street also provided a new person to work with our irrigation system. 
• The common garden areas were replanted and mulch was added to the front beds on 39th Court.
• Moss was not treated in the grass but will be addressed in 2015.
• Tru Green came three times to treat diseases on plants and trees and also mildew and moss. 
• The board made the decision to not renew the Green Street contract because the work provided did not match their bid.  Simply Yards will take over as of April 1, 2015.  They will take care of spraying trees and shrubs. Tru Green will no longer provide this service.
• The goal for 2015 is to add 3 to 4 inches of mulch to the front beds on each unit on Cedar Springs Lane.
• The Landscape Committee, made up of Susan Miller, Kippy Strandberg, Andrea Gauthier, Gretchen Sellen, Marilyn Cawrse, and herself, provided a survey to the membership and summarized the concerns that will be considered when making future decisions.  She thanked the committee members for their work.
• Bob Gauthier has indicated that he will work as Landscape Coordinator.

Jean was lauded for the time she spends overseeing the landscaping needs of Cedar Springs.  Don and Naomi Hanson presented the members of the committee with African Violets to show appreciation for their endeavors.

Thoughts for landscaping in 2015 were discussed.  Jean was encouraged to continue to assist the Landscape Coordinator in recognizing the needs of the grounds, trees, shrubs, etc.  The trees on the north side may need to be trimmed down to provide more sunlight.  The new multi-level houses in the development to the south may take away privacy of those on that boundary and trees might need to be planted.  Green Street will work on the irrigation system on the west side behind 1806 and 1804 before April 1.

Don Hanson explained the process used in selecting the landscaping company for 2015.  Three bids were received:  Green Street, Simply Yards, and John Bruemmer of Total Home Services.  Don and Susan Miller met with Simply Yards and set forth specific requirements requested.  The board voted to hire Simply Yards as of April 1.  The contract presented by Simply Yards for signature including all the specifics that had been agreed upon. 

Bob Gauthier reported on the status of the Professional Management Services Committee.  The committee members, who have met three times, are Bob and Andrea Gauthier, Kippy Strandberg, Lynda Harper, and Steve Daly.  They are preparing a list of services that they would like the management company to provide.  Five companies have provided information.  Their findings will be summarized and presented to the new board for action.  He said that committee felt that the average age and health of the residents of CSHOA needs to be considered.  Many do not want a leadership role.  There are now seven rentals in the development and those owners have not participated to date.

There was no Old Business.  Alex Taylor mentioned that the outside air intake on furnaces can become lose and go into the insulation.  He suggested checking the furnace filters on a regular basis to see if there is any debris noticeable.  He also stressed the need to clean dryer vents every year and also clean under the refrigerator.

Doug Winge presented the budget approved by the board for 2015.  He pointed out that about 20 percent of the budget goes to insurance; 20 percent goes to the reserves; and 60 percent goes to the operation of the association with 85 percent of that going to landscaping.  Some of the highlights of his report were as follows:

• The insurance policy premium was budgeted the same as 2014 since the new policy comes midyear.  It may be that there will be a premium increase.
• Last year’s dues increase of $10/month went to the Reserve Account.  The 2015 budget allocates $18,360 to that fund for anticipated expenses of tree trimming, plants, gutters, glass, roof repair, and the Reserve Study Update.
• The operation budget was increased to $49,880 for costs to include landscaping services, administrative costs, extra landscaping needs, repair of irrigation system, and other maintenance. 
• The annual income is projected to be $82,740 with the increase of the monthly dues to $250 effective April 1, 2015.  The dues increase will all go to the Operation Budget.
• The Landscape Committee suggested $15,600 in projects of 2015.  About two-thirds of the request is included in the proposed budget. 
• The possible hiring of a management company would anticipate increasing the dues another $20/month.  Any costs incurred if there is a management company are not included in the budget as presented.

Discussion followed regarding the budget as presented and the role of a management company.  It was pointed out that there would still have to be a board of directors but its work would be lessened because much of the managing of the association’s day-to-day needs would be taken care of by the company.  Hopefully this would provide more members being willing to be on the board.  Increases in an Anacortes area association dues from $275 to $380 per month and an out of state association who increased its dues by $75/month ($350) for two years for replacement of the roofs suggested that even $275 would be reasonable in considering these examples.  No decision will be made until recommendations are brought to the board and to the membership.

Lexie Lamborn moved and Don Hanson seconded to accept the budget as presented.  The motions passed.

The following persons offered or were nominated to be on the board:  Naomi Hanson, Ted Krieg, Bob Gauthier, Art Shotwell, Candy Cooper, Steve Daly, and Paul Stannert.   Paul Davallou moved and Don Hanson seconded to vote by secret ballot with the top three vote getters being the board as the CC&Rs only require three people on the board.  After discussion, Paul withdrew his motion.  Kippy Strandberg moved and Andrea Gauthier seconded to vote by secret ballot.  After further discussion, this motion was also withdrawn.  Don Hanson moved and Paul Davallou seconded to appoint the seven individuals nominated to the Board of Directors.  The motion passed.  The board will determine responsibilities.

The meeting was adjourned at 11:55 a.m.

Respectfully submitted,

Naomi Hanson

Secretary