Minutes of 2017 Annual Homeowners meeting

SATURDAY, FEBRUARY 11, 2017

Anacortes Public Library Meeting Room

MINUTES

Present: Cedar Springs Lane: Paul and Nancy Stannert (1801); Vince and Gretchen Sellen (1802); Paul Davallou and Susan Miller (1804); Anita Dale (1805); Bob and Andrea Gauthier (1813); Doug Winge (1817); Barbara McLendon (1901); Marilyn Cawrse (1902); Steven and Stephanie Daly (1903); Alex and Jean Taylor (1907); Lynda J. Harper (1909); Art Shotwell and Lexie Lamborn (1910); and 39^th Court: Kippy Strandberg (1802); Sally Casey (1806); Bruce and Linda Janicula (1811). Present by Proxy: Cedar Springs Lane: Carol Mays (1803) to Gretchen Sellen; Joan Mickelson (1815) to Andrea Gauthier; and 39^th Court: Mary Guard (1813) to Lexie Lamborn.

Call to Order: The meeting was called to order by President Steven Daly at 10 a.m. The Association Board Members were introduced and thanked for their support and service this past year. In his opening remarks, President Daly mentioned the insurance losses of last year and said that our insurance through Community Association Underwriters of America, Inc. (CAU) has written stating that we will have to implement new policies to remain insurable.

Roll Call: Lexie Lamborn, acting Secretary, reviewed the attendance log. Including the Proxy appointees as noted above, there is a quorum.

Presentation by Amy Clements, CAU Insurance: Ms Clements answered the questions submitted to her in advance.

1.     She distributed a handout, “ASSOCIATION COVERAGE SUMMARY FOR CEDAR SPRINGS HOMEOWNERS ASSOCIATION”. (Contact President Daly if you need a copy.)

2.     She explained that the CAU insurance covers everything left in the house if the roof was removed and the house was turned upside down. That includes appliances if they were installed by the builder. They would also cover improvements and betterments to items that were originally installed by the builder. CAU is the primary insurer subject to the deductible. There was some discussion on the importance of earthquake insurance and the individual owners were encouraged to review their own personal coverage.

3.     In explaining how a leak to a refrigerator icemaker was covered she said that the insurance doesn’t cover maintenance but it does cover damage. If a water heater failed, CAU wouldn’t replace the water heater but it would cover the damage caused by the water that leaked out.

4.     There was a question about water lines from the meter to the house. Those are most likely in the common areas and there are special insurance companies that might cover those. If there were to be a sewer back up, CAU would most likely cover that damage.

5.     In answering what we can do to avoid problems and remain in good standing with an insurance company, Ms Clements recommended preventive measures and had available some Risk Management flyers on “Minimizing Water Damage from Water Heaters”, “Dryer Vents”, and “Washing Machine Hoses” for us to take. She said there were many more informational articles on CAU’s web site in the Risk Management section at www.cauinsure.com.

6.     On the question about a specific ratio of claims to premiums that underwriters use to determine coverage, she said there wasn’t a formula.

7.     The Board will be exploring prevention activity suggestions for all of us and will be researching insurance companies before our policy expires in May.

President’s Report (Steve Daly):

• Steve reported that the Association has filed a claim against the U.S. Postal Service for mailbox repairs on 39^th Court.
• He encouraged everyone to consider Board participation
• Steve explained that the Board has in the past discussed ideas about hiring some type of management company but so far that is not under consideration
•  Susan and Paul will be installing an air conditioning unit behind 1804

Secretary’s Minutes: The Minutes of the February 6, 2016 Annual Meeting were approved as distributed.

Treasurer’s Report (Art Shotwell)

• Art reviewed the budget handouts: “2016-2015 Balance Sheet Comparison”, “Income-Expense 2016-2015 Comparison”, “2017 Proposed Budget (Based on continuing $250/month dues)”, and “2017 Proposed Budget (Based on $260/month dues starting Apr 1)”
• In the comparisons Art pointed out the 40% increase in administrative fees, the minimal increase in the insurance premium and there was discussion about the City’s increase in storm water rates.

Landscaping Report (Bob Gauthier)

• Bob thanked Jean & Alex, Kippy, Susan and Andrea for their helpfulness and assistance with landscaping ideas and considerations. He also mentioned Bruce and Linda purchasing and applying mulch to their area.
• He told us that the sprinklers will be handled separately from landscaping. Herbert, our long-time sprinkler specialist, who was with Simply Yards has started his own business and he has agreed to take care of our sprinkler system. Some changes will be made this year as many plants have grown to that the sprinkler heads need to be moved.
• Landscape fees have increased but the sprinkler portion has been reduced since Herbert will be hired separately
• Bob discussed some problems with getting response from Simply Yards. We are not their biggest priority but he is working on that.
• We will complete the mulch work on 39th Court and he will research some areas that did not appear to be mulched during the work on Cedar Springs Lane
• The curly willow between 1908 and 1902 will be removed as it is invading near water lines. Other curly willows will be trimmed. There was a recommendation that no more of that type of tree be planted here
• The house behind 1808 had the trees trimmed in response to a request by the neighbor behind
• Some trees were removed behind 1817 with the help of an arborist and the removal was approved by the city.
• 1812 needs a new rhododendron

New Business:

The budget as distributed was discussed and the $10 increase was recommended to further fund our reserves. Our reserve study is in its 4^th year and our structures are aging. We will be looking at skylights, windows and roofs in the future.

Alex Taylor moved that we approve the $10 increase in dues for a total of $260 monthly to begin in April 2017. Susan Miller seconded. The motion passed by unanimous voice vote.

Alex Taylor moved to approve the 2017 Budget with the $10 dues increase. Susan Miller seconded. The motion passed by unanimous voice vote.

Election of Board of Directors:

Volunteers for the 2017 Board of Directors were: Candy Cooper, Bob Gauthier, Steve Daly, Art Shotwell, Paul Davallou, Kippy Strandberg, Lynda Harper.

Vince Sellen moved that all those who volunteered be elected to the 2017 Board. Alex Taylor seconded. The motion was passed by unanimous voice vote.

Adjourn: The meeting was adjourned at 12 noon.