Minutes of 2012 Annual Board Meeting
on Saturday, November 10, 2012 at 10:00am
@ the SMHOA Pool
· Present: Joe Bergen, Tina Blum, Chari Gilmore, and Trang Tran
· Cardinal Management’s Adrian Oesterreich was in attendance to oversee the Board election ballot count.
· Treasurer <redacted> was unable to attend.
· SMHOA President Trang Tran welcomed the ~20 residents in attendance.
· Secretary Chari Gilmore recognized changes to the residents in the Mesa in 2012. The passing of Bruce Miller, Dave Herrman and Jinny Williams were remembered. And the below new families were welcomed:
· Aldo and Annabelle Balarezo (Francheska, Renato)
· Albert and Farah Chang (Olivia, Andrew)
· Alex and Irene Fan (Eric, Mellisa)
· Cory and Akiko Hill (Corwin, Aletta, Cordelia)
· Youngjoo and Kook-Jin Yoo
· In <redacted> absence, Trang provided highlights about the Mesa finances which were described as fiscally sound.
· The annual dues will increase by $5/month effective January 1, 2013. The new payment will be $160/month or $480/quarter depending on a homeowner’s payment schedule. The increase is necessary to maintain the present level of service and continue with improvements to common assets. The previous increase was in 2010 for $5/month.
· The residents received the below documents prior to the meeting
§ Annual Budget
§ Insurance Disclosure
§ Reserve Study
§ SMHOA CC&R Policy on Article X
· Trang recognized the significant improvements made to the tennis court in 2012 including resurfacing and a new fence.
· Joe Bergen provided a detailed maintenance overview. His entire written maintenance overview is attached. Below are highlights from his address to the residents at the Annual meeting. Joe not only covered maintenance for 2012, but also major improvements that were made during his tenure on the Board and insights into future projects.
· The water main at the top of the hill above the pool was replaced with galvanized pipe.
· Joe also buried copper pipe for a Mesa line under the Zhao property before renovation on their patio.
· The distribution water pipes should be replaced around the pool park soon with a 1½ “ line of PVC.
· At the putting green, the water pipe from the street to the park should be replaced.
· One watering system on lower Stardust remains manual. All other valves have been replaced with automatic or solar systems.
· The Mesa water bill has remained the same over five years because of implemented efficiencies including updated irrigation systems, plantings and the use of mulch.
· Initial brush clearance budgeted for $11,500 went over budget due to the unforeseen needed removal of a tree on lower Stardust.
· The planting project started on the hill above the pool, should continue around the tennis court. The project should plant a smaller parcel in 2013 to make funds available to top-coat the mulch in the previously mulched areas. Mulch is free but we do pay for labor to carry it up the hillsides.
· The size of the pool filter was increased this year.
· Over the last three years, the pool’s mechanical system has been replaced.
· The outdoor furniture for the pool continues to be bought incrementally. The new commercial grade chairs, lounges and tables last longer and are heavier so they don’t blow into the pool as often. During the colder winter months, most of the chairs are stacked under the pool house eve for winter preservation.
· The pool and pool house are as automatic and maintenance free as possible.
· To note, it is a requirement of the Board of Health to have hot water at the pool house. The heater is turned off for the winter when the pool is not in use and is on a timer the rest of the year so not to be heating water 24/7.
· Although after the fact, the Board will investigate whether it needs a permit for the replacement of the tennis court fence.
· A light was added to the pool area, by the shallow end.
· The difference of St Augustine (pointed leaf end) and the proclaimed more invasive Cucuya (round leaf) was discussed as grass options. For the Putting green, a “self healing” RTF fescu will be used.
· Joe offered the use of a herbicide cocktail that kills Cucuya, but not grass.
· The $4,000 budget for tree trimming around the Mesa is on a recurring cycle that takes 4 to 5 years to complete. The trimming helps with the health of the trees.
· The culverts (cement gutters that divert the water on hills) had major and costly failures six years ago. Joe has experimented with two products to seal cracks before they turn into major fissures. Over the next couple of years, the board should use these products to repair most cracks. It will take approximately two to three years to repair all the culverts. At that point, the board should divert one year’s culvert money from the operating budget ($4,000) to the reserve fund to increase the reserve fund allowance for large failures to $7,000.
· As Joe understands it, when the Mesa was developed, culverts were installed on hills that were created or altered with fill dirt. They were not installed on natural, unchanged slopes.
· Future Projects
§ Joe counseled the Board to focus on the upkeep of major assets that increase the value of the homes in the neighborhood. An HOA and its board can either add value or detract value to resident home. If the board maintains and improves assets the Mesa can be an Association that adds value.
§ Consider Gazebo replacement
§ Implement tree planting initiative to ensure the neighborhood always has old growth trees. Sadly, even trees have lifespans including the many pines in the putting green park, lining Starlight Mesa Lane, and on lower Stardust. The Board must plan for the future.
§ Front Lawns: Does the Board want to consider front yard reinvigoration? The CC&Rs state the front lawns are maintained by the SMHOA. But originally gardeners controlled the watering and over the years, the individual homeowners took over this responsibility (since they always assumed the cost). As a result, not every lawn is maintained at the same level.
§ Playground equipment improvements/upgrades should be considered for both locations. A small assessment of $300 to $400 might be needed. Joe stated he believed the community will support it. Even empty nesters understand that when it comes time to sell their homes, it will be a family with young children that will buy it. Nice playgrounds will only add value to homes and the neighborhood.
· Maintenance Finance and Reserves
§ Key to any maintenance is funding. Currently maintenance is a zero sum budget. Only $12k is available each quarter for unforeseen maintenance. Out of this sum comes common area maintenance, culvert repair, tree trimming, new projects/improvements, and planting.
§ The Reserve Fund takes into account hard assets and the finances needed to maintain and replace them. An example of the Fund working is the renovation of the tennis court that was planned for five years prior and thus paid for within the Reserve Fund.
§ Next anticipated major repair are the 3” copper pipes between the pool and the filter. These pipes are approximately 45 years old. Since they have chemicals run through them every day, they do not last as long as standard water distribution pipes. These need to be replaced BEFORE they fail. The pool cannot be drained in the winter because of an underground stream that would literally lift the plastered pool frame from its current resting place. And we do not want to replace the pipes during the high use summertime. We need to plan for a time with the pool can be drained, the pipes replaced, and the pool deck resurfaced to hide the scars of the pipe work. Depending on how long this takes, the exposure plaster of the pool could succumb to cracking which would incur additional costs of repair. Joe suggests May or October of 2014 or 2015. Two five year funding projections were included in the 2012 Reserve Study. The first projection considers replacing the pool plumbing and resurfacing the deck. The second projection considers the plumbing, re-surfacing the deck and re-plastering the pool. Contractor estimates for replacing the pipes, re-surfacing the deck, and re-plastering the pool are currently approximately $37,000. If the funding projections are followed and reserve fund money is not used for any project not specified in the Reserve Study the monies will be present to handle the worst case scenario without asking residents for an additional assessment.
Further, if the projections are followed, after this project is done the reserve fund will be seventy percent funded on its way to one hundred percent funded. The seventy percent mark is considered the threshold at which an HOA is considered financially sound, thus adding value to your homes.
Questions from the residents
· Resident Danny Levin raised concern about the use of herbicides on lawns used by children and pets. The Board acknowledged it would look into this. Update: Joe followed up with Danny on the details of the herbicide ingredients and Danny agreed they are safe for their current use.
· Larry Lubka asked whether we have an architectural committee that approves aesthetic changes to the neighborhood. The Board advised we do not although a resident said it did exist at one time long ago (as she served on it). The Board also confirmed for Mr. Lubka that they approved the new fence at 229 Mariners View Lane. Mr. Lubka expressed his dislike for plastic fences.
· The Board recognized and thanked Joe Bergen and Tina Blum for their multiple and dedicated years of service to the Mesa neighborhood. Both are stepping down from the Board.
· Adrian Oesterreich from Cardinal Management announced results of the Board election and the below members for the 2013 Board:
· Glenn Cunningham
· Chari Gilmore
· Karen Levin
· Trang Tran
· Mesa business that occurred between the October and November Board meetings
· The Board had a site meeting at a residence to determine if exterior changes to the home were made in compliance with the Board’s approval. This issue is still pending.