Board President John Andraos (JA) welcomed community members and announced that the polls for election of the 2015 Board members were open. Resident Muriel Horacek was appointed to assist Peter Ryan of Cardinal Management in counting the votes.
Secretary Greg Goeckner (GG) passed around copies of the current community directory and asked residents to advise him of any updates or changes. GG noted the recent passing of long-time resident Victor Roberts. In addition, three homes had new residents during the year: the Balarezo family moved out and was replaced by the Lee family (former residents returning to the Mesa); the Herzikoff/Masurekar family replaced the Christiansen family and the Hwu/Lin family replaced the Shahbazian family.
Treasurer Derrick Pan (DP) presented an overview of the HOAs financial position for the year. The HOA had about $39k in its operating account, with $24k left after deducting for outstanding checks. The financial situation was typical for this time of the year. DP did not anticipate any significant cash outflows for the rest of year, so the bank balance should be about $20k at the end of the year. The reserve account had $46k. Dues collections had been good throughout the year. One household had a significant unpaid balance of about ~$4k and had not paid dues for about 2 years. The Association was moving forward with a foreclosure action. The Board believes that this family is capable of paying its dues but has simply chosen not to do so. At the end of the year, the Association should have a $2-3k surplus, due to savings on maintenance because brush clearance was less expensive than anticipated and because the gazebo was not replaced. These savings were partially offset by legal costs incurred to defend against claims by some homeowners and the cost to initiate the CC&R update. If the unpaid dues are collected, those amounts will be added to the surplus for the year. The Association had received a clean audit certificate, with no issues or unforeseen expenses.
DP then reviewed the proposed 2015 Association budget. Generally, the 2015 budget does not include any significant changes from 2014. The budget includes $6k for the gazebo project and $8k in legal fees for the CC&R update project. The Board does not propose any increase in member dues for 2015. The excess funds and reserve account balance should be sufficient for next year.
Joe Bergen (JB) asked about the elimination of funds for maintenance of the concrete swales that line item is now down to $400 for 2015. DP responded that the funds had been moved to a different line item. JB asserted that the swales need to be fixed because there is bad erosion under some of the culverts; the budget for this used to be $4000/year. DP based the budget line item on the expenses from last year. GG noted that the issue had not previously been raised at any of the HOA meetings during 2014. Board member for maintenance Karen Levin (KL) said that Alex Benderskii (AB), the other Board member for maintenance, had checked the culverts earlier in the year. JB pointed out that the 2013 Board had left repair materials for the culverts.
DP turned to a review of the reserve study. The reserve account now has $46k; we are contributing about $1k/month to that account. The next reserve study is due in 2016. The reserve study completed last year estimated the necessary reserve balance at $97k. A number of items in the reserve study normally are funded from the regular operating budget; leaving those items out, the reserve balance should be $62k. The biggest pending issue is the pool piping. The Association should have sufficient reserves to cover most of the cost of that project. If sufficient funds are not available for a large project, the Board might have to issue a special assessment to cover the costs.
KL then reviewed the status of maintenance projects. The major issue in 2014 was brush clearance. The new standard for brush clearance is 200 from structures. Glenn Cunningham (GC) and KL attended a fire safety lecture; GC will post material about fire safety on the Association website. The hillside renewal project led by JB helps to create a safe environment. Due to the drought, we need to decide whether to allow artificial grass and drought resistant planting in the Mesa. The Mexican fan palms are high maintenance and cost about $2k to maintain this year; the Board needs to address planting policy going forward. The gazebo replacement is still under discussion. The Board had considered various options but had not found one that met our objectives for appearance, fire and wind safety and cost. The Board had a new LED light installed in the pool. A pipe had to be repaired in the pool solar panels; it was damaged by tree branches. JB is supervising the watering in the putting green park. The Board put up no smoking signs on Lower Stardust and near the gazebo. KL had discovered a problem with a local student lighting fires in the Lower Stardust area. The lights to and in the putting green area have been updated and the signs to the putting green and children's play area have been illuminated at night. There are continuing problems with dog waste, especially in the pool area; the Board is considering installing dog-waste stations with bag dispensers. There is an endless list of maintenance projects for the Board.
JB noted that he wanted to continue with the hillside planting project in January but he needs to know this month if that is authorized. He needs to continue with this project for another two years. GG advised him that the next Board meeting was scheduled for the 18th and the Board could consider it then. JB is willing to continue to lead this project. He suggested that the area behind the tennis court should be the focus this year. DP advised that there is money in the budget for the project.
GG reviewed the status of the CC&R project. The Board had reviewed drafts of the CC&Rs and Bylaws from our lawyers; the Board had provided comments and had just received revised drafts on Friday before the annual meeting. Once the Board reviews those drafts, they will decide if another draft is needed. Once the drafts are ready, they will be circulated to all members for review and a meeting will be scheduled for everyone to review the draft with counsel.
JB raised the issue of renovation of the community pool; in his view the work can be done for a lot less than the current bids. He believes the work should be undertaken soon, rather than waiting for the pool pipes to break. The pool water is tested regularly and it is safe. We changed pool chemicals to limit damage to the pipes.
JA then announced that the polls were closed. After a break to allow time to count the ballots, Peter Ryan of Cardinal announced the results of the vote for members of the Board for 2015:
Sylvia Paz 76 (elected)
John Andraos 61 (elected)
Greg Goeckner 88 (elected)
Derrick Pan 67 (elected)
Alex Benderskii 59 (elected)
Kirk Gerbracht - 35
Joe Bergen 5
JA thanked KL for her two years of service on the Board.
GG reminded all members that the next Board meeting was scheduled for December 18th at JAs house.