Meeting Minutes – November 10, 2009 

      Villages at Tower Oaks Board of Directors Working Meeting 

The meeting was called to order by the President at 7:00 pm. 

Members present: Jim Benson, Stephen Maroon, Milton Weinstein, Ruthie Kramer, Robin Baum-Rosten, Nancy Hart, Allen Woodside 

Present:  Tony Martella, CMI Director of Property management 

Motion by Jim Benson for approval of October 13, 2009, Working meeting minutes – Approved 

Jim Benson:  Meeting will have three parts:  (1) Budget;  (2)  Discussion with Tony Martella from 8:00-8:30;  (3) Decision regarding Development/Issuance of Landscaping RFP [Request for Proposal]. 

I.  2010 Budget Presentation by Treasurer Allen Woodside and Discussion  

Reserves:  The Reserves study recommended $ 39, 300 for 2009 and $ 55,300 for 2010. Allen recommends remaining at $ 39,300 for 2010, however indicated that we are behind in attaining this figure, therefore a $ 9.00 increase in monthly dues from $ 98 to

$ 107 is recommended.   

Income Taxes:  There is $ 10,460  in interest income from reserve funds invested in CDs.  Allen estimated $ 1887.00 for 2010 income taxes from the original proposed figure of $ 1323.00.  Raised and approved at meeting to $ 2325.00. 

Insurance:  Budgeted amount of $ 3900 was too high.  The proposed figure was annualized – up to September divided by 9 months, divided by 12 months yielded a yearly figure of $ 1931.  In 2008 the budgeted amount was $ 2900.  Jim Benson suggested the higher of the two figures be used for 2010 - $ 2900. 

Landscaping / Tree Maintenance:  In 2008, Actual cost for tree maintenance, lawn care and landscaping was $ 51,550.  Proposed budget for 2010 is $ 50,113.  treasurer noted that this proposed 2010 figure divided by 136 homes is $ 368.00 per home per year, or $ 30 per month per house.         

Sign Maintenance:  Nancy Hart inquired with Corporal Matney regarding sign care and saving our signs from vandalism.  Special bolts can be purchased – approximately

$ 4.00 per piece.  Sign maintenance is budgeted at $ 908 for 2010 which appears reasonable. 

Miscellaneous Maintenance:  Includes, but not limited to, mailbox painting, cracks in curbs, sidewalk cracks, gazebo.  Proposed budgeted amount:  $5923.  For 2009, two major expenses noted by Tony Martella;  (i) $ 1300 for removal of perimeter trash near the pond; and (ii) cleaning and painting of mailboxes and posts.  

Electrical Maintenance: Proposed budgeted amount is $ 2723 which is $ 77 less than 2009. Includes e.g., outside light replacement and repairs, box lights near walls along Grand Oak Way egress. Electricity (utilities):  $ 2916.00 approved.   

Trash Removal:  $ 21,500 proposed and approved for 2010. 

Snow Removal:   R. Baum-Rosten noted $ 5177 too low as a proposed figure given the  Grand Oak Way “hill”.  Tony Martella noted only one year going back to 2002, where snow removal actuals totaled over $ 10,000. The Treasurer averaged a number of prior year figures (5 years) for snow removal and added extra - the Board members agreed to raise the amount budgeted for snow removal to $ 7500 for 2010. 

Management Fee:  $18,944

Computers:  Steve Maroon recommended $500 for 2010.  Consulting fee is at zero.

Social Committee:  Goal is to reduce spending in printing and reproduction by ½ for 2010. $ 750 budgeted.  

Question on Audit and tax preparation costs:  Tony Martella noted that two years (2007 and 2008) were done together in 2009, which is why the Actuals for 2009 were so high ($3900.00). $ 2400 approved for 2010.   

Question on Legal Expenses:  Actuals for 2009 were high due to trampoline issue and

hearing, development of attractive nuisance policy, fees for Manesh problem, and confusion over parking policy.  Board felt proposed $ 17,129 for 2010 was high.  Allen adjusted at $ 14,850.00 – approved. 

Motion by Jim Benson to adopt raise of monthly dues to $ 107:  Motion Passed,

5 Members in favor, 2 Members opposed. 
 

II.  Specific Discussion Points with Tony Martella 

What is defined process for collecting overdue monthly payments? 

Tony noted that payments (dues) are due first of each month.  On the 15^th of the month, dues are considered delinquent if not paid and between 17th and 21^st of the month, a reminder letter is issued to the delinquent homeowner.  Second month – another letter is issued – after that, the delinquency is turned over to counsel.    

Jim Benson: noted average delinquencies in 2008 for HOAs was 4%. Villages at Tower Oaks is at 1.4% for 2009.  Tony stated that typically 5% to 8% is the norm for delinquent monthly dues payments.    

Jim requested that Tony provide us with a sample policy for collection of overdue monthly payments.  Milt Weinstein suggested that the Board consider who should sign letters citing delinquent payments. The Board members agreed to make a decision in the future as to whether a Board member will be a signatory to letters citing delinquencies.

During each future Fall meeting of the Board, decision should be made and CMI instructed as to which past due accounts should be eliminated from the Report (.e.g., owners that have moved, errors in the Report). 

Re:  Manesh Property short sale – Ray Via has spoken to realtor concerning what amount the HOA would accept for the balance of fees owed.  

Escrow idea to deter delinquent dues payments   

According to Ray Via, bylaws would require an amendment for such a provision and opined that such would discourage new buyers.  Jim looking into further as a change in bylaws was not required three years ago when amendment was signed to allow a non Board member to serve as Secretary or Treasurer of the Board.  

What are the terms for Master Association dues and what are these dues for?    

When the community was developed, it was agreed upon that Tower Company would oversee the contractor for landscaping including the property leading into Villages at Tower Oaks.  Our share of that was originally approximately $ 5,000.   The amount budgeted for  2010 is $ 4,896.00 as our portion for this area. 

Who are some other vendors used by other CMI property clients for landscaping? 

The Board members emphasized to Tony that there is some dissatisfaction with Brickman and that bidding out the work may be considered. Tony identified McFalland Berry, Lasting Impression, Ruppert, and Green Link as other vendors used by other clients of CMI.  Tony emphasized to the Board the importance of looking carefully at the specifications, knowing what the Board wants, perfect and finalize specifications to incorporate into a RFP. (E.g., no riding mowers, number of mowings per week). 

What is the official process for approving large payments to vendors? 

CMI issues the payments.  Tony noted i.e., with respect to Insurance, CMI makes the payments (does not involve the Board).  Three timers per month the property manager receives a folder of bills for his/her communities which then go to Tony for approval, and ultimately to Accounting for checks to be issued.   

Question raised:  Are we confident with the quality controls CMI has in place?  Jim Benson answered “Yes.”  No disagreement raised. 

Is there any assigned period of time the property manager is expected to visit the community and “inspect” the area?   

Tony’s response to Ruthie Kramer’s inquiry was that a visit should be made quarterly.  Jim noted that he and Steve Maroon have conducted all inspections for the past two years – the CMI property manager has not participated in property inspections.  

Tony Martell departed at 8:30 pm; the Board thanked him for his participation and time.  
 
 

III.   Landscaping RFP 

Jim Benson noted his impression that the majority of Board members want to bid out the Landscaping work.  Noted that he has made Greg Lewandowski of Brickman aware of this, to which Brickman has offered to forgo the 3% increase (represents about $ 1,000) for 2010 if the Board decides to forgo competing the work.  Also, that a savings of about $ 3,000 would be accomplished resulting from the inclusion of watering in the basic contract instead of it being billed as an addition to the contract as in past years. The Board members agreed to think about it but to reach a decision before year end (2009) whether to issue an RFP or monitor carefully during 2010 and make the decision in 2010.   

Jim Benson:  If decision is made to  develop an RFP, the Board will develop the specifications, one Board member will work with CMI to draft the RFP, and Board members will conduct all reference checks.   

Final Item – DRC Procedures     

Motion by Jim Benson for Board to delegate to Jim and Robin, authority to sign the DRC Procedures - documents then to be forwarded to Ray Via to be filed with the City and to be incorporated into resale packages by Mike LaPrade.