Minutes from Board Meeting 4/27/2016
In Attendance: Ken Schiewetz, Greg Bengeult, Heather Salton, Mark Moberg, Makoto Sugiuchi, Vicki Bengeult
General News
More new neighbors to welcome! Duane and Laura House have purchased the Erickson’s home.
Stay tuned for a spring get-together party. There are so many new owners in the neighborhood that we want to have a chance for everyone to meet.
Nancy Krueger has resigned from the Board. We thank her for her years of service.
If anyone is interested in filling the Recreation Chair position, please contact any board member. Policy and management decisions regarding the pool are made by the Board as a whole. [Bylaws: The Recreation Committee shall advise the Board of Directors on all matters pertaining to the recreational program and activities of the Association and shall perform such other functions as the Board, in its discretion, determines.] We are looking for someone who would be willing to organize events and activities to bring the community together. These events might involve the pool, but there is no requirement to manage it.
Legal Report
By WA State HOA law, we are required to have a reserve study done by an independent, qualified person. This is to ensure that sufficient funds are collected each year in order to pay for current wear and tear, normal use, and build reserves for future expenses of common properties. The requirement is that the study must be updated professionally every three years, and annually in between by the Board. Our current budget for beginning a reserves account was based on our treasurer’s best guesses. To be compliant with the law, we need to obtain a professional report and consistently fund the reserve accounts. The bids for the initial report (which will be the most expensive one) are in the $1800 range. Subsequent reports will be far less.
Pool Report
Because swim lessons offered in prior years have not made money for the association, and because we currently have very few children living in the neighborhood, we have decided not to offer swim lessons. After reviewing the economics, legal requirements and insurance impacts, a motion was made by the President that we operate this year without associate memberships or lifeguards. The motion was seconded and passed unanimously. While dropping associate memberships represents some loss of income, overall we will have a net gain by reducing payroll expenses and eliminate tax liability. It will also allow us to keep our non-profit HOA status for reserve funds and simplify pool management. Over the past 5 years, associate membership revenue has remained essentially flat, but payroll costs have increased by more than 50%. As mentioned in last minutes, Mar Cheri is not really competitive in the summer swim market when other nearby pools have much more extensive offerings.
When the pool is operated as owners and guests only, it is considered a private pool and we do not have to have lifeguards. Our insurance costs do not rise, so long as we have proper signage and fencing and comply with public health codes. In fact, our prior insurance carrier dropped our coverage because we offered swim lessons. Our current insurer, Philadelphia, has been contacted and they state that the presence or absence of lifeguards does not change our coverage at all.
We are currently obtaining bids for installation of a key card access system. Allowing owners-only access in this way will:
- Increase the length of the season. We could open earlier in the year and stay open into the fall if weather is good.
- Increase hours of operation. Last year, the pool was open from 12:30 – 8:30. With keycards, it can be open longer. We will decide on exact hours, but 9:30 to 8:30 was proposed.
- Reduce noise to nearby homes (from morning swim lessons)
- Greatly reduce annual operating cost of the pool by eliminating payroll, even without associate member income.
- Reduce the complexity of managing the pool.
Our attorney has provided modified wording for our release of liability forms, which will be required to be signed before access to the pool is allowed. In years past, the pool operated without lifeguards and apparently had some problems with vandalism. At that time, there was no controlled access to the area, and anecdotally, most problems occurred at night, when there were no lifeguards present. We have decided to start with the installation of the key card access system and add security cameras if necessary. These will cost much less than what we would have spent on payroll.
As the demographics of the community change, the way the pool is operated can also change. We want to encourage more use of the pool by homeowners.
Common Areas
The Board has a responsibility to maintain the community property in compliance with the CC&Rs. The grounds around the pool have not been consistently maintained or landscaped, and the drainage work we had done last year further disrupted the grounds and still needs some work to be complete. Therefore, we will continue obtaining bids with an eye to hiring some landscape maintenance contractors and replace the gravel in the parking lot. The landscaping probably cannot all be completed this year, but we’d like to make some improvements to make the area more usable. We have a commitment to remove half of the large spruce trees as well, in order to restore views and reduce debris from the trees on the pool building roof.
Insurance Update
Our insurance policy has been approved for renewal. Mar Cheri carries $2 million liability insurance, plus an umbrella policy for $1 million. There are many new owners in the HOA, so we are taking this opportunity to remind/inform everyone that in the event of a claim in excess of these amounts, a special assessment would be levied on each homeowner. The board advises all owners to investigate loss assessment coverage, which would pay toward that special assessment. It is up to to individual owners to decide what level of coverage they are comfortable with. Our liability insurance policy is posted on the association website for your perusal.
Respectfully submitted,
Vicki Bengeult
Secretary