Board Minutes 2004-01-22

West Campus Point Homeowners Association Minutes of the Board of Directors Meeting January 22, 2004 1. Call to Order at 7:00 p.m. at Bruce Kendall’s Home, #946. Present were:

•

Board members: Betsy Brenner, Bruce Kendall

•

Homeowners: Eric Dahl, Gail Humphreys

•

Property Manager: Connie Burns.

2. Election of Officers, Appointment of Board Members and Committees 2.1. Appointment of New Board Member. The board members Betsy Brenner

Bruce Kendall unanimously elected Eric Dahl to the Board. 2.2. Election of Officers. The Board unanimously elected appointed the following

officers: President: Bruce Kendall Vice President: Betsy Brenner Secretary/Treasurer: Eric Dahl 2.3. Homeowners Committees. The Board reviewed the following committee

assignments. •

Landscape. Cristina Covato, Jon Cruz, Jane Rudolph, James Speck

•

CC&Rs. Tess Cruz, Fiona Goodchild, Gail Humphreys, Ken Pasternak

•

Leak Mitigation. Sarah Cline, Thomas Sideris

•

Long-term Strategic Planning. Osnat Ben-Sharar, Tess Cruz, Fiona Goodchild, Anita Guerrini, Gail Humphreys, Ken Pasternak

•

Roof. Osnat Ben-Sharar, Fiona Goodchild

•

Cluster Coordinators. Connie Burns recommended appointing a coordinator for each cluster. Primary responsibilities will be communicating with cluster residents primarily about cluster-related issues and maintenance needs. She offered to call selected residents and ask them to volunteer. The Board unanimously accepted her recommendation.

3. Minutes and Agenda 3.1. Prior Meeting Minutes. The minutes of the Board meeting on November 17,

2003, were reviewed and approved. 3.2. Changes to the Agenda. None 4. Members Forum 4.1. Expenses. Gail Humphreys urged the Board to keep expenses down whenever

possible. She commented that they have been increasing rapidly and could

Page 1 of 5

WCP HOA Board Meeting Minutes

January 22, 2004

eventually exceed the limit of affordability for many residents unless they are contained. 4.2. Insurance. Gail Humphreys reported on an extended conversation she had with

Paul Schifen of Allstate subsequent to his presentation at the Annual Meeting of Members on December 7, 2003. (See the minutes of that meeting for a summary of his presentation.) Gail said that Paul felt our current coverage is adequate to meet our needs. 5. Reports 5.1. Financial Report – 2003. The Board reviewed and accepted the following

reports presented by Connie Burns: Balance Sheet, Budget Comparison Cash Flow, 12 Month Cash Flow, Expense Register, and Aged Receivables. The Board also reviewed and accepted the Financial Compliance Checklist and endof-year statements for our five Reserve Accounts. Highlights of the Budget Comparison Cash Flow Report Highlights included: •

Operating Income and Expenses •

Total income minus reimbursements (“Gross Margin”) was $265,378.55, which is $1,130.41 less than budgeted.

•

Total Expenses were 165,771.38, which is $5,676.40 more than budgeted.

•

The result was a Net Operating Income for 2003 of $99,667.17, which is $6,806.71 less than budgeted (a budget variance of -6.39%).

•

Reserve Expenditures (for major repairs and maintenance, such as roofing and painting). Total Reserve Expenses were $96,200.07, which is $37,893.07 more than budgeted (a budget variance of -64.99%).

•

Net Income After Reserve Expenditures. Subtracting the Reserve Expenditures from the Net Operating Income yielded $3,467.10, which is $44,699.78 less than budgeted (a budget variance of –92.80%).

•

Net Income. Taking into account Other Income and Payments, including transfers of $96,864.00 from the Checking Account to Reserve Accounts, the WCP HOA had a Net Income of -$91.108.07, which is $32.800.99 less than budgeted (a budget variance of –56.26%)

5.2. Budget – 2004. The Board reviewed and accepted the Budget for 2004

presented by Connie Burns. Highlights include: •

Assessments. Per unit per month assessments are budgeted at $365.00, an increase of 14.06% over 2003.

•

Special Assessments. Two special assessments due 2/1/2004 and 3/1/2004 are budgeted at $52.24 per owner. The 2003 budget shortfall was lower than expected, so the total special assessment will be only 52.24% of the $200.00 that was announced at the annual meeting in December.

Page 2 of 5

WCP HOA Board Meeting Minutes

•

January 22, 2004

Expenditures •

Total Operating Expenditures are budgeted at $195,440, an increase of 15.21% over 2003.

•

Total Reserves Expenditures are budgeted at $63,490, a decrease of 34% over 2003.

•

Transfers to Reserves are budgeted at $110,760, an increase of 14.34% over 2003. Scheduled Transfers to Reserves are larger than budgeted Reserves Expenditures because the Reserves are substantially below the amount recommended for a complex of our size and age.

6. Old Business 6.1. Insurance. The Board agreed to meet with Paul Schifen of Allstate at his office

in the near future in order to evaluate our options. 6.2. Covenants, Conditions and Restrictions (CC&Rs). Gail Humphreys

reported that the CC&R Committee hopes to present a draft of their proposed revisions to the CC&Rs at the next Board meeting. The committee’s goal is to present the revised CC&Rs at a homeowners meeting in March. After one or two revision cycles based on input from homeowners, the Board, and legal counsel, Connie Burns explained that the completed revisions will be sent to all homeowners and mortgagees (lenders); 67% of the homeowners and 51% of the mortgagees will have to approve the revisions for them to go into effect. 6.3. Garage Deck Leaks and Trellises •

Garage Deck Leaks. the Board discussed and approved plans to remedy deck leaks in two units.

•

Carport Trellises. Connie Burns reported that three units have carport lattices that need repair. The Board members agreed to personally inspect the lattices and authorize repair if warranted.

7. New Business 7.1. Bank Account Signers. Bruce Kendall proposed, Eric Dahl seconded, and the

Board unanimously voted to appoint the following signers on the Association’s bank accounts: Operating Account – Connie Burns and all three Board members; our five Reserve Accounts – All three Board members. Two signatures are required to disburse funds from each of these accounts. 7.2. Accounting Services – 2004. Connie Burns presented quotes from three

accountants to prepare our financial reports and taxes in 2004 ranging in cost from $1375 to $1500. Connie Burns explained that one of the accountants, Michael Garsky is very knowledgeable about our finances because he has prepared them in years past. His quote was $1400.00. Although this was not the lowest bid, he can use the files directly at Town ‘n’ Country, which will save management costs associated with putting together the files for a new

Page 3 of 5

WCP HOA Board Meeting Minutes

January 22, 2004

accountant. Eric Dahl proposed and Bruce Kendall seconded that the Board retain Mr. Garsky. The Board voted unanimously to accept the proposal. 7.3. Additional Recycled Water Signage. Connie Burns presented a letter from

the Goleta Water District informing the WCP HOA of the results of the Recycled Water Cross-Connection test performed on our site on October 15, 2003. •

The letter claims five items are not in compliance with the Recycled Water User agreement between the WCP HOA and the District. Four of the five items are mechanical problems and the Board informally agreed to cooperate with the District’s demand that they be corrected by the February 13, 2004.

•

All three Board members and resident Gail Humphreys objected to one item on the list: “Need adequate Signage going into Courtyard.” Connie Burns explained that the District is demanding a prominent white-on-purple sign next to each pathway entering our central green space. Objections included the size, number, placement, and cost of the signs.

•

The Board asked Connie Burns to speak with Jon Cruz and instruct the Landscape Committee to investigate the ordinance(s) behind the demand from the District and determine whether we are legally required to comply with the signage demand or could post fewer, smaller, and less prominently displayed signs.

7.4. Proposed Maintenance Schedule. The Board reviewed and accepted a

Proposed Maintenance Schedule presented by Connie Burns. The three largest items are: •

Resurface garage decks: $35,000

•

Resurface pool: $14,900

•

Reseal roads and drives: $10,490

Connie Burns explained that these items are recommended based on industry averages and the history of the complex. It may be possible to delay some of these expenses until next year. However, maintenance can become significantly more expensive if it is deferred too long. 7.5. Maintenance Items. The following maintenance issues were discussed and

approved by the Board. •

Separator Posts – Emergency Key Lockbox. There is a set of steel post separating our access road from Isla Vista that are held in place by a chain and padlock. The key to the padlock is in a lockbox affixed to the mail kiosk for the 960s. The Board asked Connie Burns to send all homeowners a letter containing the access code to the lockbox for use in case of an emergency.

•

Barrier Rock. A large barrier rock filling in a gap in the line of trees separating our access road from Isla Vista has been moved, creating a space large enough for cars to drive through. The Board asked Connie Burns to direct the landscape crew to move the rock back into the center of the gap to prevent vehicular traffic. Page 4 of 5

WCP HOA Board Meeting Minutes

•

January 22, 2004

Owner Maintenance. Gail Humphreys shared a concern expressed by some homeowners that some units are not being kept in good condition and repair as specified in Article VII, Paragraph 4 of the CC&Rs: “[E]ach owner shall maintain in good, workable, attractive condition and repair, at Owner’s cost and expense, the structure comprising his or her Residence….” The Board asked Connie Burns to create a checklist of the most common items that need to be maintained and mail it to all the homeowners.

7.6. Repair Charges. The Board discussed concerns about UCSB’s frequent

practice, when an owner sells a unit, of assesses the departing owner a fee to cover the cost of repairs the University deems necessary in order to bring the unit up to good, marketable condition. Some owners have believed that they have had no way of contesting the assessment even though they felt it was not equitable. (For example, a homeowner purchased a unit with old, marginally acceptable carpeting; sold the unit after two years; and was assessed a fee for the full replacement cost of the carpeting.) The Board agreed to ask the CC&R committee to investigate the issue and make recommendations. 8. Meeting Schedule

•

The Board agreed to meet the first Wednesday of every month.

•

The next meeting will be Wednesday, February 4 at the home of Betsy Brenner, Unit 926.

9. Adjournment. The meeting adjourned at approximately 10:30 p.m.

Page 5 of 5