Meeting Notes Final Web 11-nov-2008

Stonegate HOA Board Executive Meeting November 13th, 2008 6:30 PM Caldwell Free Methodist Church

1. Opening a. 6:30pm – Roll Call i. Present: Brent Orton, Jim Porter, Jennifer Scott, Amanda Gigray, Alicia Brown, Karla Baker

2. Neighborhood Forum a. Home owners in attendance: Brittany Brown of 3805 Stonehedge i. Ms. Brittany Brown expressed interest in staying informed and was interested in being involved in the neighborhood watch and other community events.

3. Minutes a. Approval of September 4th, 2008 Board Minutes i. Motion: Ms. Gigray motioned to approve the September 4th Meeting Notes. Second: Ms. Scott. Vote: Unanimously approved. b. Approval of September 17th, 2008 Board Minutes i. Motion: Mr. Orton motioned to approve the September 17th Meeting Notes. Second: Ms. Gigray. Vote: Unanimously approved. c. Approval of October 9th, 2008 Board Minutes i. Motion: Ms. Scott motioned to approve the October 9th Meeting Notes. Second: Ms. Gigray. Vote: Unanimously approved. 4. Financial Matters a. Collection strategy: i. Ms. Baker attended the MGM attorney meeting, but did not ask the attorney questions on payment plans from the previous meeting. Ms. Baker stated that she went to this meeting in place of Mr. Orton and was not prepared with the questions from the previous meeting. Ms. Baker briefly went over her notes from the meeting for the Board. ii. Does the Board need to contact MGM for collection of interest on arrears dues? iii. Mr. Orton believed that small claims court would add interest. iv. Ms. Scott shared that in her experience the judge gave interest without having asked for it. v. Ms. Brown stated that we need all delinquent bills sent out to included a statement that indicates the interest the homeowner has accrued. vi. Ms. Scott suggested that we don’t need a formal payment plan vii. Ms. Gigray suggested we send out letters unless people ask for payment plans. viii. Ms. Scott suggested that the letter says homeowner has X days to pay or it will be turned over to a lawyer. ix. Mr. Porter noted that a third of the delinquent homeowners haven’t paid for years.

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x. Ms. Gigray stated that she has been going over the financial records and is having difficulties with inconsistent data. xi. Ms. Brown was not sure why the records were lost or mixed up, but that Ms. Nightingale had lost data that was on her computer. xii. Ms. Gigray stated she has tried to make a spreadsheet for each homeowner but the data is confusing. She cannot see where MGM was getting their numbers. xiii. Ms. Brittany Brown stated that she had problems with their records, but knew that they had paid their dues at their recent closing. xiv. There is missing historical financial records. xv. Mr. Orton suggested looking at old bank statements. xvi. Ms. Brown agreed. xvii. Mr. Orton stated that title companies get their information from the county’s assessor database for previous ownership. The Board may be able to follow similar research on ownership. xviii. Ms. Scott asked if we want a payment plan. xix. Ms. Gigray suggested we put this in the hands of the homeowner. xx. Ms. Scott suggested a statement be sent to past due homeowners with a full 60 days notice that interest will be charged on delinquent dues. xxi. Mr. Porter added that the statement included that if the homeowner paid within 10 days that the Board may wave the interest. xxii. Ms. Gigray added that the Board use a specific date instead of the 10 days. xxiii. Mr. Porter asked if the Board should wait until after the holidays. xxiv. Ms. Gigray suggested that the bills go out now so that people can budget accordingly. xxv. Mr. Orton agreed with the notice that includes a specific date to pay xxvi. Ms. Brown suggested that each invoice have a footer note that reminds homeowners of the interest (12%) that can be assessed if payments are late. xxvii. Mr. Orton added the Board could include in the invoice that the homeowner call by X date if they desire to set up a payment plan. xxviii. Motion/Action Item: Ms. Gigray motioned for the following: 1. For presently delinquent homeowners: MGM will send out statements December 1st that will included what they owe and the interest they have accumulated. The notice would include the explanation that if delinquent dues are paid in full by January 31st, the Board may forgive the interest the homeowner has incurred. This way the homeowner will see what they own, and how they may be able to save money in forgiven interest. This would be considered a one-time offer from the Board to encourage homeowners to get caught up with their dues. 2. For homeowners that become delinquent after the January 2009 bill goes out: Thirty days following the due date of the January notices, a second notice will to be sent to the homeowner stating

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that they have accrued X in interest in addition to the dues. If they pay by X date, the interest may be waived by the Board. 3. For MGM to included the notice of interest that can be levied on delinquent dues with the portion of the Stonegate CCNRs that refers to that; and for MGM to include a reminder to homeowners that bills are due for the first half on the year in January and the second half in June and to include the portion of the CCNRs that refers to that (as previous billings have been due in June and December). 4. Second: Ms. Scott. Vote: Unanimously approved. b. Board action to change signers on Wells Fargo account i. Ms. Gigray stated that she needs to get with Ms. Brown on the account transfers, they can go the bank together and change the signers ii. Amendment to Action Item from previous meeting: Ms. Gigray will go to the bank with Mr. Brown and close the Well Fargo accounts and then open a new account with ICB. iii. Ms. Brown noted that Ms. Nightingale previously had received Wells Fargo account statements and may have changed to have them sent to MGM when MGM was hired. c. Treasurer’s financial packet review i. Ms. Gigray commented that the bank statements included in the Board packets are incomplete and do not contain all pages of the statements. ii. Ms. Gigray inquired as to some of the lingo used by MGM in their financial reports (ie: what does un-deposited mean). iii. Action Item: Ms. Gigray will contact MGM as to any questions on verbiage of the financial reports and to request full copies of the bank statements. iv. Ms. Gigray noted that MGM mailed certified letters and asked if this was in violation of their contract. Also, XXXX is a bank repossession, which begs the question of why send out certified demand letters. v. Action Item: Ms. Gigray will contact MGM on the mailing of certified letters after the Board stated that the Board be contacted prior to any certified mailings. vi. Ms. Brown stated that she believes she gave permission to MGM to send certified mailings and may have given verbal permission to send letters, but did not sign anything specific (ie: Board packet response request). vii. Action Item: Ms. Gigray will contact MGM to provide proof of authorization of Board permission for sending these certified letters. viii. Ms. Scott brought up the important fact that XXXX is not in any of the current records and that this house needs to be included in the records MGM is using. There should be 75 houses in the subdivision, not 74. ix. Action Item: Ms. Scott will contact MGM to include XXXX in their records. x. Ms. Gigray had a question on the Idaho Power bill (payment discrepancy).

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xi. Action Item: Ms. Gigray will contact MGM on the Idaho Power bill discrepancy. xii. Ms. Gigray stated that the Board can not be signers on the MGM bank account due to special insurance that MGM has on the account (the Board and MGM can not both be signers). Ms. Gigray stated that she has no problem paying the bills and suggested the Board look at the purchase of accounting software. xiii. Ms. Scott suggested that Ms. Gigray could pay MGM their monthly fee with enough to cover bills, and MGM can pay the other bills. d. Report on banking service consolidation i. See 4.b.ii

5. Old business a. From October Board Packet i. Mr. Orton (on behalf of Ms. Baker) contacted MGM to stop signing courtesy letters with the Architectural Review Committee and to not send any correspondence that requires certified mailings or escalated actions without Board approval.

6. Ongoing Business a. Retention pond repairs i. Mr. Orton reports that he obtained a verbal estimate from XXXX Excavation and has calculated quantities of material that need to be removed. He calculates that we will need to excavate up to one foot of material to get rid of the humus layer and to get the water table. There is a sand drain field in the southern side of the pond that will have less material to remove. Once the material is removed down to the water table, we will need to add three fourths of a foot of sand and optionally cover with a filter fabric. On top of this we need to add soil so that we can plant grass. This will cost an estimated $5800 plus $600 for the filter fabric. Additionally, the total volume of the storm drain pond can not be changed. Mr. Orton calculates that taking into account the volume of the cattail biomass and the volume of standing water, the excavation will result in a loss of 2700 cubic feet from the pond. He will ask the City for approval and review the original engineering storm drain calculations. Mr. Orton recommends the Board obtain a written contact to conduct this pond repair project. ii. Ms. Scott recommended the Board obtain a second estimate. iii. Mr. Orton agreed to obtain a second estimate. iv. Motion/Action Item: Ms. Scott motioned that Mr. Orton obtain a second estimate for the pond repairs. Second: Mr. Orton. Vote: Unanimously approved. b. Irrigation manhole update i. Mr. Porter asked if the Board needed to revisit this issue every month. ii. Mr. Orton suggested that the Board revisit this issue in case the City does not pursue fixing the manhole. The Board will want to take action before the irrigation water is turned on if the City does not fix the manhole. c. Electrical sign

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d.

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i. Mr. Orton explained that it was the light, not the optical sensor that was the problem. Ms. Gigray purchased the replacement fuse and Mr. Orton will install later this evening. Mr. Orton stated that the time delay fuse was getting hit by the irrigation sprinklers and may be why the fuses haven’t been lasting. ii. Action Item: The Board will need to make sure the landscaper for next year makes necessary adjustments to the sprinklers don’t hit the fuse. Post office box and keys i. Ms. Baker obtained a PO Box for the HOA. The address is: Stonegate Homeowners Association, P.O. Box 1516, Caldwell, Idaho, 83606. The cost of the box was $44.00 dollars for one year ($42) and key deposits ($2). Ms. Baker was reimbursed from MGM for the $44.00. Ms. Baker has one key and she will give the second key to Ms. Gigray. CCNRs’ and Bylaws i. Ms. Baker went to Pioneer Title to check what they had for covenants and bylaws. Pioneer had only one set of bylaws and covenants. These documents are currently posted on the Stonegate web page. ii. Action Item: Ms. Baker will contact MGM to make sure title companies know whom to contact for new owners. The Board wants to make sure that all new owners are provided with bylaws and covenants. Landscape bids for 2009 i. Mr. Porter received a bid for landscaping that was around $12,000. He rejected that bid. ii. Ms. Scott presented to the Board a quote from Kinney’s Lawn Care. iii. Action Item: Ms. Scott will obtain a detailed quote from Kinney’s and will get other quotes. iv. A decision on landscapers was deferred to the next Board meeting. Miscellaneous i. Walk-through checklist: Mr. Orton presented a checklist for walkthroughs. This checklist is a self-checklist and Mr. Orton suggested the Board define a fine policy and look at options for direct deposit for fines. ii. Ms. Brittany Brown asked if the HOA could find homeowners that are experienced in landscape maintenance to volunteer to help teach those less experienced. 1. Ms. Gigray suggested that when people see a younger homeowner, that they can offer to help or ask if they need help 2. Mr. Orton suggested that the HOA could have a “home-of-themonth” to recognize attractive, well maintained yards. iii. Irrigation valve 1. Mr. Porter reported that Jay Dub had obtained and replaced the malfunctioning irrigation valve. iv. Direct Deposit options 1. We can use annual meeting in January for homeowner input/opinion

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v. Brent Orton Past Action Item Follow Up and New Board Meeting Items (see meeting handouts): 1. Report on Detention Basin Repair Costs: 2. Comparison of HOA Management Service Costs 3. CC&R Self-Check list and board drive-through checklist Draft 4. Payment Plan Options 5. Fix light at the front entrance 6. Recommendation to Activity Committee 7. Email List for Homeowners 7. Board Discussion and 2009 Budget a. Mr. Orton asked for Ms. Brown’s opinion on whether or not to retain MGM’s services. Ms. Brown responded with the following: i. Ms. Brown said that things are much different with a fully staffed and functioning Board. If the Board thinks that the Board will continue to be active we may be able to do it ourselves. MGM may be able to provide their present data on a disk to the Board. The Treasurer needs to know how much time it will take to send out monthly delinquent letters. If the Board remains fully staffed with people who are dedicated to put in the time than the Board can do it, but people generally don’t realize the amount of behind the scenes work that the Board does. If the Board changes, or Board members resign, than we may have to look again at the management company option. It can be too much work for only one or two people to do by themselves. ii. Ms. Gigray noted that she would need an assistant treasurer. b. Mr. Porter suggested that the Board officially respond to MGM on the proposed 2009 budget; that it is not approved. i. Motion/Action Item: Mr. Orton motioned that the Board nullifies the proposed 2009 budget provided by MGM and state that the Board intends to create it’s own budget; and that Mr. Porter convey this information to MGM. Second: Mr. Porter. Vote: Unanimously approved. c. Mr. Porter asked how does the Board want to approach to potential of separation with MGM. i. Motion/Action Item: Ms. Scott motioned that Ms. Gigray contact MGM and to request a refund of all monies except for $2000 dollars from the MGM controlled account, and to request that all 2009 bills have the return address listed as the Stonegate HOA P.O. Box 1516. Seconded: Mr. Porter. Vote: Unanimously approved.

8. Close a. The next regularly scheduled meeting will be at 6:30 P.M. on December 11th, 2008 at the Caldwell Free Methodist Church. b. Motion: Ms. Porter motioned to adjourn the meeting at 9:40 P.M. Second: Mr. Orton. Vote: Unanimously approved.

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