Stonegate Annual Homeowner Minutes 24 Aug 08

St on egat e Ann ual Hom eo wn er ’s Ass oci ati on Meet in g Mi nute s Date: Aug. 26, 2008 Location: Caldwell Public Library

I.

Call to Order: a. Attending HOA Members: Camara, Mayberry, Porter, Nightingale/Lopez, Baker, Brown, Hensley, Scott/Miller, McKay, Thompson, Orton, Hendrick, Gigray, Bartrop, Arreola, Lammon, Pfiefer, Lyber b. Administrative Matters: Meeting directed by Mike Madsen with MGM c. Call for Proxies: 1 proxy d. Establish Quorum: Only 18 attending votes of 37 required to meet 51% of 72 homes to establish a quorum; No quorum established, no vote able to be taken on raising dues

II.

Welcome Home Owners a. Introduction of Board Members: Alicia Brown and Amy Nightengale. Both have served for over 3 years. Gratitude was expressed for their service on the board.

III.

Financial Report a. 2008 Budget - Form “Stonegate Profit & Loss Budget vs. Actual, Jan 08-Dec 09” Prepared by MGM i. Income 2008: Actual $17640; Budget $8880 ii. Expenses 2008: Actual $5,865.89; Budget $16,749 iii. Administrative Total Expenses: Actual $1346. 34; Budget $1399 1. MGM reviewed and discussed each item: Annual Meeting did not cost to reserve library; Insurance paid for covers liability for subdivision common areas and to protect board members while acting in their office and according to CCRs; Stonegate has three bank accounts with positive balances and no bank fees have been incurred; Postage and Printing cost is incurred as MGM purchases a roll of

stamps at a time to send out notices, HOA bills, newsletters, etc.; $50 is budgeted for Community Events but has not been used; Taxes are prepared by a contracted accountant each year and state taxes are paid to Idaho each year as we are an Idaho Non-Profit Corporation. iv. Contract Total Expenses: Actual $4,040; Budget $13,800. 1. 8400 Landscape Contract: Actual $2240; Budget $8400 ** The budgeted amount is estimated far too high. The contract we have is for $280 per month for 8 months of the year equaling $2240 for the year. This needs to be adjusted on MGMs budget. *** a.

Our landscape contract with Jay’s landscaping covers mowing, spraying, sprinkler repair and blow out. Willing to do more but needs direction from the board. The way in which new contracts are made are to get three bids and choose one. We have an 8 month contract with our landscape crew.

b. Home Owner's brought up the following concerns: 1. Landscaping at entrance of subdivision needs replacement bark and replacement of dead trees and plants. 2. Sprinkler timing needs to be adjusted for sprinklers in front common areas as they are flooding into the street. 3. Street lights need to be checked 4. Leaking Manhole needs to be addressed - talk with City 5. Detention Pond - needs fixing, raise the elevation of the pond to remove standing water. 2.

6380 Management Monthly: Actual $1800; Budget $5400 - This cost covers our 1 year contract with MGM. Fee is $450/month. We have a contract with them until April 09. Members expressed opinions for and against using a management company. a. Statements made by Homeowners Pro Management Company: 1. Being an active board member and staying up

on all the responsibilities of the home owner's association is a large time commitment, difficult to get dues, difficult to approach neighbors in violation of the CCRs, etc. It is convenient to pay a management company to take over all the paperwork and contacting delinquent homeowners and enforce CCRs. 2. A management company has the resources and experience in helping to keep a HOA going. 3. MGM states that there is still over $10,000 in dues that are delinquent and that they will help to recover that amount for our HOA. 4. Many past board members gave their support in having a management company, stating that "Unless you have tried to do it, you don't know how hard it is to be a responsible member of the board." and that they were lucky to get 60% of the dues each year. b. Statements made by Homeowners Con Management Company 1. The risk for increase dues. MGM proposes to increase dues $90 next year. 2. The board still needs to be very involved in the HOA. If there is a small claims dispute, board members still must attend the dispute. Board is still responsible for the budget, enforcement, and ensuring our HOA is running according to CCRs 3. The management company does not live in our subdivision - they are unaware of current problems (the detention basin not draining, the manhole leaking, the sprinklers malfunctioning) as well as current home owner's situations (For example, one home owner received a notice that his truck with crane could not be parked in his driveway. This truck is used every day for the homeowner's livelihood and is his business and how he affords to have a home. Mike from MGM stated that he needs to have him contact them and fill out a variance). 4. Not all records are accurate with how much different homeowner's owe for dues. This is partially due to a computer failure of the treasurer before records were transferred to MGM.

5. Some members expressed desire to shop around for a cheaper management company or bookkeeping company to work with the paperwork. MGM reported that it is true that they are not the cheapest management company out there, but they feel that they do quality work and are worth the money. c. Despite disagreements of HOA members, it was resolved that we are in a contract with MGM until April and to work with them and reevaluate desire to work with a management company or not next year. d. Concern over communication with Board and Homeowner’s expressed. During this discussion past concerns were also brought up for reasons dues were not paid in the past such as bills were sent infrequently, no contact information of where to return dues to, little communication with knowing who board members were and difficulty to contact. Ideas presented to improve communication included newsletter, MGM website and subdivision blog. v. Common Area Total Expenses: Actual: $295.26; Budget: $300 1. Covers power bill, common area repair, sprinkler repair, and landscape upgrade. (See homeowner’s concerns under landscape contract above.) The budgeted amounts may need to be adjusted to fix common area problems. vi. Irrigation Total Expenses: Actual: $295.26; Budget: $300 vii. Enforcement Total Expenses: Actual: $0; Budget $550 1. Covers CCR Enforcement/Attorney, Collection Enforcement/ Small Claims, and Certified Mailings. If homeowner’s are delinquent on dues they can be sent to collection or small claims court. Request given by a homeowner to not have liens placed on homes for amounts less than the cost of placing and taking a lien on home. MGM has an employee that periodically drives around subdivision to assess compliance with CCRs. If non-compliance is noted, a photo is taken and a written

notice is sent out to homeowner. Further action can be taken if homeowner remains non-compliant. b. Home Owner Delinquencies: $13,540 in dues is yet to be recovered i. This amount includes $60 dues billed as due Sept. 1st, which normally would not be due until December. Why the change in due date? Delinquent dues not including September payment equals $9,640 ii. Because of computer crash prior to transfer of records to MGM, there are also errors in the records. **Any Homeowner who would like to report dues paid that are not showing on bill needs to send proof of check clearing bank to MGM to verify and update their records.**

IV.

Nomination and Election of Board Members a. Nominations and Election Results in this order: 1.) Brent Orton 2.) Jim Porter 3.) Jennifer Scott 4.) Alicia Brown 5.) Amanda Gigray & Karla Baker (same # of votes) 6.) Samuel Henley 7.) Brad Bartrop & two other write-ins only received one vote each. b. Board Members announced: Brent Orton, Jim Porter, Jennifer Scott

V.

New Business a. Neighborhood Watch Committee Sign Up: i. Jennifer Scott, Carolyn Thompson, Alicia Brown, Tanya Orton, Amy Lopez, Karla Baker, Tristi Hendrick, Brand & Joanna Bartrop, Will & Amanda Gigray b. Park Committee Sign Up: i. Jennifer Scott, Tanya Orton, Amy Lopez, Will & Amanda Gigray c. Newsletter Committee Sign Up: i. Jennifer Scott, Carolyn Thompson, Amy Lopez, Karla Baker, Alicia Brown, Will & Amanda Gigray d. Anyone other homeowner’s who would like to be part of these committees can contact the new board members.

VI.

Any Other Business

VII. Adjournment