NEWBERRY STATION HOMEOWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
September 3, 2008
I. Call to Order
A. The meeting was called to order at 7:06 pm
B. Roster
Board Attendees
Brandon Farlander
Kevin Brugman
Michael Miller
Robert Schaefer
Management Brandi Langeneck, Community Manager
Special Guest
Greg Budnick, Community Association
Engineering, GJB Engineering, Inc.
II.
Community Forum
A. The street light fronting 8226 Stationhouse needs repair.
B. Railroad ties round about 8214 Stationhouse need repair.
C. An auto
parked in the overflow lot on
D. E. A
drainage problem was reported in the easement behind the row of townhouses that
span from 8229 to
E. There are reports of loiterers gathering in the overflow parking lot adjacent to 8360 Stationhouse. This sparked renewed interest in a Neighborhood Watch program.
III.
Approval Of Minutes Of Prior
Meetings
Mr. Brugman moved to accept the minutes of the August meeting. Mr. Schaefer seconded the motion, without reservations. Passed unanimously.
IV.
Officer’s Reports
A. Mr. Farlander, after reviewing the financial reports, noted that Schedule 5 should display the various CDs and their respective rates, vs. the Money Market account.
B. Mr. Brugman reported that 28 ash trees (and their stumps ground down) had been removed at a cost of roughly $30,00. Ms. Langeneck stated that the leftover mulch is perfectly safe and available to residents. “Bartlett Tree Experts”, the company that removed the ash trees, is preparing a plan for replanting the ash tree sites with smaller, flowering trees.
V.
Committee Reports
A.
AECC.
Lisa Albano submitted reports from the
re-inspections. Ms. Langeneck stated that follow-up letters will be in
the mail next week to homeowners who have not corrected the problems found in
the initial inspections.
VI.
Management Report
A. Reserve Study. Mr. Budnick presented a draft of the Reserve Study for consideration by the Board. By law, such studies are required every five years — the last having been done in 2003. This law was the result of findings that some communities had zero reserve funds –the special assessments required for infrastructure repairs in at least one case lead to a lawsuit against the community by angry residents who charged that the Board of Directors had failed its fiduciary responsibility.
In our case, the preliminary finding is that we are hundreds of thousands of dollars short of the funds needed for the repairs anticipated over the next twenty years. Currently, we have about $200,000 in reserve funds. We would need an additional $800,000 for the anticipated repairs. To catch up would require the Association to roughly double the $60,000 per year currently contributed to the reserve funds. The largest expected expenses — $369,653 for resurfacing and otherwise maintaining roads, sidewalks, and trails; $178,400 to replace the pool in its entirety, and $60,000 to replace retaining walls.
However, this is only a preliminary report. The Board raised several questions about the report, such as (1) whether in fact the pool would need to be completely excavated and replaced, (2) whether the Association is in fact responsible for all 25 street lights (at a cost of $45,000 in maintenance expenses over the next 20 years), and whether Mr. Budnick had taken into account the Board’s last engineering study for the retaining walls.
Mr. Schaefer noted that to do nothing would be irresponsible but that, on the other hand, raising the homeowners fee to the $145 per month required for “catch-up” would be too hard on the residents. In response to his questioning, Mr. Budnick allowed that we would not need to bank the entire million dollars and would provide us with the minimum dollar amount that the Board could agree would satisfy its fiduciary responsibility. Mr. Budnick also allowed that there may be alternative strategies for dealing with several of the critical infrastructure elements which might lower the estimated costs of their repairs.
Mr. Miller suggested that one strategy would be to develop a long-range plan for the streets and other pavements that would stretch out repair costs and buy the Association the time to gradually — in 10% annual hikes in monthly assessments — ramp up the reserves funds necessary to cover those costs. The strategy — fund only the most critical road repairs for the next three years (with a focus for using that period for replacing the retaining walls); and schedule resurfacing (by far the most costly part of pavement maintenance) over the next four to twenty years, starting with the roads that take the heaviest poundings and ending with the roads that will have had the lightest traffic.
Mr. Miller moved to authorize Cardinal Management to solicit a proposal from Community Association Engineering for a long-range pavement plan. Mr. Schaefer seconded. Passed unanimously.
Community Association Engineering also is under
contract to consider alternatives and recommend a plan for replacing the
retaining walls. The Reserve
Study’s estimate of $60,000 is predicated on replacing the walls as is; the plan
may propose alternatives for shoring up the earthen banks that might be less
expensive and last longer.
After completing these various plans and exploring other issues raised by the Board, Mr. Budnick will revise the Reserve Study and submit probably in either November or December.
B. Contracts.
(1)
Drainage Rear
VII. New Business
Mr. Brugman moved to approve the following new slate of officers for the community. Mr. Miller seconded. Passed unanimously.
President Brandon Farlander
Vice President Kevin Brugman
Treasurer David Simcic
Secretary Michael Miller
At Large Member Robert Schaefer
IX. Executive Session and X. Recess
The Board adjourned the regular monthly meeting and entered into Executive Session.