Rainbow Lakes West 3rd HOA
Annual Meeting, Sept. 15 2018
Called to order 3:02 p.m. at Fire Station #21.
Homeowners present
Carmen Neth David and Jana Pote Kenneth Hughes Fritz Henning
Keith and Rochelle Stutzman Michael Wise Lynn and Kim Guinn Michael Ball
Jeff Hoetmer David Dauffenbach Scott Masterson Jeff and Jule Schauf
Willie and Margie Studemine Agnes Johnson David Pashman Mary Hill
Dan and Becky Kennedy Vernon Just Doug and Jolene Kaufman Lou Anna Rowland
Steve Pickens Phil Sloderbeck Nancy Kyle Baker Jace Schultz
Richard Rose Phil Iwinski Chad Jantz Patti Sweet
Marilyn Kerschen Al Cavallaro Bob Reichenberger
Sandra Zeh Brad Sweet Mark Stolz
President Brad Sweet welcomed homeowners. Board members introduced themselves. Volunteers Scott Masterson and Carmen Neth were selected to be vote counters for this meeting. Volunteers Phil Iwinski and Lynn Guinn were selected to review and confirm the meeting minutes once written.
I. President’s Report – Brad Sweet
A. Accomplishments of the 2017-18 HOA Board
• Completed first trial year with HOA Management Services (HOAMS)
• Filed first HOA tax return
• Collected info for an HOA directory (still in progress)
• Held special membership meeting regarding covenant changes (May 3); changes did not pass
• Formed a committee of concerned homeowners to propose further covenant revisions
• Replace rusty mailbox
• Purchased two new maps of the neighborhood
• Repaired electrical outlets at Maple entrance
• Repaired lake aerators twice
• Cleaned up weeds on common property
• Put up Christmas lights at front entrance
• Contacted city to sweet streets following asphalt repair
• Provided free dumpster over two weekends
• Updated street signs to specify North/South Forestview
• Coordinated neighborhood garage sale
• Cut rough grass on the wetlands
• Cut pipes in lake (Mike Wise)
• Remove downed willow tree in Reserve A (in process)
• Removed dead pine tree at Maple entrance
• Removed huge fallen cottonwood tree 12 feet in diameter
• Installed NO DUMPING signs off 135th street
• Held ten board meetings, one special meeting, and one annual meeting
• Collected dues from all but two residents
B. Unmet goals of the board
• Covenants update
• By-laws update
• Welcome committee for new residents
II. Treasurer’s Report – Mary Hill
Chase Bank checking account $3,311.85
Intrust Bank checking account $2,449.87
Intrust Bank savings account $19,071.62
Total assets $24,832.94
Discussion
Carmen Neth: What was the name of the attorney used for covenant revisions?
Brad: HOAMS provided attorney; we do not know the name.
Mark Stolz: Where (on document on display) is the expense for large tree removal?
Brad: Bill has not been received yet; that expenditure will show up on next year’s report.
($6500 for large tree removal, $1500 for willow tree removal)
Richard Rose: Asked about the difference between beginning of year balance and end of year balance.
Phil Iwinski agreed to provide the board with information regarding beginning account balance.
III. Architectural Control Committee (ACC) Report – Al Cavallaro
Approved work for 2017-18
• 2 sheds
• 3 driveways
• 3 fence projects
• 1 siding/window project
• 1 deck
• 1 roof
• 1 landscape project
• Updated approved shingles list
IV. New Business – Brad Sweet
Volunteer Jace Schultz was selected as time keeper for discussion speakers.
A. Continuation of contract with HOAMS
• History of our relationship with HOAMS (Began contracting with them Aug. 2017; received 10% discount for paying in full for the year)
• Services provided by HOAMS
• Will need $50 dues increase to continue with HOAMS or volunteers to step forward and take board positions in order for the HOA to function properly.
Lynn Guinn moved to retain full services of HOAMS
Patty Sweet seconded the motion.
Discussion
David Pote: Will we receive the 10% discount again this year if we pay up front?
Brad: Yes; the amount stated includes the discount.
Carmen Neth: What is the progress on updating the covenants?
Brad: The new board will continue working on covenants and another special meeting will be called to vote on them.
Carmen Neth: Will we have to pay additional money to the attorney?
Brad: Yes, we will likely have to pay the attorney to go over the new proposed changes.
Jeff Schauf: Where does the money come from?
Mary: Homeowner’s dues.
Brad: It will require a dues increase.
Richard Rose: Why does the contract with HOAMS say $3.55 per household?
Mary: That is the how the total fee for use of HOAMS was determined; it was not an additional charge. We are paying one month’s fee this month because our contract with HOAMS expired last month, one month shy of the annual meeting when members can vote on whether to retain them.
Mike Wise: How will HOAMS be paid if a dues increase is not approved?
Mary: They will be paid from the reserve account.
Mary Hill called for the question.
Brad restated the motion to retain full services of HOAMS for the 2018-19 year.
Vote: the motion passed.
B. Dues increase
• HOA will eventually run out of reserve funds without an increase in dues.
• 2011 was the last dues increase.
Mary Hill moved to increase dues by $50 per year effective Oct. 1, 2018.
Dan Kennedy: seconded the motion.
Discussion
Dan Kennedy: Can we discontinue the use of HOAMS if we become dissatisfied with their services?
Brad: Yes
Al Cavallaro: Will the dues increase take effect this year?
Brad: Yes
Lynn Guinn: With upcoming tree expenses, will $50 be enough?
Brad: This was an unusual year. Our reserve account is enough to cover those expenses.
Phil Iwinski: What is a reasonable amount of reserve to have? Is $20,000 too high?
Becky Kennedy: If additional funds are needed, the board can call for a special assessment to be approved by the homeowners.
Brad: This requires approval of 60% of entire membership and a special meeting.
Jace Schultz: Is the reserve account in a money market account?
Mary : Yes – a money market account at Intrust Bank.
Mike Wise called for the question.
Brad restated the motion to increase dues by $50 (to $150 per year per household) effective Oct. 1, 2018.
Vote: the motion passed.
V. Proposed Budget
• Mary: proposed budget projected on screen
• Shows a net loss of $764 if all funds projected are expended. The tree expenses were unprecedented and unexpected.
Mark Stolz moved to accept proposed budget.
Doug Kaufman seconded the motion.
Discussion
Jace Schultz: Can changes be made to the type of accounts holding HOA funds?
Mary: Yes, but the new board would discuss it.
Question (name?): Are we contracted for mowing expenses this year?
David Pote: Yes, but this is the second year of a two-year contract.
Brad: The new board should ask for new bids.
Lynn Guinn: Should the budget be amended to reflect the $8,000 expenditure for the tree work?
Mary: No; that budget is just a projection.
Brad: The bill may be received/paid before the end of September (the current year).
Jana Pote: Board encourages homeowners to maintain trees surrounding the lake on common property in order to prevent large expenditures in the future.
Vote: the motion passed.
Note: The board doesn’t feel the need to share the five-year plan because it is just projected, not factual.
VI. Election of board members
• Three (possibly four) officer positions need filled.
• Job assignments (president, vice president, treasurer, and secretary) are determined by new board members.
• Nominations for officers:
o Michael Wise
o Vicki Kampschroeder (absent, nominated by Richard Rose)
o Michael Ball
o Mary Hill
Vote: yes to all.
• Volunteers for zone reps:
o Zone 1: Agnes Johnson
o Zone 2: Kenny Hughes
o Zone 3: Sandra Zeh
o Zone 4: —none—
o Zone 5: Jeff Hoetmer
• All ACC members have volunteered to serve another year.
VII. Other Discussion
Scott Masterson: What has happened with the process of updating the covenants?
Becky Kennedy: Committee met and presented recommendations to the board.
Willie Cole: Can a timer be installed on the aerators in the lake? The noise is a problem, and it would save money not to run them constantly.
Brad: New board should discuss this.
Thanks to Dave Dauffenbach for his work on the lake aerators (no charge to HOA other than materials) and to Michael Wise for removing metal posts in the lake.
Brad adjourned the meeting at 4:44 p.m.