DRUM POINT VILLAGE WEST HOMEOWNERS ASSOCIATION

Minutes of the Board Annual Meeting

April 5, 2002

 

BOARD MEMBERS PRESENT: Herb Armstrong (President), Bob Martin (Vice President), Ed Kocher (Treasurer), Paula Groppe (Secretary), Dolores Tappert (Trustee)

 

COVENANTS COMMITTEE MEMBERS PRESENT: Kim Feliciano, Gladys Pfeiffer

 

ATTORNEY PRESENT: Michael Sicola

 

 

This meeting was called to order by Herb Armstrong on April 5, 2002 at 7:43 p.m.

 

·        First Order of Business - Calling of the Role

The names of homeowners present were collected as they entered the meeting room. Proxies were collected. 28 units were represented in person, 19 units were represented by proxies, for a total of 47 units represented at the meeting. A quorum was declared.

 

·        Second Order of Business - Approval of the Minutes from the March 23, 2001 Homeowner's Meeting

A copy of the minutes was mailed to all homeowners along with the announcement and materials for the FY2002 meeting. Gladys Pfeiffer made a motion to accept the minutes of the March 2001 meeting. Maureen Kelly seconded the motion. All were in favor. The minutes were approved and accepted.

 

·        Third Order of Business – Treasurer’s Report

Ed Kocher stated that the package he gave everyone upon entering the meeting room contains an overview of the financials. Ed then expanded on that overview and went on to give details on the financial statements and fielded questions about our financial position:

 

o       Most associations use a professional management company. When the Original Sponsor released the final three (3) board seats to the homeowners, the first board decided to stay self-managed. Because of that, our administrative expenses are only about $3.00 per unit per month. Just over a year ago the Association received an unsolicited proposal from a professional management company. When asked how much it would cost, they said $25.00 per unit per month plus 7% of any capital expenditure such as the siding project that is going on now on the Miller side.

o       Beginning with our budget for Fiscal 2001, the Board of Trustees changed the annual allocations to the replacement fund for items such as roofing, siding, fencing, painting, etc. It is the Board’s opinion that the reserve allocations created by the Original Sponsor’s accountant were inadequate. There were things in there such as an estimate stating that for all 95 units it would cost $20,000 to replace the roofs. We know that it costs $2,200 per unit to replace the roofs (or $209,000 for the entire complex) so those allocations were changed to more accurately represent the replacement costs and remaining useful lives for those items. Going forward, the Association hopes to have funds in the replacement accounts at the time the replacements are needed.

o       Due to bad debt recovery, lower than expected legal fees, and lower than expected snow removal costs for Fiscal 2002, the Association was able to nearly double the reserves that are not related to the Miller siding unit project – those funds are accounted for separately. Those reserves grew from approximately $67,000 to almost $123,000. Ed Kocher stated that we are on good financial footing. He also stated that we will most likely have adequate reserves so, if something should come up, we could probably handle it without coming back to the homeowners for a special assessment as was done in past years. Overall, Ed feels that we are in very good shape.

o       As many homeowners are aware, we invested approximately $10,000 in the stone work that was put in the front of the Mignatti units. The mulch that was there was not good quality. It would have cost a lot more to keep up with the mulch year over year, and the stonework should save us about $4000 per year in future landscaping costs.

o       Ed Kocher prepared the financial statements that were including in the handout for this meeting:

§         The Balance Sheet shows our cash position as having $18,726 in the operating fund – that is our general day-to-day business fund. Also, there is $147,577 in the replacement fund – which is our long term replacement or long term project fund. Total cash is $166,303.

§        The Statement of Revenues & Expenses shows that we had a total of $149,245 worth of revenues, and total expenses were $193,974. Ed reminded everyone that almost $71,000 of these expenses were paid for by the special assessment applied to the 47 Miller unit owners for replacing the siding.

o       The budget for the current year (Fiscal 2003) that started on 4/1/02 was also included in the handout. Ed pointed out that it was a balance budget. Ed emphasized that our monthly maintenance fee will remain at $125 per month for Fiscal 2003 and that there is no increase. Ed Kocher stated that, at present, he doesn’t see any reason in the near or mid future for the monthly rate to increase.

o       Fred Weintraub asked about the driveways and sidewalks fund. Ed Kocher replied that we currently have $20,737 for driveways and sidewalks, approximately $35,000 for roofing; $6,000 for fencing, $2,000 for painting (we spent $15,000 this year for painting), $10,347 for siding (for all units going forward), $18,000 remaining for the Miller siding project, $5,000 reserved for drilling a well, and approximately $43,000 of unspecified reserves.

o       Ed Kocher stated that he hopes to have the financials audited by June – depending on the auditor’s schedule.

 

·        Fourth Order of Business – Reports from Trustees

No Trustees had any reports to issue.

 

·        Fifth Order of Business – Reports from Committees

No Committees had any reports to issue.

 

·        Sixth Order of Business - Old Business

Ed Kocher stated that there were several issues from the March 2001 meeting that needed to be addressed at this meeting. Also, other old business was brought before the meeting by various homeowners:

 

o       Satellite Dishes – Ed Kocher stated that at the General Meeting in March of last year, there were three (3) items that were on the agenda for changes to the Master Deed but there were not enough people present in person or by proxy at the meeting, so the homeowners agreed to delay the voting to the monthly meeting (2 months later) by which time more proxies were solicited. By the time of the May 2001 meeting, we actually had votes from 73 of the units that were eligible to vote and at that meeting the votes were re-tallied. Although the satellite dish proposal was rejected by a narrow margin, Ed Kocher was notified by a homeowner that we could not completely restrict satellite dishes. Ed followed up on this with the Federal Communications Commission and was told that we, as a homeowner's association, cannot tell people that they may not put up satellite dishes and homeowners could ask to have the FCC's attorney come after us. It was then agreed by the Board of Trustees that if we allow homeowners to install dishes in a manner that is as visually appealing as we can possibly make it, and that still allows that unit owner to receive a signal, then we don’t have a problem with the FCC. If we say flat out that the homeowner can't install a dish on the buildings, then they can actually plant a 30 foot tall pole in their sidewalk or their driveway (i.e., limited common elements) and place the dish at the top of that pole. A few unit owners have sent letters of request to install dishes and the board has approved them to be put on their back roof so if at all possible it is not visible from the front of the unit. If they remove the dish they have to repair any holes they put in the roof or the siding. Fred Weintraub asked if the Association covered itself in the approval letter for any damage whatsoever, and he asked for a copy of that letter. Ed Kocher stated that the letter is sent to those homeowners requesting a dish and that Ed feels that the interests of the Association are well protected by the wording of that letter.

 

o       Pet Owners – People who own pets and their restrictions – Other than the noise of a dog that is barking and becoming a nuisance, it was also stated that the Association could pass rules & regulations regarding pet ownership. Ed Kocher stated that we had asked people to walk pets in specific areas. Most people are doing that but some are not. More importantly, several people are not cleaning up after their pets, and Ed emphasized that this is against township ordinances and was a health issue. Ed stated that this was especially true in the area in the front of the complex around and behind the sign, but we do not know who is causing the problem. A unit owner suggested that he has regularly seen someone who lives outside the development walk their dog in that area and does not clean up after it. Ed reminded everyone that children wait for the bus and play on the lawn in that area. A homeowner stated that we should send another letter to all homeowners on this issue.

 

o       Fence behind 34-42 M.D.– Mignatti evidently made a verbal promise to the homeowner's of those units that he would put up a fence, and hasn’t done so. Ed Kocher stated that we are currently in the process of applying for a permit to construct a fence that will run basically from where the fence of the property owner behind that building ends all the way down past the paper street and along the property line of the home on the other side of that street. The idea of the fence is to block the sight of the house behind the building, and the stuff that is sometimes in his yard, as well as to block off the end of the street to reduce or eliminate trespassers. The people who live in the 34-42 MD building complain constantly about kids riding their bicycles right through the backyard up over the lawn and into the cul-de-sac and out through the front of the property. Ed Kocher said that we are having a problem with vandals, but he doesn’t know if these trespassers are causing it.

 

o       Front Entrance Lighting – Lights at the sign in the front of the entrance of the community were replaced several times, and each time they were destroyed again. Ed Kocher said that unfortunately the rocks that were a nice decoration out there are inviting weapons for kids that walk by and have nothing better to do. Ed Kocher also stated that the sign has also been significantly damaged to the point that if he wanted to repaint it again he would probably have to replace it – there are very big gouges in it – and it is a very expensive sign. Ed reported that Bob Martin will be replacing the lights once again but he is going to be putting the lights behind the bushes so they are a little less inviting.

 

o       Sign at intersection of Black Fox Tr. & Drum Point Rd. – Instead of erecting a sign, Ed Kocher said that we put in some landscaping, ripped out the sandy soil that was there, replaced that soil with good quality fill, re-sodded the area, and put in a couple of trees. Most of this was donated by the landscaper – about $1,000 worth of his services.

 

o       Well Installation – Ed Kocher said that we had temporarily stopped pursuing the issue of installing the well because there were other projects going on and it was going to take a significant investment. We feel that it is going to cost around $12,000 - $17,000 to install the well – an increase from last year’s estimate. We spend anywhere from $7,000 - $9,000 a year on water. Once a well is installed, we estimate it will cost approximately $2,000 per year to operate it, which would include a reserve for replacing the pump motor every 5-6 years, as well as the electricity to run it. The reason the installation price has gone up is because we do not have the type of electricity on our property to run the pump – it has to be three-phase power. Basically, we would have to have GPU come in and run an underground line. Ed Kocher is going to pursue it this year – especially with the increase in water rates from the BTMUA.

 

o       Crowding of the Street & Parking – Fred Weintraub asked if we are going to turn the street over to the town and also would it be an advantage? Ed replied that we do not know if the advantages outweigh the potential risks for doing so. Gladys Pfeiffer pointed out that one reason was because of snow removal. She stated that if the Township did the streets after the landscaper cleared the driveways, the Township would plow us in again. Fred Weintraub made a suggestion to paint lines for parking spaces. Ed Kocher said there was a situation with the Township in the past where they wanted to come in and make no parking at all anywhere. Ed Kocher said financially he does not see a major benefit by having the streets dedicated. As for the long-term benefit for repaving, if the town owns the streets versus us owning them, are they going to get repaved any faster? In the long run, we would probably end up paying for it if the township delayed in having the street repaved. Helen Bertch stated that the Township has been notified that we have problems with the crowning of the street on the Miller side, and says that it is supposed to be taken care of before the bond is released. Ed Kocher stated he has no knowledge of this fact and is under the impression that the Miller bond has been released already. Ed Kocher also said there was an issue with the Department of Public Works with garbage removal and cars being parked right next to the garbage cans and the truck operators having to get out of their automatic trucks to put the garbage cans into the claw of the truck without damaging the cars. Ed stated this was the reason we asked people to place their garbage cans on the no-parking side of the street. Ed Kocher said that he has noticed that down at the end of the cul-de-sac, people tend to put the garbage cans along the cul-de-sac which is really a no parking zone even though people are parking there. Herb Armstrong stated that everyone knows that there is a parking problem. He suggested that everyone talk to their neighbors and to ask each other to act courteously. One of the things we have done with the town is to simply move the trashcans to the other side of the street to make it easier for them. We don't want to open a can of worms with the Town in regards to parking. The Town could come down and say that there is no parking allowed on the street - the Fire Department, that is, and they can do anything they want. Herb Armstrong said that we could theoretically go down on the opposite side of the street and paint blue curbs, blue lines, yellow lines and make our community look like a commercial development. In regards to it, we could have these blue and yellow lines on both sides with no parking but we do not want to do that. Right now nobody in the Township has been bothering us so we are going to let it be. Herb Armstrong said that we also looked into possibly switching parking to the other side of the street to see if we would gain any spots, but mathematically, there were the exact number of spots we had now. Ed Kocher said that Black Fox Trail doesn't seem to have a parking problems and Gladys Pfeiffer suggested that we move the parking to the other side of Black Fox Trail. Ed Kocher stated that people come home in the evening and there are no spaces to park. He asked that homeowners not come home in the evening and park their car in the street to reserve a space for someone else in their driveway. Phyllis Ventrello suggested that in the future when letters are sent out to homeowners we could mention to park on the proper side of the street, as she notices that some people are parking in the no parking zones, and she is concerned about cars being damaged by someone backing out of their driveway, not expecting a car to be parked there.

 

o       Underground Pipe Damage – Ed reported that there is an underground pipe from the drainage pond behind Gladys' unit (the old pond) that leads to the new pond that has collapsed and Mignatti may need to come in to fix it. Ed Kocher said he has been told, but has not confirmed, that the Township will not release the bond to Mignatti until that pipe is replaced – Ed added that this is third hand information and it could be incorrect information.

 

o       Automobile Speed Control – Kathleen Seaman made a suggestion to possibly install speed bumps. Our Attorney advised that this would not be advisable. Herb Armstrong said we could, but the Board would have to discuss it. Fred Weintraub also stated that there are a lot more children in the community now, as compared to the past. Fred stated that, on the Mignatti side, there are curves in the road that are blind, and he thinks that the default 25 MPH speed limit is too fast and it should be posted as 10 MPH, especially with two-way traffic in the blind turns. Ed Kocher asked for a non-binding show of hands to determined how the homeowners would feel about making the White Swan Way/Manhattan Drive circle a one-way street. By a show of hands, there were more owners opposed to the idea than for it. Herb Armstrong said that the Board would sit down and talk about putting up 10 MPH signs in certain areas. Another unit owner also stated that she would not like a sign on her lawn and many other unit owners would not either. Phyllis Ventrello said that is would be a good idea if we sent out letters saying things such as this is a very wonderful community - please drive slowly and just keep repeating it so that the Community does not waste money on signs that they do not need. Phyllis believes that sending letters on a regular basis is more effective than putting up speed limit signs.

 

·        Seventh Order of Business – Review of Proposals for Voting

Ed Kocher reported that proposals for this meeting were solicited via a letter to all homeowners on or about January 15th. No proposals were presented by anyone.

 

·        Eighth Order of Business – Appointment of Judges for Election

Ed Kocher said that we need to appoint judges for this evening’s voting and asked if their were any volunteers. Fred Weintraub volunteered. He was nominated, seconded, there was no opposition and he accepted. Dave Neumister volunteered. He was nominated, seconded, there was no opposition and he accepted.

 

·        Ninth Order of Business –Nomination of Candidates

Ed Kocher reported that candidates were solicited via a letter to all homeowners on or about January 15th. The only nominations were for Ed Kocher, Herb Armstrong, Paula Groppe and Kim Feliciano and these candidates appeared on the proxy statement mailed on or about March 10th. Ed asked if there were any additional nominations from the floor. No nominations were made.

 

·        Tenth Order of Business –Election of Three Trustees

 

Ed Kocher gave a short overview of the rules for voting. The election then commenced. The votes were collected, verified and tallied by the judges. The judges sought the advice of the attorney on the question of a single unverifiable ballot. It was agreed that the results of the election would not be changed based on this one ballot, and the attorney advised not to count the ballot in question. The judges presented the final tally to the Secretary, and she certified the vote count as follows:

 

            Ed Kocher – 58 votes

            Paula Groppe – 30 votes

            Kim Feliciano – 31 votes

            Herb Armstrong – 22 votes

 

As a result of the election, Herb Armstrong is no longer a Trustee and Kim Feliciano has been elected as a Trustee. Ed Kocher thanked Herb Armstrong for his service and Herb was given a round of applause by the homeowners.

 

·        Eleventh Order of Business –New Business

o       A homeowner asked if it was proper to stake a dog in the back yard of a unit. Ed Kocher stated that you are not supposed to stake your dog out in the yard if the dog owner is not present at all times. Ed advised the unit owner to write a letter of complaint if she had a specific problem with a specific unit owner and that such letters would remain confidential.

o       Helen Bertch asked why there were no river rocks at the back of the Mignatti unit behind her unit. Ed Kocher stated that the river rocks were only done at the front and sides of the Mignatti units, not the backs.

o       Ed Kocher reminded those present that the Board of Trustees has a meeting every month, usually on the 2nd Wednesday of the month. Ed stated that the handout package for this meeting – and subsequent mailing to those not attending this meeting – includes a schedule for all meetings for fiscal 2003. Any homeowner wishing to attend a meeting is encouraged to call the Association’s phone number a few days prior to the scheduled meeting date to verify the date, time and location of the meeting. Ed stated that these meetings are rarely attended by more than one or two homeowners, but all homeowners are invited and encouraged to attend.

 

o       Ed Kocher asked by show of hands how many peopled had Internet access at their homes. All but three homeowners indicated they had Internet access. Ed Kocher asked for a show of hands of those people who would like to see a web site created for the Association. Ed stated the web site could include meeting times and locations, copies of financials, copies of meeting minutes, etc. Ed stated the cost for a very simple web presence would only cost about $50 per year, maybe a little more. An overwhelming majority of homeowners indicated they approved of the idea. Ed Kocher stated he would create a basic web site and that the address would likely be www.dpvw.com.

 

·        Twelfth Order of Business – Retroactive change to Interfund Transfer

This item was presented for voting by the Trustees only – Ed Kocher stated that do to his error, the calculation used to determine the transfer approved at the meeting on March 20, 2002 was incorrect and that the target operating fund balance of $15,000 could not be achieved based on the transfer amount previously approved by the Trustees. Ed Kocher made a motion to retroactively adjust the transfer amount downward to a total transfer amount of $21,241. The transfer adjustment would be retroactive to March 31, 2002. Paula Groppe seconded the motion. All were in favor. Motion was carried.

 

Ed Kocher stated that the next meeting of the Board of Trustees will be held on April 10, 2002 at 7:30pm at 48 White Swan Way, and that all homeowners were invited to attend.

 

There being no further business, the meeting was duly adjourned by Herb Armstrong at 9:29 p.m.