BOARD OF DIRECTORS MEETING
September 17, 2007
Call to order/opening remarks by President 7:10 P.M.
Meeting minutes for August 20, 2007 approved as submitted (MSC) 7:11 P.M.
Review of the annual audit 7:15 p.m.
Joe Perna, CPA, summarized playmor HOA’s annual audit for fiscal year 2007. He reviewed income and expenses for both the operating and reserve accounts, including a question and answer time with homeowners.
Manager's Report 7:40 P.M.
Manager explained that the role of a homeowners association is to channel funds in a “pass through” manner for services rendered to the homeowners. Playmor is a not for profit corporation which means that dues are collected by the HOA for the purpose of disbursing funds to pay for services. By California law the balance of any money left over from a year’s expenses is required to be transferred to the reserve account. Because Playmor’s reserve account was funded at only 6% on July 30, 2007, the only option available to the board of directors and membership is special assessments to undertake current and necessary maintenance requirements; therefore, the manager recommends that the board of directors consider a special assessment.
Owners Forum 9:21 P.M.
(owners may address the board – 2 minutes each – 30 minute maximum; written submissions accepted over 30 minute time limit)
Treasurer’s Water Report 10:21 P.M.
San Diego county is experiencing ongoing water and sewer rate increases. An accurate estimate of potential water rate increases is just not possible given the current unpredictable state of California’s water problems. The assurance we do have is that water rates will consistently continue to rise.
The treasurer estimated an additional monthly allocation of $2,300 to $2,400 be set aside to cover increasing water expenses
Managers Report 10:40 P.M.
Manager reviewed corrections to e-mail produced by concerned residents of playmor regarding the HOA’s financial situation.
The reserve account also includes a CD at Banco Popular. Last month’s balance was $29,676.
There were seven Qest building, now six, one partially paid for.
The operating fund while adequate to cover current expenses is insufficient to fund the projected contribution to reserves.
Regarding securing a bank loan, requirements are: any loan amount, large or small, must be voted on by the membership. A loan must secured by a certificate of deposit. The procedure of procuring a new loan would take a minimum of six months. The certificate of deposit for our existing secured roofing loan is presently under funded.
Every fiscal year begins with “front-loaded” expenses to secure insurance coverage for the coming fiscal year, including both workers compensation and the master insurance policy.
The HOA has reverted to a critical spending mode. The reserve money spent during this fiscal year was scheduled fiscal year 2007.
Again, the Manager reinforced the fact that all extra monies are being applied to reserves at the end of each month. The manager explained that the role of a home-owners’ association is to channel funds in a “pass through” manner for services rendered to the homeowners. Playmor is a not for profit corporation which means that dues are collected by the HOA for the purpose of dispersing funds to pay for services. By California law the balance of any money left over from a year’s expenses is required to be transferred to the reserve account.
Possible dues increases could be estimated for up to three years, not beyond. The reserve requirement is constantly changing because it is a living and breathing entity.
Cable television: the Board of Directors voted at the August meeting to place this topic on the ballot for voting by the membership at the annual meeting.
THE HOA BUDGET FOR WATER FY 08 IS ONLY $18,000 PER MONTH
Sub-Meter updated tabled to 10/15/07
Letter to members about assessment
The board of directors unanimously approved a special assessment of all members in the amount of $227.53. This amount to be billed immediately with a due date of November 1, 2007. The assessment money is for special projects only, including the re-plumbing of building # 68 and the reinstatement of the fire recovery fund. (MSC)
The board charged the manager to review the option of a $3,000 special assessment to present the board a new set of numbers pertinent to paying the roofing loan in full.
Square footage at Playmor tabled to 10/15/07
Results on collection efforts
Owner: paid in full 8/22/07
Owner: paid in full 9/04/07
Owners: payment plan approved as submitted (MSC)
Owner: unit bank owned 9/6/07
Bank: unit bank owned
Owners: no contact. Disconnected cable 9/07/07
Cable: Manager reported positive results to using cable privileges as a tool to encourage owners to pay their past due balances. The board approved owner status of “paid in full” as the appropriate time to reinstate cable privileges. The board will vote at the next meeting to reinstate paid in full owners to “member in good standing.” (MSC)
Neighbor disputes information from Adams & Kessler esq. Provided for the board’s information.
Manager has received estimates on deck replacement and is awaiting additional bids.
Maintenance contract bids: bids for two maintenance workers on site each for 40 hours per week under the umbrella of a licensed contractor would cost $55 per hour, per worker.
Landscaping contract bid: five workers on site for 40 hours per week would cost $12,000 per month. No worker
Unfinished business 11:56 p.m.
Neighborhood watch designation: removed from agenda due to lack of interest.
Owner landscaping request: removed from agenda, no plan submitted by owner.
Inspector of election appointed Joe Perna, CPA 12:30 – 2:00; 1 ½ hours $225 (MSC)
Callahan letter re: Degenhardt re-replumb: Lisa Degenhardt chose to suspend the “meet and confer” because of the board approved special assessment that will cover the costs to replumb her unit.
New business 12:15 p.m.
Owners request to remove tree to improve satellite reception: tabled pending researching the cost of removal of the tree; whether the homeowner will pay for removal/trimming of the tree; does the existing tree increase owners’ property values?
Adjourn to Executive Session 12:35 P.M.
LIENS / FORECLOSURES
Adjourn 1:22 A.M.