May 27th BOD Meeting Recap

Following is a recap of topics discussed and/or approved at the May 27th Somersett Owners Association (SOA) Board of Directors (BOD) Meeting, which due to the COVID-19 restrictions was the first one held since Febuary. However, as the Board had previously advised,  it would not be open to physical attendance by Owners, but rather by video link. How did this work out? pretty good in SU’s opinion. In fact the number of Owners who logged in, exceeded normal attendance at past physical meetings.

Owners were allowed to submit comments, on agenda items or otherwise, via email up to 3:00 PM prior to the meeting. Those that did so had them read by the Board. Submitted comments included the following:

  1. That BrightView was not paying enough attention to side roads off the Parkways as regards landscape maintenance – Board response being that the regional head of BrightView had visited Somersett and was not completely happy with what he saw throughout the Community, and all issues would be diligently addressed, including replacing some turf at their own cost. Apparently, lawn fungus is a problem within Somersett.
  2. Status on the cost recovery from the Country Club for their share of Rockery Wall repairs – Board response basically being that there was nothing to report.
    Note: In December 2019 the Board authorized the formation of an “Executive Committee” to work with the Country Club on resolving this issue. For background information readers are referred to SU’s previous post of December 14th entitled “Rockery Wall Lawsuit Appeal and SGCC Tolling Agreement
  3. An opposition, by Committee members, against the proposed revision to the Document Review Committee Charter – Board advised that there was an apparent miscommunication here and that the Charter revision would not be considered (i.e., removed as an agenda item).
    Note: in a related discussion, the Board wanted to review the Committee’s draft mark-up of the CC&R’s before submitting to the SOA Attorney for legal review of the “Declarant” (i.e., Somersett Development Company) related provisions that the Committee is recommending to delete from the CC&R’s

New Business Items on the Agenda were disposed of as follows:

Note: For background information on the following agenda items,  see SU’s previous post   “May 27th SOA BOD Meeting

  • 7.a.  Shared Maintenance Agreement – Approved sharing the maintenance costs tor the Town Center round about on a 60% (SOA) and 40% (Villages) basis.
  • 7.b.  Dakota Ridge Drainage Repairs – Approved the EPS Proposal for $7150.
  • 7.c.  1880 Dove Mountain Erosion Repair – This project covers repairs on both private and Association property. The Board approved the EPS proposal of which the Association portion amounts to $10,924.
  • 7.d.  Irrigation Controller Replacement – Approved the BrightView proposal for $17, 972
  • 7.e.  Community Entrance Landscape Enhancement – Approved the BrightView Proposal for $17,972. However, the SOA has a $20,000 credit from BrightView that will be used on this project.
  • 7.f.  Lawn Edging Replacement – Approved the BrightView proposal for $13,166.
  • 7.g.  Tree Replacement – Approved the BrightView proposal for $24,785
  • 7.h.  2020 Noxious Weed Removal from Vacant Lots (26 private lots) – Approved the BrightView proposal for $8350. However, this expenditure will not cost the SOA anything as, per prior arrangements, it is all reimbursable from the Lot Owners. Good corporation between Lot Owners and the SOA, which most likely saved them money.
  • 7.i.  Fire Hydrant & Curb Painting – Approved Color Trend proposal of $4450 for 106 fire hydrants & curbs along private streets.
  • 7.j,k.l. & m.  Unanimous Written Consent Documents # 70,72,73,74  –  A formal acknowledgement of prior approvals. Of particular interest is #74 which established the “Somersett Guidelines for Re-Opening TCTC“. Board advised that FSR is working with Washoe County on process for re-opening TCTC pool as soon as possible and that staff hires will be needed (e.g., life guards)
  • 7.n.  Revised Document Review Committee Charter – Not acted on, removed from agenda.
  • 7.o.  The Boulders Gate Closure Complaint – A community complaint that the security gates are being left open much too often, thereby compromising security. Board advised they will work with contractors (reason for gates being open most of the time) in an attempt to help alleviate the situation. Perhaps with the issuance of temporary gate codes.
  • 7.p.  Software for TCTC – Conditionally approved proposal for use of the Alosant “Amenity Pass” system at TCTC. Price is $7200/year with a $2500 initial setup fee. Conditionality was predicated on a better understanding of what, if any, support fees would be involved.
  • 7.q.  Discussion on June Mail-out – Apparently there has been some revised “Rules and Regulations” adopted by the Board and whether or not the SOA should go ahead with a previously targeted June Mail-out to owners, or wait to include some new developments. Decision was made to go ahead with the mail-out as planned.
  • 7.r.  Collection Company Change – A discussion on whether or not the SOA should change collection companies given concerns over the performance of the current company. A recommendation has been made that the SOA switch back to Red Rock Financial Services as our collection agent. Previous concerns the SOA had with Red Rock have apparently been alleviated.

 

May 27th SOA BOD Meeting

Following is the Agenda for the Somersett Owners Association (SOA) Board of Directors (BOD) Meeting at The Club at Town Center (TCTC) to be held at 5:30 PM on May 27th. Given that TCTC is still closed, Owners may participate in the meeting via “Zoom” videoconferencing only. Details on accessing the Board Meeting have yet to be disclosed.

May 27th BOD Meeting Agenda

The Board Packet providing background information on Agenda items is available on the SOA Website (www.somersett.net) under the SOA Committees and Meetings link, which provided the source for the following (Agenda items noted):

Committee Reports:

4.d. West Park Community Garden – Delayed progress due to COVID-19 restrictions. Committee will be working on the following ativities: Development of garden rules, fees for participation, irrigation systems, fencing considerations (rodent and other small animal control) and Board approval for fund raising actiities. The report included a document providing supplemental information on the Garden for those wishing to participate, which may be accessed via the following link:     Somersett West Park Community Garden

4.e. Governing Documents – Committee has been meeting via videoconferencing and competed their reiew of the CC&R’s. A marked up copy highlighting proposed additions and deletions has been submitted for Board and Attorney review. Negotiations with Somersett Development Company (Blake Smith) on proposed elimination the Declarant rights provisions contained within the current CC&R’s will be required.

4.f. General Manager – The Board Packet contained the usual GM report, which summarized what has transpired during the COVID-19 closures, including TCTC, Canyon 9 and Landscape (Brightview) projects. For those interested in all the details, the Board Packet (as mentioned above) is available on the SOA website.

Financials:

5.a and 5.b — All the intricate details for the past three months are contained within the Board Meeting Packet.

Old Business:

6.a. Legal Updates – Nothing new to report on the Rockery Wall lawsuit (a mediation session was originally scheduled for March 13th) or negotiations with the Somersett Country Club on Rockery Wall repair costs. Most likely a result of the COVID-19 restrictions.

New Business:

7.a. Shared Maintenance Agreement – A proposed agreement between the SOA and the Village at Town Center for sharing the maintenance costs for the roundabout between the Village and TCTC. Shared amount was not specified in the document, a copy of which is available via the following link:   Shared Maintenance Agreement

7.b. Dakota Ridge Drainage Repairs – A proposal from Environmental Protection Services in the amount of $7510 to perform the repairs. Note that the proposal is dated November 21, 2019, is it still active for award?

7.c. 1880 Dove Mountain Erosion Repair Proposals – Hillside repair proposals from Signature Landscapes ($27,375) and EPS ($20,448). Note that the EPS proposal was dated November 11, 2019 whereas the Signature Landscapes proposal was dated may 5, 2020.

7.d. Irrigation Controller Replacement Proposal – Proposal from BrightView ($5715) for replacement

7.e. Community Entrance Landscape Enhancement Proposal – Proposal from BrightView ($17,972) for turf removal and plant additions at the Sierra Canyon west entry monument.

7.f. Lawn Edging Replacement Proposal – Proposal from BrightView ($13,166) for removal and replacements of broken lawn edging along the Parkways.

7.g. Tree Replacement Proposal – Proposal from BrightView ($24,785) for tree replacements along the Parkway between roundabouts 3 and 6.

7.h. 2020 Noxious Weed Removal for Vacant Lot Proposal – Proposal from BrightView ($8350) for weed removal from twenty-six private lots within Somersett.

7.i. Fire Hydrant & Curb Painting Proposal – Proposal from Color Trends ($4450) for red painting of curbs and 106 fire hydrants within Somersett.

7.j,k,l, & m. Unanimous Written Consent Documents # 70, 72, 73 & 74 – The unanimous written consent process is normally used when the Board is unable to meet as a group and action is required before the next Board meeting. Most likely this process was followed due to the COVID-19 restrictions.

#70 – Approval of a West Coast Paving Proposal ($2,692) for private roads and the Town Center parking lot.

#72 – Approval for the SOA not to assess Owners for late fees and interest (due to COVID-19 impact) for the months of March, April and May

#73 – Approved a BrightView proposal ($11,594) for irrigation controller replacements

#74 – Approved the guidelines for the re-opening of TCTC subject to when Governor Sisolak approves Phase 2 of the COVID-19 statewide standards. A copy of these guidelines may be accessed via the following link:   Somersett Guidelines for Re-Opening TCTC

7.n. Revised Document Review Committee Charter & Appointment of Voting Members – A copy of the revised Charter is available via the following link:     Revised Governing Documents Review Charter

7.o. Review Formal Complaint regarding Gate Closure from Boulders Homeowners – A copy of this complaint is available via the following link:     Formal Notice of Complaint

7.p. Software for the TCTC Proposal – This is a proposal for replacing the current IBS membership management and account system with an Alosant “Amenity Pass” system. The price difference being $5000/year for IBS and $7200/year for Alosant. However, the Alosant system is considered far superior to IBS in the benefits it provides.

7.q. Discussion on June Mail Out to Owners – No information contained in Board Packet

7.r. Collection Companies Potential Change – No information contained in Board Packet

SU Comment:

Regarding landscaping, it appears that the extra Work Orders from BrightView keep on coming, $81,582 worth itemized above. Do we really need new trees along the parkway, enhancing the SCA entrance monument grounds, or removing weeds (are they a fire hazard) from private lots (is this not the lot owner responsibility)? All during austere times and low common area reserve funds?. What about the condition of common area grass strips along the Parkway and Private Streets (e.g, Whisper Rock Way) that leave much to be desired. Is Brightview doing its best?

Also, It seems unfair that Owners are still being cited for “brown spots” when our own common areas are in similar disarray, perhaps even the cause (fungus) for Owner blights?

Previous Post Correction

SU would like to correct its statement in our previous post of May 18 entitled “Town Square Commercial Property Update” that the SOA was a recipient of $311K as a result of the sale of the Town Square property housing the Sakana Sushi restaurant, which was being sold at auction as a result of a SOA lien on the property due to unpaid assessments. Under the term of the “Certificate of Sale” (accessible via download within the previous post) Saemaul Investments (current property owner) had a 60 day option to repay the purchaser (Champery Rental REO, LLC) the $311K purchase price plus interest and the SOA unpaid assessments to retain title to the property, which they apparently have exercised (although as yet unconfirmed within Washoe County records). Therefore, the funds receivable by the SOA will be for the outstanding assessments, an estimated $67K plus unknown fees, and not the $311K as previously reported.

SU apologizes for our misinterpretation on the content of the “Certificate of Sale” (which was also published on this website for all to read} and will subsequently publish the final documents associated with this auction sale when recorded in the Washoe County records.

Town Square Commercial Property Update

It appears that the Somersett Owners Association is now $311K richer (minus unknown fees). This as a result of the sale of their interest in the lien against the owner (Saemaul Investments, LLC.) of the Town Square building housing the Sakana Sushi restaurant (also owned by Saemaul Investments). A timeline of events culminating in the sale follows:

 

  • in June of 2019, the SOA filed a “NOTICE OF DELINQUENT ASSESSMENT AND CLAIM OF LIEN” (Washoe County Document # 4922405-1) against Saemaul Investments due to their being approximately $20K in arears of their SOA assessment payments.
  • In November 2019, a “NOTICE OF DEFAULT AND ELECTION TO SELL” (Washoe County Document # 4977863-1) was filed against Saemaul Investments due to their continued default of SOA assessment payments, which now totaled approximately $55K.
  • In March 2010 a “NOTICE OF HOMEOWNERS ASSOCIATION SALE” (Washoe County Document # 5009415-1) was filed advising Saemaul Investments their property would be sold at public auction if their obligation was not paid. The assessment lien at that time being approximately $67K plus late charges, interest, fees and expenses.
  • In April 2020, being no satisfaction of the lien obligation, a “CERTIFICATE OF SALE” (Washoe County Document # 5019115-1) was accomplished with Champery Rental REO, LLC as the purchaser of the property. Purchase price was $311K.

The CERTIFICATE OF SALE allows the Owner to redeem the property within 60 days by repaying the $311K plus interest and other potential liabilities. However, there is no impact on the SOA in this regard. This is strictly between Champery Rental REO and Saemaul Investments.

So what happens with the property now? How do REO (Real Estate Owned) entities operate? Perhaps there is a knowledgeable foreclosure realtor amongst our readers who would care to comment.

Also, has the SOA determined what they are going to do with the $311K? Perhaps a Board member (I know some of them read this blog) would care to comment.

If any or our readers are interested in the legal details, the documents referenced above may be accessed by clicking on them. Also, a review of the clouded history behind the Town Square commercial buildings is available via our previous post of December 10, 2019 entitled “Town Square Commercial Properties”.

SOA Management Update

For those of our readers who may not be on the Somersett Owners Association’s email distribution list, following is a reprint of their April 24th email providing an update on what the SOA has been up to during this “Stay at Home” directive by the State of Nevada.:

Somersett Owners Association Update – April 24th

For the SOA’s previous update published on March 31st, readers are directed to SU’s previous post of April 3rd entitled:   SOA Coronavirus COVID-19 Update.

It is encouraging to see that the SOA Board and Management Company are exercising their due diligence during these troubled times! Hopefully our Governor will see fit to relax some of these unnecessary restrictions on our civil liberties (SU’s opinion of course) in the not to distant future!

SOA Coronavirus COVID-19 Update

On March 31st via their Somersett Happenings Email distribution, the SOA provided an update on Association happenings related to the coronavirus COVID-19 pandemic. Updates were provided on late fee assessments, AGC Approvals, and Tennis Courts, Canyon Nine, TCTC and Pool operations.

The AGC is still holding their bi-monthly review sessions. Meetings are not in-person, but review packages are provided a few days ahead of time in preparation for on-line sessions. FirstService Residential has been very supportive in providing the on-line resources.

Of particular notice was the announcement that a Special Board Meeting is scheduled for 2:00 PM Friday, April 17 to discuss the impact of COVD-19 on the Somersett Community. Meeting will be conducted virtually. Details are still being worked out.

For those of our readers who are not on the Somersett Happenings Email list (all are encouraged to do so) a copy may be accessed via the following link:

March 31 Somersett Happenings Email

SU has also learned that Tracy Carter still remains as the SOA FirstService Residential General Manager. At the February Board Meeting it was announced that Tracy would be moving on to a new business endeavor outside of the HOA realm, and introduced Ray Sohl as his replacement. Apparently Mr. Sohl’s tenure was very short lived and Tracy has agreed to a three month extension. This is not necessarily bad news as SU feels that Tracy has been an exemplary General Manager and well equiped to lead the Association through these trying times of changing Local and State guidelines.

Waive, Reduce, Refund Assessments?

In his comment, Mr. Bower addressed the issue of assessment refunds due to closure of Association Facilities. That is, Facilities (e.g., The Club at Town Center and Aspen Lodge) owned by the Associations, supported by owner assessments, for which assessment paying owners have no current access to. This is a valid issue, especially if these closures are to be extended for a lengthy period of time.

In our previous post, SU referenced newsletters published by Adams/Sterling, a California Community Association Law Firm, pertaining to COVID-19 impact on HOA’s. A recent Adams/Sterling publication, in which they address the Coronavirus/Assessment issue, is very informative and is accessible via the following link:

Waive Coronavirus Assessments ?

This raises the following questions: What costs, if any, are the Associations (e.g, SOA and SCA) saving as a result of these closures or elimination of vendor services? For example, are Management Company employees dedicated to the operation of these Facilities, which are no longer operational, in the “Stay at Home” category and not being paid like so many other workers? As may be many Somersett residents? If not, should they be? Are BrightView or other maintenance personnel no longer performing their contracted for services? If not, should we be paying them?

Perhaps some communications from the SOA and the SCA on this subject are in order?

COVID-19 Impact on the SOA?

As governmental and health agency “talk” continues about extending the COVID-19 “Stay at Home” policy, what effect could this have on the Somersett Owners Association’s (SOA) income? This as the result of job loss by residents, or senior citizens who rely on 401K savings? Has the Association made any contingency plans in this event? What relief can the Board extend to residents who may fall into this category?

To make up any SOA income shortfalls  –  What 2020 projects can be cancelled? What SOA operations could be curtailed? Are reserves available for operating expense use in this event? Good questions that hopefully will not need addressing in the final analysis, but should be planned for.

However, to address these and other COVID-19 HOA issues, a California Community Association Law Firm, Adams/Sterling, has published several newsletters, which, for the interested, can be accessed via the following links:

More COVID-19 Questions –  March 18
Coronavirus Virtual Meetings.docx  –  March 19
HOA Operations are Essential  –  March 21

What impact will the COVID-19 pandemic have on job losses nationwide? A blog post on the Economic Policy Institute (EPI) website provides estimates on a state by state basis in the following publication:

EPI Posting on Coronavirus Job Losses

Note per their website: “ EPI is an independent, nonprofit think tank that researches the impact of economic trends and policies on working people in the United States. EPI’s research helps policymakers, opinion leaders, advocates, journalists, and the public understand the bread-and-butter issues affecting ordinary Americans”.

SU does not make any claims as to the accuracy of EPI’s postings.

MCH COVID-19 Bulletin

The linked Bulletin published by a Law Firm in Henderson, Nevada was forwarded to SU by a reader (Joe Bower) as being of general interest to the Somersett Community. The Bulletin addresses suggestions as to how Homeowner Associations should operate during the Coronavirus outbreak. Its content validates the recent actions taken by the Somersett Owners Association and the Sierra Canyon Association in closing both The Club at Town Center and Aspen Lodge. It also addresses other suggestions for the conduct of Association business during these times.  Recommend reading!

3-14-2020 MCH COVID BULLETIN Final for Release

 

City of Reno Emergency Declaration Reference

In our previous post on “Coronavirus Closures”, reference was made to thre City of Reno’s emergency declaration made on Friday, March 13th. For those interested, the news release pertaining to this declaration may be accessed via the following link:

https://www.reno.gov/Home/Components/News/News/19294/576

The preceeding news release contains an embedded link “State of Emergency”, which will bring up the applicable Municiple Code (i.e., Chapter 8.34 – Emergency Management), which authorizes and governs actions under a declared State of Emergency. Chapter 8.34 may also be accessed via the following:

Chapter 8.34 – Emergency Management