July 21st SOA Board Meeting Recap

Following is a summary of discussions and actions taken by the Board at the July 21st Board Meeting, the agenda for which may be accessed via the following link.  

July 21st BOD Meeting Agenda

The following addresses some of the more salient points that transpired at the meeting. For a more complete understanding of what was discussed and acted upon, the reader is referred to the meeting audio/video recording, which may be found on  the SOA Website (www.somersett.org) under the “SOA Board and Committees/The Board of Directors” page.

4.  Committee Reports

4.a.  Finance Committee –  Reported the following financial summaries through May 2021:

      • Operating cash –  $1.0M
      • Reserves – $9.1M
      • Revenue – $2.7M and Expenses – $1.9M (Note: No comment on whether or not the $0.8M in revenue over expenses represent a net positive to the bottom line or expenses not yet accounted for)
      • Association Debt – $4.15M

4.c.  Facilities Committee –  Made a recommendation that rather than renewing the BrightView Landscape contract (contract is up in September with a one year extension clause) that the Association instead solicit competitive bids. This based on dissatisfaction with BrightView’s performance and that the current contract is too open-ended to hold one’s feet to the fire. The Board approved the recommendation for soliciting competitive bids.

4.d.   West Park Garden Committee –  Reported that table umbrellas and potted flowers to attract pollinators have been installed. Also, that volunteers will soon be installing small critter fencing around the perimeter of Garden. (SU Note:  The garden plots appear to be flourishing, readers are encouraged to check it out!).

A question was raised as to whether the large dog park was open, and if so, too many foxtail plants still exist to the detriment of users. Response being that the park is indeed open and that BrightView would be commissioned to “sweep” the area.  It was also commented on that the City of Reno just did not have the resources for park improvements, hence the desire by the Board to have it turned over to the Association (at what cost one may ask?)

4.e. Community Events Committee – A comment on the success of the Auto show and to check the calendar for upcoming events.

SU Note:  It appears that Committee reports are mostly being presented by the Board members who liaison with the Committees, rather than the Committee Chairpersons, often without any formal report being contained within the Board Meeting Packet. A deviation from past practice!

6.  Unfinished Business Agenda Items:

6.a.  Legal Updates – Nothing new to report on the Somersett Development Company and Preston Homes lawsuits.

6.b  1880 Dove Mountain – The Board President summarized the history associated with this ongoing issue. He advised that the solution has been re-engineered with a new proposal in the works, but that only one company has expressed any interest in doing the job.

6.c  Update on Management Options Study  –  SOA Management Consultant Nancy Kerry provided a status report on progress to date.  Rather than summarizing her comments here, the reader is referred to the attached updates, which are also available, along with all previous reports, on the SOA website (www.somersett.org) under the “Future of Management in Somersett” page link.

7.  New Business Agenda Items

7.a.  Guest Pass Discussion –  After much discussion on the TCTC guest pass issue, the Board voted to reinstate  the free four guest passes per household per season and to charter the Facilities Committee to address the other issues being raised and recommend a “Criteria” for guest pass usage moving forward.

7.b.  Variance for Basketball Hoops in Driveway Discussion  –  The Board voted to extend the relaxation on use of basketball hoops in driveways (i.e. can be left out permanently) until October, and in the meantime to conduct an owner survey on criteria for their future use.

7.c.  Review of Association Insurance Proposals – Individual vendor proposals being complied by an Insurance Brooker were not yet available and will be addressed at the next Board meeting.

7.d.  Review of Management Services Proposals  –  One of the Management Options Study objectives was to obtain competitive quotes from a number of HOA Professional Management Companies. In response to the Association’s Request for Proposal, six companies submitted proposals along with sealed cost data. The proposal content was made available to the Board prior to the Board meeting, with the sealed quotes to being opened at the meeting  The six companies submitting proposals were as follows:

      • Associa Sierra North
      • CamCO HOA management
      • Eugene Burge Management Corporation
      • First Service Residential
      • Taylor Association Management
      • The Management Trust

With respect to individual quotes, base management fees ranged from $5,700/month to $9300/month not including other fee structures. It was evident that the individual quotes could not be compared on an apples to apples basis and a more detailed analysis of the individual proposals would be required. In this context the SOA’s Management Consultant and Staff was chartered with generating a matrix of comparable features and fees to assist in the evaluation process. The intent being to narrow down the field, who will then be brought in for interviews and further investigation before deciding on the preferred vendor. A special Board meeting is scheduled for August 10th to provide some closure on the process. It should be noted that this vetting process does not mean that the Board has decided to employ a professional management company as opposed to internal management, that decision has yet to be made.

7.e  Acceptance of Streets and Gates in Cliffs from Toll Brothers  –  Toll Brothers is requesting the SOA to accept turnover of the Gates and Streets (i.e., maintenance responsibility) within the Cliffs development. Basically to save them money, as is they are currently paying assessments to the Association on their unsold lots ($89 for Gates and Streets) while still maintaining them out of their own pocket (e.g., snow removal). However, given that the development is far from complete, they will indemnify the Association for any damage caused by their construction traffic. After much discussion on the merits of this request, the Board tabled action to review previous Toll Brothers requests, and their outcomes.

SU Comment – SU believes that action on Item 7.e. is a “no-brainer”, and that is to deny the request. Once the Association accepts maintenance responsibility in this context, any subsequent damage will most likely result in an argument over who caused what, with potential lawsuits. Other than being neighborly, there is no benefit to the Association here, only to Toll Bros, so why go down this perilous path?

July 21st SOA Board Meeting

BOD Agenda 2

Following is the Agenda for the Somersett Owners Association (SOA) Board of Directors (Board) Meeting to be held at The Club at Town Center (TCTC) at 5:30 PM on Wednesday, July 21st in the Canyon View Room. Apparently Zoom video conferencing is not yet available from that location, so owner participation must be in person.

July 21st BOD Meeting Agenda

The Board Meeting Packet for the July 21st Board meeting was not yet available on the SOA website at the time of this posting. Therefore, SU is unable to provide any background info or comments on the individual agenda items at this time Given the two days to the Board meeting, perhaps one may still become available. For this, our readers are  referred to the SOA Documents/Board Documents/2021 page link on the SOA website (www.somersett.org), login is required.

Regarding the Committee Report agenda items (i.e., Budget & Finance, Communications, Strategic & Facilities, West Park Garden, and Community Events), SU suspects that these are simply place holders that may or may not be commented on. However, at the last Board meeting, two new committees were approved:1) a Technology Advisory Committee, and 2) a Strategic Planning Committee (separated out from the Strategic and Facilities Committee). Although not specifically identified on the agenda, perhaps an update on these two new committees will be provided.

Unfinished Business agenda items included: 1) legal Updates and 2) 1880 Dove Mountain (the saga continues). Again, SU suspects these are also placeholders with little new to report.

New Business agenda items include: 1) Guest Pass Discussion, 2) Variance for Basketball Hoops in Driveway Discussion, 3) Review of Insurance Proposals, 4) Review of Management Services Proposals, and 5) Acceptance of Streets and Gates in Cliffs From Toll Brothers. The latter two items should be of general interest to all owners. An action item of the ongoing “Management Options Study” was to solicit bids from other management companies in addition to FirstService Residential, perhaps some have been received, The last item pertains to a request for the SOA to accept turnover of the gates and streets at “The Cliffs at Somersett “ to the Association, even though home site development is far from complete. Not a good idea!

Aside from the Board meeting, for some great pictures of the July 10th Auto Show at The Town Center, including award winners, our readers are referred to the SOA Website at http://www.somersett.org. Login is not required.

SGCC 2020 Financial Summary

happy golfers 1

Given the Somersett Owners Association’s (SOA) investment and liabilities associated with the Somersett Golf and Country Club (SGCC) Purchase and Lease Agreements, the SOA has a vested interest in the financial health of the SGCC and hence of interest to many Association members. Since the SGCC’s financial data is not made available to Association members through any other media, it has been SU’s practice to annually publish what is publicly available, hence the following update.

The following table represents a summary of the Somersett Golf & Country Club’s (SGCC) revenue and expense data for the years following turnover from the Somersett Developer to its Equity Members in 2010. The table has been updated to include the 2020 financials. All financial data contained in the following table are derived from the SGCC’s IRS Form 990’s, which require submittal by May 15th of the following year and become available for public inspection. The SOA Revenue Column represent previous monies provided to the SGCC from SOA funds as indicated by the corresponding “Notes”.

Year SGC* Equity Members SGC Total Revenue SGC Total Expenses Revenue Less Expenses SOA Revenue Contribution ** Notes
2010 188 1,990,652 2,550,940 -560,288 0 1
2011 152 2,087,950 2,715,815 -627,865 0 2
2012 129 2,645,620 2,613,692 +31,928 435,000 3, 4
2013 115 2,918,754 2,815,109 +103,645 440,000 4
2014 194 2,729,114 2,695,062 +34,052 360,000 4
2015 220 995,670 2,581,250 -1,585,580 2,750,000 5,6
2016 241 2,611,329 2,664,450 -53,121 0  
2017 256 2,957,651 3,030,659 -73,008 0  
2018 293 3,149,162 3,257,636 -108,474 0  
2019 274 3,152,660 3,302,604 -149,944 0  
2020 330 3,160,269 3,049,520 +110,749 0  

*  Represents full proprietary membership with voting rights, does not include non-permanent or provisional memberships

** SOA Revenue Contribution does not include Canyon9 Maintenance Agreements with the SGCC which ran through 2017 at then $309K annually. The SGCC no longer provides this maintenance service to the SOA.

Table Notes:

  1. In the Fall of 2010, the Somersett Development Company negotiated early turnover of the SGCC to its Equity Members via Member majority vote.
  2. 2011 was the first year in which the SGCC was run entirely by Equity Members.
  3. In late 2011, the Developer controlled SOA Board voted to divert $15/month of homeowner assessments to the SGCC via a “Lease Agreement” in exchange for some SGCC access amenities. This agreement was to run for three years starting in January 2012 with optional 3 and 4-year renewal periods. The obvious purpose being to subsidize the SGCC’s operating losses.
  4. The SOA Revenue column represents revenue the SGCC received in years 2012, 2013 and 2014 from the SOA under the Lease Agreement described in Note 3 above. 2014 was the last year under this agreement after being declared unlawful by the Nevada Real Estate Board.
  5. As a replacement for the aforementioned Lease Agreement, in late 2014, a SGCC Real Property Purchase and Lease Agreements were approved by SOA owner majority vote. Under this agreement, the SOA purchased the SGCC land and water rights for $2,750,000 with a subsequent leaseback of the land and water rights to the SGCC at a base rate of $1000/year (subject to escalation) plus a fixed rent amount of $1200/year. Lease term is for 50 years with two SGCC optional 20-year renewal periods. The SOA purchase funds were obtained via an ongoing bank loan currently being paid for from homeowner assessments.
  6. The SGCC 2015 negative revenue less expense amount was primarily due to the $2,750.000 sale price income (see Note 5) minus a reported sales expense (asset loss) of $4,294,781.

A copy of the SGCC’s 2020 Form 990 may be accessed via the following link:

SGCC 2020 Form 990

Comments on the Preceding:

After years of moderate equity member growth, the 330 total at the end of 2020 represents an increase of 56 members over 2019, the largest gain since 2004.  Note: Unless subsequently modified, equity membership is capped at 450.

The SGCC’s operating loss, which had been steadily increasing since the loss of the SOA revenue contributions in 2016, showed a good turnaround for 2020, with an excess of revenue over expenses of $110,749. This primarily due to a decrease in expenses of $253,084. Better management possibly?

In 2020, The SGCC was facing a lawsuit from the SOA for their share of Rockery Wall failure repairs (approximately $680K) on he hillside adjacent to Hole #5. This lawsuit was settled out of court with the SGCC agreeing to pay the SOA $263,097 via an annual payment of $5,979.48 per year for 44 years (i.e., the remaining 44 years on the current lease agreement). A good settlement for the SGCC, not so much for the SOA.

A breakdown of the SGCC’s  revenue and expenses by category is found in Part VIII “Statement of Revenue” (page 9) and Part IX  “Statement of Functional Expenses” (page 10) of the SGCC 2020 Form 990.

Based on the 2020 financials, the SGCC appears to be reaching financial stability. Perhaps this will alleviate the fears of many that the SOA will again be called on to provide some sort of financial support to the SGCC, which has not been the case since 2015.

June 30th SOA Board Meeting Recap

recap 1
The June 3oth Board Meeting Agenda may be accessed via the following Link:     

June 30th BOD Meeting Agenda

Following is a summary of actions taken by the Board on the referenced agenda items. To listen to Board discussions on these items as well as all others not requiring an action item, one is referred to the “June 30, 2021 audio recording”, located on the SOA Website (www.somersett.org) on the SOA Board and Committees/The Board of Directors page.

Owner comments made at the meeting are also summarized below. Given the quality of the audio recording, SU apologizes for any misstatements.

2. Homeowner Comments

  • A Homeowner commented on the lack of acceptable golf cart parking parking accomodations for those attending the Music on the Green via this mechanism, and requested the Board review how this was handled (apparently acceptable) in the past and initiate procedures to correct this for future events. Also expressed a total unhappiness with owner services provided by First Service Residential in the 10 years they have been the SOA’s professional management firm. Felt they were just using Somersett as a training ground for their employees.
  • A homeowner commented that the slope of the large dog park made it difficult for his older (geriatric) dogs with physical problems to use. Hence he has been using the small dog park (without any problems) and suggested the Board consider this situation and possible solutions.

3. The May 26th, 2021 BOD Meeting Minutes were approved

4. Committee Actions

4.a. Communications – The Board approved the formation of a “Technology Advisory Committee” to carry out a SOA “Technology Audit”. That is, to study and recommend changes to the SOA’s many communication and data systems. The Committee will hold a meeting at TCTC at 10:00 – 11:00 AM on July 6th. Approved Paul Taybi as a Communications Committee member.

4.e. Community Events – Approved Sue Bartolotti as a Committee member.

4.f. General Manager Report – Adopted a policy that for every non-compliance letter written to an owner, two letters of commendation would be written to owners with outstanding features.

5. Financials – Approved the April 30th financial statements.

6. Unfinished Business

6.b. 1880 Dove Mountain – The saga on this slope stabilization project continues! A bid in the amount of $18,985 for some partial slope stabilization work was opened, but tabled and no action taken on it. This to assess how it fits in with other previously received proposals and consideration of other options.

6.c. Update on management options study – “A Future of Management in Somersett” page has been added on the Somersett Website (www.somersett.org) to capture all documentation associated with the activity to re-evaluate SOA management options. The Board accepted SOA consultant Nancy Kerry’s June 30th memorandum to the Board identifying work completed to date on this study. Ms. Kerry summarized the content of the memo, which addressed the solicitation of Association Insurance, Management and Accounting Proposals, as well as some additional services. A copy of this Memorandum may be accessed via the following link:

Consultants Project Update Memo June 2021

6.d. The Club at Town Center Server Replacement Proposal – The Board again tabled action on a $21K vendor proposal for upgrading the TCTC servers, which will be referred to the newly formed Technology Advisory Committee  for a collective evaluation in conjunction with other SOA proposed communication and data system upgrades.

7. New Business

7.a. Security Camera Proposals – The Board opened bids from four vendors for replacement of the security cameras at TCTC. Bids ranged from $46K to $74K (not necessarily apples to apples). The Board moved to take no action on these proposals, but to refer them to the Technology Advisory Committee per item 6.a above.

7.b. Clubhouse Phone System Upgrade Proposal – Same action as for items 6.d. and 7.a above with regard to a vendor proposal for TCTC phone system upgrades.

7.c. Proposal for more Dog Waste Stations – The board rejected the offer by Brightview to install additional dog stations at a cost of $678 per station on the basis that it was too high, with $230 being more reasonable. After much discussion, including the use of owner volunteers to install them, the Board approved a not to exceed $5K budget for additional stations along with an owner survey to help determine preferred locations. Actual number to be installed will depend on cost of materials and method of installation.

7.d. Increase Limit on General Manager P-Card – The Board approved increasing the limit on the SOA General Manager’s Purchase Card (which has category limitations) from $3K/month to $5K/month.

7.e. Updated Procedures for Approving Contracts and Payments on SOA Projects – The Board passed a motion to task the SOA Management Analysis Consultant, Nancy Kerry, to develop a procedure/checklist for the award, implementation and monitoring of SOA Projects. No discussion on whether or not this will be at an additional cost to her current contract.

7.f. Approval of Letter of Intent to Annex the Parks into Somersett from the City of Reno – The Board approved sending a Letter of Intent (non-binding) to the City of Reno with regard to annexation of the Somersett East and West Parks into the SOA. This is the first step in exploring this possibility. A Memorandum to the Board on this issue and the approved letter of Intent may be viewed via the following Link:

Parks Annexation Memorandum and Letter of Intent

7.g. Splitting Strategic Planning from Facilities Committee – The Board approved a motion to remove the SOA strategic planning function from the Facilities Committee and to create a new Strategic Planning Committee initially consisting of 1-2 members from the Finance, Communication and Facilities Committees.

7.h. Proposal for Replacing Trees in Sommersett – The Board approved a $8K BrightView proposal to replace 31 trees reported as dead or dying. The 31 trees represent a combination of evergreen (pine) and deciduous trees.

7.i. Approval of New Member to AGC Committee – Two Candidates (Clint Maples and Rick Hartmann) applied for AGC membership. The Board approved Rick Hartman for AGC membership and pre-approved Clint Maples for membership on the Facilities Committee if interested.

7.j. Fence Extension Proposal – Approved a proposal from Tholl Fence in the Amount of $12,280 to install new 8 ft gates and fence pickets at TCTC pool area. This to deter unauthorized entry which has occurred via the existing 4 ft gates.

Homeowner Comments

  • A homeowner expressed concerns and had questions on the following: 1) what criteria the SOA employs in accepting common area turnover from Developers, and 2) future impact on homeowners whose front yards were originally landscaped by developers but no longer comply with AGC standards.
  • A homeowner again raised concerns about speeding on the Somersett Parkway. That the traffic study performed by the SOA was totally inadequate, performed at the wrong locations and needed to be redone. The Board needs to take some serious action here and revisit this issue with the City to solve the problem!
  • A homeowner expressed concerns and had questions on the following: 1) Will the Board replace its missing member with a Sierra Canyon representative, 2) Common Area irrigation system problems, 3) how are the transfer fees going to the SOA on sale of houses being utilized, and 4) suggested joint meetings of Sierra Canyon and SOA committees.
  •  A comment that despite several calls to the Sommersett main telephone number to report a major mainline dripline leak in the Common Area behind her house, the problem still exists. Also, a suggestion that our City Council representative be invited to a meeting here in Somersett to listen to owner concerns.
  • Another comment on Somersett Parkway speeding and tree replacement considerations.

SU Comment:

During the Homeowner Comment section of the meeting, there was a lot of dialog exchange between Board members (to their credit) and commenters on their questions/concerns, which is not captured in the preceding. To appreciate this dialog exchange, one is referred to the audio recording referenced above. Also, the Board is to be congratulated on their patience in not enforcing the 3 minute limit for owner comments. The dialog exchange and limit leniency is a welcome departure from previous Boards.  Hopefully it will not be abused by owners going forward.

 

June 30th SOA Board Meeting

hoa meeting 1

Following is the Agenda for the Somersett Owners Association (SOA) Board of Directors (BOD) Meeting to be held at The Club at Town Center (TCTC) at 5:30 PM on Wednesday, June 30th. Owners may participate either in person  or via “Zoom” videoconference. Video access instructions are available on the Meeting Agenda.

June 30th BOD Meeting Agenda

The Board Meeting Packet providing background information on some of the above Agenda items is available on the SOA Website (www.somersett.org) under the SOA Documents/Board Documents/2021 page links.  Following is a listing of the June 30th agenda items with comments noted:

3.  May 26th, 2021 BOD Meeting Minutes

The Board Meeting Packet referenced above contains a draft summary of the May 26th Board meeting minutes.  However, for an alternate version, one is directed to SU’s previous post of May 30 th entitled “May 26th SOA Board Meeting Recap”.

4.  Committee Reports

4.a. Budget & Finance, 4.c. Strategic and Facilities, and 4.d. West Park Garden  –  No reports from these Committees were contained in the Board Meeting Packet

4.b. Communications  –  Listed the following accomplishments: 1) Future of Management in Somersett posted on Website, 2) Resident Advertisers have signed up and revenue stream started, 3) Photo contest completed, 4) Technology Audit approved and will start in July, and 5) Improved notification and processing of irrigation problems link to BrightView Committee. Committee recommendations included approval of Paul Taybi as a Committee member and the formation of an “Advisory Committee” to carry out the “Technology Audit”.  (Note: No information as to the purpose/objective of the Technology Audit was contained in the report). Also, advised that John Tozzi has resigned from the Committee and will be seeking new members.

4.e.  Communuty Events  –  Listed the following accomplishments: 1) Approved the budget for the July 10th car show, 2) Received outstanding comments from attendees of spring social. 3) Postponed the July 26th Golf Course event due to lack of response from staff at Golf Club, 4) Finalized August 19th wine tasting event details and approved cost/budget, and 5) Booked the band for the December 3rd Holiday/Christmas Kick-off Event. Committee recommended the purchase of new Holiday/Christmas decorations for the upcoming season. Also, proposed the addition of Sue Bartolotti as a Committee member.

4.f.  General Manager Report  –  The reader is referred to the Board Meeting Packet for the usual information and updates on: 1) AGC activity, 2) Community enforcement data, 3) Owner communications, 4) TCTC events and club usage data, 5) maintenance projects, and  6) BrightView Landscape reports.

5.  Financials

The usual 30+ pages of financial data. The reader is referred to the Board Meeting Packet for details.

6.  Unfinished Business

6.a.  Legal Updates  –  Nothing new to report      

6.b.  1880 Dove Mountain  –  No supporting information contained in the Board Meeting Packet for this agenda item. Perhaps just an impromptu update discussion

6.c.  Update on management options study  –  No supporting information contained in Board Meeting Packet for this agenda item. Perhaps just an impromptu update discussion

6.d.  The Club at Town Center Server Replacement Proposal  –  Action on this $21K  proposal from Logically to upgrade the SOA’s server network architecture was tabled at the April 28th Board Meeting. This to address actual need as well as exploring other options such as moving to a “cloud” server architecture.

7.  New Business

7.a.  Security Camera Proposals – Opening of sealed bids for upgrade of TCTC camera system.

7.b.  Clubhouse Phone System Upgrade proposal  –  Evaluation of two related proposals: 1) A proposal from Mitel for their MiCloud Connect telephony communication system, consisting of a one time fee of $600 and a monthly service fee of $357.49, 2) A proposal from PacStates Communications for Cloud Implementation Services estimated at $1890.

7.c.  Proposal for more Dog Waste Stations – In response to owner requests, the Board will consider the installation of additional dog stations (locations TBD) at a cost of $678 (by BrightView) per station.

7.d.  Increase Limit on General Manager P-Card  –  For practicality purposes, the Board will consider a motion to increase the spending limit on the SOA GM’s purchase card.

7.e.  Updated Procedures for Approving Contracts and Payments on SOA Projects  –  The Board will entertain motions on the formation of new procedures/checklists dealing with SOA projects (i.e., a more beneficial approach to project management)

7.f.  Approval of Letter of Intent to Annex the Parks into Somersett from the City of Reno –  The Board is interested in having more control over the operation and maintenance of the Somersett East and West Parks, which are currently owned and operated by the City of Reno. To achieve this control, the Board is exploring the annexation of both the East and West Parks into the SOA Common Area. Discussions with the City of Reno indicate a receptiveness on their part. Hence the generation of a “Letter of Intent” to the City.  A Memorandum to the Board on this issue and the subsequent Letter of Intent (both composed by Board Member Williams) may be viewed via the following Link:

Parks Annexation Memorandum and Letter of Intent

7.g.  Splitting Strategic Planning from Facilities Committee  –  The Board is considering removal of the SOA Strategic Planning function from the Facilities Committee and to accomplish this function either via a separate Committee or a sub-committee within the Facilities Committee.

7.h.  Proposal for Replacing Trees in Sommersett  –  In January 2021, the Board tabled a proposal from BrightView for the installation of 100 new trees (primarily along the Parkway). This to further assess need, location and tree inventory considerations.  Apparently there has been some complaints from Owners on dead trees, hence this agenda item and the possibility of new motions by the Board.

7.i.  Approval of New Member to AGC Committee  –  There is an opening on the AGC Committee due to the resignation of Rob Jordan. Two Candidates (Clint Maples and Rick Hartmann) have been interviewed by the Board and are under consideration.

7.j.  Fence Extension Proposal  –  A proposal from Tholl Fence in the Amount of $14,343 to install new higher gates and fence pickets at TCTC pool area. This to preclude incidents where individuals have gained access to the Clubhouse and Pool Area by scaling the existing four-foot-high gates.

SU Comments

Agenda Item 7.f dealing with the annexation of the East and West Parks into Somersett should be of significant interest to all owners. Since the vast majority of users of these facilities are most likely Somersett residents, control over their operation by the SOA makes sense. However, it raises the following questions: 1) What additional liabilities would the SOA incur, especially given that public use will most likely still be required by the City? 2) currently the SOA is responsible for landscape and facility maintenance, but SU is under the impression that any future capital improvements are the responsibility of the City (e,g., playground equipment, picnic and bathroom facilities), what would be the financial impact to the SOA? 3) The Somersett CC&R’s require owner approval for acquisition of property into the SOA with a market value in excess of $500K, would that apply in this case?

As always, reader comments on any of the above agenda items are welcome!

May 26th SOA Board Meeting Recap

recap 1

Following is a recap of topics discussed and/or approved at the May 26th Somersett Owners Association (SOA) Board of Directors (Board) Meeting. Recap was derived from viewing the “May 26, 2021 Zoom Recording”, which is available on the SOA website.

The reader is referred to SU’s previous post of May 22nd entitled “May 26th SOA Board Meeting” for a copy of the Meeting Agenda. A recap of items discussed with corresponding Agenda items noted follow:

2.  Homeowner Comments

An owner raised the question on whether or not resident guests would be allowed at the TCTC pools this season. Owner was advised that guests would be permitted, subject to the established Rules and Regulations.

3.  May 12th, 2021 BOD Meeting Minutes

Minutes were approved. For a more detailed recap, see SU’s previous post of May 17th entitled  “May 12th SOA Board Meeting Recap”.

4.  Committee Reports

4.a.  Budget & Finance – No report

4.b.  Communications – Advised that: 1) the Committee is proceeding with implementation of commercial advertising on the SOA website, for which the Board approved the related “SOA Community Website Advertising Agreement“;  2) the “Report Irrigation Issues” form located on the SOA website under the “Contact Us” page will now be linked directly into BrightView’s dashboard system for tracking, note that this form can also be used for reporting other landscape issues, in doing so residents are encouraged to submit photographs and GPS coordinates if possible; and 3) the Committee is still seeking volunteers for an open seat.

4.c.  Strategic and Facilities –  No formal report. However, Board member Williams commented on a BrightView meeting pertaining to item 4.b (2) above in which they supported the linkage.  Also advised that a new Committee Chairman will be appointed.

4.d.  West Park Garden –  The Committee Chairman commented on the upcoming installation of containment fencing to keep out rabbits, the need for a storage unit for tools and equipment and a message board to provide important information to the gardeners.

4.e.  Community Events – No formal report.. However it was reported that the May 27th Spring Social at TCTC was sold out with 175 participants.

5. Financials  –  No report

6.  Unfinished Business

6.a. Legal Updates – The Board President summarized the agreement (filed with the Court) the SOA entered into with Preston Homes in January of this year regarding the Back Nine Trail gate operating times, which required that the gates being left open during specified times until Preston Homes sold their last lot. The Board originally anticipated this to happen rather quickly with only three lots left. However, it now appears that Preston Homes is in no hurry to sell the remaining lots and actual completion (per their interpretation of the agreement) may not occur for 18 to 24 months, thereby requiring gates to be left open at the specified times for this duration. Obviously, an unacceptable consequence for the affected residents. The SOA has been advised they basically have no successful legal recourse in this matter. Therefore, the Board is proposing another sit down with Preston Homes, with perhaps a petition signed by all affected owners, to see if an acceptable alternative can be negotiated.

6.x. 1880 Dove Mountain Hillside Stabilization Project – The Board President provided background and update information on this project along with comments on SOA versus owner responsibilities. This was not an agenda item and appeared to be a statement absolving the SOA from any liability associated with owner property damage.

6.b. Update on Management Options Study – The Board President introduced SOA Consultant Nancy Kerry who summarized her “Analysis of Management Options Report” to the SOA via a PowerPoint presentation, which covered all the salient items contained in the report. There were some questions and answers on the part of the Board both with Ms. Kerry and Lorrie Olsen, GM for the Caughlin Ranch HOA, who was virtually present to answer any questions the Board might have on Internal Managed HOA’s, which apparently has always been the case for Caughlin Ranch. Obviously Ms. Olsen spoke in favor of Internal Management. Note that Caughlin Ranch does not have near the amenities of Somersett (e.g., no club house, pools or tennis courts) and a budget approximately 37% that of the SOA. Based on the Report’s recommendations, the Board acknowledged that more due diligence was required and passed a motion wherein the Board would take the lead in negotiations with FirstService Residential with Ms. Kerry to further address the other options

6.c. Snack Bar Update – Some recap, but nothing new to report

6.e. Pool Reserve Parts Inventory Purchase – An item deferred from the previous two board meetings regarding the purchase of spare parts for TCTC pools as recommended by the SOA’s pool maintenance contractor. Current proposal is for the purchase of items totaling $10,539.66. After much discussion, including the picking and choosing of parts from the recommended list, the Board approved the purchase of those items with identified long lead times (i.e. 10 months), three items which amounted to $3450. This did not include a $3725 item for which only one was identified as currently available in Reno.

6.d. Discussion on Resolving the Status of the Open Board Seat – The Board approved leaving the open Board seat (i.e., as a result of Board member Craig Hanson’s resignation) vacant until the next scheduled Board member elections. With only four sitting Board members, a quorum to conduct business is now three Board members.

7.   New Business – There were no new business items to discuss.

8.  Board member Comments

  1. Board member O’Donnell reported that the 6,000 square feet of artificial turf purchased at the last Board meeting would be delivered on May 27th. However, with the a vendor caveat that if the artificial turf rolls were seamed and staked as normally required, the vendor would not buy them back (i.e., if subsequently unwanted by the SOA). The buy back option was a selling point put forth by Board member O’Donnell as a basis for purchase.
  2. Board member Williams brought up the idea of annexing the East and West Parks into Somersett to become part of the Common Area. This apparently due to the difficulties encountered on working with the City of Reno Parks Department. Currently both Parks are public domains (with grounds maintained by the SOA) owned by the City. It was proposed that Board Member Williams draft up a letter to the City exploring this option, which would then be reviewed by the SOA legal team prior to submission. It should be noted that annexation or purchase of real property into the SOA is governed by the PUD and CC&R’s, some of which would require homeowner vote.
  3. Board member Williams introduced the idea of a “Somersett Cares” program to assist Somersett owners who are experiencing hard times in one form or another. Perhaps via some sort of notice on the SOA website wherein the need for volunteer help, donations or some sort of fund raising could be identified.  It was decided to refer to the Communication Committee.

9.  Homeowner Comments

A couple homeowner commendations to Nancy Kerry on the Management Analysis report and the information provided by Caughlin Ranch GM Lorrie Olsen.

SU Comments

SU believes that the current Board is overreaching a bit in discussing items not on the Agenda, patricianly if it results in some sort of action on their part.  Not including these discussions as an Agenda item deprives owners the opportunity to comment.  An example of which is the Parks annexation discussion generated by Board member Williams under item 8.2 above.  SU believes this discussion (not on the Agenda) and resulting action violates the spirit of  NRS 116.3108.4 which states: “ 4. The agenda for a meeting of the units’ owners must consist of: (a) A clear and complete statement of the topics scheduled to be considered during the meeting… and (b) A list describing the items on which action may be taken…..”

Given that the Caughlin Ranch HOA Chairman was invited to address the Board on HOA management structure issues, perhaps the Board could also take a lesson from their Board Meeting Agendas, which are much more detailed, informative and, surprisingly, available on the Caughlin Ranch HOA website (https://caughlinhoa.com) for viewing by the general public.

SNPAA Events and Sponsorship

snpaa_logo

The following open letter from Joseph Morabito, President Sierra Nevada Performing Arts Association (SNPAA). A very worthwhile endeavor. Please visit their website at https://www.snpaa.org

Hello: Once again this year, we are seeking sponsors for the Sierra Nevada Performing Arts Association so we can continue our mission of providing scholarships to talented students graduating from high schools in Northern Nevada pursuing higher education in the performing arts. This year we are planning our Wine Sharing Party on Sunday, July 11 in Arrowcreek at our home and our Wine and Roses Gala at the Atlantis on Saturday, October 30. Tickets are also available for our Wine Sharing Party at snpaa.org. Our various donation levels come with tickets to both events, which is something new. Letter and Sponsorship pages attached. Just print the sponsorship page and send in with your donation. If you have already made a donation, thank you. Please save the dates and I hope you will consider becoming a 2021 sponsor. 

Joseph Morabito

President
Sierra Nevada Performing Arts Association.
+1.949.500.0753 Cell
jmorabito@paragongri.com

Attachments:      SNPAA Friends Letter        SNPAA 2021 Sponsorship & Donation Form

Management Options Study -Consulting Services Agreement

In SU’s previous post “SOA Management Options Study” a reference was made to the Consulting Services Agreement the SOA entered into with Nancy Kerry to perform the subject study. At that time SU did not have a complete copy of the Agreement and advised it would be posted on this website when obtained.

Having now obtained a copy, the SOA agreement with Ms. Kerry may be accessed via the following link:

Nancy Kerry SOA Consulting Services Agreement

SOA Management Options Study

At the April 14th SOA Board of Directors (Board) Meeting, the Board approved the hiring of Somersett owner Nancy Kerry at $6,000/month to provide consulting services to the Board on Association management options (i.e., internal or outsourced managed). After much discussion, a motion to retain Ms. Kerry was passed on a 4:1 vote with Board member Hanson voting NO. The reader is referred to the SU post of April 18th entitled “April 14th SOA BOD Meeting Recap” Item 7.c. for a summary of these discussions.

From the Recap it can be seen that the manner in which Ms. Kerry was selected was not without controversy, and ending up being a contributing factor to Mr. Hanson’s subsequent resignation from the Board (see SU’s post of April 16th entitled “SOA Board Member Resignation”).

Following approval, the Board executed a Consulting Services Agreement with Ms. Kerry. The copy of which obtained by SU appeared to be inadvertently missing a couple pages. SU will post the Agreement when a complete copy is obtained.

Subsequent to her engagement, for the May 12th Board Meeting, Ms. Kerry provided a summary of work activities performed to date, with an expectation that a completed report would be available in time for the May 26th Board Meeting. A copy of the May 12th summary report may be accessed via the following link: “Analysis of Management Options – May 12th Report

The May 26th Board Meeting Packet for Agenda Item 6.b. “Update on Management Options Study”, contained a copy of the completed report referenced above, and may be accessed via the following link: “Analysis of Management Options for the SOA

The above 39 page report also includes five Attachments as follows: 1) Current Agreement between FSR and the SOA, 2) 2020 First Service Annual Report, 3) First Service Investment Rates Provided to the SOA, Caughlin Ranch 2020 Budget Summary, and 5) Vilage Management Software Price. None of which SU has included within the above link. However, given that Attachment 1 may be of interest to many, it can be accessed via the following link: “FSR Contract 2018-2021”. The other four attachments are available within the May 26th Board Meeting Packet.

The 39 page report contains a lot of useful information on Homeowner Association management options and comparisons between outsourced or internal management structures. Section VI “Recommendations” of the report addresses five Association management options, wherein Ms. Kerry dismisses two and recommends a “parallel” approach that moves on the other three. Thereby requiring additional work on the part of the Board and/or Consultant before a final decision is made.

Given the importance of this issue to the Association, readers are encouraged to read the report, form your opinions, comments or questions and express them at the May 26th Board Meeting.

May 26th SOA Board Meeting

hoa meeting 1

Following is the Agenda for the Somersett Owners Association (SOA) Board of Directors (BOD) Meeting to be held at The Club at Town Center (TCTC) at 5:30 PM on Wednesday, May 26th. Owner participation will again be via “Zoom” video conferencing. Video access instructions are available on the Meeting Agenda. Note that there are no “New Business” items scheduled, only updates on “Unfinished Business” from previous meetings.

May 26th Board Meeting Agenda

The Board Meeting Packet providing background information on some of the above Agenda items is available on the SOA Website (www.somersett.org) under the SOA Documents/Board Documents/2021 page links. Following is a listing of the May 26th agenda items with comments noted:

3. May 12th, 2021 BOD Meeting Minutes

The Board Meeting Packet referenced above contains a draft summary of the May 12th Board meeting minutes. However, for a more concise recap of what transpired, one is directed to SU’s previous post of May 17th entitled “May 12th SOA Board Meeting Recap”.

4. Committee Reports

4.a. Budget & Finance, 4.c. Strategic & Facilities, and 4.e. Community Events – Nothing to report for these Committees contained in the Board Meeting Packet

4.b. Communications – Reported that: 1) the new Zen Planner reservation system for the SOA is operational, 2) the photo contest is still in progress, 3) new owner surveys are planned, 4) Committee members are being solicited (interested?, email the Communications Committee at communications@sommersett.org and fill out the application form available on the SOA website under the “SOA Board and Committees/Committees/Application to Join” page links), and 5) seeking Board approval for the following  “SOA Community Website Advertising Agreement”. Note the proposed commercial advertising fees for SOA residents is $300 annually and for non-residents $400 annually.

4.d. West Park Garden – Reported that the fund raising sale of tomato plants, flowers and bulbs has been accomplished, no sales totals were contained in the report. Also, planning for 1) installation of containment fencing to keep out rabbits and other small animals, 2) a storage unit for tools and equipment, and 3) a message board to provide important information to the gardeners.

4.e. General Manager  –  The reader is referred to the Board Meeting Packet for the usual information and updates on: 1) AGC activity, 2) Community enforcement data, 3) Owner communications, 4) TCTC events and club usage data, 5) BrightView Landscape reports, and 6) Engineering project updates.

5. Financials – Apparently no financial reports for this Board meeting.

6. Unfinished Business

6.a. Legal Updates – Nothing new to report contained in the Board Meeting Packet.

6.b. Update on management options study – A very important issue for Somersett owners. for which SU will address  under a subsequent post entitled “SOA Management Options Study”

6.c. Snack Bar Update – Nothing new to report contained in the Board meeting packet.

6.e. Pool Reserve Parts Inventory Purchase – This item deferred from previous Board Meetings of April 28th and May 12th to look at other purchase options. The previous proposal from Lee Joseph Inc. (i.e. for miscellaneous heaters, pumps, fans, sensors) in the amount of $12.091.67 has been amended to $10,539.66 with the elimination of a no longer available pump and the identification of some long term delivery items. Still no update on options other than direct purchase from Lee Joseph Inc.

6.d. Discussion on Resolving the Status of the Open Board Seat – Item deferred from May 12th Board Meeting pending resolution on what constitutes a Board quorum if the position is left vacant. Although there was nothing contained in the Board Meeting Packet regarding this discussion, it has been ruled that that a quorum of Board members is determined by the actual number of Board members entitled to vote and not the number of seats available. Therefore, with four sitting Board members a quorum, per SOA Bylaws, would be 66% of four (2.64) or three Board members. Hence, SU anticipates that the Board will vote to leave the position vacant until the next annual Board member election.