Somersett West Park and Seventh Trailhead Update

The property for the Somersett West Park and Seventh Trailhead has now been deeded to the City of Reno by the Somersett Development Company (recorded on 03/26/2013). Under the Park Development Agreement, the City will construct the Park and Trailhead when sufficient new residential construction tax fees have been collected. As reported in the previous blog article on the Somersett West Park this will require approximately 900 building permits within the Park District that includes Somersett. Regarding Park design, the Park Development Agreement contains the following provision:

“In accordance with the Parks Agreement, Master Developer has submitted to the City and to the SOA and the City and the SOA have approved design drawings (“Designs and Specifications”) for the Seventh Trailhead and West Park. The Designs and Specifications have also been approved by the City’s Recreation and Parks Commission. The City will build the Seventh Trailhead and West Park substantially in conformance with those Designs and Specification plans and will be responsible for final designs: however, City shall have the right make reasonable modifications to the Designs and Specifications, so long as they are in the public interest.”

The approved design for the West Park is based around a “Community Garden” concept. However, many Somersett residents have expressed an alternate “Dog Park” concept. There are other opinions as well. Since it appears that significant time will pass before the City has the funds to proceed with construction, residents have time to influence the final design so that it best serves the” public interest”. Note that this will be a public park accessible by all, not just Somersett residents.

The newly formed SOA Strategic Planning Committee has recently included the Park concept as a discussion issue. SU encourages all residents to voice your opinions to this Committee, whose members are as follows:

Chuck Walker – Chair
Beverly McDowell – Vice Chair
John Hetz
Rob Morrison
Paula Leasure

Since individual or group contact information is not published on the Somersett website for Strategic Planning Committee members, one can submit comments via email to soa@mysomersett.com . Another option is to submit to the SOA Communication Committee at communications@mysomersett.com.

D’Andrea Golf Course Auction

The D’Andrea Golf Course in Sparks, which has been in foreclosure, sold at auction for $1,000,000. The Buyer was InSymphony Private Capital, LLC. This is the same company that loaned the D’Andrea Golf Holdings $5,000,000 in 2004 for Golf Course construction. Another bid for $1,100,000 was apparently rejected due to non-qualification. No public announcement has been made as to what the Buyer intends to do with the property.

SOA Reserve Funds Analysis

Money Changing Hands
Courtesy of freedigitalphotos.net

Submitted by Ed Hardy

A “MEMORANDUM ON THE STATUS OF SOMERSETT OWNERS ASSOCIATION RESERVES“ was prepared by Somersett Owners Association (SOA) resident Ed Hardy and submitted to the SOA Board of Directors (BOD) and Budget Committee for consideration in further actions regarding reserve funding. It is the BOD’s responsibility to unit owners to insure that upon Developer (Somersett Development Company) transition, the BOD review the reserve funding, as well as any other Developer subsidies and verify that any amounts due from the Developer are paid. Mr. Hardy’s assessments and conclusions are his own based on Reserve Reviews prepared by the Browning Reserve Group for the SOA. The intention of the Reserve Reviews being to forecast the SOA’s ability to repair or replace major components as they wear out in future years.

It should be noted that Mr. Hardy is a CPA whose professional background includes public accounting experience and Financial Management/Controller positions at major corporations..

Mr. Hardy’s memorandum addresses the following:

  • Responsibilities of the Developer with regard to funding of SOA Reserves at the transition to homeowner control.  This in compliance with Nevada Law governing Common Interest Communities.
  • A summary of the Fully Funded and Actual Reserve Balances as of December 31, 2012.
  • Transfer of funds from the SOA Capital Contributions Account to the SOA Reserves by the previous BOD. There is some question whether this transfer was permissible under the SOA CC&R’s.
  • Adequate funding of SOA Reserve Accounts, including discussions on fully funded amounts, methodology, estimated reserves and % funding levels.
  • A summary of the Fully Funded and Estimated Reserve Balances for the 2013 fiscal year.
  • Conclusions on SOA reserve status and potential monies owed to the SOA by the Developer.

In his memorandum, Mr. Hardy notes that the SOA maintains three separate reserve funds:  1) General Common including Canyon 9, 2) The Club at Town Center, and 3) Streets & Gates.  Separate reserve studies are prepared for each of these reserve funds.  Homeowner assessments include designated amounts for each reserve, which are accounted for in separate fund accounts.

The Fully Funded Balance and Actual Reserve Amounts as of December 31, 2012 for each of the above areas were as follows:

General Common including Canyon 9

Fully Funded Balance:  $1,305,434    Actual Reserve Amount: $886,471    Funding Level:  68%

The Club at Town Center

Fully Funded Balance:  $1,226,028    Actual Reserve Amount:  $607,870    Funding Level:  50%

Streets and Gates                                  

Fully Funded Balance:  $1,694,241    Actual Reserve Amount:  $1,572,322    Funding Level:  93%

The above summary indicates that the General Common Area and The Club at Town Center are inadequately funded.  Also,  if the final Audited Actual Reserve Balances as of December 31, 2012, total $3,066,663, the Developer will be required to turn over to the SOA $1,159,040 to Fully Fund the Reserves (i.e., the difference between the total Fully Funded Balance of $4,225,703, and the Actual Reserve Amounts totaling $3,066,663). 

Mr. Hardy’s complete document may be accessed by clicking on the following link: MEMORANDUM ON STATUS OF SOA RESERVES

February 26, BOD Meeting Report

Somersett
Somersett

Reference: February 26 BOD Meeting Agenda

The following are results from the February 26 Board of Directors Meeting.

Vue Subdivision Lots – The 39 Vue lots acquired by the SOA due to a foreclosure process have been sold. Contract was signed by the BOD and the Buyer is in process of exercising his 45 day due diligence process. At a previous BOD Meeting it was reported that this sale will make the SOA whole with regard to monies owed to the SOA by the Developer.

Transition Committee Item – A consultant was hired to inspect SOA physical facilities as a Developer turnover item. The submitted report revealed items needing repair, estimates are being obtained.

Somersett Entry Landscaping – A landscape architect was engaged to develop a more comprehensive plan and associated costs for re-landscaping of the entry roadway into Somersett. That is, not just the ditch area, but the median and opposite roadway strips as well.

Active Litigation – Arbitration/Trial Dates have been set for the following SOA Litigation items:
Moana Nursery – Main Line Irrigation System Installation Defects – November 4
Angius & Terry – Past Due Assessments Collections Dispute – May 21
Homeowner Complaint – Drought Tolerant Landscape Provisions – April 22

“Northgate” Owners Easements – Action by the BOD regarding granting of variances to permit Whisper Rock Way residents to access adjacent “Northgate” land they purchased and subsequently incorporated into their Somersett property has been postponed. This pending meetings with affected owners for discussions on an Easement Agreement proposed by the SOA BOD (i.e., that the acquired property will adhere to the same guidelines as their Somersett property).

SOA Committees – Charters and Committee Members were approved for the Communication, Budget & Finance and Strategic Planning Committees. The $10K budgeted for 2013 to hire a strategic planning consultant was been placed on hold pending coordination with the Strategic Planning Committee.

For those interested in Committee Members and Charters, please access the Somersett Website at http://www.mysomersett.com, perform a member log-in, and click on the SOA/Contact Info tab.

Service Contracts – 2013 contracts for Common Area Landscaping (Groundskeeper), Association Management (RMI), and The Club at Town Center Landscaping (SGCC) were approved. Along with other minor contracts.

Welcome Center – The Rental and Lease Agreements with Dickson Reality for space in the Welcome Center was terminated. Purpose is to make more space available for resident use.

$200K TCTC Reserve Funding – The $200K in TCTC surplus funds (holdover from monies previously budgeted for 2012 purchase of land adjacent to TCTC), which was approved by the previous BOD to be applied to the TCTC Reserve Funds was reversed. Apparently for the following reasons 1) there is insufficient cash to deposit in the Reserve Fund at this time, and 2) the new BOD would like to assess if this represents the best use of these funds.

SGCC Lease Agreement – The SGCC has approached the BOD with the idea of providing an alternate amenity (or amenities) to the 18 hole putting course, which is required by the Lease Agreement to be delivered by the SGCC no later than June 30, 2013. Ostensibly to insure that whatever is provided represents best usage by Somersett residents. Alternate amenities being suggested include a Pickleball Court, a Multi-Purpose Field and/or some indoor amenity. BOD members Fakonas and Kirby were designated to negotiate with the SGCC in this regard. Due to timing issues it is plausible that whatever is ultimately decided upon could extend the June 30 delivery date.

Note: Pickleball is a cross between Ping Pong, Tennis and Badminton. It is played on a 20 ft. by 40 ft Court, with a 34 inch net, an oversized ping pong paddle and a baseball sized whiffle ball.

Somersett West Park Poll

Courtesy of FreeDigitalPhotos.net
Courtesy of FreeDigitalPhotos.net

The Poll regarding usage options for the Somersett West Park has been closed. One hundred sixty-five (165) votes were received with the following results:  50% favoring a Dog Park, 30% for a Community Garden,18% for Sports Field and 2% for a Skate Board Park. From the results it appears that the current concept of a Community Garden is not necessarily the favorite theme of most Somersett residents. However, given the size of the Park, perhaps both a Dog Park and a Community Garden can be accommodated.

Since funding for the Park by the Reno Parks and Recreation Department appears to be a long way off, the SOA BOD has sufficient time to solicit and consider resident preferences and negotiate with the Parks and Recreation Department accordingly. Hopefully this will occur in a resident participant format prior to start of construction.

Courtesy of freedigitalphotos.net
Courtesy of freedigitalphotos.net

Thanks to all residents who participated in the poll.