October 17 th and October 24th SOA BOD Meeting Recap

See the following link for the October 2018 BOD Meeting Agenda:  October 17th BOD Meeting Agenda

No update on any Old Business Items were presented. A summary of the New Business Items discussed and/or approved were as follows:

 

  • Item 7.a – Management Proposals – Opened bids from six companies submitting proposals for managing of the SOA Master Association. That is, the service currently being provided to the SOA by FirstService Residential. It turned out that the various bids were very complex, diversely prepared and not comparable on an apples–to-apples basis. Decision was made that additional time was required to analyze each and prepare a “spreadsheet” wherein the different elements could be captured, compared and evaluated. This was accomplished via workshops and a subsequent open meeting held on October 24th to further discuss and vote on the issue. Bottom line was that, due to the manner in which the various Management Companies do business, and quote services, it was still difficult to evaluate and compare costs. Given that the FirstService Residential proposal was deemed overall competitive and not significantly more than what was perceived as the low bidder, all Directors voiced support for approval of the FirstService Residential proposal. Main reason being satisfaction with FSR’s performance to date and to maintain expertise and continuity on the significant issues facing the SOA in 2019. Contract is for three years with cancellation provisions.
  • Item 7.b Insurance Renewal Proposal – Unanimous ratification of previously approved proposal from LaBarre/Oksnee Insurance at an annual amount of $68,120. Essentially a renewal of the existing policy.
  • Item 7.c – Employee Bonuses – Per Agreement with FSR, the SOA’s annual budget contains an amount for FSR employee bonuses based on performance. the approved amount for 2018 was $33,500. However, it was noted that actual payout will be significantly less due to turnover and open positions.
  • Item 7.d – Snow Removal Proposals – Signature Landscapes Inc. was awarded the snow removal contract for the Town Center and Reno Green for all other Common Areas requiring snow removal services. Both contracts are based on hourly rates for manual labor and equipment operation. Contracts awarded correspond to Signature Landscapes’ and Reno Green’s current landscape maintenance contracts for the Town Center and Common Areas respectively. Both proposals were unanimously approved.
  • Item 7.e – Holiday Lighting Proposal – Proposal from Lawn Express Landscapes LLC for Holiday lighting of the Somersett Parkway entrance cottage and six round-abouts was rejected on a 3 to 1 vote. Proposed amount was for $21,500, which included $10,500 for additional LED lights and $11,000 for installation and removal services. An alternate proposal to light the entrance cottage and round-abouts using existing lights only and approve the $11,000 installation and removal services, was rejected on a 2 to 2 vote. A separate proposal to allocate $2,300 for Holiday lighting of the TCTC using existing lights was approved.
  • tem 7.f – Newsletter Contract Proposal – The proposal from Just Imagine Marketing to continue publishing the bi-monthly Somersett Living Magazine was unanimously approved. Publishing of this magazine does not cost the Association any money. Publisher makes its profits from third party advertising.
  • Item 7.g – Back Nine Trail Median Modification – A request from Toll Brothers to remove a portion of the median on the short section of Back Nine Trail north of the Somersett Parkway was unanimously approved. This to preclude damage from construction truck traffic accessing the new Toll Brothers development. Apparently, Toll Brothers will be extending Back Nine Trail as an access road to the development. All costs associated with the median modification to be paid for by Toll Brothers, including future replacement if so requested by the SOA.
  • Item 7.h – The Greens at Somersett CC&R’s – “The Greens at Town Center”, is a proposed project consisting of ten townhouses on ten parcels plus a common area to be built on the empty 34,900 sq.ft. lot adjacent to The Club at Town Center and the Canyon9 Golf Course Hole #1. This development will have its own set of governing CC&R’s, which were submitted to the SOA for review and approval. Unanimously approved.
  • Item 7.i – 2019 General Common, TCTC, Town Square & Gates Budgets – The 2019 operating budgets for the four SOA cost centers were unanimously approved. Budgets were essentially the same as was presented at the October 4th Homeowner Budget Presentation Meeting. The good news is that the proposed 2019 operating budgets are not significantly different from 2018. Therefore, monthly assessments for these areas will remain the same. That is: General Common Area at $92.00, TCTC at $89.00 and Privates Gates at $54.00 . These assessments should not to be confused with the one time Special Assessment discussed under Item 7.k below. Revenue and Expense items associated with each of the cost centers may be accessed via the following link: SOA 2019 Operating Budget
  • Item 7.j – 2019 General Common, TCTC, & Gates Reserve Study Updates – The Board unanimously approved the Browning Reserve Studies for each of the cost centers. Bottom line is that the TCTC and Streets & Gates Reserves are adequately funded, whereas the Common Area is significantly underfunded. The Common Area reserve depletion below acceptable levels was the result of 2018 repair costs associated with Rockery Wall failures. It has been estimated that an additional $3.7M may be required for Rockery Wall repairs in 2019 and beyond, hence the need for the Special Assessment.
  • Item 7.k – 2019 Special Assessment and Payment Schedule – The proposed 2019 Special Assessment of $1200 per unit owner was approved. First payment of $600 will be assessed on January 1, 2019, due no later than January 31st to avoid late payment fees. Second installment of $600 will be assessed on June 1, 2019. Owners may pay the full amount in advance if so desired.