Following is a summary of discussions and actions taken by the Board at the September 22nd Board Meeting. The Meeting Agenda may be accessed below:
September 22nd BOD Meeting Agenda
Comments follow with Agenda items noted:
Item 2. Homeowner Comments:
Two Owners submitted written comments on Agenda Items to be read into the record. These pertained Agenda Item 7.c “Review and Approval of Common Area Easement” and may be accessed via the following links.
September 22nd Agenda Item 7.c. Comment 1
September 22nd Agenda Item 7.c. Comment 2
Item 3. August 25th and September 8th 202 Meeting Minutes:
The Board approved the Meeting Minutes for both dates. However, for a more detailed recap of these meetings, the reader is referred to the following SU Posts:
September 8th SOA Special Board Meeting Summary
August 25th SOA Board Meeting Recap
Item 4. Committee Reports:
4.a. Budget & Finance – No written report submitted,. However, Board Treasurer Baker advised that the Committee recommended approval of the July 31st Financial Statements, which will be summarized under Agenda item 5 below.
4.b. Communications – See the following “Communications Committee Report”. No Board actions were required. However, the Board reaffirmed their position in support of the Committee to move forward in creating a list of Somersett residents willing to help others through the proposed Somersett Cares program. It was also reported that the Ad-hoc “Technology Review Committee” will have their report to the Board by September 30th. The Board President commented that the Committee will be issuing a series of communications to residents on submittal of assessment payments as a result of the Association transition to self-management.
4.c. Strategic and Facilities – See the following “Facilities Committee Report”. No update on specific projects, but a committee member commented on the new format (i.e., more complete information) the Committee would be using in providing project recommendations to the Board.
4.d. West Park Garden – See the following “Community Garden Committee Report”. In addition, a reminder of the Fall Social (Community picnic) being held at the West Park on October 7th, which will include live music, garden tour and the sale of food and drinks to raise money for the Community Garden.
4.e. Community Events – See the following “Events Committee Report”. The Board approved the Committee recommendation to modify the Committee Charter to increase the number of members from 9 to 12. The Board also approved issuance of a Credit Card ($5,000 limit) for use by the Committee for the purchase of incidental items associated with planned events, citing timeliness issues. This was passed on a 3 to 1 vote, with Board member Baker dissenting on the basis it should be part of a broader Purchase Card Program that would have to be implemented as part of the transition process.
4.d. General Manager – The SOA General manager, Ryan Fields, reported that regarding the upcoming Board of Director elections, zero candidate Statements had been received (Note: this provided the basis for SU’s previous post of September 23rd “Urgent Call for SOA Board of Director Candidates”. Also reported that with regard to Agenda Item 7.d. “Approval of Common Area Turnover from Ryder Homes”, a walkthrough with BrightView was performed with the observation that all punch list items had been completed. Three dead trees and two dead shrubs were noted.
Item 5. Financials:
The Board approved the July 31st financial statements. Financial summaries as of July 31st were reported as follows:
- Total Operating Cash of $2.31M ($1.4M Common Area and $834K TCTC)
- Total Reserves of $8.03M ($2.78M Common Area, $1.55M TCTC and $3.7M Private Gates)
- Total Debt of $4.0M ($3.2M Common Area and $839K TCTC)
- Revenues vs Expenses ($716K excess revenue over expenses for Common Area and $193K excess revenue over expenses for TCTC).
The Board Treasurer, Simon Baker, recommended that the Board consider applying excess revenues to paying down the debt. There was also some discussion on the use of reserves to pay down the debt that reached no conclusions.
Item 6. Unfinished Business:
6.a. Legal Updates – A placeholder agenda item, nothing new to report.
6.b. 1880 Dove Mountain – The owner at 1880 Dove Mountain met with the Board in executive session to discuss his concerns about this hillside stabilization project adjacent to his property. Apparently, the engineered solution has been completed and the Board is now awaiting a sealed bid from Parsons Bros. for the required work. Given that only one bid is being received, the intent is to open the bid prior to the next Board meeting and use the Unanimous Written Consent process to expedite approvals due to time constraints.
6.c. SOA Management Consultant Update – Another placeholder agenda item no longer required given that the analysis and decision to transition to a self-managed organization has been completed. The Management Consultant, Nancy Kerry, is now employed as the “Transition Coordinator” and future updates (general or specific) will be discussed under this category.
6.d. Agreement with Village Management Software – This agenda item was tabled for discussion in order to consider it along with other transition item approvals later in the meeting. Although not specifically addressed, the VMS software agreement was essentially approved as part of the approved Transition Plan.
Item 7. New Business:
7.a. Review and Open landscaping Bids and Proposals – Three Bids were received. Price points for each are summarized below:
- Brightview submitted three options covering years 1, 2 and 3 priced as follows: Option 1 – $1.254M, $1.304M, $1.357M. Option 2 – $1.468M. $1.527M, $1.588M. Option 3 – $2.101M, 2.185M, $2.272M.
- Reno Green submitted a bid priced at $132,192/month capped at $1.574M annually
- Reliance Grounds Management bid was priced at $117,994/month capped at $1.297M annually
Due to the complexity of the proposals and the differences associated with scope, price adders and credits, the preceding price points could not be compared on a strict “apples to apples” basis. Hence they were referred to the Facilities Committee for further analysis and recommendations.
In response to a question on what the SOA was currently paying, Simon Baker advised that the 2021 budget was $1.13M. Based on the received quotes, the proposed 2022 budget of $1.2M will obviously require an increase.
7.b. Review and Approval of 2020 Audit – The 2020 Audit Report prepared by Hilburn and Lein CPA’s was approved.
7.c. Review and Approval of Common Area Easement – This item pertains to an owner request for the SOA to grant an exclusive non-revocable easement to SOA property adjacent to the rear of his lot. After much discussion the approval was tabled pending further discussion with the requesting owner on property worth and insertion of a revocability clause.
7.d. Approval of Common Area Turnover from Ryder Homes – It was determined that no action was required at this time. Apparently, Ryder has already deeded the land over to the SOA (i.e., without SOA involvement) and there was a question as to the ramifications a formal approval would have on the current lawsuit between Preston Homes and Ryder in which the SOA is also included.
7.e. Review and Approval of SOA Management Staffing and Transition Plan – The SOA Transition Coordinator, Nancy Kerry, conducted a PowerPoint presentation to the Board summarizing current status of the action items required in the transition to the self-managed Association. This was basically a summary of items and responsibilities from the following “SOA Transition and Salary Plan” report included in the Board Meeting Packet. It concluded with the following requested Board actions:
- Discuss and Consider Approval of the Transition Plan – Transition Plan Approved
- Discuss and Consider Approval of the Salary Schedule – Approved salary schedule and issuance of offer letters.
- Discuss and Consider Unique HR Solutions or other Benefit Solutions – Approved moving forward with Unique HR as the Association’s new HR and Payroll Services provider.
- Discuss and Consider Opening New Bank Accounts at CIT – Approved the opening of operating fund bank accounts at CIT
Note: It is anticipated that the referenced PowerPoint presentation will become available on the SOA website (www.somerett.org) under the “Future of Management in Somersett” page, or by accessing the meeting videoconference file at:
Use Access Passcode: 649*U%jQ
7.f. Review and Approval of Consulting Agreement with Lorrie Olsen – The Board approved the hiring of Ms. Olsen (at $1500/week) to provide her expertise and assistance in the transition process to a self-managed Association. See the following: “Agreement for Consulting Services”.
7.g. Proposal to install Divider netting Between Tennis Courts – The Board approved the expenditure of up to $3000 to install a divider net between the two Tennis Courts at the Town Center.
Item 8. Board Member Comments:
- The next SOA Board Meeting is scheduled for October 13th.
- Apparently the Board will not be holding open interviews for the Community Manager position, as the Board President, Mark Capalongan, announced the Boards intention to hire Nany Kerry as the SOA’s first Community Manager. This should not be a surprise to many, as it has been evident from the beginning, despite any comments to the contrary, a pre-ordained outcome.
- Board Member O’Donnell criticized FirstServices Residential for their refusal to provide the SOA with employee information required of the new HR and Payroll Services provider. Also, commented on a couple of unacceptable FSR employee actions at SOA’s expense. It was clear that Mr. O’Donnell is seeking better cooperation between the parties as we move through the transition process.
- Board member Simon Baker announced his impending departure from the Board due to his moving out of Somersett, and in doing so acknowledged the hard work and the positive direction the current Board members were taking the Association. The other Board members responded with the well-deserved kudos for his service. Mr. Baker’s service as the Association’s Treasurer will be sorely missed and hard to replace.
Item 9. Homeowner Comments:
- A The Cliffs owner presented the Board with a list of issues the Board needs to consider before any turnover of Common Areas are effected. The Board advised that Tholl Bros. has been upfront with the SOA in requesting and identifying any issues the SOA may have, which is in process. It was noted that some of the SOA identified issues coincide with what the owner presented. Also, that Tholl Bros. has a performance bond with the city that cannot be released until all landscape requirements are met.
- An owner concern that if the SOA website is managed by FSR how will their departure affect it. Response was that the SOA website is managed by a third party and will not be affected by FSR’s departure.
- Given that the Canyon9 Golf Course has a different landscape contract from the balance of the SOA, could money be saved by including it within the SOA landscape contract. Response being that the problem is that they have different expiration dates.
As always, SU apologizes for any misrepresentations or errors associated with the above recap, especially in paraphrasing Board Member or Owner comments.