PONDEROSA COMMUNITY CLUB
BOARD MEETING MINUTES
February 14, 2009
President Bill Griffin called the meeting to order at 10:30 AM. Board members present were Jeanne Whitlow, Peter Smith in attendance via phone connection, Gina Wilkins, Association Manager Mary Cox.
Bill reported to the Board on the results of a Board Executive Session phone conference held on Jan. 14, 2009. The Board made the following decisions:
- To file a lien against a Chelan County owned lot and to empower Mary Cox, Association Manager, to negotiate and discuss options with the County Commissioner. The lien will be filed if Mary determines it is needed to preserve the interests of the Ponderosa.
- That when the Board accepts a committee’s budget request which is made in broad terms, and the members approve the the budget, the Committee has the authority to use that money as it sees fit in order to forward the Committee’s purposes. There are two conditions: The Committee Chair is expected to keep the Board Trustee assigned to that Committee informed of decisions and progress in addition to the publication of committee Minutes; and the committee’s decisions must remain within the general policy guidelines established by the Board. If a new situation arises, the Committee must seek policy guidance from the Board.
- That a known conflict of interest between the personal interests of a member and the interests of the Ponderosa shall not disqualify a member from running for election to the Board.
Bill announced the resignation of the Board’s secretary, Mike Buck. Mike’s employer has added tasks in his teaching occupation and Mike is no longer able to continue on the Board. The Board is looking for another member to serve on the Board and fulfill the term until May.
Currently, four of the Board members terms expire in May. Therefore, the Board is soliciting members to serve in the coming board term. Bob Houze, Ombudsman, has agreed to run for Ombudsman in May.
Treasurer’s Report: Peter Smith
For the calendar year of 2008, an unaudited review of statements of assets, liabilities and income is posted on the website for members review The 2008 Budgeted amount for expenses was $301,313. We spent $308,398.51, which is 2% ($7000) over budget due to increased insurance costs and increases in payroll because of the heavy snowfall and a major water system pump problem in 2008.
Year to Date: In January the Ponderosa spent $28,059.02 for Maintenance & Operations which brought us to 8% of budget. $4000.00 was spent for snowplow repairs. The Ponderosa paid the first quarter’s L&I tax.
- Lien: A lien will be filed on the Chelan County owned lot. The lien will be filed if the Association Manager determines it is needed to preserve the interests of the Ponderosa.
Foreclosure: The Ponderosa will start foreclosure on another member’s lot.
Diane Johansen inquired as to the location of the property where foreclosure has started. Bill responded that the Board handles real estate issues in Executive session because of confidential items in negotiations. The Board has many issues to discuss when any foreclosure takes place. Eventually, foreclosures are put up for bid at a Sheriff’s sale. Upon the sale of the property, the Ponderosa collects back dues and assessment as well as attorney fees. Bill asked Terry Drexler to send any information he has regarding a foreclosure countersuit on Palomino to the Board.
Bill Griffin reminded that problems in the 2008 Budget had been predicted to show up in the 2010 Budget which we will begin discussing in the April meeting. He handed out a Cash Shortfall Analysis indicating that our M&O Bank Account balance had $23,045.49 less than it should have had in it at the end of 2008. Upon cursory inspection, Mary Cox suggested that the $30,131 in the M&O Reserve Fund may have been accounted for twice, and that there may be no shortfall. Bill will re-examine the analysis and bring it before the Board at our March meeting.
Bill Griffin and the Association Manger will review the banking accounts figures in regards to unused M&O reserves and incomes from interest, rentals, water hookups, and penalties to determine the amount of money that is to be credited back to members and deducted from dues and assessments.
Bill asked Mary to estimate the amount of M&O reserve needed to maintain an adequate cash flow until the dues and assessments begin to flow in each year. Mary Cox stated that of the 497 invoices mailed to member, 274 payments have been received. Since it is not yet Feb 15, she is waiting for further payments to come in.
Mary explained the billing process to members present. There is an estimated 2.5% delinquency in collection of M&O dollars; the Ponderosa needs these dollars to operate. Therefore, the budget has a built in factor that is absorbed by dues paying members. Once these back dues are actually collected, the Ponderosa will show this as a credit to the members in the following year’s budget. Budgets depend on projected operational expenses.
Association Manager: Mary Cox
Mary asked for the Board’s input regarding allowing members to rent the Clubhouse for generating revenue. The Board’s initial response was to not allow the Clubhouse’s use for this purpose. This matter will be further considered at the March meeting.
A fire occurred in the Caretaker’s house when the clothes dryer caught fire. The Caretaker, Ken, put out the fire and no one was hurt. Faulty wiring caused the fire. Beaver Valley Electric completed the necessary repairs.
Mary researched the Ponderosa FDIC account coverages: Bank of America, $340,000.00; Cashemre Valley Bank, $361,000.00. These amounts are higher than the guaranteed limit of $250,000.00 in each account. The Board decided to move monies to other banks to keep within the $250,000.00 protected limits. Much of our money is in CD’s. Bill asked Peter and Mary to work together to move and protect the Ponderosa’s money.
Mary asked Paul Johansen about the need to replace the Ford 250 pick-up which has over 400, 000 miles and will require continuous work to keep it reliable. Paul recommended that we keep the existing pick-up as a backup, sell the Yukon, and purchase a newer pick-up prior to next winter. Mary will present a plan to the Board for action on this matter.
Mary reported that the PUD plans to continue the installation of high speed internet in areas already under construction including the Ponderosa. In mid-to-late March, connections to homes will begin. Connections will either be made overhead or through existing conduit in underground connections. The Ponderosa can also get phone and TV on the high-speed connection. The PUD’s website lists all the providers available https://fiber.chelanpud.org/euedu/ Mary is to provide the Board with the fees necessary to connect the Ponderosa office and Clubhouse to the fiber optics system. This system will facilitate additional alternatives for communication within the Board and with members.
Riata: Heavy rains and new construction on the hillside above Riata caused a washout on the road. Several agencies are involved in the effort to find a solution to this problem: The Department of Ecology, Dept. of Natural Resources, and Chelan County Planning. Developers are involved along with landowners who purchased lots from the developer, and Ponderosa residents impacted by the washout. The Board has sought legal advice. The Board is also seeking advice from a city planner who deals with these issues. A check is being made to see whether the developer met planning permit requirements. Ponderosa has spent about $8400.00 for repairs with a predicted further $3000-5000.00 being needed to complete repairs in the spring. The board plans to seek damages from the parties responsible for the damages and to prevent this from happening in the future. The Board will continue to consider legal options.
Two of Riata’s property owners complained that the upper part of Riata was not plowed this winter. They asked the Association Manger to maintain snow removal on Riata. The Association Manager will review the situation.
A Riata property owner with three lots stated that two lots were unbuildable, and he would prefer to put in his own well and not be billed for the replacement of the Ponderosa waterline. He does not believe he should pay dues and assessments on the unbuildable lots. The Board asked him to consult the county on whether they would relieve him of paying taxes on the property. If, he can present these findings, the Board will consider his proposal.
Maintenance & Operation: Jeanne Whitlow
Bill Schmidt, water engineer, has developed a 25 step plan for replacing the Ponderosa H2O lines. He has listed priority areas including a cost spreadsheet for the project. The engineer feels it is crucial to replace the ones in steps one to ten. Because the drawing of the plan is large, it will be posted in the Clubhouse window for members to view. Bill Schmidt has offered to provide an informational seminar in the future for the Board and the membership. The Board plans to inform the membership of financial options available and to seek member input after articles are published in the NEEDLER. Jeanne has contacted the state for financial assistance. The Ponderosa is planning a five or ten year budget with a starting date of 2010 for the project. Currently the State does not require individual water meters on our lots, but that could change at any time through legislative action. It’s in our plan to install vaults for potential meter requirements.
Diane Johansen requested a $75.00 payment for a vacuum cleaner that a previous Association Manager agreed to purchase for the Clubhouse. Bill Griffin directed the Association Manager to handle this.
Jim Blanchard inquired about signage in the Ponderosa. Bill Griffin stated that the Board has no authority over private property. Property owners are under the county regulation. Chelan County does not allow signs on trees; they require posts. If a member has an issue with signage, the member should take it up with the Ombudsman. The Ombudsman, Houze indicated that the Ponderosa is not in compliance with all the sign we have on trees. Bill asked the Association Manager to see that Ponderosa signs are placed on posts. This will be done in the spring when the ground has thawed and posts can be put in. Paul Johansen suggested that the Board include sign regulations in the Operating Procedures. Bill stated that he has submitted an article for the NEEDLER regarding signage.
Bill adjourned the meeting at 12:00.
Gina Wilkins (acting secretary)