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FIELDCREEK ESTATES BOARD OF DIRECTORS MEETING Wednesday, May 5, 2004 Wolf Run Golf Club, Founders Room 1400 Wolf Run Road, Reno, Nevada MINUTES OF MEETING Present: David Collier (President), Leonard Distaso (Vice-President) Gary Valiere (Secretary), George Toto (Director), Bob Canter (Treasurer) Absent: None Also Present:
B. J. Brown (EBMC), Pamela Fox (to take Minutes) I. CALL MEETING TO ORDER/ROLL CALL President Collier called the meeting to order at 5:35 p.m. with a full quorum present. II. MEMBERSHIP FORUM There were no members who desired to speak. III. MINUTES A. Review and approve February 4, 2004 and March 24, 2004 Minutes-There were no changes to the February 4, 2004 Minutes. Bob Canter moved to approve the February 4, 2004 Minutes. Gary Valiere seconded the Motion. Motion carried unanimously. The following changes were noted to the March 24, 2004 Minutes: (a) Under VIIB, change the resident’s name to Jastrow; and, (b) under VIIB, change the wording in the motion to state: “Bob Canter moved to appoint David Collier to the unexpired portion of the two year term which Mary Wilkinson had vacated. Mr. Collier’s term would then expire in May 2005.” Bob Canter moved to approve the March 24, 2004 Minutes as corrected. Gary Valiere seconded the Motion. Motion carried unanimously. IV. FINANCIAL REPORT A. Review and approval December 2003 Financials, January, February and March 2004 Financials – These reports had been received by the Board members. 1. December 2003 Financials - Board member Canter stated that the year ended with a surplus amount in the amount of $26,679. This was based on an increase and forecasted revenues in the amount of $3,978 and a decrease in projected expenses of $22,700, of which $7,000 was budgeted for contingencies. Board member Canter requested to know if any of the Board members had questions on any of the line items listed in the report. President Collier requested to know if the reserve account amount was adequate. Board member Canter replied that a new reserve study was recently completed. Based upon the accumulation of unexpended operating funds in prior years, it is believed that the $l50 due structure will be adequate for the next four to five years. He reported that that the reserve contribution amount did increase from $657.70 to $3,608 for this year. Board member Canter stated that while this is a large increase, the association is in good shape. He reported that an amount of up to $20,000 is expected to be placed in the contingency operating fund and that the only known funding from the contingency will be the reserve account. Board member Canter stated that it is anticipated that the association may experience a negative cash flow in 2007 or 2008, in terms of budget versus income, based on the current due structure. Gary Valiere moved to approve the report. Leonard Distaso seconded the Motion. Motion carried unanimously. 2. January, February and March 2004 Report – Board member Canter reviewed the financial items received by the Board in their packet. He stated that the there was one item which had been sent with a place holder. The March Financials should be placed in this location. These were received on Monday. Board member Canter reported that the collection of assessments is doing well. Of the projected amount of $58,050 in terms of the total budget for Fieldcreek Estates; $56,550 has currently been collected. Board member Canter reported that ten Fieldcreek Homeowners owe assessments totaling $l,500. He reported that nine Fairway Homeowners owe $l,350. There is at least one Fairway Homeowner who also owes for 2003 dues. Collection action is proceeding relating to this matter. Board member Canter reported that all funds, with the exception of the operating fund, had been moved to Heritage Bank to satisfy the FDIC requirements. He reported that the anticipated fund in the Heritage bank will be approximately $101,000. Of this amount, between $41,000 and $42,000 are construction deposits. The construction deposits are expected to decrease. This is due to the fact that there are few lots remaining open to build on; therefore, there will be a gradual diminution of that account. It is expected that the total funds on deposit in Heritage Bank will fall well under the $l00,000 FDIC requirements. Board member Canter pointed out that $350 for landscape review fees had been collected, but that there was no budget for this item. He explained that all of the architectural review fees had been budgeted under the architectural review category. President Collier requested to know if the $350 should be rolled into this account via a journal entry. Board member Canter replied that the year-end adjustments had not yet been made, and that the year-end financial reports were not received until the end of February 2004. He stated that, for this reason, the Balance Sheet for the first quarter 2004 requires correction. Board member Canter reported that EBMC is currently hiring new staff that will be responsible for the Fieldcreek Estates account. He stated that this was a significant loss and that it would result in a slight backup while new employees were trained. B. J. Brown, EBMC, announced that a new employee had been hired for one of the positions, and that the Fieldcreek Estates training would be the new employee’s main focus. Ms. Brown reviewed the training which includes tracking violations. President Collier requested to know the software program used for tracking. Ms. Brown replied that the software program YARDI is used. President Collier requested to know if these reports would be adjusted. Board member Canter replied that they were the final version and that adjustments, such as journal entries, will be made in the May 2004 time period. At that time, the balance sheet will reflect correct balances, which include the 2003 year-end adjustments. Board member Canter explained the reason for completing the adjustments in May, rather than adjusting them at the end of the fiscal year. He stated that at the end of the adjustments, a sixteen cent discrepancy will still exist. He reported that exhaustive efforts have been made to locate this amount; however, the cause is unknown. A short discussion followed. Leonard Distaso moved to approve the financial report. Gary Valiere seconded the Motion. Motion carried unanimously. V. COMMITTEE REPORTS A. Property Managers Report-B. J. Brown was in attendance to present this report. She stated that reported violations are currently being followed up and announced that the annual information had been compiled for the upcoming meeting. She stated that there were a few errors in the annual information which related to items which were inadvertently omitted. Ms. Brown reported that the information has been mailed out. She reported that the administrative and file systems have been updated and are ready for this year. Board member Canter discussed the receipt of the financial reports which are sent to the Board. He stated that under NRS 116.3108.63, subparagraph 6, the financial reports are required to be sent to the Board every quarter. He stated that it was not clear if a full set of financial reports are required under this statute, or if a more summarized version would meet the statute requirements. Board member Canter stated that the current reports include bank account reconciliations, accounts receivable, balance and income statements, comparison budget cash reports, and backup material. Gail Kern, attorney for Fieldcreek Estates, read the requirements from the statute and stated that these are the requirements, unless Fieldcreek Estates regulations require more stringent reporting. She stated that, in her opinion, the current financial package provided to the Board, was required. Board member Canter reviewed the system he used to complete the bank reconciliations. He stated that this system takes time to complete and commented that the new treasurer will need to make time to complete this work. He stated that many times, errors are discovered. He cited an error of $l50 which was received from a Fairway homeowner and was deposited into the wrong account by EBMC. This error is being corrected by writing a check from the account where it was incorrectly deposited for deposit in to the correct bank account. He commented that this error was discovered in March, but took approximately three months to correct. President Collier requested to know if Board member Canter normally meets with an EBMC employee relating to the reconciliation process. Board member Canter stated that, in general, he will e-mail his questions to EBMC and they will reply with the needed information. He stated that this process normally clears up matters; however, on rare occasions, he will sit down with EBMC staff and review the material. He cited an example of an error generated by an escrow company and stated that this type of error occurs over and over again with some escrow companies. B. Architectural Committee Report-There was no-one in attendance to present this report. C. Welcome Committee Report-Board member Canter reported that a report from Welcoming Committee Chairperson Leusing had been provided in the Board package. Board member Canter reported that Chairperson Leusing does an excellent job of shopping for items for the welcoming baskets. Each basket has an approved cost of $20. He stated that many thank you letters have been received for the baskets. Board member Canter reported that Port of Subs provided some individualized invitations for free sandwiches. A Board member requested to know how many individuals served on this committee. Board member Canter replied that this was a committee of one. He stated that Chairperson Leusing may appoint individuals to assist her if that is her desire. Board member Canter reiterated that Chairperson Leusing’s results are excellent and appreciated by both the Board and the new residents who receive the baskets. D. Traffic Committee Report-Board member Valiere stated that there were no new issues to report. He stated that Board member Toto spoke with the sheriff regarding existing concerns and that there should be an increased presence of both motorcycle and patrol cars. He reported that patrol presence is limited by the limited manpower of the police department. Board member Valiere stated that the overall goal is to slow traffic in the subdivisions to avoid accidents. He reported that the increased patrols have been visible. E. Community Development- Board member Canter reported that Michael Coffer is the current chairperson of this committee. He stated that when Steve Cohen became a member of the CAB, Mr. Coffer stopped attending the meetings, as there was no reason for two individuals to attend. Board member Canter stated that with Mr. Cohen no longer serving on the Board, he has approached Mr. Coffer to ascertain if he would be attending the meetings and preparing the reports for the Board. Mr. Coffer indicated that he is willing to attend the meetings if Mr. Cohen was no longer reporting to the Board. President Collier stated that he spoke with Mr. Canter regarding the webmaster position. Mr. Cohen indicated that he will continue to serve as the webmaster for Fieldcreek Estates. Mr. Cohen also indicated that he will continue attending the community development plan meetings in the capacity of a Fieldcreek Estates resident. Board member Canter suggested that having two individuals attend the meeting may be desirable. President Collier volunteered to contact Mr. Cohen regarding this matter. It was suggested that Mr. Coffer could send an email summary of the CAB meeting to B.J. Brown, who could then provide the email report to the Board at the regular meetings. This would allow the report to be completed without requiring Mr. Coffer’s attendance at each meeting. Board member Canter commented that the CAB Minutes are posted on line. B. J. Brown requested to know if there was an update relating to a development below the Fairways division. Board member Toto replied that the approval has been obtained. He stated that some of the lots will be shuffled to avoid the four to one ratio next to the one-acre lots. The number of houses will remain the same. VI. OLD BUSINESS A. Consider Request by Attorney to Meet With Fairways Rep to Review Dues Amounts-Gail Kern, attorney for Fieldcreek Estates, was in attendance to review this matter. She reported that she has been contacted by the attorney for Fairways homeowners, Steve Wenzel, requesting that a meeting be arranged to discuss this matter. She stated that the initial communication was positive. She requested to know if the Board had a desire to arrange this meeting. If so, she requested that a representative from the Board be appointed to attend the meeting with her. Board member Canter supported this idea and stated that it had been suggested that the budget details be reviewed at the meeting to explain the use of the dues. Ms. Kern stated that originally the requirement for Fairways residents to pay Fieldcreek Estates dues was imposed by Washoe County. Board member Distaso commented that there did not appear to be a basis for Fairways to make any requests regarding the dues, as this was an agreement made at the very beginning of the Fairway development. Ms. Kern stated that monetary relief had not been requested at this time. The initial meeting will be to identify and discuss concerns of Fairways’ homeowners. Board member Distaso stated that, in his opinion, the $l50 due is reasonable in all respects. He suggested that the Fieldcreek Estates programs should be examined to ascertain if there are any that the Fairways’ homeowners might feel they are excluded from and should be included. Ms. Kern commented that the Fairways’ Homeowners hold a unique role in that they are required to pay assessments as required under their own governing documents, but they are not members of Fieldcreek Estates. She stated that Fieldcreek Estates is a third-party beneficiary. Board member Canter stated that the fee assessment was discussed on page 28 (of the Board material). He stated this was part of the information sent to Ms. Kern for the meeting with the attorney. Board member Canter read the core section pertaining to assessments to the Board. He stated that, in his opinion, these regulations could not be changed without a vote of the Association. It would require a 51% approval to change the CC&R's. Board member Canter suggested arranging this meeting to explain the budget and how the funding is used. He discussed the various budget areas which could be of particular interest to Fairways’ homeowners, such as the fee charged by EBMC or the ombudsman fee. He stated that one of the issues to be discussed by Fieldcreek Estates would be the difficulty in tracking property changes at Fairways which relates to collecting the assessments. He commented that many times, Fieldcreek Estates is not notified of a property change. He suggested that one alternative may be having Fairways collect the dues for Fieldcreek Estates with some type of rebate given for collecting the dues. Board member Canter reviewed the positive and negative aspects of this suggestion. He suggested an $l0 rebate for each collection for a total payment of $640. Ms. Kern expressed support of this idea and stated that this may be a good solution for problems which currently exist in collecting from Fairways’ homeowners. President Collier suggested that Board member Canter attend the meeting and listen to the requests of Fairways’ homeowners. Ms. Kern commented that this was the first time that an attorney had been retained to represent the homeowners. She stated that the documentation relating to the payment of the dues is established both in the Fairways and the Fieldcreek Estates CC&R's. Ms. Kern commented that the Board is allowed little discretion regarding this matter, without a vote of the homeowners. Board member Toto requested to know if the financial information could legally be shown to the Fairways’ homeowners. Ms. Kern stated that they are not legally obligated to provide this information. President Collier commented that the $l50 fee does not appear negotiable without approval of the homeowner’s association. However, he stated that the suggestion by Board member Canter regarding the collection method should be examined for feasibility. He stated that committees could be reviewed for potential benefit of Fairways’ Homeowners; however, in his opinion, the governing documents should be used to make any decision relating to benefit. President Collier reiterated the need to attend the meeting and to first listen to the concerns of the Fairways’ homeowners. Board member Distaso supported the suggestion of meeting with the Fairways’ residents and listening to their concerns. B. J. Brown suggested that it be clarified that Fairways’ homeowners are not members of Fieldcreek Estates. She stated that this issue continues to arise and that some Fairways homeowners are convinced they are a member of Fieldcreek Estates. She stated that this would improve relations if this distinction was clarified and if there was a clear understanding regarding who a Fairways’ homeowner should contact regarding such things as maintenance. She referred to calls which she has received from Fairways homeowners to fix a gate or other repair matters. President Collier requested clarification regarding the uniqueness of the relationship set up between Fieldcreek Estates and Fairways. Ms. Kern clarified that many associations are set up with a master association and sub associations. She cited Caughlin Ranch as an example of this type of master/sub association. In the case of a master and sub association, two sets of dues are paid, but the homeowner is a member of both associations. In the case of Fieldcreek Estates and Fairways, the homeowners of Fairways are paying two sets of dues but they are not members of Fieldcreek Estates. This relationship should have been known at the time the Fairways’ homeowner purchased their property. Ms. Kern stated that she will contact the Fairways’ attorney to setup a meeting of limited duration, if that is the Board’s desire. Leonard Distaso moved to have Bob and Gail meet with the attorney and a representative of the Fairways group to listen to their requests and issues for further consideration by the Board and to not make any decisions. George Toto seconded the Motion. Motion carried unanimously. B. Review and Approve New Fine Schedules Consistent with S.B. 136 and S.B. 100-Board member Canter stated that these have been provided to Ms. Kern for her review. Ms. Kern stated that the documents met her approval. Board member Canter stated that the documents were changed to incorporate some of the material given to the Board previously. He gave a summary of the changes to the new fine schedules. Bob Canter moved to approve the new fine schedules and proceed to put them into operation. Leonard Distaso seconded the Motion. Motion carried unanimously. C. Review and Approve Procedures for Violation Letters-Board member Canter stated that the purpose of these procedures were to provide instruction to the back office relating to violations. He reviewed the current process followed when a violation is first reported. He stated that first, the violation is recorded by BJ. Brown’s assistant. The violation letter is then processed. Board member Canter announced that the next violation hearing is scheduled for May 26, 2004. Board member Distaso requested to know if the new procedures complied with the new legislation. A short discussion followed. Bob Canter moved to approve the procedures for violation letter processing and response processing. Leonard Distaso seconded the Motion. Motion carried unanimously. D. Review and Approve Procedures for Violation Hearings-Board member Canter stated that this procedure had the largest impact on the Board. He stated that there will be a rotation pool of Board members to attend the hearings to relieve Board members from attending every violation hearing. He reported that, under section 7.09 of the By-Laws, this meeting will count as an attendance factor. Board member Canter reviewed item seven of the procedure relating to the fine. He stated that a common principle must be established to be applied in each case in a fair and consistent manner. He stated that unless it can be established beyond a reasonable doubt that the violation did not occur, the violation should be upheld and the appropriate fine be imposed. Ms. Kern stated that when deciding to assess a fine, the Board should be sure that a violation has occurred. Board member Distaso expressed concern relating to the reasonable doubt standard listed in the procedure. President Collier requested that Ms. Kern provide an example of how this standard would work in the case of a hypothetical violation relating to a barking dog. Ms. Kern clarified that a barking dog is actually a crime under city code. She stated that in order to be convicted under this code, there must be more than one neighbor complaining. She suggested that more than one neighbor complaining should also be applied to the Fieldcreek Estates violation relating to a barking dog. President Collier stated that this goes beyond a reasonable doubt because there is now several witnesses. Board member Canter requested an example where a statute or ordinance would not be related. Ms. Kern stated that a complaint is not brought to a hearing until the third reported violation. She stated that the evidence is the information submitted to EBMC. The individual making the complaint is not known. Ms. Kern stated that EBMC will have information regarding the fact that the violation was reported by three different individuals or by one individual three separate times. Board member Canter stated that this information is not provided. Ms. Kern stated that this information should be requested from Ms. Brown. She reviewed other considerations in weighing evidence. She stated that the way the procedure is currently written it will be up to the homeowner to provide evidence that the violation did not occur. She reviewed the importance of credibility when weighing the evidence. She reminded the Board that enforcement must be completed consistently and fairly, and that the record keeping relating to the violations must be maintained. B. J. Brown asked several questions relating to the record keeping for violation reports. She stated that currently the reporting individual’s personal information is deleted out for privacy. Ms. Kern stated that the reason legislation imposed the requirements of the hearing, was to avoid an automatic violation. A discussion followed regarding review and examination of the evidence as it related to these hearings. At this point, Board member Canter called for the question. Leonard Distaso seconded. Motion carried unanimously. Bob Canter moved to accept the Conduct of Violation Hearing Procedure as it is written. Gary Valiere seconded the Motion. Motion carried unanimously. VII. NEW BUSINESS A. Board to review bids for D&O/General Liability Coverage-B. J. Brown reported that she was unable to obtain additional quotes for coverage. She announced that the only quote available was from D&O for coverage of three million dollars. She stated that the general liability will expire at the end of the month and is normally mailed out two to three weeks prior to expiration. She stated that the premium amount had not yet been received; however the policy normally increases six to ten percent per year, on the average. Ms. Brown reported that Menicucci has provided the lowest D & O insurance bid in past years. Bob Canter moved to accept the D&O insurance bid of $3,085. Gary Valiere seconded the Motion. Motion carried unanimously. Bob Canter moved to accept the general liability premium if it comes in within 10% of the premium paid last year. Discussion followed. Ms. Brown explained that the issue regarding the liability policy centers on the fact that normally liability is connected to property. However, in the case of the Fieldcreek Estates policy there is not a connection to property, which limits the companies who will quote this policy. President Collier requested clarification that the ten percent referred to in the motion would be ten percent from the current policy amount of $2,804. Ms. Brown stated that last year the general liability portion of the policy was $950. Leonard Distaso seconded the Motion. Motion carried unanimously. B. Repair and reconstruction of drainage ditch at corner of Fieldcreek and Zolezzi Lanes-President Collier commented that it was his understanding that this has been an ongoing issue. Gary Bria reported that the ditch is approximately 50% silted. He stated that an individual from John Beatty, who completed the ditch reserve study, had indicated that the issues may relate to the original grading and construction of the ditch. It was stated that Washoe County has not advised Fieldcreek Estates that repair or reconstruction is required at this time. Concern regarding run off from any large storm was expressed. It was reported that Washoe County has completed cleaning of the trap. However, they did not clean the culvert which comes into the trap. Board member Canter commented that this must be fixed sometime, and that it may be better to complete the repair when it is in a relatively manageable state. President Collier requested to know if it was reasonable to assume that this repair should be completed every ten years. Board member Canter stated that, to his recollection, the reserve study recommended cleaning every six to ten years. It is currently scheduled for 2004. Bob Canter moved to get bids to reestablish and reconstruct the drainage easement to conform to County standards. George Toto seconded the Motion. Motion carried unanimously. It was clarified that the section is located approximately 200 feet on the west side of Fieldcreek from Zolezzi Lane. VIII. DISCUSSION ITEMS A. Review Board Calendar including Hearing Dates-Board member Canter announced that the calendar had been completed through December. President Collier announced that his company is in the middle of labor union negotiations and that if the company were to strike, he may have to work on May 26, 2004 when the violation hearing is scheduled. President Collier requested clarification of the meeting time on May 15, 2004. It was stated that the meeting will begin at 9:30 a.m. and that check-in time begins at 9:00 a.m. Board member Canter requested to know if President Collier had any preferences regarding a Board position, should he be unable to attend the May 15, 2004 meeting due to a strike. President Collier stated that he would fill in wherever the Board felt he could be of the most use. Board member Canter requested clarification regarding the signature card change after the election of officers. Ms. Brown clarified that the existing Board members will still sign checks on May 15, 2004. She stated that the library, where the meeting will be held, opens at 9:00 a.m. Bob Canter moved that the calendar and the notes relating to Board calendar as presented be approved. Leonard Distaso seconded the Motion. Motion carried unanimously. B. Board Roundtable on Future Direction and Past Experience-President Collier stated that this item had been placed on the agenda to obtain the recommendations of Board members who will be leaving the Board this year. Board member Canter stated that he had provided the Board with two items. The first discussed major issues encountered by the current Board and the second related to property management. The first document listed problems/errors which have been experienced during the first four months of 2004. There were ten items listed. This document had been received by the Board. Board member Canter discussed the issues, the reasons for their occurrence and the items to consider when working with EBMC staff. He reviewed the expectations that a Board member should expect from the staff of EBMC and how it is the responsibility of the Board to provide oversight for all matters related to Fieldcreek Estates. He stressed that it is important to carefully choose the individuals for the Board positions. The next document provided by Board member Canter was entitled “Services that the Association needs to conduct its business”. This document listed eleven services required by the Board. He reviewed the budget for these services and compared them to hours that a Board member might take to fulfill the same task. He also discussed self-management of the association and what this might encumber. Board member Valiere discussed self-management procedures for a homeowner’s association to which he belongs. Board member Canter stressed the need to document everything. Ms. Brown stated that she prints every e-mail that comes in. He suggested that everyone on the Board should be familiar with and read the N.R.S. statutes relating to property management and be in a position to sign off on it. He stated that, in the past, placing the documents in the computer on a CD had been considered. Board member Canter suggested that Board may wish to obtain an estimate on completing this task with it setup to search by key words, etc. Board member Canter suggested that also having the CC&R's in a readable form would be helpful. President Collier stated that placing these on the website had been discussed; however, it is a formidable task due to the various amendments. Board member Canter stated that he has cut and pasted the amendments into the correct area to create a document which contains the CC&R's in current form with amendments in the proper section. Ms. Brown requested to know if the Board could use Board member Canter’s copy. Board member Canter replied that anyone could copy his document. Board member Valiere suggested it would be more cost feasible to place these on disk. He requested that a quote for this task be obtained. IX. CORRESPONDENCE A. Gary Bria landscaping memos- Mr. Bria discussed landscaping items which were recently stolen. He stated that deterrents were placed on them to proactively deter future theft. These included bars which bolt in from behind with a lock. The cost to replace the timer and weather box which were stolen was approximately $75 each. Additional cost included the locks and latches. Mr. Bria stated that a report was filed with the sheriff for the theft of two of these items. Board member Valiere suggested notifying homeowners of the theft in the next newsletter and requesting information related to the thefts. Board member Collier reported that the light at the top of Thomas and Field Creek is continually broken. A general discussion followed. Ms. Brown commented that Christmas lights were cut up the year before. Mr. Bria reported that there is a small leak in the drip system at Thomas Creek. This will be replaced in the next few weeks. There is also a broken post at Field and Thomas Creek in the little foot rail which needs replacement. The cost for repair is approximately $30. President Collier requested information on the cost of watering and stated that one area showed apparent leakage. He described the area to Mr. Bria. Mr. Bria replied that last year a problem existed in this area. This was corrected. He requested that Mr. Collier notify Ms. Brown if the water leakage occurred this year in this spot. Board member Canter commented that since Mr. Bria took over the landscaping the water bill has been reduced by $1,650. X. SCHEDULED NEXT BOARD MEETING The next meeting is scheduled for May 15, 2004. This meeting will be the Annual Meeting and will be held at the South Valleys Branch Library. The meeting will begin at 9:30 a.m.; check-in time begins at 9:00 a.m. XI. ADJOURNMENT There being no further business, the meeting adjourned at 9:10 p.m. A motion was made and seconded. Motion carried unanimously.
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