HeatherRidge
Umbrella Board Meeting Minutes
July 2006
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BOARD OF DIRECTORS MEETING, HeatherRidge Umbrella Association (HUA), July 25, 2006
These minutes have not yet been approved by the HUA Board. Any corrections, additions, or deletions will be made at the next regular HUA Board meeting prior to official approval.
President Patrick Perry called the meeting to order at 7:00 pm.
Present: Todd Campbell, Owen Hill, Paul Kelly, Gordon Lind, Carol Marker, Jack Nowry, Patrick Perry, and Elroy Wilke. Absent, Sharlene Hink.
JUNE 27, 2006 MINUTES: Carol Marker made a motion to approve the June 27, 2006 minutes, seconded by Owen Hill; all aye, motion carried.
PRESIDENT’S REMARKS: Patrick Perry read a letter from Bettie Myers of the Covered Bridge Condo neighborhood complimenting our Landscape Department for the fabulous work they do for HeatherRidge. A copy of the letter will be placed in Brad Banwart’s personnel file.
VICE PRESIDENT’S REMARKS: Carol Marker displayed the certificate HeatherRidge received for the Village of Gurnee In Bloom Beautification Award. It’s a pleasure to mention that HeatherRidge won the award in 2003 also.
TREASURER’S REMARKS: Owen Hill reviewed the Treasurer’s Report and noted that we are behind in our cash position due to having three payrolls (bi-weekly rather than bi-monthly) in June and December, which will show a deficit. Income is a little over budget, but expenses are under budget. Jack Nowry made a motion to approve the Treasurer’s Report, seconded by Elroy Wilke. At vote, all aye, motion carried.
Totals Totals as of Change from
CASH POSITION 5/31/2006 Operating Reserves 6/30/2006 Previous Month
Umbrella $337,844.41 $ 27,214.24 $261,737.03 $288,951.27 ($ 48,893.14)
CRF $ 65,851.96 $ 20,947.86 $ 44,025.54 $ 64,973.40 $ 878.56
CRF - Clubhouse $ 23,108.03 $ 10,765.42 $ 16,109.11 $ 26,874.53 $ 3,766.50
Golf $104,645.50 $ 93,658.54 $ 51,426.77 $145,085.31 $ 40,439.81
CBRC $ 50,845.66 $ 19,248.50 $ 31,779.55 $ 51,028.05 $ 182.39
HHRC $ 26,279.95 $ 10,240.40 $ 15,253.34 $ 25,493.74 ($ 786.21)
SBCRC $ 57,803.23 $ 20,570.63 $ 39,009.45 $ 59,580.08 $ 1,776.85
TOTALS $666,378.74 $202,645.59 $459,340.79 $661,986.38 $ 4,392.36
HUA OPERATING INCOME & EXPENSES Current Month Year-to-Date
Actual Budget Difference Actual YTD Budget YTD Difference YTD
INCOME $113,057.75 $112,247.06 $ 810.69 $ 675,486.81 $ 673,482.36 $ 2,004.45
Landscape $ 60,945.76 $ 51,978.63 ($ 8,967.13) $ 279,500.41 $ 306,549.53 $ 27,049.12
Security $ 29,495.59 $ 22,827.75 ($ 6,667.84) $ 120,206.10 $ 135,497.95 $ 15,291.85
Administration $ 21,173.66 $ 19,942.91 ($ 1,230.75) $ 127,109.48 $ 120,296.39 ($ 6,813.09)
Maintenance $ 20,525.37 $ 20,281.47 ($ 243.90) $ 100,494.68 $ 128,389.82 $ 27,895.14
INCOME (LOSS) ($ 19,082.63) ($ 2,783.70) ($ 16,298.93) $ 48,176.14 ($ 17,251.33) $ 65,427.47
CRF OPERATING INCOME & EXPENSES Current Month Year-to-Date
Actual Budget Difference Actual YTD Budget YTD Difference YTD
INCOME $ 14,156.39 $ 14,951.09 ($ 794.70) $ 98,647.26 $ 91,706.54 $ 6,940.72
EXPENSES $ 10,801.44 $ 11,950.27 $ 1,148.83 $ 71,112.09 $ 73,470.78 $ 2,358.69
INCOME (LOSS) $ 3,354.95 $ 3,000.82 $ 354.13 $ 27,535.17 $ 18,235.76 $ 9,299.41
CBRC OPERATING INCOME & EXPENSES Current Month Year-to-Date
Actual Budget Difference Actual YTD Budget YTD Difference YTD
INCOME $ 2,644.70 $ 2,569.68 $ 75.02 $ 16,157.04 $ 15,418.08 $ 738.96
EXPENSES $ 2,493.42 $ 2,461.53 ($ 31.89) $ 11,575.87 $ 15,137.52 $ 3,561.65
INCOME (LOSS) $ 151.28 $ 108.15 $ 43.13 $ 4,581.17 $ 280.56 $ 4,300.61
HHRC OPERATING INCOME & EXPENSES Current Month Year-to-Date
Actual Budget Difference Actual YTD Budget YTD Difference YTD
INCOME $ 2,890.86 $ 2,871.00 $ 19.86 $ 17,586.85 $ 17,481.00 $ 105.85
EXPENSES $ 3,120.89 $ 3,090.31 ($ 30.58) $ 16,513.32 $ 16,370.04 ($ 143.28)
INCOME (LOSS) ($ 230.03) ($ 219.31) ($ 10.72) $ 1,073.53 $ 1,110.96 ($ 37.43)
SBCRC OPERATING INCOME & EXPENSES Current Month Year-to-Date
Actual Budget Difference Actual YTD Budget YTD Difference YTD
INCOME $ 1,724.15 $ 1,679.10 $ 45.05 $ 10,320.78 $ 10,074.60 $ 246.18
EXPENSES $ 2,328.87 $ 1,698.98 ($ 629.89) $ 7,839.74 $ 8,769.13 $ 929.39
INCOME (LOSS) ($ 604.72) ($ 19.88) ($ 584.84) $ 2,481.04 $ 1,305.47 $ 1,175.57
COMMUNITY MANAGER’S REPORT: A Community Manager’s report was submitted in writing and was available to the audience. The retention bags from the pond cleaning are draining and we have not experienced offensive odor. The road work along Manchester Drive is near completion by the Village of Gurnee. Some warranty work will be done on the four tennis courts that were refurbished last year and the upper two courts may have repair work done in the future, if approved by the HUA Board. The concrete structure of the spillway by the pump house appears to have a growing surface crack and other cracks have been observed on the retaining walls. As the water recedes, the area will be evaluated. Our Community Manager noted that he will be working closely with the residential associations and the HUA to achieve better administration of the rules and procedures directed in our governing documents. Some issues have not been addressed in the past as efficiently as they should have been and the Declarations, Rules and Regulations will be handled in a fair and equitable manner for all. Carol Marker made a motion to accept the Community Manager’s Report, seconded by Jack Nowry. At vote, all aye, motion carried.
STANDING COMMITTEE REPORTS:
Landscape Committee: Carol Marker chaired the Landscape Committee meeting on July 17, 2006. The committee is working on the Six-Year Plan, and our Department Chief an extensive background and expertise in this process. The vehicle inventory and mechanical status are being reviewed. Application and administration of the declarations, rules and regulations concerning improper plantings on common ground are critical issues being discussed and resolved. Our supply of seasonal workers has been impacted by pay constraints and stringent immigration issues. Jack Nowry made a motion to accept the Landscape Report, seconded by Paul Kelly. At vote, all aye, motion carried.
Architecture and Maintenance Committee. The maintenance and landscape (east and west sides of 5801 building) have been budgeted to be repaved. The west parking is not as critical and work could be postponed for at least 3 or 4 years. The east lot is in poor shape and needs to be done as soon as possible. It has been budgeted for $18,077 and the west lot for $22,660. The committee is proposing to repave the east lot and at the same time build bins and storage (sand, salt, dirt, stone) to improve efficiency and appearance. The revised cost of $28,282 would include purchasing the blocks for storage. Multiple bids were received for each phase of the project. Two of the bidders for the blocks do not deliver and the cost of renting heavy equipment to load, pick up, deliver, unload would be prohibitive. Thus, the Kirchoffer bid was deemed most responsive and is recommended to the HUA Board. Two of the five paving bids were in final consideration and although it was slightly higher in dollar value, DuBois Paving was selected as the reputation, previous experience, and quality of work were considered. There was discussion on using a portion of the projected west lot funding for the block work, if the money should be spent at all, or if another capital improvement project should be considered. The west lot can be worked into a future project in the Six-Year Plan, recognizing that future costs may be slightly higher than they are in 2006. Jack Nowry made a motion to accept the parking lot paving bid from DuBois Paving of $29,282; and the bid of $4,290 from Kirchoffer Stone for the concrete blocks and delivery, seconded by Carol Marker. At vote, all aye, motion carried and purchase orders will be prepared. In a further item for discussion and thought, Jack Nowry mentioned that our dumpsters on the east side of the maintenance/landscape building cost several hundred dollars each month for emptying, and it is believed that folks other than HeatherRidge residents are unauthorized users of the dumpsters. We do not have a secure compound or the capability of policing the use, Jack would appreciate thoughts and ideas for some type of regulation.
Ponds Committee: Information and issues concerning ponds, cleaning and maintenance will be discussed at the Six-Year Plan meeting July 31, 2006.
Finance Committee: Owen Hill reported on income, expenses, and reserves, providing detail for period ending June 30, 2006. The Six-Year Plan meeting will be held Monday, July 31, 7pm at the HUA office. The Operations meeting will be Monday, August 14, 2006, 7 pm at the HUA office to discuss capital improvements and assessments; and CRF, golf, and tennis surplus funds. The decline in HUA reserve funds will be studied, compared to the Six-Year Plan, and a spending plan will be developed. Jack Nowry made a motion to accept the Finance Report, seconded by Todd Campbell. At vote, all aye, motion carried.
Audit Committee: The Audit Committee will meet on Thursday, August 3, 2006, 7 pm at the CRF conference room. Our auditor will attend and the HUA Board is invited to join the Audit Committee members.
Tax, Law, Legislation, Contracts, Insurance, and Special Issues (TLLCISI) Committee: The TLLCISI Committee met on July 6, 2006. The main discussion was of how CRF revenues are applied per the HUA Declarations. Ann Richter of the Finance Committee provided excellent research to the queries, and in summary: revenues must be considered in budgeting and applied; CRF budgeting must include golf, tennis, club house, both in operating and reserve; any revenues in excess of operating expenses are to be applied to reserves; and CRF funds cannot be used to pay for non-CRF items. These items will also be brought up with the auditor at the Audit Committee meeting on August 3. Owen Hill made a motion to accept the TLLCISI Report, seconded by Jack Nowry. At vote, all aye, motion carried.
Golf and Tennis Committee: Elroy Wilke recapped the examination of the four tennis courts that have been resurfaced and the two that have not. The warranty work will be done and future work on the two remaining courts will be reported on in a future meeting. There was discussion on the lower number of golf rounds, yet the net income is higher than this time last year. In reply to Gordon Lind, Owen will prepare further detail. The new “chipping area” was discussed at length. It was not clear last year that there would be a charge for residents to use the area. It is felt that HeatherRidge residents paid for the refurbishment of the area and it is unfair for them to have to pay to use the chipping area. The HUA Board did not approve a charge for residents, but it was pointed out that some of the funding came from golf revenues (public course). Patrick Perry pointed out that the fee structure is included in the golf budget and that budget is distributed to each HUA Board member. Paul Kelly feels that the $3 chipping fee was not approved by the HUA Board and the rate is illegal. Patrick Perry said that it will be re-looked for next year or that Paul could make a motion to abrogate the $3 chipping fee (must be seconded and should be done in new business). We have a contract with Golf Visions and it is not manageable or wise to have the HUA Board approve every item or amount received or expended. The Golf Committee should not make budgetary decisions, but recommendations that the HUA Board votes and decides upon. Looking at other shared expenses, the golf course pays half of the liquor liability insurance as well as 40% of the liquor license fee. Jack Nowry made a motion to accept the Golf and Tennis Report, seconded by Owen Hill. At vote, all aye, motion carried.
Welcoming Committee: There was a Welcoming Committee meeting on July 18, 2006, and 7 new residents attended. The next regular meeting will be on August 15, 2006 at 7 pm at the CRF. The list of new residents was available for the audience.
OLD BUSINESS:
Parking Lot Maintenance at the Maintenance Building. Covered with the Architecture and Maintenance discussion.
Paul Kelly made a motion to reverse the approval of the Golf Visions contract, seconded by Gordon Lind. Paul does not feel the board knew the contents of the new contract and it had not been reviewed by the TLLCISI Committee. He further thinks it violates the HUA Purchasing Policy. Other HUA Board members did voice that they regretted voting for the contract approval, but recognized that it was completed and we should never let that happen again. Patrick Perry said that Article 9 of the By-Laws gives the President authority to sign this type of contract and that our lawyer confirmed it was a legal transaction. Patrick stated that we might be liable to a law suit by Golf Visions if we back out of the contract. Discussion included whether it was an extension of a contract or a new contract, and the June 27, 2006 minutes document it as an extension. Carol Marker suggested another legal review and determination if we have available out-clauses that would not involve a law suit. At a roll-call vote on the motion to reverse the approval of the Golf Visions contract, 3 aye, 4 nay, 1 abstention, motion failed.
Paul Kelly made a motion to remove the $3 chipping area fee for all residents. In discussion it was noted that guests of residents would have to pay the fee. Todd Campbell seconded the motion and the date of August 1, 2006 was agreed upon. At vote, 5 aye, 3 nay, motion carried, the fee for residents will be rescinded as of August 1, 2006.
NEW BUSINESS: None.
OPEN DISCUSSION FOR HOMEOWNERS:
Bob Adelman of the HighPointe neighborhood said that the HUA Board has no power to abate a fee, the HUA Board can only approve a fee. He feels that is the responsibility of the HUA Board members to know what they are voting on as a vote cannot be retracted later.
Irene Hastings of Covered Bridge Townhome neighborhood asked the status of the keycard readers as they are having problems with vandalism and damage in their clubhouse. Bob Marcus explained that we have a proposal for a key card printer to replace the one originally selected that did not perform. He is not aware of a key card reader system and will have to research that matter. Irene noted that Covered Bridge set money aside in capital expenditures to replace what we currently have, and they would like to have it done as soon as possible.
Sam Dent of Covered Bridge Townhome neighborhood noted that contracts must be administered legally and must benefit the residents. He further noted that management has not shared problem issues (the landscaping on common ground and others) with the neighborhood committee representatives or neighborhood board members. He is also very concerned about the card readers and feels there has been a “run-around” since the Covered Bridge Neighborhood Committee approved them. Bob Marcus will research and get back to Sam Dent.
Katherine Maier of the Covered Bridge Condos asked once again to have the sewer drains and covers checked and cleaned out as there is water backup in the parking lots and also in the garage area. She has also asked to have the large trees between two of the condo units trimmed, Bob Marcus will check into both issues and do a walk-through with her to determine the exact sewers and trees in question.
Carter Mitchell of the covered Bridge Townhome neighborhood asked if the HUA Board had agreed to “vacate” the old Golf Visions Contract. He is also concerned about the card reader and access control systems for the neighborhood recreation centers. Gordon Lind will look into it further and report back to him.
Jim Campbell of the Cambridge neighborhood asked for clarification on whether Golf Visions initiated the contract change or if the HUA Board did.
Stephen Hahn of the Hidden Hills Townhome neighborhood commented on financial and funding issues that had been brought up during the meeting. He noted that revenues from assessments, fees, and sales are common revenues, that expenses of the association are common, and that the HUA Board should make the decisions on improvements. He questioned the fiduciary responsibility of HUA Board members, and that if HUA Board members did not read the golf contract or know the content it is a violation of such. He feels that the HUA Board should meet with Golf Visions to review if there were material changes to the new contract that should be reconciled. President Perry mentioned that the new Golf Visions contract was approved 6 aye to 2 nay at the June 27, 2006 HUA Board meeting and the HUA attorney gave us a written opinion that the vote was legal. President Perry also responded that this contract was approved in an open meeting of June 27, 2006 and all HUA Board members, on any motion, can vote “aye,” “nay,” or “abstain.”
Elroy Wilke clarified to two residents that Golf Visions does not keep green fees, the chipping fees, proceeds from the golf shop, or the Cabana Bar. They are under a flat-rate contract and get a monthly fee. He will gladly provide more detail from the monthly golf reports if they wish.
Paul Kelly made a motion to adjourn the meeting, seconded by Todd Campbell. All aye, motion carried.
Adjournment at 8:30 pm. Next Meeting – Tuesday, August 22, 2006
_______________________________ _________________________________
Jack Nowry – HUA Board Secretary Cathy McGrath – Recording Secretary
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