Board of Directors Meeting Notes

The board of directors had its first business meeting after summer recess on Monday, Sept. 23, at 10 a.m. in the ballroom. The following are notes from this meeting. The next scheduled board of directors business meeting is scheduled for Dec. 16, 2024, at 10 a.m. in the ballroom, followed by an organizational meeting of the board.

Members present: Nancy Eckstein, Dirk Close, Dan Buescher, Bob Morris, Chuck Heitbrink, Bob Lama, and Manager Layne Varney. Dave Eddington was excused. The meeting was called to order at 10 a.m. by President Nancy Eckstein. There were over 45 residents in attendance. The board reviewed the minutes of the May 20 business meeting, the May 20 executive session, and the Sept. 5 executive session. No additions or corrections were recommended; minutes approved by common consent.

The Treasurer’s Report was presented by Chuck with the year-to-date results through August 2024. Year-to-date revenue of $2,327,596 and expenses of $2,020,358. Revenue over expenses year to date was $307,238. Total cash on hand at month end was $2,058,550 with the following funds:

Operating Account: $401,797, Contingency Fund: $405,107, Reserve Fund: $1,189,512, Capital Improvement Fund: $15,032, Golf & Comm. Beautification Fund: $47,103.

Expenditures from the various funds were detailed in the homeowner’s report. As we begin our budgeting process for the year, a considerable amount of our proposed increase is due to insurance increases, legal fees, and the establishment of a Self-Insurance Retention Fund to cover items not submitted to insurance and to cover the new $10,000 deductible in our Directors and Officers Insurance. This increase from a zero deductible to a $10,000 deductible is due to our history. This, along with other insurance increases and legal fees, is largely due to the lawsuits filed by residents Kittridge and Klatt.

Layne presented the Manager’s Report.

Administration: Billing invoices mailed in June are due July 1. Currently, seven lots are delinquent. No one is delinquent past July of this year. Roadwork continues, and all residents were reminded that the information was presented in several different formats, and if any questions still remain, please call the HOA office.

Clubhouse: Jacuzzi heater has been fixed, clubhouse sewer lift station controller repaired, pool deck has been repaired, emergency exit lights have been updated, sport court lights have been replaced with LED fixtures, post office interior has been remodeled, Billiards Room tables and chairs have been recovered, Lakeview Room windows were replaced with dual-pane windows, air conditioner was replaced servicing the west section of the main floor, additional lighting around the clubhouse and parking areas have been added.

Common Area: Replaced a couple of sidewalk sections and the concrete gutter in the road, several displaced areas around the clubhouse were ground down, common area landscape was treated with pre-emergent weed control, all trees and palm trees have been trimmed, several trees and large saguaro cactus were removed after falling, challenge in keeping landscaping crew due to illness and heat. Two additional staff have been hired.

Patrol: Monitoring unauthorized use of gate codes and deactivating when verified, Waterview exit gate will remain open due to a motor issue and street repairs.

Committee Liaison Reports:

Architectural Control: Dirk reported that 119 permits were issued from May through August, and in September 13 permits were issued so far. The total for the year is 332. Letters were sent to homeowners concerning palm trees and weeds.

Finance: Chuck reported that the committee met to review the preliminary August results and the preliminary budget. A committee of Frank Nechvatal, Ranee Seaman, and I were tasked with developing guidelines for the Self-Insurance Retention Fund. We had one homeowner, Teri Bitler, attend the meeting.

HOA/Golf Board: Nancy reported that the committee did not meet this month. No future meetings are scheduled at this time.

Project Review: Dan reported that several projects have been completed.

Rules: Bob Morris reported that the committee met to discuss road signs and stop lights. Additional stop strips and lights would be placed off the Riggs Road entrance. They are also reviewing the Code of Conduct.

Welcoming & Marketing: Bob Lama reported that the committee did not meet during the summer and will meet on Oct. 17 in the Lakeview Room to focus on new homeowners and plan the January Meet and Greet Party for all new homeowners in 2024.

The Election Committee, represented by Teri Bitler, reported that the following homeowners were in good standing and approved to be on the upcoming board of directors ballot for two openings: Marianna Buscher, Kathleen Hasbach, Michelle LeBlanc, and Brendan Waddell. The ballots will be mailed on Oct. 1. The deadline for voting is the end of the business day on Nov. 15, and votes will be counted on Nov. 18. Nancy moved that the November board meeting be moved to Nov. 25 instead of Nov. 18. Motion passed 6-0.

The Planning Committee made two recommendations when funds are available. Dan moved to replace the existing railing at the Lakeview Room to bring it up to code. Motion passed 6-0. Dan moved to install new windows on the east side of the post office. Motion passed 6-0.

Layne discussed the proposed budget that was presented to the homeowners. The Reserve Fund was increased due to trends and inflation. Another portion of the increase was based on an increase in the minimum wage and salary increases. A major increase was due to the energy costs to heating the swimming pool. The final proposed budget will increase 8.7%, or $10 per month per lot owner.

Nancy updated the homeowners on the status of the lawsuit case CV2023-05389, Klatt vs. SunBird, filed in Superior Court. This claim is regarding the amendment to the CC&Rs, which he is alleging not to be legal. The amendment allowed for the formation of the Community/Golf Club Fund, generally referred to as the $300 fund. Homeowners approved the CC&R amendment in 2021 with 983 lots approved, 288 lots disapproved, and 26 lots indicated they were undecided. Our attorney is working on having the case dismissed. We have another court hearing on Sept. 27 when we will be petitioning the court to dismiss the case. Nancy advised that as more information is available, it will be communicated to residents.

The comment sheets were reviewed by Layne.

Homeowners’ comments were read and discussed.

With no further business, the meeting was adjourned at 10:56 a.m. An executive session followed.

The next scheduled board of directors business meeting is scheduled for Dec. 16, 2024, at 10 a.m. in the ballroom.