The board of directors met for a regularly scheduled meeting on May 20, 2024. These are the notes from that meeting.
Board members present: Dan Buescher, Nancy Eckstein, Chuck Heitbrink, Bob Lama, Bob Morris, and Manager Layne Varney. Dave Edington and Dirk Close had excused absences.
The meeting was called to order by President Nancy Eckstein at 10 a.m.
The minutes of the April 22, 2024, business meeting were accepted.
Treasurer’s Report
Chuck Heitbrink reported that our positive financial trend continues. The following balances are in our accounts as of the end of the month of April:
Operating Account: $203,172
Contingency Fund: $393,107
Reserve Fund: $1,122,027
Capital Improvement Fund: $29,473
Community and Golf Fund: $38,103
Total Checking/Savings: $1,785,881
Currently, our YTD revenue is $1,286,788, and our expenses are $1,054,296, or a positive for the YTD of $232,492. Expenditures from the various funds so far this year: Contingency Fund: $13,800, Reserve Fund: $16,737, Capital Improvement: $5,340, Community & Golf Fund: no monies spent due to current Klatt vs. SunBird lawsuit.
He further stated that as we continue to progress with the year, we may have to consider adjustments to future budgeting based on the number of lawsuits and the fact that our insurance policy is capped on the Directors and Officers portion at $1 million based on our litigation history.
Manager’s Report: Layne Varney reported that SunBird had 16 home sales during April, bringing the total to 44 for the first four months of this year. First-half assessment billing was mailed out in November, due Jan. 1, with a delinquent date of Jan. 15. One hundred four (104) late notices were sent out, 26 second notices, and nine third notices. Only three are now unpaid (two homeowners passed away, and one is being worked on). New summer menu and hours will begin on June 1. Repairs around the clubhouse continue, including the baseboards at the clubhouse swimming pool restroom, which someone had removed. The second round of tree trimming on the common areas continues. Patrol installed amber-colored strobe lights at the Kerby Farms and Waterview gates to indicate when an emergency vehicle has entered into SunBird. Unauthorized persons in SunBird were reported and caught.
Committee Liaison Reports
ACC Committee: No report given
Finance Committee: Chuck reported that the committee met to review the preliminary April results. Layne led the discussion, and there were a couple of questions concerning balances in some of the accounts. He explained that these would be updated on the next financial statement. A comparison of the HOA dues with several of the surrounding communities was presented. Our community continues to enjoy the lowest HOA dues in the area. In some communities, residents even pay for each activity or use of the facility. The committee was reassured with the results of the study.
Golf Club/HOA Committee Meeting: No meeting held in May
Rules Committee: Bob Morris reported that Joan Bruening was welcomed as a new committee member. The committee recommended a larger speed limit sign be placed on SunBird Blvd. before the clubhouse, which has been done. Recommended that sandwich board signs be placed at the pool to indicate what equipment is allowed in the pool. Recommended that signs be placed at the sports court as a reminder about the rules. Further discussion on smoking and SunBird’s Code of Conduct will be revisited in the fall. There was a discussion on recommending the committee’s name be changed, dropping the word “compliance.” The committee’s mission is to review, write, and submit rules to the board of directors for approval. Enforcement is handled by HOA management and patrol.
Project Review Committee: Dan reported that all projects previously approved are being worked on or are complete.
Welcoming and Marketing Committee: No meeting held in May
No committees meet during the summer months except for the ACC Committee.
Election Committee: Nancy made the motion to appoint the following homeowners to the Election Committee: Teri Bitler, Arlene Cooper, and Paula Warhoover. It was seconded. Motion passed 4-0. Nancy thanked Barb Ott, Pat McGonegle, and Joan Bruening for their service on the committee for the past many years.
Lawsuit Update: Nancy reported that on Sept. 13, 2023, Jimmie Klatt sued the Association, alleging that the 2021 amendment to the SunBird CC&Rs is invalid. Homeowners approved the CC&R amendment in 2021 with 983 lots approved, 288 lots disapproved, and 26 lots indicated they were undecided. He based his claim on a 2022 Arizona Supreme Court case that says an HOA cannot amend the CC&Rs in a way that is not reasonably foreseeable to the homeowners. He further alleges that the Capital Improvement Assessment is an unlawful transfer fee under the Arizona Planned Community Act.
On Oct. 5, 2023, SunBird filed a Motion to Dismiss Mr. Klatt’s Complaint. The Court denied this motion on March 24, 2024. In this ruling, the Court expressed concerns that Capital Improvement Assessment violates Arizona statute and was, therefore, invalid.
On April 1, 2024, SunBird filed the requisite Answer to Mr. Klatt’s Complaint. Additionally, on April 16 SunBird filed a Motion for Clarification to clarify, among other things, the Court’s intent regarding statements made about the Capital Improvement Assessment in its March 24 ruling. That motion is still pending.
On May 6, 2024, Mr. Klatt filed a Motion for Summary Judgment, and the Association is currently preparing a Response. The litigation is ongoing.
Homeowner Michelle LeBlanc voiced her concern regarding the trees on the common area behind her home. She also voiced her displeasure with all the tree leaves dropping on her home. Layne asked her if she would like the trees removed, and she said yes, that she would like them removed.
Nancy reminded everyone that the next scheduled board of directors business meeting is scheduled for Monday, Sept. 23, 2024.
The meeting was adjourned at 10:35 a.m.
The next scheduled board of directors business meeting is Sept. 23, 2024, at 10 a.m. in the ballroom.