DRAFT Annual Meeting
Minutes DRAFT
May 9, 2017
Oakbrook Townhouse,
Inc.
c/o Northwest
Properties Agency, Inc.
9527 Bridgeport Way
SW
Lakewood, WA 96499
The
Annual Meeting of the Oakbrook Townhouse, Inc was held on Tuesday, May 9, 2017
at the RMG Golf Club, 8102 Zircon Drive SW, Lakewood, WA.
President
Karch opened the Annual Meeting at 7:06 PM, noting that this was a “re-do” of
the scheduled January 17, 2017 Annual Meeting, at which a quorum of members
present or by proxy was not realized. He
reported that the quorum requirement for the May 9 meeting had been met, with
39 members in attendance in person or by proxy.
Operating Rule
Karch
presented a proposed Rules of Order to ensure an orderly meeting. It was moved to adopt the following Rules of
Order:
“…I
move that the Annual Meeting of the Oakbrook Townhouses, Inc. be guided by the
current edition of Roberts’ Rules of Order, except where they conflict with the
RCWs governing Oakbrook Townhouses, Inc., the Oakbrook Townhouses, Inc.
CC&Rs or Bylaws, or policies adopted by the Board, or where the strict
compliance with Roberts’ Rules of Order hamper the orderly conduct of business
of Oakbrook Townhouses, Inc., and further, that members who wish to speak must
be recognized by the chair, that any motions are to be in writing and given to
the Secretary, that any member seeking to be recognized to speak on a motion or
to ask questions about any matter coming before the association will be limited
to 3 minutes per motion or question until all members who wish to speak have
had a chance to be heard…”
The
motion was seconded and passed.
Members in Attendance
Karch
welcomed residents in attendance and recognized members of the Board and asked
them to introduce themselves. He indicated
that Michelle Selberg and Chris Morris from Northwest Properties, Inc. were in attendance at the door. President Karch asked each resident to
introduce themselves.
2016 Annual Meeting Minutes
It was
moved to dispense with the reading of the 2016 Annual Meeting minutes, as they
had been sent to the membership with the meeting announcement. The motion was seconded and carried.
A
motion to approve the 2016 Annual Members’ meeting minutes as distributed to
the membership was made, seconded, and passed.
State of the Association
Karch
highlighted key elements surrounding the state of the Oakbrook Townhouses
association:
Property Values
Karch reported that the mean assessed value of Oakbrook
Townhouses rose 11.7% in 2016, following a 3.7% rise in 2014, and an 8.0% rise
in 2016, after the long slide since 2005.
Since assessed values are a lagging indicator to sale prices, our home
values are likely to look even better.
Mulching
During 2016 the Board completed the mulching of the entire
development, following a pilot project of 3 buildings. We expect the mulching to have a favorable
effect on water conservation, erosion, and weed prevention, in addition to the
favorable effect on the appearance of the community, which translates into improved
property values.
Landscaping Assessment, Policies,
& Plan
During 2016, the Board completed an assessment of
landscaping needs, adopted a landscaping policy, including guidance to members
on their rights and responsibilities, and began development of a landscaping
plan.
Slope Stability Study Update
The Board agreed to undertake a slope stability study to
update prior studies done in 2001-2003.
A contractor has been selected and will begin work shortly.
Roof & Gutter Leaks Assessment
The Board completed a 4-year assessment of roof and gutter
leaks, which showed the benefits of regular roof and gutter cleanings. Work to inventory all parts of the drainage
systems covering all buildings has begun.
It will be followed by a work plan to ameliorate immediate problem
areas.
Pre-payment of Insurance Premiums
The Board elected to begin a policy of pre-paying our
insurance earthquake and commercial premiums, which come due in May and August
respectively, to simplify budget planning for the following year.
Clean Audit
The Board secured another “clean audit,” complied with
generally accepted accounting practices, and was not subject to payment of
income taxes in 2016.
Online Bill Payment Option
The Board adopted an option to permit members to pay monthly
charges online. Several members have
already signed up to do so, and report positive results. Members should contact
the Northwest Properties office to learn more or sign up.
Reserve and Special Projects
Contributions
The Board continued its policy of making modest
contributions to our Reserve and Special projects accounts to reduce the
likelihood of future special assessments.
Mail-out Materials to Members
The Board adopted and distributed to the membership
materials on a variety of matters, including keeping trash containers hidden,
landscaping and other policies regarding approvals needed from the Board, smart
watering, raccoon control, running dogs, mailbox vandalism, joint community
cleanup, coyote sightings, winterization, and several others.
Board Approvals of Member Requests
The Board also approved, rejected, or proposed modifications
to a number of member requests on a variety of topics.
New Board Members
We experienced the re-election of Nancy Dilworth and Steve
Rinnan to the Board in January, 2016.
Priority Setting
During 2016 we built upon priorities from the customer
survey of our full membership carried out in 2014, seeking information on the
issues you felt were most important for the Board to address, and how well we
were doing on each. As reported last
year, this was the first customer prioritization and satisfaction survey known
to have been conducted for Oakbrook Townhouses members. The Board adopted a set of goals for 2016,
based on your priorities, and has been operating under those priorities
throughout 2016.
Ruby Apartments Proposal
Karch reported last year that a proposed apartment
development was withdrawn as a result of community opposition and the resulting
rezoning of the area abutting the western end of Oakbrook Townhouses. Although the developer is still able to
propose a single family housing development of up to about 12 homes on the
site, no such proposal has been forthcoming to date, and the fear of a large
apartment project has subsided.
Within Budget
The Board ended the year with a small budget surplus, which
enabled it to roll over sufficient income to satisfy a small budget shortfall
expected in 2017, and avoid again a dues increase or special assessment.
A Look to the Future
The Board is looking at a number of new initiatives during 2017. In addition to a keen recognition of the
financial constraints we have all operated under during the past few years,
carrying out the myriad of normal maintenance activities, we will update the
studies of slope stability last conducted in 2001-2003. We will also be refining our priority projects
list and assessing our outside contracts.
We will be assessing the success of our deck repair/replacement efforts,
our sprinkler system, our gutter and downspout maintenance and repair efforts,
and making needed contributions to the reserve and special projects accounts.
Reserve
Study
A reserve study is required by state
law for homeowners associations such as ours, to give members a “educated
guess” about potential year-by-year costs over a 30-year time frame. The Oakbrook Townhouses Board in 2009
undertook the first such study before the legislature completed its work on the
new law, undertook an interim review in 2011, and completed formal updates in
late 2012 and 2016. Members have been
sent, or have been offered copies of the full reports, and copies are made
available as part of material required to be provided to potential buyers of
our properties. In response to these
studies, the Board has recommended, and you have approved each year, modest
incremental contributions to our reserve account. The proposed 2017 budget includes an
additional contribution of $30,000.
Meanwhile, the Board has sought a
number of ways to avoid the high costs reported in the studies, which I call
“the big hitters” – those over $100,000.
These included 1) securing low bids from “hungry” contractors in the
slow economy; 2) doing much of the work ourselves through our regular operating
budget, using our general contractors; 3) assessing and deferring, where
warranted, projects; and 4) finding alternative ways of accomplishing project
objectives. I believe it will continue
to take this approach, which has been successful, and which the 2016 Reserve
Study endorsed. Copies are available to
all members, by request to Northwest Properties or any Board member.
A
Special Note of Thanks
Karch thanked the members who
stepped up to volunteer as a Board member; attend Board meetings; observe the
requirements of our bylaws, CC&Rs, and “house rules;” and volunteer to
assist on special projects. He also
thanked the staff of Northwest Properties and Edwin Wittstruck, our primary
maintenance contractor.
Members
brought up questions regarding the status of the Ruby Apartment project, the
condition of the vacant property, and the possibility of acquiring the property
for a park.
Budget for 2017 and Projected Budget for 2018
Pearcy
presented the proposal for the 2017 budget and indicated the projected 2018
budget is included, as required by law.
Copies were sent to all members with the meeting announcement, and were
available on the table at the entrance. Pearcy reported on the current
financial status, the reserve study requirements, insurance coverage and costs,
current operating expenses, capital improvements, utility costs, re-roofing,
dry rot, and painting needs, the reserve study requirement, and the slope
stability study.
The Voting Process
Karch
opened up the voting process. He
explained that there will be three items to vote on:
1.
The
2017 proposed budget is virtually the same as 2016. Monthly assessments will continue to be
$330.00 a month, if ratified.
2.
We
have four vacancies on the Board to fill, including three expired terms and one
vacancy arising from the Board member moving from the area. Two of the members
with expired terms (Glamba and McDonald) have expressed an interest in running
again, and the third chose not to. There
were no additional members nominated prior to the May 9 meeting, so only
Glamba’s and McDonald’s names appeared on the ballots sent out. There was also space for additional write-in
candidates.
3.
The
Board determined that the difficulties with achieving a quorum for the Annual
Members’ meeting the past 6-8 years required that we recommend to the
membership a modification to the quorum requirements to 23 members from 30
members, to allow the association to conduct its business. The proposal is consistent with both the RCWs
and the association’s governing documents.
Karch
asked for any other nominations from the floor.
Only members are considered to be eligible nominees. There were none and
the nominations were closed. A break was
called while the votes were counted. Two
Board members and two association members counted and certified the results.
Karch
reported the 2017 Board members election results as follows:
Glamba
– 34 McDonald
- 35
Karch
declared Glamba and McDonald were elected to serve on the Board. Karch welcomed
the elected Board members and indicated a Board meeting would be held
immediately following the Annual Meeting to elect officers for 2017.
Karch
announced the 2017 Budget ratification vote results as follows:
Yes – 36 No - 1
Karch
declared the proposed 2017 Budget ratified.
Karch
declared the bylaws amendment to reduce the Annual Members’ meeting quorum
requirement was approved by the vote of 35 to 3.
Karch
asked if there was any further old or new business to discuss. Hearing none he thanked all the residents for
attending.
Adjournment
It was
moved, seconded and approved to adjourn the 2017 Annual Member’s meeting. Karch
adjourned the meeting at 8:50 PM.
Note: Following the Annual Members’ meeting, the
new Board convened to elect officers for 2017.
The following officers were elected:
President Ken Karch; Vice President Al Glamba; Secretary Nancy Dilworth;
and Treasurer Jim Pearcy.
Approved,
for presentation to the membership for ratification, in 2018.
__________________________________________
Ken Karch, PE, Board President
