State
of the Association
For
Oakbrook
Townhouse’s Annual Members’ Meeting
January
18, 2018
Prepared
by Ken Karch, PE
President
I
am pleased to report on the state of the Association. I will only highlight a few items.
Property Values
While
no one likes to pay taxes, I am pleased to report that the mean assessed value
of Oakbrook Townhouses rose 21.0% in 2017, following a 3.7% rise in 2014, an
8.0% rise in 2015, and an 11.7% 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.
Quorum Change
During
2017, after we failed to secure the necessary quorum for the January Annual
Members’ meeting, the Board proposed, and the membership approved, at its May 9,
2017 “redo” meeting, a modification to the quorum requirements in the Bylaws to
require 23 members present in person or by proxy to constitute a quorum.
Mulching
During
2017 we completed a top dressing of mulch for the entire development, following
a pilot project during 2016. 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.
Re-Roofing of
Building 11
During
2017, the Board approved a pilot project to re-roof Building 11 in a manner
which provides a slight slope to the roof to promote improved drainage. The job has been completed. The project is
expected to provide the basis for similar re-roofing work on the five remaining
flat-roofed buildings.
Inventory of Drainage
and Assessment of Mailbox Systems
The
Board also authorized our general contractor to inventory our gutter, downspout,
and drainage system; and to assess the condition of our mailbox system.
Driveway Replacement
During
2017, the Board authorized, awarded bids, and completed work on five additional
driveways, and modified its selection of finish from an exposed aggregate finish
to a lighter colored and smoother brushed finish.
Adult Family Homes
and Ruby Drive Development Proposal
During
2017, the Board reviewed information regarding the establishment of adult family housing in Oakbrook, and a
proposal to develop the Ruby Drive open space, formerly occupied by a
clubhouse, swimming pool, and tennis courts, as a Planned Development District
(PDD) of 16 new single family residences, in accordance with the rezoning of
the plot by the City of Lakewood.
2-Foot Right-of-Way
Assessment
During
2017, the Board completed an assessment of compliance with requirements to
provide a 2-foot right-of-way behind and between all buildings for fire and
maintenance access, and sent non-compliance letters to 14 owners. A re-inspection revealed several properties
still in non-compliance, on which work will be conducted as necessary, with
owners billed, as provided for in the Declaration of Covenants, Conditions and
Restrictions (DCC&Rs).
Purple Plum Tree;
x-Purple Plum Tree; Ivy Infestation Trimming
During
2017, the Board also completed its biennial trimming of the purple plum trees, its
periodic trimming or felling of vegetation and selected trees, and inventoried
and cut ivy on a large number of trees in the Chambers Creek gully.
Other Board Actions
During
2017 the Board also agreed to undertake a slope stability study to
update studies done in the 2001-2003 time frame, after a prior contractor
arrangement failed; pre-paid our insurance premiums; secured a “clean
audit” with no income tax owed; and continued our practice of making modest
contributions to our Reserve and Special projects accounts to reduce the
likelihood of future special assessments.
Approval, Rejection,
or Proposed Modifications of Member Proposals
We
also approved, rejected, or proposed modifications to a number of member requests
on a variety of topics.
Clarification of
Association vs. Member Responsibilities
During
the past few years, the Board has become aware of many actions by members who
have not secured prior Board approval as provided for in the DCC&Rs,
Bylaws, or House Rules. Such actions
have included vegetation modifications; fence and deck construction; window
replacements; garage door modifications; driveway and sidewalk issues; and
construction of structures in the common area, which is owned and useable by
all members. The Board has developed
policies to clarify the respective responsibilities in several of these areas,
and is expected to address several others in the next year.
New Board Members
Al
Glamba and Mike McDonald were re-elected to the Board in 2017. Tonight we have six positions to fill on our
9-member Board.
During
2017, the Board felt the loss of one of its members, Dave Hamann, for a two
month period, due to a bicycling accident.
Dave is with us again. Also in 2017, Nancy Dilworth resigned as a Board
member.
Board Member
Orientation
As
a means of bringing new Board members up to speed as quickly as possible, and
providing a review for existing members, the Board carried out a series of
Board member orientation meetings during 2014 and 2015, and is likely to do so
again in the event new members are elected to the Board.
Customer Survey and
Goals
During
2017 we built upon priorities from the customer survey of our full membership carried
out in 2014, seeking information on the issues the members felt were most
important for the Board to address, and how well we were doing on each. As I reported last year, this was the first customer
prioritization and satisfaction survey ever conducted by Oakbrook Townhouses
members. The Board adopted a set of
goals for 2017, based on your priorities, and has been operating under those
priorities throughout 2017.
A Look to the Future
But
enough of the past. Your Board is
looking at a number of new initiatives during 2018. 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 driveway; roof; and deck repair/replacement efforts; our
sprinkler system; our gutter and downspout maintenance and repair efforts; our
tree trimming efforts; and making needed contributions to the reserve and
special projects accounts.
Treasurer’s Report
Following
Mike McDonald’s resignation as Treasurer in 2015, the Board elected Jim Pearcy
its new Treasurer. He and Mike prepared
the budget information which was mailed to you.
You’ve
all received the budget summary table in the mailing that went out a month
ago. It shows the proposed budget for
2018, and an estimate for 2019. This
sheet shows the current status of our overall budget accounts, as of December
31. We have adequate funds to meet
normal operating expenses, maintenance and special projects expenses, and a
modest contribution to our reserve account.
This
year you will note that the projected expenses for 2017 exceeded the income we
expected from a continuation of our dues structure at $330 per month by about $4,300. We were faced with proposing a small dues
increase, cutting back on maintenance or other costs, or transferring a limited
amount of unexpended funds from 2017 to 2018, thereby obviating the need for a
dues increase or work cutback. We chose
the latter option, and are therefore not proposing a dues increase for 2018,
nor a special assessment. Our 2019 projection
is included on your budget spreadsheet, and is expected to be virtually the
same as 2018. I am hopeful the Board
will not have to propose an increase for 2019.
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.
You 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 2018 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.
