DRAFT Annual Meeting
Minutes DRAFT
January 15, 2019
Oakbrook Townhouse,
Inc.
c/o Northwest
Properties Agency, Inc.
9527 Bridgeport Way
SW
Lakewood, WA 96499
The 2019
Annual Meeting of the Oakbrook Townhouse, Inc was held on Tuesday, January 15,
2019 at the RMG Golf Club, 8102 Zircon Drive SW, Lakewood, WA.
President
Ken Karch opened the 2019 Annual Meeting at 7:05 PM. He reported that the quorum requirement for
the January 15, 2019 meeting had been met. Board members present included Al
Glamba, Dave Hamann, Ken Karch, Jim Pearcy, Carol Rehnberg, and Steve Rinnan.
Board member Mike McDonald was out of town.
Members in Attendance
Karch
welcomed residents in attendance and recognized members of the Board and asked
them to introduce themselves. He indicated
that Bill and Pat Price from Northwest Properties, Inc. were also in
attendance. Karch asked each resident to
introduce themselves.
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.
2018 Annual Meeting Minutes
It was
moved to dispense with the reading of the January 18, 2018 Annual Meeting
minutes, as they had been sent to the membership with the meeting
announcement. The motion was seconded
and passed.
A
motion to approve the 2018 Annual Members’ meeting minutes as presented to the
membership was made, seconded, and passed.
Members
indicated interest in the results of the slope stability study, tree trimming/cutting,
and the latest Ruby Drive Public Development District proposal.
State of the Association
Karch reported on the state of the
Association, as follows:
Property Values
While no one likes to pay taxes, I am pleased to report that
the mean assessed value of Oakbrook Townhouses for taxes due and payable in
2019 rose 6.6%, following an 8.0% rise for 2016, an 11.7% rise for 2017, and a
21.0% rise for 2018, 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.
Proposal for Cluster Mailbox System
Following concerns expressed by members of mail theft and
mailbox vandalism, the Board in 2018 undertook a study of the potential for a
cluster mailbox system, and is proposing actions needed to amend the
Declaration of Covenants, Conditions, and Restrictions and the Bylaws to allow
it to proceed with implementation of such a system. The proposal was submitted to the membership
in March and received positive response; and a summary of work to date and
plans for 2019 were provided to the membership as part of the mailing for the
Annual Members’ meeting. Member approval tonight of both amendments is
necessary to permit the plans to move forward, with completion expected during
2019.
Re-Roofing of Buildings 7, 8, and 9
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, thereby eliminating the ponding which causes roof
leaks. The Building 11 job has been
completed, and has been successful in removing ponded water during heavy
storms. This project provides the basis for similar re-roofing work on the 5 remaining
flat-roofed buildings. In 2018, the
Board updated its study of roof leaks since mid-2016, and agreed to seek
proposals for tapered roof systems for Buildings 7, 8, and 9. Proposals have been secured from two
contractors, but several other roofers have declined to submit proposals, citing
several reasons. Given that we have been
able to secure only two proposals, the Board wishes to consider moving ahead
with analysis of the proposals and awarding of contracts for tapered roofs
systems for one or more of the three buildings.
Funds are available to carry out the work in our Special Projects
account without seeking a dues increase or special assessment. The Board would
describe the method for selecting the winning contractor(s), in accordance with
the Bylaws contracting procedure.
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. The Board expects to consider an additional
top dressing in 2019.
Inventory of Drainage System
The Board received from our general contractor a partial
inventory of our gutter, downspout, and drainage system. The Board also secured information on
sanitary and storm sewer stubs and received, photographed, and digitized a
number of sets of original plans for the development. Further work is expected during 2019.
Slope Stability Study Update
During 2018, the Board contracted with, and received, a
slope stability study from GeoResources, updating similar studies completed in
the 2001-2003 time frame. The study
found no significant changes since the earlier studies, but made
recommendations for improvement in five areas, which were identified and
mapped, and copies of the study were sent to the membership in June. The Board is expected to take action to
implement improvements in 2019.
Driveway Replacement
During 2018, the Board authorized, awarded bids, and completed
work on four additional driveways, and modified its selection of finish from a
smooth brushed finish to an exposed aggregate finish.
2-Foot right-of-Way Assessment
During 2018, the Board completed a re-assessment of the
compliance with requirements to provide a 2-foot right-of-way behind and
between all buildings for fire and maintenance access, and found all properties
to be in compliance.
Adult Family Homes; Ruby Drive
Development Proposal; Chambers Creek Trail
During 2018, 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. The Board also learned of, and
will follow, plans for a 2.5 mile walking trail along the north side of
Chambers Creek from Kobayashi Park to the Chambers Creek Road trailhead.
Miscellaneous Items
During 2018, the Board adopted a revised set of specifications
for tree trimming on the steep slopes above Chambers Creek; 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. We closed our safe
deposit box after scanning all documents in it, and turned all documents
over to Northwest Properties, which has a secure location for them. We distributed our Smart Watering,
Winterization, and other guidance documents to the membership. 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 and Officers
We experienced the re-election of Dave Hamann, Ken Karch,
and Jim Pearcy to the Board in 2018, all for three-year terms, and the election
of Carol Rehnberg to a two-year term.
Officers elected for 2018 were Ken Karch, President; Al Glamba,
Vice-President; Carol Rehnberg, Secretary; and Jim Pearcy, Treasurer.
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 past years,
and is likely to do so again in the event new members are elected to the Board.
Customer Survey and Goals
During 2018 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 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 2018, based on your priorities, and
has been operating under those priorities throughout 2018.
During
the presentation of the state of the organization report, members expressed
interest in several topics. Members
asked that prior to the next top dressing of mulch, that they be notified so they
could be prepared; that further information be provided on ownership of the
property behind the development and liability for trespassers; that additional
review and action be taken regarding erosion of the walking area behind the
units; that processes be adopted for requests for modifications in the common
area; and that one or more locations be investigated where trees had fallen or
been felled by our contractor..
Treasurer’s
Report
Karch reported that, 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 members.
Pearcy reported that Oakbrook
Townhouses expenses were within the budget for 2018; that prepayment of some
items (such as insurance) and other actions suggests that we will be able to
maintain the current level of dues at $330 per month for 2019, and possibly for
2020, representing a 7-year run with no increase.
Budget for 2019 and Projected Budget for 2020
Karch reported that members have
received the budget summary table in the mailing that went out a month
ago. It shows the proposed budget for
2019, and an estimate for 2020. This
sheet shows the current status of our overall budget accounts, as of December
31, 2018. We have adequate funds to meet
normal operating expenses, maintenance and special projects expenses, and a
modest contribution to our reserve account.
During late 2018 the Board noted
that the projected expenses for 2019 exceeded the income we expected from a
continuation of our dues structure at $330 per month by about $6,200. We were faced with proposing a small dues
increase for 2019, cutting back on maintenance or other costs, or transferring
a limited amount of unexpended funds from 2018 to 2019, thereby obviating the
need for a dues increase or work cutback for 2019. We chose the latter option, and are therefore
not proposing a dues increase for 2019, nor a special assessment. Our 2020 projection is included on the 2019
budget spreadsheet, and is expected to be virtually the same as 2019.
Reserve
Study
Karch reported that 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. Members have been sent, or
have been offered, copies of the full reports (the most recent was completed in
late 2016 for 2017), 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 the membership has approved each year, modest incremental
contributions to the 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 are
called “the major projects” – 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.
The Board is expected to continue to take this approach, which has been
successful, and which the 2017 Reserve Study endorsed. Copies are available to all members.
Vote
on the 2019 Budget
Karch announced it was time to vote
on the 2019 budget.
The Board is proposing a flat budget
for 2019, to remain at $330 per month. Members have all received a copy of the
proposed budget in the mail-out announcing the Annual Meeting, and there were
additional copies available at the check-in table.
Karch asked three members from the
audience to count and certify the count on the budget.
If members have already sent in their
ballot and are satisfied with their vote, they don’t need to do anything.
Members may receive a new ballot, or
retrieve their mailed in ballot.
Following the count of ballots and
proxies, Karch announced that the proposed budget had passed with 25 votes in
favor and 1 against.
Vote
on Board Members
Karch opened the floor for
nominations for Board members. The nominations of Steve Rinnan and Mike Tierney
were moved, seconded, and approved.
There were no other nominations. It was moved, seconded, and approved to
close the nominations.
Following a count of ballots and
proxies, Karch announced the results: Steve Rinnan was re-elected to a
three-year term, and Mike Tierney to a 2-year term. Write-In votes were received for Kathy
Johnson (who declined to serve) and Paul McFadden. The Board will contact Mr. McFadden to
determine his willingness to serve, prior to certifying his election.
Vote
on Amending the Oakbrook Townhouses Declaration of Covenants, Conditions, and
Restrictions (CC&Rs)
Karch reported that an amendment to
the Oakbrook Townhouses Declaration of Covenants, Conditions, and Restrictions
was necessary to permit the Board to move ahead with the cluster mailbox
proposal.
Following a count of the ballots and
proxies, Karch announced that the amendment had passed on a vote of 21 for, 4
reject, and 1 abstention.
Vote
on Amending the Oakbrook Townhouses Bylaws
Karch reported that an amendment to
the Oakbrook Townhouses Bylaws was necessary to permit the Board to move ahead
with the cluster mailbox proposal.
Following a count of the ballots and
proxies, Karch announced that the amendment had passed on a vote of 18 for, 4
reject, and 2 abstentions.
Old
Business
There was none.
New
Business
There was none.
Adjournment
It was
moved, seconded and approved to adjourn the 2019 Annual Member’s meeting. Karch
adjourned the meeting.
Note: Following the Annual Members’ meeting, the
new Board convened to elect officers for 2019.
The following officers were elected:
President Ken Karch; Vice President Al Glamba; Secretary Carol Rehnberg,
and Treasurer Jim Pearcy.
Approved,
for presentation to the membership for ratification, in 2020.
__________________________________________
Ken Karch, PE, Board President
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