DRAFT Annual Meeting
Minutes DRAFT
January 16, 2020
Oakbrook Townhouse,
Inc.
c/o Northwest
Properties Agency, Inc.
9527 Bridgeport Way
SW
Lakewood, WA 96499
The 2020
Annual Meeting of the Oakbrook Townhouse, Inc was held on Thursday, January 16,
2020 at the RMG Golf Club, 8102 Zircon Drive SW, Lakewood, WA.
President
Ken Karch opened the 2020 Annual Meeting at 7:07 PM. He reported that the quorum requirement for
the January 16, 2020 meeting had been met. Board members present included Al
Glamba, Ken Karch, Lew Mildon, Steve Rinnan, and Mike Tierney. Board members Dave
Hamann and Mike McDonald were 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 15, 2019 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 2019 Annual Members’ meeting minutes as presented to the
membership was made, seconded, and passed.
State of the Association
Karch reported on the state of the
Association (reprinted in full):
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 2020 rose 9.2%, following an 8.0% rise for 2016, an
11.7% rise for 2017, a 21.0% rise for 2018, and a 6.6% rise in 2019, after the
long slide since 2005. Total assessed
value of all 65 members units stands at a record $15,682,500, a 70% rise since
2015. Since assessed values are a
lagging indicator to sale prices, our home values are likely to look even
better. In fact, the last 8 recorded sales from 2017 to 2019 showed average
sale prices 21 percent above the respective assessed values at the time of the
sales.
Proposal for
Cluster Mailbox System
Last year you approved amendments to
the CC&Rs and Bylaws to permit a cluster mailbox system to be installed, by
creating “limited common areas.” Cluster
mailboxes have been installed, and now serve 55 of our 65 members. You are all aware that a lawsuit was filed by
a member in Building 4 which delayed installation of cluster boxes for 10 of
our members in Buildings 3 and 4. I am
pleased to announce tonight that papers have been signed to settle that
lawsuit, and members in those remaining buildings will see cluster boxes to
serve them installed within the next few weeks.
Re-Roofing of Buildings 1, 3, 4, 5,
and 6
Following an assessment of the conditions of roofing
materials on Buildings 1, 3, 4, 5, and 6, the Board authorized re-roofing of
these buildings, under warranty provisions, to provide new materials, without
cost to the association. Re-roofing of
those buildings was completed in 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 is a primary cause of
roof leaks. The Building 11 job was
completed, and was successful in removing ponded water during and after heavy
storms. The Board took action to
re-roof three other flat-roofed buildings (#7, #8, and #9) during 2019, and I
can report tonight that those reroofing jobs have been completed. These reroofing jobs considerably depleted
our Special Projects reserve account, but did not require a special assessment.
The Board will be considering re-roofing of the remaining flat roof buildings
(#10 and #12) during 2020.
Inventory of Rear Drainage System
Our 2018 slope stability study, reported on last year,
recommended certain inventory and repair work on our rear area drainage
system. During 2019 the Board contracted
to have the rear drainage system video inventoried, problems identified, and
repair work completed. That work has
been completed, and for the first time, Oakbrook Townhouses has a map of its
rear drainage system, allowing further study of gutters and downspouts as
potential causes of member concerns of leaks.
Driveway Replacement
During 2019, the Board authorized, awarded bids, and
completed work on four additional driveways.
New Issues
During 2019, the Board
1.
adopted three additional policies
to clarify the respective responsibilities of homeowners and the association,
on dryer vents, on rear and side common areas, and on front common areas;
2.
requested a lot-specific
structural damage assessment from a professional engineering firm, and,
following that, approved a proposal from a contractor to pursue work at 7513
Zircon, expected to be complete by the end of January, 2020;
3.
was made aware of numerous violations
of the CC&Rs and Bylaws at 7509 Zircon, submitted demand letters to the
owner to correct the violations, and engaged an attorney to pursue litigation,
the first at least in recent memory, and perhaps ever. The home has been red-tagged by the City of
Lakewood, has been vacated, and is rumored to be in foreclosure;
4.
re-adopted a set of criteria for
prioritizing the work of the association, and adopted a set of goals for
2019;
5.
switched
insurance brokers to Mike Englund of Gallagher
Insurance;
6.
conducted an assessment of vegetation
obscuration for owners backing out onto Zircon Drive, and contracted for
trimming or removal of vegetation at six locations;
7.
filed the
CC&R amendments approved by the membership at the
January, 2019 Annual Members’ meeting; and
8.
issued approvals for a variety of issues, including a gas line extension,
fence approval, bat control, and garage damage repair; and carried out a
variety of routine maintenance activities.
Ruby Drive Development Proposal;
Chambers Creek Trail
During 2019, the Board reviewed information regarding 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 followed 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 2019, the Board 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 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 CC&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. During
2019, the Board developed policies to clarify the respective responsibilities to
the rear, side and front common areas
New Board Members and Officers
We experienced the re-election of Steve Rinnan; election of
Mike Tierney; and appointment of Lew Mildon to the Board during 2019, all for
terms expiring in 2022. Officers elected
for 2019 were Ken Karch, President; Al Glamba, Vice-President; Carol Rehnberg,
Secretary; and Jim Pearcy, Treasurer.
Following Rehnberg’s sale of her property, Mike Tierney was elected
Secretary. Following Pearcy’s untimely
death, Mike McDonald was elected 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 2019 we built upon priorities from the customer
surveys of our full membership carried out in 2014 and in 2019, seeking
information on the issues you felt were most important for the Board to
address, and how well we were doing on each.
The Board adopted a set of goals for 2019, based on your priorities, and
has been operating under those priorities throughout 2019.
Reserve Study
A reserve study is required by state law for homeowners
associations such as ours, to give members an “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
2020 budget includes an additional contribution of $30,000.
During 2020, the Board will undertake its next triennial
reserve study.
New Disclosure Statement
Last year, the Washington State legislature approved
modifications to the law governing HOAs, by requiring preparation of disclosure
statements outlining the Board’s expectations over the next 5 years. A copy of Oakbrook Townhouses’ disclosure
statement was included with the mail-out to all members, and copies are
available at the sign-in table. Many of the specific numbers in the disclosure
statement are expected to change once the 2020 Reserve Study is complete.
The legislature also adopted a provision regarding budget
approval which overrides the provisions in our CC&R and Bylaws. The new provision provides that the
Board-adopted budget is approved unless a majority of the unit owners, in
person or by proxy, reject that budget, and this provision does not require a
quorum. This is a significant departure from the ways budgets have been
approved in the past at Oakbrook Townhouses.
Copies of the State of the
Organization report were available at the sign-in table, and are available to
the membership
Treasurer’s
Report
In Treasurer McDonald’s absence,
Karch showed various charts showing the downswing of assessed values from 2009
thru 2014 and the subsequent upswing thru 2019, and that recent sales have
averaged 21 percent above the assessed value.
He also indicated that there have been no dues increases since 2014. The
2019 year-end balance sheet shows regular
expenses of $313,785 versus a total income of $253,244, the difference being a
result of a net drawdown on our Reserve and Special Projects accounts for the
roofing work completed in 2019. We also experienced
unanticipated and unbudgeted legal costs. In response to question on recovering
legal costs, Karch indicated that the settlement discussions provided for both
parties to cover their own costs. He indicated there may be additional legal
costs on other issues during 2020, and that the Board has provided for this in
the adopted budget, and that some legal costs may be recoverable as part of
lien actions.
Vote
on the 2019 Budget
Karch announced it was time to vote
on the 2019 budget.
The Board has adopted a modest
increase in the monthly charges (now called monthly assessments) to $345 from
the current $330, the first such increase since 2014. The Board is not proposing a Special
Assessment. The 2020 budget, along with the expected 2021 budget, were sent to
members with the Annual Members’ Meeting announcement. Also included in that
mailer was the Board adopted budget disclosure statement required by the new
state law.
Members who have already sent in their
ballot and were satisfied with their vote were told they don’t need to do
anything. Members were also told they
could receive a new ballot, or retrieve their mailed in ballot.
Following the count of ballots and
proxies, Karch announced that the proposed budget had been ratified, since a
majority of members did not reject it.
The actual vote of members attending or by proxy was 21 votes in favor
and 7 against.
Vote
on Board Members
Karch stated that the terms of
office of two Board members, Al Glamba and Mike McDonald, were due to expire at
the meeting, and opened the floor for nominations for Board members. The nominations
of Al Glamba and Mike McDonald were moved, seconded, and approved. Also moved, seconded, and approved was the
nomination of Richard (Rick) Boulware. 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: Al Glamba, Mike McDonald, and Rick
Boulware were elected to three-year terms.
A write-In vote was received for Kathy Johnson (who declined to serve).
Members welcomed the two returning
and one new Board member.
Old
Business - None
New
Business
A member asked about, and was told
that, copies of the Board adopted vent policy (as well as all policies adopted
by the Board could be obtained by calling Northwest Properties.
A member inquired about the
possibility of canceling the Comcast cable TV contract, was told that the Board
considered this matter several years ago, and concluded that the downside was
too great. A summary of information secured
at that time will be provided as an attachment to the next Board minutes, and
further Board discussion will occur.
In response to a question about the
road work occurring along Zircon Drive to the east of Oakbrook Townhouses,
there were conflicting reports, with the most likely being related to Verizon
cable services. Further information will
be secured and distributed.
A member inquired whether progress
had been made on adopting a fines policy, and was told that further Board
discussions are planned, since the Board has been conflicted to date. Members should make their views known on this
question to any Board member.
A member asked about noise
limitations covering the period of construction of the single family dwellings
in the current open space. Best previous
information indicated that local governmental noise controls for construction
are in place from 10 PM to 7 AM. A
member suggested the Board request a representative of the City or the
developer to attend a Board meeting to update the Board on progress.
Adjournment
It was
moved, seconded and approved to adjourn the 2020 Annual Member’s meeting. Karch
adjourned the meeting at 8:33 PM.
Note: Following the Annual Members’ meeting, the
new Board convened to elect officers for 2020.
The following officers were elected:
President Ken Karch; Vice President Al Glamba; Secretary Mike Tierney, and
Treasurer Mike McDonald.
Approved,
for presentation to the membership for ratification, in 2021.
__________________________________________
Mike Tierney, Secretary
__________________________________________
Ken Karch, PE, Board President
