Oakbrook
Townhouses, Inc.
c/o Willow Properties 253 581-5199
9527 Bridgeport Way SW chris@willowproperties.com
Lakewood, WA 98499-2801
DRAFT
Annual Meeting Minutes
January
20, 2026
Oakbrook
Townhouse, Inc.
c/o
Willow Properties, Inc.
9527
Bridgeport Way SW
Lakewood,
WA 96499
The
Oakbrook Townhouses 2026 Annual Members’ meeting took place January 20, 2026 at
the Steilacoom Community Center, 2301 Worthington Street, Steilacoom, WA 98388.
Quorum
President
Glamba reported that materials returned were not sufficient to constitute a
quorum for the Annual Members’ meeting. He requested members to call their
neighbors to secure a quorum. Following
successful efforts to secure a quorum, he called the meeting to order at 5:21 PM.
Attendance
Board
members attending in person were Al Glamba, Dave Hamann, Ken Karch, and
Jonathon Welsh. Also attending was Carrie Snyder of Willow Properties. Members
attending were given a chance to identify themselves.
Meeting Rule
It was
moved, seconded and approved that “…the meeting be generally governed 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 on the
motion have had a chance to be heard…”
2025 Annual Member Meeting Minutes
It was
moved, seconded, and approved to dispense with the reading of the minutes of
the 2025 Annual Members’ Meeting. It was moved, seconded, and approved to
approve the minutes of the 2025 Annual Members’ Meeting.
2026
State of Oakbrook Townhouses, Inc.
by
Al Glamba
In 2024 we made significant progress in reducing both the
number of unit owners who were delinquent on their monthly dues and the amounts
of those arrearages. However, in 2025 we
regressed back again. As of December 31,
2025, the arrearages totaled $12,385.61, representing ten unit owners who are
not current with their monthly dues and fees, with three of those unit owners
in arrears on their monthly dues and fees in an amount exceeding
$1,000.00. One of those three unit
owners is in arrears on the monthly dues in the amount of $7,357.50, against
which unit we have filed a lien for the arrearages and attorney fees . The Tax Assessor’s Office has also
foreclosed on its tax lien against that parcel of real estate. Under Section 84.60.010 of the Revised Code
of Washington the tax lien has the highest priority of the liens. In the month of November of each year the Tax
Assessor’s Office conducts an auction of those parcels that are in foreclosure
and establishes a minimum bid amount for each parcel. The amount of each bid is also required to
cover all tax arrearages, penalties, fees, and interest. If the minimum bid amount is not reached, the
parcel reverts to Pierce County, which places those parcels at auction at another
time. Last year, 35 parcels were placed
up for auction in Pierce County, but there were many more parcels that were in
foreclosure at the beginning of that year.
Many of those parcel owners decided that it is better to sell those
parcels of real estate rather than allow them to proceed to an auction by the
Tax Assessor’s Office, and it is hoped, that the unit owner against which we
have filed a lien will decide to do the same and pay off both the tax lien as
well as our
lien from the proceeds of the sale.
The
costs of building materials, utilities, and services have gone up. As a result, the Board of Oakbrook
Townhouses, Inc., has voted to increase the monthly dues $25.00 per month from
$450.00 per month to $475.00 per month, starting in February 2026 to account
for those increased operating costs, as well as to meet its major obligations
for major maintenance, repair, and replacement of 55-year-old reserve component
items for 2026. The Board also expects
to increase the monthly dues $25.00 per month in 2027 in preparation of some
major project expenses, like dry rot removal and repainting the siding of all
the buildings two or three years down the road, depending upon the condition of
the siding at that time. It is hoped
that with the increased revenue stream, we can avoid imposing special
assessments for the costs of those major projects.
Insurance costs and taxes represent the largest
slice of the 2026 Budget, representing 28.2% of the total budget for which we
have budgeted $104,305.00. The next
largest slice of the 2026 Budget is the cost of utilities, representing 16.0%
of the total budget, for which we have budgeted $59,060.00. Third on the list is repair and maintenance
costs, representing 11.3% of the total budget, for which we have budgeted
$41,980.00. Fourth on the list is
maintenance reserve projects, representing 10.2% of the total budget, for which
we have budgeted $37,700.00. That is
quickly followed by the administrative costs and landscaping and grounds
maintenance, which represent 7.5% each of the total budget, for which we have
budgeted $27,705.00 and $27,578.00, respectively. The former includes a major reduction in
projected legal costs, due to the settlement of the fire lawsuit. Our planned contributions to the Reserve and
Capital Improvement accounts represent 19.4% of the total budget, for which we
have budgeted $71,622.00, a portion of which will be spent on the maintenance
reserve projects mentioned above. The
total amount of all these budget amounts, including that for the Reserve and
Capital Improvements accounts for 2026 is $369,950.00.
With
the removal of the Federal Pacific Electric Co., electrical panels from
Oakbrook Townhouses, with certain exceptions, banning the use of wood burning
fireplaces, the certification that all the unit owners have workable and
accessible fire extinguishers, the 25-foot restriction on the use of barbecues
within all building structures, and the maintenance of a three-foot clearance
of all tree branches from the roof and building structures, we were able to renew
our insurance policy with Arden Insurance Services and USLI for fire and
general liability insurance for Oakbrook Townhouses, Inc., for $80,455.00, keeping the same
$50,000.00 insurance deductible in place.
However, since the Board did not have sufficient funds to pay our fire
and liability insurance premiums all at once as at times we have done in the
past, the Board had to resort to paying the insurance premiums on an
installment plan. Even the premium on
our earthquake insurance policy is projected to increase from $22,636.00 to about $24,000.00 next year. The insurance industry is still dealing with
the heavy losses incurred with all the natural disasters that have taken place,
including the wildfires that have taken place in Los Angeles County, and some
insurance carriers still continue not to provide new insurance policies to the
homeowners in Florida and California because of the high insurance risks and
the high replacement costs involved in those areas.
To
further reduce fire risks unit owners are again reminded that combustible
material-soaked rags do not need an open flame to burn. Those combustible material-soaked rags may
spontaneously combust in the presence of heat and oxygen. So, unit owners are requested to exercise
extreme caution when using those materials.
The
cost of providing landlord basic cable television service for our unit owners,
which we are required to provide pursuant to the Declaration of Covenants,
Conditions, and Restrictions of Oakbrook Townhouses, Inc., and the Bylaws of
Oakbrook Townhouses, Inc., is projected to remain stable with costs as a result
of the execution of our negotiated renewal agreement with Comcast from $24,507.00 to $27,315.00. However, the cost of providing water is
projected to increase from $23,140.00
which amount may or may not have included the six bi-monthly billings to about
$29,988.00. The actual billing will
depend upon how much water we use. Our
governing documents require us to provide fire, liability, and earthquake
insurance coverage for the exterior of buildings and the Common Area; landlord
basic cable television service; and water to our unit owners, which represents
a substantial portion of the total budgeted expenditures of Oakbrook
Townhouses, Inc.
This
year the Board negotiated with Willow Properties for a new property management
agreement and was able to lock in the monthly property management fees for both
2026 and 2027. A major factor in
selecting Willow Properties as the provider of property management services for
Oakbrook Townhouses, Inc., was the fact that Willow Properties can keep track
of our uncompleted work orders and locked in its management fee for a two-year
period.
The
Board received a draft 2021 Audit Report for Oakbrook Townhouses, Inc., from
Newman CPA and is working with Willow Properties to provide documents or
explanations for the auditors for the few remaining open items during 2021 when
COVID-19 was ravaging the country and well as the world, financial statements
were not provided to the Board on a regular basis, and Board business was
conducted mostly via the internet (per
guidance from the Governor’s office),
during which there was also the transition of property managers from Northwest
Properties Agency, Inc., to Willow Properties.
The
Board made deposits of $2,000.00 each month into our Reserve and Capital
Improvements accounts, respectively, which over the years have been depleted
and need to be built back up. For 2026
we have budgeted $2,000.00 to be contributed to the Reserve and Capital
Improvements accounts, respectively.
Although the 2023 Reserve Study has projected relatively low
expenditures for the next two years, the succeeding next five years is
projected to have very high expenditures for dry rot management, another round
of external painting, as well as garage roof, rear deck, and water sprinkler
repair and maintenance. The garage roofs
especially are reaching the end of their twenty-year useful lives and will need
to be replaced in the next four to eight years as projected in the Reserve
Study. For all these projected future
expenses the Reserve and Capital Improvements accounts, respectively, will need
to be replenished to cover all these projected expenses.
The
litigation for the fire damage claim has been settled during mediation. As a result of the settlement, which is
subject to the terms of the below confidentiality agreement, Oakbrook
Townhouses, Inc., has been paid $72,000.00 in damages, and the lawsuit against
Oakbrook Townhouses, Inc., has been dismissed with prejudice. The amount of the payment covers almost all
of the legal expenses incurred by Oakbrook Townhouses, Inc., from our two law
firms over the past four years.
The
confidentiality agreement states as follows:
The
parties agree to keep the terms of this Settlement Agreement confidential. Each party, however, may reveal these terms
to its respective lawyers, tax advisors, accountants, and insurers, instructing
them to comply with this provision, and may reveal terms in response to valid
legal process. Oakbrook may further
disclose the terms of this Settlement Agreement to its board and its management
company (Willow Properties) and its members, instructing them to comply with
this provision.
I am
happy to report that since the Board strategically placed reflective tape on
our cluster mailboxes, none of our cluster mailboxes have been decapitated or
even damaged during the past year.
The
Board had P.D.Q. Construction replace one rear deck and the adjoining dry
rotted boards of that rear deck.
Further, P.D.Q. Construction presented a written report to the Board
assessing the conditions of all the rear decks that were surveyed and
identifying those rear decks that needed immediate replacement. Further, the Board also had three garage roofs
with major water leaks replaced this year.
In
addition, during the past year the Board had a large White Magnolia Tree in
between two driveways cut down and hauled away, which tree roots were damaging
the concrete of the two adjoining driveways, had 27 purple plum trees pruned,
and had vegetation that was obscuring the vision from our driveways cut back,
as well as cutting back tree branches that were brushing up against the
buildings.
During
the past year, the Board also had to repair lateral breaks, replace spray
heads, nozzles, a swing arm, and a control valve to our aging irrigation
system. The irrigation system will need
more and more attention as it continues to age and break down.
The
Federal Corporate Transparency Act, which was enacted to prevent money
laundering, terrorist financing, corruption, and tax fraud, has been suspended
for domestic organizations, corporations, and U.S. citizens. Nevertheless, the members of the Board of
Oakbrook Townhouses, Inc., met the filing requirements last year and submitted
the necessary documentation electronically to the Financial Crimes Enforcement
Network, in case the suspension is lifted.
Section
64.38.110 of the Revised Code of Washington authorizes lot owners to consent,
in writing, to receive electronically transmitted notices and the attached
documents from the Board and the Association via e-mail instead of through the
United States Postal Service. However,
that consent may be revoked at any time by delivering the revocation, in
writing, to the Association. Thus, those
unit owners wishing to partake of this e-mail delivery option need to submit a
written request to Willow Properties, requesting to opt into e-mail delivery of
notices, minutes of the monthly Board meetings, and the attached documents in
lieu of delivery by the United States Postal Service. Those unit owners who do not submit such a
request will continue to receive notices, minutes of the monthly Board
meetings, and the attached documents from the Board and Willow Properties via
the United States Postal Service. Willow
Properties has filed a notice of disclaimer regarding drop box payments. So, unit owners are urged to bring in
payments to the office of Willow Properties and request a receipt for the
payments, or to use automatic bill pay for its monthly dues, but beware of the
monthly dues increase this year, if ratified by the general membership at this
year’s Annual Meeting.
Although
the electronic filing of federal income tax returns for Oakbrook Townhouses,
Inc., in 2021 through 2024 resulted in no federal tax liability for Oakbrook
Townhouses, In., that cannot be said for tax year 2025. In 2025 Oakbrook Townhouses, Inc., opened a
share certificate for $100,000.00 for a twelve-month period with an annual
percentage yield of 4.25%. For the
interest generated from that share certificate, as well as for the damage
payment received from the mediation, that income will be subject to being taxed
by the Federal Government at the 30% rate established for homeowners associations.
2026
promises to be an exciting year ahead for Oakbrook Townhouses, Inc., in which
we hope to have some stabilization of what our costs are to provide fire,
liability, and earthquake insurance for Oakbrook Townhouses, Inc., so that we
can budget better for those large expenses.
As always, we plan to use the Reserve Study as a guide to prioritize our
work requirements, but we need to replenish the coffers of our Reserve and
Capital Improvements accounts, respectively, so that we have sufficient funds
to pay for those large looming expenses down the road. Further, the Board will need to develop and
adopt a five-year plan, as well as to establish the annual goals for 2026. The Board needs to do all that, but at the
same time, the Board will need to perform the regular repair and replacement of
member requests for assistance with all those items for which the Board bears
responsibility to perform.
The
Board is currently operating at the bare minimum required by the Bylaws of
Oakbrook Townhouses, Inc., of four members.
The Board is also operating without a Vice President, and the Board
needs a few new members to devote a minimum amount of time to serve their
fellow members and to ensure the Board’s continuation as a viable and vibrant
entity. Thus, we request all unit owners
to give serious consideration to serving on the Board. During the past year we have held our monthly
Board meetings at the Lakewood Public Library, which has worked out well for
us, and the Board expects to continue to use the Lakewood Public Library for
our future monthly Board meetings, providing a regular meeting place for our
Board meetings, and providing continuity to the location of our monthly Board
meetings. Finally, I call upon all the
unit owners at Oakbrook Townhouses to step forward and offer to serve on the
Board during the exciting years ahead when we will be planning for our major
projects ahead.
Treasurer’s Report
Karch presented
the Treasurer’s Report, as follows.
2025 Financial Data
You
will have noticed on the table a copy of the December 31, 2025 financial data
for the Association, in the form of a page showing the balance sheet and income
statement for the past year. It was not mailed to you earlier in December as
the end of the year had not yet occurred.
We finished the year with our Operating Account at about $53,895, our
reserve and insurance set aside accounts at about $290,872, and our Accounts
Receivable account at about $12,371.
2026 Budget
You
also received in the mail a copy of the Board-adopted 2026 budget, along with a
document explaining the State-legislature adopted process for rejecting a
budget adopted by the Board for HOAs.
To get
to the 2026 budget, the Board reviewed expenses from 2025, projections for
2026, the Board-approved goals, the new reserve account received a little over
a year ago, and projections of the general level of inflation. A chart of Oakbrook Townhouses budgets from
2001 thru 2026 is attached. Attached
below is a chart showing indices of cost increases, all tied to 2005 = 100, of
the US Rate of General Inflation (169.28); Social Security adjustments
(168.88); Pierce County Assessor’s Assessed Valuation for all Oakbrook
Townhouse properties (254.33); and the total Oakbrook Townhouses dues and
assessments (151.74).
You
heard a first cut at the Reserve Study from Al at the 2024 Annual Meeting, and
the Board has done further study on it this year. We are entering a 4-year period of relatively
low expenditures, but anticipate large expenditures during the following 5
years, for a dry rot repair and re-painting job, additional rear deck
repairs/replacements, garage roof replacements, and sprinkler repairs. We were fortunate to conclude mediation on
the 2020 fire issue in 2025. We also face a high level of uncertainty about
insurance costs. It is important that we rebuild our reserves to accommodate
those higher expenditures.
Incidentally,
you may receive a copy of the most recent Reserve Study from Willow Properties
without charge for an electronic copy, or at $0.15 per page (it goes 55 pages).
The
result is the Board-approved budget for 2026 in an amount of about $369,950,
resulting in a needed increase in monthly charges to $475 from $450.
2027 Budget Estimate
The
Board is also required to provide an estimate of the projected 2027
budget. This is shown in the December,
2025 mailing you should have received of about $389,450.
Annual Audit
You
heard from Al that we have received a draft copy of the 2021 Annual Audit. Once the final version is received and
reviewed, the Board intends to order the 2022 Annual Audit.
Five Year Plan
In late 2018, the
Board developed and reviewed a several page Five Year Plan. The plan included data from the then newly
completed 2017 Reserve Study. The plan
has been updated, using new data provided in the 2023 Reserve Study. The Board
is reviewing its implications. This is an opportunity for new Board members to
contribute.
RCW Required Disclosure to Members
RCW 64.38.025 requires an annual financial disclosure to the membership,
based on results of the most recent Reserve Study. This needs to be continued annually. The most recent document has been mailed to
the membership with the December, 2025 mailout
Budget Ratification
Glamba declared
that the Board had adopted a 2026 budget which increased the monthly charges to
$475 from $450 per month per member, but without a special assessment. He further stated that the process for
rejecting a Board-adopted budget was determined by the State legislature and
trumped the provisions in our CC&Rs and Bylaws. Furthermore, he stated that there have been
insufficient votes by the membership to overturn the Board-adopted budget, and
that the Board-adopted budget for 2026 is therefore ratified.
Board Member Elections
Glamba noted
that the terms of Glamba and Welsh were up in 2026, and both had indicated a
willingness to be re-elected to three year terms. Glamba asked for any nominations from the
floor to serve on the Board for 2026. A
motion and second were made to elect Marq Tillman to the Board. It was moved, seconded, and approved to elect
Glamba, Welsh, and Tillman to three year terms ending in 2029.
Member
Comments
Member comments
included the need to address parking.
Glamba indicated the Board would be addressing this issue during
2026. When asked whether the members
wished to discuss color choices for the painting job to be undertaken in the
2028-2030 time frame, members demurred.
Old Business
None
New Business
None
Adjournment
It was moved, seconded, and approved to adjourn the
meeting. Glamba announced adjournment of
the meeting at 6:14 PM.
Respectfully
submitted,
Al
Glamba, President
