EPMFHOA Board Meeting 1/30/22

MFHOA Board Meeting APPROVAL PENDING

30 January 2022 1:00 PM MT

Zoom

ATTENDEES: Rick Jordan, Susan Novy, Ronnie LaRue, Nan Belknap, Becky Velthoen, Leigh Dawson, Linda Hogue, Peter Hogue, Nipan Karmacharya, Arleta Bell, Anne Poznic, Pamm Haglund, Aaron Voberil, Yvonne & Max Salfinger, Lori Calnon

  1. Call to order. 1:00 pm
  1. Secretary
    1. Approval of EPMFHOA Board Meeting 9/19/21  Add Becky as an attendee and B&G report
    2. Arleta moved to accept the minutes with changes, Pamm 2nd. Passed.
  1. Finance 
    1. Approve the MF 2022 revised Budget Worksheet. (this is the final revision after the meeting) Pete went over the new budget dealing with the increased amount of insurance and reduction of other line items due to the actual 2021 numbers now being available. B&G did not have any input in this document. Pete acknowledged, and created this according to past protocol. We still have snowplowing bills being paid for 2021 that haven’t been included, so 2021 is not quite complete. Pete then suggested to go back to what we had in July for the budget and include new information later. Ronnie moved to accept the changes, as mentioned; Pamm 2nd. Passed.
    1. Treasurer report – Pete.

Treasurer’s Report 01/30/22:

FINANCIALS AND FINANCIAL SITUATION

1) The 12/31/21 financials are completed and on the website.

2) Your treasurer (myself) and financial secretary (Becky) have done a cash reconciliation for the full 2021 year. All monies (revenue and expense) reconcile to the penny!

3) Your 2022 finance team is made up of five positions (financial secretary, treasurer, finance team chair, B&G representative, member-at-large)and four folks (Becky Velthoen, Linda Hogue, Ronnie LaRue, and Pete Hogue). While not the desired situation our three key positions/roles (financial secretary, treasurer, and finance chair) are currently held by two folks (Becky & Pete). This is due to resignations and retirements during 2021 – with no one else stepping up to improve our resource situation.

4) Our finance team has prepared the MF 2022 Revised Budget material for review and approval at the board meeting. 

5) Your financial secretary and treasurer have planned for, and are implementing the transition from our 2021 fiscal year to our 2022 fiscal year (both of which are calendar years)

MONTHLY ASSESSMENTS

We have two owners that were in arrears for their December 2021 assessments coming into the year. One of the two situations also has late fees involved. Those two situations have not yet been resolved as we have processed the January revenue to date.

We also had two owners that pre-paid (one annually, one monthly) their 2022 assessments ($4,977).

SHOW US THE MONEY!


As of December 31, 2021 
BOC Checking$21,162.11
BOC Operations Savings     3,757.48
Fidelity Operations Savings   6,475.84
Fidelity Reserve Savings   84,504.69
TOTAL$115,900.12

The logical split of the monies is 2021 operating $26,418.43 & 2021 reserve $84,504.69 & prepaid 2022 assessments $4,977.00 [operating total is $31,395.43]. 

Pamm moved to accept the treasurer’s report, Ronnie 2nd. Passed

  1. Review (instead of Approve) the financial plan for dealing with the previously unplanned for $16,000 increase in insurance costs this year.  PRIOR to approving any financial plan for dealing with this, both Ronnie and Pamm want to speak to the board. This was tabled until the discussion (#6) about the increase of insurance from 17K to 33K for 2022.
  1. Planning & Practices Team 
    1. Pete moved that the board be responsible for recruiting the needed teams and committees until we decide otherwise about needing them; Ronnie 2nd. Passed.
  1. B&G 
    1. B&G Report – Nan  Not much happening besides snow removal. There was a couple of small work orders fulfilled; an outdoor light tightened and a blown off vent cover replaced.
  2. Dealing with the previously unplanned for $16,000 increase in insurance costs this year – All Board Members.
    • Review Pete’s MS 2022 Insurance Problem & Toolkit Worksheet.
    • Discussion and decision.
    • Rick had talked to our insurance company (American Family) as well as State Farm. State Farm doesn’t want HOA business and raised their rates sky high to deter it. He also talked to other associations and found many of them use American Family because they can’t find anywhere else less expensive. He mentioned that the reason for the increase is because the insurance company needed to update the cost of rebuilding to $250/s.f. which brought our new premium up to a 33K premium with coverage of 17M+ (ours was at $148/s.f. with a premium of $17K for 70,350 square feet of units and the premium coverage of 10M+). This brings our policy up to fully insured, where they can then offer their clause of covering extra expense if they’re wrong about the rebuilding price. (Susan followed up with American Family a couple days after the meeting and Danielle mentioned that American Family is the only company to offer that clause, but only if we’re insured for the $250/S.F. Also she doesn’t think the Marshall Fire (1000 homes burned to the ground in a day – Dec.30,2021) will affect our next year’s premium because we’re already at the height of fire risk up here. They were at the low end of risk down there and will probably see a great rate hike.)So bringing the square footage price for rebuilding to current levels is the primary reason for the increase; not fires.
    • Susan had an idea of postponing the painting for the remainder of the buildings for 6 months each section. Being that the Brodie buildings are scheduled for the fall of 2022 at a cost of 45K, moving that to the spring of 2023 would greatly increase our cashflow options for the next few years. B&G had earlier decided to use 7-10 year paint for this 5 year paint cycle in order to increase the length of time between paintings resulting in extra income for the number of years over this 5 year cycle and when we paint again, and keep dues level. Susan was trying to take advantage of the some of the future cashflow savings earlier by just shifting the timing of the painting by 6 months. Pete shut this idea down saying legally we can’t take money out of reserves and put into operations without loaning it to ourselves and then paying it back the next year. The “loan” makes the shifting of reserve to operating funds legal.(Susan thinks that would be fine)
    • Ronnie had a budgeting idea that wouldn’t require a loan by just changing the amount in some of the existing line items which seemed plausible to all those in B&G as he presented it. Pete moved to accept Ronnies plan, Nan 2nd. Passed.
  1. EPMFHOA Professional Management – Pamm and Rick
    1. Review information Rick received from Mountain Golf. HOA management duties (off the record, Susan thinks we should copy this document (with a few changes) and use it for our own description of HOA management duties, should we decide to continue with self management) This is the document the management company for Mountain Gold HOA (to the west of us) uses. They charge approximately $600/month for management.
    2. Impact to EPMFHOA Board and Committee structure. yes.
    3. Impact to existing EPMFHOA documents. yes, automated.
    4. Board vs Homeowner decision.Some of the board feels we need our homeowners workshop with all the HOA owners to go over options for both the 2023 budget dealing with insurance, and possibly hiring a management company. Later in the meeting Rick didn’t think that was necessary as that is the board’s duty. It does give us some reason for the owners workshop, though. It would just need to be prior to the annual meeting instead of after.
    5. Develop committee to move forward. The initial “potential outside management” committee will consist of Pamm, Yvonne, Pete, Anne, Susan, Lori, Nan and Ronnie. Pamm will organize the first meeting. Susan had looked into what HOA management software costs ($50+/month) and has a demo coming that we can review. At least we would be able to see what kind of software a management company would use, or if it could streamline our self management.

  • Old business
    1. Letter from Board to all homeowners reminder of EPMFHOA short-term rental policy. Pamm recommended that we send this out again. The board is clear that we don’t allow short term rentals and that we will not regulate owners rights to have friends and guests staying in their unit for free. The board also isn’t wanting to take action without proof. Pete moved that Lori and Becky work on figuring out how to determine friends/guests from short-term renters when the owner isn’t present. Ronnie 2nd.Passed.
  1. Schedule next meeting: tentatively Mar 6, 2022, time to be determined.
  1. Adjournment: 2:50 pm (at least that’s the time Susan, the secretary, left the meeting to get to work)

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