Estes Park Mountain Fairways HOA

Jun 25th Minutes 5/25/22

 EPMFHOA Board Meeting

AgendaTime: May 25, 2022 01:00 PM Mountain Time (US and Canada)

Attendees: Rick Jordan, Susan Novy, Nan Belkamp, Pete & Linda Hogue, Gary Dougherty,
via Zoom: Ronnie LaRue, Max & Yvonne Salfinger, Becky Valthoen, Pamm Hagland, Nipan Karmachurya

1. Call to order.1:03

2. Secretary
   1. January Board Meeting Minutes –They were approved at the March meeting
   2. March Board Meeting Minutes – deferred to next meeting
3. Finance 

Status and Report – Pete.  

Treasurer’s Report 05/25/22:

FINANCIALS AND FINANCIAL SITUATION

1) The 4/30/22 financials are completed and on the website. 

2) Our finance team prepared the MF 2022 Revised Budget material for review and approval at the 

    3/13/22 board meeting. The material was approved with modifications that resulted from the 

    discussion of how to manage our 2022 challenge related to insurance expenses. The changes have 

    been made and the revised documents distributed to the board members.

3) Your 2022 finance team is made up of 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) which is due to 

     resignations and retirements during 2021 – with no one else stepping up to improve our resource 

     situation.

4) Your financial secretary and treasurer have planned for, and have finished implementing, the 

     transition from our 2021 fiscal year to our 2022 fiscal year (both of which are calendar years)

5) Our team will be meeting soon to get involved in two activities in the near term:

    a) determining whether to invest some of our funds in safe investments (CD’s, MM accounts) given 

        the fact that the ROI for those types of instruments is improving

    b) determining what type of financial review should be done this summer. 

MONTHLY ASSESSMENTS

We have one owner that is in arrears for their May 2022 assessments. We have one other owner that needs to finish out a partial payment of a late fee.

SHOW US THE MONEY!

	As of April 30, 2022
BOC Checking	$99,280.46
BOC Operations Savings	3,757.94
Fidelity Operations Savings	6,476.41
Fidelity Reserve Savings	84,504.89
TOTAL	$194,019.70

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

4. Planning & Practices Team 
   1. Pete made a process observation about how things are presented to the board. Being that Susan is both the secretary and on the insurance team, it was unexpected that she presented options for changing the way we pay our individual portion of the insurance premium.

5. B&G 
   1. B&G Report to Include Homeowner concerns Rick sent in his May 23, 2022 Questions about grounds conditions email – Nan 

6. Old business
   1. Insurance questions to American Family – Insurance Committee will add more questions to Danielle for more clarification.

While walking by American Family Insurance a few months ago, Susan stopped and talked to Danielle about our increase and found the following:

1.The increase has to do with raising the dollar amount per square foot for replacement cost to $250.00/ S.F. from $148.00/S.F.

The process for formulating the premium amount starts with taking the square footage of units plus the garages plus the porches. (whatever is under the roof). These figures are taken from the Accessor’s Office information.

That number is 70,375 square feet for all the buildings. That number is multiplied by the $250.00 replacement cost to equal the amount of insurance we should cover. The insurance company has a multiplier that includes the number of buildings and how many are duplexes and triplexes and our deductible. When the multiplier is applied to the amount of insurance we should cover, we get the $34,000.00 annual premium.

2. The only way we can reduce our premium is to increase the deductible. Our current deductible is $1000.00.

3. American Family Insurance has a guarantee of full replacement value regardless of whether the amount is more than $250.00/S.F. provided we keep the amount we should insure at the 70,375 x $250.00 = $17,593,750 of coverage.

4. She doesn’t expect that the Marshall Fire will affect our premium any day soon, as they were at the bottom of suggested coverage and we’re already at the top of mountain town coverage. (county is more) She does expect that the residential insurance in the valley will skyrocket.

5. She mentioned that most of her HOA’s with various sized units have switched to charging unit owners by the percentage of the premium of insurable square footage of the HOA’s various unit sizes.

This prompted Susan to come up with the proposal below in New Business.

HOA Guests policy draft and discussion – Business Practice will take this further to come to some resolution. Our rules and regs need updating.

Professional Property Management (PM) research status – Pamm and PM Research Team

EPMFHOA Report To Board – Professional Property Management Status

• June 6, 2022 10:00 a.m. EPMFHOA Property walkthrough with Lisa Rosenhagen and Property Management Research team.
  • Will ask Lisa for a detailed document explaining what she/her company can do for us.
  • Lisa to provide a cost for services.
• Post June 56 meeting Property Management Research team to meet to discuss meeting.
• Property Management Research team will present to the Board their request to proceed with hiring Lisa (or not). 
• If EPMFHOA approves hiring Lisa as our Property Manager, we (EPMFHOA) will still have representation, which will include at least EPMFHOA:
  • President
  • Vice President
  • Secretary
  • Treasurer
  • Operations Director

7. New Business
   1. Insurance charges allocation proposal – Susan

Our current manner of calculating the insurance premium is based on an arbitrary $5.00 monthly difference between the three sized units; small, medium and large. The size of the units is based on interior square footage without the garage or porches included in order to come up with which units are in which category.

Susan put together 2 charts to have easy access to the sizes and HOA responsibile areas of the units. She noticed (when calculating the sizes including garages and porches, like the insurance companies would do, that the difference between the smallest of the small units and largest of the medium units is 500 s.f..  The difference between the smallest of the large and largest of the large was also 500 s.f.. She proposes to only have 2 tiers for insurance; the one levels, and the two levels, and splitting the premium according to the percentage of each of the tiers’ square footage by the number of units in the tier. It seems that so long as the premium was under $10,000.00 the $10 split between small to large was accurate. Now that the premium is up to $34K, with 1/3 of the units almost twice as large as the other 2/3 of the units, a $5.00 difference doesn’t seem appropriate. (to Susan, anyway)

So Susan’s proposal is to have only 2 tiers and split the premium by percentage of square footage per tier and then by the number of units in the tier. This would be more like the way an insurance company would do it and less arbitrary.

This proposal was tabled until a future meeting.

8. Schedule next meetings: in June, date to be determined.

9. Adjournment: 2:43

Posted in Minutes 2022 by Susan with no comments yet.