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Dakota Ridge Board of Directors Meeting
October 25, 2023 @ 8:30am via Zoom
Present: Ron Lemieux, Holly Van Deursen, Carrie Hayden, Bill Noyes, Scott Prochazka
Others Present: Andrea Wilhelm and Selena Wathern, Commercial Property Group
Following a brief executive session, the meeting was called to order at 8:55am. With all Board members present, a quorum was established.
Financial Review
The first order of business was a review of the year-to-date financials through 9/30. Holly noted that after the first two quarters of the year, the Association is running about $15K ahead of budget in Net Operating Income. The key variances greater than $1K are the following:
• $1050 DRB revenue – unfavorable
• $3901 Legal – favorable but may increase on 2nd half of fiscal year due to covenant amendments
• $2868 Snow Removal – unfavorable due to late spring 2023
• $1611 Water System Operations - favorable
• $3614 Water Contractor – favorable
• $9044 Water System Repairs & Maintenance – favorable
• $1555 Sign repair -- favorable
In Capital Projects, the HOA spent $237K vs. a budget of $248K in Water System Improvements (primarily the waterline replacement project) and $116K vs. a budget of $185K in Road Improvements (primarily Upper Trail Ridge).
Cash assets total $341K as of 9/30 with another $88K billed on 10/1 for quarterly Operating and Water User Fees and $66K billed on 10/1 for quarterly Reserve Dues. All accounts are within the $250K FDIC limit with the exception of a $218 surplus in the Yampa Valley Bank account. The 10/1 Water User Fees were billed about $5K higher than budget which will be another favorable variance, however the annual road maintenance invoice from RMA is expected to be about $10K higher than budget.
Ron asked a question about whether Capital Reserve Dues would be reduced or remain at the current level in next year’s budget. Andrea shared the CIP from last year ballparking them at $250K, which is approximately __% less than the amount charged this year and explained that with no further/anticipated capital spending this year, the Capital Reserve balance should be back up to approximately $370K at the end of the fiscal year on 3/31/24. We will look at the medium-range spending forecast in early 2024.
Water System Updates
Andrea reported that the waterline replacement project is fully completed with all invoices paid in full. The $10K project for pumphouse renovations (roof replacement and painting) has been deferred until at least next year per Tim Gibbon’s suggestion. The Q3 water loss was 10.5GPM but appears to be back down to 7-7.5GPM as of Sept/Oct now that irrigation season is over. CDC will be coordinating a baseline water loss test in the coming weeks where the holding tank is filled at the end of the day, the pumps are shut off overnight, and CDC will analyze the loss rate in the hours during which there should be minimal to no usage (12-5am). From there, the Board can decide whether to proceed with systematic testing of each main line section as was conducted last fall in order to locate the two service line leaks. There was additional discussion of the meter pit project, informally slated to begin next year per the Capital Improvement Plan. Before next year’s budget season, Andrea was asked to revisit two questions with CDC: 1) Mike Zopf’s concern about meter pit effectiveness in this climate; and 2) how to prioritize the meter pit installations presumably with the longest service lines first, excluding groups of homes where the water use is consistent with meter readings at the pumphouse, PRVs and homes.
Road Updates
The Upper Trail Ridge chip seal was completed in late September and prior to the Board meeting, Andrea provided NWCC’s final evaluation report of both the drainage and the chip seal work, indicating that both were performed to specifications. Some Board members expressed concern about the amount of loose/unswept gravel left on the road so the Board may decide to revisit the question of a fog coat next year to further protect the surface. Andrea also reported that Brian Len now feels the chip sealing of the rest of the neighborhood can wait at least two more years and/or until the next scheduled sealcoating cycle. Rocky Mountain Asphalt performed the annual crack-filling and mastic work in early October and used three pallets of mastic instead of the previous one pallet which is why the invoice is expected to be about $10K over budget.
ARC Updates
Andrea reported there had been a total of 20 submittals since the beginning of the fiscal year - half of which involved tree removal and the other half comprised of roof replacements, exterior painting, and deck/foundation work. The ARC and Board recently approved a roof variance request for new construction sketch plans for Lot 15 with support/justification from the ARC’s consulting architect (Eric Smith & Associates). Andrea said she was also expecting new construction plans including a building envelope change request for Lot 51. Lastly, the owners of Lot 43 are reportedly working on a sketch plan submittal for new construction.
CRC Committee
Ron said he was working on compiling the final comments from the CRC’s last meeting into the final draft to send to Paul Sachs for one more compliance review. Once complete and presumably before the end of the year, a copy and letter will be ready to send to the homeowners and an informational meeting is recommended in order to answer questions and encourage owners to vote in support of the revisions. Holly asked whether the CRC decided to allow detached structures and fences. Andrea shared the final recommended language allowing only greenhouses as detached structures and fences in the case of safety or tree protection – both with certain parameters.
Other Business
Andrea reminded the Board of two recent lot sales – the Watkins purchased Lot 5 from David Fields and the Maibachs purchased Lot 67 from the Ells.
Ron revisited a concern about the Association’s potential liability exposure for outside road users including cyclists and other athletes. In the absence of the Board’s ability to pinpoint any other current users besides SSWSC, Andrea will follow up with SSWSC to get a waiver signed.
Ron also brought up the sinkhole in the middle of the south meadow which CPG was unable to locate. Holly volunteered to stake it and take another picture, but CPG said it would likely be next summer before a vendor could access and fill it with dirt.
Ron asked if there was a way to merge the old DRHOA.org website with the new AppFolio homeowner portal without losing all the historical documents. Andrea said CPG would be happy to consolidate them and asked how many years’ worth of minutes and financials the Board would like in AppFolio while the older items will remain on CPG’s server. The Board felt 10 years was sufficient and Ron made a motion to proceed with consolidation, Holly seconded the motion, and all were in favor.
There was a brief recap of the September neighborhood social event, and the Board suggested a similar event to be held in the winter. Holly said she would get back to CPG with some suggested dates for a survey.
The next Board meeting was set for February 7th at 8:30am and the meeting adjourned at 10:15am.
Recorded by,
Andrea Wilhelm
Commercial Property Group
