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Dakota Ridge Homeowners Association
Annual Meeting Minutes
April 29, 2024 at 4:00 PM
Owners Present: Nancy Jarchow, Sharon Pace, Julian Allan, Steve Hofman, Laura Hollingsworth, Justin Read, Ron Lemieux, Tomas Stone, Holly Van Deursen, Mike McCurdie, Marci Valicenti, Mike & Arlene Zopf, David Dennis, Mike Keating, Don Jackson, June Winward, Bill Noyes, John & Carrie Hayden, Jean-Luc Nauleau, Robert Turner, Audrey Anderson, Dana Thorne, Bev Brooks, and Althea Osborne
Present by Proxy: Lots 1, 10, 11, 12, 14, 20, 22, 23, 28, 30, 35, 38, 41, 42, 43, 49, 50, 51, 55, 56, 57, 58, 60, 63, 64, 65, 66, and 67
Others Present: Andrea Wilhelm and Selena Wathern, Commercial Property Group
Introduction and Establishment of Quorum
The meeting was called to order at 4:03 PM. With more than 50% of the ownership present or represented by proxy, a quorum was established.
Approval of 2023 Annual Meeting Minutes
With no revisions suggested by the ownership, Steve Hofman motioned to approve the minutes as presented in the packet. Ron Lemieux seconded the motion, and all were in favor.
Ratification of the Board Approved Budget for Fiscal Year 4/1/24-3/31/25
Andrea reviewed the financials for the fiscal year ending 3/31/24 noting that revenue ended the year at $271,000 versus a budget of $268,000 with the primary driver being a favorable variance in 3rd quarter water user fees. Admin expenses ended the year at $42,000 against a budget of $46,000, with the primary savings in Legal Fees due to funds budgeted for the completion of the Covenant amendments which are still in process. ARC Expenses ended the year under budget due to a lack of new construction. HOA Repairs and Maintenance ended the year unfavorably at $106,000 in expenses versus the budgeted $75,000 primarily driven by higher-than-expected snow removal costs and road maintenance expenses. The Water System Expenses ended the year at $68,000 to a budget of $96,000, with savings in Repairs, Operations, and Water Contractor expenses. Water System Expenses were budgeted conservatively based on all of the repairs required to the system in the prior year. $392,000 in Capital Reserve Dues were collected and Capital Project Expenses for the fiscal year totaled $374,000. The primary projects were the waterline replacement at the Agate/Aspen intersection and road improvements made to Upper Trail Ridge Road. A little over $10K was also spent on additional cluster mailboxes and the deposit for the mailbox structure. The balance of the Capital Reserve Fund at fiscal year end is $350,000.
Discussion occurred regarding the water meter pit installation project, the functionality of the water meters in the mountain climate, water meter power sources, real time monitoring, and possible unmetered irrigation usage. Scott Prochazka discussed the Water System repairs over the last few years noting that a higher-than-normal leakage rate has finally decreased because of the costly efforts, demonstrated by increased revenue, water flow metering, and a lower loss rate. The engineers have advised that the loss rate is now within - but very close to the high end - of an acceptable gallons per minute range for a system of this size and age will likely drift upwards over time. Once the loss rate reaches the threshold determined by the engineers, the Association should begin trying to identify leaks. The installation of the water meter pits will aid in identifying smaller leaks in service lines throughout the system or unmetered irrigation usage. Based upon owner feedback, Management will investigate the required power source for the meters to determine if it is powered by water flow but to CPG’s understanding, the meters are battery-powered.
Andrea presented the Board approved Operating Budget noting that the Shortfall Assessment from the prior year was eliminated, Water User Fees were increased based on last year’s actuals, and Association Dues were increased slightly. There is little proposed change in Admin/Other Expenses over the prior year. ARC Architect Fees were increased in anticipation of two upcoming new construction projects. Road Maintenance and Snow Removal were increased based upon prior year actuals. Water System Expenses were also decreased as the prior year budget accounted for significant engineering spending related to the waterline replacement project.
The annual Operating Dues will be $1,918, decreased $517 from the prior year and the annual Capital Reserve Dues will be $3,380, decreased $1,920 from the prior year.
Tom Chaney asked why the ARC expenses do not match the ARC income. Andrea explained that half of the $2K road damage fee ($1000) is recorded as a liability, not income, for the first 18 months of construction in case completion occurs before then. As architect fees are paid prior to the project, there is a timing delay in the offsetting revenue. She further stated that both the ARC income and expenses were budgeted conservatively but construction is expected to start on two homes within the next year.
Andrea presented the 24/25 Capital Reserve Budget which includes: $7,500 for 10 water meter pits within a $90,000 Water System budget, $10,000 for the completion of the installation of the mailboxes and enclosure, a $5,000 contingency for wildfire mitigation that may need to be conducted on the northern HOA common parcel, and a $5,000 contingency to backfill a sinkhole in the meadows that poses a safety threat. In total, the budget Capital Reserve expense is $105,000 compared to the prior year’s actual spend of $374,000.
Holly Van Deursen referenced the multi-year Capital Reserve Plan available on the homeowner portal, explaining the Association’s current guideline is to maintain a minimum of at least $300,000 in Reserves at all times which is approximately half the cost of a replacement water tank should the current one suffer an emergency failure. Holly encouraged the ownership to review the 10-year plan, available on the owner portal, noting that the plan was created based upon professional opinions from the road and water engineers as well as historical expenses. Discussion occurred regarding the interest rates on the savings accounts and how to maximize earnings, with Holly confirming that the Board will review available options again.
With no further questions or discussion, Neil Winward made a motion to formally ratify the 2024/2025 Budget as presented. Don Jackson seconded the motion, and all were in favor.
Election of Board Members
The seat currently held by Holly Van Deursen is up for re-election. Mike Keating made a motion to re-elect Holly Van Deursen to the Board to serve her final term. Steve Hofman seconded the motion, and all were in favor.
Committee Reports
Roads: Per Holly’s request, Andrea summarized the upper Trail Ridge Road project outlined in the Roads Report of the Annual Meeting Packet noting that the road needed to be rebuilt because it was exhibiting signs of significant deterioration, and the drainage was inadequate requiring modification. Due to the minimal traffic and steep slope, the engineer recommended chip sealing upper Trail Ridge Road for both traction and cost savings as the chipseal estimate was less than 1/10th the price of a full asphalt reclamation. The neighborhood roads are approximately 20 years old but have been well maintained by way of annual crack filling and sealcoating every three years with the road engineers reporting there may be about 10 to 20 more years of useful life left with proper maintenance. Discussion occurred regarding the chip seal application, loose gravel, deterioration from plowing equipment and the drainage modifications made to upper Trail Ridge Road, and general owner input in neighborhood projects. Owners are included in discussions when large projects impact their property, but owner input is not sought in cases where there is not an option, such as raising fire hydrants for life safety reasons. Andrea noted that she did speak with all three affected owners during the Trail Ridge project.
Covenant Review Committee: Ron Lemieux introduced the Covenant Review Committee report by noting that the Committee is close to completing their review and there has been good, conscientious participation of the involved committee members. The Covenant Review Committee packet will be distributed this summer and will include their recommendations for revisions, then a Town Hall meeting will be held with the Association attorney present to provide legal perspective on the changes and answer any questions, then the final package will be placed out for review and put to vote by the ownership.
Architectural Committee: Andrea reviewed the Architectural Review Committee report noting that 25 submittals were processed in the last year and reminding all owners of the requirement to complete a submittal for ARC review prior to beginning any modifications of the home or lot. Lot 15 will be starting construction on a new home this summer and the owner of Lot 43 is in the middle of completing their submittal for new construction.
Andrea welcomed the new owners who have purchased since the last meeting – Richard Little purchased Lot 43, Patricia & James Maibach purchased Lot 67, and Bob & Yvonne Watkins purchased Lot 5.
Adjournment
Holly Van Deursen made a motion to adjourn the meeting and Tomas Stone seconded. The meeting adjourned at 5:13 PM.
Submitted by,
Commercial Property Group
