Finance & Legal Committee Minutes – June 8, 2015
Present: Directors Ron Denney, Mike Wardle, and Dennis Christianson. Also present were Tallia Booker (GM-Ex Official), Bob Hayes, JC Colley, Jillaine Maes, Donna Thompson, Gene Root, and Ron Mueller.
Absent: Director Bob Meikle, and members Kathy Dietz, Kathy Lynch, and Jim Vandel.
- Review the Independent Auditors Report for CY 2014
- Review SVRA financial report for April
- Discuss VRBO’s at the Ranch
- Discuss status of vacated lots (Cedar Creek pavilion area and others)
- Discuss status of Member Center with recommendations to move forward
- Review spreadsheet for Golf Course Equipment replacement fund and its utilization for budgeting in years forward
- Review Airstrip activities (Silverstar easement, plans to get a survey, plan to control access with fence, issues with trailer parking)
- Discuss process for which major Maintenance Fund will be utilized
- Time for board members to bring up issues
In the absence of Chairman Bob Meikle, Director Ron Denney started the meeting with the 9 items on the agenda.
A, and B. Auditors Report and Financial Report
GM Tallia Booker handed out the Financial Reports, which included the Independent Auditor’s Report. Tallia reported the auditor’s financial statements of SVRA, which comprised the statement of financial position as of December 31, 2014, and 2013, and the related statements of activities and changes in our net assets, functional expenses, cash flows for the years ended, and the related notes to the financial statements.
It was suggested that Tallia add a cover sheet with a glossary of abbreviations as well as an explanation sheet for those areas that had a variance of more than 10% of expected budget. She was also asked to send the monthly reports to the committee members in advance of the meetings so they could review the documents before the meetings. Jillain will send the email addresses of the committee to Tallia. The reports were tabled for discussion next month.
C. Discuss VRBO
A complaint was filed by Robert Palmquist on a violation of DCC&Rs. The VRBO (Vacation Rentals by Owner) website is advertising rentals on the Ranch which violates the DCC&Rs for single family residents and the prohibition for the operation of a commercial business.
A proposal has been filed with the Lincoln County Commissioners and Zoning Commission to address the VRBO problem.
Gene Root moved that the F&L committee recommend to the BOD that we table any further action until the County makes their decision. In addition, that in the meantime, that the BOD notify those people that we know of that are in violation by letter and by adding the information to our Website. Jilliane Maes seconded the motion. After some additional discussion, the motion passed unanimously.
- Vacated Lots – Ron Denney
Gene Root handed out the Town’s Zoning Ordinance on Single Family Residential, with “NONCONFORMING USE” which includes the 4 lots by the swimming pool. The “NONCONFORMING USE” designation acknowledges a specific, grand fathered, nonconforming use of the lots.
Ron Mueller handed out a map showing Plat 17, Lots 11,12,13,& 14, which are designated in the Town’s Zoning Code as Single Family Residential Special Use. SPECIAL USE (PRIOR AND GRANDFATHERED) means a USE that does not conform to the zoning requirements of the area in which it is situated, existing before the effective date of this Ordinance and planned for permanent continuation of the USE. (Ord. 2012-06; 9/11/2012).
Ron Denney: The lots that we’re going to talk about are the lots by the swimming pool, the putting green, and on number 7 tee box at Cedar Creek. Those lots were provided to the Association by the developer for common activities. Before I got here the Association proceeded to getting those lots vacated. The county agreed those that those lots are vacated, meaning they are vacated because they are common.
Ron Mueller: No, they didn’t say that, they didn’t oppose them being vacated. The county attorney wasn’t present at the meeting to rule whether it was legally and properly done. But they were vacated.
Ron Denney: According to the county records they are vacated. So those lots are no longer single family residential lots.
Gene Root: Yes they are still single family; vacating lots doesn’t remove them from the DCC&Rs. They are listed as single family and are still recorded as single family. Vacating doesn’t remove them from the DCC&Rs. Gene talked to the Mayor and she can’t do anything about removing the vacated lots from the DCCRs, she said no that would have to go through the courts.
Donna Thompson: Donna wanted to share what she knows from owning a title company for 31 years. She said that, if all the owners of the plat were to sign and agree, they could change the designation of any lot. All the owners of the plat must agree to modify.
Tallia Booker: She talked to Mayor Kathy Buyers who stated that in order for us to rezone a lot that basically there would have be some sort of a change. We maybe want to go the Town P&Z Board with a plan on what we want to do on those 4 lots. The plan is that we want to move the playground equipment (to lot 14) so the kids are safer. We could take our plan to the P&Z Board, with what we are looking to do, and have the Town Council vote on it. However, it would be still be single family residence with nonconforming use.
Gene Root: We have one choice, get a Declaratory Judgment, go to a judge and get it done right. A Judge is the only one that can settle the issue on the DCC&Rs. It’s a better spending money this way, rather than doing it wrong and getting sued.
Jillaine Mayes made the motion that the F&L committee recommend to the BOD that they instruct our lawyer to prepare paperwork for a Declaratory Judgment to remove the lots in question from residential, single family use. Gene Root seconded the motion with the provision that the lawyer used is the one that knows and understands HOA law. After additional discussion, the motion passed unanimously.
E. Member Center
Ron Denney: At the last Board meeting there were comments that we should have a vote and get moving forward. There is a lot of sentimental feeling about the Barn, and some like it. It has no winter use. When I first moved here there was a restaurant, a bar and the Barn was one large facility for meetings.
In order for the membership to approve a capital expenditure – passage requires a 2/3 majority of the members present at the meeting in person or proxy. A quorum of 60 % is required at the meeting. If the quorum is not met, another meeting may be called that would require 30%.
There was discussion on a Special Assessment, how to pay for it, and the cost of the building. Tallia said that we have about 1.2 million in the bank that could be used on the Barn. The rest would have to be borrowed.
What we need are numbers on the various options of Member Center development. We need to get a cost estimate on the various designs. Before the members vote, they have to know what the costs are on all the options.
We could make recommendations that the BOD move forward with designs and pricing, so that the members know their options, what the various options would cost and how they would be paid for.
F. Golf Equipment
Tallia presented a spreadsheet that shows at least $44,500 being set aside each year for the replacement of golf equipment, so if there is an unexpected break down, we can replace it. She also produced a spreadsheet with replacement plans for the next several years.
The right of way for Silverstar propane tank has to be at least 100 feet from the well. There is an issue boundaries, so the BOD is getting a survey done to make sure we have all the boundaries correct.
The next item is we have is the issue of people parking trailers at the entrances without authorization. It was suggested that a gate be installed to keep vehicles from parking in areas where they are not intended to be parked.
There was discussion of parking RVs that cannot be parked on individual lots on the airstrip, and other possible locations. There was the question that LVI still has some ownership, and has sold lots along the airstrip. Discussion centered the logistics of parking there, whether there was sufficient space for everyone and how it would be maintained in way it would not distract the esthetics of the Town and the Association.
It was suggested that parking of RVs on the airstrip could help solve a lot of our DCC&R problems. Others thought it would cause new problems.
Bob Hayes: He has presented to the BOD a proposal on the use of the airstrip, and turn it into an asset. Part of his plan is to set aside a secure area for parking and storing RVs.
H. Major Maintenance Fund
The BOD has started to look where the items should be put on the Major Maintenance priority list. Part of the problem here is whether or not the money should be expended on renovation of the Association office and the Barn. This goes back to the question whether or not the a new Member Center will be built. In the meantime the BOD like suggestions for items to be added to the list. No one had any suggestions at this time.
I. New Business
Mike Wardle asked that the members review the recommended Requirements for Returning to the original DCC&Rs that were included in the Voting Mail out
There being no other new business, the meeting was adjourned.
Recording Minutes: Ron Mueller and Jillaine Maes
“A committee is a thing which takes a week to do what one good man can do in an hour”