2017 Annual Meeting Minutes

PINE RIVER RANCHES LANDOWNERS ASSOCIATION

ANNUAL MEETING MINUTES

JULY 15, 2017

Clay Residence 580 Pine River Ranch Circle, Bayfield, CO 81122

 

While waiting for members to sign in, President Jim Clay introduced new members Janice and John Walker, Kara Bradford, and Sean Devereaux.

 

The meeting was called to order at 9:15.   President Jim Clay explained that a reason for starting the meeting so early was that the Board had anticipated having a long discussion on the revised By-laws.  Those revisions are not ready to be presented to the members for a vote as they are still a work in progress.  Jim Clay introduced the board members:  John Dustin, Pat Le Roy, Angie Pommier.  Waterman Ormsby lll is unable to attend the meeting.  Jim Clay acknowledged the following persons for their contributions to the Association:  Richard Diedrich for maintaining the pond area like a park; Nancy Young who maintains the website; Chip Burkett who helped spread gravel and fill potholes.  Lots of people do lots of things to make this a great place to live.  He thanked the CC&R review committee – A. J. Boyle, Angie Diedrich, John Wickman, Chip Burkett, and Stephanie Mc Cain.  They met a couple of times a month during the winter and spring and also consulted with the attorney.

 

The minutes from the July 9, 2016 Annual Meeting were distributed to all landowners.  Jim asked if there were any additions or corrections to these minutes.  Richard Young asked to speak. He felt that the minutes were correct but there was no vote on the 2017 Annual Assessment.  After thanking Richard Young for his comments, Jim Clay asked for a motion to approve the minutes.  John Dustin moved that the minutes be approved; seconded by Dan Pope. The minutes were approved unanimously by voice vote.

 

Treasurer Report – Pat Le Roy gave an update to the financial report mailed /emailed to landowners prior to the annual meeting:  Balance in the general account is $23972.63.  Expenses paid:  $18.85 for material for the installation of the mailbox cluster, $675.00 for attorney fees associated with the CC&R review committee.   The balance in the winter account is $4510.00.  There is one invoice outstanding invoice for $100.00 for purchase of meat, condiments, etc. for the picnic.

 

2017 Budget – Jim Clay, using a flip chart, explained the process the board uses to determine the yearly budget.  How much revenue from the assessment to expect and the expenses that will be incurred during the year.  Richard Young made a point of order statement.  Citing CC&R #24 the assessment amount will be fixed by the membership at the annual meeting or by a ballot mailed to the members.  Richard Young stated that it is his position that there should be a vote at the annual meeting, Richard Young moved that the membership fix the amount of the 2017 Annual Assessment at $360.00, seconded by Shirlene Hendrix.  A vote by hand to continue discussion was held.  Discussion continued with Jim Clay explaining the assessment as it relates to full time residency, seasonal residency, and unimproved lot:  $360.00 full time, 80% seasonal residency, and 40% unimproved lot.  The Board determined after looking at anticipated expenses that a $70.00 increase in the assessment for 2017 was needed bringing the full time assessment to $430.00, $344.00 seasonal, and $172.00 for unimproved lot.  Expected revenue at the level of the 2016 Annual Assessment was $26330.00.  With an increase in the assessment for 2017 expected revenue is $32,341.00.  He explained that additional revenue may come from impact fees, liens being paid off which are not regular revenue and cannot be included in the budget process.  A fair question asked was with about $21,000.00 in the general account why would we need to raise the assessment?  The board was looking long term to meet the needs of the association and not have a special assessment.  Special assessment may still be used for certain projects.  A financial report as of June 26, 2017 was mailed/emailed to all landowners prior to the annual meeting.  It compares the budget to current expenses.  It also shows the amount of money of nonpayment of the 2017 assessment – $3377.00.  Due to the lawsuit $4872.00 was held in escrow which would be returned to the landowners if the 2017 Budget was not approved.  Going line by line, the budget vs. expenses and income were addressed.  He reviewed the anticipated expenses remaining for the rest of the year.  The Board determined that the most pressing use of the remaining funds – $10930.55 – was to fill the cracks in the asphalt road.  If the assessment had not been raised, the membership would be faced very limited funds to apply to dust abatement and/or maintaining the asphalt road with either a chip and seal, or slurry application.

 

Discussion followed with John Dustin stating that the 2017 annual Assessment is under advisement by the court and the Board has been advised not to discuss the assessment.  The roads were discussed at the meeting last year and the dust abatement application was applied at full strength this year.  Sandra Pratt, reading a prepared statement, stated that the 2017 Budget is illegal.  Rod Potter asked if the asphalt road was brought up last year? Was chip and seal voted on and discussed?  He feels that the board set the budget to reflect its own needs.  Another member asked when the last chip and seal was done?  Jim answered it was done in 2011 with a seal coat in 2013.  Chip and seal has the longest life, slurry application has a shorter life, and seal coat has the shortest life.  A member (John Walker?) asked how the board can even consider remaining on the board when you have broken all the rules of the By-Laws?  Jim answered that has not been ruled on and that the Board has been following on the practices of previous Boards.  Richard Young stated that he has a copy of the court order that orders the Board to have a membership meeting to approve the 2017 Budget and that is why it is on the agenda. The 2017 Assessment is under advisement.  The court ordered that the 2018 Budget be approved at a membership meeting in the fall prior to the 2018 annual assessment.  The members will have the opportunity to decide how much money is needed to accomplish the work being proposed.  With a carryover of $11,000.00 he sees no need for an increase in the 2017 assessment.  He stated the assessment should be $360.00.  Jim explained that filling the cracks will use up most of that $11,000.00.  Jim read the bids from the different companies with one bid of $5800.00 filling the larger cracks, another for $10,230.00 most of the cracks.  Vicky Mullins stated that she recalls that the membership always voted on the assessment increase at an annual meeting. Minutes show that the previous increase in Annual Assessments was for 2014. There was no annual meeting in 2013 due to a lack of a quorum for an annual meeting, nor the 40% of members to hold a regular meeting.   At the October 9, 2013 monthly Board meeting,  as recorded in the minutes:  “Richard Young moved that the 2014 Annual Assessment be increased by 20%, second by Pat Le Roy.  The vote to approve was 3 Yes, 1 No.

 

Dan Pope stated that the asphalt road is not an annual expense and the members cannot expect an increase in the annual assessment every year.

 

Depending on what asphalt work is approved, a special assessment to cover costs may be necessary.  Pat Le Roy reported that 2 landowners have not paid a special assessment, and one landowner has not paid annual assessments for many years.  Angie Pommier, speaking as a private person, stressed that we want to maintain our investments here.

 

Following the above discussions, it was moved to end discussion and vote on Richard Young’s motion to fix the 2017 Annual Assessment at $360 for a full time residency. A short recess was called while a paper ballot was created.  The ballots were collected and tallied by Barb Wickman, Vicky Mullins, and Terri Bonham.  Jim stressed that the lot number needs to be on the ballot for accuracy.

 

Discussion continued while ballots were counted:

 

The number of members in attendance in person and represented by proxy is 50 which is a quorum and the annual meeting is in order.

 

High speed internet – not much to report at this time.  Tawnya Jacobson shared that they use Hughes net and it is somewhat faster.

 

 

 

Shirlene Hendrix had shared that if you are 65 or older you can get a discount from Waste Management.

 

Due to the freeze in June the bears are looking for food.  There have been bear reports from residents.

 

Dust abatement – Application was $15797.76 plus road work prep of $4430.00.  It would be more expensive to have one road done at a time to give the road time to dry.  It was done all in one day.

 

Asphalt road – Chip and Seal lasts longer and application is done one side at a time.

 

CC&Rs – Solar Policy to be a By-law.  Number of others need attention to bring them in compliance with State law.  The language between the CC&Rs and By-laws needs to be clarified.  CC&R’s require a written notarized ballot with 45 member quorum, By-laws can be amended at an annual meeting, Policies and Procedures can be updated as needed by the Board.

 

Recycle – Chris Kaufmann gave information about a recycle service he is using.  Phone numbers on the bulletin board.

 

Mowing –  Angie Pommier has contacted Grasshoppers to mow the weeds at $110.00 an hour for 2 men.

 

Fishing easement – there is a 30 foot easement on the west side of the river but not on the east side.  Access to the river is along the edge of  Lot 11 and behind Mark Webber’s house and at the bridge.  Guest fishermen need to be accompanied by a landowner.  Be a good neighbor and tell your neighbor when you are going to be     fishing with a guest.  No fish stocking this year due to supplier being out of business.  Need Colorado license to fish the river.

 

Rattlesnakes – Bradfords dog was bitten but recovered.  Snakes were near the intersection of Pine River Ranch Circle and Ludwig Drive.

 

The vote to set the 2017 Annual Assessment at $360.00 was announced by Vicky Mullins.: Yes  20, No 32.  Motion was defeated.

 

Jim Clay asked for a motion to approve the 2017 Annual Budget.  Dan Pope moved that the 2017 Budget be approved, seconded by O. D. Perry.  Discussion followed.  Barb Wickman asked that the budget be explained item by item which Jim did.  John Wickman asked if the benefits dust abatement product is cumulative?  It builds up over time.  Snow removal is an unknown and there is a provision to spend up to 30% of the assessment.  No weed abatement has been done this year.  A better price was negotiated for the dust abatement saving $2300.00.00 on the product.

 

A question was asked if the members should not also be voting on the assessment since it is part of the budget?  The 2017 Annual Assessment is under advisement by the court.  There is a motion on the floor to approve the 2017 Budget as presented.  Vote is by paper ballot. The votes were tallied by Barb Wickman, Vicky Mullins, Terri Bonham, and Dorothy Shipman Applegate.  Vote to approve the 2017 Annual Budget was Yes 48 No 3.

 

  1. D. Perry moved that the members approve the 2017 Annual Assessment set at $430.00, seconded by Vicky Mullins. Barb Wickman asked that the motion be clarified to state that fulltime is $430.00, seasonal is $344.00, and unimproved lot is $172.00. O. D. Perry rephrased his motion to include the clarification. Vote is by paper ballot.  The votes were counted by Barb Wickman, Dede Shipman Applegate, Vicky Mullins, and Terri Bonham.  Vote to approve the 2017 Annual Assessment – Yes 45, No 5.  The funds held in escrow can now be released.  Funds not needed now can be carried over to next year.  Dan Pope said that we should wait until the Judge has made a ruling.

 

Draft of 2018 Proposed Budget –  Pat Le Roy had prepared the draft of the 2018 Budget based on  the 2017 Annual Assessment.  Regular budget items are the Administrative Expenses, Annual Meeting, Insurance, and snow removal.  Budget items that are determined by the members are dust abatement and asphalt road work.  Every two years the association’s books are required to be reviewed.  This will happen in 2018.  Revenue is expected will fall short of the expenses.  The question is how the members wish to move forward on dust abatement and asphalt road repairs.  This year the cracks will be filled.  The bids received  for slurry, which cost a little less, doesn’t last as long, needs traffic control workers – cost $ 14000.00 to $16000.00.  Chip and Seal last longer up to 4 years, costs more $22,000.00 to $24000.00.  A special assessment  may be needed if a dust abatement application is done within the same year.  John Dustin stated that Chip and Seal is the better investment long term.  John Salsbury asked if cracks needed to be filled first? All companies said that the cracks need to be filled first followed by either slurry or chip and seal.  What is the members priority?  Dust abatement or maintenance of the asphalt road?  John Wickman feels that filling the cracks now and repairing the asphalt next year and reassess the dust abatement makes sense.  Downside to no dust abatement is more pot holes and more gravel.  Overwhelming support was shown by the hand vote to take care of the asphalt road.  We can bring the gravel road back up to present condition for less cost than repairing the asphalt road.  Most are willing to cut back on dust abatement to manage the repairs on the asphalt road.  Dick Benzi suggested that perhaps a spot application for dust abatement could be done.  John Dustin mentioned that we need to get hard numbers to finalize the budget.

 

Nominations for the Board of Directors:

 

Richard Benzi nominated by Shirlene Hendrix; Shirlene Hendrix by Richard Young; Pat Le Roy by
Terri Bonham; Rob Mc Laughlin by John Dustin; Vicky Mullins by Bruce Hendrix, John Dustin by Angie Pommier, Jim Clay by John Salsbury, Waterman Ormsby lll by John Dustin.  Bruce Hendrix moved that the nominations be closed, second by John Wickman.  The vote was by paper ballot.  Jim thanked all who have agreed to serve and those in attendance.  The votes were tallied by:  Barb Wickman, Terri Bonham, Dede Applegate  Barb Wickman announced the new Board of Directors:  Jim Clay, John Dustin, Pat Le Roy, Rob Mc Laughlin, and Waterman Ormsby lll.

 

The meeting was adjourned at 12:55 p.m.

 

These minutes were approved ____________________________ by a vote__________________.

Date

 

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President, Jim Clay                                                                             Date

 

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Secretary Pat Le Roy                                                                          Date

 

 

 

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