1/10/2018 Board Minutes


MONTHLY MEETING – January 10, 2018

Le Roy residence – 18 Pine River Ranch Circle, Bayfield, CO 81122

The meeting was called to order by President Jim Clay at 7:00 p.m.

Board Members present – Jim Clay, John Dustin, Rob Mc Laughlin and Pat Le Roy.  Waterman Ormsby lll was absent.

No guests were present.

Minutes December 5, 2017 were emailed to all board members for additions and/or corrections.  There were no corrections.  The minutes were posted at the mailboxes and on the website.  John Dustin moved that the minutes be approved as distributed, second by Rob Mc Laughlin.  The vote to approve was unanimous.

Pat Le Roy presented the Treasurer’s report.  The balance in the Winter Account is $4511.14.  The balance in the General Account is $39284.69.  Two checks cleared:  Goldman, Robbins, Nicholson and Mack $850.00 legal fees; Rob Mc Laughlin $10.00 for fuel for road work.  There were 5 deposits all for 2018 Annual Assessment $10152.12.  Four deposits for 2018 Annual Assessments totaling $7557.00 were made in January 2018 prior to the monthly meeting.  John Dustin moved that the Treasurer report be approved as presented, second by Rob Mc Laughlin.  The vote to approve was unanimous.

Pat Le Roy reported that Nancy Young who manages the website, has suggested that we have a website that is easier to use and is user friendly.  She and Pat are working together on this and will present a draft to the Board.

INVOICES TO BE PAID – Pat Le Roy presented two invoices for payment:  Goldman, Robbins, Nicholson, and Mack, $300.00 for legal fees:  Neil’s $390.00 for snow removal and sanding.  John Dustin moved that these two invoices be paid, second by Rob Mc Laughlin.  Vote to approve was unanimous.

2017 ANNUAL ASSESSMENT – OUTSTANDING INVOICES NOTICE TO FILE LIEN – Pat Le Roy reported that she wants approval to mail delinquent invoices to four landowners who have not responded  with payments to previous notices.  John Dustin moved that these Delinquent notices be mailed, second by Rob Mc Laughlin.  Vote to approve was unanimous.

2018 Annual Assessments – Total amount collected to date is $17274.00.  Delinquent notices will be mailed to all landowners who have not paid by February 1, 2018.


BRIDGE REPORT – Pat Le Roy reported that Richard Diedrich had sent an email with the following information:  He will meet with the Fire Chief towards the end of the month.  Danielle Coronado, who was handling the grant writing process, has moved to Denver.  The Fire Department is looking for a new grant writer.  Rob Mc Laughlin stated that many landowners are not aware of the bridge project that the Association is working on closely with Upper Fire Department.  He stated that there are many ways to finance the Association’s portion of the cost which would be 25% of the cost if a grant is obtained – a special assessment as stated in our governing documents and perhaps other methods of financing. He suggests that we create a short notice with bullet points to provide the information to the landowners.  He will create a notice and email to all board members for their input.  John Dustin moved that this notice be included in the next mailing/emailing to all landowners, second by Pat Le Roy.  Vote to approve was unanimous.


CC&R COMMITTEE – 2018:  The committee will meet Thursday January 12, 2018 at Chip Burkett’s home. Jim Clay will briefly meet with the committee to explain what the committee’s task is.

DESIGN COMMITTEE – No new plans were submitted to the committee.

IMPACT FEE:  Jim Clay presented the following report by email to all board members.  Our Bylaws, Section 4.0, require lots owners to pay a Road Impact Fee of 1.2% of the value of any construction that requires a building permit.  The La Plata County Building Department lo longer lists the value of the construction on the building permit.  (Depending upon those seeking the permit to honestly report the expected construction costs caused wide variations in the self-reporting by individuals of very similar projects.) The Building Department now bases their building permit fee on the number of square feet) house, garage, deck, etc.), and number of toilets..  This process results in more uniformity of fees for similar construction projects.  The change in La Plata County Building Department procedure requires us to modify our Bylaws at the next Annual Meeting with regard to Road Impact Fees for our subdivision.  At the moment we have four projects which need determination of their Road Impact Fees.  It is my recommendation we establish a Policy and Procedure to address how the Road Impact Fee should be levied until the Bylaws are revised.  I believe our goals for a new Road Impact Fee Policy should be:

  1. Charge lot owners amounts similar to what would have been charged if the old system was fully in place.
  2. Simple to administer and understand.
  3. Charge the lot owner the same whether the lot owner does the work or hires others to do the work.

Here is my proposal:

Road Impact Fee Policy:  Any construction that requires a building permit is subject to the must pay, before work commences, a Road Impact Fee will be equal to _______% of the La Plata County’s Building Permit Fee.

I believe the proposed Policy and Procedure Road Impact Fee meets goals 2 and 3.  To achieve goal (1), I have done a review of the past four major additions or new house constructions.  These all occurred between 2014 and 2017.  In each case I have reviewed county records and our own information to determine the square footage by category and number of toilet for each project.  I then applied the County’s fee rates for each category for each project.  Doing so allowed me to determine what the County would be charging as a building permit fee if these four projects were submitted today.  Those estimated fees sum to $10,021.00.  We collected Road Impact Fees a total of $9120.00.  That is 91% of what the estimated county building permit fees would be.  As the fee money’s we collected occurred up to 3 ½ years ago, I have also tried to make an adjustment for inflation by (1) using a 2% inflation rate or (2) by using the national residential construction (inflation) index.  Using either of these methods raises the percentage to 94% to 100%, respectively.

In my opinion we should set the rate somewhere in the 91$% to 100% range.

Discussion: All board members present acknowledged that they had read the above email and thanked Jim Clay for his report.  Board members present agreed that using a percentage of the building permit fee would make the impact fee easy to administer and understand and would be fair to all landowners building new construction and additions.  The consensus was that 90% of the building permit fee would be reasonable.  The Building Department may from time to time change or update the method used to determine the permit fee.   Bylaw 4.0 also states that the impact fee is collected for the impact to the road and the bridge.  The Board will suggest to the CC&R Review Committee that the title be changed to ROAD/BRIDGE IMPACT FEE.

John Dustin moved: The Policy and Procedure for the Road Impact Fee: The Road Impact Fee will be based on 90% of the Building Department Permit Fee.   Should the La Plata County Building Department change or update their method to determine the Building Permit Fee, the Board may use another bona fide method other than the Building Permit Fee to determine the Road Impact Fee.  Second by Rob Mc Laughlin.  Vote to approve was unanimous.  This Policy and Procedure, once the minutes have been approved, will be posted at the mailboxes and on the website.

POSSIBLE FINES FOR VIOLATIONS:  John Dustin has located another subdivision’s Policy and Procedure for Fines for Violations.  This may be used as a guide to formulate a policy for the Association.  The Board will attempt to contact a member of that subdivision’s board to see how their policy works.  Waterman Ormsby lll will contact other subdivisions for a similar document.

GWEN GOLD – The letter mailed to Gwen Gold December 7, 2017, was returned after January 1, 2018.  There was no forwarding address.  Gwen Gold has provided that information with payment of the 2018 Annual Assessment.  The letter will be resent.  The RV as it stands now must be removed by May 2018.


CONTRACT FOR ASPHALT CHIP AND SEAL:  Jim Clay will contact Four Corners to set up a date for the project and also for an update on the cost.  The estimate stated that if there is an increase in the cost of the product, that increase will be passed along to the Association.  The Board reflected this anticipated increase in the 2018 Budget.

ADDING FILL MATERIAL ALONG THE SOUTH SIDE OF THE ASPHALT ROAD:  At the last meeting, Jim Clay expressed concern about the area where the road drop offs dramatically.  The Board had suggested adding large fill in some of those area.  Rob Mc Laughlin thinks that we should talk with the ranch owner for his input.  There was some discussion about the roads in general with the board members stating their road maintenance priorities i. e.  Asphalt, dust abatement.  John Dustin moved that Rob Mc Laughlin talk with the ranch owner prior to any action being taken, second by Pat Le Roy.  Vote to approve was unanimous.



YEARLY MAILING TO LANDOWNERS:  The following items will be part of that mailing:  Year End Financial statement, 2018 Budget, Impact Fee Policy and Procedure, 2018 Roster, letter from the President.

NEXT MEETING:  Tuesday February 13, 2018, 7:00 p.m. at the Le Roy residence.

John Dustin moved that the meeting be adjourned, second by Rob McLaughlin.  Vote to adjourn was unanimous.  Meeting adjourned at 8:20 p.m.


These minutes were approved by a vote of __________ on ___________.



President, Jim Clay                                                                              DATE


_____________________________________________________________________________________Pat Le Roy, Secretary /Treasurer                                                              DATE