Minutes of PRRLOA Board Meeting – 21 August 2018

PINE RIVER RANCHES LANDOWNERS ASSOCIATION, INC.

BOARD OF DIRECTORS MEETING – 21 August 2018

18 PINE RIVER RANCH CIRCLE, BAYFIELD, CO 81122

Minutes

Call to Order: The meeting was called to order at 7:00 pm by Jim Clay, PRRLOA Board Chairman

Board of Directors members present: Jim Clay, Chairman; Waterman Ormsby III, Vice Chairman; Pat LeRoy, Treasurer; Florian Walchak, Secretary; Chip Burkett, Member

Guests: Richard Diedrich, Dannielle Coronado

Bridge replacement grant application(s) update: Richard Diedrich and Dannielle Coronado gave an update regarding the status of the grant applications to fund, at least in part, the bridge replacement. There are two grants currently being considered: (1) a FEMA pre-disaster mitigation grant that covers 75% of the bridge replacement cost, and (2) a State of Colorado Energy/Mineral Impact Assistance Fund Grant that covers 50% of the bridge replacement cost. Both grants need to be submitted by or in behalf of a political subdivision/public agency such as municipalities, counties, school districts, special districts and other political subdivisions and state agencies. In our case it will be the Upper Pine River Fire Protection District (UPRFPD). The FEMA grant is the primary target funding source. A very preliminary estimate puts bridge replacement costs at $500K if there are no difficulties or special construction/installation considerations to address. Target grant amount is $1.2M. This greater amount covers contingencies, cost estimate growth, and establishes a project reserve. The grant will be submitted in the name of the Upper Pine River Fire Protection District and will be managed by the District. If successful, the District will provide a Project/Construction Manager to oversee the project.

The FEMA grant covers 75% of the estimated cost and requires a 25% local contribution. Upcoming deadlines are 16 November 2018 for a preliminary application (on-line submittal) and 14 January 2019 for final application submittal. Funding selection occurs by 1 May 2019. Formal award date and funds distribution is 30 December 2019. Work can begin any time after that. The mandated period of performance is three years from 1 May 2019. The PRRLOA has provided the needed documentation for the application (e.g., Engineer’s Report). Ms. Coronado will prepare the actual application and submit it along with the necessary documentation and associated analyses such as the Benefit/Cost Analysis that results in a Benefit Cost Rating. The rating needs to be 1.0 or greater for the application to be viable. No further documentation is needed at this time. Ms. Coronado has talked with County Commissioner Westendorf (the County Commissioner for our district) for her support for the project. The other County Commissioners are aware of the project and their support is expected. County emergency managers are also aware of and support the project.

Working in parallel with the FEMA grant is the State of Colorado Energy/Mineral Impact Assistance Fund Grant. This grant covers 50% of the estimates bridge replacement costs. The FEMA grant is more desirable because of its higher replacement cost coverage, but the Board feels that a second source of funding should be pursued as a backup option. The deadline for this grant application is 1 December 2018. We are applying for a Tier 2 grant that covers projects from $200K to $1M. Ms. Coronado will gather material as required for this grant and prepare and submit the application.

The Board thanked Richard and Danielle for the evident hard work they have put into this project and the detailed update they provided.

Approve minutes from 17 July 2018 meeting: Pat LeRoy distributed a draft of the minutes on 24 July 2018 for review/changes/comments. Florian Walchak moved to approve the minutes of the last Board meeting as revised per comments; Waterman Ormsby seconded the motion; the vote to approve was unanimous.

Treasurer report: Pat LeRoy presented the Treasurers Report. The General Account Balance is $62,986.85. Pending invoices to be paid total $45,701.59; pending expenses estimate is $5,200; remaining available funds total $12,085.21. Notable credits include Fish Fund donations ($1,450) and Lien Recovery Payments ($1,174). Waterman Ormsby moved to approve the Treasure’s report; Chip Burkett seconded the motion; the vote to approve was unanimous.

Invoices to be paid: Pat LeRoy submitted the following invoices for payment:

Post Office box – $54.00 (annual rental fee)

Desert Mountain – $11,175.82 (dust abatement)

Four Corners Materials – $26,572.50 (chip and seal on asphalt road)

CRG – $7,355.72 (dust abatement prep work and grading)

Goldman, Robbins, Nicholson & Mack (Attorneys) – $300 (legal fees for governing document review)

Waterman Ormsby – $56.11 (reimbursement of poster material and office supply purchases)

Florian Walchak moved to approve payment of the invoices; Chip Burkett seconded the motion; the vote to approve was unanimous.

Old Business:

Grant writer: The Board has determined that a professional grant writer who is familiar with the specific grants the PRRLOA is considering in conjunction with the Upper Pine River Fire Protection District will greatly increase the quality of the grant submittals for the bridge replacement and, consequently, the probability of winning the grant. UPRFPD Fire Chief Bruce Evans recommended Danielle Coronado as an experienced and knowledgeable consultant to research, document, and submit any grant proposals that the PRRLOA may pursue. After discussion the Board moved to hire Ms. Coronado as a consultant for the grant application process. The terms of engagement are a $25 hourly rate and a level of effort is not to exceed 150 hours. The level of effort may be increased by the Board if circumstances require additional work. The consultant will invoice monthly and will provide the Board with a monthly status report. Noted is the fact that the FEMA grant has a provision to pay the costs of preparing the grant over and above those of the bridge replacement, if the grant is approved. This essentially acts as an additional incentive payment for Ms. Coronado for successful work.

Florian Walchak moved to hire Ms. Danielle Coronado as a grant writer/consultant under the terms discussed; Chip Burkett seconded the motion; the vote to approve was unanimous.

Liens update:

Payment plan – Goicoechea: The Goicoecheas are in receipt of the Board approved payment plan. A partial payment of $500 is expected by 30 August 2018.

Design committee: No reviews are outstanding. Susan Wells will join the committee as a new member

Dust abatement: completed

Chip and Seal: completed

Governing documents: legal review completed; PRRLOA members voted to approve; all documents (CC&Rs and By Laws) have been recorded with the cognizant local government office; they will be posted on the PRRLOA website

Board member assignments: Florian Walchak to Secretary

Signature cards: Jim Clay, Pat LeRoy, Chip Burkett, and Florian Walchak have their signatures on file with the First National Bank of Durango (Bayfield Office).

Weed control: Chip Burkett contacted Aaron Easley with Horizon Environmental Services in Durango to conduct a survey of recommended noxious weed control measures (spraying) for the pond and loop roadside 10-foot right of way. Easley and Burkett walked the potential application sites. Horizon came back with an estimate of $975 for the pond and $975 for the loop roadside. After discussion regarding the best time to spray consistent with the life cycle of the most offensive weeds, the Board agreed that the pond area should be sprayed in August/September along with limited areas along the loop road (only those areas with a high density of weeds). A follow up spraying in the Spring of 2019 should also be scheduled. PRRLOA members who do not want spraying to occur adjacent to their properties should contact Chip Burkett via email (cdsbj@msn.com). Easley also recommended that domestic and farm animals should be kept away from the sprayed areas for a week to 10 days.

Burkett also attempted to contact other qualified applicators that are listed on the La Plata County website as licensed and insured vendors. Either none responded or had a working telephone number.

Chip Burkett moved that the discussed weed control plan be implemented as soon as possible with a budget of $1,950. Weed control and spraying activities are to be consistent with the La Plata County Noxious Weed Control Program. Pat LeRoy seconded the motion; the vote to approve was unanimous.

Snow removal: Jim Clay will contact Neil for a snow removal bid for the upcoming winter season.

Legal: Pat LeRoy anticipates one additional invoice this year from the attorneys for $300.

New business:

2019 proposed budget: Pat LeRoy presented the 2019 proposed budget. Estimated expenses for 2019 are $36,625. Estimated income is $41,966 (including carryover from 2018)

Notable items include a carryover from the 2018 budget of approximately $9,000. It was suggested that part of the carryover ($4,000) be used to establish an escrow funding line for the chip and seal road project that is scheduled to be a recurring maintenance expense every six years or so. Establishing an escrow fund with an annual contribution of (approximately) $4,000 will mitigate a large one-time expense for the budget year that incorporates the asphalt road resurfacing. This makes for responsible planning and budgeting.

It was also suggested that the remaining carryover be assigned to the contingency fund as reserve for unexpected expenses and cost estimate overages.

Also discussed was combining mowing and weed mitigation line items into a single line item called common Spaces Maintenance.

Also discussed was road maintenance items for Richard’s Drive (which is to be afforded all maintenance considerations by the PRRLOA). This maintenance activity will cover the installation of a new culvert and associated material – mainly gravel.

After discussion the Board voted to approve the budget with no increase in the annual assessments. Items discussed above were incorporated into the motion.

Waterman Ormsby moved to approve the 2019 budget; Chip Burkett seconded the motion; the vote to approve was unanimous.

Date for next meeting(s):       Saturday, 29 September 2018 (immediately after PRRLOA General Membership Budget Meeting)

Wednesday, 17 October 2018

Meeting adjourned: Move to adjourn meeting by Chip Burkett; seconded by Waterman Ormsby; Meeting was adjourned at 9:35 p.m.

 

These minutes were approved by a vote of _______ on ___________________________

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Jim Clay, President                                                                                                                    Date

 

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Florian Walchak, Secretary                                                                                                     Date