Kahler Glen Community Association by 49NUm54y

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									                     Kahler Glen Community Association
                            2011 Annual Meeting
                                14 May 2011

The Annual Meeting of the Kahler Glen Community Association (KGCA)
was called to order at the Lake Wenatchee Recreation Center on May 14th
at 10:05 a.m. by Rex Lund, president of the Board of Directors.

A quorum was confirmed for KGCA annual meeting. Tom Graham
confirmed that he is representing LLC votes at the KGCA meeting and
also validated that a quorum was clear.

Special Recognition was given to the following:

      Thank   You   to   all who served KGCA in 2010/2011
      Thank   You   to   the Architecture Committee
      Thank   You   to   Esther Christian our bookkeeper.
      Thank   You   to   all of the KGR, LLC Board of Directors.
      Thank   You   to   the KGR, LLC’s fabulous  employees
      Thank   You   to   the restaurant staff--our chefs, and servers.

Rex introduced the Board of Directors:

   Rex Lund                       President (Home owner)
   Dave Reynolds                  Treasurer (Home owner)
   Darren Stober                  VP (Home Owner began mid year to
     replace Lynn)
   Lynn Withrow                   VP/Secretary Condo owner (resigned
     mid year)
   Rob Casad                      Communications Committee (Home
     owner)
   John Summers                   Septic Committee (Condo owner)
   Steve Johannesen               Roads (Condo Owner)
   John Killian                   Architectural Committee (Home owner)
   Pete Petesch                   Secretary/Water Committee (Home
     owner)
Resort Representatives
   John Bennett                   Resort Rep (Condo owner)


                               Committee Reports

Architecture
    John Killian                  Chair
    Bev Carlson                   Secretary
    Marion Brittain          Member
    John Greiner             Member

John reported that there are no new house plans under consideration.
John provided updates on noxious weeds, plans and policy for dead tree
removal, exterior lighting and other policies.

Communications (Rob Casad, Chair)

    Up-to-date, two-way communication,
    On-going Communication
       ― Quarterly updates via email
       ― Community website: www.kahlerglencommunity.com
       ― Board minutes posted online
       ― Community roster distributed annually
    Verify your contact information with Rob
    We want your feedback: Send to Board members –
     board@kahlerglencommunity.com

Please sign in and keep your email addresses up-to-date.


Roads and Trash (Steve Johannesen Chair)

    Surveyed all Road Surfaces - Rated them as to usability and
     deterioration.
    Budget will remain the same for FY11 and FY12 $45,000
    Prepared bid for repair of road surfaces
    Presented findings to KGCA Board for action.
    Prioritized projects as to immediate need.

   • 528,000 sq ft of road surface
   • Private Driveway resurfacing may be coordinated with Bruce
     Weeks to take advantage of contractors onsite schedule to
     lower your costs.
   • Snow Removal Support Services bids to 3rd parties were
     evaluated, no substantial savings were determined
   • Trash - PLEASE collapse boxes before depositing in dumpsters.
     Please don’t use this for Christmas trees, appliances or
     construction materials.


Water (Peter Petesch, Chair, John Bennett LLC)
  Mark, Rex Reporting
    “Thank you” to the various families who submitted water
     samples for testing.
    Kahler Glen Water Association meets all Department of Health
     requirements concerning water quality.
    Kahler Glen Water Association successfully meets water
     quality requirements as sampled on a monthly basis by our
     contracted water operator, R. Carey Eller of H2O Connection
     in East Wenatchee, WA.
    All reports have been filed with appropriate governmental
     agencies to ensure compliance.
    We currently have a “green permit” which is the highest
     quality standard & operational water permit.
    John presented relevant regulatory agencies and potential
     future changes in regulatory requirements which may impact
     KGCA relevant to potential UTC jurisdiction requirements, and
     potential future metering requirements.


Septic (John Summers, Chair)
   There are concerns about the septic capacity and county
      requirements for system expansion for future homes built.

There are 25 systems (50 tanks and 51 pumps) providing current
capacity. The Community needs to maintain capacity on all systems at
peak demand (holidays). Unbuilt lots will need additional capacity and
the associated costs for expansion will be determined.

Even though our septic system is in excellent condition and continues to
have a 10-20 year lifetime, we need to reduce disposal into the system.

Secretary’s Report (Peter Petesch)

    Minutes from 2010 were approved – Motion Seconded and
     Carried.
    Tom Graham expressed concerns


Treasurer’s Report (Dave Reynolds)

Dave provided details about acreage estimates and discrepancies
between LLC estimates and KGCA. The LLC has a clear supermajority of
votes by either KGCA or LLC estimates of acreage. Dave covered Income
status, Expense status, and bank balances. We have about a $20,000
gap in dues payments over the fiscal year. $10,000 of that dues payment
is due to the restaurant credit change implemented this year. $10,000 of
the gap is due to dues payments which are lapsed, several
homeowner/lot owners are in serious arrears to KGCA. Late charges are
assessed if payments are not made by the 15th of the month.

Expenses are in line in general there were 4 primary areas of variance:

   1) Sewer and septic disposal are about $11,000 under budget for the
      fiscal
   2) Landscaping and grounds - $8,000 under budget – much less
      mowing and fertilizing and maintenance
   3) Legal expenses were $13,500 over budget
   4) Road maintenance – due to lower oil costs there was a huge short-
      term costs savings of $24,000

KGCA is planning to act with the same budget in FY2011/2012 and
service agreement between the LLC and KGCA.

$20,000 was transferred into reserves in FY2010/2011. Bank balances
were recorded as $157,539. Dave proposed that our assets and reserves
should be retargeted at $300,000 as a healthier reserve level to address
future septic, road, water or other planned or unanticipated changes.

Dave requested a motion to approve the budget which is effectively the
same as last year, along with dues which will be $185/month beginning
in May. Bill Miller made a motion to ratify the budget for FY2011/2012.
Motion Seconded and Passed.

    2010/2011 budget proposal is for dues of $185.00 per month
     per home/condo/lot to cover substantial increases in Septic,
     Property Management, Legal, Landscaping (mosquito control),
     Road Maintenance, Snow Removal and Cross Country
     Grooming expenses.

Dave – asked for a financial review and to waive the audit requirement.
Motion was seconded and carried.


President’s Report (Rex Lund)

Rex provided an update on the year’s challenges. Rex provided the
background and timing of LLC proposals, KGCA evaluations of options
which required legal counsel. Rex communicated the legal threats which
were presented to the board. Rex provided the context about acreage
estimates and considerations, as well as voting rights challenges. The
KGCA board has been diligent in not moving unilaterally to change KGCA
covenants without KGCA approval. Rex acknowledged Dave, Steve and
Darren for their involvement in the budgeting discussions with the LLC,
and also recognized the LLC’s progress in better allocating and reporting
cost structures. Rex shared that the restaurant credit remaining will be
honored by the new Kahler Creek Grill restaurant. Rex shared that this
is the first year in KGCA history with 7 board members resigning and the
challenges with clarification on 1 year and 2 year terms of new board
members. It is unprecedented that we have the challenge of un-served 1
year terms & complexity.

Rex was recognized by Dave Reynolds with a gift floral arrangement and
recognition of gratitude for Rex’s many years of service. Rex has served
KGCA with perseverance and patience and had extraordinary stress and
personal challenges due to KGCA Community challenges.

Rex made a statement about the election of Directors, and that the KGCA
covenants do not address the policy of staggered terms. Staggering
terms of directors is a best practice, and it was apparently implemented
in the past 10 years, but was never explicitly codified in the covenants.
The covenants have ambiguity about replacement terms and new
Directors running for 1 year vs 2 year terms. Rex and Pete are resigning
after completing 1 year terms.

SLIDE DETAIL goes here.

Tom Graham – LLC – made a motion that all positions should be for a
full two year term

Tom clarified the confusion about the timing of candidates in the mailed
ballot, and the revised electronic ballot which was emailed which clarified
between 1 and 2 year terms. Tom proposed the simplest way to fix the
confusion over 1 and 2 year terms and discrepancies between initial
mailed ballot, revised electronic ballot intended to clarify breakdown by 1
and 2 year positions, etc was to open elections for all new 2 year terms.

MOTION DETAIL:

Tom made the following motion, in the election of members of the Board of
Directors, each owner may vote for the seven candidates he or she prefers,
and the seven nominees with the most votes shall become the elected
members of the Board without designation as to the term of office. The
proxy votes shall be counted as submitted.

Owen Roberts withdrew his nomination for serving on the board if the
LLC motion to create open elections (removing differentiation between 1
and 2 year terms).
Marion reported that we have 64 members attending, including the LLC
representation and that 42 proxy ballots were submitted. Rob confirmed
that he had the full attendance.

The Motion was seconded and carried.

Ballot Proposition 1

Section 1.21.4….
Section 3.12.9…
Dave Reynolds moved to approve
Bob Tacon seconded

Voice Vote—passed Will not do anything to revise bylaws until a major
change is proposed.

Ballot Proposition 2
Section 9.1…
Section 3.7…
Dave Reynolds present the propostion…Moved the proposition
John Summers seconded
Discussion…Ms. Wandell opposed motion based need for 2/3 rule for
major changes.
Vote: Nays have it.

Proposition #3 Background
Articles of Incorporation …Second paragraph Article IX of Articles of
Incorporation,
Covenants Section 3.1.1…
By Laws….2.2…
Dave Reynolds moved the motion
Second Kay Marks
Discussion: LLC will vote against
Dave Thorbeck…reserved the right to move to table
Moved to table; Linda Wandell seconded
Vote: Ayes have it.

Resort Presentation:
Big changes at the Resort
Directors are retiring but Lee Foster and the new board will work forward
….to continue high quality service to the community
….supports mission of vision committee
…new task force to identify issues facing the resort…management plan
and financial plan to make the resort profitable.
…multiple services (see resort presentation slides).
...history phamplet available…email Mike@kahlerglen.com
Bill Miller from Athletic
May 28th will be the annual meeting of the athletic club.
New fee schedule for couples only.
This will be the third year of club auction. Last year was very successful
$8,000 to local school.
Want to support local EMT
Want to support white water rescue..Sheriff’s Dept.
Plain Pantry wants to suppor

Jim Farmer presented a framework around a possible organizational
solution for the community.
Obtain majority approve
$100 per owner/mo
Share of LLC stock per year.
Member of Athletic after first year.
Saves money
Produces immediate financial relief

Results of the Vote for Board of Directors
Popular Vote: 34 shares
Nancy Miller
Darren Stober
Carol Pierce
Mark DeMeritt
Carol Billesback
John Ward
Dave Reynolds
Mike Wandell
Jim Farmer
Bud Olsen

Vote of LLC 68 shares
Darren Stober
Bud Olsen
Jim Farmer
Mark DeMeritt
Carol Billesback
Carol Pierce
Mike Wandell


Dave reviewed each of the items, clarifying cost increases based on
changes in service (garbage) or changes in technology (mosquitoes). The
Community was reminded that the language of the restaurant credit
included the clause (this provision shall expire in four years from today
unless renewed by a vote at the annual meeting.). There was some
discussion over the restaurant’s open hours (all months except March?)
but concluded that a realistic schedule would depend on activities in the
off peak periods (late Oct-early Nov, March, April etc.)

Dave left the two large increases—snow removal and cross country sking
to a presentation by the LLC which the new Association Board will have
to consider before signing any service agreements.


Kahler Glen Golf and Ski Resort LLC Presentation

The LLC presented detailed information to the Community Association
regarding the capital and labor costs of snow removal and cross country
grooming. There was general consensus that the LLC costs of service
were clear and probably beyond the range of outside providers given the
necessary bonds, insurance, and equipment needed to provide 7/24
service on road snow levels over 4 inches.

Board Changes Retiring:
Tony Choppa, Steve Nute and Mark Campbell

                    Thank YOU for your service!!

Continuing terms
   Rob Casad           Second year of two (2) year term
   Lynn Witherow       Second year of two (2) year term
   Pete Petesch        Second year of two (2) year term
   Rex Lund            Second year of two (2) year term
   Dave Reynolds       Running for his seat on the Board

Call for nominations
Kim Ronbeck was nominated to serve on the Board.
MSP to accept the slate of nominees.

Budget Vote
It was moved and seconded that the community accept the budget as
proposed. The budget was overwhelmingly (ayes) accepted as proposed.

Open Forum
MSP for Doty Foster to provide a management review of the finances and
to prepare the tax return.

Futures Committee--John Bennett
It is being proposed that the Community Association, along with the LLC,
and the Rec Club develop a strategic planning process (The Wandel Plan)
whose purpose is to increase community participation, make
communication more efficient, and keep email responses from
overloading the system, especially the Community Board and LLC
presidents. The plan will be posted on the resort website. Community,
LLC, and Rec Club members who want to participate be sure to contact
John or the presidents of the Board, LLC, and Rec Club.

Call for the meeting to be adjourned. MSP meeting adjourned 12:50
p.m.

								
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