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 – firstname.lastname@example.org 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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