BWTOA 2014 Annual Meeting

To use the proper authority of the Black Walnut Trails Owners Association Board to help increase the value of both homes and common areas of BWT and to promote an environment that fosters community and natural beauty.

Agenda

• Welcome and Board Members Introduction• Confirmation of Quorum • Introduction of Board Members• 2013 Review, Call for Volunteers, Management Service• 2012 – 2013 Reserve Study Report• 2013 Grounds Committee Year in Review• Annual Assessment Increase• 2013 Financials• Proposed 2014 Budget• 2013 AR&MC Report• Member Questions• Vote and Voting Results• Break• 2014 Focus

Board Members

President – Jim Quinlivan

Treasurer – Lee Erchull

Secretary – Julia Carroll

Director – Jerry Janik

Director – Jenni Aleckson

Grounds Committee Chairperson – Jenni Aleckson

Architectural Modification & Review Committee

Acting Chairperson – Jim Quinlivan

New Chairperson – Keith Zollers

2013 Review

• Vendor and Engineering Meetings • Reserve Study Completion• Continued Grounds Improvements• Completion of Common Grounds Survey and Encroachment • Annual Assessment Process Guide• Completing and Printing of 2013 Directory• 5 Year Budgeting• Look into Property Management Service

New Board Members and Volunteer!

• New Board Members:– Co-Communications Directors: Craig and Linda Gaska

• Down to 5 Directors, minimum allowed by Covenants• Need volunteers for:

– Board President– Board Directors– Grounds Committee Members– AR&MC Committee Members

• How to volunteer…– bwtowners.org > contact us > Nominating Committee (Betty Theisen-

Placek)– Call Jim Quinlivan for AR&MC

Property Management Service

• Property management service recommended by Bliss Woods• Nemanich Consulting and Management, Inc.• Combination of our Board and Nemanich services

– Liaison Between the Board and Owners– Meeting Preparation– Soliciting Bids– Property Management Office becomes the Implementer– Property Management Office performs the “Dirty Work”– Go to Court on the Association’s Behalf

– Financial Management: $2.50 per lot/mo.– Physical Management (Property without Financial): $4.50 per lot/mo.– Full Property Management: $6.50 per lot/mo.

• BWTOA Board/Grounds Committee would manage financials and grounds• Physical Property Management: $10,692 = $54 additional annual fee per lot

Reserve Study

Reserve Study

How Reserve Study Began

•2012 Annual Meeting question about Reserve funding of $67,737.00

•Started Contingency Reserve funding with $10,000 in 2006 for the first time

•Last annual assessment increase – 2006

•Village of Sugar Grove 2012 HOA assessment survey

•Board discussion of issue

•Julia Carroll’s experience with Reserve Studies

Sugar Grove Survey – Windstone

"Our association has a reserve study done approximately every 3 years depending on improvements we have made to the common property.  Of our $375 assessment, $103 of that goes to a reserve fund based on the reserve study. The balance is used for our operating fund. A well-funded reserve account is a major plus for potential buyers because it minimizes the possibility of being blindsided with a special assessment.”

--Vivian Poretto, President, Windstone HOA

What Is A Reserve Study?

• Identification of property

• Reserve expenditures

• Condition assessment

• Supplementary information for financial statements

• Funding plan for 30-year operating budget

Buildings and Fixtures

Repairs

Paved Path Replacement

Concrete Repair

Tree Removal

Pond Bank Erosion

Pond Dredging and Sediment Removal

Algae Treatment

Where We Are In The Process?

• Received first draft October 31, 2012

• Grounds Committee recommends engineering studies

• Revisions for Reserve Study – May 31, 2013

• Engineering studies and estimating in process

• Final Reserve Study – June 2013

• Board review of study results in 2013 and setting priorities for fixing problems with erosion, path, and dredging

2012 Engineering Studies

The reserve study has stated that the east and west ponds represent our greatest liability.

In order to generate a responsible financial plan for our association – one that will accurately predict future maintenance and the associated costs – the Grounds Committee recommended and the board approved the completion of two engineering studies.

•Conservation Design Forum (CDF)

•Integrated Lakes Management (ILM)

Conservation Design Forum (CDF)

Existing Conditions of East Pond

•Severe bank erosion, despite low bank height, healthy stand of deep-rooted vegetation, and low water fluctuation

•Erosion occurring at the inlet and outlet structures of the pond

Bank Erosion

Erosion at Inlet

Erosion at Outlet

CDF Recommended Improvements

1. Shoreline Stabilization

• Create a stable shelf using rock sufficiently embedded into the pond sediments to be resting on stable ground

• Regrade adjacent shoreline

• Mix soils generated from the regrading with rock to allow native plant material to grow on the shelf and the shoreline above the shelf

2. Inlet and Outlet Stabilization

• Installation of rip rap stone around the structures to protect against erosion

Future Conditions If Untreated

•Shoreline will continue to erode

•Sediment from erosion will likely allow mudflats to develop

•Eventual loss of asphalt path. Path replacement is tentatively scheduled for 2015 at an estimated cost of $20,000

•Eventual loss of winged concrete walls at inlet and outlet

Integrated Lakes Management (ILM)

ILM created a sediment mapping reports for Black Walnut Trails in 2007 and 2012. The results of the two reports were compared to establish trending conditions.

•Existing Conditions– Significant increase in sediment accumulation in both ponds

• East pond is due to shoreline erosion• West pond is due to sediment entering through the watershed

•Recommended Improvements– Stabilize shoreline of east pond since erosion is the most likely

source of sediment

– Spot removal of sediment in the western portion of west pond

Future Conditions if Untreated

• Formation of mudflats in western portion of west pond

• Reduction in water depth leading to emergent vegetation

• Emergent vegetation trapping sediment at a faster rate

• Eventual filling in of the pond with a narrow channel in the center for water flow

Proposal Solicitation & Evaluation – Spring 2013

• Grounds Committee solicited proposals and subsequently met (in conjunction with members of BTW Board) for review.

– For the shoreline stabilization work, Grounds Committee and Board unanimously selected EnCAP, Inc. The budgeted cost for the 2014 East Pond erosion control and stabilizations is $60,000.

– For the purposes of the Reserve Study, Grounds Committee and Board met with Integrated Lakes Management (ILM).

– Plan is to dredge West pond in 2019 at an estimated cost of approximately $67,000.

EnCAP, Inc.

• Located in Sycamore, IL

• http://www.encapinc.net

• Chosen to perform shoreline stabilization for the following:– Established

– Proposal incorporates the recommendations of the engineering study

– Cost effective

– Responsiveness

– Excellent client references from where similar work has been performed

Integrated Lakes Management (ILM)

• Grounds Committee and Board met with ILM to discuss proposal for sediment removal based on our specific situation (location of sediment, amount needed to be removed, etc.)

• The information from ILM’s proposal was given to Reserve Advisiors, Inc. for financial and timeline calculations.

• At the point where BWT will be having sediment removed, the work will be competitively bid.

Why Does Reserve Study Matter?

1. Systematic study of all our property

2. Pinpointing our liabilities

3. Understanding of our future risk

4. A long-term view for expenditures and funding

5. Allows us adjust annual assessments over time and avoid substantial Special Assessment

Grounds Committee Members

Jenni Aleckson – Chair, Recording Secretary

Kai Hansen

Larry Eichelberger

Tim Nahley

Grounds Committee

2013 Year in Review

2013 Grounds Accomplishments

• Foracres– Renovation and watering at Black Walnut entrance– Common ground maintenance – mowing, mulching, weed

control, tree trimming– Participated in two on-site visits to address questions and

evaluate recently added plant material

• Conservation Land Stewardship– Pond areas Spring mowing– Prairie maintenance, invasive weed control– Re-seed prairie areas with grasses and native flowers – Participated in an on-site visit to assess treated areas

• Clarke Aquatic Services – Pond monitoring and algae control, May - October

2013 Grounds Accomplishments

• Spring clean-up, April

• Dead tree removal – Manny’s Tree Service

• Monitored vacant lot mowing & maintenance – Tim Nahley

• Held meetings with firms to review proposals (in conjunction with BWT Board) – March, April, May

Assessment Increase

• Last Assessment Increase in 2006 – from $125 to $175.

• Proposed 2014 Assessment: $300

Local HOA Assessments – 2012

• Meadowridge Villas $2,850.00• Prestbury $2,607.00• Settlers Ridge Town $2,048.00• Windsor West Villlas $1,650 -- $1,782.00• Waterford Homes $1,680.00• Settlers Ridge Duplex $893.00• Hannaford Farm $600.00• Settlers Ridge Duplex 2 $550.00• Strafford Woods $550.00• Mallrad Point $449.00• Bliss Woods $425.00• Windstone $375.00• Walnut Woods $250.00• Winstone Manor $175 -- $250.00• Black Walnut Trails $175.00• Windsor Point $145.00

Assessment Increase

Upcoming projects that your assessment will fund:•2014 East Pond Erosion Control and Bank Stabilization: $60,000•2014 Algae Control Trials•2015 Paved Path Replacement: $20,000•2019 West Pond Dredging: $67,000

2013 Financials

• 100.0% of assessments were collected for 2013• Reserve accounts not funded in 2013• Expense Breakdown

$22,218 – 66.3% Maintenance$1,232 – 3.6% Entrance Redo$1,500 – 4.5% Surveying$3,565 – 10.6% Studies$957 – 2.9% New Rules, Regs & Directory Update$2,173 – 6.5% Administration, Communication $930 – 2.8% Professional/Legal Expenses$785 – 2.3% Insurance$158 – 0.5% Misc.

2013 Large $ Vendors

• Foracres- Landscaping services- $11,650• Conservation Land Stewardship- Pond area land work:

$7,105• Clarke Aquatic Services – Pond water work- $2,761• Integrated Lakes Management– Pond Study- $1,475• Todd Surveying– $1,500• Conservation Design Forum – Pond Study- $2,090• Total of $26,581; Grand Total of $33,513

2014 Budget - Changes from 2013 Budget

• Increase in assessment - $125/lot• Increased Budget carryover & Increased funds transfer

$10,389 – From checking account

$30,000 – Transfer reserve funds to checking account

• Changes in 2013 budget $1,350 – Decreased costs for Entrance planting redo $1,500 – Decreased costs for pond grounds

$2,000 – Decreased costs for pond maintenance

$60,000 – East pond bank stabilization

2014 Proposed Budget - Detailed

• Projected Expense Breakdown– $86,850 - 87% Maintenance, Redo’s +$59,840

– $3,000 - 3% New Rules, Regs & Update Directory $0

– $2,500 - 2.5% Miscellaneous +$500

– $5,000 - 5% Admin. & Comm. $0

– $1,250 -1% Legal Expenses +$0

– $900 - 1% Insurance -$50

Explanation of Reserves

Year Dues Reserves

2005 $125 $6,070

2006 $175 $6,300

2007 $175 $15,040

2008 $175 $19,200

2009 $175 $37,200

2010 $175 $49,700

2011 $175 $59,700

2012 $175 $50,900

2013 $175 $55,300

2014 $300 $25,300

Architectural Review and Modification Committee (ARMC)

• New Chairperson: Keith Zollers

• Only 6 projects submitted for review– Decrease over 2012– Foreclosure Home Remodel, Landscaping with Hardscape,

Deck, Patio, Dog Run, Pool Fence Repair and Replacement• For the most part, great cooperation from homeowners• Some hard scape and stone patio projects not submitted• Almost everyone is submitting complete packages for review• Website access to forms and phone numbers continues to help

improve process and cooperation• Upcoming new home on Forest Trail – first in 7 years!

Questions and Voting

• Questions?

• Comments?

• Vote

2014 Grounds Goals

• Spring Clean-Up • Foracres Landscaping

– Common grounds maintenance – Enhancement plantings at Black Walnut and Pinecrest

entrances

• Conservation Land Stewardship– Prairie mowing – late March or early April– Additional weed control: June, July, August– Re-seed prairie with grasses and native flowers

• Clarke Aquatic Services– Pond management /additional treatments added to west

pond

• Monitor vacant lot mowing & maintenance

2014 Focus

• Pond Bank Erosion Stabilization capital project

• Distribute new Member Directory insert

• More regular communications – New Communications Directors

• Continue Grounds improvements

• Legal Issues – collections, foreclosures, liens

• Rules and Regulations

Thanks for coming

Thanks