MEADOWRIDGE BOARD OF DIRECTORS MEETING MINUTES May 23,2009 To: Members of Meadow Ridge Homeowners Association From: Arto Kazarians, Secretary I. Call to Order Meeting was called to order at 9:09 am at Meadowridge Unit No 5. All Board members, John & Earlene Henzie, the managers and owner of Unit 2 and homeowners of Units 10, 13, 16, 25, 27, 28, 33 and 40 were present. II. Minutes of the February 4,2009 Board Meeting Minutes of the February 4, 2009 Board Meeting was approved without reading. III. President's Report Easement - The Water Department easement is signed. Tennis Village has not signed the easement documents for their portion and the MLWD has decided to re-route and go around the Tennis Village property. MLWD will consider rerouting the power only if they do not obtain an easement from TV soon. Water Main Line - The existing water main line pipe has a protection coating that gets scratched and damaged by the rocks or any sharp objects that the pipe is embedded in. The pipe starts rusting and eventually starts leaking after the protective coating is damaged. Historically most of the main water line leaks have occurred in and around the southeast part of the project or the circular driveway. Apparently during the course of original construction of the project the construction debris was dumped in the utility trench around the southeast section of the project. The movement of the pipe due to the temperature changes or minor earth shaking causes the protection coating to get damaged. Any new pipe that we choose to install will be ductile iron. The new pipe will be of ductile iron material and will be embedded in sand bedding that will protect the pipe and the unsuitable soil will be removed and disposed. The proposal of separate trench is not a viable option due to complications. The hard plastic (C900) pipe is also an option, but there will be complication at the transition from main line to lateral at each building. Tim and Al spend numerous hours discussing the water main line issue with Mr. John Pedersen of MLWD to come up with the best scenario for us to proceed. He is Iof7
Transcript
MEADOWRIDGE BOARD OF DIRECTORS MEETINGMINUTES
May 23,2009
To: Members of Meadow Ridge Homeowners AssociationFrom: Arto Kazarians, Secretary
I. Call to Order
Meeting was called to order at 9:09 am at Meadowridge Unit No 5. All Board members,John & Earlene Henzie, the managers and owner of Unit 2 and homeowners of Units 10,13, 16, 25, 27, 28, 33 and 40 were present.
II. Minutes of the February 4,2009 Board Meeting
Minutes of the February 4, 2009 Board Meeting was approved without reading.
III. President's Report
Easement - The Water Department easement is signed. Tennis Village has not signed theeasement documents for their portion and the MLWD has decided to re-route and goaround the Tennis Village property. MLWD will consider rerouting the power only if theydo not obtain an easement from TV soon.
Water Main Line - The existing water main line pipe has a protection coating that getsscratched and damaged by the rocks or any sharp objects that the pipe is embedded in. Thepipe starts rusting and eventually starts leaking after the protective coating is damaged.Historically most of the main water line leaks have occurred in and around the southeastpart of the project or the circular driveway. Apparently during the course of originalconstruction of the project the construction debris was dumped in the utility trench aroundthe southeast section of the project. The movement of the pipe due to the temperaturechanges or minor earth shaking causes the protection coating to get damaged. Any newpipe that we choose to install will be ductile iron. The new pipe will be of ductile ironmaterial and will be embedded in sand bedding that will protect the pipe and the unsuitablesoil will be removed and disposed. The proposal of separate trench is not a viable optiondue to complications. The hard plastic (C900) pipe is also an option, but there will becomplication at the transition from main line to lateral at each building.
Tim and Al spend numerous hours discussing the water main line issue with Mr. JohnPedersen of MLWD to come up with the best scenario for us to proceed. He is
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encouraging Meadowridge to replace the pipe since the cost of the lost water is paid by thewater district. He has offered his assistance and consulting in this matter. Subsequent tothe meeting he had agreed to send the MLWD crew with leak detection equipment to scanthe water main line with no charge to Meadowridge. This will assist us to set the propercourse of action.
We have already two bids for the water main line replacement. There are two morecontractors in town that are capable of doing this work and we will get bids from them also.It is approximately a 20 day effort to replace all 1300 feet of pipe and connect new lateralsto each building. We have the option of doing the work in three or two or one phase.According to the bids there could be considerable cost savings if the water main wascompletely replaced immediately with the asphalt overlay being done by the samecontractor. Dan pointed out that our reserve study shows replacement in 3 phases for$448,000 and he guesses that it could cost less than $300,000 ($4,000/unit) to do it all now.One of the bids offered 3 year financing if the work was done this summer. Further, Danwas told that the costs of setup and testing could be $50,000 each time the water line wasworked on. Al pointed out that on Villar's bid the cost of a temporary water system was$5,700.
The water main line in Meadowridge starts at Valley Vista Dr. and goes around thecomplex and connects to main line on Meridian Blvd.
The construction bids to replace the water main line are $237 K by Chuck Villar and$180K by a contractor from Bakersfield. The bids are slightly misaligned but both includethe similar scope of work. Pedersen of MLWD has commented that Chuck is expensive andthus they have their own crew.
Due to high cost of the pipe replacement project and insufficient funds in the reserve thehomeowners would have been assessed to cover the cost of the pipe replacement. Thus, theBoard decided to postpone the replacement of the water main line to future fiscal years andnot to burden the homeowners with additional cost of special assessment in these tougheconomic times.
Jim suggested that in the event we have a water leak on the main line we can replaceadditional 40' each side of the damaged point. Thus, the board will be asking thecontractors to give price quotation for the 80 to 100 ft length of pipe. Jim also mentionedthat although the quoted replacement cost of the fire hydrants is quite reasonable we do nothave to change them and we can test them every year.
Al expressed his appreciation to the Board for the work and time they put for the HOA andthanked Dan and the CC&R Committee for the work they did in compiling the revisedCC&R.
Fire Department - Al mentioned that we received an "order to comply" letter from firedepartment. The letter requires us to clear the ground vegetation on the slope towardsSnow Creek within 30ft of our buildings and lower branches of the trees within 15 ft of the
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buildings and also to remove (or cover with a fireproof material) the fireplace logs fromdecks. At this time we are getting the necessary bids to do the brush clearing at the bluffside. On the Meridian side of our property the vegetation and dead tree limbs were clearedby the City last year and they are supposed to chip all the cut branches in place.
Al also mentioned that this issue started when Board has asked the management to stopwatering the bluff area natural vegetation. Dan explained that prior to a CC&R committeemeeting Richard Whitehouse expressed concern for the bluff units from the nativevegetation on the bluff down slope. The morning after the CC&R meeting, Dan sent an e-mail to all the board members sharing Whitehouse's concern. Armen added thatWhitehouse told the committee members about John Henzie's comment to him regardingno irrigation of the natural vegetation of bluff area creates fire hazard. In response to thisquestion and to clarify that the irrigation of natural vegetation does not reduce the risk offire, the Board asked for a walkthrough of Meadowridge grounds by Fire Department.After the walkthrough and a telephone conversation with Tim we received the compliancenotice from Fire Department.
IV. Management Report
Landscaping Sprinklers - the repair of the sprinkler system is in progress. The timer for thebluff area is replaced. Testing of all lines is in progress. The bluff side sprinkler heads willbe changed so that the water is not sprayed all over.
Need to call the pest control to come up to the project to do a walk through and inspection.
Power washing the tennis court. Some of the wind screens need to be replaced it will costabout $1000. Some areas of the concrete need to be repaired to prevent future trippinghazard. Board suggested postponing all tennis court upgrade expenses for next fiscal year.
All deck sliding screen doors are installed. Some need to be replaced. The revised CC&Rassigns the screen doors to the homeowners.
The management has received bids for staining the weathered side of the bluff units. In2006 the weather sides of all units were stained. Henzie was unclear whether this stainingwas an extra staining of the bluff since the cycle has changed because the staining materialnow being used has lasted much longer. This year the bluff units will be on three year cycleinstead of two. Dan requested a quote for staining the weathered sides for the balance ofthe project so that he could calculate the extra costs to be special assessed the bluff units asprovided in the current CC&Rs.
Al mentioned that we should not economize on treating the wood siding staining. Itprotects the building and structure. Cost of staining will be cheaper than changing thesiding as it happened many years ago.
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Pool Area - There are some cracks on the pool deck and some tiles are loose. We are stilltrying to comply with the Virginia Gramme Pool Safety law. So far we have changed thepumps and add suction control on pumps so nobody gets sucked into the skimmer.
County of Mono gave a letter of clarification of their position about the law. They are notenforcing the federal law, only if there is a major remodeling or change to the pool. For us,the only item left is to install the drain cover.
The tree expert from City has checked out the tree we are planning to remove andsuggested to hire an arborist and follow his recommendation. We have $3500 pricequotation for removal of that tree. Al suggested trying to protect and save the tree, but thepossibility exists that we may have to remove it. The board directed John to purchase andapply a chemical around the tree which could eradicate the beetle problem.
All BBQ stands are installed and are ready to use.
Spa Cover - The existing cover is disintegrated. A new cover will be ordered. It will be thesame material like the one we have. Al urged the homeowners and management to makesure the cover is on after use and at the end of the day when the manager does hiswalkthrough at the end of the day. John suggested putting a sign for that purpose.Irrigation and Landscaping - Most of the cities in California are raising the water usagefees and Mammoth Lakes is not exempt. Meadowridge water bill is high and we need toconserve water. Each building in Meadowridge has a single water meter and HOA paysthe water bill with one single bill. Converting to a single meter for each unit will be costprohibitive. John explained the landscape irrigation pattern that some areas need twice andsome once a day. Tim, Al, Dan and John did a walkthrough and set a program and rulesfor irrigation and landscaping. The Board suggested changing the landscaping to moredrought resistant and native plants. Dan suggested having an owner landscaping work dayand if any owner wants to re-landscape their area on their own expense, they should beallowed to do so. Board members agree.
Al asked John to come up with the list of the tools and equipments that are owned and paidfor by HOA. John mentioned that there are not many but he will come up with the list.
V. Treasurer's Report
Dan gave the financial report and explained that each Board member has an area ofresponsibility for expenses. Last year the Board established expense approval system whichrequired each expense items to be approved by the responsible Board member beforepayment.
Dan provided a worksheet to everyone showing the liabilities in the current reserve studyfor fiscal years beginning July 1, 2009 through July 1, 2013 (next 5 years). Each itemscheduled to be done was discussed and the board developed an alternative plan deferring
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items to later years and reducing the costs of others based upon available information andrecent price quotations. Under the alternative plan, the first of 5 annual special assessmentsof $78,300 each ($1,535 per unit) projected by the reserve study was deemed unnecessary.
A copy of operating budget worksheet of fiscal year (07/01/2009 to 06/30/2010) wasdistributed and was discussed item by item. The administrative budget was decreased$2600. Major items were a decrease in insurance premiums of $8000 and increases forbuilding measurement, legal and accounting services, and mailing expenses of $7500 forthe new CC&Rs. The maintenance and supplies budget was decreased $6500 reflecting anincrease of $3000 in snow removal and decreases in buildings ($5000), grounds ($2000)and trash removal ($2500). The utilities budget was decreased $7000 reflecting a decreasein propane and electricity costs of $8000 and $1500 respectively and an increase in waterof $2500. Overall, before major projects the budget showed a surplus of revenues overexpenses.
Board discussed and agreed to transfer excess common area fee that were not spent toreserve funds.
As part of change to reserve study on the water main replacement expense item Jim madethe following motion.
Motion - Proposing to plan on as needed basis a one occurrence per year at next watermain line leak to be replaced as approximately 80'-100 ' length reconnected to the existinglaterals to each building with estimated cost of 25K including asphalt patch.
The motion was seconded and discussed.
The Board members further dicussed the water main line replacement project and its cost.They realized that considering only one water main line damage per year may beoptimistic, but due to current economical condition and financial hardship they did notwant to put further burden on the homeowners with special assessment in upcoming fiscalyear.
During the discussion, Toby Bernstein expressed her concerns that we would have nocontrol as to when work would be necessary on the water main. She related her experiencein Los Angeles when a serious plumbing issue occurred on New Years evening which wasa Thursday. It wasn't until the following Monday that a plumber was available at regularrates. She questioned the effect of a water main break on Christmas evening in Mammoth.Al duped this case scenario the Toby Effect.
Dan noted that assuming only one break a year is far too rosy. In 2008 we repaired 4 leaks.
The motion passed 4 tol. For explanation of the negative vote, please see the enclosedTreasurer's supplemental report.
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Al reviewed the snow removal expenses. For fiscal year '07 to '08 season it cost HOA 66Kand for '08 to '09 season it cost HOA 27K which was within estimated budget. This wasachieved by monitoring the cost and more efficient snow removal procedure and a belowaverage snowfall.
Trash Removal - Discussion was carried on about the trash bins and bear issue. We willkeep three bins with one pick up per week and second pick up will be on as needed basis.The gardener will be hauling away the yard clippings and trash and he will not be using thetrash bins thus three bins with one pick up per week will be sufficient for the time being.
Electricity - It was suggested changing the common area light switches to motion detectionand energy saver switch, to conserve electricity and reduce the expense.
Based on the cost savings and the reduction in operating budget the common area fee wasreduced. Al made the motion to set the common area HOA fee.
Motion - To set the HOA Common Area fee to $630 per month for the fiscal year of07/01/2009 to 06/30/2010. It was seconded and approved unanimously.
VI. Proposed Changes to the CC&Rs
Revised CC&R was presented by Dan. Some questions were raised by Board members forclarification.
As proposed in the new CC&Rs the cost of roof repairs and staining the sidings will beallocated based on square footage of roof and siding of each unit. Some discussionfollowed about having the common area fee to be based on square footage of each unit.
Dan asked the Board to accept the CC&R as concept so that we can send the draft copy tolegal counsel for review. He made the following motion.
Motion - Approve the proposed CC&R in concept subject to:
1. Window glasses to be responsibility of homeowners for both repair and replacement2. Clarify assessments can be based on approved budget amounts3. Vehicle restriction to include buses4. Insert square footage in all exhibits5. Article 4.3d benefits are transferable6. Legal review by counsel7. Professional measurement of the square footage of the roofs and siding of each unit
It was seconded and approved unanimously. (Subsequent to the meeting the proposed CC&Rswere changed to reflect changes 1-5 and submitted to our legal council for his review.
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VII. Rental Contract
Jim made the following motion in regards to the rental agency agreements
Motion: Board to formulate and adopt a form of enforceable rental agreement for all rentalagencies that operate in Meadowridge.
It was seconded and unanimously approved.
VIII. Owner's Open Forum
It was suggested to bundle the cable TV service to save cable TV expenses per unit. It wasdiscussed but was not supported by the majority of board members.
IX. Next Meeting
Next meeting is scheduled for July 22, 2009, at 5:30pm. The meeting will be at JimShehan's office conference room at 12170 Santa Margarita Court, Rancho Cucamonga, CA91730.
X. Adjournment
Meeting was adjourned at 3:00 pm.
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MEADOW RIDGE HOMEOWNERS ASSOCIATIONTreasurer's Supplemental Report to May 23,2009 Minutes
As Treasurer, I feel a fiduciary responsibility to supplement the accompanying minutesand budget due to my discomfort with assumptions related to the water main the Boardhas taken at its May 23, 2009 board meeting. While it is possible these assumptionscould prove correct, I feel that every owner needs to be aware of the risks should they beincorrect.
I was the sole vote in opposition to the Board's plan: to replace the water main where andwhen a leak occurs in 80 to 100 foot sections at a cost of $35,000 per section includingasphalt overlay. I believe the Board's assumption of only one break a year is best case inlight of the last 5 years as is the assumption that only a limited section of pipe is incontact with erosion-causing material. In addition, I believe the cost to replace an 80 to100 foot section is likely to be $40,000 to $50,000 per section. Finally, I believe that theweather in Mammoth requires a proactive plan instead of a passive one when it comes toreplacing the water main.
To assist you in evaluating the possibilities that face us regarding the water main, I amproviding the following information:
The water main was installed in 1980 (a diagram is enclosed.) Our professionallyprepared reserve study gives the pipe a 35-year life and schedules its completereplacement in 4 sections during the next 3 years. Inspections during prior repairsshowed that the pipe was in good condition except for the portions that rubbed againstmaterials that should not have been allowed to be in contact with the pipe when it wasinstalled. The pipe degrades due to rust and friction with hard objects when the pipemoves during water pressure changes, earthquakes, etc. Three shut off valves located onthe water main exist so that portions of the project can keep water service duringrepairs/replacement. These valves are located in front of Units 40, 44 and 51.
Since 2000, the water main has had 12 leaks. Each time, a leak (or in some cases an areaof multiple leaks) has been located, exposed, sealed and covered. (An invoice of theOctober, 2008 repairs is enclosed.) I have prepared a list of the repairs on the enclosedHistory of Water Main Repairs and have included a graph of the frequencies, locations,and times of year repairs were performed.
Our reserve study is required by the State of California. While the amount of money wecontribute toward the reserve liability is totally up to us (the Board or, if the amount isover 20% of the annual budget, by owner vote), the reserve liability is not under ourcontrol but is determined by a certified independent professional. Also required by statelaw, all potential buyers are provided a report showing that reserve liability and whatpercentage of the liability is in our bank account. I imagine that until significant portionsof the water main are completely replaced, it will remain a current reserve item of$280,000, assumedly a consideration by any potential buyer. In addition, the Board willdefer as long as possible the asphalt overlay on sections under which the water mainremains unchanged. The asphalt overlay's reserve liability is $168,000. Had the Boarddecided to completely replace the total water main and have the same contractor do the
MRHOA Treasurer's Supplemental Report to May 23,2009 Minutes
asphalt overlay, $448,000 of reserve liability would have disappeared at a current cost ofless than $300,000 based upon quotes obtained. While this Board has remained focusedon reducing costs wherever possible, I believe it has missed a significant opportunity tosave $150,000 over the long run. It may remain possible to obtain the savings generatedby total replacement in the future if the favorable demand-vs-supply conditions don'tchange and competitors in this area remain in business.
As we know, the Mammoth weather can be harsh and unpredictable. The temperaturebetween November 1st and April 30th usually drops below freezing. A temporary watersupply during the time the water main is shut off must be placed on the groundunprotected from the cold. This makes any replacement during these 6 monthsproblematic, since many of the units are wanned by running heated water through the .heating system. Should we have a shutoff when the temperature drops below 32 degrees,many units would risk freezing and/or bursting pipes. A burst water line can createsignificant damage, and the cost to repair the unit and its furnishings that are waterdamaged would be our expense. Therefore, since I can't imagine turning off the watersupply any longer than a few hours during these 6 months, we would repair the breaksthat occur during these months in the same manner we have in the past.. .sealing the leakand not replacing an 80-100 foot section. This temporary fix, while necessary, would notlengthen the life of the main and is a waste of our money.
None of us knows whether significant portions of the water main will or won't fail in thenext few years. Your Board has decided to budget that it will not. If they are incorrect,we will be asked to vote ourselves significant assessments to cover the costs ofreplacement under emergency conditions. If the Board is correct, we may save money byreplacing only the portions of the water main that have leaks. How much will depend onhow the time and material replacement costs compare to the current bids. Of the 5contractors I spoke with since the meeting, only one would provide an estimate forreplacing 80 to 100 foot sections. The others either were not interested or laughed andsaid, "You need your head examined." The one estimate was 137% more per linear footthan his per foot quote for doing the whole project. The Board is hopeful that only theportions of the water main that have already had leaks will need to be replaced,specifically between the garage and unit 28 (approximately 40% of the water main or 550feet.). The remainder of the water main liability will remain on the reserve study to beviewed by potential buyers.
I hope I have provided a clear and more complete picture. I believe the Board is trying tosave the homeowners money in a situation with difficult choices. I feel a responsibility,however, to insure that all owners understand fully all the alternatives and their relatedpotential costs. If you have questions, please call me.
Meadow Ridge CondosP.O. Box 8290Mammoth Lakes, CA 93546
RECEIVED
OCT 2 " 2008
LUTNER HOA SERVXSl
SHIP TO
Meadow Ridge CondosWater LeakBy Unit 40 & Unit 28
P.O. NO. TERMS
Due on receipt
SERVICED DESCRIPTION QTY RATE AMOUNT
10/21/2008
10/22/2008
Cut asphalt by jack hammer by Unit #40. Remove asphalt; top dirt and rocks with Backhoe.Remove remaining dirt with Vactor truck. Haul 1) load mud and rock to yard. Place mullerplug in leak. Very difficult to work on water main due to utility cable and conduits on andaround water main. Haul in sand and dirt to backfill excavations.
Cut asphalt with jack hammer by Unit #28. Remove asphalt, top dirt and rocks with backhoe.Remove remaining dirt with Vactor truck. Haul 3) loads of mud and rock to yard. Locatelarge leak. Cover with repair clamp, continue digging west Water flowing into excavationfrom another leak further west Place safety barricades around excavation for the nightService Truck & ForemanService Truck & LaborVactor TruckLabor10 Wheel Dump Truck590 BackhoeJack Hammer per dayAir Compressor day use25' Air HoseWacker compactorFill Sand per yardScreened dirt per yardMuller plugRepair clamp
Continue digging west in front of Unit #28. Locate second leak. Place muller plug, cover withsaddle, Haul in fill sand and dirt to backfill excavation. Place dirt in lifts and compact Haul incold mix asphalt Patch asphalt removed by Unit #40 and in front of Unit #28.Service Truck & ForemanService Truck & LaborLaborVactor Truck590 Backhoe821 Loader10 Wheel Dump Truck
8.517
8.516
5.55.5
81616
1.58
2.55.5
75.0072.50
300.0039.50
105.00125.00150.00175.00
5.0095.0010.0015.5039.99
192.32
75.0072.5039.50
300.00125.00140.00105.00
637.50^1,232.50*2,550.00 b
632.00 *577.50 $
. '687.50s*""150.00
" 175.005.00
95.0040.00Tte>
' 62.00T fc79.98T x
192.32T
600.000
632.00^450.00 o
l,000.00tr35O.OO>577.50
Total
III
Pagei
Chuck Villar Construction, INCP.O. Box 1183424 Commerce CircleMammoth Lakes, CA 93546CALic.#A541619 Phone (760) 934-2114
InvoiceDATE
10/23/2008
INVOICE #
10038
BILL TO
Meadow Ridge CondosP.O. Box 8290Mammoth Lakes, CA 93546
SHIP TO
Meadow Ridge CondosWater LeakBy Unit 40 & Unit 28
SERVICED
TJI
P.O. NO
DESCRIPTION
252 RollerJack Hammer per dayAir Compressor day use25'Air HoseWacker compactorPropane TorchMidler plugSaddleCapNippleCold Mix Asphalt per yardBitchomal per gallonScreened dirt per yardFill Sand per yardPropaneDump FeeSales Tax
