Membership Meeting Minutes
ATTENDED: Marguerite Elia, President; Greg Watanabe, Treasurer; Darrell Y. Hamamoto, Secretary and six home-owner members at large.
ABSENT: Eric Olsen, Vice-President
Meeting called to order. Quorum met through thirty-five election ballots. Nine residents were in attendance.
Agenda
1. Introductions: PROE HOA officers and general homeowners.
Marguerite Elia reported that seventy-one (71) households are current on dues. Nine (9) households are delinquent in dues ranging from one month behind, to a few on the verge of foreclosures.
2. Board Election Procedures
President Elia explained the process of the three election inspectors PUBLICLY counting the ballots, to those in attendance.
Twenty-four (24) or more ballots are required for a valid vote based on our CCR rules for those homes who are current on their dues. Thirty-seven (37) ballots were submitted. Two (2) ballots were disqualified ballots because of delinquency in dues. There were a total of thirty-five (35) valid ballots.
3. Election tabulations
Three election inspectors counted the ballots publicly.
A total of thirty-four (34) ballots were cast in favor of the reelection of Marguerite Elia as president of the Park River Oak Home Owner’s Association.
A total of twenty-four (24) ballots were cast in favor of the reelection of Eric Olsen as vice-president of PROE HOA.
4. Year in Review 2012
Planned Unit Development (PUD) defined: It is in a legal category similar to a single-family dwelling moreso than a condominium according to the PROE HOA CCRs. This legal category DEFINES who repairs what, based on who OWNS what and the homeowner bears the burden of most repairs, by state law.
President Elia reported that homes are selling once more and once again the newest residents are therefore requesting inappropriate services for their PRIVATE dwellings. She referred to the definition of PUDs and laws that establish that they are responsible for all repairs within their own walls, and numerous external features as well.
President Elia estimates that the value of PROE homes dropped by about $25,000 due to one price that was listed at an artificially low price of $80,000 for many months, although it sold higher than that, it had a domino effect for other sales.
PROE is not a “condominium complex.” Therefore, PROE residents are legally responsible for all repairs from the ground up to the roof, the only exceptions are the items listed in the Reserve study such as the roof and gutters. We have never repaired windows, doors, or balconies, those repairs belong exclusively to the owners.
In one case, a bank questioned the refinance of a home due to our purchase of “condo” insurance rather than PUD insurance. Condo insurance is more comprehensive in order to allow catastrophic roof repairs, because on a PUD, homeowners are even responsible for their roofs by legal and insurance definitions.
Condo insurance allows us to provide partial (excluding exterior areas such as balcony, doors, windows, etc.) coverage whereas PUD insurance puts ALL repair burdens on homeowners, including all exterior and interior features. But condo insurance ($20,000- $25,000+/year) costs us far more than PUD insurance. Homeowners would be at far greater financial risk, however, with PUD insurance only. We are a PUD, but we possess Condo insurance for extra protections to the homeowners.
“Residential” repairmen and services in the past have been substandard, because PROE HOA is technically a “Commercial property” (multi-unit property). PROE HOA pays “Commercial rates” for everything; hence dues are set at $250.00, which is an excellent price given the commercial rates.
The swimming pool is a “Commercial” property. Health and safety risks require strict adherence to posted rules. Paladin Security has been enforcing rules, so problems have abated this 2012 year.
The PROE HOA Board voted that dues will not increase for 2013, and there have been no dues increases for many years since we became self-managed and the President volunteers many hours per week.
President Elia provided updates on two current lawsuits involving the PROE HOA:
1. Nothing substantial has progressed with “construction defects” lawsuit. The case is still in mediation; and somewhat inactive currently. The developer has claimed no funds beyond an insurance policy and possibly the need for bankruptcy if we pursue beyond the insurance. Attorney Eugene Haydu could not locate information on the assets of developer, contrary to his previous assurances. Therefore, the legal case is at a standstill. The roofs continue to leak every single year, averaging about 3 leaks per winter but we are repairing the roofs as they leak. One homeowner from the meeting’s audience commented that tiles are falling off the roofs.
2. Yeager case: There has been one hearing so far. The Yeager case might be going to trial next year. PROE HOA is suing for the complete recovery of past dues and legal fees. The Yeager party owes approximately $30,000+ for services consumed, unfair enrichment, and unpaid dues.
President Elia reported that PROE HOA financial reserves are currently at $300,000. There is no dues increase proposed again for 2013 but the area that MOST needs more financing is our Reserves. President Elia says it is possible that dues will increase eventually because it has been many years with no dues increases, although inflation has never stopped.
President Elia reported that automated gate repairs (since 2005) were very high until this year which for the FIRST time have been nil due to converting that “rear” gate to exit only use this year. The PROE HOA saved money by this decision compared to last year where gate repairs were needed nearly every single month. That money went into roof repairs instead.
5. 2013 Budget
There was a thorough gutter cleaning work-project done this year, so the PROE HOA will not incur a similar level of expenses for such maintenance in 2013.
President Elia stated that once the two lawsuits are resolved, this budget line item will be greatly reduced and these related expenses will go into the PROE HOA financial reserves which are still inadequately funded.
6. Question/Answer/Comments Period
Paladin Security patrols PROE six times/day.
President Elia reported two or three cases of basement leaks in the past and numerous roof leaks.
Sewers: President Elia has called city of Sacramento for emergency sewer work. The city has been non-responsive and stated that they will not serve gated communities except to charge us steeply every month! We maintain a sewer cleaning schedule that we directly pay for.
A resident asked about mailings to PROE residents concerning “sewer insurance.” Other members suggested that this was a scam and there was no need for such “sewer insurance.”
President Elia described past cases of sewer problems: Example, plumber found “construction debris” stuck in sewer. Also, there has been clogging due to the dumping of grease down drains.
7. General Membership Meeting adjourned at 6:00pm
Respectfully submitted, Darrell Y. Hamamoto, Secretary