Annual Meeting Part 1 minutes, Wasatch Commons Condominium Association, 2024 01 10

Topics:  Election, budget discussion

Wednesday, 7:00-9:45 p.m.

Decisions: Elected Ben Trueman and Kerry Terrazas to Management.

Note: The ACM is switched to February 7 to avoid Valentines Day.

Present

Mike Wason, Vicky Wason, Jorge San Pedro, Robin San Pedro, Emily Buckner & Michael Abrahamson, Joe Sweeney, Gheybin Comish, Jordan Smith, Chery Keil, Hannah Kumlin, Stephen Smart, Alex Parvaz, Lynda Angelastro, Coleman Riedesel, Scott Price, Laraine Miner, Ben Trueman, Laura deBacker, Kay Argyle, Mary English, Cyd Golden,  Online: Eliza Perkins, Vinnie Mazzone (8:15 in person), Amy May, Chelsea?, Natalia Pond, Heather Durrant, Kerry Terrazas.  Proxies: #2 & 3 represented by Cheryl Keil, #12 represented by Jorge San Pedro, #15 represented by Ben Trueman

Notes: Kay.  Facilitator:  Mike.  Presentation of Election:  Linda.  Presentation of Budget: Ben

1  Laura DeBacker	8  Joe Sweeney	15  Kerry Terrazas online; proxy with Ben Trueman	22 Coleman Riedesel
2  proxy with Cheryl Keil	9  Hannah Kumlin & Stephen Smart	16  Lynda Angelastro	23  Cyd Golden
3  online, Amy May & Chelsea, proxy with Cheryl Keil	10  not present	17  Vinnie Mazzone (Eliza Perkins online)	24  Gheybin Comish
4  not present	11  Kay Argyle & Mary English	18  Lynda Angelastro	25  Emily Buckner & Michael Abrahamson
5  (online, Natalia Pond & Heather Durrant)	12  proxy with Jorge San Pedro	19  not present	26  Mike & Vicky Wason
6  not present	13  Ben Trueman	20  Alexandra Parvaz
7  Robin & Jose San Pedro	14 Laraine Miner	21  Scott Price	21 units represented

Attendance

Everyone please sign the signature page as it goes around.  If you have someone's proxy, note it at the bottom of the page and turn in a written signed copy to the note-taker (the Association Secretary). People attending remotely don't count towards the quorum and can vote only by proxy.  The remote person may consult with the proxy holder by phone. 

Elections

There are two positions to be filled.  A management term is two years. Scott and Vinnie (the position Coleen was elected to) are finishing their terms.  Kay, Cheryl, and Jorge were elected last year and have another year on Management.

People may run for re-election.  Each unit gets one vote.  Multiple inhabitants may either agree on the vote or split their vote. 

Two people from the same unit cannot be on Management at the same time.

We will have three rounds for nominations.  (1) Giving nominations and reasons. (2) Attributes. (3) Acceptance or decline.

You may nominate more than one person. Nominees must either be present and able to agree or decline or have sent an agreement to be nominated. People online may nominate. 

If you are nominated, please wait until the final round to accept or decline. Agreement may be over zoom.

Nominations Declined: Vicky, Vinnie, Coleman, Scott, Jordan

Nominations Accepted: Alex, Ben, Kerry

Responsibilities of Management

Management is the legal governing body of the association and made up of five unit owners.  Their duties are the association's insurance and its legal and financial business. They are responsible to ensure the association's capital reserve is adequate.  If/when we don't have active Management and Landscaping Committees, Management is also responsible for those duties. Management can delegate powers as they see fit. 

Management has access to a lockbox of unit keys.  In the event of emergency Management has authority to enter a unit without asking.  Residents may borrow their unit key if they lock themselves out.

There are three officers, selected by Management.  The President is the only person who has authority to sign on behalf of the association. The Treasurer make sure our book-keeping is done.  The Secretary keeps records.

Terms are for two years. If a Management member steps down for any reason, Management selects someone to fill the remainder of their term.

Management meets twice a month generally for two hours plus works on projects outside of meetings.

Elected:  Ben and Kerry

Committee Reports

Management. Worked this year on getting a better return on the Association's funds. Moved part of the capital reserve to a high-yield money market fund and eleven CDs @ $5K each.  Put part of operating account into CDs. Earned $3,670 in interest.

Book Club.  Tomorrow at Emily's 6:00 to 8:00

Maintenance meeting tomorrow Thursday at 7:00 p.m.

Insurance & ACM

The deductible of the master insurance policy is being increased to $30K.  [Added a policy this year which covers code upgrades, not just replacement costs, for rebuilding; required to qualify for FHA.  -- notetaker]

Management is planning to have our insurance agent attend a meeting, tentatively scheduled for February 7. The ACM is switched to February 7 to avoid Valentines Day.

Budget

Handout:  Proposed 2024 budget, historical and proposed monthly unit fees, schedule of capital reserve maintenance until 2032

Copies of the budget proposal are in the coat room and emailed. 

Proposing a 29.53% increase in Association fees.  The budget proposal increases the the deposits into the capital reserve by 27%, to $72K, and funds all committee requests. We are only at ~45% of the recommended total in the reserve. Some major maintenance expenses have had to be moved ahead of their original schedule. Doing the gutters all in one year will save $6K, out of $50K (paid from capital reserve, not operating budget) materials & labor, not including taxes and fees, and will make it easier to know which gutters' warranties end when..

 The next reserve analysis will be due in 2027.

Without new revenue as proposed the increase will be ~45%.  Additional revenue items include (1) A reinvestment fee, paid upon sale of a unit, (2) an increase in pay or play to 4 hours or $40/hr, (3) a charge for guest room use after one week per unit, (4) a fee to store personal property in the workshop/garage, (5) a $15/month fee for secondary vehicle(s). The alternative income items will be part of the budget proposal, with a provision that they apply indefinitely not just for 2024.

The next Management meeting is next Tuesday at 7:00 January 16.  If you have questions about the proposed budget, you are welcome to attend or send questions and feedback to the management listserv.

If the association does not pass a budget, the previous year's budget plus 5% is implemented until a budget is passed.

The proposal reflects $1800 savings in insurance premiums from increasing the deductible for the master insurance policy.

Request: Prepare an alternative budget that does not include the alternative income sources and consider moving the alternative income sources into separate proposals.

The budget will be voted on at the next ACM (Annual Meeting Part 2).

Emailed 1/27/2024.