Management minutes, June 3, 2025

Management Meeting, June 3, 2025
In attendance: Ben, Cheryl, Michael, Kerry, Stephen, Alex (first agenda item), Jorge

Alex presents additional Farmette budgetary needs for 2025

Alex acknowledges 300% increase for 2025, but incidentals and emergency repairs have inflated the costs thus far, including, as estimates:

• • More seed-starting mix ($80), which should cover 2025 and 2026 
    Switch valve adapters ($25)
    Hose adapter swivel fitting ($7)
    Scale for weighing produce harvest was included in budget, but not batteries ($20)
    Insect netting cloths (2 purchased, 2 more needed), additional $50 requested
    Bigshot nozzle for washing produce and blasting off aphids ($13)
    = about $200 in excess of budget ($7.69 per unit) REVISED up to $235 
    Estimated market value of last year’s produce was $10,000

-    Jorge has no concerns based on the financials currently, but reminds management that no major projects have been undertaken yet this year
-    Remaining budget prior to these costs was about $15, but there were some incomplete reimbursements, some of which are on the list within the $200
-    Cheryl asks where the money will come from in the budget, mentions that it could come from the operating budget
-    Alex suggests conversation with Landscape and Maintenance
-    Kerry counters that we are only halfway through the year, and we shouldn’t assume that those committees won’t spend their allotted budget
-    Ben asks that if further budgetary needs arise, to bring those costs to management in advance
ACTION: Management unanimously approves additional Farmette budgetary request of $235

General management orientation discussion

-    Ben reminds members that his role as President doesn’t carry more weight than other members of management and that we should value discussion and permit changing of minds, even in cases where things seem time sensitive

Maintenance request submitted for repair of corner of Unit 19 porch
-    Ben reminds of prior conversations regarding this, that foundation issues were discussed, with porch being an addition to that prior (possible) project; once foundation issues were found to be cosmetic, repair of porch was not undertaken
-    CC&Rs have some gray area carveouts for things that HOA has to do, such as damage in order to permit exterior repairs, or insurance claims above the master policy deductible
-    Ben remarks that porches are Limited Common Area according to CC&Rs, and quotes two portions of that document
-    Cheryl makes comparison to Ben’s concrete project, which is confined to Limited Common Area around his unit (minute-taker note: drainage work on front of house is not within Limited Common Area)
-    Michael suggests that unit 19 has a contiguous roof over the conditioned space of the house and the porch, which is different than other units, which have a non-conditioned shed roof over porch
-    Michael calls attention to column on Southwest corner of Common House, where steel “stirrup” under wood column is visible emerging from cylindrical concrete footer, and that concrete slab of porches poured in between
-    Ben observes that Utah condo law gives us a lot of leeway, for example, to make unit owners responsible for roofs, which we don’t do; thinks that repair of porches hasn’t been discussed and that this hasn’t been included in Reserve Analysis
-    Kerry recalls that Chelsea and her parents were told the porch corner would be repaired, as the submitted maintenance form states
-    Ben comments that a letter was written about the foundation anchor bolt investigation that may have been interpreted to that effect
-    Jorge recalls that the appearance of the foundation spalling was discussed being repaired, in addition to the porch corner
-    The different design and construction of unit 19 presents a difficulty for management 
-    Cheryl feels that a fixed amount could be offered for the repair out of goodwill, and any additional amount could be unit owner responsibility
-    Cheryl suggests speaking to contractor who has been consulting on stucco and unit 1 & 2 repair to get an opinion on this 
-    Jorge returns conversation to the legal description of the Limited Common Area and that we need to treat all unit owners equally in those areas
ACTION: Management agrees that a member will speak to Chelsea about the issue and will write a message about it differentiating foundation and structure from Limited Common Area (the concrete slab)

Ben asks whether in the March minutes were reflective of Management decision about concrete project

-    Jorge recalls that management was in support of the project
-    Cheryl mentions that she had several discussions with residents about the scope of the concrete project, and that despite uncertainty about scope, management was in support of the project
ACTION: Management in agreement that March 4, 2025 minutes should be amended
ACTION: Management in agreement that that minutes should be reviewed at the start of each meeting

Report from “field trip” taken by Ben and Michael to look at Corkshield-clad house in Herriman, Utah on 5/31/2025

• -    Ben suggests that we consider a loan to cover the cost of a stucco project in order to avoid inflation
  -    The Corkshield option’s low maintenance is appealing and that a cost analysis should be run to see whether the option could pay off in longer term
  -    Cheryl counters that a more conventional option would allow us to continue improving and refining our maintenance schedule
  -    Ben remarks that caulking on a regular basis is not built into our budget and reserve analysis, and reminds that past painting projects haven’t resulted in desirable results
  -    Cheryl prefers not to compare stucco painting to wood painting, due to different levels of maintenance and decay before painting
  -    Kerry states that larger reserve account balance would make her more comfortable with an “unproven” product/material
  -    Ben would like to do a long-term analysis of the maintenance costs for both options
  -    Cheryl is also concerned about long-term viability of Corkshield
  -    Ben returns conversation to a loan to complete the project in one year rather than paying for extending the project over three years
  -    Cheryl clarifies that this would also allow us to know when stucco was done on all buildings rather than periodically 
  -    No action taken but conversations will continue about stucco painting/surfacing

Election of successor management member to replace Jorge

-    CC&Rs state that management elects a member to serve until the next annual meeting, then the remainder of the two-year term is to be filled by community election 
ACTION: Stephen Smart elected to management until next annual meeting
-    Jorge, Ben, and Steven will coordinate the transition of treasurer role 

Bookkeeping report from Jorge

$51922 in operating account ($2200 in CD)
$179277 in reserve account (most in money market, 8 CDs are active in this account, one matures in July, one in August, three in October, and one in April 2026); Jorge suggests we keep the CDs active and add additional future deposits to money market, which is more flexible
-    Movement of funds to reserve account has been on hold recently due to uncertainty surrounding taxes on interest, but that will be reactivated
-    Jorge also suggests that a consideration in a construction loan would be whether that interest is deductible from federal taxes; if it isn’t, a loan might not be worthwhile 
-    Ben suggests that a construction loan would “lock in” costs and alleviate uncertainty of possible higher costs in future years
-    Maintenance schedule and reserve analysis could also account for doing things all at once rather than spreading them out over multiple years