OT: Is this OUR Leon Blaser making friends everywhere he goes?
Pepper Hills Homeowners Association Meeting
Minutes 9/12/98
Called to order 7:10 p.m.
INTRODUCTION
David Day indicated this is the first official meeting of the association; the Blasers and Garret Longstreet declined to attend. They want us to meet, define committees, etc., and then they will turn control over to us in October. David introduced himself and members of the transition team: Mike Garrecht, Dia Gainor, Jim Armstrong, and others on transition team who were not present. First thing we need to decide how we will vote; reviewed one vote per lot provisions in arts of incorporation, requested only one hand per lot be raised, those with proxies use additional fingers.
OFFICER NOMINATIONS/ELECTIONS
Voting in officers is a necessary first step to transitioning the control of the association from the developer to the homeowners. Nominations were opened.
President: David Day nominated. No additional nominations. Vote was unanimous.
Vice-President: Mike Garrecht, Jason Schwenson nominated. David asked each to introduce himself.
Mike is a twenty year state employee in the Tax Commission; previously lived in a condominium complex and was part of the board of directors there, including president for seven years; knows that there is a lot to do to in Pepper Hills.
Jason is a construction superintendent, is proud of the subdivision, and wants to see it kept up. Has worked in many subdivisions, and sees ours as going downhill already. Perceives that we need a lot of help, especially because of Blaser, and wants a nice subdivision.
Vote was 2 for Mike, 23 for Jason.
Secretary: Dia Gainor, Lori Holt nominated. David asked each to introduce herself.
Dia works for the state in the Emergency Medical Services Bureau. She began assisting the Pepper Hills homeowners by drafting the letter following the last homeowners association meeting to get Blaser's attention that we were serious about our concerns and desire to transition control. Has had experience with numerous homeowners associations.
Lori a secretary at Jackson's food stores, does minutes and correspondence regularly, proud to live in Pepper Hills.
Vote was 16 for Dia, 9 for Lori.
Treasurer: Jim Armstrong, Mark Orndorff, Mike Garrecht nominated. David asked each to introduce himself.
Jim has been in this development since December of last year, as some organizational experience, Treasurer is perhaps the busiest job keeping track of dues, payments to contractors, has a contractor, open to new ideas.
Mark is a Micron systems administrator, very interested in serving the association but perhaps not as Treasurer.
Mike has a degree in accounting, but does not have a computer. He acknowledged that having a computer would be essential to the Treasurer.
Vote: Jim 25; Mark 0, Mike 0
Discussion about remaining types of positions on the Board of Directors was held. Point made that it should be an odd number of directors; motion made that it be a board of seven with four officers and three other board members, seconded. Vote was unanimous.
David reminded the members that these issues and others are up to the association to define since no bylaws have been drafted yet.
Consent to open nominations, with election for three with the three highest numbers of votes. Consent that every lot could cast a total of three votes. Suggestion that to afford continuity, each seat should have staggered duration. Further suggestion that some form of automatic transition (e.g., vice-president becomes president) be considered to further assure continuity when the President's term expires.
Nominations: Mark Orndorff, Mike Garrecht, Lori Holt, Vern Hart, and Chuck Robertson.
David asked those who had not yet had a chance to introduce themselves in prior nominations to do so.
(Number of votes received shown in parentheses after each name)
Mark Orndorff (16) 1 year
Mike Garrecht (11)
Lori Holt (12)
Vern Hart is a computer professional, lives on Blueberry Dr, owns the internet computer domain "Pepperhills.org", (17) 2 years
Chuck Robertson was secretary for Gem State Kiwanis, lives on Silverking, was president of a HOA for three years (25) three years
Outcome of vote:
Joining the officers to form the Board of Directors are: (term in parentheses)
Mark Orndorff (1 year)
Vern Hart (2 years)
Chuck Robertson (3 years)
SCOPE OF THE ASSOCIATION
David introduced an agenda item about "how big the association should be". Has heard that Pepper Hills is 98 acres but has seen official government documents that it is 101 acres. Pepperwood, to the south of the school site, is planned for 150 condominiums, additional multiplexes, some single family homes, playground and pool. Developer is allowing us to decide if we should allow to fold Pepperwood into the Pepper Hills Homeowners Association (PHHOA). Some pros and cons ... can be significant source of revenue, has facilities (such as the pool) which can be desirable, less common area to maintain. Cons include liability, possible lack of desire for Pepperwood occupants to pay higher fees, especially if related to landscaping. Some units already in Pepperwood are twenty years old, but many more units being added in the future. Concern that Pepperwood issues cannot be addressed by our subdivision association, concern about impact to long time residents to be "taken over" by PHHOA. Concern that Pepperwood residents might let the area go and that would affect the Pepper Hills property values. Developer assures that the high-density housing will be owner occupied. Members expressed doubt that that would remain the case on a long-term basis. Question whether PHHOA could block the construction through a suit to change the zoning. Question whether hearing would be necessary, but zoning change could have taken place years ago. Concern that fourplexes will have negative impact on Pepper Hills home values. Suggestion that being part of the solution (inclusion in the same HOA) would be beneficial. Member described experience with condos in Eagle, have steep fees and strict covenants that keep up appearance. David described that the pool and other common areas would be governed by their own covenants, but we would have mutual interaction on other common issues. Suggestion that we put this matter for some more investigation to the new board members. Leon has desire for us to decide soon. Question whether Pepperwood is being maintained well now. The Pepperwood residents there are likely to come over to use our facilities (to the extent we have any). Desire for at least some kind of sign-off on covenants or other bargaining leverage was expressed. Need to have some kind of input on whether their covenants are complimentary to ours. Identified a desire for further information, need for members to think about it. Leon Blaser should be willing to discuss this with us and answer questions about this in October.
Some discussion about the school, a bond this fall should secure the land trade, another bond can be expected in two years to establish an elementary school there. City will maintain park, will probably exist three years from today. Entertained motion to table the matter of the Pepperwood inclusion in the PHHOA. Passed by voice vote.
Architectural Control Committee: Bylaws call for appointment by Directors, discussion about number of Architectural Control Committee (ACC) members...3? Distribution from throughout the subdivision. Recommendation that the three at large board members be the architectural committee, who can have additional volunteers as needed. Discussion about duties of the architectural committee, they do requests for variances, approve designs and colors. Right now the ACC is the Blasers and Garret Longstreet. Request for expression of interest among members present to be ACC volunteers received no response.
Motion that the three at large board members be the ACC. Passed by voice vote.
Discussion about additional volunteers (as needed) participating, such as the block representatives. This will be left to the discretion of the ACC and specific provisions that may be drafted in the Bylaws.
BYLAWS
By acclimation, the members present agreed that the Board members will begin drafting Bylaws. Dave provided Jim with a list of owners by Block and Lot number. Names and telephone numbers of Board members will be circulated to members. Discussion about block representatives and their roles included the desire to isolate the officers from the "heat of the conflict" through the Block Representatives; they could also be the arms and eyes of the ACC, they could also be distribution points for minutes and other correspondence. A proposed definition of the blocks will be brought to the October meeting by the Board and allow occupants of those blocks to volunteer.
TREES
Trees on Peppermint are gone due to insect infestation in roots, which is very difficult to eradicate. At developers expense (initially) the same species of trees could be in, but differences of flood irrigation instead of sprinklers and annual or biannual injection of systemic insecticide would be at HOA expense. Other trees could be planted (non-deciduous, resistant to the insects) that would not be as pretty as the original design. PHHOA has not gotten a second opinion from another landscape company. The point was made that it should not cost anything for evaluation. Concern that it should be treated so as to minimize the chances of spreading. Robertson assured that this was something the Board could look into very readily. David unsure as to ongoing obligation of developer for resolution. Motion that Directors should pursue an additional evaluation. At least three years of flood irrigation is necessary to eradicate the bugs. Can be dealt with at the Directors meeting and have more information for the October meeting.
DUES
According to the covenants, $200 HOA fee is paid at the first purchase of each lot, $50 per year per lot has been assessed thereafter. Some fees were collected in 1997, no collections in 1998. By law, Blaser must account for all revenue. A belief was expressed that there is no account and no funds will be turned over to the PHHOA. David described that we are in a good position since we could collect $50 from existing lot owners, but covenants require that a notice be sent to each owner the prior fiscal (calendar) year. We could send a notice for 1999, and request that each member should be asked to pay 1998 dues. There was some discussion about the amount of assessment set in the covenants, and requirements to increase assessments more than 20% per year and the percent of members that must be present to raise dues. Discussion that regular annual assessments can be set by the Board (see covenants), and possibility that Board is not limited to $50 for the first year assessment once PHHOA is under homeowners' control.
Goal for turning over PHHOA to Pepper Hills homeowners in October would include a turnover of records from Blaser, but expenses to date may have been paid from general development funds and will have no subdivision specific records.
IDEAL MEETING DATE
October 23rd, motion passed unanimously.
Revisited ACC, member asked what variances have been approved to date. A member said that Longstreet indicated that there have been no approvals for metal fences, and some that encroach on sidewalks may be in violation of ordinances. Suggestion that documentation be required from Longstreet of what variances have been approved. A member proposed that any member should be able to document approvals received previously from Longstreet. Questions about enforcement surfaced, and discussion included the point that covenants specify the process available to the Board. Acknowledgement that there are some very strong opinions about materials and acceptability of variances. Discussion that there should be an immediate moratorium on variance consideration by Longstreet since we have an ACC now.
MOTION TO ADJOURN
Unanimous motion to adjourn at 8:47 p.m.
IMPROMPTU MEETING OF DIRECTORS
David identified the need to have a meeting especially related to the ACC (fences and submission review process), the landscaping, drafting bylaws, division of subdivision into blocks, and Pepperwood subdivision pros and cons. Saturday a.m., Monday evening meeting time/day best for Board meetings. Next meeting: Saturday at Mark Orndorff's house September 19th, 9:00 a.m., 12069 W. Silverking. We should each pay our dues so an account can be opened, two signature account, check on insurance. Find PO Box (treasurer will do). Identify "agent" and "business address". Electrical and maintenance of streetlights will become an association expense.
