THE BUTTES CONDOMINIUM ASSOCIATION
ANNUAL OWNERS MEETING MINUTES
July 22, 2016
9:00 AM
Owners Present: Jim & Edith McGill
Michael Poley
Don & Judy Garrett
Paul Pierson
John Seybold
Sandra Barker
Fred Funke
Jeff Campbell
Caleb Sevian
Owners Present by Telephone: Tom Raschella
Karen Wallace
Management Company Reed Meredith, Evergreen Management Inc.
Present:
Member Represented Unit
Jim McGill 501
John & Mary Seybold 504
Maja Ivanetic ( by proxy Board) 505
Fred Funke 506
Don & Judy Garrett 511
Jennifer & Paul Pierson 512
Campbell 514
Gene Sherman ( by proxy McGill) 515
Caleb Sevian 516
Tom & Sue Raschella (by proxy McGill) 517
Rafe Gibson ( by proxy Board) 518
Matt & Sandra Barker 519
Peter & Chris Andrews (by proxy board) 520
Michael & Stephanie Poley 521
TOTAL REPRESENTATION 14
A quorum was established with 14 out of 21 members present, and 64.60% of ownership represented in person or by proxy. The meeting was called to order by association president Jim McGill at 9:03am.
The following motion was made and seconded:
MOTION: To approve the previous minutes from the July 25, 2015 homeowners meeting as written.
Vote: Unanimous Approval.
Jim McGill presented a brief presidents report at this time. McGill noted the new “code of Ethics” for the Buttes board of directors. This is a new requirement by the state of Colorado, that all associations have a written and adopted code of ethics. McGill also informed the group that he met this week with the association presidents of Crested Mountain, Crested Mountain Village, and the contractor for Crested Mountain North Crocket Farnell, concerning the paving of the entry road, Crested Mtn Lane. The contractor who is re-building the Crested Mountain North building that was damaged in a fire in 2015, Black Dragon Development, presented a plan to hire an engineer to look at and engineer the entry roadway at an additional cost of $13,800. Reed Meredith of Evergreen Management obtained a bid from King of The Mountain Dirtworks to install a concrete valley pan along the hillside of easement A, to catch and re-direct water, at a cost of $6,100. The entry to be paved is a 20’ wide easement that is shared by all 4 associations. The original paving went in around the time of the condos building in the 1980’s, and has lasted nearly 30 years without engineering. After the meeting it was determined that Black Dragon Development will head up the paving project. This is due in large part to the fact that they are re-paving the Crested Mountain North parking lot and have construction experience. They indicated that they would re-approach the engineering company for a scaled down estimate for reduced engineering and report back to the associations. They will also try to obtain alternate paving bids from companies outside of Gunnison County. It is anticipated that the Butte parking lot will be paved at the same time, hopefully this fall. It was also noted that the area adjacent to the Crested Mountain Garage structure would have to be re-filled and compacted with road base to bring it back up to grade. Crested Mountain condos bears the cost responsibility for this area that they disturbed when they installed new drainage for their parking garage.
Jim McGill began a discussion of the replacement of the flat membrane roofs. There are 10 roofs that date back to the mid 1990’s. Evergreen Management has had all of the roofs inspected and the contractor has noted that all 10 are at or near their life expectancy and need to be replaced. The board plans to begin a replacement program this year, and plans to have all flat roofs replaced in the next 3 years. At least two will be done this fall.
Paul Pierson joined the meeting at this time. 9:15
Reed Meredith of Evergreen Management Inc. presented the Manager’s Report at this time as follows:
Maintenance:
Evergreen Properties works continually to address the maintenance and landscaping needs of the Buttes Association exterior. Among the many services that we provide are the Daily, Weekly, and Monthly projects that follow:
Daily: Daily walk of the property
Vacant unit inspections during freeze threats
Lighting and security inspections
Maintenance and Daily Security of the Hot Tub and Deck area
Hot Tub Water Testing and Chemical Balance
Exterior property inspection and trash pick-up
Parking lot patrol and enforcement
Watering of lawn area, flower baskets, and garden areas
Snow Removal - stairway, walkway, and parking clearing
On site- 24hour response to late night emergency maintenance calls
Weekly: Exterior lighting replacement
Landscaping and Lawn maintenance
Flower, Tree, and Shrub maintenance
Dumpster and Trash pick-up coordination
Meetings with various contractors working on Buttes Units
In addition to the routine maintenance noted above we have completed the following projects:
v Garden & Lawn Clean Up and Maintenance: After 8 months of construction from April – November last year, we have some work to do to restore the Buttes landscaping. While we are almost back to the pre-construction state, there remains work to be done to improve the condition of the landscaping.
v Deep Cleaning of Hot Tub / New Circulation Pump Installed: Several times during the year the Buttes hot tub is completely drained for a deep cleaning and sanitizing. In addition, we apply two coats of hot tub wax to the outer shell to help preserve it from dirt and UV deterioration. New filters and a new thermal surface blanket were also installed. In addition, the circulation pump stopped working this spring and necessitated replacement.
v Re-Staining of Hot Tub Deck Posts and Skirting: Evergreen Properties is in the process of re-staining the natural wood deck support posts and skirting with semi transparent oil stain.
Completed / In Progress Projects:
v Buttes Re-Siding Project Work: Evergreen Management is happy to report that the re-siding project was completed last November, and that the majority of our spring “punch list” has now been completed by Gross Construction. There are a few small items yet to be finished, and we expect that new issues will arise as we observe how the weather affects the new siding. We have received many compliments from owners, guests, and the real estate community on the new look. In addition, we are happy to report that the project was finished on time and under budget! We were on site and met with the project foreman on a daily basis throughout the project to answer questions and give direction. After many years of planning, endless discussion, and many hours of work, it is a pleasure to see the project completed.
v Re-Paving of Entry Driveway and Buttes Parking Lot: Evergreen Management has secured yet another bid from United Paving to repave the entry road/driveway known as Crested Mtn Lane. Unfortunately, the Crested Mtn North Association precluded re-paving this entry in the spring due to their re-construction work on the building which was fire damaged in April of 2015. They are currently installing utility lines across the current road and it was not prudent to re-pave prior to this road cut. In addition, Crested Mtn North has now informed us that they wish to hire a consultant to engineer the entry road at a cost of $14,000. As the maintenance expense of this road is shared by 4 condo associations ( Buttes, Crested Mountain, Crested Mtn Village, Crested Mountain North) all 4 association must vote on whether they agree that this added cost (Engineering) is necessary. We have noted that there is water drainage, which runs across the road in the spring, which damages the asphalt. Therefore, we obtained a contractor bid from King of The Mountain Dirtworks to install a concrete valley pan to channel the water away from the road. This cost is estimated at $7,600, and it is anticipated that this is the type of remediation that an engineer would ultimately suggest. It is hoped that the 4 associations involved can come to some agreement on a plan of action so that paving could potentially take place after Labor Day this year. We have also obtained a new bid to install a drain pan along the lower retaining wall and re-pave the Buttes parking lot. It is hoped that this project can take place in conjunction with the entry road project.
v Installation / Repair of French Drain: Earlier this spring we noted that the French drain installed last Fall was not directing water into the storm rain as intended. We contacted the contractor and facilitated digging a new section of the drain to re-direct the spring run-off.
v Annual Flower Arrangements: Eight colorful hanging flower basket arrangements have been placed around the Buttes complex walkways and are maintained on a daily basis.
v Re-Painting of Exterior Stairway Handrails: The wooden exterior stairway handrails are in the process of being sanded, primed, and re-painted.
v Attainment of Multiple Bids & Estimates For Possible Future Projects: Evergreen Management has worked this spring to attain multiple bids for possible future projects including: concrete sidewalks, concrete retaining walls, asphalt paving, exterior metal handrails, roof drip edge, and irrigation system. We met with multiple contractors and dedicated significant hours to obtain information for use in the Buttes long term planning.
Financial Report:
The June 30th Balance Sheet shows total Assets of $115,100.49, and total Liabilities of $36,623.82. Accounts Receivable shows that all owners are current in their payment of regular dues at 6/30/16. The Total Fund Balance at 6/30/16 was $76,476.67.
The June 30, 2016 Income Statement Compared to Budget shows that the total Expenses of the association for the first 7 months of the fiscal year were favorable to budget by $7,378.05. All operating budget line items were either very close to, or below the budget figures. The largest areas of significant savings came in the areas of Electric ($807.48), Trash Removal ($762.55), and Snow Shoveling ( $3,414.87).
Considering the significant expenditures of the re-siding project in the past year, the Buttes Association is in good financial condition. The Association was able to complete the major exterior renovation within the budgeted costs and additional special assessment of the membership was not required. While there are many additional projects that may be considered for future completion by passage of special assessments, the current dues assessments appear to be sufficient to meet the regular operating costs of the association and provide for the planned capital improvement costs.
New Business:
Jim McGill reported that the board had polled the owners earlier this year concerning their desire to complete the renovation project . 62% of the ownership responded favorably that the board should tie down costs for the projects and report back at this meeting.
Lengthy discussion ensued regarding the specifics of the completion and the financial schedule.
Discussion ensued regarding the idea of adding a bike rack and perhaps a wash station to the plan, the idea of trying to do more in year one versus delaying, and painting the porch floors on the upper backside units.
Jim McGill explained that if the Buttes owners would like to complete the remaining renovation items in the next few years that a special assessment of $125,000 would be required to fund the projects. He suggested that the association pass the first $75,000 of this total and then come back to the owners next year with a more exact final amount.
After discussion, the following motion was made and seconded:
MOTION: To complete the projects as presented in spreadsheet, and approve a special assessment of the owners totaling $125,000, billed in 2 years as $75,000 in the 4th quarter of 2016 and the 1st and 2nd quarters of 2017. The remaining $50,000 special assessment will be invoiced after the second quarter of 2017.
Vote: Unanimous Approval.
The assessment breakdown is as follows:
2017 ASSESSMENT$75,000
Square / Percent
Owner & Unit Number / Feet / of Total / Assessment
------/ ------
BU501 McGill / 1,682 / 7.18 / $5,385.00
BU502 Hartson-McFarland LLC / 1,664 / 7.11 / $5,332.50
BU503 Goldberg/Markoozy / 1,459 / 6.24 / $4,680.00
BU504 Seybold / 457 / 1.95 / $1,462.50
BU505 Ivanetic / 710 / 3.03 / $2,272.50
BU506 Funke / 919 / 3.93 / $2,947.50
BU507 Jerome / 919 / 3.93 / $2,947.50
BU508 Wallace / 919 / 3.93 / $2,947.50
BU509 Snoddy / 919 / 3.93 / $2,947.50
BU510 Kuenzlen / 919 / 3.93 / $2,947.50
BU511 Garrett / 1,185 / 5.06 / $3,795.00
BU512 Pierson / 1,682 / 7.18 / $5,385.00
BU513 Ewart / 1,481 / 6.33 / $4,747.50
BU514 Campbell / 1,459 / 6.24 / $4,680.00
BU515 Sherman / 1,246 / 5.32 / $3,990.00
BU516 Sevian / 919 / 3.93 / $2,947.50
BU517 Raschella / 919 / 3.93 / $2,947.50
BU518 Gibson / 919 / 3.93 / $2,947.50
BU519 Barker / 919 / 3.93 / $2,947.50
BU520 Andrews / 919 / 3.93 / $2,947.50
BU521 Poley / 1,185 / 5.06 / $3,795.00
23,400 / 100.00 / $75,000.00
2018 ASSESSMENT
$50,000
Square / Percent
Owner & Unit Number / Feet / of Total / Assessment
------/ ------
BU501 McGill / 1,682 / 7.18 / $3,590.00
BU502 Hartson-McFarland LLC / 1,664 / 7.11 / $3,555.00
BU503 Goldberg/Markoozy / 1,459 / 6.24 / $3,120.00
BU504 Seybold / 457 / 1.95 / $975.00
BU505 Ivanetic / 710 / 3.03 / $1,515.00
BU506 Funke / 919 / 3.93 / $1,965.00
BU507 Jerome / 919 / 3.93 / $1,965.00
BU508 Wallace / 919 / 3.93 / $1,965.00
BU509 Snoddy / 919 / 3.93 / $1,965.00
BU510 Kuenzlen / 919 / 3.93 / $1,965.00
BU511 Garrett / 1,185 / 5.06 / $2,530.00
BU512 Pierson / 1,682 / 7.18 / $3,590.00
BU513 Ewart / 1,481 / 6.33 / $3,165.00
BU514 Campbell / 1,459 / 6.24 / $3,120.00
BU515 Sherman / 1,246 / 5.32 / $2,660.00
BU516 Sevian / 919 / 3.93 / $1,965.00
BU517 Raschella / 919 / 3.93 / $1,965.00
BU518 Gibson / 919 / 3.93 / $1,965.00
BU519 Barker / 919 / 3.93 / $1,965.00
BU520 Andrews / 919 / 3.93 / $1,965.00
BU521 Poley / 1,185 / 5.06 / $2,530.00
23,400 / 100.00 / $50,000.00
The following motion was made and seconded: