PINE TERRACE HOMEOWNERS’ ASSOCIATION

ANNUAL MEETING OF HOMEOWNERS

BROADMOOR HOTEL, MAIN BALLROOM

Tuesday, August 18^th, 2009

CALL TO ORDER AND CERTIFYING OF PROXIES:

The HOA President, Ed Osborne , called the meeting to order at 4:15 p.m. Based on the homeowners who were present, the proxies received and according to the HOA Declarations, a quorum was present and the meeting could take place.

 PRESENT:

Ed Osborne, President, Frank Dowis, Vice President, Lyndy Holzwarth, Corporate Secretary, Mary Osborne, Treasurer, Glenene Harris, Barbara Smith, Directors At Large, and outgoing Director At Large, Tom Berg.

 INVITED GUESTS:

Dan Rees, Property Manager, Stephanie Blair, Recording Secretary and Bookkeeper, and the attorney for the HOA, Steve Lebel, and Linda Engle, Account Executive from CB Insurance, the HOA insurance agents, who joined the meeting at 4:45 p.m.

 PROOF OF NOTICE OF MEETING:

Proof of Notice of the Meeting was mailed to all homeowners on July 15^th, 2009, 33 days prior to the meeting.

 APPROVAL OF MINUTES:

Copies of the August 19^th, 2008 Annual Meeting Minutes were given to each homeowner attending, and were approved as written. Additional hard copies of minutes are available to any homeowner if requested. The motion to approve the minutes was made by Kathleen Hayes , seconded, and approved unanimously.  

NOMINATION AND ELECTIONS OF OFFICERS:

Homeowners previously agreeing to stand for election to the Board were:  Frank Dowis, running for a second term; and Mike Cason, running for Director At Large, due to the expiration of Tom Berg’s term. President Osborne introduced the Board and Mr. Cason to the homeowners present. As there were no additional candidates nominated from the floor, Ed Osborne moved that a vote by a show of hands be taken for the 2 nominees.  This was seconded by Ed Veranth , and the candidates were approved by acclamation. Ed expressed his thanks on behalf of the association to Tom Berg for his service to the HOA.

 TREASURER’S REPORT:

Mary Osborne reported to the homeowners that the review of the HOA’s books had been completed by the accountants. A review is more cost effective for the Association and a full audit is not required each year by the State of Colorado . The review done by Waugh & Goodwin, LLP, showed that no abnormalities appeared in the books, no modification was needed and the HOA was given a clean opinion.

  Mary reviewed with the homeowners the information on the Balance Sheet of the Accountants’ Review Report (as of December 31, 2008):

           Current Assets:      Operating Fund               $   25,133

                                      Replacement/Reserve      $ 221,642

          Total Liabilities:                                            $   19,208

          Fund Balances:                                            $     5,925

 The HOA is currently holding a $7,500 security deposit from the Afemans in case of construction damage done to the HOA property during the building on their lot.

 There was nothing unusual in the expenses although some items did run over amount budgeted. However these are items that vary each year and the estimations are hard to judge.

  Mary reported to the HOA that at this point, the reserve allocation appears good. However this is based on a Reserve Study done in 1998, which is no longer accurate as it includes items no longer covered by the HOA, i.e., roofs (other than tile replacement), garage doors and windows. Therefore the accountants have requested a new Reserve Study to be done. At the meeting preceding the annual meeting, the Board approved a new firm, Association Reserves Colorado, LLC, to complete a new study. This will be ordered as soon as possible so that it will be available to guide the Finance Committee in doing 2010’s budget and future planning.

  Ed Osborne remarked that this study is a necessary tool in order for the HOA to know if monthly dues are enough to meet current and future maintenance needs. There has been no dues increase in several years and the community is aging; some of the buildings are now 25 years old, and even with changes in what the HOA is responsible for, costs of repair and maintenance continue to increase.

 PROPERTY MANAGER’S REPORT:

Dan Rees reported that he is working to get the mailboxes all repaired. He has replaced many of the address numbers, but there is still stucco to be repaired and painting done, and new caps on posts.

  Dan expressed his thanks to the Landscape Committee and Mike with LandTech for all the work they do in keeping Pine Terrace looking its best.

The new painter is currently out of town on a family emergency, but is to be back at work next week on the stucco and painting waiting to be done. Dan reminded the homeowners that they should let him know if they have something needing to be done.

 The water and sprinkler costs are down considerably this year, thanks to Mother Nature.

However, a big item that Dan and the HOA will be dealing with in the coming months is the costly item of maintaining and/or replacing the current gate system.  Dan is aware of the numerous problems with the gates, and has Smart Gate Systems working on them, to resolve as many of the problems as they can. It may be necessary for the HOA to replace the system early next year. If this is done Dan will work with Smart Gates so that the inconvenience to residents will be of a short duration. A new system will use current codes and hopefully installed within a day’s period.

 COMMITTEE REPORTS:

          Maintenance Committee:  Frank Dowis reported that the HOA has been able to continue a good program of maintenance working closely with Dan Rees and Mike at LandTech. They will continue the process of getting several bids for each project and reviewing costs carefully for best product and service.

          Landscape Committee:  Cathy Berg reported for the committee. They are going through the area with repairs, replacement of plants, and clean up. The work on the areas around the front and back gate is mostly done. The committee appreciates any suggestions the homeowners might have, so please let them know. Also, the committee thanks the many homeowners that maintain the areas close to their homes.

          Block Party Picnic:  Charlie Cochran reported that all reports were positive about the “annual do”! She thanked everyone for their contributions and help, and is particularly happy that Judith Wray has agreed to co-chair. She hopes everyone is looking forward to next year!

  Ed Osborne thanked all the members of all the committees for their help and support throughout the year, saying that, “what makes Pine Terrace a great place to live is in part due to the work done by these people”.

 Thanks was also given to Ed Veranth for his help with the ponds and waterfall, and the Pine Terrace web site.

 REMEMBRANCE:

Judith Wray took a few minutes to remember former resident Robert ( Bob ) Kieschnick, who passed away in Dallas on July 12^th. Bob and his wife Ann were residents of Pine Terrace for 12 years, residing at 3730 Chataway Court . Bob will be remembered for all the favors he did, the great parties, and his interest in Pine Terrace. His legacy will always be the preservation of the “39 Pines” area which he saved from becoming more townhouse complexes by raising $60,000 from residents in order to preserve the area as common property.

 HOMEOWNER’S FORUM:

Tully Weiss, 3970 Hermitage Drive was congratulated on his birthday.

  Ed Osborne then introduced Steve Lebel , Attorney for the HOA, and Linda Engle with CB Insurance. He asked the members to now address any legal or insurance questions they may have to either Mr. Lebel or Ms. Engle . Ed reminded the members that much of the information they might need, such as insurance coverage, financial information, and rules and procedures is available on the web site and may be copied off in Word.  

Of major concern was the lightening strike thought to be responsible for the fire at Barbara Sparks home at 1425 W. Cheyenne Mountain Blvd.

 Q: Is there anything to help prevent another such fire within the community?

 A: Ed Veranth and Dan Rees have been investigating information and use of lightening
     rods. Mr. Lightening here in town has been contacted, and they came out and walked
     the area with Dan and have provided quotes for the homes within the community.
     These quotes are available from Dan after the meeting. The estimates average $3,900
     for individual residences. In residences sharing a common wall, each residence must
     get the protection in order for it to be effective for the whole building.

 Q: How effective are the lightening rods:

 A: Ed Veranth said he had talked with at least seven different people and had received
     seven different opinions on this. He spoke with the fire chief, an electrical
     contractor, and a man at the Regional Building Office. What is known is that 
     lightening will strike where it will! It is suggested that protection for the electrical
     box can work, and that can be done for about $150 - $250. Grounding will reduce
     lightening’s effect. Surge suppressors on electronics throughout the house are known
     to protect TV’s and computer equipment. The lightening rod concept is that the
     charge from a lightening strike is directed into the ground and puts you on a level
     field. Aside from this, there is not much else you can do. Mr. Lightening or an electrical
     contractor could give you a cost analysis and see what you could do.

 Q: What is covered under the HOA insurance when something like a fire from a
     lightening strike occurs?

 A: Linda Engle with CB Insurance - The dwelling and anything permanently attached to
    the walls, floor or roof are covered under the HOA Master Insurance. All personal
    belongings are covered through the homeowner’s private insurance. The policy does
    not cover things like earthquake, flood, run off, mud slides or faulty construction.
    Linda also passed out information regarding Travelers Insurance.

 Q: How long will it take to get the Spark’s property rebuilt?

 A: Linda Engle with CB Insurance – Travelers is still getting bids, but the Travelers
     policy is a “Cadillac” of a policy and Mrs. Spark’s home will be rebuilt as good as 
    new. Unfortunately some of her personal property cannot be replaced.

  Ed Osborne added that CB Insurance has been a great help with Travelers, and that Mrs. Sparks has had great support by her children.  

Q: How will this claim affect the policy premium?

 A: Linda Engle with CB Insurance – Pine Terrace has an excellent claim history. Last
     claim was several years ago regarding some water damage. A lightening strike falls
     under “catastrophic” happening and will not affect the premium.

 Q: How much is the deductible and who pays it?

 A: Linda Engle with CB Insurance – The $5,000 deductible is usually absorbed by the
     HOA, unless the resident is personally responsible. If the resident must pay, it may
     be covered through the personal insurance, less the deductible on that policy. The
     HOA board may decide on who pays the deductible.  

Steve Lebel reported to the homeowners that the new Colorado statute SB100 adopted by the legislature required all the HOA rules reviewed and that HOA is required to answer and educate all the homeowners in the association on any changes made. These must be made easily available to the homeowners. The Pine Terrace Board did a lot of work reviewing the HOA rules and procedures and worked with him on all necessary changes.

  Ed Osborne told the homeowners that all required information is posted on the website.

  Steve Lebel replied that Pine Terrace’s website is one of the best.

 ADJOURNMENT:

All business having been completed, Ed Osborne adjourned the meeting at 5:10 p.m.

                   Respectfully Submitted /s/ Stephanie Blair , Recording Secretary