Events

Board of Directors Meeting

Date
Saturday, November 19, 2022
Time
1:00pm- 2:45pm
Location
Gig Harbor Library, 4424 Point Fosdick Drive NW, Gig Harbor, WA 98335

Agenda

A review of the HOA finances shows that the current annual due amount has not kept pace with inflation over the years. At the meeting, a Treasurer’s report will highlight financial projections and the board will review options for how to proceed. This could include voting on an increase to our annual HOA dues. Under the HOA bylaws the board can implement a 5% increase without a vote of the membership. Anything above 5% must gain approval from the total membership.

The board encourages members to attend to hear this discussion and participate in the conversation.

Additional items to be reviewed at the meeting include:

We hope you will join us in person, Saturday, Nov. 19 at 1 p.m. at the Gig Harbor Library, 4424 Point Fosdick Drive NW.

Minutes

Board members present: Jordan Moore, President, Susan & Joel Mott, co-Treasurers and Brynn Graham, Secretary.

Seven homeowners were in attendance.

The meeting was called to order at 1:04 p.m.

The meeting began with introductions of the board and then members in the audience.

OLD BUSINESS

Susan updated about the removal of a street light at Briarwood Lane & 38th Street. Earlier this year the board sent a request to Thurston PUD to remove the light. The light is redundant now that the city of Gig Harbor installed new street lights as part of its sidewalk project. The board is waiting to hear back from Thurston PUD on when removal will occur.

NEW BUSINESS

1. Landscape Committee Report

Susan reported the work of the Landscape Committee, which is made up of four people: Susan and Joel Mott, Cecilia Blomberg and Howard Cushner.

The committee met a few times since the 2022 annual board meeting to discuss how to best maintain the HOA common areas.

Purchase of flower bulbs: The committee requested $110 from the board for the purchase of 200 flower bulbs to be planted in front of both Heronwood brick signs. The bulbs are drought and deer resistant and offer four different flower varieties. They bloom in the spring and summer and require minimal maintenance.

Susan made a motion to approve the request. Jordan seconded the motion. The motion to give the committee $110 to purchase the bulbs was approved 3-0.

Maintenance of areas: Susan reported that after 15 years HOA member Greg Wolfe announced he will “retire” from his current role of maintaining the HOA common areas. That includes mowing the grass at the open space by the pond, along Briarwood Lane and blowing/clearing the sidewalks on Briarwood Lane. The board budgets $1,200 a year for this work. He also stores the HOA-owned riding lawn mower.

In light of Greg’s retirement, the Landscape Committee proposed getting three quotes from landscape companies to see what it would cost to cover the work Greg did, as well as help with the ongoing maintenance of the sidewalk strips on Briarwood Lane and two sign locations. Susan noted the committee believes relying on HOA volunteers to do this work is not sustainable, consistent or equitable.

The Landscape Committee will come back to the board with the cost estimates. Brynn requested the bids be presented at a future board meeting so members can be in attendance and part of the discussion on how to proceed as there is a chance annual dues would need to increase to cover this cost.

Susan & Joel noted that after speaking with other HOAs in the area, relying on a homeowner to do this type of work is not their preference. A short discussion ensued.

How to maintain the sign areas: The Landscaping Committee is recommending improving the sign areas with hardscape (i.e. rocks, downed trees, not living plants) due to the fact that there is no water available to water the signs. Installation of a spigot at each sign location would cost between $5,000 and $6,000. This does not cover the annual cost of water usage. A question was raised about who would pay for this. It was noted this would need to be covered by the HOA dues/budget.

Formation of the Landscape Committee: A question was asked by a homeowner about how often the landscape committee meets and who comprises it. Discussion ensued. Joel made a motion to formally recognize the Landscape Committee as a committee of board. Jordan seconded the motion. The motion was approved 3-0. With its official formation, it was agreed improved communication will be sent to advertise when the committee will meet and minutes from those meetings will be posted to the website. If people want to join the committee they should email the board: board@heronwood.org.

A resident asked a question about who is responsible for maintaining the grass and space bordering Briarwood Lane. He said the HOA governing documents state owners whose property abuts Briarwood Lane are responsible for maintenance. A short discussion ensued. It was noted that the board should send out communication so people know their responsibility. (NOTE: Further review of the HOA governing documents following the meeting determined there is no language in the documents stating homeowners on Briarwood Lane are responsible for maintaining the public rights of way. The board will look into this further to see what city code says about sidewalk maintenance and grass maintenance.)

2. Quarterly Board Meetings

Joel proposed the board hold more frequent meetings to increase neighborhood involvement, raise awareness about matters important to the HOA and to allow the board to meet more frequently to be able to make decisions vs. once a year at the annual meeting.

It was proposed the board meet on the following schedule:

Susan made a motion to set this meeting schedule for 2023. Brynn seconded the motion. It was approved 3-0.

A resident asked how often the landscaping committee meets. Susan noted so far the meetings were ad hoc and less formal. It was agreed they should remain less formal, but communication can be improved to make owners aware of when meetings are held and what was discussed by posting minutes to the website.

3. Treasurer’s Report

Susan updated on the current budget:

Susan noted there may be some confusion among owners who are required to get an annual backflow test. The backflow cost is not part of the HOA dues. But the HOA coordinated a service discount through the vendor. The HOA collects the cost as a courtesy and then passes it through to the “BAT” lady.

It was suggested to add a section to the website that explains this process and how the money does not go into the HOA annual budget.

Susan proposed the board become more formal with its budgeting and ongoing fiscal planning, as well as formalize the ongoing maintenance of open spaces like adding gravel to the path at the pond, sidewalk strip maintenance and sign upkeep.

In her report Susan noted they reviewed the last 11 years of the HOA budget to create a foundation for understanding recurring costs and help plan for the future. That review showed year end balances ranged from $5,000 to $15,000.

The current rate of $120/year in dues brings in $6,800. The HOA currently has $3,300 in recurring expenses. That leaves roughly $3,500 available for unexpected expenses.

Under the HOA governing documents, the board is responsible for the maintenance of the HOA’s estimated 13 acres of open space. A question was raised as to whether that obligation is being met. It was noted that the forested areas are not maintained and the cost to remove trees can range from $900 to $4,100, based on costs the HOA incurred from 2018-2022 when trees needed to be removed for safety reasons.

At that rate, the current budget does not have enough money available to cover the cost to remove multiple trees should they fall or pose a public safety hazard.

In light of this, the Treasurers recommended keeping 1-year of operating expenses in reserve.

The Treasurers also recommended conducting a reserve study to determine how much should be kept in reserve to cover ongoing maintenance and future, larger expenses. It is preferred that a group of neighbors with financial expertise conduct the study, but if no one is available, the board could hire someone to do it.

Discussion was had about raising annual dues by 5%, or $6, in 2023. As part of the discussion it was noted the HOA has only raised dues once before, going from $90/year to $120/year which required a majority vote of the membership. Under the HOA bylaws, the board can increase dues up to 5% without a vote of the membership.

Even with the additional 5% increase, the Heronwood HOA dues are significantly below other HOAs in the area. We have a higher percentage of common area to manage than other HOAs.

Susan made a motion to increase dues by 5% ($6) in 2023. Brynn seconded the motion. It was approved 3-0. Dues for 2023 will be $126/year.

Susan and Joel will continue to research the cost associated with landscaping/maintaining the common areas. There is a likelihood this added cost could result in the need for additional rate increases. If dues need to go up more than 5% the board will come back to the membership for discussion and a vote.

4. Work Party Schedule

The board discussed establishing a more frequent schedule for future landscaping work party opportunities. It was agreed quarterly community work parties would help with open space maintenance. Dates will be set in the future and communicated to owners through email and the website.

5. Discussion

A resident suggested making sure the board shares with all members the need to increase the HOA annual budget. The hope is that with this known more people will attend meetings and get involved so more voices are heard.

It was also suggested to give people the option to step up and volunteer to help with maintenance of open spaces before implementing an increase. Maybe more people will volunteer if it means their annual dues won’t go up as much.

It was proposed to post signs along the HOA property lines in the open spaces to make it clear it is private property. The board agreed this was a good idea.

The meeting adjourned at 2:47 p.m.