Marymoor Trails
Annual Meeting of Homeowners
February 7, 2022

The Annual Meeting of Homeowners convened at 6:35PM on Monday, February 7, 2022, via Zoom. Due to pandemic precautions, we were unable to meet in person.  Attending on behalf of the Marymoor Trails Board of Directors were: Michael Niksa, President; Josh Gibson, Treasurer; Van Chesnutt, Landscape; Linda O’Hara, Secretary; and Tim Hollingshead of Morris Management.  Special guest Jehan Bharucha of Improcon was also present.

Roll Call and Determination of Quorum

The first order of business was a formal roll call and establishment of a legal quorum to do business. With 40.4% attending, we do not have a quorum – 51% is required. This 51% requirement is a vestige from so-called “Old Act” condos, the legal requirement in Washington state when Marymoor Trails was legally established in 1989.  Associations with newer construction now only require 25% for a legal quorum.

Without a quorum, we cannot take any legally binding actions at this meeting. However, we will go ahead and have the meeting, updating all present on a wide variety of items, in case someone challenges conducting normal business. Tim has spoken to the attorneys about this, and we are good to proceed.

Proof of Notice of Meeting

Tim showed the group the mailer that went out. In addition, mailbox signs were posted; an email was sent by Morris Management to all owners; and two Association emails were sent to all residents who have signed up to receive them.

Reading and Approval of Minutes from 2021 Annual Meeting

Before the meeting, Tim sent PDF attachments with meeting minutes from the 2021 Annual Meeting of Homeowners for everyone to read. Tim told the group that these are the Annual Meeting minutes from last year, and if we see anything that we object to, or wish to change, to please speak up. Otherwise this will be approved as written.

Brian Lausch (E-117) moved that we accept the minutes as written from last year, this motion was seconded by Mary Ann Anderson (I-134) and approved by unanimous consent.

Reports of Officers and Committee Reports

Secretary – Linda O’Hara  No remarks

Landscape – Van Chesnutt  Most of the landscape notes are in the monthly minutes. Van received a note from Bodine during the meeting stating that they will develop a schedule tomorrow and begin work very soon on the full scope of drainage work that has been discussed.

Treasurer’s Report – Josh Gibson

At the moment we are in good financial shape, but that could change with large items that are called out in the reserve study. January 2022 month-end balances: Operating Account (checking) is $34,731.72 and Reserve Account (savings) is $428,045.82.

President’s Report and Buildings Report – Michael Niksa

Buildings we did pretty much what we always do:  painting, repairs, tried to keep expenses down. We have some scary things coming with Bldg. B and roofing. We are trying to keep everyone appraised, and Jehan Bharucha, our Project Manager, is here to answer questions.  People can probably tell that Board members are a little fatigued with Covid, and we will be here to answer questions.

Unfinished Business

One item of unfinished business is Bldg. B – we have seen movement in Bldg. B. We have Jehan here for technical questions, as a resource and backup. Tim called for any questions. Brian Lausch, Unit E-117 asked: Is there something in the bylaws for submitting a request for review of improvements; he has a roof problem, but has been holding off. He has window issues as well. Brian also asked if he can take a look at the current status of conditions on groundwater issues? Tim unsure what Brian is referring to – is this footer drains? No, Brian is referring to drains around Bldg. B; he wants to become familiarized with what is going on in Bldg. B.

Michael reminded the group that we have hired Jehan as an expert. Any owner can request technical data, as it has been paid with association money. Brian is familiar with this technical data, and Michael says Tim can get this to him.  Brian has geotechnical background, and can understand the details.

David Webber, Unit B-108 said the Board has been great about keeping him informed. Has looked at the drawings, and he was the person who recommended the survey group that is doing the surveying. With respect to the design package that was put together for the stabilization, Dave had it reviewed by a structural expert who is a friend of his. This expert said it is solid work, beyond what would be considered best practices and everything has been done right so far.

Jehan discussed the permitting process with the City of Redmond. This is well known to be a time-consuming, detailed process. The City of Redmond is extremely exacting.

Michael’s wife put a free library outside their unit (E-120). People are free to take a book or leave a book. This is building community, let us get to know each other. We are hoping to have more community activities as the weather warms.

New Business

A motion was made for the election of officers. Homeowners present unanimously approved three people up for renewal this year – Josh Gibson for Treasurer, Michael Niksa for President, and Linda O’Hara for Secretary, each serving another two years to the end of 2024. Van Chesnutt, Landscaping, was approved for a new two-year term last year. The Board will finalize this at the March Board Meeting. 

Duane Nakano, Unit I-133, asked about the fire in Unit J-135; what the prognosis is for repairs and whether there were any insurance snafus? Tim reports the cause is not yet known. There have been a couple of fire investigators out, hired by a couple of insurance companies. 

A question was raised as to how our association insurance works. Does it have a hefty deductible? With the escalating cost of construction, how does that work? Tim believes Marymoor Trails has a $10,000 deductible – anything under $10,000 is covered by the homeowner’s insurance policy; anything over that is covered theoretically by our master policy. You can get riders for increasing construction costs.

Most claims like this are handled by a claims adjuster, who hires a field adjuster (a third party contractor) to go out and look and assess the damages. Tim has warned them “no surprises” at the end. Tim has been very clear with both parties, construction contractor and insurance adjuster. Tim believes the construction contractor and insurance adjuster have worked together before.

Andrew Flavell , Unit J-136, whose unit was adjacent to the fire said that the fire didn’t come through to his unit, but some smoke did.

Someone asked if, when construction is complete, is it followed by an inspection from City of Redmond? Tim says the insurance company field adjuster makes sure it is done correctly, because this is what they do all the time. Ryan, at Morris Management, will be in contact with City of Redmond. The field adjuster is very unclear about what to expect from City of Redmond. In the 30+ years since our units have been built, codes have changed. The big question is, do we now have to rebuild to current code? That can drive up costs substantially. We don’t know that until the field adjuster comes out.

Michael Niksa, Unit E-120, asks if there is any chance of City of Redmond asking us to install sprinklers? Tim says no discussion of that yet. Michael knows City of Redmond is very big on sprinklers. To retrofit sprinklers into a building like this would be a huge expense. We’ve been told by numerous contractors that City of Redmond is extremely strict and very difficult to work with.

Faisal Baqai, Unit F-121, asks what the long term impact is on insurance for the association? Tim says it is very difficult to know that. We don’t know the full cost; it could very well affect our premiums, or we could get dropped. Or the insurance company could say we’ll only insure you if you have a $25,000 or $50,000 deductible. That would mean everyone in the community would have to increase their own coverage up to that amount, which can raise their own costs.

We will keep everyone posted on developments.

Approval to Sign IRS Form 70-604

The last item needed at this meeting is approval of an IRS form that is used every year. This IRS form allows the Association to roll over unused money from 2021, not be taxed on it, and use the money for expenses in 2022. Tim reads the legal language association with the motion. Approved unanimously with all homeowners present voting in favor. Tim will keep this on file.

Adjournment

Van placed a motion to adjourn, seconded and unanimously approved.  Adjourned at 7:08PM. 

Next regular Board meeting — Monday March 21, 2022, at 6:00pm via Zoom. Tim will send out meeting link information to the Board and to any owners who request it.