Board of Directors Meeting
October 15, 2018
The meeting convened at 6:30PM at the residence of Van Chesnutt, Unit #M-147. Attending: Michael Niksa, President; Van Chesnutt, Landscape; Linda O’Hara, Secretary; and Tim Hollingshead, Morris Management. Not attending: Josh Gibson, Treasurer.
No homeowners brought any issues to the attention of the Board.
In Josh’s absence, we did not have a report for current cash balance. However, Tim reported that all bills are paid, accounts are stable. Tim will present a 2019 budget later in the meeting under new business.
Maintenance Report – Michael
Michael reviewed the list of projects completed this year. This included two elastomeric decks in L and H. When rotten boards or siding are found in the course of other repairs, these are being addressed on a one-off basis. Repairs will continue as weather allows.
Landscape Report – Van
- Drainage behind M, N, L and I Bldgs – Bodine has completed work on Bldgs M and N drainage. As of 10/19 the asphalt patching in front of building N is complete. The second major drainage component, behind Bldgs L and I, to be done next year.
- Sprinklers – Winterization of the sprinkler system is now complete.
- Moles – Despite aggressive trapping, we continue to experience mole problems, on the hill near the mailboxes as well as near buildings on the lower level. Van will continue to work with the pest control company.
- Tree Trimming – Davey Tree did an excellent job pruning and cleaning up many trees on property. Every issue was addressed including tree branches scraping on windows and removal of a dying tree behind Bldg M. Many dead branches in large pine trees in entry planter and between Bldgs C and I were extensively trimmed.
- Lights out on upper level – Lights reported out on upper level. On inspection over several subsequent days, no board members have seen either the entrance signage lights out, or upper parking lot lights out. No idea what caused this.
Management Report – Tim
- Bldg G Alarm – Work is complete, new panel installed, signed off by City of Redmond. Tyco has not yet sent us a bill for the work. Tim is following up.
- B-108 Cracking – Polyfoam was injected into the floor underneath downstairs slab and in the garage, filling in gaps and supporting the slab. In addition, medallions have been installed for precise foundation monitoring. Engineers will look at it in 6 months to see where movement is taking place and to what extent. Improcon, our engineering consultant, anticipates there will still be stabilization work required.
- 2019 Budget — Tim developed three different budgets for review by the Board, with identical assumptions on spending and expenses.
- Option A – 0.8% increase. Set to recommended funding levels from Reserve Study but does not account for 2018 spending on unplanned projects. No board members voted for this option.
- Option B – 4.2% increase. Option A + one unplanned elastomeric deck.
- Option C – 7.6% increase. Option A + both unplanned elastomeric decks.
- Note that the Building B project hasn’t been covered yet and is currently borrowing from future repairs on other property items.
- The board debated thoroughly between Options B and C. At previous meetings, we have confronted the need to put more into reserves to make up for unplanned expenditures. We want to take good care of our property, but minimize dues increases.
- Our focus on increasing the granularity and accuracy of our new reserve study this year was to make it a useful tool for setting our budget. It recommends a specific savings rate + 3% increases per year.
- After careful consideration, the Board unanimously passed an option between B and C, or a 5.5% increase for 2019, an average monthly dues increase of ~$30 per unit. It matches the Reserve Study’s savings funding rate and replaces some of the 2018 reserve gap with income while filling the rest with 2019 spending cuts. We are below the 2019 reserve entry target, but we are set to enter 2020 with appropriate savings levels from the study.
- Due to new Washington State regulations, this approved budget must be offered at a public meeting of Marymoor Trails homeowners. If more than 51% of owners show up and vote “NO”, the budget is overruled and must be revised. Otherwise, it will be ratified. You will receive a copy of the budget in advance and the public review will be scheduled prior to the next month’s board meeting.
- Borrowing Amendment – Looking ahead to the possibility of an expensive Bldg B repair, we will present a Borrowing Amendment to our Declaration at the 2019 Annual Meeting. This would allow MMT to borrow funds if needed in the future. Full details will be sent in the mail prior to the annual meeting. If we don’t have borrowing authority and an expensive repair is needed, the only other option is a large lump-sum special assessment that would be due in full. A borrowing amendment requires 60% approval of homeowners, or it is not passed. There is no payment plan we can offer if we don’t have borrowing authority.
Next meeting: Monday November 19, 2018 at Morris Management
- 6:30PM – Homeowner Ratification of 2019 Budget – requires 51% to overrule
- 6:45PM – Homeowners Forum and Board Meeting