Taft Canyon Neighborhood

2004 ANNUAL MEETING MINUTES

TAFT CANYON HOMEOWNERS ASSOCIATION

November 9, 2004

President Julie Ramirez called the meeting to order at 7:05 P.M.

Those in attendance from the Board were: Julie Ramirez, President; John Schneider, Treasurer; Cathy Sorensen, Secretary; Mark Hynes, Director; and Jim Lofink, Director. Also present were Kathy Louderback, President Touchstone Property Management; and Jackie Williams, Community Association Manager for Touchstone.

A PowerPoint slide presentation was used during the meeting. President Ramirez asked the members observe Robert’s Rules of Order during the meeting, and introduce themselves to the group when speaking.

A quorum was declared with 67 members or proxies present. 57 are needed for a quorum.

The meeting agenda was displayed, discussed and adopted.

First order of business was approval of the minutes from the November 2003 Annual Meeting. President Ramirez asked if there was a motion to approve the minutes, motion was made and seconded, and by voice vote passed. There were no dissenting votes.

President Ramirez reported on the highlights of 2004. They included:
• Resurfacing of 900 feet of Wellington Drive with 2-8” of asphalt.
• Consolidation of landscaping services into one contract, net savings of $1500.
• Taking action regarding mountain lion in neighborhood, including coordination with other nearby neighborhood groups, DOW, Coloradoan, and Neighborhood Watch.
• Social activities including Spring and Fall cleanup, Garage Sale, 4th of July parade, Annual Picnic, and various smaller interest groups.
• Adopting a Project Management Process to facilitate input from the members, prioritize projects fiscally, and enable members to take action to make their ideas happen.
• Revamping Neighborhood Watch and reissuing of the Directory.

Questions were asked about when to expect the directory. Cathy Sorensen stated that she had a question for the group regarding allowing members to have business cards for services that may benefit the group copied into the Directory. The group asked who was paying to publish the directory. The response is the HOA is funding the $350-400 cost of publishing. Have those persons, whose cards will be printed, contributed to the cost? Not at this time, it was a courtesy to the members because the services were for eldercare, childcare, and massage. Are we going to solicit for members to pay some part and cover the cost? At this time, that would delay publishing.

President Ramirez asked the issue be addressed during the Secretary’s report and the floor was given to John Schneider, Treasurer.

Treasurer Schneider presented the following information from the 2004 Budget
(figures from 8/31/04)
...........................2004 Budget.....2004 Est.
Income:
Dues & Fees.............$71,550.......$71,000

Expenses:
Admin.......................$20,797.......$18,619
Repair & Maint.............1,400...........1,400
Landscaping................17,282.........15,982
Utilities..........................9,736............9,413
Capital Projects...........20,000.........26,500

Total Expenses..........$69,215.......$71,914

Net Income...................2,335.............(914)

This information was also displayed as a pie chart, showing the relative amounts each expense bore to the whole. (Unable to reproduce here)

The membership was concerned that there was a negative balance at the end of the year, was this an actual account balance? In effect, no. This represents the amount we are over budget this year.

These figures were also presented to the members:

2004 Est. Cash & Reserves
Checking....................$10,360
Reserves......................60,791
Total (8/31/04).............71,151
Net Income (Sept-Dec)....(619)
Year End Est..............$70,532

Treasurer Schneider stated we would end the year with approximately $70,500.

Question was asked regarding why the statements given by Touchstone were not in regular accounting styles. Treasurer Schneider responded by stating the Board is currently looking into changing this with Touchstone. The Association has four accounts and all the amounts for those 4 accounts are shown in the financials. (The Association has 3 savings accounts and one checking.) We maintain at least $50,000 in reserves for emergencies, and approximately $10,000 in operating funds in our checking account.

Mr. Schneider then turned to the Covenant committee report. He stated the covenants were a two-pronged sword in that we need them to maintain property values and their existence generates “offenses”.

The Covenant Committee does a walk around twice a year to check ditches. This is done a week or so after spring and fall cleanup. Those whose ditches are not acceptable will receive a letter giving them 30 days to attend to the concern. The Committee will do another check after 30 days and fining will begin if the situation has not been taken care of.

Mr. Schneider then asked that members contact Touchstone if they become aware of a violation. Touchstone will send a letter requesting the homeowner take care of the situation. If it has not changed within a reasonable time, the Board will be asked to take action. He asked the members to understand that the Committee and the Board are not always as aware of violations as those who live in close proximity and that the Board appreciates follow up calls to Touchstone alerting us to a continuing situation.

The floor was then given to Secretary Cathy Sorensen to discuss ACC procedure and the Directory.

Secretary Sorensen spoke regarding the Directory first. She had decided to not run the business cards at this time since there was a bit of controversy regarding it. It is hoped the Directory can be updated biannually and perhaps in the next printing we can include those services.

The ACC Committee has been busy with lots of new roofs. The neighborhood is changing from shakes to asphalt and/or metal – Gerrard. Those roofing materials listed in the ACC guidelines distributed last year are acceptable. Others require filing an ACC review request. Green roofing has not been accepted as a suitable color. Please allow the ACC a reasonable amount of time to review your request as many this year had the painter at the house, or the roof about to come off before the ACC heard about the situation. The ACC has 30 days to make a decision and we have done our best to accommodate those in a pinch, but it makes it more difficult for everyone when the change is not approved.

The ACC is concerned only with exterior changes. Since the neighborhood is aging, many members are finding they need to revamp their landscaping. If this is going to be something small, such as replanting or replacing a tree, the ACC does not need to be informed. Major changes do require a form. One member pointed out that the ACC guidelines state anything over 1/3 of the landscaping requires an ACC review. Please supply a plan with your request.

The floor was then given to Director Mark Hynes to discuss Landscape and Maintenance (L&M). Mr. Hynes reviewed what the committee had accomplished in the year 2003-2004. This included updating the landscaping at both entrances, as well as the Idledale/Wellington triangle and painting the walkway stairs, and repainting/repairing and building sprinkler houses. This cost approximately $22,500.

This year L & M reconnected the sprinkler to the center island at Taft Hill, in order to irrigate the new plantings there. They met with our landscape maintenance company to discuss replanting, and repairs to the sprinkler system, as well as seeding the Idledale/Wellington triangle taking advantage of the irrigation system there. Next spring the committee plans to use a hose connection to water the plantings at the 38E entrance, which had been watered by truck previously. Also, the trees at 38E will be pruned. Cathy Fromme Prairie entrance will be replanted, as this area did not survive the winter with the drought.

There was a question from the members as to why the split rail fence between Cathy Fromme and Taft Canyon was removed. Also, Kristi Gilsdorf expressed surprise that the green space behind their house (on South Grosvenor) had been mowed. (This was done by our landscape contractor at the request of the L & M committee) Director Hynes stated he did not know why, it was part of the city’s property. Kristi stated that in working with the City regarding the drainage pond, they said they had removed it because it created a no man’s land between the areas and there had been some dumping of yard waste in the space. Members were concerned that Taft Canyon had somehow forfeited some green space in this situation. No conclusion was reached regarding that concern.

The floor was then given to Director Jim Lofink who discussed the four phase Project Management Process that has been adopted by the Board (Idea, Plan, Fund, Execute). Basically, champions and project teams will be used to turn good ideas into reality under the direction of the Board.

He reviewed the open meeting held in October to brainstorm ideas to make the neighborhood better. The 54 ideas that were generated by members were posted on the wall during the Annual Meeting so attendees could review them. Some of the ideas were expensive such as repairing the roads; others were inexpensive such as doggie clean up bag holders. Some cost nothing – such as having more social groups. What any idea needs to be implemented is a champion. A champion is someone who believes in the idea enough to make it happen. The Board is looking for champions to promote future projects for the neighborhood.

Regarding Capital Projects currently in process, Director Lofink explained that there were three (Fence, Streets and Drainage Pond) and that the project champions would give a brief update on the status of each.

The Fence project currently has no champion, so Director Lofink spoke to it. It is a 3-phase project started in 2001. At that time part of the Perimeter Fence was replaced at a cost of $38,000. The part that remains will cost approximately $78,000 in 2001 prices. The project is currently on hold and we are doing maintenance only. If anyone notes and safety or repair needs, please forward them to the Board. None were voiced at the meeting.

There was a question from the members regarding the staining of the perimeter fence. The L & M committee had looked at the cost – approx. $3500 and decided to use the money elsewhere as there was some disagreement as to whether this would ultimately prolong the life of the fence and then require continual staining. A champion could research this, propose a course of action and possibly even consider using volunteer help to maintain and/or stain the fence for much less. A champion did not volunteer at the meeting.

The floor was then turned over to Scott Smith, Chairman of the Roads Committee. He stated that when LaFarge resurfaced parts of Wellington, they first put a bonding agent on the road surface then applied up to 8” of asphalt. The committee worked with LaFarge to get the ‘best bang for the buck’ regarding which areas of Wellington would be done. The final results are still not known as LaFarge felt that the repaired section would need to go thru an entire year, including winter heating up and freezing, to ascertain if this will fix the problem. They thought if the repair holds thru May, then it will be good for 5-10 years. It was LaFarge’s opinion that relocating the utility lines and the settling of those patches caused the dip problems on Wellington.

The next area for repair (if this is the answer) will be Grosvenor for two reasons: LaFarge recommends doing the farthest away section first to alleviate the large equipment traveling over previously paved sections; and second, that section seems to have the next greatest amount of damage. (Steve showed a photo of kids playing in water in the dip in Grosvenor to illustrate its depth) The trash trucks cause damage by turning around in the cul du sacs. Their wheels grind into the asphalt while making the turn concentrating a very great amount of torque and pressure on a small area. Therefore, having only one trash company for Taft Canyon is part of the answer in keeping our roads in good shape. The committee would like to proceed with the next section, if the repair holds, in April or May 2005. Cost is projected to be around $25,000. The Annual Budget has an entry of $25,000 under Capital Projects for this repair.

Members expressed a concern for a hole that has appeared near the stop sign at Idledale. Jim Lofink said he would contact Larimer County Road and Bridge to investigate and fix this.

Kristi Gilsdorf, champion of the “Cattail Pond” project team, reported next on their progress. She informed the members that the pond, located next to Cathy Fromme Prairie, has decreased markedly in capacity from when Taft Canyon was first established. She showed slides illustrating what the pond originally looked like, with little or no cattails, versus its present day situation of almost 2/3 cattails. Reasons why this has occurred are silting in of the pond from several floods and large rains, and fertilized water running into the pond area and feeding the growth of cattails.

Larimer County has advised the Association that the diminished water-holding capacity is a floodplain concern, and that legislation may require restoration of the pond within a few years. It has not been fully determined who would fund the restoration, but it seems the HOA has some part of the responsibility for maintenance of our drainage system. It is not known if there would be federal, state, or local monies to help dredge the pond, but the team will research these possibilities. Meanwhile the team is going through the steps to put together a plan to present to the Board, the members and the County.

Bob Potterveld, team member, presented the teams proposed goals and one potential plan for the area.

Committee’s Goals for the Future

• Develop mixed-use retention pond & wildlife habitat (meeting gov’t regs)
• Restore vegetation and maintain cattails (30%) to open water (70%) ratio
• Build berm to prevent flooding
• Create path for recreation & viewing
• Adopt mosquito control plan
• Adopt long-term maintenance plan
• Develop lawn fertilization recommendations

The future vision that the team is discussing includes dredging the pond and using that material to create a berm separating the pond from the houses and reducing flooding of those homes. Some cattails would be retained for wildlife habitat, and a footpath may be incorporate for recreation and viewing.

Kristi Gilsdorf asked that during this planning phase, residents please educate themselves on fertilizer use so we do not contribute further to this problem. There is a website regarding the use of fertilizers and their effects at http://www.sfwmd.gov/org/exo/broward/c11bmp/fertmgt.html. She then discussed the mosquito control concern. She said Colorado Mosquito Control had taken over spraying in the pond area since it is within one mile of city owned property. But, we still have mosquitoes. She stated that it was difficult to spray for mosquitoes since the pond has so many ‘holes’ between cattail clumps. This is another reason for dredging the pond.

Next Director Lofink discussed his 2005 plan for Capital Projects, which is to develop a long term Capital Project Plan identifying needs and costs, prioritizing the work into phases, calculate cash flow and reserve requirements, and proposing a 10+ year plan to manage this situation. The Board and membership will then have an opportunity to review, amend and adopt the plan, including annual reviews, to guide us through the future.

The floor was then given to President Julie Ramirez, chairperson of the Social Committee. President Ramirez spoke to only 6 homes still using other trash service companies. As stated by the Road Committee, trash haulers are the main cause of damage to our roads. Those 6 houses generate 2 other trash haulers traveling our roads each week.

Gallegos has agreed to decrease their fee by an additional $2 per quarter, (basic service would cost $25 per quarter) if we decided to have Touchstone collect the payments and pay Gallegos directly. The trash fees would then be added to quarterly dues. There has been no final decision on this matter.

Spring Cleanup generated 4 dumpster loads of yard waste, etc from the neighborhood. Gallegos provided the dumpsters.

We do not at present have a date for next year’s garage sale. We are hoping to keep it on the second week in June. This depends upon Quail Hollow’s sale as we try to avoid having it the same weekend.

The Annual Picnic was again a success. Approximately 175 people attended. The committee discussed changing the food, but almost all the chicken was eaten, so they will continue with that. Jumperoos will also be a part of next year due to its popularity. The Wine/Scotch tasting tent seemed to be enjoyed as well.

There are lots of other neighborhood social activities:
– Book groups
- Safety Night
– Ladies Night Out
- Euchre
– Poker
- Bunco
– FAC’s
- Golf

We have a very active neighborhood.

The committee got more social ideas from Brainstorming – we need volunteers to make them happen!

There was applause for the Social Committee.

There was no unfinished business.

New business included discussion regarding increasing Homeowners Dues by $5 per quarter. Treasurer John Schneider had requested and received a 7%, ($5) increase in dues from the Board. The rationale is to put by additional funds in small bites to pay for those projects in the future which will require a substantial outlay i.e. road repair, fence replacement, possible pond dredging, and landscape repairs.

Additionally it is anticipated that we will see a 5% increase in operating expenses in the near future. These could include a 3% increase in Management fees; 22% increase in legal, social and accounting costs; 1% increase in landscape contract/repairs; and a 5% increase in utilities costs. It is projected to cost $25,000 for the next phase of street repairs, our next Capital Project. He estimates the HOA will have $73,500 in cash and reserves at the end of 2005 following this increase.

A question came from the members regarding bidding out the management contract. Treasurer Schneider stated the Board will consider that this year.

He asked the membership to ratify the budget. A motion came from the floor to ratify the budget presented by Treasurer Schneider. Pete Cecchinelli seconded it. The vote was taken by voice vote, it passed with no dissenting votes.

The next item of New Business was for the membership to address the number of Directors currently serving on the Board. The number required in the Covenants is 5, 7,or 9. From 1987-99, the Board had 7 Directors as decided by the membership. Currently there are 5 Board members. The change in number was a result of attrition.

Another concern is that several positions have become vacant in the same year. Staggering end of terms would contribute to continuity of the Board. At this time, we have 3 board members whose terms are ending. John Schneider is retiring from the Board, and both Mark Hynes and Jim Lofink are up for re-election. Mark was added to the Board for a one-year term last year, and Jim Lofink was Board appointed to finish out the term for the position vacated by John Troiano in March, which also ended this year.

Secretary Cathy Sorensen read a motion regarding the number of board members. It stated: I move that the number of Directors be set at five (5), and that tonight we elect one (1) director for a one (1) year term and two (2) directors for a three (3) year term. Thereafter, as described in our Articles and By-Laws, directors shall be elected for terms of three (3) years. The effect of this motion is to set the number at five (5), and stagger the terms in a 2-2-1 election cycle.

Kristi Gilsdorf seconded the motion.

President Ramirez opened the motion for discussion. A member asked how many board members are usually present at the board meetings. The answer was 4 or 5. We have had a quorum every meeting for over 2 years. Comment came from the members that with more board members there would be less disruption when someone’s term was up. The members asked the Board how they felt about having 5 on the board. The general response was that it worked fine. A member asked if there was anything in the Covenants or By-laws stating how the representation was divided among the 3 phases. The Board did not know of any specific legal requirement but at this time, there are 3 Board members from Phase 1, and one each from Phases 2 and 3.

President Ramirez asked for a vote by show of hands. The motion passed. The Board of Directors will have 5 members.

Next item of new business was the election of board members.

The nominating committee, consisting of Julie Ramirez, Jim Lofink and Cathy Sorensen, nominated Linda Beard to the position vacated by John Schneider, and the retention of Mark Hynes and Jim Lofink. The ballots were available from Touchstone upon signing in.

President Julie Ramirez asked if there were any nominations from the floor. There were none. Linda Beard was not present, having had a time conflict just prior to the meeting. The members asked which Phase she lived in, she resides in Phase 1.

Pete Cecchinelli moved that we accept the three nominations as listed on the ballot in lieu of taking the ballots. The motion was seconded, and passed by a show of hands.

The Board announced that the new nominating committee is Julie Ramirez, Marge Sample, and John Schneider.

The Board presented a plaque to John Schneider recognizing his service to Taft Canyon HOA for the years 1999-2005.

The membership asked if there was any plan for the City of Fort Collins to annex Taft Canyon. The Board responded that they have not been contacted, but will investigate and report to members if there is any likelihood of this happening.

A question was raised regarding a resolution for the pond situation. Kristi Gilsdorf responded that we need more information and to have an engineer review the situation before we make decisions. Kristi also said the project is ongoing, although winter is the best time to get rid of cattails because the area is firm for the machines due to dryness and freezing. She urged residents to look into the website on fertilizers, and to use the slow release type.

Craig Bryant asked that people remember the speed limit is 25.

A request was made to those owning dogs to keep them from barking.

The group recognized Jim Lofink for his contribution of making the presentation slides for the annual meeting.

President Julie asked for motion to adjourn, and it was seconded and passed by voice vote.

Meeting adjourned at 9:10pm.

Respectfully submitted,
Cathy Sorensen, Secretary