Southern Ridge Home Owners Association Special Session Meeting

Meeting Location: HOA Management – 900 N Tyler Suite 7 Wichita KS

Meeting Date: Wednesday, August 16, 2017    Meeting Time: 6:30 pm

Meeting Agenda Recorded By: Danielle Basile

Kip, Connie, Jeremy, Tyler, Brian, Danielle, Ashley

Joe

Call Meeting to Order: 6:35pm

* Residents in attendance: Jeff, Chris, Stephanie, Derek, Crystal, Judy and three others.

Presentation of Commons Project Plans: Tyler, project Point of Contact, presented a Commons Development plan which included project scope, project phasing options, estimation of project costs, HOA financials and sample budget, intent to finance and raise money.  *Presentation included as a separate PDF File

Questions Regarding Project Presentation:

1. Does a bigger pool require a lifeguard?  Board will follow up with City, but doesn’t believe it’s a requirement.
2. Will a new concrete pool pose an issue in considering the increase of earthquakes in the area?                            Board stated that the question had been posed with the Pool Installation company and it was noted that this has not been an issue with any of their pool installations.  Board will follow up on whether warranty would cover any such issues should they arise.

Resident’s Open Forum: Residents given an opportunity to provide feedback and ask questions.

1. Resident stated something has to be done to improve the Commons Area, and the cost doesn’t seem to be at a huge cost increase to residents.  Most other neighborhoods with a pool have an HOA Fee and a Pool Fee, so this seems like a well vetted deal.
2. Question as to whether a Club House was considered in lieu of a Pavilion/Shelter.  Board noted that it has not been suggested by residents to the current board and therefore hasn’t been planned.  Question posed: could we take the $90,000 for a sport court and put it toward a club house instead?  Point was made that we have had a great deal of feedback and actual use which necessitates a basketball court.  Brian noted he’s spent a lot of time recently working near the current court and it is frequently in use.
3. Resident noted that the project seemed fair, but might need to be scaled down.  Fee increases vs                     amenities is a great ratio – residents would be getting a lot for a little increase.
4. Board asked residents if any changes should be made and multiple residents stated the Sport Court could probably be scaled down.
5. Point was made by HOAMS that in other HOA neighborhoods which have taken out larger loans                         their HOA’s have been able to pay off loan terms faster than anticipated.
6. Clarified that pool couldn’t simply be “enlarged” within a single phase of a multi-phase approach.                       Community really needs a commercial grade pool and to expand the pool in phases would create larger cost implications due to continual needs to upgrade pool equipment, the need for access, and the initial need for infrastructure changes.
7. Resident expressed concern that he didn’t feel the numbers accounted properly. It was pointed out that the charts in the presentation were from 2016 and our number of paying members has increased and added to our income.  However, the board believes the projections, as presented, are correct.  Board offered to send resident spreadsheet to promote transparency.
8. Board noted that there is an interest in scaling down the proposed project but that there is a strong need for each amenity included in the plan.

Agenda Amended to Add a Board Vote for Over-seeding areas unaffected by Commons Project:

                Bids: Attempted to secure bid 3 times with no return call

Zoglman:  148,000 sq.ft. at $.06 per sq. ft. to be over-seeded with fine blade fescue, $8,880                                                 Hay LC: Bid a range $15,000 – $20,000

Discussion: Hay doesn’t have equipment to complete job.  Zoglman’s bid is only for over-seed.  Brian will seek additional bid from Zoglman to re-grade areas near sidewalks and rutted areas of concern before over-seeding.  Brian cautioned it is likely there will be additional costs to fix irrigation due to the nature and size of the job.  There area around 1,000 sprinkler heads to account for.  Brian will consider options to locate heads, valves, main lines, and other important features.

Vote: Jeremy motions to approve Zoglman’s over-seed bid, Brian seconds, vote passes unanimously.

Question posed whether we should get an irrigation map for future use.  Brian stated this is called an “As-Built” irrigation map.  He believed it would cost nearly $1,300 to properly GPS locate heads and valves; to also obtain a location of main lines or lateral lines could get quite costly.  Brian will look into the option but noted the season is almost over.  Brian can locate the heads to save costs, but will also plan to seek bids for location and an “as-built” map.

 Final Project List: Board commented that all amenities presented in the plans are necessary but sizing should be considered.  Brian moves to accept project amenities to include- Larger Concrete Pool, Baby Pool, Pavilion, Multi-Purpose Court, Fix for Un-developed Lot/Drainage/Dirt Work, Larger Upgraded Playground, Parking on North Side, Security/Lighting Upgrades; Jeremy seconds the motion and vote passes 6-1 (Nay=Connie)

Set Budget Maximums: Board concluded the project costs ought to decrease.  Question posed: How much would the bank give us?  Tyler said the bank wouldn’t answer that question.  HOAMS noted that the bank would loan up to $1,000,000 so we ought to be able to secure a loan.  Board asked that we consider a budget range of $300,000 – $600,000.  Board asked to add budget constraints to Studium’s plan.  HOAMS recommended we secure a loan for more than we need noting the HOA can give unneeded money back to the bank; If we have to constantly refinance we would face mounting fees and interest.  Note that the HOA might be able to secure a Line of Credit – so that money can be pulled as needed and interest only accrues on money taken.  Research needs to be done on loan vs. line of credit options so we may better understand our best avenue.  Tyler will follow up with bank on options.  Ashley motions to set the total project planning target for Studium to a $450,000 max budget; Tyler seconds and vote passes unanimously.

Intent to Raise Dues:  Board discusses whether we must raise dues.  It is clarified that we do not need to move to vote until the project and financing is approved by residents in October.  Raising dues is contingent on moving forward with the project and the need to secure a loan.  Board has stated support for raising dues should the community approve the project and loan.  Brian expressed concern that the commons area needs developed and needs additional money to do so.  In order to make a solid financial plan, some level of assurance is needed to assure additional revenue is available.  He believes the best approach is to vote to increase dues to a level consistent with the plan presented by Tyler.  The decision was made to table the vote until more information is available.

Phasing Project: Board noted a preference for a one phase project.  It was clarified that regardless, the first phase would be infrastructure work.  By the time the Board moves to second phase (adding amenities), we would already have issues with first phase infrastructure and are faced with maintaining upkeep costs for current amenities.  Resident’s wouldn’t likely see new amenities for roughly five years or more.  Furthermore, as the Board changes over, new ideas might come about and future plans could likely be derailed.  Kip motions that we move forward with one single phase project, Jeremy seconds, vote passes unanimously.

Topographical Survey: Board notes that a topographical survey is a necessity considering our large scale drainage issues and the scale of the project plans.  It was highly recommended by  Studium Architecture.  Studium sought three bids for the survey.  Two companies submitted bids:

Savoy: $2,750

K.E. Miller: $1,430

Jeremy motions to approve K.E. Miller to conduct the Topographical Survey, Kip seconds, vote passes unanimously.

Adjournment: 8:37pm

**Next Board Mtg. held at 6:30pm on August 28th at HOA Management – 900 N Tyler Suite 7 Wichita, KS.