Orenco Gardens Homeowner's Association

Orenco Garden’s Homeowner Association
Board of Directors Meeting – Budget 2005
Dec 6th 2005, 6:30pm

Roll Call

Attending Board members
Lois Seeley
Krishna Regupathy
Dennis Holtz
Scott Richardson
Andy Gravano

Announcements
- Open Forum at end of session
- Motion to delay approval of minutes to next meeting

Budget Intro
Orenco Garden has five associations, broken down by housing group. All associations are in good shape financially except for Rowhomes, which inherited a negative retained earnings at our turnover meeting

Treasures information on budget 2005
- Total budget $418,000
- Down from 2004 budget of 436,000 and down from 2005 projected $440k-$445k

Comparing budgets options… will attempt to present multiple options

President and Treasurer have met with NWCM and have gone through two draft budgets. Budgets didn’t seem right, so we pushed NWCM for more answers. The 2004 budget was not based on full build out, but 2005 budget will be based on an assumed full build out

Treasurer disappointed with NWCM information and response regarding budget. Knowledge either wasn’t there or facts were hidden. When pressed for details, NWCM backpedaled. Suggests opening up the contract for bid in 2005. NWCM is paid $35k per year; the landscape budget is close to $175k. We need to make sure we use our large homeowner numbers to renegotiate our contracts.

Details of five associations, where numbers come from and what it means to each type of home.

Treasurer opens with description of first packet
- Break out of numbers from YTD vs Projected
- Breakout of landscaping contract. and landscaping extras
- Breakout of management contract

411 Budget – Master Association
2004 Assessment $137.00 twice yearly; Total budget $149K
Note: Get rest of details from larger financial packets

The Treasurer created an Excel spreadsheet for Budget 2005. The Green highlighted items are items which the Treasurer is comfortable with as being realistic. The Yellow highlighted items represents some questions that need to be answered. The Red highlighted items represents bad numbers. The Board needs to look more closely at these items prior to approval.

Big questions for 411 budget includes Electric, Water and Common Area Maintenance.

Details:
Financial Review
- The Board has suggested a Financial Review by an external company to audit our financial information
- Line item approved 5-0

Tax Expense
- Tax Fee required for non-profits
- Line item approved 5-0

Insurance
- First item where numbers didn’t match what NWCM gave us
- $1987 spent in 2004 YTD per NWCM
- Line item approved 5-0

Licenses and Fees
- Fee required for being a non-profit
- Went up from $20 - $50
- Line item approved 5-0

Electric/Water
- Electric and Water were not previously charged to the HOA. Developer paid common utilities in 2004
- Budget numbers based on 2004 projections
- West Hills Development has been paying the Electric/Water directly so NWCM has no paper trail
- Electric line item approved 5-0
- Water line item approved 5-0

Landscape Contract Maintenance
- Showplace Landscaping agreed to reduce contract by 10.5% but we have nothing in writing
- The Board moved to delay the vote to until at least Friday, December 10, 2004. If there is nothing in writing by Friday, the Board will move forward with original budget number.
- Deferred approved 5-0

Landscape Supplies and Extras
- NWCM and Showplace Landscaping detailed the Supplies/Extras line item in 2004 budget
- Details in small financial packet
- On proposed budget for 2005, the barkdust cost falls under Reserves. There was a motion moved and seconded to move the fee to the landscape line item – Supplies/Extras. Approved 5-0
- Line item approved 5-0

Common Area Maintenance/Repair
- Different from reserves, asking for clarification on charges from NWCM
- Line Item deferred

Allocation for reserves
- The 2005 Budget was increased 10% over 2004 in order to provide for a reserve study to be completed in 2005
- Line item approved 5-0

Professional Management
- Moved to delay the vote to until at least Friday, December 10, 2004. If there nothing in writing by Friday, the Board will move forward with original budget number.
- Deferment approved 5-0

Tax Preparation
- Line Item approved 5-0

Printing, Postage, Special Services
- Can 411 be included in monthly assessment to reduce cost? No per NWCM as there would be costs involved for extra labor
- Line Item differed until Friday, December 10, 2004

Reserve Study
- Line item approved 5-0

412 Budget - Classics

Details:
Financial Review
- The Board has suggested a Financial Review by an external company to audit our financial information
- Line item approved 5-0

Tax Expense
- Included in the master association budget (411)

Electric
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 5-0

Water
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 5-0

Landscape – Contract Maintenance
- Approved 5-0 pending verification of new contract

Landscape – Supplies/Extras
- Add $4500 for bark dust
- Approved 5-0

Common Are Maintenance/Repair
- Approved 5-0
- No cost now

Professional Management
- Defer vote until question answered regarding costs per unit difference
- Deferred to December 10, 2004 meeting

Printing, Postage, Special Service
- Defer Vote until question answered regarding costs per unit difference
- Deferred to December 10, 2004 meeting

Reserve Study
- None

413 Rowhomes

Details:
Financial Review
- The Board has suggested a Financial Review by an external company to audit our financial information
- Line item approved 5-0

Tax Expense
- Included in the master (411)

Insurance
- Row homes suffered a financial shortfall in 2004 in the form of negative retained earnings inherited from the developer at turnover
- Rowhomes hold a $9k shortfall in budgetary reserves. They had been paying for operating costs out of their reserves.
- Lots of questions yet to be answered by NWCM regarding why cost of insurance far exceeded the budget number for 2004
- West Hills Development should have levied a special assessment to bring the association out of the “red” but were not.
- NWCM thinks that shortfall could be paid out of the 411 Master Association. HOA thinks that this is not a reasonable option; the entire association should not have to pay for the financial shortfall of another association.
- Line Item Approved 5-0

Electric
- See note from master association budget (411)
- Going with NWCM 2004 estimate
- Line item Approved 5-0

Water
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 5-0

Landscape – Contract Maintenance
- Approved 5-0 pending verification of new contract

Landscape – Supplies/Extras
- Removed weedgrass removal from the budget and added $1750 for bark dust
- Approved 5-0

Common Area Maintenance/Repair
- Approved 4-0 (Dennis Holtz needed to leave the meeting)

Allocation for Reserves
- Approved 4-0

Professional Management
- Deferred pending written contract and confirmation of per home cost

Tax Preparation
- None

Printing, Postage, Special Services
- Defer vote until question answered regarding costs per unit difference
- Deferred

Reserve Study
- Approved 4-0

414 Budget – Courtyard

Details:
Electric
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 4-0

Water
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 4-0

Landscape – Contract Maintenance
- Approved 5-0 pending verification of new contract

Landscape – Supplies/Extras
- Removed Weedgrass and added $2932 bark dust
- Approved 4-0

Common Area Maintenance/Repair
- Approved 4-0

Allocation for Reserves
- Removed the bark dust and moved to Landscape – Supplies/Extras
- Approved 4-0

Professional Management
- Deferred pending written contract and confirmation of per home cost

Tax Preparation
- None

Printing, Postage, Special Services
- Defer vote until question answered regarding costs per unit difference
- Deferred

Reserve Study
- None

415 Budget - Courtyard

Details:
Electric
- See note from master association budget (411)
- Going with NWCM estimate
- Line item Approved 4-0

Water
- See note from master association budget (411)
- Going with NWC Estimate
- Line item Approved 4-0

Landscape – Contract Maintenance
- Approved 4-0 pending verification of new contract

Landscape – Supplies/Extras
- Removed weedgrass removal from budget and added $2500 for bark dust
- Approved 4-0

Common Area Maintenance/Repair
- Approved 4-0

Allocation for Reserves
- Removed the bark dust and moved to Landscape – Supplies/Extras category
- Approved 4-0

Professional Management
- Deferred pending written contract and confirmation of per home cost

Tax Preparation
- None

Printing, Postage, Special Services
- Defer vote until question answered regarding costs per unit difference
- Deferred

Reserve Study
- None

Open Forum
Kris Bosland: Suggested the HOA should get a blueprint for electrical and water in common areas. Questioned whether vandalism was covered under our insurance policy.

Adjournment
Meeting was adjourned and 2005 budget approval deferred until December 10, 2004 until the Board for clarification of several line items in the budget. The board will reconvene on Friday, Dec 10th to finalize the 2005 budget.


Home About Us The Board Contact Info Our Community Community Calendar Community Events Community Issues Committees Meeting Minutes FAQ Architectural Review Area Information Important Info Local Restaurants Schools and Parks Area Lodging Area Realtors Places of Worship	Orenco Garden’s Homeowner Association Board of Directors Meeting – Budget 2005 Dec 6th 2005, 6:30pm Roll Call Attending Board members Lois Seeley Krishna Regupathy Dennis Holtz Scott Richardson Andy Gravano Announcements - Open Forum at end of session - Motion to delay approval of minutes to next meeting Budget Intro Orenco Garden has five associations, broken down by housing group. All associations are in good shape financially except for Rowhomes, which inherited a negative retained earnings at our turnover meeting Treasures information on budget 2005 - Total budget $418,000 - Down from 2004 budget of 436,000 and down from 2005 projected $440k-$445k Comparing budgets options… will attempt to present multiple options President and Treasurer have met with NWCM and have gone through two draft budgets. Budgets didn’t seem right, so we pushed NWCM for more answers. The 2004 budget was not based on full build out, but 2005 budget will be based on an assumed full build out Treasurer disappointed with NWCM information and response regarding budget. Knowledge either wasn’t there or facts were hidden. When pressed for details, NWCM backpedaled. Suggests opening up the contract for bid in 2005. NWCM is paid $35k per year; the landscape budget is close to $175k. We need to make sure we use our large homeowner numbers to renegotiate our contracts. Details of five associations, where numbers come from and what it means to each type of home. Treasurer opens with description of first packet - Break out of numbers from YTD vs Projected - Breakout of landscaping contract. and landscaping extras - Breakout of management contract 411 Budget – Master Association 2004 Assessment $137.00 twice yearly; Total budget $149K Note: Get rest of details from larger financial packets The Treasurer created an Excel spreadsheet for Budget 2005. The Green highlighted items are items which the Treasurer is comfortable with as being realistic. The Yellow highlighted items represents some questions that need to be answered. The Red highlighted items represents bad numbers. The Board needs to look more closely at these items prior to approval. Big questions for 411 budget includes Electric, Water and Common Area Maintenance. Details: Financial Review - The Board has suggested a Financial Review by an external company to audit our financial information - Line item approved 5-0 Tax Expense - Tax Fee required for non-profits - Line item approved 5-0 Insurance - First item where numbers didn’t match what NWCM gave us - $1987 spent in 2004 YTD per NWCM - Line item approved 5-0 Licenses and Fees - Fee required for being a non-profit - Went up from $20 - $50 - Line item approved 5-0 Electric/Water - Electric and Water were not previously charged to the HOA. Developer paid common utilities in 2004 - Budget numbers based on 2004 projections - West Hills Development has been paying the Electric/Water directly so NWCM has no paper trail - Electric line item approved 5-0 - Water line item approved 5-0 Landscape Contract Maintenance - Showplace Landscaping agreed to reduce contract by 10.5% but we have nothing in writing - The Board moved to delay the vote to until at least Friday, December 10, 2004. If there is nothing in writing by Friday, the Board will move forward with original budget number. - Deferred approved 5-0 Landscape Supplies and Extras - NWCM and Showplace Landscaping detailed the Supplies/Extras line item in 2004 budget - Details in small financial packet - On proposed budget for 2005, the barkdust cost falls under Reserves. There was a motion moved and seconded to move the fee to the landscape line item – Supplies/Extras. Approved 5-0 - Line item approved 5-0 Common Area Maintenance/Repair - Different from reserves, asking for clarification on charges from NWCM - Line Item deferred Allocation for reserves - The 2005 Budget was increased 10% over 2004 in order to provide for a reserve study to be completed in 2005 - Line item approved 5-0 Professional Management - Moved to delay the vote to until at least Friday, December 10, 2004. If there nothing in writing by Friday, the Board will move forward with original budget number. - Deferment approved 5-0 Tax Preparation - Line Item approved 5-0 Printing, Postage, Special Services - Can 411 be included in monthly assessment to reduce cost? No per NWCM as there would be costs involved for extra labor - Line Item differed until Friday, December 10, 2004 Reserve Study - Line item approved 5-0 412 Budget - Classics Details: Financial Review - The Board has suggested a Financial Review by an external company to audit our financial information - Line item approved 5-0 Tax Expense - Included in the master association budget (411) Electric - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 5-0 Water - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 5-0 Landscape – Contract Maintenance - Approved 5-0 pending verification of new contract Landscape – Supplies/Extras - Add $4500 for bark dust - Approved 5-0 Common Are Maintenance/Repair - Approved 5-0 - No cost now Professional Management - Defer vote until question answered regarding costs per unit difference - Deferred to December 10, 2004 meeting Printing, Postage, Special Service - Defer Vote until question answered regarding costs per unit difference - Deferred to December 10, 2004 meeting Reserve Study - None 413 Rowhomes Details: Financial Review - The Board has suggested a Financial Review by an external company to audit our financial information - Line item approved 5-0 Tax Expense - Included in the master (411) Insurance - Row homes suffered a financial shortfall in 2004 in the form of negative retained earnings inherited from the developer at turnover - Rowhomes hold a $9k shortfall in budgetary reserves. They had been paying for operating costs out of their reserves. - Lots of questions yet to be answered by NWCM regarding why cost of insurance far exceeded the budget number for 2004 - West Hills Development should have levied a special assessment to bring the association out of the “red” but were not. - NWCM thinks that shortfall could be paid out of the 411 Master Association. HOA thinks that this is not a reasonable option; the entire association should not have to pay for the financial shortfall of another association. - Line Item Approved 5-0 Electric - See note from master association budget (411) - Going with NWCM 2004 estimate - Line item Approved 5-0 Water - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 5-0 Landscape – Contract Maintenance - Approved 5-0 pending verification of new contract Landscape – Supplies/Extras - Removed weedgrass removal from the budget and added $1750 for bark dust - Approved 5-0 Common Area Maintenance/Repair - Approved 4-0 (Dennis Holtz needed to leave the meeting) Allocation for Reserves - Approved 4-0 Professional Management - Deferred pending written contract and confirmation of per home cost Tax Preparation - None Printing, Postage, Special Services - Defer vote until question answered regarding costs per unit difference - Deferred Reserve Study - Approved 4-0 414 Budget – Courtyard Details: Electric - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 4-0 Water - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 4-0 Landscape – Contract Maintenance - Approved 5-0 pending verification of new contract Landscape – Supplies/Extras - Removed Weedgrass and added $2932 bark dust - Approved 4-0 Common Area Maintenance/Repair - Approved 4-0 Allocation for Reserves - Removed the bark dust and moved to Landscape – Supplies/Extras - Approved 4-0 Professional Management - Deferred pending written contract and confirmation of per home cost Tax Preparation - None Printing, Postage, Special Services - Defer vote until question answered regarding costs per unit difference - Deferred Reserve Study - None 415 Budget - Courtyard Details: Electric - See note from master association budget (411) - Going with NWCM estimate - Line item Approved 4-0 Water - See note from master association budget (411) - Going with NWC Estimate - Line item Approved 4-0 Landscape – Contract Maintenance - Approved 4-0 pending verification of new contract Landscape – Supplies/Extras - Removed weedgrass removal from budget and added $2500 for bark dust - Approved 4-0 Common Area Maintenance/Repair - Approved 4-0 Allocation for Reserves - Removed the bark dust and moved to Landscape – Supplies/Extras category - Approved 4-0 Professional Management - Deferred pending written contract and confirmation of per home cost Tax Preparation - None Printing, Postage, Special Services - Defer vote until question answered regarding costs per unit difference - Deferred Reserve Study - None Open Forum Kris Bosland: Suggested the HOA should get a blueprint for electrical and water in common areas. Questioned whether vandalism was covered under our insurance policy. Adjournment Meeting was adjourned and 2005 budget approval deferred until December 10, 2004 until the Board for clarification of several line items in the budget. The board will reconvene on Friday, Dec 10th to finalize the 2005 budget.
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