Park River Oak Estates Homeowner's Association

Meeting Minutes

November 18, 2012 Park River Oak Estates HOA Membership Meeting

5:00 pm at the Park River Oaks Estates Clubhouse

ATTENDED:  Marguerite Elia, President; Greg Watanabe, Treasurer; Darrell Y. Hamamoto, Secretary  and six home-owner members at large.

ABSENT:  Eric Olsen, Vice-President

Meeting called to order.  Quorum met through thirty-five election ballots.  Nine residents were in attendance.

Agenda

1.  Introductions:  PROE HOA officers and general homeowners.

Marguerite Elia reported that seventy-one (71) households are current on dues.  Nine (9) households are delinquent in dues ranging from one month behind, to  a few on  the  verge of foreclosures.

2.  Board Election Procedures

President Elia explained the process of the three election inspectors PUBLICLY counting  the  ballots, to   those  in attendance.

Twenty-four (24) or more ballots are required for a valid vote based  on  our  CCR rules for those homes who  are  current  on  their dues.  Thirty-seven (37) ballots were submitted.  Two (2) ballots were disqualified ballots because of delinquency in dues.  There were a total of thirty-five (35) valid ballots.

3.  Election tabulations

Three election inspectors counted the ballots publicly.

A total of thirty-four (34) ballots were cast in favor of the reelection of Marguerite Elia as president of the Park River Oak Home Owner’s Association.

A total of twenty-four (24) ballots were cast in favor of the reelection of Eric Olsen as  vice-president of PROE HOA.

4.  Year in Review 2012

Planned Unit Development (PUD) defined:  It is in a legal category  similar to a single-family dwelling moreso than  a condominium according to the PROE HOA CCRs.  This legal category  DEFINES who repairs  what, based  on  who  OWNS  what   and  the homeowner  bears  the  burden  of  most  repairs, by  state  law.

President Elia reported that homes are selling once more and once again  the newest residents are therefore requesting inappropriate services for their PRIVATE dwellings.  She referred to the definition of PUDs and laws that establish that they are responsible for all repairs within their own walls, and numerous external features  as  well.

President Elia estimates that the value of PROE homes dropped by about $25,000 due to one price that was listed at an artificially low price of $80,000 for many months, although it  sold higher than  that,  it  had  a  domino effect for other sales.

PROE is not a “condominium complex.”   Therefore, PROE residents are legally responsible for all repairs from the ground up  to  the roof,  the  only exceptions  are  the items listed  in  the  Reserve  study such  as  the  roof  and  gutters.  We  have  never  repaired windows, doors, or  balconies, those repairs belong  exclusively  to  the  owners.

In one case, a bank questioned the refinance of a home due to our purchase  of “condo” insurance rather than PUD insurance.  Condo insurance  is  more  comprehensive in  order to  allow  catastrophic roof  repairs,  because  on  a  PUD, homeowners are  even responsible  for   their  roofs by  legal and  insurance definitions.

Condo insurance allows us to provide partial (excluding exterior areas such as balcony, doors, windows, etc.) coverage whereas PUD insurance puts ALL repair burdens on homeowners, including all exterior and interior features.  But condo insurance ($20,000- $25,000+/year) costs us far more than PUD insurance.  Homeowners would be at far greater financial risk, however, with PUD insurance only.  We  are  a  PUD,   but  we  possess Condo insurance  for  extra  protections  to the  homeowners.

“Residential” repairmen and services in the past have been substandard, because PROE HOA is technically a “Commercial property” (multi-unit property).  PROE HOA pays “Commercial rates” for everything; hence dues are set at $250.00, which is  an  excellent price  given the commercial rates.

The swimming pool is a “Commercial” property.  Health and safety risks require strict adherence to posted rules.  Paladin Security has been enforcing rules, so problems have abated this 2012 year.

The PROE HOA Board voted that dues will not increase for 2013, and  there  have  been no  dues  increases for  many years since  we  became self-managed  and the  President volunteers many  hours  per  week.

President Elia provided updates on two current lawsuits involving the PROE HOA:

1.  Nothing substantial has progressed with “construction defects” lawsuit.  The case is still in mediation; and somewhat inactive currently.  The developer has claimed no  funds beyond an  insurance  policy and possibly the  need for bankruptcy if  we  pursue beyond the  insurance.  Attorney Eugene Haydu could not locate information on the assets of developer, contrary to his previous assurances.   Therefore, the legal  case  is  at  a  standstill.   The roofs  continue  to  leak  every  single year, averaging about  3  leaks per  winter  but  we  are  repairing  the  roofs   as  they  leak.     One  homeowner from  the   meeting’s audience  commented  that tiles are falling off the roofs. 

2.  Yeager case:  There has been one hearing so far.  The Yeager case might be going to trial next year.  PROE HOA is suing for the complete recovery of past dues and legal fees.  The Yeager party owes approximately $30,000+ for services consumed, unfair  enrichment,  and unpaid dues.

President Elia reported that PROE HOA financial reserves are currently at $300,000.  There  is  no  dues  increase proposed   again for   2013  but  the  area  that MOST needs  more  financing  is  our  Reserves.    President Elia says it is possible that dues will increase eventually because  it has  been  many  years  with  no dues  increases,  although   inflation  has  never  stopped.

President Elia reported that automated gate repairs (since 2005) were   very  high  until this   year   which  for  the  FIRST time  have been nil due to converting that “rear” gate to exit only use this year.  The PROE HOA saved money by  this  decision  compared  to  last  year where gate  repairs were  needed nearly every  single  month.   That  money went  into  roof  repairs  instead.

5.  2013 Budget

There was a thorough gutter cleaning work-project done this year, so the PROE HOA will not incur a similar level of expenses for such maintenance in 2013.

President Elia stated that once the two lawsuits are resolved, this budget line item will be  greatly  reduced and these related expenses will go into the PROE HOA financial reserves which are  still  inadequately funded.

6.  Question/Answer/Comments Period                                

Paladin Security patrols PROE six times/day.

President Elia reported two or three cases of basement leaks in the past and  numerous roof  leaks.

Sewers:  President Elia has called city of Sacramento for emergency sewer work.  The city has been non-responsive and  stated  that  they  will  not  serve  gated  communities except  to  charge  us  steeply  every  month!   We  maintain  a  sewer cleaning  schedule  that  we directly pay  for.

A resident asked about mailings to PROE residents concerning “sewer insurance.”  Other members suggested that this was a scam and there was no need for such “sewer insurance.”

President Elia described past cases of sewer problems:  Example, plumber found “construction debris” stuck in sewer.  Also, there has been clogging due to the dumping of grease down drains. 

7.  General Membership Meeting adjourned at 6:00pm

Respectfully submitted,  Darrell Y. Hamamoto, Secretary