Indian Hills

Minutes of IHRA Annual Meeting of 2006

Annual Meeting Minutes

Minutes of the IHRA Annual Meeting
Held October 26, 2006 at Northwest church of the Nazarene

Meeting called to order at 7:00 p.m. by President Ed Geraghty, with 24 people attending. Secretary Jim Stevenson, Pool Chair Michelle DeVol, Tennis Chair John Hoffman, and Entrances Chair Belinda Bardall were absent.

First time attendees were introduced: Elizabeth Aino, 6042 Tulip Hill, a long-time resident but first-time attendee.

Vice President Tim Matyac read the minutes of last year’s annual meeting. The minutes approved as read.

TREASURER’S REPORT: Treasurer Bob Jacobsen reviewed the Balance Sheet and the Income & Expense Report for the fiscal year ended 9/30/06. He reported that as of that date, the Association had a total of $28,707.27 cash on hand -- $3609.93 in the Assoc. checking acct., $19,190.04 in the Assoc. Capital Improvements savings acct., $4450.49 in the Pool checking acct., and $1456.81in the Tennis checking acct. For the year’s operations, the Income & Expense report showed total income of $42,901.55, total expenses of $43,792.13, for an operating net loss of $890.58. After applying the non-cash expense of $4153.30 in depreciation, the Association had a net loss of $5043.88. Bob also reported that the yearly pool painting and a coupler for the pool pump and motor had been paid for from the Association checking account, not the pool account, and showed as “Maint. & Repair – IHRA” on the income & expense statement.

Betty Menear said she was on the Board in years past and had some old Board meeting minutes from 1990 in which then-president Hank Pollner said that annual fee income would never be used to cover pool expenses. Bob replied that it was our Code of Regulations which specify the use of annual fee income, and the Code does not say that. Betty said she understood that, but repeated that “we were told” something else and that to do it any differently now would be like “changing the United States Constitution.” Bob said our “constitution” is our Code & Covenants filed with the county recorder, not old meeting minutes. Ed Geraghty said this was an unrelated issue that could be discussed later, and asked that we return to the treasurer’s report.

Mary Jaquay asked Bob if he “could account for the loss” of $2900-and-something from the Capital Improvement Savings account. Bob said he didn’t have bank statements with him, and wasn’t sure how this $2900 figure was derived, but the decrease in balance was not a loss. Instead there had been a transfer of $5000* in August or September from savings to Association checking. This transfer was merely to keep a sufficient amount of cash in our main checking account. Mary said not showing this transfer was not “proper accounting”. Bob said a transfer of funds between accounts is not a standard entry on a balance sheet or income statement, but he could show it if desired.

There was a motion and second to accept the treasurer’s report. Report accepted with one “no” vote.

POOL REPORT: With Michelle DeVol absent, Bob J. gave the Pool report. He said the pool had income of $25,311.94, and expenses of $25,276.64. He said there were 58 pool memberships this year, up from 56 last year, and membership income was up $1500 due to a fee increase. Day Care income was about the same. Guest fees were up about $300 and Lessons fees were up $150. Private Party income was very low. On the expense side, payroll expenses were up about $1700. The pool season itself was a good one. Much-needed new pool furniture was delivered in late June/early July.

Brad Mitchell asked how much was paid to open the pool. He stated that neighbors used to the opening and closing of the pool. Bob said we paid $3500 to have the pool pumped out, cleaned and painted. Bob also stated that most of the work was still done by residents. Brad said that since most residents were not pool members, the pool committee should try some fundraisers to supplement their income. Bob said there had been many fundraisers in the past, but they had not generated much net income. Carol Cook said she recalled a door-to-door pool fundraising campaign in the late 1980’s to pay for big pool repair. Bob commented that was before the annual fee was adopted, the Association had no money, and contributions were voluntary.

Motion, second, and pool report was accepted.

TENNIS REPORT: Tennis Chair John Hoffman absent. Bob J. reported that the tennis income for the year was $380, expenses were $187.30, for net income of $192.70. There 19 household memberships, up 5 from last year. He said the courts were resurfaced last year and are in great condition. The six metal light poles for the court lights are corroding and need to be painted. The courts will be cleared of leaves soon. Report accepted.



* Bob was incorrect when he said $5000 was transferred. The amount transferred was $3000, from savings to checking, on 8/19/06. The net decrease in savings balance from that point to the end of the FY on 9/30/06 was $2991.74 – the $3000 transfer less $8.26 interest paid from 8/19 thru 9/30.




ENTRANCES REPORT: Belinda Bardall absent. Jack Conner reported that Belinda will still be involved but wishes to cut down on many maintenance tasks. Jack Conner and Ed Geraghty will take over for things like wall repairs, light bulb replacement, flags, wreaths, etc. Belinda will focus primarily on plantings and landscaping. The wall committees are still intact and will assist in planting watering, weeding, etc. Report accepted.

BLOCKWATCH REPORT: Gini Peloquin reported that it was a relatively uneventful year. In late summer, there were reports of residents paying in advance for curb number painting by leaving cash in envelopes on their doors, but then never having the job done even though the cash was taken. She asked everyone to try to pay some attention to their immediate areas, watch out for your neighbors property, keep garage doors down, doors & windows locked, and always report all incidents to both the police and to her. Gini also thanked Jack and Carol Conner for their “welcome wagon” efforts with new owners. Sue Romig said she really appreciated the annual update of the IH Directory, which is part of Jack’s welcome info packet. Report accepted.

ACTIVITIES REPORT: (None. We totally overlooked Kristin Zerkle’s report! Oops, and sorry!)

OLD BUSINESS: None.

NEW BUSINESS:

Proposed Amendment to Increase Fees. Ed said the Special Committee had recommended increasing the Annual Fee to $75 and the up-front Association Membership Fee to $250, the Executive Board had approved this recommendation, and a letter with the proposed changes and a proxy had been sent to all owners in September. He asked George Rittel, Chairman of the Special Committee, to summarize the issue. George explained that increasing costs, especially taxes, insurance and utilities, had brought the Association to the point of regularly spending more each year than was being taken in. Unless action was taken, our savings would likely dwindle. The current Annual Fee had been in place without increase since 1991, and the Membership Fee since 1985. George said the proposed $25 increase was modest, and that Sycamore Hills had recently increased their fee to $100.

Brad Mitchell asked why it was a $25 increase. He said $10 would be sufficient. Bob said amending our Code & Covenants wasn’t a small task and we didn’t want to force ourselves to do it frequently.


Ed said the Board was committed to maintaining the pool both now and into the future and believed it was strong asset for the entire community. He said the Board will support the pool financially when necessary, and that we’ve very clear about that, and nothing is being hidden from residents.

Brad asked about Assoc. utilities expense and was told it was all electricity, except for a small reimbursement to the pool account for water bill runoff charges for the parking lot. He asked about the Pool utilities expense and was told it was electricity, water, and phone. He asked if the pool paid for this or the Association. Bob said the pool paid for it.

Jack Conner suggested Brad consider joining the Board so as to have more opportunity to share his views. Brad replied he had already served on the Board and had done many things for the neighborhood, but now he was “retired”.

Ed closed the discussion and said if there were any owners in attendance who had not already voted by proxy, they could vote now using the special ballot provided. He also said previously cast votes by proxy could be changed now by using the ballot. Two owners turned in ballots.

Mary Cohee questioned whether the proxy attempted to give authority to cast votes for all residents, even those who did not vote at all. Bob said that a proxy turned in with name, address, and signature but without a vote For or Against would be counted as a vote “For”. Ed said we would count only those proxies actually turned in and that those who did not vote in person or by proxy would not be considered at all.

Betty Menear asked if passage required a simple majority. Bob said yes, a simple majority of 154 or more would do it. Betty said “it used to be a two-thirds majority.”

Mary Cohee suggested that we could consider “amending the proxies” now to reduce the proposed fee increases. Ed said that wouldn’t give us the necessary income and wouldn’t be fair to all those who had already turned in their proxies. Tim Matyac said that in this case the proxies operated as a form of absentee ballot, with the issue and the amounts already specified. Gini said people had advance notice and cast their votes on proposed fees of $75 and $250 and there should be no attempt to modify the proposal now.

Mary Cohee said she was bothered by some of the Board’s procedures and said that “our bylaws used to require Robert’s Rules of Order, but that wording has been taken out.”

The final tally was 181 votes “for”, and 39 “against”. The measure passed.

Proposed Budget for Fiscal Year 2006-2007. With the new fee structure approved, the proposed 06/07 budget estimated $53,125 income, $50,100 expenses, for a net budget surplus of $3025. Mary Jaquay moved that the budget be approved. There was a second. Sue Romig asked why budgeted expenses were up $6300 from actual. Lisa Schmidt asked why Common Grounds expense was budgeted at $3500. Bob said we were projecting small increases in a number of accounts such as Activities, Bank Fees, Directory, Misc. and Office, Postage, Printing, Taxes, Utilities, and Snow Removal. We also have already contracted with a tree service for a major trimming/pruning around the perimeter of the common grounds. This job will cost $2500. The proposed budget was approved.

Election of Officers. Nominating Committee Chairman Bob Jacobsen introduced the slate of candidates for officers and a trustee spot.. He announced the following: Ed Geraghty, President; Tim Matyac, Vice President; Bob Jacobsen, Treasurer; Jim Stevenson, Secretary; Tim Carroll, Asst. Secretary; and Rosemarie Lisko for a 5 year term as Trustee. Mary Jaquay was also on the ballot for Trustee. She stood and withdrew her name from consideration. She said she and her husband Fred had worked hard for many years on behalf of Indian Hills, and she didn’t like the way the Board treated her. She said had been insulted and abused, and said she hoped her successor would be treated with more respect than she received. Ed thanked her for her service, and asked for a motion to elect the unopposed slate. So moved, seconded, and approved. The slate was elected.

Betty Menear asked what the Board was going to do about 3 properties which are chronic appearance problems. Ed said we contact the owners first, then send follow up letters giving a reasonable time frame to clean up. George said it’s not easy to deal with problems like these, but we have had success, such as with the auto-detailer on Linworth Rd. Bob said we have the authority “restore the property to good order” and place a lien on the property for the cost of doing so. He said we’ve never gone that far yet, but have threatened to do so, with some success. Brad said that in one case, the resident’s children are encouraging her to sell and move to Florida with them. Mary Cohee said that in another case, the resident is in financial trouble and is desperate to sell. Mary urged restraint in this case. The Board will continue to closely monitor these chronic situations.

Bill Hamm, long-time resident of Stoney Creek Rd., jokingly said he was “dismayed” to learn that our southern-edge creek is now officially Kempton Run. He asked if this will necessitate a renaming of his street, or will the creek be renamed? He said it should be one way or the other, and wanted to know what the Board was going to do about it!

With no other items of business, the meeting adjourned at 8:50 p.m.


Submitted by Tim Matyac, Vice President (and fill-in Secretary)
Dated 10/30/06