Annual Meeting Minutes

Bay Crest Homeowner’s Association

299 Birchcrest Drive, Glenwood, MN 56334

UNOFFICIAL MINUTES OF THE

ANNUAL MEETING OF THE BAY CREST HOMEOWNER’S ASSOCIATION

GLENWOOD LUTHERAN CHURCH FELLOWSHIP HALL

Saturday, August 11, 2018

 

The meeting was called to order at 9:32 a.m. by Vice-President Mike Chevalier

The Pledge of Allegiance was recited.

President Chevalier called for a moment of silence in Memory of departed friends and neighbors: Jeannine Kalstrom, Bill Fellinger, and Chuck Whittemore.

Vice-President Chevalier introduced the following Board Members: David Baukol, Lynn Jordheim, Lyle Rambow, and Monte Struck

Chevalier called for the roll call quorum.  Bisel reported 33 lot owners in attendance, 12 proxies for a total of 45 eligible votes out of a possible 62 lot owners.

The Roll Call indicated the following Association Members and guests were present: David Baukol (2), Chet and Gaylyn Bisel, Mary Boyle, Al and Pat Braaten, Carole Chevalier (2), Carole Chevalier Trust, Mike and Katherine Chevalier, Virgil and Elaine Christianson, Margaret Claesen and Jim Schroder,  Pat Clarke, Jeff Colla and Barb Ohtto, Dick Cordes, Richard Dreher, Richard and Julie Hanson, Mark Hoplin, Rick Huckle, Terry Johnson, Lynn and Mary Jordheim, Tom Knoll, Larry and Jean Lang, Lyle Rambow(2), Jon and Helen Stafsholt (2), Jim Steinle, Monte and Tina Struck, Chuck and Patti Thompson, Terry and Dianne Thompson, Curt and Becky Vokaty, John Wigdahl, Pat Zaffke  

PROXIES included:  Sandy Fellinger, Jeff and Jeanne Hebeisen, Ray Krohn, Obenland/Roper, Karna Peters, Bob and Maggie Schroedl, Danny and Janet Shockley, Darnell Whittemore, Jack and Suzanne Wilson, Paul and Deb Wilson, Karen Wright, Wayne and Charlene Zimmerman.

President Chevalier announced that a quorum had been reached with 33 eligible lot owners registered in addition to 12 proxies.

A motion was made by Katherine Chevalier, seconded by Terry Johnson to approve the agenda as presented.  Unanimous consent.

Vice-President Chevalier announced that he had appointed Jon Stafsholt as the Parliamentarian.

A motion was made by Helen Stafsholt, seconded by Tom Knoll to approve the Minutes of the August 12, 2017 Annual Meeting as presented in Appendix A.  Unanimous consent.

 

TREASURER’S REPORT

Christianson presented the treasurer’s report as per the Appendix B written financial report and the FY18 Budget and Official Revenue and Expenses as well as the proposed FY19 Budget.  The June 30, 2018 Balance Report showed a year-end total of $81,337.80 in the checking and savings accounts.  $36,241.00 is invested in a CD at the Eagle Bank that is designated for the Road Reserve Fund and $6,200.00 is invested in a CD at the Eagle Bank that is designated for the Water and Sewer Reserve Fund.  The actual cash fund balance for Dues, User and Categorical Fund resources are $40,180. The total revenue for FY18 was $184,173 and total expense was $197,119.

He noted a $4,989 resident balance was due on June 30, 2018.  The process of filing a lien on three accounts has begun. He noted the fund balance in the Dues section decreased from $$32,969 to $16,923.  The severity of the winter required above budget expenditures to replace broken water and sewer lines and to thaw frozen lines.  The other balances were: User Fund: $16,521 and Special Categorical: $6,736.    

The Board elected to increase the Dues revenue by $5 per month for a total of $107.00 per month effective July 1, 2018.

Rick Huckle inquired about the limits of coverage on the E & O Board of Director’s Insurance. Christianson stated there was a $500,000 coverage limit.

    

COMMITTEE REPORTS

Pool Committee: Jonathon Mciver and Lyle Rambow presented a written report as per Appendix C.  Gaylyn Bisel reported the pool was continuing to lose water.  Larry Lang commented that a valve was not repaired this spring but would be on the list prior to the next spring opening.

Beach and Marina Committee:  Lyle Rambow presented a written report as per Appendix D.  He expressed appreciation to the volunteers who attempted to keep the beach clean in spite of the volume of weeds that collected on the shore.  He also expressed appreciation to the anonymous donor who paid for the swing.

Architectural Committee:  Mike Chevalier presented a written report as displayed in Appendix E.  He stated that 10 applications were received for various improvements that added greatly to the positive appearance of Baycrest.  He emphasized the need to complete the proper architectural application in a timely fashion to allow for committee review prior to Board consideration.  The application is available on the Baycrest Web Site as well as from Mike or Chet.

Beautification Committee: Helen Stafsholt reported on the Beautification Committee as per Appendix F.  She stated that Mary Boyle had resigned and Barb Flolo had moved out of Baycrest so additional volunteers are needed.  She expressed her appreciation for the volunteers who continue to strive to improve the grounds appearance.  They are continuing to work on the storage entry and the entrance sign projects and are always looking for more help.

Water and Sewer Committee:  Mike Chevalier presented the report as per Appendix G. He noted that 5,064,135 gallons were used in 2017 which is above the DNR annual water appropriation at 4.6 million gallons.  2,556,000 gallons were used in 2016.  The large increase was related to a broken water line that was undetected for several weeks.  Lift station pumps will continue to be replaced as needed.  Other goals to be achieved sometime in the future are installation of electrical generators at the water and sewer lift stations to operate during power outages, water pumping and distribution system in a Capital Needs Plan to address the major system component replacements, installation of underground water shutoffs for homes that do not have them currently, and correct an inoperable valve that would allow one well to serve the entire community. The very difficult winter caused a much larger capital expense to repair and replace broken lines. 

He commended Cliff Volkman who regularly reads the water meters and drives to Sauk Centre to deliver the test kits as required.  Even though there is increasing concern for water quality across the State and Country, Baycrest has no problem to date.  On Monday, the Department of Health will be conducting their Annual Inspection. 

He also noted the Wellhead Protection Plan has been approved by the State to ensure we continue to maintain a quality water system.   

Long Range Capital Improvement Committee:   Virgil Christianson presented the Long Range Capital Improvement Committee report as per Appendix H-1.  He noted there are many projects that will be a future cost to the association.  The Committee has organized these identified projects into high and medium priority.   He noted the high priority projects included water and sewer upgrades, road crack filling and repair of road depressions, electrical meter installation at four plex/157 Baycrest Road, removal and replanting trees, storage and marina improvements, and street light improvement.  The committee recommended continuing to support the funding of the special reserve fund for road overlay improvements and water and sewer improvements.  They also recommended additional assessments that would be needed to generate about $200,000 over the next few years. He presented a report that identified the completed projects from FY12 through FY18 and the planned projects for the next five years as per Appendix H-2.

He highlighted the larger items in the FY19 budget of $38,000.  $20,000 was set aside for road improvements, $5,000 for water and sewer improvements, $3,000 for insulating a sewer line, $5,000 for street light replacements, and $2,000 for tree removal.  Pat Clarke suggested that bituminous material be made available to fill the holes in the roads when needed.  Larry Lang expressed concern for improving the street lights.  Mike Chevalier shared three options for replacements of the current lights with lighter weight metal.  Al Braaten added the current construction is too much of load on the arms.  Lighter weight must be used.  He suggested cedar covering over the posts.  The Board agreed to take these matters under advisement. 

After additional discussion the road options, Rich Huckle made a motion, seconded by Curt Vokaty to approve the plan as presented.   

Safety Committee:  John Wigdahl provided a written report as per Appendix I.  He highlighted the organization of the committee and identified the volunteers who serve in various capacities to assist in making our community safe.  He stated that work continues on the possibility of CPR training, a new replacement first aid kit will be placed in the pool area, the Glenwood Fire Department visit was successful, and the committee will continue to work on possible revisions to the emergency preparedness plan.  He also stated that he developed a new map to facilitate location of streets and homes which will be of great assistance to the fire department.

CC & R’s Committee:  Lynn Jordheim reported the committee is working on a possible revision of the CC & R’s in preparation for voting at the 2019 Annual Meeting.  He commended Baycrest Homeowner’s Association for having a well-run organization.  He stated they had met several times with Attorney Michael Cass of Alexandria who is very knowledgeable about the operation of Homeowner Associations.  An informational meeting was held on July 7th conducted by Mike Cass.  Several decisions will need to be made in the future by the Committee, the Board, and the Membership.  Should BHOA be governed by MCIOA?  The MCIOA would give more power to the Board.  A draft of the changes will be made available to the membership well in advance of the Annual Meeting in August of 2019.  Approval would require a 75% approval of all lot owners of 75 of 62 which equals 47. 

He also reminded members that Baycrest does have a face book page.  BAYCRESTHOA

 

OLD BUSINESS: NONE

 

NEW BUSINESS

Nominating Committee: Jon Stafsholt reported the Nominating Committee is recommending Terry Thompson the three-year term position. Baukol requested nominations from the floor.  No additional nominations were provided.  Rick Huckle suggested there should be more than one candidate for the position.  Mike Chevalier called on Terry Thompson to introduce himself.  He stated they had purchased their property several years ago.  At the present time, they have a home on Moorhead, MN also.  He stated he graduated from Moorhead State University and the North Dakota State University with an Architectural Degree.  He recently retired from Kraus Anderson after working many years as a Project Manager.  A motion was made by Lynn Jordheim, seconded by Mark Hoplin to accept the report from the nominating committee and cast a unanimous ballot for the nominees.  Unanimous consent.  However, a challenge was made since the By-Laws call for a secret Ballot.  Vice-Chair Chevalier called for the ballots to be completed.  The tellers reported 36 votes for Terry Thompson who was elected as a new Board Member.  There was one spoiled ballot.

Retiring Board Member:  Chevalier expressed his appreciation to Lyle Rambow who has completed his term on the Board.

Road and Water and Sewer Assessments: The members discussed options for continuing the capital improvement assessments.  The CC & R’s require an annual review of these types of assessments.  After much discussion, Tom Knoll made a motion to assess each lot $250 for Roads and $150 for water and sewer, seconded by Dick Cordes.  Additional discussion followed on the intent of the assessments.  Lynn Jordheim made a motion to amend the motion to allow expenditures of the two reserve accounts when the operating budgets have expired, seconded by Virgil Christianson.  Tom Knoll offered to accept the amendment as a friendly addition to his motion.  Unanimous consent.    

Budget Approval:  Christianson reviewed the FY19 budget as presented.  Tom Knoll made a motion to approve the presented budget with the addition of the newly approved assessments, seconded by Rick Huckle (the Revenue Budget was revised to $193,968 and the Expenditure Budget was revised to $189,836).  Unanimous consent.

By-Law Revisions:  Christianson presented the proposed by-law revisions utilizing the red-line copy on the computer projection screen.  He stated the changes are large part include removing the declarant and allowing electronic communication for Board Meetings and notification of membership.  Rick Huckle stated that he would like to see Article III, Section 5 to allow proxies to be delivered electronically via a PDF document.  A motion was made by Rick Huckle, seconded by Helen Stafsholt to approve the by-laws changes with the changes as recommended.  Unanimous consent. 

DISCUSSION ITEMS

CC & R’s Potential Changes:  Mike Chevalier stated that the Committee would be working diligently over the next few months on potential changes to the CC & R’s.  He encouraged members to contact any committee member on suggestions for change.   Dick Cordes inquired why in the issue of fairness why the Baukol proposal was not on the agenda.  Chevalier stated the Old Business was removed by the proposer.  Jordheim stated with respect to the CC & R’s the Powers of the Declarant expired in 2006, the vote in 2017 was not a valid vote, and the Board does not have the authority to change the dues structure to benefit one lot owner.  Christianson stated that in his experience with HOA’s anytime exceptions are made to the Covenant, the By-Laws, and the Rules and Regulations it will cause problems in the future.  The process of changing the HOA documents needs to be adhered to.  If it is not, dissension among residents will take place. 

Land Use and Assessment Policies:  The two new policies were presented by Christianson as approved by the Board.  He stated the Assessment policy had been distributed to the members with the Annual Billing.  Most members have honored the new policy, but a few have not paid any amount this fiscal year to date.  They will be reminded to review the policy. 

A suggestion was made by Tina Struck to limiting the occupancy if rented.  This would require limiting it within reason.  For example, if renting a 3 bedroom, don't have 12 people living there.  https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gif

The Board will review this recommendation at the next meeting.

Tree Diseases:  Christianson presented a six slide power point outlining the two prevalent diseases in Baycrest.  1.   Bur Oak Blight-An inspection was made by Steve Haeckel of Hi-View Tree Service to confirm the existence and the recommended treatment program.  2.  Black Knot Disease:  Christianson commended Pat Clarke to providing leadership to removing several diseased trees to the burn pile.     

Adjournment: A motion was made by Al Braaten, seconded by Katherine Chevalier to adjourn the meeting at 12:05 p.m.  Unanimous consent.

 

 

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Virgil Christianson, Secretary/Treasurer