COTTONWOOD PALO VERDE AT SUN LAKES BOARD OF DIRECTORS MEETING MINUTES June 30, 2010
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1 COTTONWOOD PALO VERDE AT SUN LAKES BOARD OF DIRECTORS MEETING MINUTES June 30, 2010 Directors present: Gloria Combs, Rich Featherstone, Richard Hawkes, Paul Graebke, Nancy Pannebecker, Mel Rasmussen and Kathy Skrei Also present: Steve Nolan, General Manager President Nancy Pannebecker called the meeting to order at 3:04 p.m. in the Phoenix Room. She stated that prior to this meeting there was a wonderful presentation by the interior designer for the CW Ballroom design. Richard Hawkes made a motion, seconded by Rich Featherstone, to approve the May 20, 2010 Bylaws Informational Meeting Minutes. Motion carried unanimously. Richard Hawkes made a motion, seconded by Kathy Skrei, to approve the May 26, 2010 Board Meeting Minutes. Motion carried unanimously. PRESIDENT S MESSAGE: Nancy Pannebecker thanked the community, Election Committee, Administration staff for recent Bylaws vote. It was an overwhelming approval by the homeowners and it is much appreciated. She stated that the association has multiple projects happening: finishing the renovations; building of the PV storage area; patio surfacing in the front of PV; ballroom will be redone with the anticipated finish date of September 1, 2010; front entrance to PV; racquetball viewing area, currently being delayed by the County; plans and estimates for Pickleball courts and planning has been initiated for the replacement of the Administration Building with an anticipated vote to the homeowners in the fall. Paul Graebke just before this meeting told Nancy that the Certificate of Occupancy for CW is hoped for in the next couple of weeks. Actual opening is has not yet been determined. TREASURER'S REPORT Rich Featherstone gave the May 31, 2010 un-audited financial report which is available in He also stated that a limited wage increase for employees has been recommended to Steve Nolan. 1
2 COMMITTEE REPORTS: Architectural Compliance Committee: Sheldon Biales reported that this committee processed 54 permits and none denied during the month of June with 30 for follow-up and a total of 61 for ongoing follow-up. This committee has one recommendation on today s agenda, for the Board to approve changes to ACC Guideline #25 Rubbish and Debris Containers. Audit & Finance Committee: Rich Featherstone reported on behalf of Fred Haubold that this committee had no quorum for their meeting of June 8, This committee has no recommendations for the Board at this time. Next meeting is July 13. Complete minutes of this committee s meetings are available for viewing at Communications Committee: Julie Mooney reported that this committee met on June 2, Next meeting is July 7. Ms. Mooney thanked management for their weekly In The Know communication. This committee has no recommendations for the Board at this time. Complete minutes of this committee s meetings are available for viewing at Election Committee: Woody Neiman reported on behalf of Jerry House that this committee met on June 10. It was decided to not have a meeting in July due to lack of activity. Next meeting is Thursday, August 5. Their meetings have been changed to the first Thursday of each month to enable them to get information to the Board sooner. This committee has no recommendations for the Board at this time. Complete Minutes of this committee s meetings are available for viewing at Facilities & Grounds Committee: Tom Tagatz reported on behalf of Terry Hamper that this committee met on June 1, Next meeting is Tuesday, July 6 to finalize the 5-Year Plan. Complete minutes of this committee s meetings are available for viewing at Food & Beverage Committee: Ethel Wagner reported on behalf of Dick Nelsen that this committee met on June 3, 2010 and had a tour of the CW renovations. This committee has one recommendation to the Board to proceed with the PV mural. Mural to be completed by John Lefebvre at no charge and material costs paid for by donations generated by F&B Committee. Meeting has been changed to the first Thursday of the month. Next meeting is July 1. Complete minutes of this committee s meetings are available for viewing at 2
3 Golf Committee: Dick Johnson reported on behalf of Bob Keltz on their meeting of June 3, This committee has no recommendations for the Board at this time. Complete minutes of this committee s meetings are available for viewing at Nancy Pannebecker asked if the 5-Year Plan for golf is part of the whole 5-Year Plan. Dick Johnson responded that it is. Recreation Committee: Gary Bross reported that this committee met on June 7, They discussed the temporary storage area at PV. This committee has no recommendations for the Board at this time. Complete minutes of this committee s meetings are available for viewing at Safety, Security & Access Committee: Al Cote reported that this committee is working on speeding problem. Next meeting will be July 6. This committee has no recommendations for the Board at this time. Complete minutes of this committee s meetings are available for viewing at Clubhouse Renovation: Milt Smith reported that they did not receive the Certificate of Occupancy due to stop of work issues. Now they are moving ahead and July 9 th is the Certificate of Occupancy target date. Richard Hawkes asked about the open house. Steve Nolan responded that you can have an open house tour as long as you are not serving and food out in the open. The date will be discussed at the Food & Beverage meeting. It would be a management decision when it opens. Mel Rasmussen asked if the C of O would include the other building (old Café). Milt Smith responded that it would. Task Force for Monuments & Entrances: Trish Schneider reported they are proceeding with the monument on the corner of Riggs and Alma School which is currently in the permit process. METF will be presenting recommendations to the Board at the July meeting. Nancy Pannebecker asked if they plan on getting credit from Bill Thompson for the signs that are being done by METF. Paul Greabke responded yes, but it will be a small amount and the electricity will already be there for METF signs. George Thomas asked if the Robson sign on the vacant lot on Riggs and E.J. Robson Blvd. could be removed so that it does not obstruct the view of our new entry sign. Steve Nolan responded that he would ask. Ethel Wagner asked if the planters in that area will be replanted. Trish Schneider responded that they would. MANAGEMENT REPORT: Steve Nolan reported: The Cottonwood Renovation project is moving right along and progress can be seen daily. The Facilities Maintenance department has: fixed and replaced a water line break at the kid s pool; painted the pump room exterior and interior at Palo Verde Pool; enclosed the ramada at Palo Verde that is providing F&B with a temporary equipment storage area; scraped and textured North wall of CW main pool; rebuilt 3 motors with seals for the pools and completed the stone work on Bridge at hole # 16 and hole #18 at Cottonwood. The lake levels will be returned to normal by the weekend. Jim Miller and Staff installed in one day, the new wood dance floor in the new Cottonwood Bar and Grill. Special thanks to Jim Miller. The floor looks great. He reminded homeowners to be sure if they have not already done so, to register to receive the Tuesday eletter In The Know. He wished everyone a happy and safe 4 th of July. DIRECTORS COMMENTS: 3
4 Richard Hawkes: None. Kathy Skrei: None. Nancy Pannebecker: stated that the meeting is being recorded for accuracy of minutes. Paul Graebke: Thanked homeowners for their approval of the vote for the Bylaws changes. Richard Featherstone: stated that those who were unable to attend the Taste of Palo Verde missed a great event. Gloria Combs: stated that she is looking forward to working on the new Administration Building. She is looking forward to the grand opening of CW. Mel Rasmussen: thanked Milt Smith, Mike Garver, Paul Graebke, and Bob Spruiell for their time and effort on the renovation project. CAPITAL RESERVE REPLACEMENT FUND REQUESTS: Rich Featherstone made a motion, seconded by Richard Hawkes, to approve costs for ballroom upgrades at a cost NTE $149, (includes tax & 12% contingency).three bids were submitted. The committee selected the design package by Christa Lee Décor. There was discussion initiated by Kathy Skrei, who announced that she did not have Christa initially bid on the painting which was thought would be done in-house. Management decided it could not be done in-house at this time. She stated that an additional $20, would be needed for the painting. There was further discussion. It was stated that this project will encompass expenditures from Capital Reserve, Capital Improvement, Special Assessment and Operations. Motion was not carried. There was further discussion if the additional $20, would cover the expenses. Richard Hawkes made a motion, seconded by Kathy Skrei, to approve to change the NTE costs for ballroom upgrades NTE $180, Motion carried unanimously that this item was approved as amended. Rich Featherstone stated that he considers the ballroom to be one of our biggest capital assets voiced his approval of this project. Rich Featherstone made a motion, seconded by Kathy Skrei to approve the costs for the ballroom upgrades. Motion carried unanimously. Paul Graebke made a motion, seconded by Gloria Combs, to approve removal and replacement of glass in Cottonwood Bar and Grill with Low E Glass and Replacement of the pair of storefront doors. Steve Nolan stated for the record that Blazing Glazing did not win the bid. There was discussion regarding management s comfort with the low bid. Jim Miller stated that he was. Motion carried unanimously. PV GATE RESERVE FUND: None. CAPITAL IMPROVEMENT FUND REQUESTS: Paul Graebke made a motion, seconded by Mel Rasmussen, to approve recommendation from Management to purchase an additional facilities maintenance utility vehicle. Management recommended the purchase of a used cart from A-1 at a NTE cost of $3, Motion carried unanimously. SPECIAL ASSESSMENT REQUESTS: Richard Hawkes made a motion, seconded by Kathy Skrei, to approve CO #46 New four compartment serving table for the food serving area at the new CW multi-purpose rooms. NTE $3, Motion carried unanimously. Paul Graebke made a motion, seconded by Mel Rasmussen to approve CO #86 Sail system for CW that has been redesigned to include twenty-four smaller sails of various patterns and a different system of variable color lighting to illuminate the sails. The cost of the original design was $12, The cost of the new design is $38, The net increase to the contract is $26, plus the MH mark-up for a total change order cost 4
5 of NTE $29, There was discussion. Motion carried unanimously. Paul Graebke made a motion, seconded by Gloria Combs to approve CO #87 Provide and install combination stemware holders (racks) and bottle display shelves at CW NTE $6, Motion carried unanimously. Mel Rasmussen made a motion, seconded by Paul Graebke, to approve CO #90 The lower section of racetrack truss at CW had to be narrowed and lowered to suit new stemware hangers and bottle display at a cost NTE $2, Motion carried unanimously. Richard Hawkes made a motion, seconded by Gloria Combs, to approve CW Grill dance floor at a cost NTE $6, (Motion carried unanimously. Kathy Skrei made a motion, seconded by Paul Graebke, to approve the purchase of fifteen (15) tables that will go with the fifteen booths for CW at a cost NTE $4, There was discussion. Motion carried unanimously. Richard Hawkes made a motion, seconded by Mel Rasmussen, to approve the purchase of CW bar under-bar (customer side) lighting at a cost NTE $3, Motion carried unanimously. Paul Graebke made a motion, seconded by Mel Rasmussen, to approve replacement of the Palo Verde Kitchen Air-Conditioning Unit. Win Reserve # , TBR Management recommended bid from Rainforest at a cost of $6, plus a 12% contingency for a total of $ $7, There was much discussion. Motion carried unanimously. At this time Nancy Pannebecker added an item to the agenda for the approval the purchase of facing panels for the CW Bar at a cost NTE $3, which is critical to getting CW open and we hope to have delivery in a week. Richard Hawkes made a motion, seconded by Gloria Combs to approve the purchase of facing panels for the CW Bar at a cost NTE $3, Motion carried unanimously. OLD BUSINESS: Rich Featherstone made a motion, seconded by Paul Graebke, to approve recommendation from the Architectural Compliance Committee to revise ACC Guideline # 25 (Rubbish and Debris Containers). Motion carried unanimously. NEW BUSINESS: Paul Graebke made a motion, seconded by Kathy Skrei, to approve revisions to all Board Policies requiring changing of the name Resource Center to Homeowner Services (Index, 4-14, 8-01, 8-02A, 8-03, 8-06, 8-08, 8-13, 8-14, 9-04, 9-06, 11-02, and 11-04). There was discussion. Motion carried unanimously. Paul Graebke made a motion, seconded by Kathy Skrei to approve recommendation from Food and Beverage Committee to proceed with the PV mural. Mural to be completed by John Lefebvre at no charge and material costs paid for by donations generated by F&B Committee. There was much discussion. Motion carried. Richard Featherstone opposed. Next item on the agenda was the Board acceptance of the 2009 Annual Audit. At this time, Rich Featherstone introduced Mike Garver. Mike Garver gave a short synopsis of what the auditors provided regarding the 2009 Annual Audit and the adjustment that were made. Three major adjustments affected the outcome: $22,300 loss on equipment when the boilers in the main pool broke before their time; $24,000 loss on labor vacation accruals; and an increase in our allowance for doubtful accounts from $10,000 up to $20,000. The surplus of $29, will be transferred to the Capital Reserve upon approval of the audited financial from the Board. Rich Featherstone stated that a copy was submitted to the A& F Committee s CPA, Dick Myren and Mr. Myren had no opposition with the findings. It was stated that upon approval, the final corrected 2009 audit would be provided at 5
6 Richard Hawkes made a motion, seconded by Rich Featherstone, for the Board to accept the 2009 Annual Audit. Motion carried unanimously. At this time, Nancy Pannebecker added an item to the agenda for the Board to approve the transfer of the surplus of the 2009 Annual Audit of $21, to the Capital Reserve Replacement Fund. Rich Featherstone made a motion, seconded by Mel Rasmussen to approve the transfer the surplus from the 2009 Annual Audit to the Capital Reserve Replacement Fund. Motion carried unanimously. Upon recommendation from Mike Garver, Nancy Pannebecker added an item to the agenda for the Board to approve the transfer of the 2009 surplus from the PV Gate operations Fund to the PV Gate Reserve Fund. It was asked at this time by Rich Featherstone for Mike Garver to provide Beth with the amount to be documented in these minutes. Richard Hawkes made a motion, seconded by Paul Graebke to the transfer of the 2009 surplus of $16, from the PV Gate operations Fund to the PV Gate Reserve Fund. Motion carried unanimously. FIRST READINGS: NONE HOMEOWNER COMMENTS: Ron Schebor Explained home on New Town that has been under renovation since September of 2009 and causing lots of mess. After much discussion, Steve Nolan will contact the homeowner directly to get the area cleaned up. Melaine Rasmussen Asked about the status of the cellular tower. Mike Garver explained working with our attorneys on the contract it was agreed by AT&T that they would absorb the cost and pay for the increase in taxes if the property were ever rezoned from agricultural to commercial. The contract has been sent to AT&T. AT&T is currently doing testing. Joe Bland asked if we are still in the black with the Special Assessment. Rich Featherstone stated thus far, yes. There was discussion about the foreclosures. Mike Garver responded that everything will be collected by January of 2011 other than the hardship cases of which they have collected three. Al Cote asked if the Board has to approve anything relative to changing of the Resource Center to Homeowner Services now that we are changing the signs outside. The Board approve a list of names sometime ago. The meeting adjourned at 4:36 p.m. Respectfully submitted, Richard Hawkes, Secretary 6
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