MINUTES FOURTH WALNUT CREEK MUTUAL REGULAR MEETING OF THE BOARD OF DIRECTORS MONDAY, SEPTEMBER 17, 2012 AT 1:30 P.M. BOARD ROOM - GATEWAY President Cardinal called to order a regular meeting of the Board of Directors of Fourth Walnut Creek Mutual at 1:30 p.m. on Monday, September 17, 2012 in the Board Room at Gateway complex, 1001 Golden Rain Road, Walnut Creek, California. ROLL CALL: PRESENT: Don Cardinal President Karen Hoyt Vice President Pauline Kelzer Treasurer Penny Wade Secretary Sheila Peverill Director Attendance Representing Mutual Operations were Paul Donner, Director of Mutual Operations; Rich Perona, Landscape Manager; Bill Friesen, Building Maintenance Manager; and Dyann Paradise, Administrative Secretary. Mr. Cardinal welcomed the 10 residents in attendance. ANNOUNCEMENTS Mr. Cardinal explained that the agenda format was changed slightly for this meeting to allow staff to present their reports prior to Residents Forum to see if some of the resident concerns could be answered at the beginning of the meeting. Should the format not work well, the Board would resume the previous format. Announcements The Board is in progress formulating the 2013 budget. As soon as the Golden Rain Foundation Board finalizes its portion of the coupon, the Fourth Mutual Board can finalize the total coupon that includes the Mutual portion. APPROVAL OF MINUTES Ms. Wade moved to approve the minutes of the regular monthly board meeting of July 16, 2012 as written and reviewed. Ms. Hoyt seconded and the motion carried without dissent. Approval of Minutes Ms. Hoyt moved to approve the minutes of the Annual Membership Meeting of August 9, 2012 as written and reviewed. Ms. Wade seconded and the motion carried without dissent. Ms. Wade moved to approve the minutes of the Organizational Meeting of August 21, 2012 as written and reviewed. Ms. Hoyt seconded and the motion carried without dissent.
Regular Meeting of the Board -2- September 17, 2012 COMMITTEE REPORTS Landscape and Grounds Mr. Perona reported that the lawns will be fertilized in early October. Entry and tree maintenance is routine. An appeal has been submitted to the City of Walnut Creek regarding the removal of two evergreen pear trees in Entry 10 and 11. Re-landscaping of Entry 8 on Skycrest is underway. The MOD rehab crew is scheduled to complete smaller projects starting in mid-october. (A copy of Mr. Perona s report is attached.) Reports Landscape/ Grounds Report Ms. Kelzer asked if the mow crew could use a smaller mower than they currently use because the larger mow tends to damage the lawn. Mr. Perona will ask the crew to use the smaller mowers. Ms. Peverill reported that there are several burn patches in the turf in Entry 8. Mr. Perona explained that there was a malfunctioning irrigation valve that has since been repaired. The area should revive soon. Ms. Peverill also reported that the new sod area is squishy. Mr. Perona explained that in order for the sod to root itself properly, it is important to flood the area following installation of the sod. Now that the sod is established, Mr. Perona will cut back on the irrigation in that area. Dave Boesch reported the bank along the creek in Entry A is eroding and there are several mole holes. Mr. Perona will check into the matter. He reminded residents to report rodent activity to the Work Order Desk at MOD immediately and not wait for a board meeting. Ms. Hoyt reported that there is a piece of rebar in the pathway near the rear of 2109 Skycrest that may represent a hazard and should be removed. Mr. Perona will check the area. The Landscape is reviewing all private gardens to determine if the owners are keeping up with the maintenance. Mr. Cardinal reminded residents that all private gardens require approval of the prior to planting. Sixteen resident households submitted a petition to the Board regarding the rehabilitation in Entry 8 on Skycrest. The residents asked that Chinese pistache trees should be planted instead of redwood trees. Ms. Peverill commented that the roots of redwoods are invasive, they require too much water, they are difficult trees to remove if required, and they are messy. She stated a different species should be planted in the area. Mr. Perona commented that he had presented the landscape plan to the Board in May. Ms. Kelzer stated that what the Board approved in May did not specify the trees. She asked that the Board consider the residents concerns regarding
Regular Meeting of the Board -3- September 17, 2012 the redwood trees. Mr. Donner commented that he and Mr. Perona, a certified horticulturalist, believe that the redwoods are an appropriate species for the area. Ms. Hoyt moved to proceed with the landscape plan for Entry 8 on Skycrest as submitted in the contract. Ms. Wade seconded. Ms. Peverill commented that the residents in Entry 8 were never consulted for their opinions on the planting plan, especially the planting of pine trees. Some people are allergic to pine trees. Ms. Kelzer commented that in the past the Landscape and staff have always consulted with residents regarding large projects in the entry. She hopes that this procedure would be followed in the future. Additionally, the agenda should allow resident forum comments prior to committee reports. At conclusion of the comments, the motion carried by majority. (Ayes: Hoyt, Wade, Cardinal Nays: Kelzer, Peverill) Building Maintenance Mr. Friesen submitted two proposals for concrete repairs at the front entry at 1817 Skycrest #6. Following review and discussion, Ms. Hoyt moved to award a contract per the proposal from Toupin Construction in the amount of $875. Ms. Wade seconded and motion carried without dissent. Approval to Proceed With Landscape Plan for Entry 8 Building Maintenance Report Mr. Friesen submitted two proposals for the rear patio replacement at 2125 Skycrest #6. Following review and discussion, Ms. Wade moved to award a contract per the proposal from Toupin Construction with the caveat that if the contractor uses the MOD concrete disposal bin the cost will be $5,490; if not able to use the MOD concrete disposal bin, the cost will be $5,808. Ms. Hoyt seconded and the motion carried without dissent. 1940 Skycrest security lights are on order and the last pagoda change out will be completed in the next few weeks. 2137 Skycrest Per the entry carpet damaged due to termite treatment drilling, Mr. Friesen is negotiating with the termite company for compensation to the unit owner. Ms. Kelzer commented that she is not in favor of compensating owners for carpet that was placed on concrete components as an alteration and especially does not believe the Mutual is responsible for any compensation to the owner. Most of the carpets are old and could be easily replaced. She would suggest that the termite company should simply restore the area to the pre-treatment condition. Mr. Friesen will follow up. 2100 Skycrest - still awaiting a starting date from State Roofing Company. Ms. Kelzer commented that she is very concerned that State Roofing is not following the timeline in its own contract and that inclement weather may
Regular Meeting of the Board -4- September 17, 2012 interfere with the roofing project. There are other confusing statements in the contract that need to be clarified, such as signature dates and specification of the contract with Fourth Mutual rather than the reference to Project 19. Mr. Friesen will contact State Roofing to secure a start date and clarify the discrepancies. 2100 Skycrest #12 the vent above the stove is not venting properly; Mr. Friesen will instruct the roofing crew to check into this problem while they are installing the new roof. Ms. Peverill reported that the white arrows that point toward the buildings need to be replaced. Mr. Friesen took note of the problem. Ms. Hoyt reported the railings along the sidewalks in Entries 3 and 7, and along Entries 9 and 10, which may be along the Golden Rain Foundation property, may pose a potential safety hazard because they run along a cliff. Ms. Hoyt will submit photos of the areas in question for Board review and further research. Ms. Hoyt reported the lights in Entry 8 are of the old style pagoda and need to be replaced with the new style lights. Two additional lights need to be installed in the area where it is currently dark. Since the area is currently under construction, Ms. Hoyt moved to replace the old style pagoda lights with the new style more efficient lights at a cost of $1,450 and install two additional new style lights in Entry 8 as needed at a cost of $700 (a reserve expense). Ms. Wade seconded and the motion carried without dissent. Alterations and Architectural Control /Compliance No alteration applications have been signed this month. The boxes in the carport at 1201 Skycrest #4 have been removed. The carport in Entry 8 that has had an excessive amount of clutter is under control. The clutter on the balcony at 1901 Skycrest #4 is much improved. Ms. Peverill reported a resident in Entry 3 on Skycrest is storing boxes and garbage outside their door and not picking it up. Mr. Cardinal agreed to check into this matter. Emergency Preparedness Ms. Peverill reported that Sheila Gorsuch has a supply of the small red emergency bags. Steve Adza reported a Red Cross drill is scheduled for October 17. A valley-wide CERT drill was rescheduled for February, 2013. A ham radio class is scheduled for January, 2013. The Saturday morning FRS check-ins are averaging 30 call-ins a week. Ms. Peverill reported that 20 people have signed up for the First Aid class in September. Alterations/ACC and Compliance EPC
Regular Meeting of the Board -5- September 17, 2012 Communications Carl Brown reported the website data has been brought current. He would like to post information about entry coordinators if he is given that data. Mr. Brown stated he would like to research WiFi options for Fourth Mutual members. The Board agreed to allow him to perform the research as an investigative task but he is not to act as an agent of the Board. Communications Ms. Wade reported that the Annual Dinner following the Annual Membership Meeting was well-attended and went smoothly. Policy The next meeting is scheduled for October 9. The will review new member handbooks of other Mutuals to determine if such a format would be beneficial to Fourth Mutual. The will also continue its review of Fourth Mutual s existing policies. Fiscal The Board reviewed the draft 2013 budget as presented by staff. It appears that the only increase will be in the Golden Rain Foundation portion of the coupon. The GRF Board will be voting on its budget this month. Ms. Peverill opined that the coupon should not be raised at all, including the GRF portion. She also requested that the Mutual clean rain gutters twice a year instead of once annually. Ms. Kelzer stated that monies have been set aside in the proposed 2013 budget for twice a year cleaning of those rain gutters in high risk areas, such as under overhanging trees. Additional cleaning as needed in a special area would be on a work order basis. Long Range Planning (LRP) - Ms. Hoyt announced that she has placed the committee on a hiatus for now and will report back to the Board when it is reactivated. Policy Fiscal Long Range Planning RESIDENTS FORUM Dave Boesch reported that commercial vehicles had been parked in Entry A for at least two weeks and are now parked on Tice Creek Drive. Mr. Cardinal stated he would contact Securitas to tag the vehicles. Residents Forum Lefty Cone recommended that the Board consider installing solar panels on the building roofs in Fourth Mutual to save on PG&E expenses. Mr. Cardinal explained that all the residents in a building could agree to install solar panels on their own building at their cost and within the requirements of architectural control. It is unlikely that the Mutual or the Golden Rain Trust would install solar panels, as it takes many years to recover the investment costs in relation to the savings in energy costs. When Mr. Cone asked about the costs of running the street lighting throughout Rossmoor, Ms. Kelzer reported that the Alternative Energy submitted a
Regular Meeting of the Board -6- September 17, 2012 report to the Golden Rain Board of Directors a few years ago and street lighting costs were included in the report. A copy of the report could be obtained in the GRF Office or online. Sara Seltzer highly recommended that the Board return to the former agenda format for the monthly board meetings to allow Residents Forum early in the meeting. Ms. Seltzer also asked for clarification of the landscape contract that was approved for Entry 8. Mr. Cardinal explained that the Board approved the contract in a previous board meeting. OFFICERS REPORT The President and Vice President had nothing further to report. Treasurer Kelzer reported that all financial matters related to the Annual Meeting have been closed and all invoices were paid. She also reported that there is currently one foreclosure in progress, but since there were no buyers for the foreclosed property there will be another auction at the court house on September 25, 2012. There are also four delinquencies, due mostly to members paying their coupon late. Officers Report OLD BUSINESS None. NEW BUSINESS The Board reviewed the proposed insurance amendment to the CC&Rs. Ms. Peverill moved to approve sending the proposed insurance amendment to the membership for approval. Ms. Hoyt seconded and the motion carried without dissent. Old Business New Business MEETING ANNOUNCEMENT Next regular board meeting Monday, October 15, 2012 at 1:30 p.m. in the Board Room in Gateway. Meeting Announcement ADJOURNMENT Having no further business, the meeting adjourned at 3:40 p.m. Adjournment /s/ Penny Wade, Secretary Fourth Walnut Creek Mutual