Chimney Ridge Townhome Assocication

Charter Ridge Homeowners Association Annual Meeting Minutes July 5, 2011 3:30 pm Unit #62, Charter Ridge

I. Call to Order, Attendance, Quorum

Dan Butt, vice-president, called the meeting to order at 3:30 p.m., July 5, 2011 in Charter Ridge Unit #62. A Quorum, according to the Association by-laws, consists of 25% representation of current owners as determined by actual attendance or proxy. Reid Patterson (via conference-call), Jan McDavid (via conference-call), Dan Butt, Gary Arnold, and Bill Davis (representing Robert Shaw), were present and Shannon Wilson and John Burrill were represented by proxy. Thus a quorum was determined. Margie Brody arrived at 4:00 p.m.

Also attending were Carol Cannon with Bliss Property Management (BPM) .

II. Approval of Minutes of Last Meeting

Motion: Reid Patterson made a motion to approve the minutes of the July 1, 2010 annual meeting. Gary Arnold seconded the motion which passed unanimously.

III. Manager’s Report and Current Financials 2011

A. 1. 2010-11 Maintenance and Repair Items - 1. Sewer pump replaced #60-62 (from Reserve) - $5010 2. Heat tape, electrical work – replace GFI receptacles $325 3. Roof repairs – leak maintenance, vent repairs during winter $1065 4. Irrigation repair, increase water pressure 5. Replace entry lights, damaged beyond repair due to County Road snowplow(?) hitting it $450 6. Extra snow removal – roof valleys and cornices, heavy equipment removal on driveway multiple times, remove snow covering gas meters, vent pipes

2. Future and Recommended Repair Items – heavy snow year caused more damage than usual 1. Paint and stain the decks, hand rails – to be done in September 2011 - $3000 2. Extensive tile roof repair – approximately 100 tiles need to be replaced and vents repaired or replaced – last year the snow covered the boiler vents so boilers went off – to receive bid from Turner Morris - $4000 3. Repair irrigation line to #22 – water meter goes through domestic use line $400 4. Extensive railing and fallen stone repair – due to snow damage 5. Fire Mitigation – met with County fire dept.– working on getting bids for their recommendations

B. A discussion regarding the fire mitigation was deferred to Old Business.

Dan Butt asked if there were any other maintenance issues.

1 Bill Davis, representing Unit #10 owner Robert Shaw, discussed two items: 1) Robert Shaw paid to have his own lift station pump replaced last year without realizing that maintaining the lift stations is an HOA responsibility. Dan Butt suggested that Bill Davis send a letter to the HOA seeking reimbursement for the pump.

2) Bill Davis also said that the sewer line from the house to the main sewer line froze where it connects to the main sewer line in the road. He had to hire a company (Snowbridge) multiple times to de-thaw the line. He feels the lines were not initially installed correctly. Davis believes the sewer line is too close to the surface under the driveway and that it is just a 2” pipe and should be bigger. According to Davis, to repair it correctly would consist of tearing up the asphalt and then installing a new larger pipe deeper under the driveway and road which would be expensive. Bill Davis did a quicker, less expensive fix and that was installing a drip system inside the house so that the water is periodically running and is less apt to freeze. There was a discussion that this has never happened to previous owners. Bill Davis felt it was because the house is rarely occupied. However, previous owners did not occupy the house regularly either. It is unclear what responsibility the HOA has for this situation, if any. C. D. 3. Current Financials

1. Financials as of May 31, 2011 - Operating Account = $ 6811 - Reserve Fund Money Market = $ 18,300 3. No unit is past due by more than one month.

4. Proposed 2011- 2012 Budget (October-September Fiscal Year) - Cable, trash, water, sewer, management fee rates all increased this year.

Since the fiscal year ends September 30, the expenses for the remainder of the year are estimated. With these estimates, dues would need to be increased by about $25 per owner.

Motion – Dan B. made a motion to adopt the operating budget as presented with a future dues increase to be expected. The increase will be determined when all the expenses are accounted for after the end of the fiscal year, but will be about $25 per owner per month. Jan M. seconded the motion. There was no further discussion and the budget was unanimously approved.

Dan B. discussed the Asset Replacement Reserve which was established in 2009. For the current fiscal year, it is expected that $6960 will be allocated to the Reserve Fund. The HOA hired Murray Bain last year, who sets up Reserve Study plans for HOA’s by determining what will need to be replaced in the future and how much it will cost. HOA’s typically do not fund the Reserve at 100%, but plan to use a combination of Reserve Funding and assessments when major items need to be replaced (i.e., lift station pumps, roof replacement, decking, stucco, etc.).

Dan B asked if the members present want to be more aggressive in replenishing the reserve. It was the opinion last year not to increase funding to the reserve (currently being funded at 42%) since the HOA just had a large assessment to fund the retaining wall. Dan said the roofs will be a very large item to be replaced and will likely require an assessment. Increasing reserve funding will not prevent assessments, but will mitigate the large assessments. All present agreed that more aggressive funding would be appropriate.

Dan B. proposed to increase reserve fund by 20% or about $10 per unit per month, and $16 for unit #10 per month. 2 Motion – Reid P. made a motion to increase the reserve funding by 20%. Jan M. seconded the motion. There was no further discussion and the budget was unanimously approved.

V. Old Business

Dan began a discussion regarding fire mitigation. Carol B. and Dan B. met with Jackie Pike, fire mitigation specialist with the Breckenridge Fire Dept to discuss Charter Ridge’s current position relative to fire danger. She felt Charter Ridge is in a positive position regarding fire danger due to its current roof (tile), siding (stucco), and relatively tree-free barrier. She made the following recommendations: trim pine trees 3-4 ft up from ground as added protection in case of ground fires, removing dead or sickly trees, remove or trim trees close to back of units (not Aspen trees which do not cause a fire danger), and thin Lodgepole pine trees to make a defensible space surrounding Charter Ridge. Carol B. had the lot lines marked and will work on getting bids from tree contractors with an itemized price list so Charter Ridge can determine how much fire mitigation to undertake relative to the costs.

VI. New Business

Margie B., the new owner of #42, asked all present general questions regarding Charter Ridge, including the history of the complex, lift station pump replacement, and security and low temperature alarms. It was recommended by the group for all owners to be aware of their lift station pumps and boilers because if they have not been replaced, they are 17-18 years old and will cycle-thru their life span. Bill D. who is also a builder, said that if owners use stainless steel boilers and parts that are less susceptible to oxygen corrosion their systems will last a lot longer. This is, however, more expensive.

Dan asked if there was any other new or old business. There was not.

E. IX Election of Board of Directors and Offices The new Board Members are: Dan Butt, President Reid Patterson, Vice-President Gary Arnold, Secretary Treasurer Jan McDavid, At-Large

IV. Adjournment

The meeting was adjourned at 5:00p.m. Respectfully Submitted by: Carol Cannon, Managing Agent Bliss Property Management, Inc.

Enclosed with 2011 Minutes : 2011 Agenda 2010 Minutes 2011-2012 Budget 2011 Financials Updated HOA Membership Roster