MERIDIAN VALLEY MAINTENANCE ASSOCIATION

MONTHLY BOARD MEETING MINUTES

March 9, 2011

 

CALLED TO ORDER BY PRESIDENT Bill McLaughlin at 7:05 p.m.

 

ATTENDANCE:  Bill McLaughlin, Jan Lewis, Mike Rucker, Frank Wisdom, Barb Farley, Brian Applebury, Bob Steiner, and Cheryl Havener       Absent:  Dale Mjelde

 

PREVIOUS MEETING MINUTES:  Approved as written

 

TREASURER’S REPORT:  Mike Rucker

  • 2011 Assessment Collection:  As of Monday the 7th, 409 properties are paid in full.  Four properties are unpaid for 2011 and one or more prior years.  Each of these is listed for sale and we should consider filing liens against them for 2010 and 2011 assessments and fees. Of the 13 remaining properties, verbal commitments for payment have been received from all but three.
  • Budget:  Provided copies of the budget vs. actuals through March 9th. 
  • IRS Mediation:  We were unsuccessful in reaching any compromise with the IRS examiners in the Fast Track Mediation session.  Their demands that, among other things, we “open all gates to vehicle and pedestrian traffic during the non-sleeping hours of 6am – 10pm, 7 days a week” and “the guard at the main gate cannot ask a non-member what is your business entering the association area” were unacceptable.  In the end, we decided that the expense of continuing the appeal process and the likelihood of repeating that expense in future years was not in the best interests of the association.  As a result, we agreed to revocation of our tax-exempt status as of December 1st, 2010.  We will remain tax exempt for all prior years.  Our effort will now be directed toward a review of our Investment Policy Guidelines and the timing of withdrawals from the Long-Range Plan to minimize our future tax liabilities.
  • Audit and Investment Committees:  A meeting was held on February 28th with George Hull, Dick Metz, Jim Schack, and Peg Steiner to begin review of our Investment Policy Guidelines and Long Range Plan withdrawals given that the association will no longer be tax exempt.  Ideas were exchanged and actions taken to gather additional data for the Long-Range Plan.  This process will continue and may result in recommendations for changes to both the Guidelines and Plan.      
  • Income Tax:  Our accounting firm expects to be finished with our tax return this week.  This will be our last year filing tax exempt.
  • Security Electronics:  A new computer was delivered to the Guardhouse to replace the previous computer that had a motherboard failure.  All the data was backed up, but the software that runs the database of homeowner's information was not available.  Work is continuing to recover that data.  Funds are budgeted from the Long-Range Plan to replace the 2-way radios used by the guards.  The current radios were purchased in 1998.  Their performance is significantly degraded and adds extra work for the guards when making their rounds in the community. 
  • Insurance:  Our insurance carrier agreed to add defense costs to the D&O liability policy at no cost.

 

COMMITTEE REPORTS:

FACILITIES:  Jan Lewis

  • Quality Fence Company came out and repaired/replaced a section of top rail on the east side of the property on the perimeter road.
  • InfoTech, Federal Way, did not charge for the analysis of the computer from the guardhouse – the mother board was fried.
  • At the request of a resident to address the trip hazard caused by the road lifting due to  tree roots, Jan has attempted to speak with the property owner (on vacation) and so will continue to do so.  The tree may need to be removed by the property owner, and some minor repairs to the road to resolve the issue.
  • PSE was contacted to replace a street light near Lot #175.
  • The street drains near Lot #365 and #612 have shifted.  Mike Rucker and Jan Lewis will drive around the community and check for more street/drain problems.  Jan will get bids.

 

SECURITY:  Dale Mjelde – abs. written report read

  • Gates posted open due to snow and freezing rain early in the month.
  • North exit gate blew a pump, was posted open until the new pump was installed.
  • Nick Sutton called to put together a price on the new 2-way radio system.

 

MVCC:  Brian Applebury

  • No issues at this time.

 

COMMON GROUNDS:  Barb Farley

  • Had a meeting with Trent Allen.  He is removing a lot of debris from the street.  Discussion was held, he should be only cleaning the street next to the common ground areas.  Individual homeowners should be cleaning in front of their homes and the street sweeper is used in the late fall to pick up leaves.
  • A lot of the plants are dead or are diseased in the common areas.  Discussion was held concerning re-landscaping some of these areas.  Will get estimates and will discuss again at the next meeting.
  • There is a stump in the common grounds area on 142nd Ave SE which needs to be removed.

 

ARCHITECTURAL:  Frank Wisdom/Barb Farley

  • Seventeen letters were mailed in February, with four so far in March.
  • At this time there are four approved roofing materials with samples in the hallway outside the office.  The list will also be on the website.
  • The fence issues for Lot #267 were discussed.  Bill McLaughlin will send a certified letter to the homeowner.
  • Have not heard from the attorney for Lot #298.  A letter will be sent from our attorney to the owner and renter.
  • Called Lot #164 concerning yard and home maintenance.  Will follow-up.

 

WEBSITE:  Robert Steiner

·         Posted the February meeting minutes to the website.

·         Updated the Architectural Committee Roster on the website.

 

PRESIDENT’S REPORT:  Bill McLaughlin

  • IRS Mediation held on February 17, 2011.  The standard for a homeowner’s association to qualify for exemption under IRC 501(C) (4) requires the association to operate for the benefit of the general public for the whole City of Kent.  MVMA does not operate this way; also the North and South gates would need to be left open for the general public to have access to our roads.  Our security at the front gate would not be able to limit access to the general public, in other words our security guards would operate like “Greeters” at Wal-Mart, just wave as the general public enters our community.  We would not agree to that.  Our new tax status as a “for Profit” Corporation would be retroactive to the start of “MVMA Tax Year” December 1, 2010.  All prior tax returns would be left as they were filed (Non-Profit 501c4).
  • Lot #2005 owner (Troop 480 Scoutmaster) has requested permission for “Beauty Bark and Compost” Fundraiser for the Boy Scouts, and “Scouting for Food” door hangers for the Cub Scouts.  Both events would occur in March 2011.  Discussion was held.  M/S/P for allowing the food drive, as long as the scouts return to pick up the food drive notices that have not been removed.  The Beauty Bark request was denied.
  • Lot #163 having problems getting neighbor Lot #164 to complete landscaping clean-up, trees need trimming to keep Lot #163 view corridor intact, Ivy overgrowing into Lot #163, flat room of Lot #164 home is full of moss.
  • Lot #298 letter from our attorney asking for clean-up of the property.
  • Lot #267 fence issue was discussed. A certified letter was sent by Frank Wisdom to the owner requiring removal of the fence that he recently install in his back yard without the prior approval of the Architectural Committee.  Another certified letter will be sent giving him 30 days for removal.
  • Discussed the need for updating our DORs, By-Laws, & Policies.  M/S/P to form a Committee to look into a complete “redo” of our By-Laws and Restrictive Covenants.  Tom Sharp has agreed to serve on the committee, along with myself, Mike Rucker, and Jan Lewis.  Bill Viall and Bob Kitto will also be asked to join the committee.

 

MEETING ADJOURNED:  8:45 p.m.

Minutes prepared by Cheryl Havener