Minutes of the Annual Meeting
Mayfair of McLean Homeowners Association
December 7, 2013
Agenda
• I Review of 2013 Activity
• II Review of 2013 Financial Results
• III Discussion of Reserve Analysis
• IV Budget for 2014
• V State of Reserves 2013-2014
• VI Pruning Budget
• VII Vote on Amended By-Laws
• VIII Security
• IX Election of Directors
Minutes
The meeting was called to order at 10:05am by Association President Bruce Louiselle. The following homeowners were present: Barbara Cosgriff, Harold Damelin, George Evanko, John and Hazel Hayward, Rick Jenson, Russel and Bethany Jones, John Kresse, Bruce Louiselle, Paul Mallarkey, Terry Marlow, Jon Roop, Joanne Savarese, Scott Sirlin, Cheri Taylor, Denise Waldrop and Jeff Levin, Julie and Larry Warren, and Judy Williams. Proxy statements were presented for Mark and Dorothy Friedlander, Luis and Marta Guinot, Maria Kazanowska and Michael Martus, Carol King, and Jack and Dorothy Goldstein.
Review of 2013 Activity
President Louiselle reviewed the 2013 activities of the Association:
• A Completion of drainage project behind 2053
• B Power washing and repainting of curbs
• C Painting and replacing lenses of street lamps
• D Special Assessment
• Completion of Sidewalk repair
Review of 2013 Financial Results
The president ten presented the financial results for 2013:
Discussion of Reserve Analysis
Next, the President described how the Reserve analysis is constructed, and presented the current spreadsheet:
• The creation of a Reserve Analysis is a three-step process.
– First determine the items that will be funded by Reserves
• Street resurfacing
• Brick entrance repair
• Streetlight repair and replacement
• Etc.
– Second determine the base year cost of those items
• Determine base year cost of each item
• Base year in Mayfair Reserve study is 2010
• e.g. Cost of street resurfacing estimated at $43,470
• Determine appropriate inflation rate-2.5%
• Determine year(s) when items are to occur
• e.g. Street resurfacing to occur next in 2020
– Third determine the required funding over the study period
• Determine the required funding over the study period
• The study period should be 15-25 years
• Original period for Mayfair study was 22 years
• Currently, study period has 18 years remaining-through 2031
• Determine and sum each year’s expenditures of all items at the inflated values
• e.g. If the cost of an item in 2010 is $43,470 and inflation is 2.5% per year, the cost in 2020 would be $54,288
• End result is the year-by-year required funding
• What annual contribution needs to be made to the Reserve fund such that the cash Reserves are sufficient to meet reserve expenditures over the study period?
• Start with existing cash balance (2010-$43,786)
• Determine fixed annual contribution such that after annual expenditures the cash balance is not negative during study period
• Compare that amount to what is provided in the current annual budget. If it greater than that amount, an increase in the Annual Assessment would be necessary
• There are three critical assumptions embodied in the Reserve Analysis:
• 1. The estimated inflated costs are accurate
• 2. The Annual Assessment remains constant throughout the study period
• 3. The budgeted expenses remain constant throughout the study period
Barbara Cosgriff offered to keep the reserve analysis up to date, and her offer was accepted.
Budget for 2014
The proposed Association budget, as recommended by the Board, was then presented for discussion and approval:
After brief discussion, approval of the 2014 budget was moved (Bruce Louiselle), Seconded (Russel Jones), and carried by voice vote without dissent.
Landscaping Report
Landscaping Representative Judy Williams presented a report on developments in landscaping projects:
· The special assessment projects contracted for with Area Landscaping will be done in early 2014
· Tree pruning has become a necessity due to a wet spring growth spurt of our mature trees in the common areas. As authorized in a resolution from the 2012 annual meeting of the Association, and approved by the Board, pruning has recently been done near seven homes where trees were brushing against the houses. There are sufficient funds in the approved 2013 budget to cover this cost.
· Tree pruning anticipated in 2014 can be accommodated within the approved 2014 budget. In preparation for the 2015 budget, a study of the longer term needs for tree pruning and care will be undertaken.
Vote to Amend Bylaws
At the request of the Board, its volunteer legal advisors updated the Association’s bylaws to conform to the Virginia Property Owners’ Association Act. Having been distributed in advance of this meeting, the revised bylaws were presented for approval by the Board.
Approval of the revised bylaws was moved (Bruce Louiselle), seconded (Barbara Cosgriff), and carried by voice vote without dissent.
In discussion it was noted that a schedule of fees for copying documents requested by a homeowner needs to be developed by the Board.
The updated bylaws will be posted on the Association web site, replacing the earlier version.
Security Discussion
Stimulated by a recent break-in occurrence, a general discussion on security in the neighborhood was held. It was the consensus that security is an individual homeowner responsibility, and that no common approach such as surveillance cameras is appropriate. Each homeowner was encouraged to lock their back patio gates and to set their alarm systems every time they leave their homes, and overnight.
Election of Directors
Two vacancies on the Board at the end of full terms occur at this time. Three homeowners were nominated as possible replacements for three-year terms:
Ø Cheri Taylor
Ø Rich Martinez
Ø Jeff Levin
Written ballots were distributed, collected and counted, with the following results: Taylor 17, Martinez 15, and Levin 9. Cheri Taylor and Rich Martinez were declared elected.
Adjournment
There being no more business to come before the annual meeting, the meeting was adjourned by the President.