Attendees: Bud Talley, Fred Davis, Satyaveer Satvat, Paul Johnson, Todd Williams, Nathan Port and Jim Crawford.
Financial Advisory Committee (FAC) Meeting was called to order at 2:00 pm at CMC offices.
- Monthly Financial Status draft was used as a guide for the meeting.
- Nate answered and discussed the questions developed at last month’s meeting (comments and discussion shown at second bullet level):
- Any difference for mowing SF vs TH lots – To the best of my knowledge at this point there was an addendum signed in June 2011 that puts the lot rate at a flat $40. There is a new addendum in the Board packet that is unsigned without clarification on lot price. I have asked for this to be provided before the Board Meeting. Signed addendum attached.
- After substantial discussion, CMC plans to separate the three different types of housing areas in the budget (TH, SF, and ADU).
- The FAC will work with the Service Agreement associated with the Kensington Square By-Laws to ensure all potential categories are addressed (all open/common areas, trim painting, gutter repair and replacement). This will then require determination of the cost of maintaining/replacing those items and understanding the impact on assessments. Roofs are the least well defined and will likely require a board decision when we have the feasible options prepared.
- Roofs, structures, patios, fences, play areas, parks and other common items will be addressed.
- How to accommodate owner-additions to proper from a maintenance perspective will need to be addressed. Replacement should not be included in items the owner added after purchase.
- Landscape Contract Expiration – The full contract expires February 28, 2013. The new unsigned addendum does not clarify but I have required they resubmit with clarification it expires along with full contract and does not run past it.
- Draft is in place and being reviewed by the Board.
- Board will direct the solicitation, review and selection over the next three months.
- Worker’s Compensation is only about $700-800 per year and most likely worth it. No additional discussion.
- Snow Removal Reserve Item.
- Nate spoke with the auditor and we can certainly create this line item. They do not recommend or like it, but it complies with GAAP.
- The FAC will make a recommendation to the board as to how this might best be addressed after fully reviewing the Service Assessment.
- Working on seeing if MRC can negotiate mid-contract.
- CMC has a good reason to do this seeing as American Disposal has been charging us one flat rate for all lots even though we have two different rates for the TH vs SF. They are currently calculating any credit we may have. They are almost done with it.
- Town Home Roofs & Gutters, how to handle?
- CMC has some information on this that makes it pretty clear as to how this should be handled. This is in line with a thorough review of the Service Agreement and items discussed in the second bullet of this paragraph.
- Recommendations will be provided to the board by the FAC in August.
- Still need to follow up on acceptable means of notifying residents and owners as changes are made.
- A Town Meeting, hosted by the FAC should be used to initiate discussion at the homeowner and staff level. First one of these will be in August or September.
- Recommendations, suggestions, and other comments will be forwarded to the Board.
- The FAC recommends that the Board contract for a thorough update of the existing Reserve Study, to include all 245 residences, common areas (parks, playgrounds, gazebos, sidewalks, roadways), and exterior properties to be ultimately managed by the HOA.
- The FAC will meet next month on July 2 at Jim Crawford’s home.
- “Homework” includes a thorough review of the Service Agreement.
- Nate Portman will provide an initial draft of the 2013 Budget to begin review and understanding as it is developed.
These minutes have been reviewed by the members of the Committee and are hereby submitted to the Treasurer and Executive Director.
Submitted by Jim Crawford, 112793 Lavender Keep Circle, crawf70@verizon.net, (703) 956-6572, FAC Chairman