Minutes - Finance Committee

Draft Minutes Rev A dtd 7/10/19

Finance Committee Meeting Tuesday July 9, 2019

9:30 AM Conference Room

 

 

Prior Distributions: Previous Minutes, Financial Report, Agenda

 

Distributed at Meeting:  Redacted Accounts Receivable, Pool Project financial report and Gantt chart, proposed ByLaws amendment regarding fees as “Assessments.”

 

Attendees:  Fred Miller, Nolan Zisman, Sal Monaco (Chair), Dan Drobnis; HOAMCO Staff: Mike Rogers (Operations Manager), Anna Hansen (Executive Assistant), Michael Franciosi (Vice President), Doug Langston (Controller); ECIA Board: Joseph Guiterrez (Treasurer/Committee Liaison), Todd Handy; Guest: Bette Huston

 

  1. Public Comment--None
  1. Additions to/Adoption of Agenda—Adopted as distributed

 

  1. Approval of Minutes
  • June 11, 2019 Approved as distributed
  • July 2, 2019 Approved as distributed

 

  1. General Manager’s Report—Julie on vacation, Anna standing in.
  • Report on Status of R&R 2019 Projects—Not available.
  • Pool Update – Mike Rogers provided the following:
    • Phase I Budget is holding at $824K
    • Connection to Front Island watering from backwash system has been tested
    • Pool House Men’s and Women’s tiling completing this week
    • Deck pouring in 3 stages Thurs-Mon 7/11-15
    • Pool acid wash and begin fill next week
    • Fill will take 9 days because of well limitations
    • Electrical/Mechanical checks could begin week of 7/22
    • Final inspection not yet scheduled
    • Some vandalism occurred. Teenagers identified.  May require restucco of some walls—about $6K cost.  ECIA insurance should be notified.
    • Shade will initially consist of tables and umbrellas; Phase II in 2020 will add permanent shade structures
    • Phase II/2020 estimate is roughly $165K
  • Stable water contract is $127K; no start date provided

 

R&R Projections Update

  • Nolan has made updates to the version available online, but the substance has not changed significantly since the 7/2/19 review.
  • Nolan and Lee Onstott have reviewed the needs of the Hike/Bike paving for the next several years and established that only seal-coating of certain sections is needed for 2019. A specification is being developed to put out to bid.
  • There are significant Expense budget underruns. Julie is requested to have a budget projection for the August FC meeting.

 

  1. Board Liaison’s Report
  • Progress is being made on recovering some legal expenses, but apparently cannot yet be divulged. (See Motion 3, Minutes of 6/13/19)
  • Tentative schedule for Office Financial Procedures review on July 23 or 30 at Julie’s convenience.
  1. Financial Reports
  • Some strange adjustments on Allowance for Bad Debt may now leave an insufficient allowance. HOAMCO investigating.
  • Collection efforts appear to be making progress, but delaying notification for two months after the March 1 assessment due date may be hindering settlement with owners of newly overdue accounts. The FC recommends filing collection suits more aggressively on long overdue accounts (Motion 1 below) and moving up all notification and action dates on newly overdue accounts by one month (Motion 2 below).

 

  1. Other Business
  • Treatment of Special Fees and Charges as “Assessments”. Nolan presented a proposed ByLaws change.  This would allow them to be liened and collected like annual assessments.

 

  1. Next Meeting

Finance Committee Regular Meeting Tuesday, August 13, 2019 at 9:30 AM.

  1. Adjourn

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Motion 1:  The Finance Committee recommends that the Board proceed immediately to file suit against owners of all accounts that have been referred to collection and are not responding. (4-0-0)

 

Motion 2:   The Finance Committee recommends that the Board update the current Collection Policy to establish the following dates:

  1. a. First Notice of Delinquency and late fee: April 2 or first business day thereafter (FBDT).
  2. b. Second Letter and Notice of Lien Intent: May 1 or FBDT.
  3. c. Third Letter and Filing of Lien, Notice of Collection: June 1 or FBDT.

(3-1-0, Zisman voted Nay because not sufficiently stringent)