HOA1 Annual Meeting “Couched” in Uncertainty

VIA SBINSIDER REPORTING | 4/30/24

The HOA1 Annual meeting of residents on Monday the 29th, drew a sparse crowd and no complaints from residents in the open forum section of the meeting.  Most of the meeting reviewed the financial condition of the association and it was obvious that prescient actions of the investment committee lead by Marty O’Shea and Bill Clarkin the ROI has been exceptional.

Due to the highly unusual market conditions that confronted both our investment committee and the entire world, near zero interest rates, unprecedented Federal Reserve interventions and supply chain problems, the team decided to use investment products (CEDARS) for the COVID related challenges. The results were extraordinarily successful as can be seen in the financial reporting details in the Communicator. As a result, the association has a healthy $10 million plus in reserves and is positioned to maintain our facilities.

Immediately following the Annual Meeting, the Board met in its regular monthly format.

Community Fees 2026

Despite the returns on our investments, the Board reported to the residents that inflation the past 3 years has acutely driven prices for food and labor to higher levels, which are not likely to retreat. In prior years, the Board did not fully raise fees to account for the increasing costs but can no longer. Therefore, we can expect that the board will increase the next two years by about 6% each year rising to $3,160 by 2026. 

HOA2 by comparison, is currently charging $3,600. 

The cost per household (2,061) to subsidize golf is $263 and $212 for food and beverage service on an annual basis.

GOLF

Annual Golf memberships are at a record of 458. Golf has been a steady revenue source because COVID actually caused a spike in rounds played.

5 Year Plan

Using the SWOT method to add details to the 5 year plan. Board member Joe O’Conner briefed the board on its progress and expects a full presentation to be ready by the July meeting. The concept is to have shorter term goals that are aligned with the existing 10 year plan.

Carpeting and Couches Controversy

Of all the items considered at the two meetings, the replacement of the carpeting in the Vistas and adding 6 more dining tables garnered the most comments.  The Board members were concerned that the carpeting might be too dark and not match the existing color scheme. GM Vivian Timian responded that the carpet sample had been in the lobby for several weeks so that residents could see the new look and no complaints had been received. In the end, the Board decided to approve the new color.

When COVID was raging, the Vistas reduced its seating by 6 tables to spread out the dining room. (This spreading out tactic had zero effect on COVID infections as reported in SBINSIDER and confirmed by the CDC), so it was decided to add them back to increase seating capacity.

The controversy is what to do with the couches that are currently to the left near the fireplace were next considered. Some board members wanted to replace them with high-top tables for more seating. Others, liked the “clubby” feel that comes with a lounging area near the entrance. Residents commented on both sides, one said the couches make the entrance look like an assisted living facility, while another said dining tables makes it look like a restaurant. In any event, the couches are in desperate need of cleaning, it was pointed out.

No hard decision was made, as the staff put forth the idea that they could try several configurations including moving the couches to the spot where the host table is currently and then moving that table closer to the dining entrance.

Road Work on Ridgeview

Like all the private roads in SaddleBrooke, the Robson Company built them as cheaply as possible to save money. In an excellent presentation, John La Bar explained that our roads have 2 inches of topcoat and 6 inches of underlayment. The roads should have been built with 3 inches of topcoat and 8 inches of underlayment. Ergo, by sections, Ridgeview rebuilding will begin in summer.

What do you think? Should the HOA remove the couches and replace with hi-top dining tables or leave as is or consider another approach? Leave a comment below.