Highlights from the 12/27/18 HOA general meeting

The official minutes from the HOA general meeting on 12/17/18 should be available HERE in the next couple weeks or so. In advance of the official minutes, below are a few highlights from the meeting, attended by three board members. Property Manager Matt Brown of Condominium Management was also present. Approximately 46 additional Esplanade residents were also on hand.

PLEASE NOTE: This report reflects an incomplete summary of the meeting, as your blog editor was unexpectedly called away from the meeting after 40 minutes. Three reliable sources who were present for the duration were queried in the days after the meeting, in an attempt to gather information that was missed. Apologies for any informational gaps.

The board opened by noting that the proposed 2019 HOA budget, and some supplementary materials, had recently been mailed to all homeowners. The board then took questions from those in the room. A condensed sampling of the questions and answers:

• Why is the new carpet, paint, etc. not reflected in the budget? [Has not been paid yet; should be reflected in future monthly statements.]
• What is the status of the vote on changing the language in the CC&Rs to allow vehicle traffic in the concrete circle? [The current count of ballots is 44-4 in favor of changing the language. All homeowners recently were mailed a ballot, which would have arrived in an envelope from "Fullaway, Lamphear & Suave." This ballot is for homeowners to vote on language changes to the CC&Rs, which would allow vehicle traffic and short term parking in the "concrete circle." A two-thirds "Yes" vote will be needed to change the CC&Rs and open the circle.]
• Why will there be an 8% raise in HOA dues in 2019? Wasn't there a raise last year? Is there a raise every year? Are dues ever lowered? [The main reason for the dues increase is the projected rising cost of maintenance and repairs, particularly on the building's elevators. Unforseen capital projects, such as replacement of the concrete circle, have also contributed to the need for a dues increase. There was a smaller dues increase in 2018 of approximately 3%, but no other dues increases since 2015.]
• Is the complete reserve study for our building available on Pilera? [Yes.]
• There were several questions about the HOA's reserve funds, how those funds are invested, if the funds are FDIC insured, and if the funds could be more wisely invested to get better returns. [Editor's note: Prior to 2016, reserve funds were invested in very low-yield savings accounts. In 2016 and 2017, an HOA Finance Committee set up a schedule for reinvestment of the HOA's reserves into higher-yielding CDARS, "laddered" to mature in 3-year cycles. Upon completion of this investment plan, the HOA's Finance Committee was dissolved due to lack of volunteers.]
• There were several questions asked regarding the board's rationale for spending on specific items, such as a deck replacement, the new remote opening system for the garage doors, etc.

At the end of the meeting, the 2019 budget ratified automatically without an 81-vote majority to reject it. (Approximately 30 units were represented in the room, meaning that all those present in the room would have needed to vote "no," and roughly 51 additional proxy "no" votes would need to have been submitted.) However, the board reportedly did not officially call for any "no" votes, nor ask if any proxy votes were held by persons in the room.