ASOCIACION DE REGULARIZATION DE VECINOS DE LA CHOLLA A.C
Regular Meeting New Board – Community Center
Sunday April 24th, 2016
CALL TO ORDER:
A regular meeting of the Board was held Sunday April 24th. President Michael Dugan called the meeting to order at 9:00 AM. Mr. Dugan welcomed all in attendance.
Those members in attendance were: Michael Dugan, Kelly Ross, Kathy Barnard, Helen Dahlstrom, Pat Champion, Lew Felton, Ken Goodin,Charli Keller, Don Schmidli and Darrell Smith.
MINUTES:
Mr. Dugan asked if there were any corrections to the meeting from last month. There being none, a motion to approve the minutes was made, seconded and approved.
TREASURER’S REPORT/FINANCIAL:
Ms. Dahlstrom read the treasurer’s report as of March 31st, 2016. We are currently at 47% of our budget after 9 months. There were no corrections or additions. A motion to approve the report was made, seconded and passed.
Mr. Dugan told new member, Charli Keller to contact him or Ms. Dahlstrom if she had any questions regarding the reporting of HOA financials.
MEMBERSHIP:
Ms. Dahlstrom reported that there are 600 members paid in full, 244 members not current, 7 Mexican members not required but paid, for a total membership of 851. There are 12 members whose status is unclear.
Ms. Dahlstrom suggested we commend Gretchen Ellinger for having sellers and buyers remain current with HOA dues when transferring property ownership. She also suggested that owners/sellers who carryback sale of property must be current as well. Mr. Dugan added that there are several other real estate agents who support our HOA’s dues policy who should also be commended.
CLUBHOUSE:
There was nothing to report.
EXECUTIVE COMMITTEE:
Mr. Dugan brought up the ongoing issue of “opting out” of the HOA. He explained that the HOA was formed because it was needed and to get the Regularization process moving forward according to the requirements of the State of Sonora. Mr. Dugan stated that the Associaton Constitution was formed in 1991 and as the process moved on, the Government, in 1993, formed the technical committee to produce the regularization process so people could get their Deed of Trust.
Mr. Dugan read a letter he submitted to the Company (SBR) and will send a copy to the Board Members: (See parts of the letter below).
In June of 1991 the corporate paper of Vecinos were recorded. This was a requirement of the government and the developer in order to start the process so as everyone who had an interest in property in La Cholla may obtain title. At that time, Francisco Mnazo of Bancomer was instrumental in helping the Vecinos. One of the requirements at that time (1991) was that a provision was made to allow those members to resign.
Starting June 3, 1993 saw the creation of the “Technical Committee” made up of the “company”, the city of Penasco, the State of Sonora, and Bancomer. The committee met 26 times over the course of those years to finalize the process for the “deeds of trust” to be issued.
On September 15th, 1993 The State of Sonora wrote through the Secretary of Tourism wrote to then President Alan Peterson delineating the requirements needed by those wanting to obtain ownership n their property. The final paragraph of the letter stated:
One of the results of their actions was the issuance of an “Official Bulletin”. This was a statement by the State authorities that was recorded in the official registry of the State.
As we all can see, the main intent of the government was to have a body that would be the spokesman for the community as a whole. Further, the government, by its official bulletin, expressed the legal position that anyone desiring to own property in Cholla is required to be a member of the association and to continue to pay the costs associated this membership.
The government nullified the provision of opting out of the association and made it a requirement to be a member.
Your association will continue to make sure that all parties involved in the process of issuing future deeds of trust will be aware of this requirement. Further the Company, SBR has acknowledged that membership in the HOA is a basic requirement of the process of completion of the Deed of Trust process. A letter from the HOA will be needed showing that the purchaser of the property is a member in good standing. The member shall add a statement that the owner will continue to be a member and any sales of the property shall continue with that requirement.
Mr. Dugan asked the Company’s attorney, Hector, if he agreed with the letter, the answer was affirmative. Hector was unsure of all the details and would check with some “notaries” as to how the process goes.
Mr. Dugan explained the reason for writing the letter was to give clarity on the positions of the Association and the Company’s position regarding membership in the HOA. He stated that he will send the letter to the Board and will put it out on “Fire Drum”. (Fire Drum is our HOA’s mass email program distributed to current members.)
There was further discussion about requirements to sell and purchase properties in Mexico: i.e. the benefit of having a “Permanent Residency” card. Mr. Felton stated that he had researched and written an article explaining the power “Notarios” have in the sale and purchase of property. He continued stating that if you have permanent status there is a significant reduction in capital gains. The reduction in capital gains is determined by the Notario and is based on proof of permanent status and proof that property is your primary home. Mr. Felton made the point that the Notarios have so much power, they will have to enforce membership in the HOA in good standing.
Mr. Dugan explained the first step in acquiring a Deed of Trust: First, the Company issues a lettes of instructions to the Notario which is a “checklist” of needs that have tohappen in order to complete the sale. Since Bancomer no longer wants to issue Deeds of Trust, the Company must release the property out of the Master Deed of Trust. The purchaser of the property can then choose the financial institution they want to use to carry the Deed of Trust. When the Notario receives his package of required documents he sends it to the Ingressos who forms a new Castrel number for your property. And finally that is taken over and recorded in the Official Registry.
Further discussion continued and examples where given regarding the process of getting your Deed of Trust. Mr Dugan stated the Company has taken a couple of lots in our community as “Beta” test to go through this process to the “kinks” out before the vast majority of people going through the process will have an easier time doing so.
Mr.Dugan said he would offer the Company any help that they would need from the Association to expidite the process of getting a member’s Deed of Trust. He would ask Hector to provide a checklist of documents needed to start the process. Mr. Felton commented the need to clarify/emphasize the need to have some form of immigration status when going through the process now, versus when they first started the process years ago.
There was some discussion regarding the transfer of property whose parties are deceased divorced or no longer have ownership. Mr. Dugan suggested the need for legal help. Ms. Dahlstom suggested putting in an article in the newsletter regarding this issue.
Mr. Dugan stated that the Master Deed of Trust in Cholla is the largest in Mexico;the account was moved from México City to Mexicali and now in Tijuana, consequently the process has been more confusing. Mr. Felton cautioned that people need to be careful about survivorship and the cost of changing it when going through the Trust process.
Mr. Dugan said he is willing to help anyone with the process and that he would ask Hector to provide a letter of instructions and/or a list of things required by the homeowner neededin order to expedite the process.
GARBAGE:
Mr. Dugan reported that Oomsilim has been doing well. Ms. Keller stated that she has sent out a report of how much her trash committee has collected over the past several months. She stated that they are averaging about 60 garbage bags collected each month. Pick up is all along streets and beaches. Ms. Keller stated that most of the garbage is coming from the community members who come to use the beaches in Cholla and leave their garbage.
Several Board members shared their experiences with people and places who do or don’t pick up their trash. Mr. Felton complimented Ms. Keller for her committee’s efforts.
Ms. Keller suggested talking to school children to help change their mindset regarding keeping the environment clean. Mr. Dugan suggested taking the children on a field trip to the estuary to see first-hand the impact of trash on the environment.
ROADS:
Mr. Dugan reports that the roads are in good condition.
PARKS/ENVIORNMENTS:
Mr. Smith reported that there is a bench that is loose on the east ramada and he will get with Arturo to repair it. He will also have Arturo begin painting the lines on one court instead of two.
The thought is to paint only one court and see how it is being use then if needed, paint a second court. The painting will start tomorrow.
SECURITY:
There was nothing to report.
WATER/SEWER:
The status remains the same. Mr. Dugan stated that he want to talk to the Director. He stated that the previous administration had awarded a contract for 1,700,000$ pesos for ‘him’ to put together a program to be sent to ‘whomever’ in order to fund it. The person came out and met with Mr. Dugan and that was the last time Mr. Dugan saw him again.
Ms. Keller inquired about the lack of water available for few days, after Semana Santa. Mr. Dugan explained that the Company had to reline the tank, first by draining the tank then fixing the liner and refilling the tank. He further explained that the City doesn’t own the tank, the Company does and they own the pump as well. He stated that the water used come down the line starting with the condos and ending with Cholla. The condos all have cisterns and were filled every Monday morning turning the valves on all the way, leaving Cholla without water. They were asked why there was this problem and the reply was they didn’t have regulating valves.
The HOA made a deal to pay for 12 regulating valves at $3000 per valve in exchange for road grating for a year. So now, everyone has equal and available water down the line.
Mr. Dugan stated that IF there is a problem is most likely due to a repair needed or that the City has had a problem.
NEW BUSINESS:
Mr. Dugan reported on past projects that were done to the clubhouse after the end of the year last summer. The Bar was remodeled last summer. New cabinetry was added and drywall installed. Tile work was done with the inclusion of the Vecinos’ Logo incorporated into the design. The kitchen was also remodeled.
This summer, Mr. Dugan would like to install drywall, insulation and metal studs alongside the existing wood studs, in the area from the bar to the front door and continue from the front door down the hall (food line) to the side door. The wood studs would be left to the termites to finish.
The project would also include having the wiring redone and the sound-system laid in to look neat and clean. Soffits would be installed and the name tags would be hung within. Acoustically, the soffits would improve sound.
In the future, Mr. Dugan would like to do the same for the rest of the clubhouse, to clean up the building to make the interior better looking with better sound, replace the existing ceiling fans with flush mounts and LED lights to conserve power.
Mr. Dugan stated that Rick Dahlstrom has been instrumental in acquiring contractors to complete projects in the clubhouse over past years. Therefore, he would like Mr. Dahlstrom to put together a plan for this summer’s project. Mr. Dugan asked for a motion to fund the project out of HOA reserves, which would be capital or fixed asset expense. Mr. Dugan stated that there would be enough funding from this year’s budget to cover the expense.
Mr. Dugan thinks the new budget will provide funding for other opportunities to make improvements to the Community i.e. beaches and roads. Ms. Dahlstorm added that the windows in the clubhouse will need to be replaced with duel panes. Mr. Dugan stated that Mr. Dahlstrom will have to repair the large crack in the clubhouse’s support pillar this summer.
Mr. Felton stated that the surplus is due to money budgeted for garbage collection not used because Oomslim is now collecting from each individual. Mr. Dugan stated that the surplus is best used to make improvements needed and mentioned that the clubhouse roof will eventually have to be replaced.
Ms. Champion shared her experience with roof repair and had her roof spray foamed without any problems over a year. Mr. Dugan replied that spray foaming the clubhouse roof would improve its condition and add another layer of insulation.
Mr. Dugan called for a motion to move forward on the clubhouse. The motions was made, seconded and passed.
Mr. Felton suggested that we explain to the homeowners how the garbage money, included in last year’s dues, will be reallocated to pay for the clubhouse projects and improvements within the Community. Mr. Dugan suggested we include this information in the HOA minutes.
Mr. Goodin asked about the disposition of the name tags/plaques when completing the clubhouse projects. Mr. Dugan explained that they will be re-hung within the soffits.
Next meeting will be June 12th, 2016, at 9:00 am, the day after the Steak Fry.
Ms. Champion asked why we don’t schedule monthly HOA meetings at one time instead of doing it at each meeting. Mr. Dugan explained that we schedule the meetings in coordination with club functions so that meeting attendance will be maximized. Also HOA meetings are scheduled in coordination with holidays. Mr. Dugan stated that the first of the year dates are often planned during the “Cholla in the Pines” party (held in August) when board members from both clubs and HOA are in attendance.
HOA meetings for October and December will be held October 30th, 2016 and December 11th, 2016.
ADJOUNMENT:
A motion was made and seconded to adjourn and the motion was passed.
AUDIENCE PARTICIPATION:
Ms. Champion asked about the new requirement for boat permits coming into Mexico. Mr. Dugan stated that the CBSC put out a notice about what is needed and Nancy Schmidli sent out a similar notice to people on her email list. He also stated that you can go to the websiteand pay online then print out the permit and receipt. When asked why this has happened, Mr. Dugan suggested that Mexico saw this as a possible new revenue source. All this information has been sent out in notices from the CBSC and Nancy Schmidli’s email list. The cost of the permit is $60
Those people who have boats already down here should go online and purchase their permits.
The Navy is in charge of enforcing the permit and boat registration. Mr. Dugan stated that a boat 4 and ½ meters long and above is required to have a permit. Mr. Dugan suggested to go to the website for more information.
Mr. Felton asked if anything more has been done to improve the HOA website. She stated that the website should only be accessible to current HOA members. She further explained that price for the website includes the actual creation of it and to import the data from the current website.Ms. Dahlstrom said she would get an update from the website carrier.
Ms. Champion asked about the lack of WiFi available at the clubhouse. Mr. Felton said he needs to get a new box.
Mr. Dugan thanked everyone for coming.
Future Meeting Dates:
June 12th, 2016, 9:00 am
October 30th, 2016, 9:00 am
December 11th, 2016, 9:00 am