RVRMA EXECUTIVE BOARD

Record of Proceedings

Regular Monthly Meeting

Wednesday, February 23, 2011, 5:00pm

The Ranch House Meeting Room

A regular meeting of the Executive Board Members of the River Valley Ranch Master Association, in the county of Garfield, State of Colorado was held on Wednesday, January 26, 2011 at 444 River Valley Ranch Drive, Carbondale, Colorado 81623 with the following people present:

Executive Board of Directors
Jim Noyes, President
Peter Frey, Vice-President
Bill Grant, Treasurer
Dick Heinz, Director-at-Large
Lani Kitching, Director-at-Large
Frank McSwain, Director-at-Large
Ted Stude, Director-at-Large / Management Representatives
Kathryn Rooney, Community Manager
Pamela Britton, Recorder
Josh Passchier, Fitness Director
Suzie Matthews, Controller
Katie Workman, Coordinator,
Member Services & Events
Other Attendees
Katie Marshall
Jack Mikaloff
Ed Shattuck
Jason Jones, Aspen Tree Service
Rich Meyers, Lone Wolf Irrigation
Call to Order

Jim Noyes called the meeting to order at 5:00pm. A quorum was established.

Approval of Agenda

Frank McSwain and Bill Grant moved and seconded to approve the agenda. The motion passed unanimously.

Consent Agenda

Bill Grant and Lani Kitching moved and seconded the adoption of the meeting’s consent agenda. The motion passed unanimously.

Public Comment

None

Announcements

Crown Golf/Irrigation Water Resolution: Jim Noyes provided an update on the resolution of the irrigation water contract dispute with Crown Golf. We are in the process of exchanging homeowner data with Crown Golf for the 2007/2008 actual billings and the 2009/2010 irrigation season for which bills have never been sent. Crown Golf records needs information regarding which residents actually lived here during these time periods. We are preparing this information for them. The goal is to have an agreement in place by April 1st to govern charges for the 2011 irrigating season

New Staff: The Board welcomed Katie Workman, Coordinator of Member Services and Events to the RVRMA staff.

Katie has worked in aquatics for thirteen years, most recently as the Aquatic Specialist at the Snowmass Recreation Center. Katie’s goals include making this summer a safe and fun season. She indicated that she would like to improve the ability for management staff and lifeguards to observe activity in the pools year round. Bill Grant mentioned that there is a video monitor, currently trained on the hot tubs, might be set up soon to provide visual observation of the pool areas from any computer in the Ranch House.

Katie is also looking forward to working with our young staff of lifeguards. Jim asked if Snowmass Recreation Center required pool users to sign waivers. Katie indicated that they did not. Ted Stude asked if Katie had any suggestions for dealing with the pool slide which creates a significant increase in our liability insurance premium. She suggested reducing the amount of time that it is available as was recommended by last summer’s senior lifeguard staff.

The Board also welcomed Suzie Matthews, Controller to the RVRMA staff. Her background includes work for a CPA firm and for a real estate development firm; in both capacities, she managed accounting for homeowner associations. Most recently, Suzie managed Iron Horse Ranch, Tom Bailey’s properties. Jim asked if Suzie has had time to review our books and what her initial observations might be. Suzie indicated she has been reviewing CSI to gain some understanding of our POS software. She plans to work with Tracy Barner of Dalby-Wendland to understand our Quick Books set up. Suzie suggested that there are many areas for improvement.

Committee Reports

DRC - There were no questions or comments on the Design Review Committee minutes of January 27, 2011, and February 17, 2011.

Ranch House Energy Task Force - Kathryn provided an update on the Ranch House Energy Task Force. They are currently working to identify mechanical engineering firms with experience in retro-fitting multi-use buildings like ours. They are soliciting suggestions from knowledgeable individuals including homeowners Matt Hamilton, Sustainability Manager for the Aspen Skiing Company, and Rob Morey, of Garfield County’s Clean Energy program, for suggestions of candidate firms. A request for proposal has been drafted. Dick acknowledged Kathryn and Ted and the energy committee for the quality of the RFP.

Management Recommendations

2011 Contract with Lone Wolf Irrigation - The Board discussed renewal of the services contract with Lone Wolf Irrigation. Jim indicated that Rich Meyers (owner of Lone Wolf Irrigation) built the RVR irrigation system starting in 1997. Rich works both with RVR and Crown Golf.

Kathryn indicated that there is not increase in the dollar amount of this contract from previous years but that there are expanded duties. Rich will assume responsibility for supervision of the field staff; all maintenance/irrigation staff are RVRMA employees. This will be the first time we have had an active field supervisor who can effectively direct the staff, insuring that they have proper training, tools, and supervision.

Lani asked if there are staffing changes needed. Rich indicated that in previous years he has hired someone to help him with the blowing out of the irrigation system. He felt that the current staffing plan will provide adequate staff to complete the work. Kathryn reminded the Board that the 2011 staffing plan provides for an assistant field supervisor to provide back-up to Rich.

A question was raised about the costs of the irrigation system blowout for homeowners’ residences. Old Town and Settlement owners pay an incremental fee as part of their monthly maintenance fees while the costs for custom homes are absorbed by the Master Association budget. Jim indicated that this issue will be reviewed during budget meetings next fall and as an element of the re-configuration of the delivery of irrigation water.

Bill Grant and Ted Stude moved and seconded the following motion:

Resolved, that the contract with Lone Wolf Irrigation be renewed for 2011 at the cost of $84,000 for the term of March 1, 2011 to October 31, 2011.

Motion passed unanimously.

2011 Contract with Aspen Tree Service - Aspen Tree Service was selected last year through a formal bidding process to work with RVR on our significant tree maintenance needs. We are now proposing to engage Aspen Tree Service to prune many of the oldest and most valuable trees along the most prominent streets in RVR. Jason Jones of Aspen Tree Service has offered us a discount from their regular pricing and has given us an estimate for an aerial lift, chipper, and a two-person crew; their services will cost $225 per hour with a ‘”not to exceed” figure.

Jason described the value of the structural pruning that is planned. Many of the trees that were planted by the developer are hybrids with desirable characteristics (shape, fast growing) but with tendencies toward co-dominance which need to be addressed now that the trees are ten to twelve years old. Research verifies that structural pruning will promote the trees’ health and longevity and justifies the cost of the pruning effort. Funds allocated now will mitigate the need for even more costly work later.

Jim Noyes mentioned that the Colorado Forest Service’s inventory of our trees counted 3,200 trees at a value of $1.7 million. To date, we have not managed this valuable asset.

Dick asked Jason if he felt confident that he could complete the structural pruning on all the trees targeted within the fee proposed. Jason reminded the Board that Aspen Tree Service is committed to completing the full scope of work for the not-to-exceed fee.

Ted commented that many of the trees along Perry Ridge and Crystal Canyon (which are not included in the proposed contract) have dead branches. Ted indicated that while he would eventually support the removal and replacement of some of these trees, as an interim measure he would like to see our current staff simply remove the dead branches.

Frank McSwain and Bill Grant moved and seconded the following motion:

Resolved, that the Aspen Tree Service be engaged during the later winter of 2011 to perform structural pruning of trees in four areas of the development described as Section A – D in the proposal of January 24, 2011; the cost shall not exceed $27,250 but shall be charged at the rate of $225 per hour for a two-man crew including a certified arborist with an aerial lift and chipper; work to be performed will conform to the specifications attached to the proposal.

Motion passed unanimously.

Old Business

Results from Polling of the Community Regarding Fitness Classes: Jim indicated that the purpose of the recent “Survey Monkey” poll was for the Board to gain some understanding about how members of the community view complimentary group fitness classes. Jim reminded the Board that the subsidy for the classes had been approved for the 2011 budget and that the appropriate time to formally re-consider this subsidy might be the budget review for 2012. (A summary of the results of the survey were distributed at the meeting, and they are attached as Appendix to these minutes.)

Kathryn distributed supplemental data on fitness class participation over the past twenty-eight (28) days. Based on class sign-up sheets, ninety-one (91) different individuals, representing ___ households, participated in twenty (20) fitness classes that were offered during this interval.

With respect to the “Survey Monkey” poll, Pam Britton indicated that of the one hundred six (106) respondents to the survey, forty (40) respondents were “non-participants” in the fitness classes; fifty (50) were “participants”; the remainder provided incomplete name/address information.

Ted expressed his concern that providing these services may be a violation of our covenants because master association funds benefit only certain individuals. Homeowner Jack Mikaloff expressed his opinion that while he does not take the classes, they are available to him, and he can choose to opt in or out. Jim indicated that he will consult our attorneys to provide an opinion of whether or not we might be violating our covenants.

Kathryn described the effort to insure that classes are offered throughout the day so that they might be available to all homeowners. She described the management team’s efforts to consider the revenue and costs of all amenities offered to homeowners. She reminded the Board that all services involve some level of subsidy. By the next budget season, Kathryn and Suzie intend to complete a comprehensive analysis for the Board of all amenities, direct and indirect costs and associated revenue. To look at one program in isolation may not provide the best framework for decision making.

New Business

Review of Collections Policy (adopted by the Board, March 1, 2008): Kathryn provided the Board with a copy of the resolution detailing the existing Collections Policy, adopted in 2008, one of a group of policies enacted by the Association to comply with the responsible governance requirements mandated by Colorado legislation.

Kathryn indicated that Hindman-Sanchez will continue to handle the negotiations for seriously delinquent accounts that have already been referred to them. Dalby-Wendland, managing our homeowner dues’ account receivables since January 1, 2011, makes the early courtesy calls to homeowners who might have overlooked the deadline. After the first thirty days of delinquency, the RVR Finance Office assumes responsibility for managing delinquent cases. Dick asked if attorney fees for collection are charged to the delinquent homeowners; the answer is ‘yes.’

Kathryn and Suzie will work with the Financial Oversight Committee (Jim Noyes, Bill Grant, Kathryn) to review the current collection processes and tighten them and to consider whether the Board should take measures to reserve for potential losses.

Executive Session

Board moves to Executive Session at 6:04 pm to consider the aged receivable report in camera.

Board left Executive Session at 6:40 pm.

Adjourn

It is moved and seconded to adjourn the meeting. Meeting adjourns at 6:42pm.

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