"A self-managed and -run community, composed of a volunteer board that works to keep costs low

while striving to enhance property values and provide efficient leadership through open and honest communication."

P.O. Box 1195, Hockessin, DE 19707

NEWSLETTER FOR MEETING OF JUNE 15, 2015

Board Attendees:

Sal Pauciulo – President………………………

Monica Rieder – Treasurer......

Jim Coll – MAL………….……..……………………

Manuel Harnisch – MAL/Advisor………

Diane Riley – MAL......

The meeting, held at the Skyline Middle School, was called to order at 6:30 PM and was adjourned at 8:15 PM.

Board Changes:

After several years on the Birch Pointe Board, Cassie Gonce tendered her resignation citing time constraints in her busy schedule. We thank her for her work in maintaining all the real estate statistics and documentation. In addition, the Board has also seen the retirement of secretary and database keeper Sandy Martin to whom is extended much gratitude for her long time dedication to the community. And, unfor-tunately, recent months also saw the departure of member-at-large Jeff Biehl who provided his knowledge and support to Sal in dealing with some of our contractors. Lastly, Sal himself will be stepping down in his role as president, turning over the reins to Jim Coll but staying on the Board to lend his knowledge and general know-how regarding the day-to-day maintenance of Birch Pointe. To all, we offer much thanks for their service and dedication. In light of these recent de-partures, the Board was looking for some willing volunteers to offer a bit of their time to keep the community running and a great place to live! New resident owner Cheryl McDonaugh expressed an interest and decided to come on board. We all welcome her!

Inpromptu Meeting New Castle County

with Local Representatives

At the June meeting the Board was very fortunate to have present two of Pike Creek area’s public office holders – District 3 Councilwoman Janet Kilpatrick () and District 21 State Representative Mike Ramone (michaelramone@

state.de.us) – who shared some of the projects on which they were working that would impact the area in general and/or Birch Pointe specifically.

As a member of the NCC Council, Ms. Kilpatrick is involved in studying issues affecting government operation. She helps write and pass laws and resolutions that improve its operation and protection of the welfare of the citizens it represents.

To start, she cited a letter sent out by the county requesting permission to put up some additional street lighting at no charge in various local communities, including Birch Pointe. Security issues were mentioned along with some recent unde-sirable activity in various surrounding secluded areas, espe-cially on weekends. Abandoned furniture and makeshift “bivouacs” should be cleared out by county Special Services. In addition, Ms. Kilpatrick is looking into the problem with water runoff that many of 13 other communities in Pike Creek have because they lack their own drainage basins: all appar-ently are connected through conduits running under the golf course (a private area now often being used by ATVs which will have many new “no trespassing” signage posted.)

As she was off to yet another meeting, the Board thanked Ms. Kilpatrick for her attendance as well as all her support.

Mr. Ramone is a small business owner who is a member of the state House of Representatives and a legislator in the Delaware General Assembly. He sits on various House com-mittees and aims to bring resolution to the local issues that matter most to his district’s communities.

He began by noting that Birch Pointe has seen a marked im-provement in its reputation during his tenure, now quite a desirable place to live. Great news for us! Sal mentioned the road condition problem on Diana Drive and asked whether this was an issue for which the state might be able to provide some funding support. Mr. Ramone stated that 2015 is a tough year regarding available monies but possible help might be had next year…the key is to get the project on the “to do” wait-list so Birch Pointe will have a priority. Since the dete-riorating blacktop is related to run-off/drainage issues, there could be a cost-share with NCC Conservation District to ad-dress this issue. It would do the foundation repair and drain installment, we would coordinate with and hire the paving contractors. Mr. Ramone will keep the Board posted of any progress, also stating that DelDot might be able to do a shallow patch to the affected area to tie us over. Sal next inquired about our balcony replacements and if any program exists for financial help with this. Mr. Ramone said that there were several communities which received payment in lieu of filing class-action suits when some of the original construction was not done to code or to actual specs, and that building in-spections were questionable at best. Again, this will be inves-tigated further.

It was very much appreciated that Mr. Ramone took time to discuss these projects with the Board and for offering possible assistance.

Real Estate Status:

Prior to her resignation, Cassie forwarded the latest Birch Pointe real estate status to Sal, the details of which can be found on our website, At the time of her most recent online research, there were six regular sale units in the community: four on Birch Circle and one each on Diana Drive and Claremont Court. There is also a unit in pre-foreclosure on Birch and two others – one on Claremont, one on Birch – which were removed from the market and are now for rent. A unit on Diana was sold in May at a sheriff’s sale, and another from a previous auction is back on the market. Claremont saw some further activity with one condo sold and one more scheduled to settle in June. Finally, settlement of a Haley Court unit still seems to be pending.

Please let a Board member know if you aware of a new listing in Birch Pointe, or if YOU are moving and planning to sell your own condo in the near future. For now, Sal will act as the liaison to provide many of the essential real estate docu-

ments, forms, and certifications needed for property transfer.

As stressed in the last newsletter, it is important to remember – and to disclose to potential buyers, either directly by the seller or by his/her realtor – that Birch Pointe has a policy regarding investors, a measure designed to protect the interests of ALL owners. Birch Pointe is subject to FHA/HUD recertification, which allows owners to obtain FHA insured mortgages. If the number of investor owned properties in-creases, the community can approach an unfavorable rental ratio and may no longer be able to obtain FHA certification. The document outlining this policy established in 2013 is clearly listed on our website.

Don’t forget that a census form should be completed by ALL owners and/or renters to provide contact information in case of an onsite emergency. Please get in touch with a Board member if one has not been submitted.

Delinquency Report:

Collections for May were just at the monthly goal, coming in at $92,585. Fees received to date in June are almost $58,000. A unit on Birch with an almost $2000 outstanding balance was sold and the entire account was zeroed out. Sal was notified by the realtor handling a unit which was bought at a March sheriff’s sale that a payment of $2640 in past overdue fees will be dispatched soon.

Another account long delinquent is also almost completely paid up, and two owners each remitted $1000 or more in May. This trend seems to indicate that some of the earlier hardship cases are being resolved, either directly or as the result of foreclosures.

Remember that owners failing to make any effort at some consistent payments and/or ignoring repeated requests to address their overdue accounts may have judgments placed on them. Working out a reasonable payment plan/schedule can be arranged by consulting with the Board.

The incentive remains to enroll in the ACH program – the automatic and convenient way to pay condominium fees Consider signing up if still using paper checks to remit HOA dues and receive a $15 credit! Contact Monica for more info at – or check our website to download the necessary form.

It is every owner’s responsibility to pay monthly HOA fees!

your due$ = your services

Treasurer’s Report:

The monthly financial report can be found on the final page of this newsletter. As shown, total operating costs for May were relatively low, coming in at only $65,350. Expenditures were on budget and in line with normal operating outlays.

The remainder of the capital expense payment of $22,000 to Tim’s Roofing for downspout/gutter replacement was made in May. The entire community is now complete with all buildings sporting the new, larger ducts…yet another major improve-

ment checked off the list!

Balcony replacement by ProTech has begun on the ten struc-tures designated for fiscal 2015. Invoices will be coming in for the first of these items in June.

And, finally, the status of the Reserve and of the Operational Reserve Funds are also indicated on the financial summary, with ending balances of $254,115 and $55,275, respectively.

President’s Report:

Prior to any discussions, Sal introduced two issues to the table on which a Board vote is needed: the semi-annual approval (1) to keep condo fees at their current level ($330 per month) and (2) to not impose any other assessments. As the status of Birch Pointe’s finances remains good, all members present agreed to the following: (1) maintain HOA fees as they are from July 1, 2015 to January 1, 2016 and (2) levy no ad-ditional obligations, barring any unforeseen major expenses affecting the entire community which cannot be dealt with using existing funds.

Sal next reviewed the various capital improvements which have been completed – or are on-going – while he has been president, mainly for Jim’s reference:

• roads • roofs • gutters • chase covers • retaining walls

• hallway painting and light fixture replacement

• hallway carpet replacement and now its cleaning

Also listed were projects which were rejected by the Board:

• the seal coating of roads

• the parking expansion at the end of Birch Circle

For the upcoming year, issues which will need to be ad-dressed but are, as of now, unapproved and unscheduled:

• replacement of the aging intercom system in all buildings

• installment of window ventilation in all hall entrances

• concrete work on 10+ building entrance walks

• leveling of the Claremont grassy area (possibly an issue

for NCC Conservation District per Mike Ramone)

• replacement of stained chimney siding

Subsequently, Sal noted that that landscaping seems to have become a major issue with residents. Many trees need trim-ming, a large and costly project. In addition, Paoli’s per-formance and adherence to its contract this year has not been exemplary, and is likely not to be renewed. Search has begun on hiring a new contractor, with a potential candidate in Green-Side-Up. A tentative proposal has been drawn up but several items still are in need of discussion and further nego-tiation. A decision regarding this will most likely be made in the latter months of summer.

And finally, the hunt continues for a seasonal, temporary (possibly to permanent hire) help for Dennis and Eric’s rou-tine tasks (which may include extensive weeding and assis-tance with the scheduled power washing). Ads were placed and several people replied; a few interviewed in person. Hopefully one will soon be retained.

Things to Note

Handicapped Parking

Observe the handicapped parking spots located throughout the community! They are to be used only by vehicles with the ap-propriate state handicapped license plates or hang-tags. Birch Pointe reserves the right to remove vehicles not in com-pliance at the vehicle owner’s expense.

Smoking Policies

Smoking is prohibited in all building common areas including hallways and staircases; light up only once outside.

Pet Policies

Pets must be leased at all times when being walked. PLEASE also pick up after your pet!Failure to clean up waste will result in a $50 fine.

Community Traffic

Please SLOW DOWN and mind the stop signs! They are put there for a reason. Cars backing out, owners walking pets, people picking up mail all may be difficult to see, especially at night. Be responsible and considerate: obey the speed limit.

Remember also that if Birch Pointe is your legal residence,

vehicles MUST be registered in Delaware and not bear out of state tags.

Commercial vehicles, unless on service calls, are not permitted to park overnight in the community.

Violators will be warned and, if not compliant, vehicles may be towed at owner’s expense.

Dumping

Outside contractors such as carpet and appliance installers, are NOT permitted to dispose of materials in Birch Pointe dumpsters! If ignored, a stiff fine will result! In addition, oversized items such as matresses, shelving, old stoves, etc., are NOT

to be placed beside dumpsters; they will not be picked up by the trash trucks. Special arrangements MUST be made to haul these away.

Inquiries concerning Birch Pointe should be directed in the following order:

General Property Management Questions

Eric Kennedy – phone: (302) 685-4310

Maintenance Issues

Maintenance staff (Dennis, Eric) – e-mail:

Account Statements

Sal Pauciulo – phone: (302) 533-6024; e-mail:

Condo Fee Questions / ACH Payment Sign-Up

Monica Rieder – e-mail:

Birch Pointe Maintenance Emergencies

phone: 1-267-474-2907; e-mail:

► Please note that within a short time, all contact information for Board members ◄

will be updated and made more uniform with common e-mail address extensions;

bulletin board notices will also be replaced to reflect these changes

May 2015 Financials

– Operating Account

Beginning Balance:$ 54,880.15

Inflow – Operating Income:$ 94,385.00

Inflow – One-time Transfers (from ORA*):$ 0.00

Outflow – Operating Expenditure: $ 65,343.81

Outflow – Capital Expenditure:$ 22,000.00

Outflow – to Operational Reserve*:$ 0.00

Ending Balance: $ 61,921.34

Target Ending Balance: $ 50,000.00

Surplus / Deficit:$ 11,921.34

– Operational Reserve Account

Beginning Balance:$ 55,270.69

Inflow – Periodic Transfers:$ 0.00

Inflow – Interest:$ 4.69

Outflow – Periodic Transfers*:$ 0.00

Ending Balance:$ 55,275.38

* monies are transferred into/out of Operational Reserve Account (ORA)

as needed to cover expenditures, maximizing earned interest

– Reserve Account

Beginning Balance: $ 254,093.89

Inflow – Periodic Transfers:$ 0.00

Inflow – Interest:$ 21.58

Outflow – Periodic Transfers:$ 0.00

Outflow – One-time Transfers:$ 0.00

Ending Balance: $254,115.47

Target Ending Balance: $ 250,000.00

Surplus / Deficit: $ 4,115.47