draft minutes of the bcca december 10, 2012 board meeting board meeting 1… · 12/10/2012 ·...

BELCASTLE COURT CLUSTER ASSOCIATION MINUTES OF THE DECEMBER 10, 2012 MEETING OF THE BOARD OF DIRECTORS 7:00 PM at Scheeler Residence 1411 Belcastle Court Reston, VA 20194-1245 1. Call to order: President Kay called the meeting to order at 7:03 PM. 2. Roll Call: The following BCCA Board members and Cluster Association members were present: Board Members: Rodrigo Escamilla, Beej Jasper, Robert Kay, James Scheeler, Stephen Siciliano. Cluster Members: Stephanie Kay, Debra Casey and Glenn Jasper After a review of the attendees, President Kay determined a quorum was present and the meeting could proceed with the order of the agenda. 3. Comments from the President: President Kay thanked everyone for attending the meeting and requested that there be no interruptions during the meeting noting that everyone will have an opportunity to speak during the appropriate portion of the agenda. He then thanked the members of the Board for their hard work over the past five months. He said the Community has to understand we had only one volunteer to help us through the many tasks on hand. The Board was elected to make decisions for the best approach and to be cost effective. We are a Corporation that has to work within the guide lines of the Reston Bylaws and the codes of Virginia. We are required by law to maintain and replace as necessary the capital components owned by the Cluster. Unfortunately, we are trying to catch up due to the lack of attention and responsibilities from the past. Thankfully, we are moving forward. As I tell everyone, we are making a good out of a bad. Here is what we have accomplished:

• Updated all Resolutions including many from the past; • Met the goal to complete the Reserve Study by December;

BCCA MINUTES OF DECEMBER 10, 2012 BOARD MEETING

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• Kept official records and accurate minutes; • Dealt with individual homeowners issues; • Updated a Web site where all the documents will be available to the

Cluster; • Evaluated our finances for the present and the future; and • Represented the Cluster at seminars and meetings.

The main reason why I moved to Belcastle was because I did not have to worry about the maintenance of my property and the snow removal. I think this was why many neighbors are living in Belcastle. We are all getting older… I feel that Cluster members have three responsibilities:

• Maintain our own personal property – look at all of the remodeling being done lately.

• Make sure the annual budget covers current maintenances. • Make sure we look down the road financially to take care of items

not budgeted. 4. Adoption of the Provisional Agenda: President Kay called for any additions to the Provisional Agenda. Hearing none, a motion was made by Secretary Scheeler, seconded by First Vice President Jasper and unanimously adopted to approve the Provisional Agenda. 4.1 President Kay invited Members of the Cluster to ask questions or

comment on the Meeting Agenda. 5. Approval of the Minutes of the October 10 Cluster Board

Meeting recessed and reconvened on October 29, 2012: The draft Minutes of the October 10, 2012 Cluster Board Meeting recessed and reconvened on October 29, 2012 were attached to the Provisional Agenda for review by the Members of the Board. President Kay called for additions or corrections to the Minutes. Secretary Scheeler noted that in an e-mail dated 9 December 2012 Rodrigo Escamilla said “posting of the documents to the website is not the role of the webmaster, this is the role of the Secretary as the keeper of the association records, hence the following should be changed:”

From (In the Report of the Documents Review Committee, Assignments, fifth bullet point):


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Once completed, all applicable documents will be provided to each Association member and to Rodrigo for posting on the web with access limited solely to members To: Once completed, all applicable documents will be provided to each Association member and posted on the "residents" area of BCCA website

These quotes are from First Vice President’s report to the Board which was “received” by the Board following her presentation at the October meeting of the Board. The Board must decide who will be responsible for posting documents on the Website. It would seem the options are:

1. Webmaster 2. Secretary 3. A Service Agency

President Kay requested that the issue of responsibility for posting documents to the Web site be tabled to give him an opportunity to investigate and bring a recommendation back to the next meeting of the Board. Without objection it was so ordered. A motion was made by Secretary Scheeler, seconded by Treasurer Siciliano and unanimously adopted to approve the Minutes of the September 10 Belcastle Court Cluster Association Board Meeting as distributed.. 6. Treasurer’s Report: Stephen Siciliano 6.1 Treasurer Siciliano reviewed the financial condition of the Cluster

and recommended appropriate action.

The balance in the Cluster checking account on 12/7/2012 was $11,424.04. This includes 16 of the 18 dues payments that were due December 1, as well as reimbursements for the two recently cancelled State Farm insurance policies. These reimbursements totaled $643.48. Pending but unpaid on 12/7/2012 were 3 invoices totaling $2,239.92 (landscape contract, trash, and P.O. Box renewal). As of 12/7/2012, the balance in the Cluster’s Reserve Account was $21,578.29. This consisted of 4,449.123 shares of a short-term bond fund (PRWBX) at $4.86/sh. The balance in the contingency fund was $14,078.82.Of this, $9,341.00 is in a federal money market fund (VMFXX); and the remaining $4,737.82 in an inflation- protected securities fund (VIPSX—313.348 shares at $15.12/sh.). Treasurer Siciliano anticipates the new investment committee will meet in early January.


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In the course of obtaining a new liability insurer, we were asked whether the Cluster commissions outside audits from time to time. I was compelled to say “No”. Although my response did not result in a higher premium than had previously been quoted, I believe that independent audits are an important part of sound internal controls and should be considered by the Board. Following discussion it was agreed that the issue of outside audits would be on the Old Business Agenda of the January meeting of the Board. Our new insurer also asked whether the Cluster’s bank statement is reconciled every month by someone other than the person who regularly manages the account, i.e., by the Treasurer. As all of you know, however, I and my predecessors have been performing both functions. My response was not well-received by the insurer. The insurer’s agent agreed to accept an answer of “Yes”, however, in exchange for a commitment to rectify the situation immediately. Accordingly, and effective immediately, the President or another member of the Board must review the bank statement and check record monthly. Following discussion a motion was made by Secretary Scheeler to add a monthly review of the bank statement and check record by the President or his designee. Following discussion, First Vice President Jasper, with President Kay’s concurrence, recommended amending the motion to strike the phrase “or his designee”. Secretary Scheeler agreed to strike the phrase from his motion. The amended motion was then seconded by First Vice President Jasper and unanimously carried. Noting that the Reserve Study will be presented for consideration by the Board later in this meeting, Treasurer Siciliano pointed out that the cost of potential near term actions recommended in the draft Reserve Study varies between $14,475 and $28,350, depending on whether the dock is repaired or replaced; and it is likely that the dock repair option, if selected, will cost more than the lower of those two numbers would indicate. These costs may well exceed the amount currently in the Reserve Fund. It would appear that, subject to the Board’s review and consideration of the Reserve Fund this evening, the inadequacy of that Fund in the short run has been confirmed. The trick, of course, is to reconcile our duty to maintain the common ground with our duty to maintain an adequate reserve fund.

6.2 Treasurer Siciliano reported on the status of his Cluster insurance analysis.

Effective 11/19/2012, the Cluster has a new liability insurer—State Farm has been replaced by Community Association Underwriters, a company


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that writes policies specifically designed for homeowners’ associations. The yearly premium is $1,923, versus the $1,048 that we paid to State Farm. We have received a reimbursement from State Farm for the current fiscal year, as indicated above. The premium on our new liability policy ($1,616), which includes errors and omissions, is guaranteed for three years. These numbers include a $100 fee for adding the Reston Association as a named insured, which RA requires us to do. Basic liability coverage limits on the new policy are comparable to what we had with State Farm. We now have coverage for discrimination claims and claims for other than money damages, however, which was not available from State Farm. These two kinds of suits are brought with considerable frequency against homeowners’ associations. When I inquired of State Farm regarding coverage for discrimination claims, I was told they will not write it and was referred to the internet. We also now have workmen’s compensation coverage. It appears the Cluster can be sued if one of its contractors fails to abide by its responsibilities under the Workmen’s Compensation laws. There is no umbrella policy in the current package, however. Attached as Exhibit 1, is a copy of the Community Association Underwriters of America, Inc. Certificate of Insurance. Finally, I have looked into the procedure for joining the Community Associations Institute which, as you know, provides research on numerous useful matters to such associations. The membership fee is $114/yr. for access by one person, and $200/yr. for access by two. It was agreed that the issue of BCCA membership in the Community Associations Institute should be brought up as Old Business at the January meeting of the Board. Secretary Scheeler moved that the Treasurer’s reports be received and without objection the motion was unanimously passed.

7. First Vice President’s Report:

First Vice President Jasper presented the following reports: 7.1 BCCA Reserve Study Committee Progress Report;

Vice President Jasper distributed a PDF file containing the report to members of the Board November 26th

7.2 Implementation of Reserve Study in Current Budget Cycle: Treasurer

Siciliano:


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The Board discussed 1) sequencing of work in light of budget and

priorities, 2) whether to seek bids from additional contractors, 3) what can be afforded now and what additional funding should be considered.

7.3 Town hall meeting with the community (January) to discuss Reserve

Study: President Kay Following discussion a motion was made by Treasurer Siciliano that the Board approve the Reserve Study Report as amended as the basis for the Belcastle Court Cluster Association Twenty Year Reserve Program. The motion was seconded by Secretary Scheeler and was unanimously adopted. Following the approval of the Reserve Study Report it was agreed that the Board should hold a Town Hall Meeting for members of the Cluster on January 7, 2013 at the Kay’s residence to discuss the Reserve Study.

` 8 Second Vice President’s Report: Rodrigo Escamilla Second Vice President Escamilla will report on the Web site:

www.belcastlect.com Website BCCA has signed a 2 year contract with inMotion Hosting to host BCCA website and email. BCCA website has been created with the following features:

� Public Area. This is the main landing page of the site designed to

display content to the public in general � Residents Area. This is a restricted area of the website with

exclusive access to residents of Belcastle � Board Members Area. This is a restricted area of the website with

exclusive access to members of BCCA Board of directors � Access controls. 4 roles have been created to restrict access to the

website to the different groups described above

� The website was built using Joomla content management system and supports uploading different types of documents and images as well as setting access control on such content.


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� Detailed documentation has been developed to provide step by step instructions to upload and manage content by BCCA secretary. This documentation has been delivered to BCCA secretary and board members.

� Access to the Residents Area will be provided to the community

members via email by the President of BCCA.

� Some content has been added to the site and will continue to be added on an on going basis

Five email accounts have been setup for members of the board Following discussion Secretary Scheeler moved that the report of the Second Vice President be received and without objection the motion was unanimously passed.

9. Landscape Committee Report: Stephanie Kay Landscape Committee Chair Stephanie Kay reviewed her December 10, 2012 report on the following activities and issues: 9.1 Verizon cover has been replaced at Rodrigo's house 9.2 Fairfax County Maintenance & Storm Water Management Division

Contacted and met with Supervisor (703-877-2800) to evaluate a dilapidated storm drain structure and surrounding ground erosion. (left side of Belcastle and behind first guest parking spaces) Repair has been completed.

9.3 Sunrise Landscape Report

Notified residents of Sunrise schedule for pruning, grounds clean up and leaf removal. As stated in the approved 2/20/12 berm contract/proposal, Sunrise Landscaping & Design has removed only the trees posing liability, completed pruning of lower branches, grinding stumps and maintenance of Junipers behind homes #1415 through #1423. Weather permitting; the third and final leaf removal is scheduled for the week of December 10.


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9.4 Tree assessment by Thrive

BCCA Board members approved contract with Certified Arborist, Ron

Rubin of Thrive Plant Care for the BCCA Landscape Reserve Study. Full report was forwarded to all Board members.

9.5 AAA Refuse Removal Confirmed Wednesday’s as our contracted yard debris removal day. Yard debris removal will continue through the end of December. Stephanie Kay or the President will notify residents of Christmas tree removal schedule.

Following discussion Secretary Scheeler moved that the report of the Landscape Committee Chair Stephanie Kay be received and without objection the motion was unanimously passed.

10. Old Business 10.1 Review dock replacement cost estimates obtained by Vice

President Jasper as requested by the Board in response to Cluster Members’ comments; Beej Jasper

The estimates were reviewed and received by the Board 10.2 Resolution R6-2012-12-10 Revised Role and Responsibility of the

Treasurer; Beej Jasper Following discussion a motion was made by Treasurer Siciliano, seconded

by Secretary Scheeler, and unanimously passed that resolution R6-2012-11-20 Revised Role and Responsibility of the Treasurer is adopted by the Board.

10.3 Resolution R40-2012-11-12; Concrete Replacement and Repair Contract,

Beej Jasper 10.4 Resolution R41-2012-11-12, Dock Replacement Contract, Beej Jasper 10.5 Resolution R42-2012-11-12, Dock Path Replacement Contract, Beej

Jasper.

Following discussion it was agreed that President Kay will review the cost estimates for the work with contractors to confirm the project description and scope of work for Old Business items 10.3, 10.4 and 10.5, and these items will be placed on the Old Business agenda for the January meeting.


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11 New Business:

11.1 Sheds on Cluster Member property and/or attacked to residences:

Alberto Donoso inquired whether he could erect a shed on his property. Sarah K. Marsden, Reston Association Covenants Advisor, reported that Belcastle Cluster can submit a DRB application requesting a cluster standard be created regarding sheds, specifically to prohibit them. It will be up to the DRB to approve or disapprove Belcastle Cluster request. She attached a copy of the DRB application form, which must be signed by at least three Belcastle Cluster officers (any combo of: president, vice president, secretary, treasurer) and submitted to her attention. Once the completed application is received by Reston Association a schedule for the review by a 3-member Panel of the DRB will be scheduled, typically on a Tuesday evening. At least one representative from the Belcastle Cluster board must be present at the review in order to discuss your request. First Vice President Jasper has completed the DRB form requesting a change in the BCCA standards prohibiting the building and installation of sheds and other storage facilities, whether attached to the home or free standing. DRB will review the request on Tuesday, December 18 and make a decision. First Vice President Jasper will represent the Cluster at the DRB review meeting.

First Vice President Jasper made a motion, seconded by Secretary Scheeler, and unanimously passed that the Board ratify the application.

11.2 Rodrigo Escamilla reported that the issue of financial audits of books of community associations was a prominent issue at an RA seminar he attended recently and he wondered if BCCA Board should include this in the treasurer's responsibilities. In response Treasurer Siciliano expressed the opinion that the Treasurer cannot do the audit, since to an extent the Treasurer is the one being audited. He suggested the Treasurer could participate in procuring an auditor, so long as others are involved.

Treasurer Siciliano suggested that 1) it would be a good idea to have an

independent auditor inspect our books periodically; 2) he has not looked into what that would cost; 3) To the best of his knowledge, Belcastle has never done an audit; 4) Treasurer Siciliano felt required to advise Community Association Underwriters of America, Inc. that Belcastle does not commission audits. This did not increase the BCCA premium.

There was Board consensus that Treasurer Siciliano should investigate costs and procedures and report his findings to the January meeting of the Board.


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12. Date and time of next meeting:

The next meeting of the Board will be held on January 21, 2013 at the Siciliano residence.

13. Community Input:

Glenn Jasper suggested that 1) menus be developed for the Web site for quick access to Resolutions and other postings and 2) landscape maintenance contracts should contain provision for pruning up to 20 feet.

14. Board Executive Session.

No executive session was called for.

15. Adjournment:

There being no further business, at 10:25 p.m. a motion was made by Treasurer Siciliano, seconded by Secretary Scheeler and unanimously passed that the meeting be adjourned.

Respectfully Submitted,

James A. Scheeler, Secretary January 6, 2013


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Exhibit 1: CAU Certificate of Insurance