PGA West Residential Association, Inc.

Annual Homeowners’ Meeting Minutes

Saturday, March 8, 2008

8:00 AM

Board Members Present

• Mike Fry, President
• Richard Moore, Treasurer
• Ed Cleveland, Secretary
• Ray Shaffer, Director
• Richard Sparks, Director
• Nancy Aprile, Director

 

Board Members Absent

• Carl Brooks, Vice President

Also Present

• Michael L Walker, General Manager
• Kelly McGalliard, Operations Manager
• David Peters, General Counsel

 

Mike Fry, President, called the 23rd Annual Homeowners’ Meeting to order at 8:00 AM on Saturday, March 8, 2008, at the PGA West Residential Association Customer Service Center.

 

Michael Walker, General Manager, established a quorum, stating the number of homeowners present in person or by proxy, exceeded the number of homeowners required to meet a quorum, which is 471.

 

Mike Fry informed the homeowners that effective July 1, 2006, Civil Code Section 1363.03 changed the voting procedures as it relates to the election process of the Association’s Board of Directors.  The Association has retained the services of independent inspectors of election to count the ballots.  Homeowners were instructed that they may cast their ballots at this time, or after each candidate has presented their speech.   A Special Board Meeting will be held concurrently with this annual meeting to count the ballots.  Homeowners were invited to observe the ballot counting process.  The inspectors of election will stay until all ballots have been counted.  Mike Fry called the Special Board Meeting to order at 8:15 AM.

The Association’s General Counsel, David Peters, was in attendance to answer questions regarding the election process.  No one questioned the process.

Mike Fry extended the Board of Directors’ thanks to Carl Brooks for serving on the Nominating Committee as Chairman.

 

Election of Directors

Mike Fry announced there was one candidate in addition to the incumbents to consider for election to the PGA West Residential Association, Inc. Board of Directors.  The candidates for the Board of Directors were introduced.  They are:  Mike Fry (incumbent), Richard Moore (incumbent), Ed Cleveland (incumbent), and Russ Long.  Mike called for nominations from the floor; none were elicited.  Mike Fry asked for a motion to close the nominations.  Don Mann made a motion to close the nominations.  Seconded by Matt Nelson; passed unanimously.  Mike Fry announced there are three open positions on the Board of Directors, and four candidates.  Mike Fry introduced himself as the first candidate and gave a short presentation; each subsequent candidate was called to the microphone to do the same. 

 

Mike Fry explained the voting procedure and instructed those who have not yet voted to please cast their ballot. The inspectors of election began the counting process after all the ballots were received and the annual meeting resumed.

President’s Report

Mike Fry reported that the Association is in good order and is financially sound.  Our annual reserve study indicates that the Association has adequate reserves.  Our annual budget is close to $8 million, with 32 direct employees and approximately 115 contracted service personnel.  The efficient and responsive operation can be attributed to our exceptional staff, good leadership, willing workers and a committed Board of Directors. 

 

Mike Fry introduced each of the board members and explained their position on the board and participation in the various committees.  He also introduced Michael Walker, General Manager, Kelly McGalliard, Operations Manager and David Peters, the Association’s General Counsel.

 

Highlights of 2007

Mike Fry presented the highlights of the accomplishments for the Association during 2007.  There were 8,084 work orders completed in 2007, which is 12% less than in 2006.  This shows an increase in the Association’s productivity and response time as well as a decrease in homeowner work order related concerns.  The Board of Directors met with management for a strategic planning session. 

 

Sixteen topics were discussed that need to be dealt with in the future.  The board prioritized the issues and agreed upon the irrigation retrofitting and landscape renovation.   Because of anticipated water shortage and rate increases, we should be evaluating our landscape and our water usage.  Homeowners valley wide are responding to the impending water dilemma.  The Association must consider all methods to limit its water usage.  Other topics discussed in the strategic planning session that are priorities included replacement of tile roof underlayment and street and concrete replacement.  The board would like these items integrated into the reserves budget.  Mike Fry called Richard Moore to the podium to deliver the Treasurer’s report.

 

Treasurer’s Report

Richard Moore introduced himself and concurred with Mike Fry’s opinion that PGA West Residential Association is financially stable.  The Association operates within three funds; the operating fund, which is used to pay for general expenses, the reconstruction fund, and the reserve fund.  Richard Moore thanked Marshall Johnson for setting up the accounting system that has worked well for many years.  Richard Moore was pleased to report the PGA West Residential Association, Inc. operating expenses for 2007 overall will be under budget.  Homeowners have an opportunity to approve an IRS ruling, which allows the Association to carry over excess funds from 2007 to 2008.  This authorization can be voted upon by homeowners at the same time you cast your ballot.

Richard Moore explained the increase this year ranged from 2½% to 3% depending on the type of unit in Residential One.  In addition to the Residential Association’s dues, we collect for the Master Association, which in 2007 was $77.00 per unit per month and in 2008 is $83.00 per unit per month.

 

Richard Moore mentioned the three different types of payment methods, direct debit, Visa or Master Card, or by mailing a check to our new lock box with a payment coupon.  If homeowners pay by mail they are encouraged to use the new lock box address.  The payment will get posted more rapidly.  Richard Moore also mentioned that if a homeowner finds himself or herself in foreclosure or any similar position, they should approach the Board of Directors to discuss a payment plan.  There are currently 41 accounts in delinquency, which equates to over $118,000. 

 

Reconstruction Manager’s Report

Mike Fry presented the Reconstruction report, including the completion of Phase Two, which consisted of work on 33 condominiums.  The Reconstruction Department is scheduled to work on 12 units, 2 auto courts and 1 pool deck in 2008. 

 

Open Forum

Karen Pelletier:  Ms. Pelletier states she walks around the neighborhood almost every day.  She is concerned with people speeding.  Ms. Pelletier stated that the speed bumps installed by Residential 1 last year were effective.  She does not believe that issuing tickets reduces the speeding problem. Ms. Pelletier requests that the Board install speed bumps throughout Residential 1.

 

Mike Fry stated that although the speed bumps slowed down traffic, they also posed a liability due to the potential damage to vehicles.  Mike Fry stated that he believes that issuing citations serves as a deterrent.  Ongoing discussions will continue regarding action by the Association that may cause residents to adhere to the speed limit. 

 

Don Mann:  Mr. Mann enjoys being a resident in PGA WEST.  He belongs to two other associations and he recognizes how well PGA West Residential Association operates.  Mr. Mann recommended that signs be put up all around, which say “Only You Can Avoid Future Speed Bumps.”  He stated the tactic has worked elsewhere.  Mr. Mann also recommended using radar in various places. 

Mike Fry acknowledged Mr. Mann’s concerns about speeding and reiterated that efforts will continue to be made to reduce speeding.

 

Ellaine Sultan:  Ms. Sultan questioned why homeowners don’t get their citation for two weeks after the infraction occurs and why homeowners are cited for their vendors.    

Mike Fry stated the citations don’t go to the vendor, they go to the homeowner because at present the Association(s) do not have authority over the vendor.  The CC&R’s obligate the homeowner to be responsible for their guests and invitees, including vendors.  Regarding the timing of homeowners receiving the citations, Mr. Fry informed Ms. Sultan that we process and mail the citations and notice of hearing letters in accordance with statutory requirements.   

 

Bob Pantanella echoed the concerns pertaining to speeding.  Mr. Pantanella thought Don Mann’s idea about adding signage was a good one.  He stated education is the most important component in traffic enforcement.  Mr. Pantanella indicated that radar displayed speed carts encourage compliance with the speed limit.  The Master Board recently approved a small trailer radar cart and it will be purchased in approximately 30 days.  The enhanced traffic enforcement program has an impact and stimulates traffic safety.  Bob does not think it is right that homeowners are receiving citations for the vendors.  The Violations Committee and Master Board are working hard to solve this problem.  A new vendor access program has been launched and has been very effective.  In the future vendors will be held responsible for their actions by impacting their access. 

 

Roberta Minichiello:  Mrs. Minichiello stated that she followed a man in his vehicle into the Tennis and Fitness Center and admonished him about going too fast.

Bob Pantanella recognized Mrs. Minichiello and was glad she took a proactive position, but cautioned that residents should not be confrontational, rather they should report violators to Gate and Patrol so that they may respond.

 

Don Mann:  Mr. Mann stated issuing tickets is not a comfortable situation for anybody, he said it is like putting a fire out on a house that is already burned.  We should be thinking about prevention.

 

Bob Pantanella recognized Mr. Mann by stating that he made a great point.

Stephanie Gebert:  Ms. Gebert walks daily and she expressed her concerns about cars and trucks that don’t have a current pass or any pass at all.

 

Bob Pantanella stated that sometimes passes are left on seats and aren’t displayed.  Citations are issued to people when they don’t display their pass properly.

Ed Archibald:  Mr. Archibald stated that in his opinion prevention doesn’t work, fines work.  His position is, if the first fine doesn’t work, double the fine, if that doesn’t work, triple the fine and so on.

 

Mike Fry acknowledged the speeding problem and assured the homeowners that solutions are being sought.

 

Ms. Kidwiler:  Ms. Kidwiler asked if the Board would consider making the speed limit uniform throughout the whole property.

 

Mike Fry responded that a uniform speed limit in Res. I is being considered.  The board will discuss the issue in the Special Board Meeting following the annual meeting.

 

Darlene Varzak:  Ms. Varzak expressed concern about the tile roof underlayment and whether the reconstruction funds would be used to replace it.

Mike Fry stated the tile roof underlayment was not a construction defect.  Some homes in PGA West Residential Association are 20 years old.  The aging underlayment has sustained normal wear and tear; it is not considered to be of faulty construction. 

 

Karen Blush:  Mrs. Blush stated she received a bill for $37.80 from Burrtec Waste and Recycling Services.  Ms. Blush thought that trash pick up was funded through her homeowner’s association dues.  She stated she called Burrtec and wasn’t given a good explanation of why she was billed.

 

Kelly McGalliard stated that the Burrtec bill is likely correct.  Monday’s trash pickup should be paid through each homeowner’s property taxes.  Sometimes it takes a long time for Burrtec to get the trash service onto the tax bill.  Burrtec realized they were picking up more trash than they were getting paid for and they conducted an audit.  The homeowners that were not paying through their property taxes have now received a bill.  It should be a one time bill.  We have been advised that in the City of La Quinta homeowners paying for Monday trash pickup is not optional.  Tuesday through Saturday trash pickup is paid for through homeowner’s association dues.

 

Matt Nelson:  Mr. Nelson asked if the Board has been approached by Verizon, since they’re laying the Fiber Optic, to propose a similar package as Time Warner. 

Mike Fry stated that an agreement was signed with Verizon that allows them to come in, at no cost to the Association, and hookup their Fiber Optics under ground, so that Verizon can offer high speed internet now and at a later date they plan to offer video service to the Association. Verizon may eventually make a proposal to the Association for a bulk agreement like we currently have with Time Warner.

 

Verizon has not provided a proposal yet on a bulk agreement.  When the options are presented, it will be voted upon by the Board and a decision will be made in the best interest of the homeowners.  Verizon is digging up the streets and will be repairing the streets at their cost. 

 

Joyce Federgreen:  Ms. Federgreen stated that Verizon has patched up what they have done.  She asked who is going to pay for the final repair to the streets.

Mike Fry assured Ms. Federgreen that Verizon will be paying those costs.  The reasoning for the temporary patches is to ensure their Fiber Optic hookup is going to work.  Verizon will come back at a later date and permanently repair the patches. 

 

Ronnie Maravich:  Ms. Maravich stated there are other markings on the streets that don’t have anything to do with Verizon.  She is concerned that Verizon will repair the streets and another entity will come along and dig the streets back up.

Mike Fry stated Verizon will not make the permanent repairs to the streets until they know the Fiber Optics is working.  He explained to Ms. Maravich that the markings in the street are made to advise Verizon where the underground utilities are placed so that when Verizon does the Fiber Optic installation they do not disrupt other utilities.

 

Roberta Minichiello:  Mrs. Minichiello echoed Mike Fry’s statement that the markings are to let Verizon know that the marked areas are areas that cannot be dug up.

 

Mike Fry thanked everyone for coming. With no further discussion, Mike Fry called for a motion to adjourn the meeting.  Don Mann made a motion to adjourn the meeting at 9:10 AM.  Seconded by Matt Nelson; passed unanimously.  Mike Fry called for the Board to take a ten minute break and then reconvene to the Special Board Meeting already in progress with the counting of the ballots.  Mike Fry invited all to stay and attend the Special Meeting.

 

Respectfully submitted,

 

Ed Cleveland, Secretary
Board of Directors

 

 

 

Board of Directors’ Meeting