THE GLEN OF PACIFIC GROVE HOMEOWNERS ASSOCIATION

THE GLEN OF PACIFIC GROVE HOMEOWNERS’ ASSOCIATION
BOARD OF DIRECTORS
SPECIAL BOARD MEETING 

June 23, 2004
Shoreline Office Building
1200 Piedmont Avenue
Pacific Grove, CA 

AGENDA

1.0       CALL TO ORDER    6:00 PM                                                                      

2.0       ROLL CALL

Candy Pollock              Director            Present
Jack Rutherford            Director            Present
Jim Ray                        Director            Present
Jack Rugar                   Director            Present
Glen Grossman             Director            Present

Managing Agent Joseph Chaffers -        Present

Members present – Wolfgang Haas (#11), Rodger Axt (#13), Connie Shelstad (#19), Marce Humphrey (#42), The Kakises (#48), Diana & Rick Busman (#71), Faye & Ken Morley (#86), and Greta Harpham (#96).

Homeowner Rick Busman, Chair of the Budget Committee, gave the Committee’s report via a PowerPoint presentation of the money needed to paint The Glen this year and replace the roofs in 2008.

1. Legislation in Sacramento if passed will require 70% funding (70% of the money needed to pay for reserve account items). The Glen’s Reserve Account is only 32% funded. The Reserve Account is under-funded; it must be increased if the roofs are to be replaced in 2008 and if The Glen is to stay above the 70% reserve funding level. The committee proposes an increase in the Reserve Account of $27.65 per unit per month.
2. The Glen spent more on operations this year then was budgeted. The Glen is projected to spend more next year than this year. The committee proposes an increase in the Operations Account of $21.35 per unit per month.
3. Approximately $24,887 was borrowed from the Reserve Account to pay for operating expenses. The Board is required by law to adopt a plan to repay that loan. The committee identified three options: a one-time payment of $414.84 per unit; a special assessment for one year of $34.57 per unit per month; or a special assessment of $12 per unit per month with additional special assessments in the following two fiscal years.
4. The committee projects dues increasing to $349.50 on 9/1/05, to $404.50 on 9/1/06, to $465 on 9/1/07, to $506 on 9/1/08, and then decreasing to $397.50 on 9/1/09.

The Board unanimously approves the motion of the Budget Committee and approves increasing regular dues from $245 per month per unit to $294 per month per unit effective September 1, 2004.With respect to the $24,887 borrowed from the Reserve Account to pay for unanticipated operating expenses, Grossman notes that without a majority vote of the membership, a special assessment is limited to 5% of the current dues. Five percent of $245 is $12. Motion by Grossman, seconded by Rugar, to issue a special assessment of $12 per unit per month effective 9/1/04 with the board to adopt a plan next year to repay the balance of the $24,000 loan. Motion passes.