RIDGEMARK UNIT XI HOMEOWNERS ASSOCIATION BOARD MEETING

MINUTES FOR AUGUST 13, 2019

RIDGEMARK CLUBHOUSE

Board Members Present:  Bill Baker, Harry Hill, Bart Racca, Paul Namkoong, Mike Kivlehan, Parris Giunta

Visitors:  Heidi Lipp, Pepper Hughes, Vesta and Jim Maxwell, Bob and Arlean Howell; Joe and Jackie Smith; Neil Volosing; Jerry Lane; Carl and Maria Anderson (RM HOA)

Minutes:  The minutes of the Board Meeting of May 14, 2019 were approved by voice vote.  Copies were available for interested visitors.

Financial:      

Mike Kivlehan reported he had done an analysis of the books since taking over as treasurer.  He said we would run a surplus of approximately $500 per quarter if our current expenses stay in line with the past.  However, if we incur any additional legal expenses that were not budgeted this could be a problem in the future.

He reported we cashed in one CD of $120,000 to pay for the road resurfacing that costs $68,000. The remainder was placed in a CD at Union Bank for $50,000.  Cash in the checking account as of 8-12-19 is $ 20,511.

Mike reported there are 15 delinquent accounts and three are over 120 days late and will be receiving letters for payment.

Architectural Review Committee:

The committee members of Paul Namkoong, Bart Racca, and Parris Giunta reported there were a few requests for solar panel reviews but nothing unusual to discuss.

Landscaping Committee:

There was a discussion about the quality of landscaping work being done by the new landscaping company, Al Fresco.  The director for the Landscaping Committee, Carol Reed, was absent from the meeting.  The board agreed to ask Carol to take this up with Al Fresco management.

Roads and Guards Report:  Bill Baker reported that the Roads and Guards Counsel, made up of all the Ridgemark homeowners associations, decided to replace the Securitas Company with Allied Universal effective September 1, 2019.

Bill reported that this decision was a decision made by all the member HOA’s after several meetings with the Allied Universal management and checking out their performance with other residential communities in Monterey county and San Benito county.  Bill said he felt that the management of Allied Universal was better than Securitas, and agreed they would do a better job of providing security services.  He reported that one of the Allied Universal management team lives in Ridgemark.  More details about the new security will be provided after the next Roads and Guards meeting in August.

Resurfacing Roads:  Harry Hill reported the resurfacing of RM XI roads was completed in June. The total cost was $68,000.  He noted that “SLOW” was placed on the roads at the top of Paullus, before the intersection of Paullus and Ridgemark, and before the cart paths crossing Paullus.

Neil Volosing asked about the resurfacing of the path at the end of Paullus. He said the path was a part of RM XI HOA roads.  Harry Hill said he was not aware the path was part of RM XI roads but agreed to discuss this with the owner of the company that did the resurfacing.

Storage Locker Rental: Mike Kivlehan reported that it was decided to stop using the storage locker at Mini Max Storage.  The monthly cost was $71 and it was used to store the plans for homes built in RM XI and board of director minutes and ballots.  Mike and Bart Racca moved the contents to the Kivlehan’s garage.

The board discussed the distribution of the blueprints back to homeowners, if they wanted to pick them up at the board meeting in November.

If was decided to review the retention policy in the RM XI  By-Laws before taking any further action. 

Meeting with Angel Company: Bart Racca and Bill Baker reported on their meeting Geary Coates, the representative for the Angel Company of which Mr. Wynne is a partner.  The meeting was on August 1, 2019 at the Ridgemark Clubhouse.

Bart and Bill presented Coates with a list of talking points that were developed by the boards legal counsel, Paul Rovella a parter at JRG Lawyers. Below are the talking points and  proposed solutions:

1.       Road Ownership

a.      Ridgemark XI owns all of Paullus Drive and a portion of Ridgemark Drive (“Ridgemark XI Roads”).

b.      These roads or portions thereof, were excluded from the Ridgemark HOA settlement agreement and easement.

c.       The Ridgemark XI Board is tasked with managing the Ridgemark XI assets for the benefit of Ridgemark XI members.

d.      In reviewing the details of the Ridgemark Project, it includes the development of 46 units within Ridgemark XI boundaries that will use Ridgemark XI Roads temporarily for construction and permanently for residential access.

Proposed Solution: Angel Company LLC has recommended changes to the settlement agreement with the RM HOA board of directors that the new roads created in Phase 3 and Phase 5 be deeded to Ridgemark XI HOA.

2.       Temporary Construction Road Use/Access

a.       Issue:  Ridgemark XI Roads will be used during the construction process for movement of equipment and Supplies/Materials.  This will result in a heavy taxation on Ridgemark XI facilities.

Proposed Solution: Temporary Construction Easement with mutually beneficial terms:

Access to developer/contractors/subcontractors for access for construction uses only during hours set by County for construction

Agreement by developer/contractors/subcontractors to indemnify defend and hold harmless Ridgemark XI for any damages to roads caused by developer/contractors/subcontractors during construction use, including returning roads to condition immediately prior to construction uses.

3.       Permanent Residential Road Use/Access

a.       Issue:

i.      Based on most recent plans dated April 2019, there are 46 units (42 units in Phase 3 and 4 units in Phase 5) that will be built within Ridgemark XI’s boundaries, however,  Ridgemark HOA Settlement Agreement requires all 190 units to be annexed into Ridgemark HOA.

ii.      Ridgemark HOA does not contribute to cost of repair and maintenance of Ridgemark XI Roads and Ridgemark HOA has different (but similar) architectural standards.

b.      Proposed Solution:

 i.      An amendment to the Settlement Agreement that allows the 46 Units within Ridgemark XI Boundaries are annexed into Ridgemark XI; or

 ii.      A Dues Sharing Agreement between Ridgemark XI, Ridgemark HOA, and Developer that provides for the following:

1.       A portion of the dues paid to Ridgemark HOA by the 46 Units in Ridgemark XI is split with Ridgemark XI in an amount sufficient to cover those unit’s portion of the road maintenance and repair costs; and

2.       Ridgemark HOA agrees to enforce Ridgemark XI’s architectural standards as to the 46 units or Ridgemark XI is allowed to participate in decisions of Ridgemark HOA architectural review committee for projects related to the 46 units in Ridgemark XI boundaries.

Bart and Bill emphasized that more work has to be done by Angel Co. and the RM HOA board of directors and homeowners to accept the recommended changes to their settlement agreement.  Bart pointed out that the next key date will be when Angel Company files their Environmental Impact Report (EIR) to get approval for their project.  If RM XI has not seen the changes to the settlement agreement, we should file complaints to the County on the Angel Company project during the 45 day review period after the EIR is filed with the county.

Racca and Baker took questions from the visiting homeowners.

Retention Policy: The board had a discussion on changes to the retention policy.  Since it was unclear whether a vote by the homeowners was needed to amend the policy the topic was tabled by Harry Hill until further review by the board.

Fall Street Party:  There was discussion from the board members and visitors on having a street party in October or November.  Some locations were discussed.  It was decided to form a committee to work out the details.

There being no further new business, the meeting adjourned at 8:30 pm.

The next board meeting is scheduled for Tuesday, November 12, 2019 at 7:00 PM.

Prepared and Submitted by:

Bill Baker

RM XI HOA

Secretary