Thursday,
31 March 2005
In
Attendance:
Matt
Flanigan, President
Steve
Wheeler, Vice President
Allen
Urban, Treasurer
Ricardo
Urdaneta, Director, ACC Chairman
Rod
Strawderman, RCS Management
The meeting was brought to order at 7:30 PM, on
31 March 2005. Matt Flanigan, President, presided. A quorum of
homeowners was present / proxied.
1. Matt Flanigan, President:
a. Matt called the meeting to order and
thanked the homeowners for their attendance.
b. Matt explained the function of the Board positions, Board management
processes, and the election process.
c. Matt stressed the value and importance of the Board and the unusual
circumstances with three Board members leaving and another board position term
up for election.
2. Steve Wheeler, Vice President:
a. Steve reviewed the two ongoing processes
involved in the Bond Release.
b. One process involves the acceptance of the streets to VDOT. This
process has completed and passed the physical inspection. Next the
County must recommend to VDOT to accept the streets and then VDOT must act on
the recommendation. Both of these steps are administrative in nature and
each step takes 60 to 90 days to complete.
c. The other process involves common area including the dry pond
release. The final inspection had been scheduled when it was determined
that the 100 year spill way had not been constructed on top of the drain
gate. As this is a required element, the final inspection was postponed
for its construction.
d. Once the streets have been accepted by VDOT, we will fall within the state’s
snow removal plans and our street will not be privately plowed as they have
been. The private plowing has been paid for by Madison Homes, the
developer.
e. Steve also shared the potential of a Master Beautification Plan for the
Common Areas emphasizing that there would need to be funding for this type of
project or that it could be implemented over time.
3. Allen Urban, Treasurer:
a. Allen reviewed the historical financial
performance of the HOA and the budget for 2005. See attached notes.
b. The challenge facing the new board will be how to increase dues to cover
the operating expense shortfall that has been created by escalating costs,
primarily trash removal and the anticipated increase in grounds maintenance.
c. Allen asked if there were any questions.
4. Ricardo Urdaneta, ACC Chairman:
a. Ricardo explained the purpose of the ACC,
how it helps to retain/improve our property values;
b. Ricardo reported that the Homeowner Improvement Request Process is working
well;
c. The ACC is still conducting periodic property walkthroughs - this year's
annual inspection will occur within the next 45 days;
d. Ricardo asked if there were any questions.
5. Matt opened the Floor to the
Homeowners.
a. AAA Trash Removal has failed to pick up
the recycling bins on their new schedule and then they are picked up and
thrown in the trash. Rod will call AAA and discuss.
b. In the common area between Century Oaks and FOG believed to be County
owned, swing sets and trampolines are encroaching on the area. Some of
these items are falling into disrepair and becoming eyesores. It was
recommended to contact Century Oaks and the homeowners directly to discuss and
resolve in a neighborly fashion.
c. The Annual Picnic was discussed and it was offered that there would be
enough food and drink provided by the homeowners that the HOA could consider
foregoing the expense of the burgers and drinks. The cost of these items
is around $200.
5. Rod Strawderman, RCS Management
a. The annual Board elections were
conducted. Gary Jackson, Andy MacLean, Ed Sturms and Allen Urban were
elected to the open board positions.
6. General.
a. The next quarterly Board meeting is
scheduled for 7:30 PM, 26 April 2005, at Gary Jackson's home.
b. The meeting was adjourned at 8:30 PM.
FAIR OAKS GLEN HOA
Financial Notes
* Since inception (1999) HOA dues were
unchanged until a 5% increase was instituted for 2005. This increased the
individual homeowner’s dues $28.80 per year. With 43 homes in FOG HOA,
the cumulative increase in dues is $1,238.40 for 2005.
* FOG HOA BOD has the authority to increase
dues annually at the greater of 5% or the CPI (inflation index) without the
approval of the homeowners. Increases above this limit require approval of
the homeowners.
* Trash Removal and Grounds Maintenance account
for roughly 65% of our annual expenses. From what we spent in 2002 to our
expected expense in 2005, the annul cost of these services has increased $3,700
or 55%. This has been the primary reason that the HOA is now eating into
reserves to cover operating expenses.
* As long as Fairfax County continues to grow
and gas prices increase, Trash Removal costs are expected to increase.
* As we prepare to have the common property
come off bond release, additional grounds maintenance costs are anticipated.
* Our Annual Audit fee is in its final year of
a three year contract and will most likely increase.
* Our Management Fee has been held constant for
the last three years will be subject to review.
* If you assume costs will increase 5% per year
($1,437 in 2006), and assume 5% increase in HOA Dues ($1,300 in 2006), the
result is that we will continue to run a net income loss and continue to
diminish reserves. This is not sustainable in the long run and will need
to be addressed by the new Board.
