Comments and Questions for BHVA Board of Directors December 20, 2022 from Amy Luersen

 Comments and Questions for BHVA Board of Directors December 20, 2022 

Amy Luersen, 5549 Lakewood Trail

Regarding the Board’s 2023 Special Assessment Letter, I have a number of comments and questions but first wanted to say that I greatly appreciate having the new Website. That is very helpful for community members, and I thank the Board for making that happen this year.

I.Concern: Raising the Monthly HOA fees by 20% to $456 annually and requiring a Special Assessment of $1700 all in one year totals $2156 for each household. This increase, on top of an increase of monthly HOA fees in 2022 ($360 annually) and 2021-2022 Special Assessment of $2900 for a total of $3260, is burdensome for all.

My thoughts are that we phase both the proposed improvements and the monthly HOA fees. I’m sure the Board has considered phasing so would appreciate an explanation of why all the increases are necessary in one year, especially on top of the recent significant payments in 2022.

II. Infrastructure Maintenance and Capital Improvements: In 2018, BHVA contracted for a Full Reserve Study to evaluate the infrastructure for the community. I was pleased to hear that the Board is updating this study. This was a good step toward a Capital Improvement Plan (CIP). I think it would be helpful for a full CIP to be developed that includes projects, anticipated costs, and timeframe for completion. A CIP would provide current and future Boards with a roadmap that would help ensure that critical projects are completed in a timely manner as well as allow us as a community to appropriately budget for these expenses.

2021-2022 Special Assessment- During the 12/19/2022 meeting an explanation of expenses related to previous Special Assessments included $241,985 for the Maintenance Barn/Facility as coming from the Capital Reserve Fund. However, at the Special Assessment meeting held on 9/21/2021, Will Kim stated “Maintenance Facility - $245,000. The rent that was paid to the Cooks will help pay for this facility.” A question from Barb Hunt – “Why are we not financing the maintenance facility?” Will Kim – “We have the cash”. (Minutes from Special Assessment Meeting 9.21.2021).

While the new Maintenance Facility was a Capital expenditure, the community was told that we had the funds, prior to the Special Assessments be implemented. It does not seem right now to allocate the expense of the Maintenance Facility to the Capital Reserve funds that were accumulated by the 2021- 2022 Special Assessment. It seems those funds should still be available for needed Capital Projects.

Potential Phasing of Projects:

I think most people in the community would agree that there are some critical investments needed to maintain and improve BHVA’s infrastructure. Given the scope of potential projects, I suggest that the improvements be phased and suggest the following:

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Top Priority - Safety issues to address in 2023: From the list provided in the letter, I would include the Pedestrian Bridge ($253,400); the Cliffside Drive Bridge engineering and replacement ($125,000); Beach Stairs Repair ($140,000). Total $518,400

Infrastructure Maintenance to address in 2023: Asphalt Crack repair and sealing ($25,000); Unsure what is included in Facilities Phase 2, but could that be deferred until 2024? Total either $25,000 or $50,000

Other Projects to Defer

New Lock Gate ($15,000); Beach Fence ($15,000); Amending the Declaration ($50,000) Survey ($50,000)

Total Deferred: $130,000 (or $155,000 if Facilities added)

It is unclear in the letter what the Engineering Expense ($50,000) is related to so unclear where that falls in the priority.

III. Monthly HOA Fees: Since 2020, monthly HOA Fees have risen significantly:

• 2020- $148 to $160 – 8% increase

• 2021- $160 to $190- 19% increase

• 2022- $190 to $228 – 20% increase

Total of 54% increase over three years that translates to an increase of $80 a month or $960 annually for every household.

To provide some stability for the community, allowing people time to budget and plan, as well as providing guidance for the Board on budgetary limitations, I would suggest phasing the proposed increase over at least two years.

Also, since the stated intent of the increase in HOA Fees is to “accumulate reserve funds to prevent BHVA from falling into a state of disrepair” ( BHVA 12/17/2022 letter to community), I would suggest that any increase in HOA fees be allocated to the Capital Reserve Fund so that we clearly accumulate Capital Reserve Funds to address capital projects.

IV. Transparency and Accountability:

It is noted in the letter that the Board met on November 21, 2022, and “after much deliberation” approved a budget that resulted in a 20% increase in monthly HOA fees. I searched the website for minutes of this Board meeting to better understand the issues and discovered that the Board has not published minutes for this or ANY Board meetings in 2022. However, in earlier years, Board meetings minutes were published. Community meeting minutes are provided but the critical decision-making meetings that the Board is holding are not transparent to the members of BHVA. This is not how a Homeowners Association should be operated. Please include minutes for all Board meetings, obviously redacted for Executive Sessions related to any litigation. This would be very helpful to the community in understanding the issues the Board is addressing on our behalf.

Thank you very much and I look forward to your reply.

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