An update from your Cypress HOA Board
An update from your Cypress HOA Board
We are very pleased that the Cypress website and Owners portal are now up and running. This gives us the opportunity to provide you with periodic updates on your Board’s activities. The minutes of the October 3rd HOA Special Meeting are also posted on this site. We encourage you to read those minutes if you have not already done so. This summary of Board activity picks up immediately following that October 3rd Special HOA Meeting. While it is not possible to cover everything in this brief update we will certainly try to highlight some of the most important points. The Board officially met on 10/03/20, 11/04/20 and 12/07/20. There have also been several working sessions between official meetings. Most of these meetings, with the exception of our October 3rd meeting, have been conducted on Zoom.
The Board met immediately following the October 3rd HOA Special Meeting. Steven Bell (8D) was elected President. He was also assigned to be the Board Sponsor/Liaison for the Activities and Communications Committee. Phyllis Zust (9B) was elected Treasurer and was assigned to be the Board Sponsor/Liaison for the Dock Committee. Keith Schmode (5G) was elected Secretary and assigned to be the Board Sponsor/Liaison for the Pool Committee. It was agreed that we should begin an immediate search for an accounting firm and Bank to provide accounting and financial services to the HOA in preparation for the potential transfer of finances and accounting to the HOA on January 1st, 2021.
At the November 4th meeting the Board had significant discussion regarding the 2021 preliminary budget prepared by our Treasurer. The discussion included a review of current assessments on sold units, units sold but not closed, as well as the value of future assessments on unsold units. There was a similar discussion on Dock assessments. It was agreed that due to the thorough research and work of our Treasurer, in cooperation with the Developer’s accounting staff and our Manager, the Board gained significant insight and a clearer understanding of income, expenses and reserves as we prepare for the potential transfer of finances and accounting to the HOA on January 1st, 2021. It was decided that effective January 1, 2021 Evers and Company CPA’s L.L.C. will act as the accounting authority for The Cypress HOA. Quick Books software will be utilized to track HOA finances and produce budgetary reports. Central Bank was selected to be our local
banking partners. Stacy Graves gave the Board a complete Management update as she does at every meeting. Stacy stressed that she is very pleased with the performance of the HOA’s two employees, Russ Gaskin and Jan Meckley.
On November 18th there was a meeting/work session with Jack Davis (Developer) in his St. Louis office. At this meeting the Board requested numerous documents, agreements and building schematics essential to affect a smooth transfer of finances and operations from the Developers to the HOA. The Board raised the question of whether it would benefit the HOA more for the Developers to pay quarterly assessments on unfinished and not closed units or cover HOA budgetary deficits moving forward. Jack Davis indicated that at this point the HOA would come out significantly better, from a financial standpoint, with the Developers picking up the deficits (due to some unforeseen expenses) in our 2020 budget. There have been some expenses this year such as a new control board on the lobby side elevator. Thermostats and controls were installed in the stairwells and a washing machine and dryer have also been installed on site for our cleaning personnel. The Developers will cover these cost and nothing will be taken out of the HOA reserve account. It was agreed that we proceed with the agreement that the Developers will cover HOA deficits in 2020 but no decision was made regarding Developer’s paying assessments on unsold and not closed units in 2021. The Board will make a recommendation to the Developers after further review of the 2021 budget.
In a working session between the November 18th meeting with Jack Davis and our December 7th regular Board Meeting a decision was made to interview Todd Miller of Miller Law to ascertain if we should engage him to represent the HOA in the transfer of operations and finances from the Developers to the HOA. At our December 7th meeting, and after considerable discussion, the Board agreed that the HOA should engage our own independent counsel to perform due diligence in the transition process. It was MOVED, SECONDED and PASSED that Todd Miller of Miller Law be engaged to review The Cypress HOA documents, develop a transition checklist,
interface with the Developers’ Attorney Todd Billy of Sanford/Phoenix Law Firm and submit his estimated costs for representing the HOA during the pending transition.
The Board also recommended that the Developers fund all HOA deficits in FY 20. Contingent upon consultation with our newly engaged HOA attorney, we will make a decision about recommending that the Developers pay quarterly assessments on all unfinished and not closed units in FY 21.
In summary, your HOA Board has prepared a budget for 2021 that has a positive bottom line. While we gave our best effort to have a transition from the Developers to our HOA accomplished on January 1, 2021 it is clear to your Board that we do not have all of the information we need to complete that transition. We do feel with the development of a check list by Miller Law and open access to the Developers attorney we will have all of the documents, schematics and financial information needed to make a successful transfer in the 1st or 2nd quarter of 2021. Please keep in mind that what you have now read is only a brief summary of your Board’s activities. For more detailed information you are welcome to read the official minutes of our meetings located in Stacy’s office. Additionally, we want to assure you that the Board’s relationship with Jack and Dan (Developers) has remained positive and cooperative. Our next Board Meeting is scheduled for January 4th, 2021. Have a wonderful Holiday Season and we will look forward to keeping you informed in 2021.
Your HOA Board of Directors