Jan. 2021 Board Meeting Notes

As part of our ongoing effort to keep all owners informed of your HOA Board’s activities we are providing you this summary of our January 4th, 2021 meeting. Please note that we are also providing you with a copy of the outline/checklist provided to us by our attorney Todd Miller to guide us through the pending transition of finances and operations from the Developers to your HOA.

Those attending the January 4, 2021 Zoom meeting: Stephen Bell, President, Phyllis Zust, Treasurer, Keith Schmode, Secretary and Stacy Graves, Manager. Guests: Jim Posadny, Dock Committee Chair, Todd Miller, Legal Counsel and Mark Maasen owner of Poly Lift.

Management Report: Stacy Graves, Manager

• Management and staff have begun planning and preparation for the upcoming season.

• Russ Gaskin, HOA staff, is scheduled to attend the Vaughn pool school in March. This class will enable him to do some of the maintenance on the pool previously provided by ASP. Russ continues to work one day a week for the Developers in their building construction clean-up efforts as well as completion of the punch list provided to them by Management and the Board. The developers are being billed for his services.

• Most all of the unit closings will occur in the first quarter of this year. Once these are completed only the two penthouses and unit 1C, currently being used as

a construction office, will remain.

• Stacy has been reading numerous articles on elevator maintenance which she shared with the Board. There was considerable discussion regarding our ongoing elevator issues and the current maintenance plan with Schindler. A maintenance proposal as well as an inspection of our elevators was requested from Allrise (a reputable elevator company) in Lake Charles, Missouri. The inspection was completed and we have received their proposal for Board review. • Stacy has submitted an Evacuation plan for The Cypress which will be reviewed by the Board

Old Business:

• The Board reviewed the status of our Banking and Accounting services as we await the pending transfer of funds and other financial operations from the Developers.

• A meeting with Central Bank has been scheduled for the end of this month to insure we are ready for all ACH’s as well as the transfer of operating funds and reserves should that occur in the near future. • Our accounting provider (Evers) has been interfacing with Lori Reichert from the Developer’s office to align their accounting procedures with ours.

• There was discussion regarding an audit of operating funds as well as reserves prior to any transfer. This as well as the potential cost for such audits will be discussed in a future meeting.

• The Developers will be responsible for the 2020 Property taxes on the Cypress.

New Business:

• Jim Posadny, Dock Committee Chair joined the Board meeting at 2:00 P.M. to participate in a discussion regarding the most recent dock inspection conducted by Poly Lift. Jim noted that many of the items sighted on the inspection report are of a courtesy nature covering lift safety and maintenance. He also noted that some of the findings are of a more serious nature that are or will cause damage to our docks.

• Mark Maasen from Poly Lift joined the meeting at 2:40 P.M. to review the inspection he conducted. Over-all he stated that he inspection was “not terrible”. There were some serious findings what will result in damage to our docks. The most serious finding was on Dock A where the boat owner has attached a “stop lift kit” to the dock. While this “stop lift kit” keeps the boat’s top from hitting the roof or the dock it creates tremendous torque on the dock which ultimately will require extensive and expensive repair. He also cited examples of lifts that are low in the front and are picking up the back of the dock due to not floating evenly. In some of these instances moving the tanks forward or other adjustments can alleviate the problem. A lift being too large or too small for a boat can create pressure on the dock that impacts another owners lift. Mark further indicated that some associations require owners to use their chosen preferred providers for lifts and installation. These requirements are part of their association’s by-laws.

• Based on the inspection report, input from our Dock Committee Chair and our subject matter expert from Poly Lift the following next steps are recommended by the Board:

1. The dock inspection report will be sent to Jack Davis (Developer) for his review.

2. The dock inspection report will be posted to the owner website with a letter of explanation.

3. The Dock Committee will contact owners regarding the more serious issues that were identified.

4. The Dock Committee will meet to develop guidelines for what is allowed and not allowed on our docks as well as make suggestions of qualified preferred providers for lift equipment and installation etc.

5. Based on the guidelines that are developed the Dock Committee will bring forward possible By-law changes for consideration.

6. Additionally, the Dock Committee will extend an invitation to all boat owners for a meeting in the spring to discuss the dock inspection and guidelines going forward. Mark Maasen from Poly Lift will attend as a subject matter expert to answer questions about the inspection or any other areas of concern.

• Todd Miler of Miller Law joined the Board Meeting at 3:15 P.M. Todd presented and walked the Board through an outline/checklist to follow as we prepare for the owner to HOA pending transition. Todd suggested that we develop an MOU (memorandum of understanding) of what we are going to do and what the Developers are going to do to accomplish a complete and smooth transfer. He further suggested that we have an independent audit performed on all accounts that will be transferred to the HOA. The Board will seek clarification on what methodology/formula was utilized by the Developers to establish reserves. Todd advise the Board that the Developers have signed a limited warranty on the building that limits their liability to either 3 or 5 years. We will seek additional clarification from the Developers or their attorney regarding the limited warranty. The Board requested that Todd Miller speak to the Developers attorney (Todd Billy) to secure the Master Association Agreement which governs all of the parcels that were included in the Developers original project.

• The next meeting of The Cypress Board is scheduled for Monday February 1st via Zoom