March HOA Meeting Minutes
Minutes
The Cypress HOA Board of Directors Meeting
March 8th, 2021
Attending: Stephen Bell (President), Phyllis Zust(Treasurer), Keith Schmode(Secretary), Stacy Graves(Manager), Jack Davis(Developer). Legal Counsel Todd Miller joined the meeting at 12:30 P.M.
Call Meeting to Order:
President Stephen Bell called the meeting to order at 11:00 A.M.
Approval of February 1st , 2021 Minutes HOA Board of Directors Meeting:
The February 1st, 2021 minutes of the HOA Board of Directors were approved as submitted by H. Keith Schmode HOA Board Secretary.
Developer, HOA Board and Management discussion on transition progress:
Jack Davis, Stacy Graves, Stephen Bell, Phyllis Zust, Keith Schmode
There was considerable discussion regarding the status of transferring operations and finances from the Developers to The Cypress HOA. Funds have now been transferred to the HOA accounts at Central Bank. Jack Davis indicated that the HOA will make necessary financial decisions during this transition period. Under the current arrangement the Developers will be responsible for any expenses that produce a deficit in the HOA 2021 budget. The HOA Board has asked the Developers for building plan documents as a component of the due diligence process. Jack Davis explained that the original builder (Kidwell Construction) gave no plans to the Developers even though they asked for them. The Developers took what plans they could find from various companies working within the building and had them put on cad files. There is some question about the accuracy of these plans since the builder made numerous changes within the structure. There are plans that will be made available to the HOA for work completed by our current Developers. (Stephen Bell, as well as Stacy Graves met with Rod Spooner, Peninsula Construction, regarding building plans and the drainage system). The Board will explore ways to have the existing cad files transferred over. Jack D. indicated that there is not one moment in time when anyone can be 100% assured that there will ever be a structural issue or design flaw with the building. The Developers believe the building is sound based on the standards and municipal codes that have been followed as well as the regular inspections of the structure. Checks and balances were put in place and followed.
The Developers own a residual plat of land outside The Cypress gate and adjacent to our property. There were questions regarding what kind of development might take place on that plat and what cross easement agreements exist for the road and other common elements. Todd Miller (Legal Counsel to the Board) will procure a copy of the cross easement agreement from the Developer’s attorney if it exists. Jack D. indicated that there are no current plans underway for the property. The Board raised the issue of the Developers putting deed restrictions in place for any potential builder. It was also suggested that at the very least the HOA Board would like to be included in discussions regarding the possible development of the plat. Jack D. assured the Board that they are invested in the success of the HOA and in maintaining the integrity of The Cypress project.
There was a discussion of what are Developer responsibilities versus HOA responsibilities for equipment and repairs of the building and its common elements. Once the transition occurs all common elements in the building will go over to the HOA. Common elements include the elevators, generator, pool etc. It was suggested that at the April 10th HOA Spring Meeting there should also be clarification on what are now owner responsibilities versus the Developer or HOA’s responsibilities for damages and/or repairs.
After Jack D. left the meeting the Board had a discussion regarding next steps in the transition. It was decided that President Stephen Bell would construct a transition letter to the Developers outlining what the HOA needs/expects to complete the due diligence process including our recommendation on what funding method from the Developers would align best with the 2021 HOA budget. (President Stephen Bell as sent the transition letter to the Developers and we are awaiting a response)
Management Report: Stacy Graves, Manager
Stacy G. submitted a number of bids and configurations for trash pick-up. After Board review is was decided to have her make a recommendation regarding the best option. (The current trash collection plan is to add a third day of pickup. Stacy G. will continue to evaluate this and adjustments will be made as necessary).
It was reported that there does not seem to be significant damage to the docks due to the Lake freeze. Stacy will know more once the Lake level comes back up.
There was discussion about the need to clarify Managements role with various owner’s requests as well as staff versus owner responsibilities. This will be added to the April 10th agenda for the Spring HOA Meeting.
Old Business:
Construction cleanup is still in progress.
Cataloguing construction materials is also still in progress.
It was decided to use Schindler as our elevator service company. There will be revisions to the contract including more frequent service visits.
All HOA accounts have been set up at Central bank and funds have been transferred from the Developers to the HOA.
Two attempts have been made to deliver a certified letter to the individual with the stop kit on dock A. Stacy G. will send an email to them stating that the stop kit needs to be removed from the dock to avert potential damage. (The stop kit has been addressed with the Majestic resident and has now been turned over to our Legal Counsel, Todd Miller)
Stacy G. will attend a meeting with Ameren on March 8th to determine if they will grant our request for buoys to be placed 100 feet from the end of our docks. (Ameren has approved 3 buoys. Stacy Graves attended the hearing and as a result the committee may consider a fourth buoy. The cost of the buoys with lights and installation is $700 per buoy).
New Business:
Due to the unprecedented cold there was damage to a drain pipe in the lower level parking lot. The drain pipe from the roof froze. When the ice melted the pressure from the water draining from the roof caused the drain pipe in the lower level parking lot to burst. The estimate for repairs is $3,600. Steps will be developed to help prevent this from happening again. (The storm damage will be repaired by Central Mo. Plumbing. They have made suggestions for next winter to help avert this from occurring again. The HOA Board will review their recommendations at a future meeting).
An evacuation plan for the building is being developed. Wind loads for the building will also be researched. (The evacuation plan has been completed and will receive a final review by the Board. The Fire Safety inspector will also do a review of our fire extinguisher equipment and plans).
A Finance Committee for the HOA is in the process of being developed. This will be completed by the April 10th HOA Meeting. (Four Owners have accepted the invitation to be on the Finance Committee).
The Board will establish an agenda and meeting date for all Committee Chairs in preparation for the busy season at The Cypress.
Todd Miller (Miller Law) joined the meeting at 12:30 P.M. There was considerable discussion regarding the amount and level of due diligence that has been pursued by the Board to affect a smooth transfer of finances and operations from the Developers to the HOA. It was determined that the Board will pursue an independent third party Reserves Study. (The Reserve Study has been approved by the Board and will be conducted by Rocky Miller who has done similar studies for other HOA’s in the Lakes area) For a qualified organization to conduct the study the Board will need the cost of major building components from the Developers as well as the funding methodology they utilized to create the current Reserve Fund. An appraisal of the building will also be necessary. It was determined that initially the Board will look at the appraisal from our current insurance provider. The Board will begin the process of meeting with our insurance broker to determine if our current coverage for the building and its major components is adequate. It was determined by the Board that if the Developers agree to the due diligence requests delineated in the transfer letter from President Stephen Bell we will move forward with the transfer. The Boards Legal Counsel agreed that the Board has conducted as thorough a due diligence process as they can given the nature and history of The Cypress project. The Board requested that Todd Miller attend the April 10th HOA Meeting.
The Board will meet again on April 5th 2021 to prepare for the Spring HOA Meeting on April 10th 2021.
Adjournment:
President Stephen Bell adjourned the meeting at 2:30 P.M
Respectfully submitted
H. Keith Schmode (Board Secretary)