Quillens Point Homeowner Associations October 3, 2015 General - - PowerPoint PPT Presentation

SLIDE 1

10 AM in the Great Room of the Mariner’s Bethel UM Church, 81 Central Ave, Ocean View

Quillen’s Point Homeowner Association’s October 3, 2015 General Meeting

SLIDE 2

Welcome New Neighbors

• Lot 22, 38964 Bayfront Dr. – Keith & Mary Boenning (also lot 85)
• Lot 29, 38916 Bayfront Dr. – Jeff & Tracy Holcomb
• Lot 61, 38793 Apple Ct. – Phil & Annette Arbaugh

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SLIDE 3

Water Operations

3 Year Jan Fed Mar Apr May June July Aug Sept Oct Nov Dec Total 2011 300,000 350,000 275,000 275,000 600,000 1,000,000 1,360,000 1,200,000 1,000,000 600,000 190,000 220,000 7,370,000 2012 300,000 180,000 200,000 400,000 650,000 900,000 1,100,000 900,000 700,000 900,000 400,000 200,000 6,830,000 2013 180,000 100,000 75,000 800,000 900,000 1,000,000 1,190,000 1,100,000 800,000 700,000 400,000 250,000 7,495,000 2014 250,000 200,000 250,000 290,000 900,000 1,200,000 1,400,000 1,300,000 1,200,000 800,000 400,000 230,000 8,420,000 2015 220,000 650,000 240,000 220,000 850,000 1,000,000 1,300,000 1,280,000 925,000 750,000 347,500 225,000 8,007,500 Average 250,000 296,000 208,000 397,000 780,000 1,020,000 1,270,000 1,156,000 925,000 750,000 347,500 225,000 7,624,500 Percent 3.28% 3.88% 2.73% 5.21% 10.23% 13.38% 16.66% 15.16% 12.13% 9.84% 4.56% 2.95% 100.00% TOTAL GALLONS PUMPED (numbers in red are estimates based on 2011-2014 volume)

Annual volume has been largely stable June-August is about half of the total annual volume May-Sept is about 66% of the total annual volume

• Quality – No E. Col. or Coliforms detected in either well
• Water Valves – Requested to have located by September. Not

all homeowners provided or marked location. Homeowners benefit since marking allows the plumber to quickly shut of the water at the street connection

SLIDE 4

Committee Activities Summary

• Architecture (James Rich) - numerous requests received and approved
• Roads and Grounds (Tom Farrah) – Drainage issue addressed by
• homeowner. Lights and irrigation issues at front entrance addressed.
• Recreation (Thomas Gilmore) – Tennis court trees trimmed, 16 of 18 marina

slips rented. Entrance gate repaired.

• Landscaping (Warren Smiley) – Grass height, tree trimming and debris

concerns addressed.

• Welcoming (Nell Hutchins, Connie Britell) – Several new neighbors
• Front Entrance (Hugh & Leona Conner) – New flowers and decorations for

the holidays.

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SLIDE 5

2016 Assessments & Fees

Important take aways–

1. Small increase over 2015 in trash only 2. Assessments and fees stable since 2012

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Assessment / Fee

(number of lots paying 2015)

Calendar Year 2012 2013 2014 2015 2016

Annual Assessment (99) $400.00 $400.00 $400.00 $400.00 $400.00 Water Fee (86) $180.00 $280.00 $300.00 $300.00 $300.00 Trash Fee (86) $276.00 $276.00 $276.00 $276.00 $280.00 Slip Rental (17, 16 in 2015) $375.00 $375.00 $400.00 $400.00 $400.00 Home Owner Grass Cutting (12) $240.00 $240.00 $240.00 $240.00 $240.00

SLIDE 6

Income & Expense Analysis

(excludes trash - $23,726 in 2015 - and annual HO grass cutting fees -$2,400 - that are passed on at cost)

Important take aways –

1. 55% of the expenses are set by contract – accounting, tax, insurance, H2O mgn. fees 2. Another 20% of the expenses are recurring - utilities or water treatment chemicals 3. Had a limited need for repairs or equipment replacement and recent budgets included a $5,000 safety net for unplanned repairs/replacement.

Income & Expenses by Assessment/Fee

(excludes items passed on to Homeowners )

Actual Income & Expenses 2015 Average 2012-15

% of 2016 Expenses

2012 2013 2014 Budget Actual

(as of Aug)

2016

Annual Assessment $39,600 $39,600 $39,600 $39,600 $39,600 $39,600 $39,600

Accounting & Tax Services

$5,191 $5,037 $5,587 $6,620 $3,916 $5,609 $6,145 9.6%

Insurance

$5,199 $5,429 $5,813 $5,900 $5,900 $5,585 $6,000 9.4%

Street Lights

$4,600 $4,850 $5,827 $6,900 $3,247 $5,544 $6,524 10.2%

Maintenance - Roads, Entrance, Rec Areas

$6,640 $6,874 $8,334 $7,100 $6,523 $7,237 $5,655 8.8%

Meeting & General

$5,084 $4,759 $3,237 $2,950 $3,082 $4,007 $3,725 5.8%

Total Assessment Expenses

$26,715 $26,949 $28,798 $29,470 $22,668 $27,983 $28,049 Annual Assessment Net of Expenses $12,885 $12,651 $10,802 $10,130 $16,932 $11,617 $11,551 43.8% Water Fees $15,480 $24,080 $25,800 $25,800 $25,900 $22,790 $25,800

Management Fees

$11,343 $19,081 $23,945 $24,000 $15,920 $19,592 $24,000 37.5%

Utilities & Chemicals

$8,753 $8,978 $8,462 $5,930 $5,529 $8,031 $5,930 9.3%

Operating & Maintenance Expense

$13,648 $5,696 $7,216 $5,000 $1,274 $7,890 $5,020 7.8%

Total Water Expenses

$33,744 $33,755 $39,623 $34,930 $22,723 $35,513 $34,950 Water Fees Net of Expenses

• $18,264
• $9,675 -$13,823
• $9,130

$3,177

• $12,723
• $9,150

54.6% Marina Slip Rents $4,125 $3,750 $5,200 $6,800 $5,285 $4,969 $6,800

Marina Repairs

$300 $1,903 $1,625 $1,000 $223 $1,207 $1,000 1.6% Marina Rents Net of Expenses $3,825 $1,847 $3,575 $5,800 $5,062 $3,762 $5,800 1.6% Bottom Line (expense safety)

• $1,554

$4,823 $554 $6,800 $25,170 $2,656 $8,201 100.0%

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SLIDE 7

Reserves and Cash Analysis

Important take aways –

1. We have about $79,250 in cash reserves of which $49,500 is the emergency assessment 2. We also have another $16,615 in cash if forced to pay DNREC

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Cash Saved for DNREC Contract 16,615 $ 16,615 $ 16,615 $ 16,615 $ 16,615 $ 16,615 $ Reserves/Equity Accounts (Updated after year-end, stays same on monthly balance sheet reports) Marina Reserve - Dec YE Balance Sheet 14,450 $ 19,560 $ 23,385 $ 25,232 $ 24,321 $ 1,736 $ Tennis - Dec YE Balance Sheet 663 $ 1,633 $ 1,633 $ 2,633 $ 3,633 $ 3,633 $ Retained Earnings - Dec YE Balance Sheet 4,652 $ 14,681 $ 9,749 $ 12,418 $ 33,043 $ 29,609 $ Dredging Reserve 1 $ 1 $ 1 $ 1 $ 1 $ Emergency Assessment ($500/member)

• $
• $
• $

34,555 $ 45,733 $ 49,500 $ Total Reserve/Equity Accounts 19,765 $ 35,876 $ 34,768 $ 74,839 $ 106,730 $ 84,478 $ Generator Value Included in Retained Earning (not cash)

• $
• $
• $

7,824 $ 6,520 $ 5,215 $ Cash Portion of Reserves/Equity Accounts 19,765 $ 35,876 $ 34,768 $ 67,015 $ 100,210 $ 79,263 $ Cash Generated From Operations Billed Components of Operating Net Income (Not used to fund operations) Emergency Assessment ($500/member)

• $
• $

25,245 $ 16,830 $ 7,425 $

• $

Generator Assessment ($150/member)

• $
• $
• $

14,850 $

• $
• $

Total

• $
• $

25,245 $ 31,680 $ 7,425 $

• $

Operating Results Overage/(Underage) 16,139 $ (1,634) $ 5,871 $ 5,217 $

• $
• $

Net Ordinary Income (From Dec YE Income Statement) 16,139 $ (1,634) $ 31,116 $ 36,897 $ 7,425 $

• $

Other Income (From Dec YE Income Statement)

• $

5 $ 9,270 $ 500 $ 500 $

• $

Other Expenses (From the Dec YE Income Statement)

• $
• $
• $

(4,476) $ (29,147) $

• $

Total QPHOA Income (from Dec YE Income Statement) 16,139 $ (1,629) $ 40,386 $ 32,921 $ (21,222) $

• $

Adjustment Post December For Tax Purposes (28) $ 522 $ (315) $ (1,030) $ (1,030) $

• $

Annual Income To Be Reallocated 16,111 $ (1,107) $ 40,071 $ 31,891 $ (22,252) $

• $

Cash Adjustments to QPHOA Income Pre-Payment of Emergency Assessment

• $
• $

9,310 $ (5,652) $ (3,658) $

• $

Cash Generated From Annual Operations 16,111 $ (1,107) $ 49,381 $ 26,239 $ (25,910) $

• $

TOTAL Year-End QPHOA Cash 52,491 $ 51,384 $ 100,764 $ 109,869 $ 90,916 $ 95,878 $ Uses of Cash From Operations - Calculated (Jan-Dec) Add to Marina Reserve 5,110 $ 3,825 $ 1,847 $ (911) $ (22,585) $ Add to Tennis Reserve 970 $

• $

1,000 $ 1,000 $

• $
• $

Add to Retained Earnings 10,029 $ (4,932) $ 2,669 $ 20,625 $ (3,434) $

• $

Add to Dredging Reserve 1 $

• $
• $
• $

Add to Emergency Assessment 34,555 $ 11,178 $ 3,767 $ Pre-Paid Emergency Assessment (Restricted) 9,310 $ (5,652) $ (3,658) $ Purchase Well House Generator

• $
• $
• $
• $
• $
• $

Total Uses of Cash From Operations 16,111 $ (1,107) $ 49,381 $ 26,239 $ (25,910) $

• $

Cash or Reserve Accounts Actual Year End Estimated Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

SLIDE 8

Summary of the 2004 Reserve Study

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Important take aways –

1. Study recommended that reserves (w/o) dredging be $75,000 and a $22,000-to- $23,000 annual contribution was needed to keep reserves at the $75,000 level 2. The CPI in 2004 was 188.90 versus 236.00 in 2014, about a 25% increase. The study also did not include several recent improvements. 3. Especially for the water plant equipment, annual repairs and preventative maintenance have resulted in longer “useful lives” than those used in the study.

SLIDE 9

Community Improvements Discussion

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Discussion points –

1. What is missing? 2. How to determine community priorities? 3. How to fund?

Rec Field Phase 1 - Recover path and re-establish grass $250-$400 Underway Budget surplus Marina - Replace existing ladders with ladders having more steps $600-$700 Spring 2016 Budget surplus Tennis Courts - Trim weeds and trees $1,250-$1,500 Completed Budget surplus Rec Field - Cut trees near Bayfront Drive $200-$250 Roads - Repaint around mailboxes and dips $250-$500 Front Entrance - Fix bulletin board, replace cedar shingles and stain shelter $350-$500 Mail boxes (internal) - Frame with 6x6 timbers and smooth stones $750-$1,000 Road Drainage - Fix hazard (front of lot 83) $1,000-$1,250 General - Re-instate cleanup dumpsters $1,000-$1,250 Well House - repair and stain fence, power wash building $1,500-$2.500 Rec Field Parking - Replace with weed barrier, stones and 6x6 timber framing $2,500-$3,000 Rec Field Phase 2 - Upgrade path, benches and frame well head $2,500-$4,000 Tennis Courts - Top , trim or remove trees and replace with mulch or stone $2,500-$4,000 Rec Field - Install flag pole (or at front entrance) unknown Front Entrance - Redesign including considering adding gates unknown Fire Suppression - Add hydrants linked to existing storage tank and inlet locations unknown Other 1 Other 2

Possible Community Improvements Estimated Cost Priority Funding Source

SLIDE 10

Road Right-of-Ways

Fact - The developer’s plat identifies that road right-of-ways (RRW) are 50 (entrance 60) feet wide and are common property. For most lots the edge of the RRW are 25 feet from the center of the road. The covenants/by-laws specify that the Board can grant easements in the RRW for utilities. Tradition – Homeowners (HO) maintained the RRW consistent with the HO landscaping plan and landscaping that was compatible with neighbors. Concern – Community is older and we can expect the need for utility repairs. Concerns regarding safety – vision at curves, barriers next to road surface. Plan to Address – Establish safety standards for what can be placed in RRW near the road and clarify HO responsibilities for utility repairs in RRW including electric, sewer, water, street lights, drainage and cable Note – The Board is investigating implications (recent adverse procession ruling in DE) and safeguards regarding HO improvements – trees, gardens, hardscaping, etc. – made on recreation field common property.

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SLIDE 11

Save Beach Cove

• Status –

1. ACE have not finalized decision, awaiting input from DNREC, no target decision date provided. 2. Filed letter with FDA regarding growing oysters in what is now defined by DNREC as prohibited shell-fish fishing zones. 3. Identified and retained an attorney (provided a refundable $1,000 retainer)

• Fund Raising Campaign –

1. Headed by James Bond (speaker at VFW meeting) 2. Warton’s Cove has contributed $3,000 for retaining the attorney 3. James has raised $11,000 in volunteer contributions include two (2) $1,000 contributions from Quillen’s Point homeowners 4. Ralph Begleiter has agreed to be the Quillen’s Point “Campaign Captain” if needed after the ACE decision is finalized

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