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Rainbow Lake Estates. Annual Meeting October 15, 2009. Agenda. Call to Order Year In Review Review of the Proposed Budget Including Road Maintenance Plan Approval of the Proposed Budget Election of New Board Members Volunteers for ARC, LC, and SC Direction for 2010 Open Discussion

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Rainbow lake estates

Rainbow Lake Estates

Annual Meeting

October 15, 2009


  • Call to Order

  • Year In Review

  • Review of the Proposed Budget

    • Including Road Maintenance Plan

  • Approval of the Proposed Budget

  • Election of New Board Members

  • Volunteers for ARC, LC, and SC

  • Direction for 2010

  • Open Discussion

  • Adjournment

Rules of meeting
Rules of Meeting

  • The HOA President shall be the Chairperson of the meeting

  • All participants shall have the right to be heard and shall have the right to complete their thoughts and comments

  • Time will be available to offer opinions, suggestions, questions, and comments

  • In an effort to respect all participants, let the speaker complete their thought

Other accomplishments since annual meeting 2008
Other Accomplishments since Annual Meeting 2008

  • Outlot A – meeting with commissioners

    • Initial Communication with County on Issue - July 07

    • August 3, 2009 Hearing

      • Mike Pirkey presented Board’s request for assistance to understand management of Outlot A with regard to Development Plan and Covenants

      • 14 properties represented

      • Minutes of the Larimer County Board of Commissioners can be found on www.co.larimer.co.us

      • BCC minutes, “According to the residual land plan, Outlot A may be privately owned but is subject to oversight and architectural review by the homeowners association.”

    • September 8, 2009 Findings

      • County regards Outlot A as civil issue, particularly as the Covenants apply

      • 8 properties represented

      • Minutes of the Larimer County Board of Commissioners can be found on www.co.larimer.co.us

      • Conclusions on subdivision of Outlot A, water rights, management of Outlot A, activities common to Northern Colorado, wetland usage, fence along CR 23, livestock, and pastureland.

  • Road repair

  • Prairie Dog mitigation

  • Increased Community Involvement

    • Progressive Dinner

    • Bike Parade

    • Bunco Party

    • Annual Cleanup – Rocks removed from outlots to reduce mowing costs

Thank you
Thank You

  • ARC –Sean Visger,Becky Martens, Lynn Teunissen

  • LC – Bonnie Foster, Lucino Ortega, Vic Adams

  • SC – Kathy Fetzer, Kim Pirkey, Cindy Edwards, Courtney White, Lisa Wagner

  • Mowing – Larry Dennis, Don Stackowiak

  • Website – Carol Price, Annette Thorsted

  • Directory – Kelsey Roberts

  • Active participation by many HOA members is appreciated

Top 4 comments we get each year about
Top 4 Comments we get each year about $

  • When are you going to mow the Common Areas?

  • The entrances look bad (mowing, water, weeds)

  • Weed spraying along fence and roads

  • Why can’t we do … improvement?

  • Each time these are addressed with the person inquiring, we are lead to conclude that Members do not understand where their $ are going. So ….

Where does your money go 2009 budget
Where does your money go?2009 budget

Unallocated reserves is a 14% contingency built into the budget for unforeseen expenses or ultimate allocation to reserves for future

This was the first year that asphalt reserves were budgeted, fate of PID was unknown at the time, but reserves needed to be allocated just in case PID did not materialize

There have been no funds budgeted for road or fence reserves since 2004

Where does your money go based on your 400 dues
Where does your money go?Based on your $400 dues

Budget history
Budget History

  • Landscape expenditures in 2005 depleted all reserves, including those designated for roads and fences

  • FY2005 shows a loss of about $3000

  • FY2009 - $12,670 for patching/crack seal of roads

2010 budget
2010 Budget

  • $400 for Operating Expenses

  • $600 allocated to Roads to accumulate funds when repairs are necessary

  • Quarterly payments

    • January 30, 2010

    • April 30, 2010

    • July 30, 2010

    • October 30, 2010

Hoa responsibility of roads
HOA Responsibility of Roads

  • County definition for the roads in RLE is “public access, privately maintained”

    • The roads are owned by the HOA, but anyone is allowed to use the roads

    • Since these are privately maintained, the County expects the HOA to maintain the roads

    • Since these are public access, the County does have authority to enforce repairs; the County can make the repairs and send the HOA the bill for those repairs

    • The pavement leading to the lake is Outlot E and is not a road in the County’s eyes, thus it is considered the HOA’s private property

  • Declaration of Covenants

    • Definitions, “Common Expenses”. Shall mean and refer to maintenance, insurance, taxes, repair, operations, capital improvements, …. Common expenses shall include, without limitation, the cost to maintain all landscaping within the Common areas, maintaining all fencing erected by the Declarant adjacent to the Common Areas, and maintaining of all roads shown on the plat of the property, ….

    • Assessments, “Common Expenses” shall mean and refer to the cost of maintenance and renovation of the Roads and Common Area, management and administration costs, legal and accounting fees, expenses and liabilities incurred by the Association pursuant to or by any reason of the Covenants and creation of a reasonable reserve fund. Only for the purpose of the cost of repair, maintenance and renovation of the Roads and common areas.

    • DURATION AND ALTERATION OF PROTECTIVE COVENANTS, …. Provisions for maintenance of the Roads and Easements and Common Areas shall not be permitted to lapse with the other Covenants unless other provisions are made for continuation of said Roads and Easements and Common Areas maintenance.

  • Conclusion:

    • The HOA is bound by the Covenants to have a plan in place to maintain the RLE roads, collect funds for the maintenance of the roads, and implement such plan

    • The County expects the HOA to properly maintain the roads

    • Even if the some or all of the Covenants are dissolved, the Members of the community are responsible to maintain the roads

    • Each Member is responsible to 1/71 (1.4%) of the cost of maintenance of the roads

Why is a road maintenance plan and implementation important
Why is a Road Maintenance Plan and Implementation Important

  • Property Value

  • Curb Appeal

  • Solvent HOA

  • Discriminator in a sale between homes in this community and another

  • Emergency response vehicles


  • Roads built in 2001

    • Development Agreement for RLE Conservation Development, Exhibit C, Cost Asphalt Pavement - $218,859 ($3082/lot)

  • Public Improvement District (PID)

    • Discussed at three opportunities from Fall 2007 to Fall 2008

    • PID is a tax district with intent to collect tax dollars on a mill (9.714) levy basis

    • PID allows for collection of funds for maintenance of roads, ditches, drainage, snow removal, etc.

    • PID is managed by 3 members from the HOA and 2 members from the Larimer County Engineering Department; community representation allows for HOA to decide when monies are dispersed

    • PID has authority to initiate bonds

    • Tax burden for PID

      • Average taxpayer annual taxes for PID $492.98

      • Range: $317.26 – $825.40

    • Voted down 43-40 in November 2008

Typical recommendations on road maintenance
Typical Recommendations on Road Maintenance

  • Crack seal and patching recommended every 3-5 years

  • Seal coat recommended every 8 years

  • Asphalt overlay estimated at 10 years

  • Roads are built to last 20 years, at which time major repairs (mill surface and Asphalt overlay)

  • Chip seal is less expensive than asphalt overlay

    • Not as durable

    • Not friendly to skateboards, roller skates, or falls

    • Ice and snow removal may be more difficult

Budgetary estimate from lafarge 8 2009
Budgetary Estimate from LaFarge (8/2009)

  • 2” asphalt overlay ($8/yd)

  • Petromat fabric over current road and between overlay to reduce future cracking ($2/yd)

  • Utilities extension to bring caps to road surface

    • Water ($250/ea)

    • Man hole ($450/ea)

  • Estimated $292,800

    • $4124/lot, if performed today

    • 34% increase in cost since 2001, or 4.2% annual increase (on average) per year

  • Note, asphalt prices increase at a rate proportional to crude oil and refined products thereof

  • The model provided by the County estimates the cost at $290,500, based on 2007 materials/labor costs and 4.2% inflation rate

Rainbow lake estates

Proposed Maintenance Plan, Estimated Costs, and Funding Options Option 1 is Proposed(Out-of-Pocket costs to each Lot for maintaining roads over next 15 years is estimated at $9000)

Rainbow lake estates
What does your Future Costs for the HOA Look Like? Options (assuming annual operation costs grow at rate of inflation)

How do we manage the roads
How do We Manage the Roads Options

  • Start now with a plan to collect funds

  • Watch our roads

    • Perform relatively inexpensive routine maintenance to extend the life as much as possible

    • Minimize traffic on the roads; where possible minimize heavy loads such as trash trucks and heavy equipment

    • Periodically hire a consultant to evaluate our roads and provide estimate of time for major repair

  • When the complaints start on the increase, the board will know its time for major repairs

    • Start dialog with potential vendors, getting pricing and compare with funds available; special assessments as needed

Clarifications Options

  • Bylaws

    • Give roles and responsibilities of the corporation

  • Covenants

    • A contractual agreement with each Member and the HOA

    • Purchase of property within RLE is an automatic agreement by the buyer to the Covenants

    • A document which provides the foundation for the rules of the HOA

  • HOA

    • A corporation composed of 71 members

    • The Board is not the HOA

    • YOU are the HOA

    • Responsibilities

      • follow the Covenants/policies and pay assessments

      • provide instructions to the Board on the direction of the HOA

  • Board

    • Subset of the HOA Members, elected

    • Responsibilities

      • enforce the Covenants and policies

      • follow the Covenants and the Bylaws

      • management of the HOA

      • keeping the best interest of the HOA

      • develop policies and procedures to manage the corporation and to clarify ambiguity in the Covenants

Roads in summary
Roads in Summary Options

  • The Board has recognized that the HOA did not have a plan for the maintenance of the roads, yet the HOA is bound by the Covenants to have such plan

  • The Board has been educating the HOA on the road issue for 2 years

  • The Board has recommended options for resolving the road issue

  • The PID option was voted down 43-40 at the ballot box (Nov 2008)

  • A plan for road maintenance is not resolved and the Board has submitted a plan for the HOA to consider

2010 annual budget discussion time
2010 Annual Budget Discussion Time Options

  • The Board is requesting candid, non-emotional discussion

  • The Board has performed research on road maintenance costs and provided pertinent information to the HOA for consideration

  • The Board will field questions concerning the proposed budget and road maintenance

  • The HOA will offer individual opinions for discussion to the topics at hand

  • The Rules of the Meeting will be followed

    • The HOA President shall be the Chairperson of the meeting, and thus will manage the discussion

    • All participants shall have the right to be heard and shall have the right to complete their thoughts and comments

    • Time will be available to offer opinions, suggestions, questions, and comments

    • In an effort to respect all participants, let the speaker complete their thought

Meeting business
Meeting Business Options

  • Motion to veto the proposed 2010 Annual Budget

    • Vote of Yea results in rejection of the Board approved budget

  • If the proposed 2010 Annual Budget is vetoed, the 2009 budget is adopted

    • Annual dues $400, due January 15, 2010

Two new board members needed
Two New Board Members Needed Options

  • Term of Board Member is 2 years

  • Introduction of Candidates

    • Any new volunteers

  • Motions for Nominees

  • Election will be by simple majority – closed ballot

  • If only 2 nominees, then election is automatic

Arc lc and sc volunteers needed
ARC, LC, and SC Volunteers Needed Options

  • 1 Year appointment

  • Incumbents need to resubmit names

    • Architectural – 2 openings

    • Landscape – 2 openings

    • Social – 3 openings

  • Any Volunteers?

Direction for 2010 recommended
Direction for 2010 Recommended Options

  • East Entrance – supply of water is not guaranteed, landscaping

  • Roads – formalize plan, possible seal coat/patch/crack seal

  • Outlot A – understand how it is to be managed

Open discussion
Open Discussion Options

  • Questions and Concerns

  • New Business

Adjournment Options

  • Thank you

    • for your attendance, input, and involvement at tonight’s meeting

    • Alicia for stepping up to fill a vacancy on the Board

    • Vic for 12 months of service

    • Lynn for 12+ months of service

    • Annette for the 29 months of service on the Board

    • All the volunteers for the various contributions of time/labor over the 12 months

  • New Board Members please meet after adjournment for election of officers. All HOA members are welcome to attend

  • Motion to Adjourn