Kensington Estates Co-Owners Association
Annual Meeting September 19, 2020 ~ 10:30 a.m.
Held at St. Stephen’s Church Outside Shelter House
Determination of Quorum
Terry Kennard, President announced that a quorum had been met and the meeting could take place.
Welcoming Statement and General Comments
· Terry introduced Larry Edwards, PSG and the Board of Managers (Vicky Wilson, Susan Poland, Jim Turpin, Ted Dowden, and himself).
· He thanked Jane Teliha for taking care of the flowers and weeding at the entrance, Vicky Wilson & Linda Rasner for putting together the annual packets, and Ted & Hazel Dowden for their services. Terry also stated that the Abners have sold their condo and are moving to Florida.
· The minutes from the September 21, 2019 annual meeting held at the Plainfield Library were read by Ted Dowden. Motion was made to approve these as read; seconded.
Regarding the minutes, Linda Rasner asked for clarification about the amount of funds to be put into the Edward Jones account. It was verified that the $3,300/mo. was increased to $4,000/mo.
Accomplishments of the Past Year
· Terry Kennard stated that he attended the Saratoga Association meeting this year and reported:
o Our dues are $1,200 per year and that they are based on the size of each neighborhood group.
o new trees and water bags were planted along Saratoga Blvd.
o Claymont is now 60% rentals.
o Regarding the ground that Kingsway Christian Church owns on Saratoga Boulevard, they do not plan to build at this time but will keep the grounds mowed.
· Terry also stated that the board determined that we could purchase new mailboxes at a better price than repairing the prior ones so we purchased and had installed 65 boxes by Otto’s Streetscape Solutions at $92 per unit. These have a 2-year warranty.
· The Board of Managers decided (at the recommendation of PSG) to begin a 4-year maintenance program to review our 65 units. Larry explained that they began with #1-16 this year, spending a lot of time on drainage, worked on 5 driveways ($3,000), caulked windows, cleaned and sealed gutter joints, repaired flashing, placed mulch in common areas, trimmed bushes, and will paint all 16 doors. Larry Edwards mentioned that we are a Co-owners Association which is different from a HOA, and that owners are responsible for the bottom of the studs inside to the ceiling and landscaping as outlined in the By-Laws. He also mentioned that Brandon, PSG Office Manager, is an experienced painter and has spent some time painting since they have been shorthanded through the pandemic.
· Susan Hawver mentioned that maintenance is to be routine and NOT just a result of homeowner inspections at the time of sale. It was clarified that the Association is responsible for routine maintenance. Larry stated that PSG does get involved in home inspections when a unit is for sale and there are exterior items that we are responsible for as defined by the By-Laws. It was further clarified that the Co-owners Association is responsible for all exterior items to the door, and any foundation issues ARE the responsibility of the Association.
· Susan Hawver also mentioned that we voted on a budget and that Indiana code states that services and appearance must be applied equally to all units, without discrimination and that did not happen this year. Ted Dowden asked for an example and it was indicated by a show of hands that MANY of the units did not receive new mulch this year. Again it was reiterated that the Association CANNOT pick and choose who gets services. Hazel Dowden expressed concern that the mulch had been placed too thick in the past and it had become hard, not allowing water to penetrate into the ground. Others indicated that no mulch is unacceptable.
· PSG installed a new LED fixture at our entrance. The old one leaked and water was getting in it.
· Terry contacted Duke Energy regarding our street lights and the electrical connection to the pond. It was discovered that the cable to the pond was 25 years old and needed to be replaced. Duke Energy intends to change out the lights to LED.
Financial report
· Larry shared the financial report through August 31, 2020, indicating that we are over budget on gutters and drainage, and that grass cutting was over budget due to prior year expenses billed late and recorded in 2020. (No Balance Sheet was shared.)
Old Business
· There was discussion and a request for legal documentation regarding the number of board members. Larry Edwards mentioned that it is not uncommon to have 3 – 5 members for a Condo Association our size, but it needs to be an odd number, and we could have up to 11 according to Indiana state law.
Residents addressing the Membership
· Carolyn Craig spoke indicating that she has lived here for 22 years (the longest resident except for Darlene Dare). She indicated that she is pleased with the new mailboxes and also raised the following issues:
o The Board of Managers are not to spend non-budgeted funds over $3,000
o By-Laws state that year-end financial reports are to be issued to the co-owners including a report of our investments.
o That $40,000 was moved from Edward Jones to a CD without the co-owners’ approval.
o She is alarmed to see the recommendation of reducing our monthly HOA fees.
o Long range planning has been in place to provide for the future and we want to avoid any future special assessments because sufficient funds have not been set aside.
· Carolyn stated that there have been 2 amendments to our By-Laws:
o #1 spelled out landscaping permissions
o #2 prevents further renting of units
· Susan Hawver indicated that we approved the 2020 budget with $48,000 to be invested ($4,000 per month) and she indicated that those transfers stopped October 4, 2019, according to Edward Jones and that this was not authorized by the Co-owners. She further stated that according to Indiana Code, we are required to put funds in reserves and a special meeting should have been called if there were concerns about the investments.
· Terry quoted the balances and losses that had occurred beginning with January 2020. He indicated that the Board of Managers made the decision to stop the transfers and felt that this decision was in our best interest due to the decline. In May they decided to move the funds from Edward Jones to our checking account. A CD was then purchased with the funds. Terry indicated that a conservative approach was taken and that he did not know that we were subject to Indiana law.
· As of yesterday, the Edward Jones balance was $133,420. We have a $40,000 CD at Indiana Member’s Credit Union plus around $28,000 in Indiana Member’s Credit Union checking account.
· Russ Warren made a motion to create a Financial Investment Committee to review our funds and make recommendations regarding our investments; seconded by Vicky Wilson. The committee is to be comprised of the following;
o Susan Hawver, Neal Hollingsworth, Susan Poland, and Russ Warren
· It was asked whether our books are audited. Larry Edwards suggested that it is very expensive for an audit ($10-15,-000); he recommends that we form a Financial Committee to review the records.
· Jody Belton spoke of her background in finances including the review of accounting records, and has served on many NFP boards.
New Business
· The 2021 proposed budget was presented and discussed.
o Susan Hawver made a motion that we put the investment funds back in the budget, that funds are allotted for all areas of responsibility including mulching, and that the fees remain at $180/month; seconded by Jack Craig.
o Linda Rasner made a motion that we begin putting $4,000 into Edward Jones beginning with January 2021; seconded by Dova Copeland.
· Votes were taken for the Election of Officers.
o 54 votes were received with Jody Belton and Linda Rasner receiving the highest.
o The upcoming officers are: Susan Poland (thru 2021), Vicky Wilson (thru 2021) Ted Dowden (thru 2021), Jody Belton (thru 2022) and Linda Rasner (thru 2022)
Meeting adjourned at 12:50 p.m.
Notes: These minutes are to be presented for approval at the 2021 Annual meeting.
It was noted after the meeting that only 9 of the 65 units were not represented.
Prior to the meeting, Ted Dowden asked Jody Belton to assist in taking the minutes of the meeting and stated that we would compare notes afterwards.
After the meeting, Ted Dowden told Jody Belton and others that he is resigning. No announcement was made. The officers (Jody Belton, Susan Poland, Linda Rasner & Vicky Wilson) met with Larry Edwards and agreed that Vicky Wilson would be President, and that Jody Belton would be Secretary with Linda’s assistance.
Respectfully submitted by Jody Belton
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