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PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
November 19, 2011
The November 19, 2011
meeting of the Board of Directors was opened at 8:08 AM with the Pledge of
Allegiance. Present were President Jerry
Beskovoyne, Dan Braun, Gina Florio, Peggy Kostyshyn, Al Cucciniello, Ted Couillou,
Jerry LaStella, Advisory Board Liaison George McMullin, and General Manager
John Carney.
The October minutes were
reviewed and approved as corrected on a motion by Jerry LaStella and seconded
by Gina Florio.
Before offering his
Treasurer’s Report, Dan Braun took a moment to thank both the Public Safety
Department and all the members of the WLE community who checked in on his wife
so frequently while he was away and in the hospital and made sure that she was
well taken care of.
Treasurer’s Report
– Dan Braun
Monthly Report as of October 31, 2011
WLE POA Cash in Bank Accounts Totaling:
$1,869,895.55
WLE POA Equity (Cash Basis): $3,180,212.75
Dues Assessments Collection Rate (Cash
Basis): 96.4% on a Budget Year-to-Date Basis (excluding $6,459.41 in
pre-paids); $70,807.62 in cumulative annual prior dues (less than one year in
arrears); 12 judgments filed, 3 civil complaints reinstated, 2 civil complaints
satisfied, 1 prothonotary filing satisfied, total legal collections of
$19,990.53.
Significant individual line item
actual-to-budget, cash-basis negative variances from the annual budget as of
October 31, 2011:
·
Due to
the increased price of motor and heating fuels, a total annual cumulative
negative variance of approximately $7,500 was realized across multiple
departments (holding steady for last four months).
·
Maintenance
expense in excess of $4,117.69 in Pools/Recreation, pertaining primarily to
Beaver Pool.
·
Increased
frequency of water testing as mandated by the EPA resulted in an approximate
$9,305 excess cost.
Studies and
Projects:
·
The
Finance Committee reviewed monthly financial statements and received
clarification of questions.
·
The
investment accounts of WLE POA (General Repair/Replacement Reserve, Special
Assessment Reserve, Contingency, Capital Improvement, and Recreation) have been
transitioned to Merrill Lynch/Bank of America.
·
Treasurer
and Finance Committee are conducting an ongoing investigation of alternative
revenue sources to assist in the funding of our community.
2012 Operations Budget:
·
Context:
The Social Security COLA for 2012 will be 3.6%. The recent increase in
the US M1 monetary supply indicates that international exchange rates relative
to the dollar are likely to decline and US inflation should be expected. In view of the uncertainties regarding the
government sovereign debt in the Euro zone, this expectation may not be
realized, however the exposure of US financial institutions to Euro zone debt
may exacerbate the possibility of US inflation.
Resolution of the US sovereign debt by the Congressional "Super
Committee" was not realized and they adjourned without offering any
alternative solutions. US grain reserves
(especially corn, wheat, and soy beans) are at the lowest level in 15 years,
while China experienced a major drought in the 2011 growing season. Since China is the USA’s major creditor, the
price of grain commodities in international trade will likely rise
significantly with direct impact on grocery expenses, including indirectly the
costs of beef, pork, poultry, eggs and dairy since these grains are also used
as animal feed. All of these fiscal uncertainties will likely lead to a
continued reluctance on the part of individuals and corporations to invest
available capital, with the result that the economy will not rebound, the job
market will be sluggish and the demand for and price of housing will continue
to drift.
·
The driving factors: There are only two really big drivers that
will cause a necessary increase in the 2012 operations budget and dues increase
- employee health insurance and reserve funding. First - employee health insurance was
projected to increase by 11.0% based upon an initial quote from our incumbent
Blue Cross/Blue Shield of $227,640. We
could not accept this increase so we pushed Blue Cross/Blue Shield to find
another cheaper program and received a revised quote at a savings of $18,211.
We additionally solicited a health insurance broker and requested three
additional bids. Second - based upon the
reserve allocation vote at the June 2011 Annual Meeting, we must fund a
contribution of $238,912. We will also continue the
repayment of the internal loan from the Sewer and Water Special Assessment Fund
during 2012 in the amount of $20,000. Consumable
fuels are estimated to increase by approx. $7,000 across all departments. Sewer and Water is projecting an increase of
$11,375, primarily driven by the EPA mandates for increased water testing from
our wells and additional maintenance.
·
Marina Fees:
The first section of eight of the marina docks will need to be replaced;
as they can no longer have the blue styrofoam floats under them, per PPL, at a
cost of $1500 each ($12,000 total). We
will begin this replacement in 2012, and compliance must be completed by
2013. After a lengthy discussion, the
Board of Directors voted unanimously that to assist with the increase in marina
costs and fees as detailed in this report, there will be an increase in boat
slip dues from $375/year to $392.50/year (an increase of $17.50). This will cover our costs for the two-year
period and subsequently be applied to the increased operating costs of the
marina while maintaining our status as the cheapest dock slips on Lake
Wallenpaupack.
·
Pre-payment discount: In the past, we have encouraged pre-payment
of dues in total for the year by offering a 2% discount. During normal times, this may be an
appropriate enticement, but when interest-bearing bank accounts offer less than
1%, this is overly generous. To continue
to encourage annual dues prepayment but at a reasonable rate, the enticement
needs to be reduced to 1%. We estimate
that this will bring an additional $4,300 into the operations account for
2012. After further discussion, this was
approved by consensus of the Board of Directors.
·
Campground Fees:
After a lengthy discussion by the Board of Directors, an increase in
fees for campground seasonal sites to $800 for Trailers and $700 for Pop-ups
will be put into effect, along with an increase in daily site fees to
$17.50. These fee structures are
consistent with the lowest campground rates in the region.
·
Conclusion/Recommendation: After reducing projections of increased
expenses to a minimum and increasing fees as deemed appropriate, the WLE POA
2012 Operations Budget can only be balanced with a 3.0% increase in dues. It is, therefore, recommended that the dues
assessment for 2012 be increased in the amount of 3.0%. After another lengthy discussion by the Board
of Directors, the unanimous conclusion was reached that all adjusting and
squeezing that could be done has been done and that the 3.0% increase in dues
for 2012 is both reasonable and necessary.
Therefore, the 2012 dues for an improved lot will be $1,605 (a $47
increase), and $919 (a $27 increase) for an unimproved lot.
General
Manager’s Report – John Carney
1. A final draft of
the 2012 operating budget has been completed and is being reviewed this month
by the Board of Directors. We continue
to work to decrease the proposed 11% increase to health insurance. Our present carrier has come back to us
decreasing the increase to 3% and very soon I will have comparable quotes from
other carriers. The decrease from 11% to
3% translates to a saving of $18,211.
2. Due to PPL
regulations and our permit with PPL for the length of our docks, and to
maintain the current amount of slips, we will need to add additional ramps from
the shore to the first dock or use a dock from the shore that does not have
styrofoam. PPL’s measurement starts with
the first dock with styrofoam. Of the 10
docks, eight will need modifications at $1,500 per dock. Without modifications, we will be forced to
cut back on the length of most of the docks and reduce the amount of boats.
3. Along with Fran
Raimo, we are working on procedures for tree cutting for trees that do not
appear dead but may cause harm should they fall, compliance inspections during
a house resale, and engineering of storm water.
I have handouts to be discussed at the meeting.
4. I have met with
the USDA to discuss topics that they are involved with WLE, Goose Program, Deer
Management and Beaver Control. The Goose
Program proved to be successful. We did
experience some geese that came in after the program was completed, but with
all the lakes around, this is difficult to stop, but overall it was manageable. With the number of deer being seen, the
population has increased, but not to the numbers that culling needs to take
place. The USDA recommends that we continue to do yearly surveys to monitor the
population growth. The cost for the two
surveys would be $4,100. We have been
monitoring the pond leveler in Section 6 and the beavers have started
re-building the original dam. The USDA recommended a combination of continued
trapping and lowering the depth of the water between the original and the new
dam where the pond leveler was installed.
Continued trapping would be during the trapping season, December to
March. The PA Game Commission will
assist with trappers. They have a list
of trappers looking for areas to trap at no charge to us. In the spring, we will lower the level of the
water between the dams. The very wet
year is not helping to keep the water level down. The pond leveler at times cannot keep up with
amount of water coming in. Two things
the USDA mentioned was that when the water level drops, the original dam should
be dismantled and a second pond leveler should be added. Both of these recommendations can be done for
a nominal cost.
5.
We have received very positive feedback from property
owners purchasing propane gas from Locklin’s with the reduced fixed per-gallon
price that they are being charged, and property owners wanted me to relay their
thanks to the Board. They have already
started saving money from their previous delivery.
Further discussed with the Board, under
Item 3, Donna and Fran are working together on a resale packet that will be
given to sellers that will have a cover letter on it proposing that a WLE
compliance officer will perform an inspection as a service to the homeowner to
assure compliance with all WLE regulations prior to sale.
Also under Item 3, in regard to
tree cutting, a comparison is being done of our community to other nearby
associations. In Indian Rocks, no trees
less than three inches in diameter can be cut for any reason unless they are
dead. After discussion by the Board
members, the consensus is if a tree is healthy, it should be left alone. If there is a reasonable circumstance for
removing it, it should be replaced. Our
rules and regulations already state that the replacement tree should be 12 to
14 feet in height, but it is also the opinion of our Building Committee that in
order to keep our existing trees healthy, consideration should be given to
maintaining a certain percentage of tree coverage on any given property rather
than just replacing one tree for another.
Regarding the engineering of
storm water, also under Item 3, one of the biggest problems historically is
that we have never had any elevation regulations. Most of our roads have parallel ditching now,
but those that do not are a continuing problem.
To help alleviate this situation, the Board feels that any submission of
plans for new construction must also contain a plan for water runoff prepared
by the construction engineer for approval by WLE. This request will be taken back to the
Building Committee.
Under Item 4, the Board discussed
whether the cost to perform two deer surveys in 2012 is necessary, or whether
since the population has not increased significantly and no culling will be
done, we could forego that expense and realize a $4,100 savings against our
2012 budget. The decision was unanimous
to suspend the surveys for a year.
Building
Committee
– Al Cucciniello
Trees were a topic of discussion
again, as was storm water runoff and the Letter of Continuing Compliance for
home resales as already noted under the General Manager’s report and the
subsequent discussion by the Board of Directors. Metal roofs were also discussed, and the fact
that they, too, must be in compliance with WLE regulations regarding roof
colors for shingled roofs.
Marina – Al
Cucciniello
All matters pertaining to the
Marina were previously discussed above as part of the Treasurer’s and General
Manager’s reports.
Sewer &
Water
– Ted Couillou
No formal report this month, but
mention was made of the importance of the available water line insurance and
how best to encourage all WLE homeowners to purchase it.
Maintenance – Ted Couillou
Maintenance is currently clearing
our walking trails, and they did an excellent job of removing the docks this
year. Where they have been stacked for
this winter will allow for easier access and return to the water for next
season.
Advisory Board – George
McMullin
It was the general consensus of
the 25 people attending this month’s meeting that the Advisory Board is an
important part of WLE and should continue to meet on a monthly basis. The meeting date will remain the same.
Security – Jerry
LaStella
The new required band width
frequency for our radios has to be in place by January of 2012. Police calls are down.
Citation Dispute
Committee
– Peggy Kostyshyn
There was no CDC meeting this
month.
Neighborhood
Watch
– Peggy Kostyshyn
All emergency equipment has been
cleaned and is ready to use. Thanks for
the 911 memorial wreath. There were no
incidents during Mischief Night. Thanks
to the Board of Directors for providing the former Beaver Pool snack shed as
the new Neighborhood Watch building. The
interior has been beautifully restored.
The Committee is also requesting that a latticework fence be installed
around the exterior of the building to keep out animals.
Recreation – Peggy
Kostyshyn
The Swim Team had a net income
for 2011 of $4,577. Christmas lights are
going up around WLE. More will be put up
on November 16th. Ornaments
will be put out after Thanksgiving, and the MCH will be decorated on December 2nd.
The Board of Directors’
suggestion that no tickets be required for children’s events in WLE was
discussed. The Committee feels they need
to keep ticket requirements in place for all events, even those for children. In order to prevent any future unpleasantness
between property owners and administration personnel regarding event tickets,
the phone numbers of all three Recreation Co-Chairmen are available in the
office and should be given to anyone with last-minute ticket requests so that
they can speak directly with Recreation.
Lunch with Santa (11:00 AM), and
Winterfest (12:00 PM -4:00 PM) will be held on Saturday, December 3rd
at Kasper Lodge. There will be a
horse-drawn wagon with entertainment on board ($2.00), a bonfire to roast
marshmallows (free), hot cider, soup and hot dogs to keep tummies warm ($1.00),
and Christmas trees and wreaths for sale, along with other holiday
vendors. The tree lighting will be at
7:00 PM, followed by hot chocolate, cookies and entertainment afterwards in the
MCH. Before going to the MCH, stop by
Kasper Lodge for a wish lantern ($4.00).
Joe Mongalieri has requested that
our red barn be named Jocko’s Place and a sign put up in the third stall, which
was Jocko’s home. Approved by Board
consensus.
First Right of
Refusals
– None
Correspondence –
Letter of response from John
Carney to Property Owner
Letter from Property Owner to
Carney was reviewed and the Board of Directors requested John to reply the
Board’s response to Property Owner.
Old Business -
Cleanup & Repair of Section 4
(Tennis Lane) – Underway
Beaver dam – Ongoing project (See
further details above under Item 4 of this month’s General Manager’s Report.)
Ice Machine – Still researching
prices
New Business –
Property located on Eskra Road,
not part of WLE, but the possibility exists there are WLE water and sewer lines
running underneath this property. The
property owner has requested permission to tie into these lines, but the
preference would be to just relocate them instead. First, there will be a resurvey done of the
property to see exactly where the lines are located, in case the initial survey
might be incorrect.
Motion to adjourn, Peggy
Kostyshyn. Second, Al Cucciniello. Meeting adjourned at 11:41 AM. The next meeting of the Board of Directors
will be December 17th at 8:00 AM.
Respectfully submitted,
Marge Kenny
Recording Secretary