09/13/2008 (Annual)

Annual Meeting of the Paleface Ranch Association 09-13-08

The meeting was called to order by President Mike Hellrung. It was noted that the members present constituted a quorum with 111 voting lots represented.

The minutes of the ’08 annual meeting were sent out in the mail prior to the meeting. A motion was made by Mike Hellrung to approve the minutes as disseminated. The motion was seconded and approved.

Treasurer’s Report:
The treasurer’s report was reviewed. Year to date, the Association’s Compass money market account balance is $31,407. The construction deposit escrow account balance is $8000. The money in the escrow account does not go toward operating expenses. The Association checking account balance is $9184. The Association operating income is $40,591. The America Group Investment account balance is $22,975.

HOA property taxes for 2007 were $2739. After protest estimated property taxes for 2008 are $300. The treasurer’s report was approved as presented.

Secretary’s Report:
Secretary Megan Klein reported that she had received many requests to distribute member’s email addresses on the membership roster.

Mike Natinsky made a motion that the Association secretary be directed to make a mass emailing polling each lot owner as to whether it is okay to make their email public. With an affirmative response the secretary will distribute those email addresses to the membership. The motion was seconded and passed.

Vice President’s Report:
Bill Paschall reported that we did a lot of work on the road this year with a single course chip seal all along Oscar Road and repair to the road base just inside the gate. We did as recommended in the engineering report. The engineering report cost $250 and was much less expensive than expected because we had the road maintenance schedule from 2001. The road engineers told the board that the schedule was still a good model for maintaining our roads into the future with the understanding that costs estimated in 2001 would change with the passing of time.

The Association spent a little over $77,000. The entry repair cost $26,000. Tres Coronas and all side roads were crack filled this year for $5333. The chip seal of all of Oscar cost $37,248. The next major maintenance project on the roads will be chip sealing Tres Coronas which was estimated to cost $39,000 at today’s prices. It is still in pretty good shape according to the engineers and this repair should not need to take place until 2010. All that should need to be done next year is minimal crack filling. The chip seal should give us 10 – 12 years on Oscar. Very heavy construction vehicles may decrease that estimate. The side roads are in very good shape according to the engineering report. Side roads include all roads other than Oscar and Tres Coronas.

The big discount the Association got was on the crack fill throughout neighborhood. Four vendors wanted to bid the crack fill on linear feet. Ramming Paving gave a fixed price for crack filling the neighborhood.

Bill says average maintenance should be roughly 25K per year. Road repair in 2009 will be minimal in light of all the work that was completed this year.

Mike Hellrung noted that heavy vehicle use puts a lot of wear and tear on the roads. He asked that all homeowners switch to using RDS in an effort to have only one service enter the neighborhood and thus cut down on some of the heavy traffic.

Steve Hooge asked why core samples were not taken of the road. Bill Paschall stated that core samples would have driven the engineering report to about $2000 and he didn’t think it would change what the Association would do with respect to the roads.

Steve made a motion that the Association get core samples and have them analyzed. Bill noted that a compression check, which would be similar to a core sample, was done at the time of the road repair at the entrance. Mike Natinsky asked Steve Hooge to withdraw his motion if the new board would take up the issue at their first meeting.

Jim Brown made a motion that the board form a road committee of qualified individuals to study road maintenance and make recommendations to the board. The motion is seconded and approved.

President’s Report:
Mike Hellrung reported that the board saved a total of $2500.00 in taxes this year for the HOA properties.

With respect to the CCRs and violations, the problem of multiple horses on a property on Envoy had been resolved. Mike reminded lot owners that trailers need to be placed out of sight of the road and neighboring properties. He asked home owners to put their trash cans away.

Mike asked that owners be generous and forgiving of non-CCR violations. He stated that the board is not responsible for policing trespassers on individual properties. He suggested owners place no trespassing signs to discourage unwanted visitors.

Mike noted that the entry lighting had been fixed and a low wall had been erected to help prevent cars backing off the pad at the mailbox and over the dropoff at the drainage ditch. He also noted that the entrance had been mulched and weeded multiple times and the boat ramp area had been cleaned up.

He further stated that all of these things had been done at very little cost – expenses running $8000. He noted that the board had not sued anyone. He stated that he didn’t want any owners to be afraid of the board.

Election of Directors:
Megan Klein made a motion to ratify the election results of the Annual Meeting of September 2007 at which there was not a quorum. The motion was seconded and passed.

Elections for two board positions were held. Sue Bennett, Gail Finnegan, Toby Newlin and Carol Natinsky were nominated. Jim Brown made a motion to close nominations. The motion was seconded and approved. Gail Finnegan and Toby Newlin were elected to serve on the board for two-year terms. The remaining members of the board will continue serving for one additional year.

New Business:

Jim Hinton presented an idea for extending the boat ramp 60 feet toward the center of the channel so that the ramp remains useable as the river level drops. Jim said that he would donate the framing materials and lead the project. Jim estimated the project would cost $1600.00. A motion was made to approve funding to buy the concrete and materials, not to exceed $4000, to extend the boat ramp. The motion was seconded and approved.

Mike Hellrung proposed an idea he called a capital improvement project. He stated that the groundwork for such a project had been laid in the Paleface Association Projection of Needs and Costs for the years 1999 – 2005 where phases I, II and III of a “Park & Boat Ramp/road project” were projected to be completed over the years 1999 – 2003. Mike went on to state that this project was never brought to fruition due to Association money being consumed in lawsuits.

Mike stated there were two ways to go about park improvement. The first would be to enhance the park at the boat ramp. Mike didn’t recommend this option, saying it would be a more expensive improvement project for less useable area, would destroy habitat and that access could not be controlled, specifically from the Hwy 71 bridge, though he did admit the river view would be nice. The second option would be to purchase a lot for the development of a new park. Mike cited the benefits of such a move as increasing resale value, increasing area for recreation, alternative access to mailboxes, relieving congestion at the mailboxes, increasing road frontage for right turn lane and Association control of improvements to Lot 1.

Mike Hellrung made a motion to establish a park committee to study a park improvement proposal.

Sue Bennett moved to amend the motion to say that the committee would only be formed if there was enough community support to purchase an additional lot.

Mike Hellrung tabled his motion.

Mike Natinsky made a motion to see how many members were interested in purchasing additional property for a park; yes means that you are interested in having the Association purchase an additional piece of property for a park. The motion was seconded.

Toby Newlin noted that in response to his unofficial survey asking the neighborhood whether they wanted to buy land and build a park, he had received 70 replies, representing 87 lots (of 159), all against the idea of purchasing land to create a park.

Don Barnett urged those present to vote no. He stated that a new park would not enhance the value of property within the subdivision. He urged the membership to concentrate on maintaining the roads.

The motion failed. The vast majority of HOA members present voted against purchasing an additional property for the purpose of creating a park. Four members voted for the motion.

Mike Hellrung made a motion to create a park committee to study improvements to the existing park land at the boat ramp. The motion was seconded and passed.

Sue Bennett made the following resolution:
Resolved, that no Association funds are spent for purchasing or acquiring land, within the Paleface Ranch subdivision or outside its borders, for use as a community park or gathering place.

Resolved, that no Association funds are spent for developing, improving, maintaining and/or transforming another improved or unimproved lot into a park or gathering place, with the exception of the existing boat ramp/park at 23625 Indian Divide Cove, Spicewood, Texas 78669.

It was unclear whether resolutions were allowed and would thus be binding under the HOA covenants, conditions and restrictions. The resolution failed.

Meeting was adjourned.