April 21, /16 Annual Budget / Reserve Study & Annual Disclosures. Dear Friars Village Member,

Transcription

1 1190 Camino Copete, San Diego, CA (858) / (858) Kathy@ark-management.com April 21, 2015 RE: 2015/16 Annual Budget / Reserve Study & Annual Disclosures Dear Friars Village Member, Enclosed for your review is a copy of the 2015/16 budget / reserve and disclosure package. The Finance Committee will be working throughout the year to look at various operating chances that can potentially reduce operating costs, and allow assessment dollars to be reallocated to the reserves. The budget is subject to change upon thirty (30) day notice. The Board is in the process of finalizing a community survey in polling community opinion. An Association budget reflects the efforts of the Board of Directors to maintain and enhance the Association s assets and common areas in order to preserve the quality of life while keeping expenditures in line. Effective June 1, 2015, assessments will remain at $419 per unit per month, with $ of the assessment being dedicated to reserves. You may notice that there is a rather large increase in the insurance premium ( ) and a decrease in the reserve funding ( ) from fiscal year 2014/15. The governing documents require assessments collected for insurance premiums to be held in a separate account and to be reflected as a separate line item on your billing statement. As explained last year, this account over the years had accumulated a substantial equity balance, therefore the Board under budgeted the 2014/15 general insurance premium in order to buy down equity in the account by approximately $56,000. The Board increased reserve funding by this same amount as an off-set, knowing that in 2015/16 this additional funding would be re-allocated to insurance. Your 2015/16 Budget reflects this decision was carried out. The additional $9,000 decrease in reserve funding was due to various operational expenses. The Board, with recommendation from the Landscape Committee entered into a new landscape contract with Benchmark Landscape in April Unfortunately after numerous attempts to encourage Park West to increase their level of service, the Board went out to bid. Park West was permitted to re-bid the contract, and increased their price from $127,000 per year to $183,000 per year; stating that they had initially under bid the project, as they did not fully take into consideration the amount of maintenance required within the Village. Rather than move forward with this vendor at an increased price, the Board chose Benchmark at a cost of $148,000 per year, ( ). Benchmark was the mid-level, best value bid. While this did increase the landscape contract by $21,000, this cost was offset by a $28,000 reduction in trash costs ( ) through cancellation of the Waste Management Contract and entering into a contract with Daily Disposable Services. In looking at landscape costs since moving from inhouse landscapers to contract landscape companies, the amounts have fluctuated with a high of $222,000 in 2010/11 and a low of $102,000 in 2011/12. It is the Board s hope that Benchmark Landscape will be the perfect fit for Friars Village and thus far have received rave reviews from the Landscape Committee. In March of this year the community Maintenance Supervisor resigned his position. In interviewing candidates for his replacement, qualified candidates demanded a minimum salary range that far exceeded the Association s budget. While the Board considers the current operational aspects of maintenance within the community, Pro-Tec Maintenance was brought in to fill the supervisory position. Therefore you will note that maintenance payroll (410-

2 112) has been reduced while a new line item has been added to the budget ( ) for the Maintenance Contract Supervisor. Per statute, at least once every three years the board of directors shall cause to be conducted a reasonable competent and diligent visual inspection of the accessible areas of the major components that the association is obligated to repair, replace, restore, or maintain. A visual inspection was performed in 2014 in order to meet the requirements of the Civil Code; with a financial update provided for fiscal year 2015/16. The Association is still in the process of gathering information in order to have a complete analysis of the condition and associated costs for the community buildings. The information being gathered by the Board far exceeds that of the reserve company. At this time, the Board is waiting on the estimated costs for refurbishing/repairing exterior elements of the buildings. Once this is completed, the Board will have full spectrum information specific to the Association s buildings, water systems, drainage/landscape, roofs and streets. The 2015/16 Reserve Study reflects a funding level of 22%. This funding level reflects the state of the reserves to the best of the Board s ability at this time. Once the Board receives information specific to the units, we will be better able to determine the exact funding level of the reserves and can begin working towards a global plan to address deferred maintenance within the Village. The Finance Committee, in adopting a recommended budget for Board decision considered increasing reserve funding for fiscal year 2015/16, but ultimately decided not to do so at this time. Upon request, members are entitled to a copy of the full reserve study report. The Board will continue to keep members apprised via the newsletter, e-blasts and meetings as more information becomes available. There is a weekly that goes out each Friday afternoon and provides information on Village issues. If you would like to be added to the recipient list, please send your address to Kathy@ark-management.com prior to April 30 th and after April 30 th to TJ@ark-management.com. Board meetings are held on the 3 rd Wednesday of each month and begin at 6:00 p.m. Homeowner Open Form is held at the beginning of the meeting. Meeting minutes are available upon request within thirty days of a meeting, and are typically posted on the community website: once accepted by the Board. The official place for posting board meeting agendas and other required disclosures is on the bulletin board at the clubhouse. Please note that a locked message Board has been purchased and will be located next to the current bulletin Board. Official postings will be located in the locked box to ensure legal postings are not removed from the message Board. As always, we thank you for your support of Friars Village. Sincerely, THE FRIARS VILLAGE BOARD OF DIRECTORS

3 Friars Village 2015/2016 Budget 2015/2016 Monthly Assessment (Assessment & Insurance Income) $ /15 Budget Annual Annual 2015/16 Budget Monthly Per Unit/Mo REVENUES Assessment Income 2,119,498 2,060, , Insurance Income 92, , , NSF & Late Fees 12,000 12, , Collection Reimbursement 4,800 4, TOTAL REVENUES 2,229,098 2,229, , EXPENSES ADMIN & PAYROLL Admin Payroll 20,280 20, , Maintenance Payroll 152,008 97, , Patrol Payroll 52,000 52, , Payroll Tax 24,671 25, , Payroll Processing Service 4,000 4, General Office Expense 5,000 5, Supplies Materials 5,000 5, Website Postage 6,000 6, Copier Expense 6,000 1, Auto Repair & Maintenance 6,000 6, Licenses, Fees & Permits Education & Seminars Management Fees 155, , , Meeting Expense 1,000 1, Collections Fees 4,800 4, Reserve Study 2,000 2, Legal Fees 22,000 22, , Tax & Accounting Fees 1,300 2, Social Events 2,000 2, Bad Debt Expense (Allowance) 10,800 10, TOTAL ADMINISTRATIVE 481, , , COMMUNITY BUILDINGS MAINTENANCE Pool Maintenance/Service 10,000 10, Pool Supplies 3,000 3, Repair & Maintenance 37,000 37, , Plumbing 5,000 5, Maintenance Contract - 82, , Fire Extinguisher & Sprinklers TOTAL BUILDINGS & MAINTENANCE 55, , , COMMUNITY UTILITIES Gas & Electric 36,000 36, , Water 360, , , Trash 85,128 57, , Telephone 6,538 4, Internet 1, Cable 960 1, TOTAL UTILITIES 489, , , INSURANCE General Insurance 92, , , Workers Compensation 18,724 14, , Auto Insurance 2,020 2, TOTAL INSURANCE 113, , ,

4 Friars Village 2015/2016 Budget 2015/2016 Monthly Assessment (Assessment & Insurance Income) $ /15 Budget 2015/16 Budget Annual Annual Monthly Per Unit/Mo LANDSCAPING MAINTENANCE: Landscape Contract 127, , , Landscape Extras 12,000 12, , Irrigation Repairs 14,000 12, , Backflow Device Test - 2, TOTAL LANDSCAPE MAINTENANCE 153, , , OTHER GROUNDS MAINTENANCE Pest Control 2,500 2, Pest Control Termites 5,552 5, Lighting Maintenance/Electrical 2, Playground Inspect/Maint TOTAL OTHER GROUNDS 10,387 7, TAXES Property Taxes Franchise Tax Board Federal Income Tax 5,000 3, TOTAL TAXES 5,900 3, TOTAL OPERATING EXPENSES 1,309,172 1,373, , RESERVE FUNDING Reserve Funding 920, , , TOTAL RESERVE FUNDING 920, , , TOTAL BUDGETED EXPENSES 2,230,098 2,229, ,

5 FRIARS VILLAGE HOMEOWNERS ASSOCIATION, INC. FRIARS VILLAGE HOMEOWNER ASSOCIATION POLICY STATEMENT FISCAL YEAR 2015 / 16 In accordance with the requirements of the California Civil Code, effective January 1, 2014, the following information is provided to the membership. All code sections listed below refer to the California Civil Code, aka the Davis-Stirling Act which is the governing law of Common Interest Developments. The name and address of the person designated to receive official communications to the association, pursuant to Section 4035 is: Friars Village President &/or Managing Agent c/o ARK Management 1190 Camino Copete / San Diego, CA Any member may submit a request to have notices sent to up to two different specified addresses, pursuant to subdivision (b) of Section The designated location for posting of a general notice, meeting agenda or other necessary posted disclosure is the bulletin board located in the Friars Village Clubhouse at the above noted address. The Board may choose to post, but is not obligated to post, additional notices on the community website, association entrance, via , newsletter or other means. Members have the right to receive general notices by individual delivery, pursuant to subdivision (b) of Section Members have a right to receive copies of meeting minutes, pursuant to subdivision (b) of Section Minutes are generally posted on the community website located at: The Association has adopted an assessment collection policy that meets the requirements of Section A copy of this policy may be obtained upon request to the management office. The Association follows its collection policy in the collection of past due assessments. Delinquent members may have a lien placed against their property or other legal remedies may be taken for default of payment to include, but not limited to, foreclosure, lawsuit or other actions as deemed appropriate by the Board of Directors. Members who are experiencing financial difficulties are encouraged to contact the Board via Management in order to discuss a responsible payment plan in order to avoid costly collection practices on the part of the Association and ultimately the Member in default. The Association is required to enforce the community governing documents and supporting policies. Members in violation will receive written notification of a perceived violation and will be given a reasonable amount of time to cure the violation. If the violation is not cured within the stated timeframe, Members will be called to a hearing before the Board and fines and restrictions may be placed against a Members account, in accordance with the fine schedule below. In the event a violation causes a life/health/safety issue, the Board may choose to call the authorities, regulating agencies or move forward with legal action in order to immediately cure the violation. Members are responsible and liable for the actions of all guests,

6 tenants, family members, contractors, other service providers and pets. Tenants or other non-members may not attend enforcement hearings without the Member in attendance. Members may obtain a full copy of the Enforcement Policy and Fine Schedule by contacting Management. The Association has dispute resolutions in place pursuant to Sections 5920 and 5965, which include Informal Dispute Resolution, Mediation or Arbitration of disputes. In an enforcement action in which attorney s fees and costs may be awarded, the court, in determining the amount of the award, may consider whether a party s refusal to participate in alternative dispute resolution before commencement of the action was reasonable. A copy of the Associations dispute resolution policies may be obtained by contacting management. No exterior modifications may be made to any unit without the submittal of an Architectural Change Request Form and the written approval of the request by the ACC Committee. If an interior modification requires permits, the Member must submit a copy of the permit to the Association for file. Some modifications will require the execution of a Maintenance and Indemnity Agreement. Members who do not receive approval for requested modifications may appeal to the Board of Directors. Unapproved changes are subject to removal at the Member s sole expense. Full copies of the Architectural Requirements and Architectural Specifications can be found on the Association s website at: or may be obtained through management. The mailing address for overnight payment of assessments is: Friars Village HOA c/o ARK Management P.O. Box Phoenix, AZ The Board of Directors is not responsible for theft or injury to persons and residents are responsible for their own safety. While patrol is on-site for various hours of the day, their duty is to observe and report. They are not permitted to apprehend, approach or take any other actions that may place themselves in a harmful situation. Members who witness or are involved in a crime or other situation for which they feel caution is necessary should call 911 and then follow up with a written report to management and/or patrol. The pool area is used at one s own risk. There are no lifeguards on duty and staff or subcontracted workers are not trained to provide medical aid. ALL POLICIES AND PROCEDURES LISTED IN THE DOCUMENT ARE AVAILABLE BY CONTACTING MANAGEMENT. MOST CAN BE VIEWED ON-LINE AT

7 FRIARS VILLAGE HOMEOWNERS ASSOCIATION, INC. FRIARS VILLAGE INSURANCE DISCLOSURE The following information is provided in accordance with California Civil Code statutes: The Association's Insurance Carrier is: STATE FARM INSURANCE Policy No Tim Giblin, Agent 133 Escondido Blvd Escondido, CA Telephone: The Association is required to provide homeowners with this information on an annual basis and also is required to inform homeowners if there are substantial changes to the policy or in the event that the policy is cancelled by the carrier. "The attached summary of the Association's policies of insurance provides only certain information as required by subdivision of Section 1365 of the Civil Code, and should not be considered a substitute for the complete policy terms and conditions contained in the actual policies. Any association member may, upon request and provision of reasonable notice, review the Association's insurance policies and, upon request and payment of reasonable duplication charges, obtain copies of the policy. Although the Association maintains a policy of insurance as specified in the summary, the Associations policy of insurance may not cover your property, including personal property or real property improvements to or around your dwelling, or personal injuries or other losses that occur within or around your dwelling. Even if a Joss is covered, you may nevertheless be responsible for payment of all or a portion of the deductible that applies. Association members are advised to consult with their individual insurance broker or agent for the appropriate additional coverage." 1190 Camino Copete, San Diego, CA Office: Fax:

8 CERTIFICATE OF LIABILITY INSURANCE PRODUCER Tim Giblin, Agent License# S. Escondido Blvd Escondido, Ca DATE (MM/DD/YYYY) 1/16/2015 THIS CERTIFICATE IS ISSUED AS MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURED FRIARS VILLAGE HOMEOWNERS ASSOCIATION 1190 CAMINO COPETE SAN DIEGO, CA INSURERS AFFORDING COVERAGE NAIC # INSURER A: State Farm General Insurance Company INSURER B: INSURER C: INSURER D: COVERAGES INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CE RTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS O F SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD L INSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) A X GENERAL LIABILITY /16/2015 1/16/2016 EACH OCCURRENCE $ 3,000,000 DAMAGE TO RENTED X X COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence) $ X X CLAIMS MADE X OCCUR MED EXP (Any one person) $ 5,000 PERSONAL & ADV INJURY $ 3,000,000 GENERAL AGGREGATE $ 6,000,000 GEN L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 6,000,000 PRO- POLICY JECT LOC A AUTOMOBILE LIABILITY F22-55 & ANY AUTO V E01-55 ALL OWNED AUTOS X SCHEDULED AUTOS 6/22/14 6/22/16 COMBINED SINGLE LIMIT (Ea accident) BODILY INJURY (Per person) LIMITS $ $ 500,000 HIRED AUTOS NON-OWNED AUTOS BODILY INJURY (Per accident) PROPERTY DAMAGE (Per accident) $ 500,000 $ 100,000 X GARAGE LIABILITY AUTO ONLY EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY: EA ACC $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND WC STATU- OTH- EMPLOYERS LIABILITY TORY LIMITS ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below OTHER Blanket Buildings Deductible: $10,000 ACORD 25 (2001/08) The registration notices indicate ownership of the marks by their respective owners ACORD CORPORATION 1988, All rights reserved AGG $ E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ /16/2015 1/16/2016 $62,779,400 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Auxilary Buildings: $6,144,200 Earthquake Coverage: $62,779,400 20% Deductible Directors & Officers Liability including Employment Practices Liability $3,000,000 POL#PS Fidelity Bond: $1,000,000 7/10/14 to 7/10/15 Policy # CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL _30 $ DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Tim Giblin, Agent

9 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08)