SCHOA ANNUAL MEETING

JANUARY 16, 2025

Board members present: Gordon Baldwin, Chick Barcellona, Mindy Ewing, Laurie Kirschner, Tracy MacMillan

The meeting was called to order at 7:05 p.m. It was established that 34 households were represented either in person or by proxy, confirming a quorum.

It was moved that the minutes from the 2024 Annual Meeting, which were provided online before the 2025 meeting, be accepted as written. This was seconded and passed unanimously.

• Tracy gave an end-of-year report on the 2024 budget. The end balance for 2024 was $11,229.87. She discussed the fact that there was fortunately enough in savings this past year to cover the cost of repairing the end section of the drainage pipe that failed, causing the large sinkhole in the Commons. She reported that expected expenses for 2025 will be $29,714, excluding unknown expenses. The estimated income at the current rate for annual dues will be $27,000, creating a shortfall. She explained that without an increase in annual dues, this will quickly deplete our savings.

• Chick gave a report on the Reserve Study Plan, explaining that it is a new state-wide mandate for all HOAs. It is to assure homeowners, realtors, or other interested parties that the HOA for each neighborhood is financially healthy, a budget planning tool designed to help HOAs set aside funds for future problems. Failure to establish Reserve Study funding by 2028 could make properties in South Cove unmortgageable. CedCore, a company that helps neighborhood HOAs set up Reserve funding, was hired by the HOA to assess our financial health. It was determined that South Cove is currently not being funded sufficiently. A list of South Cove infrastructure that the Reserve would fund was summarized by Chick. The study found that to fully protect and fund South Cove’s infrastructure, an increase in the annual dues would be necessary. The Board is recommending raising the annual dues for each lot from $600 a year to $800 a year. A vote, by show of hands, was held. It was approved that annual dues, starting in 2025, would be raised to $800 a year per lot.

• Nancy and Lucy gave a report for the Welcoming committee. The neighborhood welcomed new residents this past year. Activities for 2024 were highlighted. The Walk About/Talk About that happens every Saturday morning at 10:00 a.m. has been a huge success and will continue. Anyone interested in joining others for a few laps around the neighborhood should meet on Saturday mornings at the top of Mirror Ct. on 68^th Ave. Dogs are welcome! They also discussed the PLA flotilla last July and the August South Cove picnic. Dates for 2025 activites are:

PLA flotilla – July 13

South Cove picnic – August 17

Holiday Cookie Exchange (NEW!) - December 16

Further details about all these events will be provided closer to each date.

• Tracy gave a report on the major drainage pipe that empties into the retaining pond. It was reiterated that the pipe is the responsibility of South Cove because the majority of the pipe runs under private property. Thurston County PUD brought in a remote camera to inspect the inside of the pipe in December, and found the pipe to be in good condition. The County feels the pipe is in good enough condition that it should be another 20 years before repairs might be needed. They will recheck the pipe in five years. Chick ran the County video during the meeting, and gave some descriptive narrative in addition to a short back story about the replaced section of the pipe this past year, the sinkhole repair, and the dredging of the pond. The inspection did find some rust and corrosion at the very top of the pipe on 68^th Ave. at Mirror Ct. The County Supervisor recommended that five feet of pipe be replaced. This part of the pipe is on County property and will be replaced at the County’s expense, likely sometime this summer. The drainage pipe is now part of the Reserve Study funding plan. The increase in annual dues will help to start building funds for any future repair or replacement of the pipe, which would be a major expense for the neighborhood. Building funds now will help offset any assessments that might be necessary down the road.

• The question was raised about how much irrigation is necessary to keep South Cove’s public areas attractive. Reducing water consumption would help the budget, as it did this past year, saving the neighborhood $2,000. It was decided that the neighborhood is fine with the grass in public areas being somewhat yellow in the hottest summer months. The grass on Kelley Beach will be watered once a week, as it is so shady. The grass along Yelm Hwy., which is more exposed to the sun, will be watered twice a week. This can always be adjusted according to weather conditions. A brief discussion was also held about seeding areas with a more drought-resistant grass. It was suggested that we might start with a small trial area to see the results. A concern about this new grass being an invasive species was raised.

• A lengthy discussion was held on the topic of the perimeter fence around the neighborhood. The fence was last replaced in 2015 at a cost of $40,000, with each household being assessed. The Reserve Study plan indicates the fence might need to be replaced in another 10 years, but this time would cost closer to $100,000. The question brought before those present was whether the majority wanted the HOA to maintain ownership of the fence, which would raise the annual dues by an extra $100, or if it should be turned over to those homeowners whose property is bordered by the fence. It was explained that the CC&Rs only state that the HOA “may” have ownership of the fence. It is not required. The fence could be “gifted” to each individual property owner bordered by the fence. Multiple questions were raised concerning standards for individual maintenance, stray dogs, rebuilding standards, or even the option of removal. Verbiage on these issues would need to be sorted out by the Board with assistance from a lawyer. The resulting language and standards would then become part of the CC&Rs. By a show of hands and with proxies, a vote was in favor of exploring turning the perimeter fence over to individual homeowners whose property is bordered by the fence. The Board will discuss how to move forward with this exploratory process at the next meeting. It was explained that this process will likely take months to complete.

• Laurie gave a Landscaping report. She suggested a Community Day to remove old, damaged fencing from around the retention pond, to be replaced by new fencing and new barberry bushes. A discussion was held that for security and safety purposes, a fence, potentially with bushes around the public side of the pond, is a necessity. It was decided that fencing the area of the pond within the Commons was unnecessary as the only access from the Commons is from the lake.

• A vote was held to replace the temporary goose fence along the lakefront with a more permanent fence at an approximate cost of $1,000. The vote was in favor of this project, with the work being done by a community work detail.

• Gordon gave an Architecture committee report. He reported several requests and approvals for roof replacement this past year.

• Gordon discussed group services that could be offered this year, including for required backflow testing, which has been a popular group service offering in the past, and possibly a group septic pump out, if there is enough interest.

• Gordon reminded those present about the South Cove website, and that residents should check there for meeting minutes, CC&Rs, and any and all paperwork relating to South Cove that realtors or others might need. These documents can all be accessed online. He reminded residents that the Board voted in June of last year to enact a new rule that any individual or company that would like hard copies of any South Cove documents will be charged $1.00 per page with the first 5 pages free. This is to protect South Cove from exorbitant printing fees.

• The boat removal requirement was discussed. There are still 4 kayaks on the boat rack, even though all boats should have been removed, according to a new rule, by the end of September. One boat has been claimed and will be removed, one is still pending, and it was determined that two boats on the rack were abandoned by a former resident. Those two boats are free to the first residents to claim them. They still should be removed from the boat rack. Boats are allowed back on the rack at the beginning of March. If you would like to reserve a space on the rack for the summer months, please speak with a Board member.

• Those present unanimously approved the appointment of the following people to the South Cove HOA Board for the coming year (2025):

Gordon Baldwin

Chick Barcellona

Jeanne Englert

Mindy Ewing

Laurie Kirschner

Tracy MacMillan

Brett Sevruk

A Board meeting will be called in the near future to assign duties for each

member.

• The 2025 Budget was approved unanimously. Tracy advised that dues could be paid for the entire year up front, by each 6 months, or quarterly. She will be providing statements for each household in the near future.

• John asked for suggestions about mailbox replacement due to a failure of the lock on the Ewings’ box. It was suggested that he try replacing the lock first instead of the entire box.

• Paul mentioned that he had found a set of keys attached to a Mercedes fob on 68^th Loop. Please contact him if you have lost your keys.

A motion for adjournment was requested. It was so moved and seconded. The meeting was officially adjourned at 8:43 p.m.

Minutes submitted by Mindy Ewing, Secretary, on January 17, 2025