Capitol City Golf Club Estates
Homeowners Association
Annual Meeting November 29, 2016

Larry Dittloff’s President’s Letter to the
CCGCE Homeowners Association
after the Annual Meeting on 11/29/2016

The first order was the validation of a Quorum of owners and that was easily achieved with a very good turnout of attendees and submittals of proxies.

My annual address focused on several things that included:

• The Association’s relationship with Vantage which I described as one that is still evolving. Our management company has many strong points ranging from accounting and record keeping to an impartial systems approach. I stated that Vantage’s weakest point this past year was communication that more specifically revolved around timely responses to inquiries. Deborah Haskett, who was representing Vantage at the meeting, gave an overview of how her company is attempting to improve communication and the challenges of providing timely and accurate information. Vantage has shown a willingness to follow the Board’s direction as they are a lawfully contracted entity that reports to the Board. Several new compliance letters that the Board insisted on are testimony to that relationship.
• I spoke about the current By Laws and CCR’s that we all agreed to follow when we purchased our homes and why they are so important to maintaining and even enhancing the values of our homes.
• I spoke about the 3 year Reserve Study that we were mandated by State law to undertake. The said that if we had to completely replace all of our assets at the current time that we would only have about 25% of the money necessary to do that. The study recommended increasing our annual contribution to the Association’s reserves, which are not at about $148,000. The Board, this year recommended, that there be no increase in the rate of funding until the study is complete and to learn what the City of Lacey intends to do regarding annexation.
• I gave a very brief update on the possible Lacey annexation. I stated that I had not heard from the City in some time but that I would contact them to find out when they were planning on their Forum with the Home Owners and the Lacey City Council.
• I reported that the mail boxes were cleaned and that many signs had been replaced.
• I also commented that sign maintenance is an on-going project and that if someone sees a traffic sign that is in need of repair, cleaning or replacement that they should send me an e-mail.
• A new procedure for parking cut-outs will go into place on December 11th, 2016 that says that all future cut outs must have an ACC (as all projects) and that that they will have to be a specific size and that there must be a need for one. Utility trailers, RV’s and work vehicles cannot be parked in the new cut outs.
  I also reported that we had limited funds this year and were only able to paint some speed bumps.
• I emphasized that the Boards actions are all based upon the By Laws and the CCR’s and that we are attempting to enforce those agreements as a means of maintaining our collective property values. I said that I had been through two drug houses in the community and these types of dwellings are what will drive down our property values. The Board was successful in one tenant vacating one of those houses because of our enforcement of the CCR’s.

Next year’s Objectives

• Continued Management Oversight
• Revisions in By Laws and CCR’s
• Complete painting of speed bumps and investigations of other traffic devices to maintain the 15 MPH limit
• Reserve Study Continuation
• Enhance the Neighborhood Watch Program
• Storm Water Drains cleaned
• Produce another community event like the garage sales
• Open and Transparent management of Association Business

Treasure’s Address – Jayne Bradley

• Jayne reported that our total Assets as of 30 Sept 2016 were $272,244.75 with $53,984.09 in operations checking, $147,412.68 in our Reserve Account and $70,847.98 in Accounts Receivable.
• As of 30 Sept 2016 we had spent $62,301 of our current 2016 annual budget of $68,170. In all likelihood, we will exceed our budgeted expenses but those costs will be off set by larger than anticipated revenues.
• The overage is due in large part by legal fees, collection fees, and drain cleaning.
• The Web site, which wasn’t budgetted was added at my incisdence as a means of communicating with the membership. We hope to also produce a written newsletter next year as there will be some additional funds available for that purpose. There was no budget for a newsletter in 2016.
• The proposed 2017 Budget of $91,888 has now a full year of operational history for a more accurate document.
  • Legal fees are projected to spike next year because of the the re-writing of the By Laws and CCR’s. That number in 2018 should be reduced. Drain cleaning budget increased to more accurately reflect what it costs to clean the drains.
  • This year’s budget was only $3,000 for a $7,000 project.
• The Assessments for 2017 which will be mailed out in January will rise to $220 from $180 and are reflective of the 2017 proposed Budget. This budget will only add a projected $8,512 to the Reserve Fund which is dramatically lower than our Reserve Study Consultant recommended. They had recommended that we add over $40,000 to that fund for just next year. The Board decided that it did not want to recommend such a drastic increase to the annual assessments until the Reserve Study is complete and there is a resolution regarding the possible annexation to the City of Lacey.
• The proposed Budget was adopted by a vote of what I saw as 65 to 6.

Open Forum
Some great ideas and points were raised by members in attendance:

• The Board will investigate installing LED overhead street lighting as a cost cutting measure and enhancement of our existing street lighting
• The Board and Vantage will investigate several downed and obscure traffic signs and make necessary repairs
  • Speeding Traffic was discussed, at length, with the Board taking a look at additional speed bumps and other possible traffic slowing devices
• Concerns were voiced about annexation. I stated that I would touch base with the City to find out when their forum was to take place with the Lacey City Council and that when that time and place had been fixed that the membership should turn out in force to voice their opinions.
• There is a need for a PA system. I stated that that would be a part of the set up up for next year as the 2017 Budget would allow us some additional resources to provide those kinds of amenities.
• I also stated, at the suggestion of a member, that there be a cover sheet with the budget explaining the differences from one budget year to another.

Sincerely,
Larry Dittloff, President
CCGCE HOA, Olympia, WA