somerset estates homeowners meeting
TRANSCRIPT
Somerset Estates Homeowners Meeting
March20,2018
SOMERSETESTATESHOMEOWNERS:SIGN-INANDOBTAINBALLOTTHANKYOUFORATTENDING!
TheinformationinthispresentationwaspreparedbyEstateshomeownerswhopreviouslyservedonBoard-appointedcommittees(SeparationCommittee/Dues&DeclarationsCommittee)
MarcArnold,AnthonyChirikos,PaulaHemenwayandSusanReilly
Heights/Place (top) and Estates (bottom)
SEHOA89Homes
SHOA79HomesANewReality:
“SeparateandDistinctLegalEntities”
Meeting Objectives • Determinethenumberofdirectorstobeelectedtonightbythehomeowners(atleast3)
• ElectaninitialexecutiveboardforaSomersetEstatesHomeownersAssociationtoserveuntilthefirstannualmeeting,atwhichtimeanexecutiveboardwillbeelectedaccordingtothebylawsestablishedbytheassociation
WeanticipatethefirstannualmeetinginJanuary,2019
Future Meeting Discussions • Therearenumerousquestionsandconcernsaboutourneighborhood.Afunctioningassociationandexecutiveboardisneededtoaddressthese.• ThedecisiontomergewithSHOAcan’tbedecidedatthismeeting.• Thenewboardcansetupfuturemeetingstoaddressindetail:
• Proposaltoamenddeclarations,includingdues/budgetprocess• Waterrightsandirrigationsystem• ProsandconsofmergingwithSHOA• Howthepoolfitsintoallofthis(jointwithSSTCboard)• Landscapingoptions• Etc.
CCIOA 101 • CCIOA=ColoradoCommonInterestOwnershipAct.LawthatgovernsCommonInterestCommunities(CIC).AllprovisionsapplytoCICsformedafterJuly1992;someapplyto“pre-existingcommunities”.• CommonInterestCommunity(CIC)=Realestatedescribedinadeclarationsuchthatahomeownerisobligatedtopayforthecostsofotherrealestatedescribedinadeclaration(commonelements).• Declaration=RecordedinstrumentsthatcreateaCommonInterestCommunity,includingamendments,platsandmaps.HighestlevelgoverningdocumentforaCIC,sometimescalled“Covenants”.• HomeownersAssociation(HOA)=Aunitowners’associationorganizedtomanageaCIC,typicallyanonprofitcorporation.PerCCIOA,themembershipoftheassociationatalltimeshallconsistexclusivelyofallunitowners.
CCIOA 101, cont’d • CommonElement=Anyrealestatewithinaplannedcommunityownedorleasedbytheassociation,otherthanaunit.
• CommonElementsinSomersetEstatesarecalledOutlots.AssessedvalueofOutlots=$0.“Thevaluationofthecommonelementsshallbeassessedproportionatelytoeachunit…andthecommonelementsshallnotbeseparatelytaxedorassessed.”ExampleLegalDescription:OUTLOTKBLK5SOMERSETESTATESBLOCKS234&5VALUEDISTRIBUTEDPER38-33.3-105CRS
AssociationisresponsibleforthemaintenanceoftheOutlots,perDeclaration.
Brief History of Somerset Estates Date Action
1980s HillsideEstatesplanned–Plat,Declarations,HOA-votetomergewithCWHin1988.
9/89 Block1(Firethorn,Cattail,Bellflower)PlatwithlegaldescriptionofHillsideEstates
5/90 CottonwoodHills(CWH)HOAnamechangedtoSomersetHomeownersAssociation(SHOA).CWHismorecommonlyreferredtonowasSomersetHeightsandSomersetPlace(butisoneCIC).
6/92 1988mergerbetweenHillsideEstatesHOAandSHOArecordedwithSecretaryofState.
7/92 Blocks2-5(everythingelse,includingtheOutlots)PlatwithlegaldescriptionofSomersetEstates
12/92 Declaration(Covenants)recordedforSomersetEstates,withSHOAasthemanagingassociation.CoversBlock1andBlocks2-5.CWHhasseparatedeclaration.
2016 SHOABoardattemptstopassupdated,singledeclarationforbothCWHandEstates;votefails.BoardpetitionsDistrictCourttoimposedeclaration,perCCIOArules.
5/17 Petitiondeniedonbasisthat“SomersetEstatesandCottonwoodHillsneighborhoodshavenotbeenlegallymerged”andare“separateanddistinctlegalentities”.Assuch,acombinedvoteonasingledeclarationisinvalid.
Actions Taken after Court Order • AtJuly2017annualmeeting,boardappointeda“SeparationCommittee”anda“DeclarationsCommittee”toinvestigateimplicationsofCourtOrderanddevelopplantotryagaintopassnewdeclarations.• CommitteesmadeajointreportinDecember2017.Simpleanswer:
• Wecan’tcontinuewithasingleHOAforseparateCICs.• ThedefaultpositionisthatweareseparateandneedafunctioningassociationforEstates.• Alegalmergerrequires“anagreementprepared,executed,recorded,andcertifiedbythepresidentoftheassociationofeachofthepreexistingcommoninterestcommunitiesfollowingapprovalbyownersofunitstowhichareallocatedthepercentageofvotesineachcommoninterestcommunityrequiredtoterminatethatcommoninterestcommunity”(CCIOA38-33.3-221)
• Therefore,evenamergerfirstrequiresthatEstateshasitsownassociationandpresident.
• SHOABoardretainedanattorneytoarriveatherownconclusion.TheBoardhasnotreleasedtheattorney’sreport;however,itappearsherfindingswereessentiallythesameastheCommittees’.SHOAsentalettertoallhomeowners,followedby“FAQs”.
Responsibilities of Executive Board • Electofficers• Retainanattorneyandfilearticlesofincorporation• Establishfinancialsystems–banking,accounting,etc.• Communicatewithhomeownersaboutassessments• AdoptBylawsandRules&Regulations;reviewCCIOArequirementsforHOABoards• Holdseriesofhomeowner/boardmeetings• WorkwithSHOABoardonagreementstokeepneighborhoodfunctioning• ProposeamendmentstoDeclarations• AppointCommittees:
• Declarations• ArchitecturalControl• Landscaping/water• Social(maybewecoulddosomethingfun!)• ??
• OtherissuesthenewBoarddeemsimportantorthathomeownersaskittodo.
Nomination and Election of Executive Board • Eachhomerepresentedherereceivedoneballot.Eachproxyholderreceivedaballotforeachproxy.• Ballotslisthomeownerswho’veagreedtobenominatedtoserveontheInitialExecutiveBoarduntilthefirstannualmeeting,probablyJanuary2019.• Agreementtosetnumberofdirectors(X)• Nominationsfromthefloor(ballotwrite-in’s)• Briefintroductionbyeachnominee• VoteconductedbyplacingamarknexttoXnominees• Adjournmentwhiletallyingtheballots:ToprankedXcandidateselected• Runoff,ifneeded,forcandidateswithlessthan50%
Commitment • PrimarygoaltoservethebestinterestsofSomersetEstateshomeownersbyprotectingandimprovingthevalueofourhomes,andimprovingourqualityoflifehere;
• Wewilltrytomaintaincontinuityofservicesandavoiddisruptionduringthetransitionperiod;
• Wewillworkwithoutpreconceptionstoperformarational,unbiasedandtransparentassessmentofthelegal,financialandpracticalimplicationsofavoteofthehomeownerstomergewithSHOAcomparedtooperatingasaseparateHOA(withcommercialagreementsbetweentheHOAs);
• Inadditiontoformalminutes,wewillissuesupplementalupdates,conductmeetingsandinvitehomeownerstoattendworkshopstoremaininformed,participateandvoicetheirideas,suggestionsandconcerns;
• ThedecisionregardingwhethertomergewithSHOAwillultimatelybelefttothehomeownersinaccordancewithvotingrequirementsforamerger;
• WewillmakeeveryefforttocollaboratewiththeSHOAboardtoarriveatamicable,timely,andmutuallybeneficialarrangements.
[Pause During the Vote Tally]
• Pleasevisitwww.SomersetEstates-HOA.comforupdates• Thispresentationwillbepostedonthewebsite• Anaddresshasbeenestablishedasfollows:
SomersetEstatesHomeownersAssociationPOBox621Niwot,CO80544