August 14, 2011 – Sunset Hall, 3:00 PM
Crested Butte South, Gunnison County, Colorado

Board Members Present: All Smith, Sarah Baskfield, Duane Johnson and Cathy Frank
                                                    
Staff Present: Chris Behan, Dan Vaughn and Scott LeFevre

Property Owners Present: See List

Call to Order, Welcome and Introductions:
Al welcomed the owners and introduced the Board and Staff Members. Chris pointed out that all of the information that most folks would need is available on the website. He also explained that this meeting was more of a “state of the union” meeting and not an action meeting. If anyone wanted to be on an agenda for a specific action item to please come by the office and sign up to be on an agenda.

Reading of the 2010 Annual Meeting Minutes:
Al opted to not read the minutes. Each owner had received a copy on their chair as well as a 2011 Budget review and could read them on their own. He noted if anyone had comments or question that Dan’s email was dan@cbsouth.net.

ORE/Energy Smart Announcement:
Bart Lemmel addressed the audience regarding ORE’s Energy Smart Program. He informed them that he had a booth set up outside if they wanted more information.

Year to Date Financial Report:
Chris went through the highlights of the budget as follows:

1. Dues collection to date was 96%.
2. Budget for expenses to date was at 60%.
3. There were 36 property transfers to date at $100.00 per transfer.
4. 3% of CB South homes were pending foreclosure.
5. A legal audit has shown that the current Bi-Laws, Articles of Incorporation and Covenants need to be updated. The cost would run around $4000.00. The current versions are 40 years old, cumbersome and confusing.  According to the Colorado Common Interest Ownership Act (CCIOA) it takes 50% plus 1 of the owners to approve a covenant change. Currently there are 934 owners, 1500 residents and 530 residential units.
6. A recent insurance audit has shown that the association does not currently have Directors and Officers coverage. The association is in the process of adding that insurance coverage and also bumping the limits of liability coverage up from $1,000,000.00 / $2,000,000.00 to $2,000,000.00/ $3,000,000.00.
7. The 2011 dues were increased 7% over the 2010 rate.
8. The Budget process begins in October and ends in December.
9. The Reserve Study is not yet complete. CCIOA states that a study needs to be done to determine how many dollars should be held in a Reserve Account in case of a budget shortfall. The study is costing $3600.00. Currently we have $90,110.00 in the Reserve Account.
10. The Association is receiving bids for the replacement of a portion of the perimeter fence near the Zeligman water tank.
11. The Nordic budget was increased by $2500.00 to fund the Nordic lease. We also recently bought a new snowmobile and track setter.

There were no Officers Reports

Property Owners Comments and Question Time:

1. Brian Dale: Asked staff to break down the Professional Services and Salaries line item in the budget. Chris said that it would not be ethical.  Brian also asked for more detail about insurance costs? Chris explained that the additional insurance would cost approximately $6000.00 more than we are currently spending. He also mentioned that Workman’s Comp insurance had risen due to an accident at the ice rink last winter. Al noted that all volunteers really should be on the payroll so that they are covered by Workman’s Comp.
2. Pat DelTredici: Ask about how the open space parcels were accounted for in the budget? Chris explained that it was not a budget item. It was expensed; $16,000.00 for the land and $4000.00 for attorney fees.
3. Brian Dale: Ask about open space planning.  Al stated there was no formal planning as of yet and asked if Brian wanted to head that up? Brian volunteered to head up the open space survey committe. Chris explained to the audience that he had suggested that we sell the north parcel due to lack of an access easements. He said that it would take all of the River Rim owners to grant that easement and not all have agreed. Sue Schappert mentioned that both parcels were overrun by thistle.  Chris said he would like to get Jim Barry in there to spray but it would cost a lot of money and we have other priorities at the moment. The association has been spraying the rights-of-ways for 5 years and are having some success; however, it is and ongoing battle. He also mentioned that 7 cans of weed spray are available to the public for use on their property.
4. Jack Dietrich, CB South Metro District Manager: Jack answered a few questions regarding weed control and then explained that the Metro District had just finished the sewer plant expansion.  He said it was working nicely and that the only other item to be complete was the odor control unit. He also stated that the entire CB South water grid will be complete this fall. A project he started back in 1978. He explained to the group that they had recently purchased leak detection equipment and had found a big leak under an electrical transformer.  He asked everyone to please notify Metro if a leak is suspected. He also told the owners that he was going to expand the Metro shop by 2000 square feet to enclose the motor grader inside and other equipment currently stored outside.
5. An owner asked who his (Jack’s) boss was and explained that he worked for the Metro District Board of Directors etc.  
6. Nancy Graham: Ask about power surges that were damaging her furnace. Jeff Hanggi of Gunnison Valley REA addressed her concerns.
7. Chris Behan: Mentioned that Mail Boxes are available.
8. Al Smith: Told the group that he had bought a bunch of seedlings and that Dan Vaughn would come up with a landscape plan for their locations.
9. Fran Wickenhouser: Ask about the number of Violations this year? Chris reported that there were 44 to date and had followed up on 10. He said that Dan would have to follow up on the rest.
10. Jason Napoli: Ask about cell phone service? Chris said that Verizon does not take requests for cell phone towers. However, a repeater is being investigated. Paul Davis said that if you have broadband internet service you can buy a box for $200.00 that will give you home cell service.
11. Sarah Baskfield called Verizon and complained about her service and they sent her a free Booster.
12. Someone ask about water conservation: Jack Dietrich said that watering was only allowed between 5:00 am and 10:00 am then from 5:00 pm to 10:00 pm.

Election of Directors Closes – Two Seats
Chris stated the obvious…Two seats were open and both candidates, Cathy Frank and Pete Carey, were running unopposed.

The meeting was adjourned at 4:30 pm.