Adding/Removing Items From the Reserve Fund

Finance & Legal 2015-08-17

Summary:

Discussion and agreement can be found in the 8/17/2015 Community Meeting Minutes:
http://gocoho.org/boa/index.php?id=minutes&num=2094

Proposal:

Mary explained that this is Part II of a 3 part process as we update our
Reserve Study.



Part I - We consensed on a set of criteria for deciding what should be
included in our Reserve Fund.

Part II - We're examining the specific items that should be included or not
included.

The first proposal said that everything currently in the Reserve stays in
unless the community specifically agrees to remove it.

This proposal addresses items that would no longer be in the fund based on
the new criteria, but which we have already started saving for. This
proposal says let's keep them in until we actually replace the items, then
take them out after that. The cook top is a good example. We have already
started saving for it. Once we replace it, we will not save for the next
one in the Reserve because it costs less than the threshold amount of $2500.

Tonight's proposal also addresses what we will do with the money we have
been saving for individual households to replace their decks. Since decks
are not a common element, they should not be included in the Reserve. We
want to remove them from the Reserve, but to be fair we will refund the
amounts saved to each household.

Here are the items in the proposal that would be kept in the Reserve until
they are replaced (because we have started saving already), then once
replaced, the items will be taken out of the Reserve:
Cooktop
Refrigerator
Window treatments
Asphalt slurry seal, which will be changed to crack repair

Items to be added to the Reserve:
Add solar panels
Solar panel inverters
Hot tub
Smoke detectors
Outdoor LED lighting

Process Comments:

Stand asides:

1. Becky H.: I'm uncomfortable with it. We are so careful about our
spending in committees. (However, getting a new hot tub now makes more
sense than saving for a big ticket item that\'s not working for a years.)

2. Willie: I would support it at a $4000 level. I would want to see
some serious shopping. We\'d be locking ourselves into an artificially
determined amount for many years.