Finance & Legal minutes: 2016-11-09

Agenda:

2015 Audit
2017 Budget Process
Arrears
Repairs & other committee responsibilities
Tree house: liability insurance
Subfloor responsibility update
Master Deed update
Truck Policy update
Miscellaneous/ongoing
Reschedule Next Meeting

Minutes:

Present: Becky G., Becky H., Debbi, Keith, Amy

1. 2015 Audit

Becky hopes to finish getting items ready to send to the auditors tomorrow,
including:

- Our responses and further questions on the first Q&A we sent to the
auditors

- Our responses and questions about the audit draft

- Cross checking the paper copy of the draft audit that arrived on
Monday, which had a different attachment than the one Jessica had sent
electronically. An example of something new that needs work: We have to
make some adjustments for accrual accounting, e.g. the water bill paid in
Jan. 2015 was actually a 2014 expense. Fixing this requires multiple steps
in the books.

- Additional steps beyond creating the new account for CH Special
Assessments. Becky will be meeting with Len and Susan about these
tomorrow.


Once these changes are made and our questions and comments are addressed,
the auditors will send us a final copy of the audit report.


Having made all the journal entries, Becky ran a report to see how much
money was left at the end of 2015. The good news is that there is some
money left, but Becky wants to check some things before sharing the
number. She would like to get this out by the end of this weekend, in time
for the budget meeting.


The invoice for the audit was about $2600. This comes out of a designated
savings account. We budget to pay into the account every year. We've
talked about having Jessica's firm either do a review or an audit next
year, as well as our taxes.


2. 2017 Budget Process

a) 2015 year end balance: discussed above. Whatever is leftover at the
end of 2015 will be used to offset the 2017 budget.

b) Can F&L trim any expense lines to help with the bottom line for the
2017 budget? Amy will write to Mary and Dale to say we are willing to drop
the professional fee line from $5000 to $4000 for 2017.


3. Arrears
One household is over the lien threshold of $1000 in arrears despite a
payment agreement. Last email communication was on October 6. Debbi will
follow up.


4. Emergency buildings repairs and other committee responsibilities
A leak in the upstairs bathroom in unit 517 caused significant damage to
both the upstairs and downstairs baths, including drywall and flooring.
Some mold had developed. Buildings Com is working to figure out whether
GO's insurance will be called into play. If so, F&L will need to get
involved.

Ideally, homeowners will notify Buildings as soon as a disaster occurs, and
work with Buildings on what should be done. If an insurance claim needs to
be made, F&L would get involved. It's important to get itemized receipts
so we can sort out the claims to GO's insurance and the homeowner's
insurance


What is the community's obligation in terms of timeliness to protect our
investment? If a homeowner does not act swiftly, it seems like the bill to
GO may be higher, but this is difficult to ascertain.


This discussion led to the idea of asking for 10-15 mins at the start of
the next community meeting to ask for input on how to address issues that
straddle or fall between committees or are not being addressed. Should we
reconvene the Steering Committee? Hold an all-committee summit? We are
seeing a bunch of issues like this. We're bringing these up because they
have long-term financial implications. Examples include:

a) Building disaster procedures
b) Plowing/snow removal
c) Spigots
d) Treehouse

Amy will ask agenda planner/Steering convener Gail Graham and budget gurus
Mary and Dale for 10-15 minutes on the 11/21 agenda. We will meet before
Debbi goes out of town on 11/17 to plan the presentation. Amy will invite
Gail. If she can't attend, we'll bring her up to speed another way. Susan
King is the meeting convener; Amy will bring her into the loop.


5. Treehouse

We wrote to our insurance co. to ask for guidance on liability insurance
for the treehouse. The response was a request for responses to the
following questions, which are followed by our answers or follow-up plans:


1) Replacement value of treehouse?
We do not intend to replace the treehouse. We are only interested in
liability insurance coverage.


2) How far away from any electrical lines?
There are none nearby; all electrical lines in the community are
underground.


3) What is the height from the ground?
Amy will measure or ask Dale.


4) How supported: support posts from ground? bolts in tree? Suspension
cables from higher branches?
Posts cemented into the ground, and suspension cables from higher branches.


5) Any sand, wood mulch or other material around base to cushion any
falls?
None.


6) Adult supervision required?
This has not been determined yet.

7) Any liability release agreement signed by association members for
their families and guests?

We think this is a good idea and will ask our attorney to help write an
agreement. We will ask parents in GO to sign as well as families in
neighboring cohousing communities who wish to use it.

We could ask our Ambassador (Gayle Turner) to reach out to TS to let them
know that this is coming, to get it on their radar. Debbi will ask Rick to
prepare a liability release agreement


Sign wording: This tree house is private property for use by Great Oak
Cohousing members and their guests only.


Amy will ask Dale for a sign and let GO and the other communities know that
this sign is temporary while we work out liability insurance coverage.


Amy will email Grounds and ask them to further develop the treehouse usage
policy while we address the insurance and liability aspects. An agreement
exists that needs further work. She will point out to Grounds that there
is no community agreement about replacing the treehouse, so we're not
putting it in the reserve or insuring it for replacement. If they want
something different, they can get community approval as part of finalizing
the agreement.


6. Subfloor responsibility update: Debbi will nudge Rick.


7. Master Deed update: tabled until January


8. Truck Policy update
a. Working on exchanging non-functioning keypad.
b. We do not have collision coverage on the truck bc blue book value is
close to the deductible. To date we have been talking about the insurance
deductible with repairs in mind; this does not apply to the current truck.
However, we agreed that we should write the policy to cover any future
truck.


9. Miscellaneous/ongoing
a) Parkland Plaza Sidewalk: Amy will follow up with Mike P. about
writing a letter for residents in the three communities to sign, to
demonstrate support.
b) Status of removing lien: Subsequent to the meeting, we heard from
Rick that the lien has been released since the household paid in full.
c) How is it going for Buildings with spigots and smoke detectors?
Keith has created a spreadsheet, sent an email, heard back from some
people, will check spigots this weekend. Sent instructions on how to
change batteries.
d) Family Farms update: Becky gave Keith a copy of Kito's insurance and
Keith sent an email to one of the active members and also sent to Richard.
Keith will give them a deadline to provide proof of liability insurance:
December 31, 2016.
e) Moved deck refunds and CH Assessment Liens to the Cooler doc.



Did not discuss:
f) Check that all three sets of office insurance info have been filed.
g) Have new insurance policy docs been uploaded to important docs
section of WIKI?
h) Next step on units being charged property taxes on garages they don't
own


10. Next Meeting: Due to Thanksgiving, rescheduled to Weds 11/30 @ 7 pm
in the CH Game Room [Subsequently rescheduled to Sun 11/27 @ 7 pm]


F&L Agenda Cooler List (Amy updated the Priority Tasks section 12/29/15;
the rest needs updating!)

https://docs.google.com/document/d/1_dmnNJmHmrwwFIfnscnRbPK-_8_kmahfFsOTn_fEvTY/edit