Finance & Legal minutes: 2021-04-26

Minutes:

Minutes of 4-26-21 F&L Meeting


Present: Becky H., Becky G., Amy, Debbi, Sharon
Guest: Mary King


1. Monkey Review
* BG will post the reserve study on the important documents page
* BG will check in with Mary about Reserve fund increases for the next four
years. We *might* have to make an adjustment sometime during this 5 year
period. Dependent on Investment Strategy.
* BG will update GOCA insurance policy once we have valuation of Willie &
Katie’s addition from the builder - IN PROGRESS: Insurance agent Susan
Rosales wants to meet with BG in April to go over these changes and any
other changes we want to make to make sure everything is up to date. -
UPDATE: Susan didn’t get back to Becky, but since Becky just got the
policy renewal documentation, she will follow up.
* Becky needs to sign an agreement for the audit firm to do taxes only, not
a review - DONE - emailed Friday to make sure they’re still working on it.
There were some issues including a bug in Quickbooks, but the tax return
should be ready soon, maybe by the end of the week.
* Amy will send a message to Talk to say Dr. Sharon recommends waiting 2
months to change our cleaning and other protocols in the CH. - DONE


2. Bookkeeping Updates
* Arrears
* One person is a month behind. In another month, let them know they’ll
be over the $1000 threshold for placing a lien.
* No other bookkeeping news apart from what is noted above in the MONKEYS.


3. New Business
* Reserve Fund Investment Policy Ideas (Mary King)
* Currently invested in no-risk investments w yield of 2%. Last 12 mos,
inflation rate has been 2.6%, so we have a negative return. This is the
same strategy we used for past Reserve studies, except in the past it
showed a significant increase. Michigan Condo Law appears to be silent,
except we should have a Reserve Investment Policy (RIP - laughter). Mary
and Glenn have been working with Hantz Investment Group, very creative and
knowledgeable. GO has about $450K in the Reserve fund, is there anything
they can do to help? They suggested: you’ve got to have a RIP, we’d be
happy to help your community think about this. Would recommend a tiered
investment strategy. Look at what we’ll need in the next 5 years, put that
in no risk places, put the rest for 20 years in places with greater opps
for return (which of course would have more risk). Would need a comty RIP
to be consensed on.
* Amy remembered that Elph had been advocating for a RIP several years
ago but it didn’t happen. Sharon sent Elph an email to ask for information.
* MONKEY: Becky G. will ask our attorney Rick about any legal
information about RIPs for condos and meet w Mary afterwards to talk about
an agenda. Would help to have a few examples for what would be in a RIP.
Mary could give a quick background, including the fact that we're falling
short of our goals. GO goal is based on 2% but inflation is now 2.6%
* Zoning issue
* Elph and Andrew recently tried to pull permits from Scio Township for
their basement build-outs and were told that they cannot create separate
residences. Both explained that they are building out for relatives to
occupy.
* Zoned single family
* Accessory Dwelling Units - can’t have those the way we are zoned
* It’s the Scio Township ordinance that says what a single family zoning
is allowed to do. GO is in that category. It’s a combo of the ordinance
and how we’re zoned. We’re zoned for a particular density.
* City of A2 is now allowing more ADUs.
* Extended family purposes is allowable
* MONKEY: Becky will talk to our attorney about this as well.
* Legal & Insurance issues for hiring CH cleaners
* Hire a company with licenses, bonding, and insurance.
* Don’t hire a GO member unless they carry insurance
* Becky prefers to pay monthly, but could be every 2 weeks if really
necessary, will be paid by check.
* If we're paying an outside group, Becky will need to fill out a 1099
to send to them at end of year. Would need all the pertinent information
needed to track this. EIN or SSN.
* Restart lease documentation project next work season - MONKEY: invite
Kathy B to a future meeting


4. Ongoing Business
* Master Deed/Bylaws update check-in (Debbi)
* Deck repair - it’s GO’s responsibility to repair decks until MD is
changed
* Sharon - needs to replace 2 boards
* MONKEY: Sharon offered to read Debbi’s draft
* Building Modification Agreements drafts (Sharon)
* MONKEY: Everyone please read Sharon’s draft in time for next meeting
* She modified Willie &Katie’s version. What is missing?
* F&L Cooler Doc - finish reading through doc together, next step is to
prioritize


5. Next meetings:
Tuesday, May 25
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