Finance & Legal minutes: 2022-03-22

Minutes:

Minutes of 3-22-22 Finance & Legal Committee Meeting


Present: Becky H., Becky G., Glenn, Sharon, Jeff H., Amy


1. Managing future year-end budget surpluses
* Any word from attorney Rick about whether we could put surplus funds in
the Reserve Fund?
* Yes, Rick said we can legally move surplus money from operating into
the Reserve if the community agrees. Mary and Becky will meet to discuss
several topics including the process for managing the surplus. They will
invite others to help develop several proposals for the community to
consider.


2. Bookkeeping updates
* General
* Becky hasn’t sent out reports yet this year in part because of a
shoulder issue.
* CPA wants to raise their rates. Becky negotiated a stepped increase
over two years, but they kept sending invoices at the old rate. Becky has
been in touch with the CPA’s biller to correct the invoices.
* Quickbooks license fee went up significantly, but F&L’s 2022 budget
should be able to absorb the increase
* Arrears
* One household made a partial payment and is no longer in danger of a
lien this month.
* Another household will pay $500 by the end of the month to avoid a
lien.


3. New business
* Jobs for next work season (May-October) - Amy remembered that the budget
process jobs needed to be included in the next work season. Both Mary and
Dale agreed to continue, so Amy activated the jobs and preassigned Mary and
Dale.
* Grounds would like us to discuss how we should communicate with
Touchstone about the wetlands.
* We should say in the Master Deed: If any major issues or construction
projects are planned in the wetland area, it would require agreement of
both communities. We would reach out and work with the equivalent of their
Grounds Committee.
* Glenn said TS was consulted and they agreed with the permitting for
the boardwalk
* What about costs?
* The retention ponds are GO’s responsibility, and the shared land and
half the pond are north of that.
* Becky thinks that we asked for donations for the boardwalk but doesn’t
know if any were received.


4. Master Deed next steps
* Debbi told Amy she would be interested in working with Glenn on the
Master Deed changes.


5. Planning info item for a community meeting about township zoning
ordinance
* Edits to Landlord Lease - To be added to the beginning of #5 on the
template, "Limits on Use and Occupancy."
* Landlord and Tenant should familiarize themselves with Scio Township
ordinances, including zoning. The Landlord is responsible for compliance
with Township zoning and other ordinances.


* Information item for the community meeting regarding Scio Township Zoning
Ordinances
In the last few years two neighbors have had trouble obtaining permits to
improve the lower levels of their units for use as apartments. When one
neighbor applied for permitting, Doug Lewan, a Planning/Zoning Consultant
for the Township, responded, “Please provide the purpose of your proposed
basement improvement. If used for separate living purposes the Township
cannot approve this space as it would constitute a second dwelling which is
not permitted.” GOCA’s attorney, Rick Delonis, has read through current
Scio Township ordinances and has determined that building out parts of
units as separate apartments does violate Township ordinances.


He has advised F&L to let the community know that Great Oak Cohousing
Association cannot approve use of parts of units as separate apartments and
that it is the responsibility of unit owners to be in compliance with
Township ordinances. He also advised that a statement should be included in
the residential lease template we encourage owners to use when renting
their units that landlords are responsible for compliance with Township
ordinances.


GOCA’s attorney has advised that it is not GOCA’s responsibility to enforce
Township ordinances within individual units, i.e., we are not going to
inspect units for rental arrangements, but we do need to inform members of
this information. As far as we know, the Township has never carried out
inspections. The issue has only come up during the permitting process.
Recently, two owners initially had permits denied for basement build outs.
However, approval was granted when both neighbors clarified that the
improvements were to be used by a family member.


* MONKEY: Amy will request 20 minutes on the April community meeting
agenda. Becky H. will present.
* MONKEY: We need to update some agreements to remove or change language
about separate egress walkout basement apartments. - Amy will put this on
our next agenda.
* MONKEY: Becky H. will ask Kathy if she can add the new language to the
Landlord Lease template.


6. Ongoing items
* Unit Modifications
* Unit Modification Agreements draft
* Any news from Rick as to whether the two completed UMAs have
successfully been recorded with the county?
* Rick said he would resubmit. Becky G. normally receives
notification when this is done. If she doesn’t hear anything in a month,
she’ll go back to Rick.
* From August’s minutes:
* When the UMA is finalized, Kathy will approach owners to ask them
to complete UMAs for the unit changes they have made. Our attorney says we
can’t enforce this, but at least owners will hear that they are responsible
for repairs and replacements to the modifications they have made. (There
are some exceptions, such as when some major changes are added to the
Reserve Fund.)
* Reserve Fund Investment Policy
* This will likely come up when Becky G. and Mary King meet.
* Our current Reserve investments earn very little because they are
conservatively invested. We have to be fiduciarily responsible because if
not, a member could say we are not being responsible and sue. For this
reason, condo associations always play it safe. We’ve talked about
exploring staggered CDs. Mary was looking at working with a financial
advisor to earn more. But in order for her to pursue this, she’d need to
know if the community would be interested in investing a portion of our
reserves in a vehicle with slightly higher returns but slightly more risk.
The community would need to agree to a set of investment principles. The
financial advisor has a fiduciary responsibility to the community in this
instance. That would insulate F&L and the community from being responsible
for a loss.
* Maybe we could do this with the surplus??
* How liquid do the Reserve funds need to be? The funds are disbursed
over a 20 year period, but since we update the study every 5 years, we plan
for the next 5 years of liquidity. We could potentially invest some of the
funds needed for a later time.
* If we do this, F&L would need to be protected from any legal action.
* MONKEY: BG will ask the Credit Union for advice on trying a “CD
ladder” for new Reserve funds.
* MONKEY: BG will bring this up w Mary.
* Job Descriptions
* Counted Member, Admin Asst, & Check Depositor done
* Still need to do (Amy to remind relevant people): Internal Bookkeeper,
Convener, Steering Rep, Budget positions
* F&L Cooler Doc - finish reading through doc together, next step is to
prioritize




7. Next meeting:
* Apr 19
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