Ocean Grove Association Annual Membership Meeting Minutes

April 2, 2017

Present: Tom Lemmons, president; Don Kruger vice president; Eric Lucas, secretary; Sean Stehura, and Jerry Gorsline directors; Dan Näsman, manager and 50 Members and guests. Absent: Laura Souza, treasurer, and Shellie Mueller directors.

After a light buffet luncheon, President Tom Lemmons called the meeting to order at 1:15 PM. He welcomed members and guests and introduced the board members in attendance.

Manager Dan Näsman introduced Phillip Morley, Jefferson County Administrator, to bring an update on the Ocean Grove request to be designated as a no-shooting zone, a request that was submitted to the county in March 2015. Morley expressed regret over the delay but indicated that a hearing on the request was to be held at the county building on May 22nd.. Morley noted that Native American groups with treaty rights in the area had to sign off, which was deemed very likely, and he encouraged attendance by Ocean Grove owners. (When time and place are confirmed a message will be sent to all owners.)

A report on Ocean Grove property sales was provided to the members.  It noted that Ocean Grove had 82 residential units, which is 73% of its capacity of 112 residential units. Seven homes sold during the past 12 months along with six undeveloped properties.  Five undeveloped properties remain for sale and one home was listed for sale in the previous week.  Home prices ranged from $265,000 to $450,000 and undeveloped property sales ranged from $41,000 to $130,000.

Näsman summarized the Association’s investments, noting that the bonds and equity holdings (mutual funds) generated $13,525 in interest and dividend earnings that averaged 3.8%. Because high interest bonds were called early and one was sold when Edward Jones advisers warned that it was deemed to be at risk of default, the newer investments produce about $9,000 less that the highest earning years. This drop in income necessitated an increase in annual homeowner fees to $20 per lot and RV annual storage fees to $150 last year—a fee that is continued.

Näsman also noted the necessary Association expenditures: property tax, liability insurance, tax filings, etc and reported that lot fees would be around $35 per lot except for the investment income.

The budget for 2017/18 was presented for membership approval. The projected income, along with the cash balances in the First Federal checking account and the Edward Jones Money Market account are sufficient to cover projected expenditures. The budget was unanimously approved by paper ballot.

Members were requested to vote for two director positions. Incumbents Don Kruger and Tom Lemmons were the only nominees and were re-elected by paper ballot,

Open discussion focused on issues relating to concerns over the hardness of the new water supply, disappointment in the number of dog owners who do not pick up after their pets, and concern regarding fast drivers on Ocean Grove streets

Adjourned 2:20PM

Eric Lucas, Secretary

Next Board (Annual Reorganizational) meeting

April 7, 2017, 10 AM at the manager’s home

 

 

 

Ocean Grove Association Annual Membership Meeting Notice

Sunday, April 2nd at the Northwest Maritime Center

Buffet Lunch at 12:30; Business Meeting at 1:00

The annual Ocean Grove Association member’s meeting will be held on Sunday, April 2rd at the Northwest Maritime Center, located at 431 Water Street in downtown Port Townsend. A light lunch will be served at 12:30, followed by the annual membership meeting at 1:00.

Annual fees ($20 per lot and $150 per RV storage space) may be paid at the meeting or mailed to the Ocean Grove Association, PO Box 519, Port Townsend, Washington 98368. A late fee of $10 will apply to payments received after July 1, 2015.

At this meeting you will be provided with a proposed budget that reflects the Association’s finances and needs. It reflects little change from the current budget. Your approval of the budget is requested. As the financial report will show, our bond interest remains stable after some significant reductions that resulted from early calls on high interest bonds. Owners’ obligations for liability insurance on common areas, for property taxes on common areas, and for maintenance and improvements to common areas are minimally covered by the lot fees. Interest earned on our $350,000 in investments provides the bulk of Association expenses.

Two board member terms expire this year, Don Kruger and mine. Each of us has agreed to run for another term, but floor nominations also will be accepted at the annual meeting

The agenda also provides an opportunity for an open discussion of any topics brought forth by those in attendance.

Your attendance is strongly encouraged. The Northwest Marine Center has proven to be a popular place for our meetings and the social aspect of the buffet luncheon and the opportunity to participate in setting the direction for our Ocean Grove community should make it a rewarding experience for you.

Tom Lemmons, President

March 1, 2017

 

Agenda for Annual Ocean Grove Membership Meeting

April 2, 2017

Northwest Maritime Center

Light Buffet Lunch at 12:30 PM; Business Meeting at 1:00 PM

    1. Adjournment
      1. Open Discussion
        1. Membership vote on agenda items 6.3 (Budget), 7 (Directors),
          1. Call to Order (Tom Lemmons, President)
          2. Introduction of Board Members
          3. Acknowledgement of Association Members in Attendance
          4. President’s Report (Tom Lemmons)
          5. Manager’s Report (Dan Näsman)

          5.1 Property Transactions past 12 months

          5.2 No shooting zone (Phillip Morley, Jefferson County Administrator)

          1. Financial Report (Laura Souza, treasurer, and Dan Näsman, manager)

          6.1  Changes in investment portfolio

          6.2   2016/17 Budget Report and Asset Report

          6.3   2017/18 Budget for membership approval

          1. Nomination/Election of three directors for three-year terms. Nominations will be open from the floor

          Tom Lemmons –current president;   Don Kruger –current vice president

    The Board will hold its annual reorganizational meeting on April 7th at 10:00 AM at the manager’s home.

OCEAN GROVE ASSOCIATION
BUDGET 4.1.2017 TO 3.31.2018 Adopted Projected Proposed
FY 17 FY 17 FY 18
to 3/31/17
Cash on hand $3,860 $4,054 $5,909
Income
Bond Interest $13,525 $13,525 $13,525
Dues ($20/lot) $4,100 $4,800 $4,100
RV fees ($150/space) $3,825 $4,000 $4,000
Other Fees/Refunds $250 $250 $250
Total $25,560 $26,629 $27,784
Expenses
Office $100 $50 $75
Insurance $6,300 $6,316 $6,316
Legal/Professional Fees $1,400 $1,227 $1,227
Salaries $9,600 $9,600 $9,600
Mileage/expense allowance $1,800 $1,800 $1,800
Membership meetings $1,200 $1,400 $1,400
Maintenance $1,800 $900 $1,500
Emergency Preparation $0 $0 $500
Total $22,200 $21,293 $22,418
Taxes
Employment Security $12 $12 $11
Labor and Industry $527 $523 $557
Social Security/Medicare $1,469 $1,469 $1,469
Federal Unemployment Tax $50 $42 $42
Property Tax $450 $472 $492
Federal Income Tax $0 $0 $0
Total $2,508 $2,518 $2,571
Capital Expenses
Adelma Beach $0 $0 $0
RV Lot $0 $0 $0
Maintenance Equipment $0 $875 $100
Pet waste bags $0 $88 $150
Total $0 $963 $250
Total Expenses $24,708 $24,774 $25,239
Closing Balance $4,712 $5,909 $8,454

 

BUDGET 4.1.2016 TO 3.31.2017 Proposed Adopted
FY 17 FY 16
Closing will be updated for meeting
Cash on hand $3,860 $4,054
Income
Bond Interest $13,525 $17,472
Dues ($20/lot) $4,100 $2,050
RV fees ($180/space) $3,300 $2,400
Other Fees/Refunds $250 $250
Total $25,035 $26,226
Expenses
Office $100 $100
Insurance $6,300 $6,595
Legal/Professional Fees $1,400 $2,000
Salaries $9,600 $8,400
Mileage/expense allowance $1,800 $1,800
Membership meetings $1,200 $2,300
Maintenance $1,800 $1,800
Emergency Preperation $0 $100
Total $22,200 $23,095
Taxes
Employment Security $12 $14
Labor and Industry $527 $523
Social Security/Medicare $1,469 $1,285
Federal Unemplyment Tax $50 $42
Property Tax $450 $421
Federal Income Tax $0 $0
Total $2,508 $2,285
Capital Expenses
Adelma Beach $0 $0
RV Lot $0 $0
Maintenance Equipment $0 $50
Pet waste dispensers $0 $0
Total $0 $50
Total Expenses $24,708 $25,430
Closing Balance $327 $796