Meeting Minutes: Sept 23, 2024
SCCE Annual Home Owners Meeting – September 23, 2024
PLEASE NOTE: the following South Canyon Country Estates Homeowners Association Annual Meeting Minutes were taken September 23, 2024, and remain in DRAFT form until they can be formally approved at the Annual Meeting in September 2025.
The meeting was called to order at 7:00 pm by President Joe Doran. The meeting began with the Pledge of Allegiance.
Board Members Present – Joe Doran, Lonnie Steinmetz, Howie Aubertin, Chuck Liberty, John Santana, and Michael Montileone
Board Member(s) Absent – Marlowe McDowell
Staff Present – Mike Riker, Kelsey Wyres, and Misty Danley
Staff Absent – None
Resident(s) Present – The meeting was attended by 48 registered residents
Approval of Agenda/Call for Changes
A motion to approve the agenda was made by Chuck Liberty and seconded by Michael Montileone. Motion carried.
Minutes from the Annual Meeting held September 25, 2023, were available on the website with written copies available at the meeting. President Joe Doran called for a clarification to the tenth (10th) item under the Treasurer’s Report.
“Shawn Trupe said that this increase would be a 43% increase which is well above the inflation rate. She asked if the community would be making a vote or if the Board had the authority to make this increase. Howie stated that he would complete the research and seek input from the community. Ultimately it would be a community vote.”
Clarification to be added to the Minutes - Article VI, Section - Section 6.03, (f) The Board of Directors shall, prior to the beginning of each calendar year, determine the flat minimum monthly rate to be charged each member during the following calendar year for a specified quantity of water and other Corporate services, such flat minimum monthly rate to be payable irrespective of whether any water is used by a member during any month, and the amount of additional charges, if any, for additional water which may be supplied and the members shall fix the date for the payment of such charges, and shall notify each member of the amount of such charges and the dates for the payment thereof. A member to be entitled to the delivery of water shall pay such charges at the office of the Corporation at or prior to the dates fixed by the Board of Directors.A Motion to approve the Clarified minutes was made by Michael Montileone and seconded by John Santana. Motion carried.
TREASURER/BOOKKEEPER REPORT AND APPROVAL OF FINANCIALS
Howie Aubertin, Treasurer, presented and reviewed the HOA Fact Sheet with the residents in attendance. This sheet listed the lots (property) that are owned by and maintained by SCCE. Pool and Commons Area and Well #2, Well #1 Lot, Water Tank Lot and Well Lot. Howie also spoke on the equipment or use for each parcel of property, as well as the age of the equipment, if applicable.
July 2023 to June 2024 financial reports were available for the residents in attendance at the meeting. Howie discussed the following:
Mowing was done by an in-house person this summer in order to reduce the expense and to have more input as to how and frequency the mowing was done. This savings helped keep lawn maintenance within the budget
Jule Hager asked if the person mowing was paid by the hour or per mow and if they had liability insurance. Mike Riker informed the residents that the person was paid by the hour as an employee of SCCE HOA and was covered under the HOA insurance.
Employees of the HOA are Kelsey Wyres, Mike Riker, Misty Danley and seasonal employees. Misty was hired in January 2024. Mike and Kelsey were awarded raises at the July 2024 Monthly Board Meeting. The payroll for these employees is approximately $12,000 annually.
The expense pie chart provided to attendees showed that the Pool Area/Wells - Operations/Maintenance make up 40% of the HOA expenses, Payroll - 21%, Insurance and Taxes - 16%, Accounting Service - 6%, Website Design and Hosting - 6%, Commons Area Improvements/Maintenance - 4%, Social Events - 3%, Office Supplies - 3% and Legal Advice - 1%.
Linda Iverson asked the amount of the pool loan that will be paid off September 2024. Howie reminded attendees that the monthly payment was $2156, however the final payment is $2095.06.
As discussed during the 2023 Annual Meeting, research will continue in 2025 to determine proposed HOA dues increase due to upcoming maintenance expenses on SCCE property and to build an emergency fund in the event of a failed water main, pump, etc.
Upcoming HOA expenses are:
Red Deer Road must be chip sealed. The top of Red Deer Road has started to crack and the expense gets greater if regular maintenance isn’t done.
Julie Hager asked how often the chip seal is done. Dana Coats answered that the HOA follows the Pennington County maintenance schedule and chip seals Red Deer when the County seals the other roads within the HOA, approximately every 7 years.
The exterior of the Water Tank needs to be repainted. There are spots where the paint has worn down to the primer.
The age of our water system is a growing concern. Howie referred attendees to the HOA Fact Sheet that states that our water distribution system, approximately 3 miles of underground water supply piping, was installed in the late 1970s and into the 1980s. Well #1 and Pumphouse - deep aquifer drinking water well with pump and control system was installed in 1980. Well #2 and Pumphouse - deep aquifer drinking water well with pump and control system was installed in 1999. Our 140,000-gallon Water Tank is 40+ years old.
Rodney Larson asked how much the HOA currently has in the bank. Howie referred to the BHFCU August 31, 2024, and replied $153,300. There is $38,600 in checking, $24,400 in the 12-month CD, $43,500 in the 18-month CD, and $46,800 in the savings account.
Jennie Steinmetz requested a copy of the Balance Sheet the next time the financials are provided for the residents. Howie agreed.
Moving forward, the Board will review and approve the previous month’s financials instead of the current month. This will allow Kelsey to have the completed monthly reporting instead of a partial month.
A motion to approve the financials was made by John Santana and seconded by Chuck Liberty. Motion carried.
OLD BUSINESS
Joe Doran recapped the accomplishments in 2024:
The pool loan will be paid in full on September 30, 2024. The final payment amount is $2,095.06.
Security for the pool and courts was implemented and all residents who wanted their key fobs received them. Joe reminded those in attendance that there will always be an issue with people propping open the gate, so it’s important that the residents close the gate and keep closing the gate.
Holly Riker has done a great job on the SCCE website. Architectural Change Forms can now be submitted electronically via the website and that has increased submission to the Committee for review and approval. Newsletter information is also available on our website. www.southcanyoncountryestates.org
Compliance to the covenants has increased due to the hard work of the Covenants Committee and the letters that were mailed in Spring 2024, with the exception of the Recreational Vehicle Covenant, Article II.1, which is in the process of being amended.
ACH Payments are now accepted for HOA fees. The form to select ACH as a method of payment for your fees is available online. The completed form can be mailed to SCCE, 1520 Kings Rd, or dropped in the drop box.
An Administrative Assistant was hired and started working for SCCE in February 2024. Misty Danley has helped with the programming and distribution of key fobs, tracking for the Architectural and Covenants Committees as well as assisting the Board before, during and after monthly meetings.
Howie Aubertine updated attendees on SCCE Covenants:
Howie reminded everyone that the By-Laws and Covenants for SCCE were written forty (40) years ago. There are several Covenants that do and/or may need to be amended to evolve with the changing times. Examples of possible changes, besides the Recreational Vehicle amendment, are addressing shed and fences and defining color, building materials allowed, etc.
Implementation of a defined process of how to change a covenant to ensure transparency and accountability to the entire community.
A Work Committee was formed with members of the Residents Committee and Board Members. They have met a couple of times and are working towards solidifying the original Amendment A submitted by the Residents Committee and Amendment B submitted by the Board to come to a mutually agreed upon amendment to update the Recreational Vehicle Covenant, Article II.1. They have expanded some of the wording and definitions. Once there is a consensus by the Work Committee, they will present the Amendment to the Board for review and approval. If approved by the Board, the Amendment will go to Cale Fierro, the SCCE Attorney, to create the legalese required by Pennington County in order to file the Amendment.
Rodney Larson asked why the HOA has to pay an attorney to create the legal document before the residents vote on it. Misty Danley explained that the wording can not be changed after the vote by the residents, so it must be in legalese prior to the vote.
Another resident asked how many votes are needed to pass an amendment change. Joe Doran stated that the By-Laws state that a majority vote is required for this type of change to the Covenants. There are 145 parcels within SCCE, 4 of which are owned by the HOA. This leaves 141 parcels, 2 residents own 2 parcels each. Seventy one (71) votes are required to change the covenant.
Ruthie Delamarian asked what happens if a resident lives in California part of the year? Howie Aubertin stated that the information and ballot will be mailed to the resident. The Board is also planning on going door to door to ensure that residents are made aware of the possible change.
Bonita Lei asked since there hasn’t been a change to the Recreational Vehicle amendment yet, aren’t residents supposed to be abiding by the existing covenants they agreed to when they purchased the home in SCCE? No response was given to her question.
Members of the Covenant Committee are Ted Johnson, Michael Montileone and Howie Aubertin. Joe Doran mentioned that community minded volunteers would be welcomed on this committee.
WATER SYSTEM REPORT
Mike Riker, Water System Manager, presented the 2024 Annual Meeting Water Report to residents. The full report will be posted in the picnic shelter and on the SCCE Website.
The quality of our water is high and we haven't experienced any leaks in 2024.
Our water system and pressure system condition are in good shape. The wells are functioning properly.
An upgrade to cellular based monitoring system has been proposed at a cost of $7,500. This will allow for a less cumbersome on-call system, annual operating expenses will be reduced and will modernize the system.
The water tank needs to be repainted because the primer is now showing through the faded paint. The cost of repainting the tank will be approximately $30,000, and will include pressure washing the tank, performing any repairs to the exterior that may be needed and repainting. This maintenance will extend the life of the water tank. Mike stressed the importance of maintaining our water system equipment stating that thirty (30) years ago when SCCE purchased the water tank, the cost was approximately $1 per gallon based on the size of our tank. The current pricing for a water tank our size would be $3 per gallon or $500,000 to $750,000 if it had to be replaced.
Tri-Annual water sampling has been performed and there is no bacteria present in our water. Our water has naturally occurring fluoride and the only additive to our water is chlorine. SCCE received the Secretary’s Award 5+ years in a row for our water quality.
Mike Montileone asked how internal testing is done on our water tank. Mike Riker explained that licensed drivers physically go into our water tank to inspect and clean the tank. The divers are disinfected with chlorine prior to entering and when leaving the tank. During the inspection, the divers vacuum any sentiment that may be present on the floor and/or walls of the tank, inspect the surfaces internally and seal up any needed imperfections on the floor or walls of the tank with a waterproof epoxy. To date, we have only needed minor repairs.
Rodney Larson asked what the life expectancy of our water tank is? Mike stated that he doesn’t know for sure. Our tank was built in 1976, so it’s almost forty (40) years old now. Mike feels that the HOA needs to start looking at how to fund water system expenses before they arise. We’ve been lucky but our system is aging and the HOA needs to be prepared.
2024 POOL SEASON
Mike Riker reported:
Chemicals were purchased during the Pool & Spa Center’s Spring 20% off Sale and lasted the entire pool season.
Pool & Spa Center will be closing out the pool again this year and will address any issues they find prior to the next pool season.
One of the heaters failed ½ way through the summer and is scheduled to be repaired on September 25, 2024. Due to the cooler night temperatures, the pool was closed on Labor Day weekend because one heater would not be able to keep the water at the proper temperature.
Bathrooms were winterized on September 22, 2024.
There were a few issues at the pool this summer and Mike reported them on the SCCE Facebook page as needed.
Thank you to Jackson Herman and the Jensen family, Pool Maintenance, and Dirk Dosch, Lawn Maintenance, and Mike Riker, Pool Manager.
The Jensen family has committed to the 2025 pool season.
ARCHITECTURAL COMMITTEE
Amber Rassmussen, Architectural Committee Chair, introduced the other members of the committee; Kevin Galbreath, Shane Hennies, Joe Doran, and John Santana.
Twenty-two (22) Change Forms have been submitted to the Committee to date in 2024.
RECREATION COMMITTEE
Misty Danley assured the Board there will be a Halloween event on October 31st from 5:30 pm to 6:30 pm in the picnic shelter.
2024-2025 SCCE Calendar of Event flyers are available on the registration table and on the website.
Joe Doran asked for a volunteer to chair the Recreation Committee.
NEW BUSINESS
LuAnne Johnson has resigned her position as the Recreation Committee Chair. Joe Doran expressed the Board and community’s appreciation for her years of service to SCCE. The Board presented LuAnne’s husband, Ted Johnson, a bouquet of flowers and gift card to Alpine Inn as a sign of appreciation.
Joe Doran reiterated the upcoming HOA expenses will be a priority for the Board due to the age of the water system and maintenance required on the property owned by the HOA.
ADMINISTRATIVE ANNOUNCEMENTS
The SCCE Board of Directors meetings are held on the fourth (4th) Monday of each month starting at 6:30 pm at Doty Volunteer Fire Department. Residents are more than welcome to attend.
ELECTION OF BOARD MEMBERS
The following Board Members terms end:
Secretary - Kort Herman - Resigned prior to the meeting.
President - Joe Doran - 2 year term ended - agreeing run for another 2 year term
Vice President - Lonnie Steinmetz - 2 year term ended - Resigning
Member at Large - Michael Montileone - 2 year term ended - agreeing run for another 2 year term
Nominations from the floor for one of the four (4) open seats on the Board:
Terron Voller
Al Stockman
Dana Coats
Amber Rasmussen
Complete list of residents willing to serve a two (2) year term on the SCCE Board of Directors:
Joe Doran
Michael Montileone
Terron Voller
Al Stockman
Dana Coats
Amber Rasmussen
Nominees elected to the Board:
Dana Coats, President
Al Stockman, Vice President
Amber Rasmussen, Secretary
Terron Voller, Member at Large
Thanks to Joe and Michael for their willingness to serve another term on the Board.
With these changes, Black Hills Federal Credit Union (BHFCU)’s authorization/information on our financial accounts will need to be updated. Joe will need to be removed and Dana will need to be added to the account. They will work together on a time to get this accomplished before the October 28, 2024 meeting. Joe gave the President’s keys to Dana.
A motion to shred the ballots was made by Lonnie Steinmetz and seconded by Chuck Liberty. Motion carried.
Thank you to the resident who took time to attend our Annual HOA meeting. We appreciate your input and support!
A motion was made to adjourn the meeting by John Santana and seconded by Chuck Liberty. Motion carried.
Meeting adjourned.
Respectfully submitted on behalf of Amber Rassmussen, Secretary
Misty Danley, Administrative Assistant to the SCCE Board
