Board of Directors’ Meeting
December 10, 2015
2:00 PM
Board Member(s) Present:
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Richard Moore, President
Russ Long, Vice President
Wayne LeBlang, Treasurer
Loretta Currie, Director
David Sari, Director
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Paula Turner, Secretary
Ed McGraw, Director
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Michael Walker, General Manager
Kelly McGalliard, Operations Manager
Board Member(s) Absent:
Also Present:
CALL TO ORDER
The Board of Directors’ Meeting was called to order by Richard Moore at 2:00 PM in the PGA WEST
Residential Association Customer Service Meeting Room.
MINUTES FOR PREVIOUS MEETINGS
Approve & Waive Reading of Minutes – Wayne LeBlang made a motion to approve and waive the reading
of the minutes, from the Board of Directors’ Meeting of 10/29/2015 and the Executive Session of
10/29/2015. Seconded by Loretta Currie; passed unanimously.
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OPEN FORUM
A number of homeowners were present, as well as Scott Easton, Managing Director for the Desert Classic
Charities. Mr. Easton gave an update on the status of the upcoming Career Builder Challenge Golf
Tournament, which is scheduled to take place on the Stadium and Nicklaus Tournament courses at PGA
WEST, the week of January 18, 2016 through January 24, 2016. No action required; none taken.
Ms. Jill Sullivan expressed her discontent regarding the lack of lighting on the palm trees on PGA
Boulevard. Mr. Moore explained that PGA Boulevard is the responsibility of the Master Association;
therefore, her comments should be directed to that Board for consideration. There was also a brief
discussion about the absence of quality holiday lighting. Again, Mr. Moore advised that the holiday lighting
at the PGA WEST entrances is under the control of the Master Association. Gary Dolenga, a Master Board
Member commented that the lighting that is currently in place is the extent of the holiday lights; he further
explained that the electrical system in place is not adequate to accommodate additional lights.
Mr. Russell Reidy presented questions regarding the 2016 budget. He asked why the budget for 2016 is
increased over both 2015 budget and projected 2015 results for water, given that water rates have not
increased and the Association’s consumption has decreased. He also inquired as to why the Landscape
Budget for 2016 is increased. Mr. Moore responded that regarding the water budget, the 2015 water budget
was based upon business as usual; it was developed long before Governor Brown’s mandate regarding water
consumption reduction and CVWD’s imposition of drought penalties and fines. The reason we are
projecting ending 2015 under budget for water is that due to the Governor’s mandate, we severely cut the
water use in June and July, which is when the Association typically uses the most water. This allowed us to
save water and funds; however, as a result we lost a lot of plant material. Subsequently, we incrementally
increased watering to save plant material. In the fall, we increased our water use even more to allow us to
over seed front and courtyard lawns and we planted some flowers. As a result, to date, we have received
penalties in excess of $25,000. We know that number will climb as we have not yet received our CVWD
invoice for November watering, which included providing water to germinate and maintain street side and
courtyard lawns. Further, CVWD has already declared that they will likely raise water and penalty rates in
2016. For 2016 we have attempted to budget to accommodate maintaining existing plant material and lawns,
and we have accounted for anticipated penalties. Any excess funds that are realized as a result of reduced
planting or watering is being allocated to installing drought tolerant landscaping at the interior of the
perimeter Oak Tree wall.
Mr. and Mrs. Reidy expressed their dissatisfaction with the decision to stop the Riviera landscape project at
Tanglewood, rather than continuing all the way down Riviera. Mr. Moore replied that the funds that were
available for the initial project that was intended to help decrease the amount of water and mud in the street,
amounted to enough money to get as far as Riviera and Tanglewood. Mr. Moore stated that as funds are
available he believes the Board would like to continue with this type of landscape theme throughout the Res
I property.
Mr. Moore stated that regarding Mr. Reidy’s question about the increase in the 2016 Landscape budget, the
primary reason for the increase is that effective January 1, 2016, the state’s minimum wage increases by
$1.00 to $10.00 per hour. This increase has a substantial effect on the Association’s Landscape Maintenance
contract.
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Tony Wesley, homeowner, stated that Sunshine Landscaping removed a number of dead bushes from his
courtyard and that he would like to purchase new plant material to be planted in his courtyard. He
questioned whether this is in violation and if not, would the HOA install the new plants? Mr. Moore replied
that as long as the plant material that Mr. Wesley intends to install is Association approved and that Mr.
Wesley understands that if the plant material dies that the Association is not responsible to replace the plants,
then the Association’s landscaper will install the new plants. Regarding the water for those plants, Mike
Walker informed Mr. Wesley that the courtyard water in Legend units comes off of the homeowner’s water;
therefore, the owner pays for the water. At present the Legend courtyards are being watered as usual, except
that the most recent directive prohibits outdoor watering on Mondays and Thursdays. This lack of water
could cause plant material to stress if the water restrictions stay in effect into the hot summer months;
although, the provision regarding no watering on Mondays and Thursdays is tentatively scheduled to expire
in March 2016.
Jill Sullivan, homeowner, stated that she believes that the Association would be better off paying the water
usage penalties than reducing the water usage and losing plant material. Mr. Moore responded that at the
initial time of the mandated water reduction, we did as required and met the 36% requirement, but then the
temperatures soared and we lost some plant material. Once the temperatures soared, the Board regrouped
and decided to increase the water and pay the penalties. The Board further determined that they would not
replace the lost plant material at this time, rather wait until the state and CVWD indicate the drought is
subsiding.
A homeowner inquired as to the schedule to complete the interior perimeter Oak Tree wall project. Mr.
Moore advised that Sunshine will be progressing on the project through completion, which should be in early
2016.
Mr. Moore reminded the homeowners that contained in their 2016 Budget Packet was a 4 page document
that details the current and short term projected landscape plan for the Association. This document is in the
form of Frequently Asked Questions and a narrative that should clarify what the Association’s plans are as of
this time.
Gary Dolenga questioned if a homeowner whose courtyard water is on his/her water meter, can the owner
adjust the flow of water? Bill Bobbitt replied, “No, although in certain unit types the courtyard water is on
the owners’ meter, the Association controls the clock. Presently the water in those courtyards is on and
should be sufficient to sustain plant life; however as previously mentioned, Monday and Thursday outdoor
watering has been temporarily discontinued.”
Mr. and Mrs. Cram, who are new homeowners in Res I, asked how large of a college flag are you allowed to
display at your residence? Kelly McGalliard replied that it is California law, not the HOA that has set the
parameters for banner and/or flag size in condominium associations. Civil Code §4710 provides that an
association may prohibit noncommercial signs and posters that are more than 9 square feet in size and
noncommercial flags or banners that are more than 15 square feet in size.
FINANCIAL
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Operating Fund Financial Statement as of 10/31/15 – Russ Long made a motion to accept the
10/31/2015 Operating Fund Financial Statement as presented. Seconded by Loretta Currie; passed
unanimously.
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Accounts Receivable Summary as of 11/30/2015 – Russ Long made a motion to accept the
Accounts Receivable Summary as presented. Seconded by Loretta Currie; passed unanimously.
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Collection Status Report Summary as of 11/30/2015 – Wayne LeBlang made a motion to accept
the Collection Status Report Summary as presented. Seconded by Loretta Currie; passed
unanimously.
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Authorization to Record Delinquent Assessment Liens – Wayne LeBlang made a motion to
authorize recording delinquent assessment liens for Parcels 775081012-5, 775152053-1 and
775152023-4. Seconded by Loretta Currie; passed unanimously.
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Reconstruction Fund Financial Statement as of 10/31/2015 – Russ Long made a motion to accept
the 10/31/2015 Reconstruction Fund Financial Statement as presented. Seconded by Loretta Currie;
passed unanimously.
OLD BUSINESS
Quarterly Investment Update – Brent Mason of Mason and Associates provided account summaries for the
Association’s investment accounts at Schwab. No action required; none taken.
Tree Removal Discussion – The owners of 55-668 Oak Tree and 55-650 Oak Tree were present to discuss
the possibility of removing a tree. The owner of 55-650 Oak Tree is in favor of removing a tree located in
close proximity to 55-650 Oak Tree; the owner of 55-668 Oak Tree is opposed to removing the tree. The
Board previously considered this issue and is revisiting the matter to allow both parties the opportunity to be
personally heard. Following discussion, the Board decided to make a site visit to the subject location on
Monday, December 14, 2015; therefore, no decision regarding the tree was made at the Board Meeting.
Landscape Renovation Interior Perimeter Oak Tree Wall – Richard Moore provided an update regarding
the landscape conversion project to drought tolerant landscaping on the 1.6 mile stretch on the interior of the
Oak Tree perimeter wall. He stated that the prototype perimeter wall installation at the south end of Oak
Tree is complete and that the landscape theme is scheduled to continue north on Oak Tree to the office site.
No action required; none taken.
Update Solar Pool Heating Systems – Mike Walker provided an update regarding the Mohr Solar Pool
Heating system installations. He advised the Board that the Association is in receipt of a letter from The
Riverside County Health Department, which advises that the Health Department will require plan-check and
physical inspection and a $436 fee for each pool that has a solar pool heating system installed. Management
met with Mike and Morri Mohr on November 17, 2015 to discuss Mohr Power’s performance to date with
respect to the 8 initial solar pool heating systems that the Board agreed to install. Management advised the
Board that there is concern regarding the time frame for installation, as it is considerably greater than we had
anticipated. This issue was discussed at the November 17, 2015 meeting with Mohr and the contractor
agreed to increase their productivity and attempt to decrease the time necessary to complete the solar system
installations. The additional Riverside County Health Department requirements will likely slow the
installation process further. In the interest of completing the 8 solar pool heating systems as expeditiously as
possible, Richard Moore made a motion to have the Association fund the $436 Riverside County Health
Department fee for each of the 8 solar pool heating system sites, with the express intent to review the
contract at a later date and determine if in fact Mohr Solar Power is obligated to pay the fee. The motion was
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seconded by Russ Long. Loretta Currie indicated that she felt that the Association paying the fee to the
Health Department instead of pursuing Mohr Power would reduce the Association’s leverage in compelling
performance by the contractor; therefore, she voted in opposition to the motion. Richard Moore, Russ Long,
Wayne LeBlang and Dave Sari voted in favor of the motion; therefore the motion carried.
Update Trash - Richard Moore stated that the Burrtec trash and recycle barrel distribution to the PGA
WEST Residential Association, Inc. residents is substantially completed and the implementation of Burrtec’s
fully automated trash collection service is scheduled to commence January 4, 2016.
NEW BUSINESS
Date and Time for 2016 Board of Directors’ Meetings – The Board of Directors set the Board Meeting
Schedule for 2016 as follows:
January 21, 2016
March 19, 2016
May 19, 2016
July 21, 2016
September 15, 2016
October 20, 2016
October 27, 2016
December 15, 2016
Regular Board Meeting at 2:00 PM
Annual Members’ Meeting at 9:00 AM
Regular Board Meeting at 2:00 PM
Regular Board Meeting at 2:00 PM
Regular Board Meeting at 2:00 PM
Budget Workshop at 2:00 PM
Regular Board Meeting at 2:00 PM
Regular Board Meeting at 2:00 PM
Request to Operate a Business – Ms. Yvonne Cruickshank, resident of 80-327 Oak Tree, submitted a
Request to Operate a Concierge Business from her residence. Ms. Cruickshank states that the business will
not result in increased traffic, activity or deliveries to the residence, rather her business requires only a
telephone and computer to operate from home. Wayne LeBlang made a motion to approve the request for
Ms. Cruickshank to operate a Concierge Business from 80-327 Oak Tree. Seconded by Russ Long; passed
unanimously.
Homeowner Request for Service – 55-502 Riviera – Bill Bobbitt explained to the Board of Directors that
the homeowner of 55-502 Riviera has requested that replacement plants be installed near the entrance of
their residence, as the area that formerly contained plant material is now bare dirt. Mr. Bobbitt already told
the homeowners that the Association is not installing new plant material at this time due to the drought,
rather the Association is waiting until we can be confident that water will be available to sustain the plant
material long term. As of this time, water restrictions and penalties are in place. Wayne LeBlang made a
motion to deny the request to install plant material at 55-502 Riviera at this time. Seconded by Loretta
Currie; passed unanimously.
Richard Moore stated that there have also been a number of complaints from owners that have areas under
trees where grass rarely grows, even in non-drought conditions, on the golf course or lake side of the
residences. Mr. Moore recommended that the Association install mulch in those areas. Loretta Currie made
a motion to expend up to $10,000 to install mulch in bare dirt areas under trees on the golf course or lake
side of residences. Seconded by Dave Sari; passed unanimously, with Wayne suggesting that course mulch
be considered so that it doesn’t blow away.
Proposal Purified Pool Water – Mike Walker informed the Board of a process proposed to purify pool
and/or spa water, clean pool and/or spa plaster and extend the life of the plaster. The proposal provided by
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Purified Pool Water allows for cleaning the water and the pool without water loss, which given the current
drought conditions may be of interest. Wayne LeBlang made a motion that following verification of a
reference from the Springs Country Club, to authorize Purified Pool Water to complete the process at one of
the Association’s pool as a test site. Seconded by Loretta Currie; passed unanimously.
Update Master Association Governing Documents – Richard Moore informed the Board that the Master
Association Board of Directors will be sending out a draft of the restated Master Association Governing
Documents to the membership. Mr. Moore stated that he had been involved in the Master Association
Governing Document Committee as Chair. He specified that the theory of representation by population with
respect to the Master Association’s Board of Directors members had been discussed numerous times and that
at one time the Governing Documents Committee agreed that appointment to the Master Board by the
Residential Associations’ Boards of Directors was an acceptable replacement to an open election. When the
draft, restated Governing Documents were presented to the Master Board, the Master Board rejected the
concept of the Residential Associations appointing Master Association Board Members by population, or at
all. The draft Master Association Governing Documents currently provide for an election process whereby
the members vote in six of the Master Association Board of Directors’ members and the seventh member is
to be appointed by The Club. Mr. Moore expressed that he objects to the current election process and that he
will not support that element of the restated Master Association documents. The other issue that Mr. Moore
objects to in the proposed documents is the reduction in dues for the Norman Gate members, who under the
existing governing documents pay double dues. The reason they pay double dues is because the annexation
documents for the Norman members require that to fund expenses for the infrastructure in that area of the
community. The proposed draft documents reduce the Norman members’ dues. Mr. Moore believes that
reducing the dues for the Norman members will unreasonably cause the other Master Association members
to experience an increase in Master Association dues to offset the reduced income.
Mr. LeBlang, also a member of the Master Association Governing Documents Committee, expressed his
position regarding the draft Restated Master Association Governing Documents. Mr. LeBlang stated that
although he is in favor of the Homeowners’ Associations appointing Master Board Members based upon
representation by population, he does not agree with the Res I Board as a whole opposing the Master
Association Governing Documents’ passage because of this issue. There has been much time and expense
put into development of the Master Association Governing Documents; furthermore, Mr. LeBlang stated that
the election process in years past has not been problematic. Regarding the Norman members’ Master
Association dues, Mr. LeBlang stated he believes that each Association should pay for the amenities that
benefit their Association. The policy that current Norman residents pay double dues should stay in effect, as
the amount they currently pay does not even cover their entire cost. As such he sees no reason to pass the
burden to the entire membership. Again, Mr. LeBlang does not suggest that the Res I Board, as a whole,
object to the Restated Master Association Governing Documents because of this issue. He believes that the
Board, in no way, should influence the Res I residents as to how they should vote. He is absolutely against
sending out any such suggestions.
Gary Dolenga, Res I homeowner and Master Association Board Member, was asked to comment on the
restated Master Association Governing Documents. Mr. Dolenga stated that he does not want to see the
restated Master Association Governing Documents be sent to the membership if they contain any
controversial issues that may cause the documents to not be adopted. Multiple mailings to the membership is
time consuming and costly; therefore, Mr. Dolenga would like to see draft documents distributed that
everyone in the community can support.
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Correspondence 54-790 Southern Hills – Homeowner complaint regarding landscaping and the lack of
flowers and rear yard over seeding - Kelly McGalliard stated that the homeowner was not satisfied when
advised of the reasons that the Board voted to not plant fall color at the Res I homes and to not over seed golf
course and lake side lawns; therefore, he asked that his letter be taken to the Board for their review. The
Board reviewed his letter and although they understand his concern, their action stands and no additional
over seeding or flower planting is scheduled to occur, pending the Governor’s reevaluation of the California
drought in February 2016 and the subsequent impact on the Coachella Valley becomes known.
General Manager’s Report – Mike Walker presented the highlights of the General Manager’s Report and
asked if the Board had any questions regarding the report; none were elicited.
Mr. Walker stated that since the writing of the report regarding the Association’s lakes, the intakes on Lake
SRP 1 are collapsing due to excessive debris. The intakes need to be replaced; the estimate to replace the
intakes at Lake SRP 1 is $9,150. Richard Moore made a motion to expend $9,150 to replace the intake
valves at Lake SRP 1. Seconded by Dave Sari; passed unanimously.
Richard Moore asked Mike Walker to provide a brief overview of the sink hole at 55-170 Riviera. Mike
Walker stated that during the original reconstruction following the Sunrise lawsuit, the unit received
extensive reinforcement to the slab and that the unit is functioning well. There is however, a hole that has
developed off the back patio. The Association engaged a civil engineer to provide an opinion regarding what
action should be taken regarding the dirt hole. Based upon the recommendations, Steve Herthel,
Reconstruction Manager, developed a plan to remediate the situation, which essentially seems to be erosion
from water and soil subsidence.
Dave Sari made a motion to adjourn at 5:10 PM. Seconded by Russ Long; passed unanimously.
A brief Executive Session was conducted immediately following the regularly scheduled Board of Directors’
Meeting to discuss member discipline and legal issues.
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