Summary of Community Meeting

 

Meeting Date: Sun, June 30

Meeting Time: 5:00- 6:50pm

Attendance:

·       111 residents

·       8 of 9 board members in attendance

The meeting followed a previously published agenda with up to 15 minutes of question-and-answer time between the presenter and the audience.

During the presentation, Kelly, Treasurer referenced a document with financial information. This document can be viewed HERE.

In addition, Kelly, the Treasurer has provided a document on Financial FAQ’s. Please use this LINK to view.

If time did not allow for all questions to be asked or not relevant to the topics, an index card was provided for the homeowner to write a question with contact information and a follow-up would be made. Below are questions that were received following the meeting with the answers that were provided:

1.       Sewer drain runs between homes. This resident has experienced water damage recently and is not clear on the sewer/homeowner responsibility.

Reply by Stefanie, HOA President: As for the sewer/homeowner responsibility I am getting several questions on that from the meeting.  Sewer lines are separate from storm drains.  Sewer lines are managed by JCW and possibly the city. Every homeowner has a sewer line that runs from your home and connects with the sewer line.  Most homes in this neighborhood the line out of the home was clay piping. Over time they break/collapse or get tree roots into them.  It is the homeowner’s responsibility for the line that runs from the home to the city sewer line.  You can get an insurance policy to cover when this line breaks either through your insurance or an independent plan.  Lots of times JCW sends out a policy option for the homeowner.  I highly recommend getting coverage as it can be very expensive to repair/replace.  This happened last fall to my daughter’s multiplex unit here in FCHA. 

Storm drains are separate from sewer lines.  Normally they are the responsibility of the city to maintain, and they collect money on our property taxes to cover costs of maintenance.  However, when this neighborhood was established as a PUD, the builder accepted (and thus the association) responsibility of the storm drains.  That way they didn’t have to follow building codes (at that time) and this is why the city refused to take ownership of the storm drains years later. Storm drains take the water from rain/snow away from the neighborhood underground.  You can see the inlets to these drains throughout the neighborhood. In the streets/parking areas and walkways.

 

2.       Sewer line question:  Since HOA owns the lines, who is responsible for a break between the house and the street or main line. Insurance is available regarding the public lines. Since I don’t own my front yard, I assume I am not responsible for a break there.

Reply by Stefanie, HOA President: As for the sewer/homeowner responsibility I am getting several questions on that from the meeting.

·       Sewer lines are separate from storm drains. 

·       Sewer main lines are managed by JCW and possibly the city.

·       Every homeowner has a sewer line that runs from your home and connects with the main sewer line (managed by JCW). 

·       In most homes in this neighborhood the line out of the home was clay piping back in the 70’s. Over time they break/collapse or get tree roots into them.  

·       It is the homeowner’s responsibility for the line that runs from the home to the main connection at the city sewer line. 

·       You can get an insurance policy to cover when this line breaks either through your insurance or an independent plan.  Lots of times JCW sends out a policy option for the homeowner.  I highly recommend getting coverage as it can be very expensive to repair/replace.  Due to the age of the community, I would anticipate an increase of homeowners with main sewer line issues in the future.

·       This happened last fall to my daughter’s multiplex unit here in FCHA.  We were informed that each unit in a multiplex has their own line that runs directly to the main lines, which is a good thing.  Sometimes builders run all the units together and then direct one line to the main sewer.   That can lead to back up into a neighbor’s basement when one portion breaks in another unit or the unit that has the line in front of their home to the main is ultimately responsible to fix it.

Storm drains are separate from sewer lines.  Normally they are the responsibility of the city to maintain, and they collect money from our property taxes to cover costs of maintenance.  However, when this neighborhood was established as a PUD, the builder accepted (and thus the association) responsibility of the storm drains.  That way they didn’t have to follow building codes (at that time) and this is why the city refused to take ownership of the storm drains years later. Storm drains take the water from rains/snow away from the neighborhood underground.  You can see the inlets to these drains throughout the neighborhood. In the streets/parking areas and walkways.

3.       Suggestion: stop painting houses and use that money for storm drains/sewer

·       No reply was provided as this was a suggestion.

 

4.       Anonymous; multiple questions/suggestions

Reply by Stefanie, HOA President:

a.       Why do Board Members not pay dues? This is not true; Board members pay dues like every other homeowner. Per the bylaws, Article 8-Board of Directors:

Compensation. No Director shall receive compensation for any service he/she may render to the Association.

b.       Do Board Members pay assessments? Yes, we are assessed like every other homeowner.

c.       Close 2 pools $$ -people from outside the complex use them now?  Only residents with up to 4 guests can use the pools.  Four Colonies cannot charge for outside residents to use our pools. Per the bylaws, amenities are for residents to use.  We are also a non-profit organization.

d.       Close 2 clubhouses $$ - And do what with them?  Tearing down and doing something else costs just as much or more money than general upkeep.

e.       Don’t fix the tennis courts $$ - The city has free courts all over - True, but the courts are or will become an eyesore, costs associated to return to common areas

f.        Are garages square footage included in the dues calculations - Yes, garages and carports are calculated into the HOA dues.

g.       What is the dollar amount per square footage – Dues are calculated using the homes square footage in addition to the lot size.

h.       Nobody uses pool 4 - This pool is used often; it just tends to be more in the afternoon/evening and weekends due to being adults only.

 

5.       Regarding the $165,000 in past due HOA dues- Question sent to Office :

Reply by Erin, FCHA General Manger:

·       How many are owner lived?/How many are owner rents?

We don’t have an easy way to track the $165,000.00 past due HOA dues to homeowners that reside here vs. renting. Unfortunately, they don’t always let us know that they are renting, or if they did rent and then decide to move into the unit.

·       What HOA services are withheld?

o   When a homeowner gets behind on dues, we turn off their pool card.

o   Past due homeowners per the bylaws are not able to vote

·       Are you allowed to make public a list of names and addresses on HOA dues owed?

The Board has discussed publicly listing the ones that are behind and decided that humiliation was not an effective or tactful way to collect the dues.

·       Are nonpayment of HOA dues continuing today?  Yes, there will always be residents who are late or don’t pay. The difference between now and before is that we are taking an active approach to collecting. See additional information below.

·       What would keep more homeowners getting away with nonpayment?  The policy below was put in place to deter homeowners from not paying:

o   The policy and procedure for collecting delinquent dues is:

§  After the 17th of each month, a late payment reminder phone call or email is made/sent to homeowner.

§  After the 15th of the following month, a letter is mailed/ hand delivered notifying the homeowner that their account is 30 days past due. If mailed, the addressed/stamped envelope is photocopied before mailing to show the letter is addressed properly and suitable postage was affixed thereto. If the balance is not paid within 10 days of the date of the letter, dues will be accelerated, a lien filed and in the discretion of the Board, the account will be sent to FCHA attorney for collections.

§  Approximately 10 days after the date of the letter if payment is not received, a lien is filed. A filing fee of $25 is charged to the homeowner.

§  A letter is sent to the homeowner when the office receives the recorded lien informing the homeowner, they have 10 days to pay before legal collection processing begins. This letter will also notify the homeowner that interest of 6% per annum will start accruing on the past due amount until paid in full. (Covenants Article IV, section 8)

§  If all the above fails to produce payment, the account is sent to the attorney for collection.

§  At any time, in the discretion of the Board, the Association may permit a delinquent homeowner to execute a promissory note and/or other payment agreement where the homeowner agrees to make payments over a period of time to bring the homeowner's account current on terms and conditions agreeable to the Board.

§  Any legal fees incurred as a result of forcing a homeowner to comply with the Covenants and/or By-Laws will be assessed to that homeowner.

·       I would suggest you turn over Roof and gutters to homeowners’ responsibility

This suggestion of turning over roofs and gutters responsibility to the homeowners will be shared with the Board. I know the Board has discussed this.

 

6.       A homeowner contacted a board member inquiring into the history of why Four Colonies owns the storm drains. The attached documents are notes from correspondence between Stefanie, President of FCHA and the city of Lenexa and the lawyer who is working with Four Colonies.

·       Doc 3- Storm Drain Info from Attorney- Summary Response 12-4-2023

·       Doc 4- Alex review summary of info

7.       Regarding Roofs:

·       Does the HOA have any responsibility to reimburse me for a portion of the replacement cost due to weather damage once insurance no longer covers full replacement cost?

·       If so, at what point in its lifespan does that apply and how would the reimbursement be calculated?

·       Has there been any discussion of shortening the replacement cycle to help reduce this risk we all face?

 

Reply by Stefanie, HOA President

Per the covenants we are responsible for routing care and replacement in which we interpret is at end of life.  The bylaws that were updated in 1992 state that weather related damage to a roof would fall under the homeowner's insurance. See below.

ARTICLE V - RESIDENTIAL MAINTENANCE

In addition to maintenance upon the Common Area, the Association shall provide exterior maintenance upon each Lot which is subject to assessment for exterior maintenance hereunder, as follows: paint, repair, replace and care for roofs, gutters, downspouts, exterior building surfaces, trees, shrubs, grass, walks, and other exterior improvements. Such exterior maintenance shall not include glass surfaces. In the event that the need for maintenance or repair is caused through the willful or negligent act of the Owner, his family or guest, or invitees, the cost of such maintenance or repairs shall be added to and become a part of the assessment to which such Lot is subject: the bylaws further state:

ARTICLE 6- MAINTENANCE

Section 1. Maintenance and Preservation Responsibilities of the Association. The Association shall be responsible for the maintenance and preservation of the Common Area and Common Facilities. In addition to maintenance upon the common areas, the Association shall provide exterior maintenance upon each Lot which is subject to assessment for exterior maintenance hereunder, as follows: paint, repair, replace and care for roofs, gutters and downspouts, exterior building surfaces (to be defined as paint only), trees, shrubs, grass (excluding grass within fences), walks, and other exterior improvements. Walks and driveways that benefit a specific residence(s), and trees and shrubs on individual Lots, shall be excluded unless funds are specifically assessed for their maintenance. (Amended: November 4, 1998)

a. Due to the unique nature of each Lot, Owners shall be expected to provide certain types of routine care themselves; (Adopted: September 18, 1989)

b. In the absence of misconduct or negligence on its own part, the Association will not be held responsible for the costs of any maintenance to any Lot suffering damage attributable to

(1) pests such as termites or carpenter ants;

(2) fire; or

(3) adverse weather conditions such as flood, tornado, high winds or hail, except that should an adverse weather condition result in such damage that the Board of Directors recognize it to have been a catastrophe, then the Association may, at its discretion, reimburse each homeowner all or a part of the deductible portion of his/her homeowners' insurance claim amount. The amount, if any, of the deductible reimbursed shall be determined by the Board of Directors on an occurrence basis. (Amended: June 1, 1992)

c. In no case will the Association be held responsible for damage due to misconduct or negligence on the part of any Owner, occupant, guest, or invitee. (Adopted: September 18, 1989)

Based on the evaluations and discussions with the roofing company:

·       What would be an expected life span of the rated roofs IF we didn’t establish the 8yr plan

o   F -1-2 years

o   D’s- range 2-6 years however could expect failures within 3-4 years

o   C- range 5-10 years however could expect failures within 7 years

So realistically it will benefit FHCA, if we maintain ownership for the roofs, to do our best to complete the roofing project in the 8-year plan as projected out.  We will have flexibility to reevaluate and move around homes if roofs start failing before they are projected to be replaced.   I feel strongly that this should be how we do it and several others on the board agree.  There are some, however, who question the need to do this project in this timeframe.  Obviously, a lot of this concern is due to funding.  I see that there are several perks to getting it done sooner rather than later.  We can make sure that we don’t stretch out the project too long and get hit in the middle of the project with failing roofs.  If we stretch it out to 12-15 years, then we don’t have much time to focus on other projects/needs of the community before we have to start over with roofs.

We could always do this project in a shorter timeframe, however that is based on our dues/income and other costs of maintenance of the association.  We cannot get loans and must pay cash.  Initially we were talking about a 25% increase but with costs and budget being run over the 8 years we took it down to 20%.  As you know we cannot predict the future and have no way of knowing future global economic issues, but if things stay status quo, we anticipate funding the storm drains and roofs with 20%.

As mentioned before in meetings, with the bylaws stating that the Board can determine to reimburse a homeowner a dollar amount to go towards their deductible if a homeowner must replace a roof due to weather, we can address this in the future.

 

Four Colonies Homes Association

June Community Meeting

Sunday, June 30

Clubhouse 3

5:00-7:00PM

Topics:

I. How Did We Get Here- Stefanie Weishaar, President

II. Projected upcoming financial needs- Bob Burgdorfer, Vice-President

III. Ongoing projects currently maintained & needed for near future- Bob Burgdorfer, Vice-President

IV. Review of other HOA communities and Four Colonies comparison- David Williams, Board Member

V. Current Financial Picture for Four Colonies- Kelli Knisely, Treasurer

VI. Funding/income revenue- Do we increase funds or remove responsibilities- Kelli Knisely, Treasurer

I. How did we get here

  • 2000-2009 Roof replacement cost 4.6 mil

§ Roof loan -$1.5 million, paid off in January 2014 (obtained August 2007) Interest Paid 600K

  • Limited maintenance done while paying off roof loan

  • 2015 -2020 Ash tree removal and replacement plan - cost $287k.

  • 2018 lighting project $1.28 million

  • 2017-2022 increased maintenance to common ground:

§ Sidewalk replacement

§ Retaining walls

§ $55k budgeted yearly

  • COVID 2020-2022

  • 2022-2024 street resurfacing $1.22 million

  • 2023 storm damage x2 cleanup $123k (not budgeted)

  • 2024 storm damage cleanup $20k (not budgeted)

  • 2021 to now inflation/ cost of living increases 6-15%

  • 2022 - 2023 All services to the community increased from 4.5% up to 15%

  • Maximum dues increase allowed by board vote is 3% without special meeting and resident vote.

II. Projected upcoming financial needs:

  • Roofs estimated $5.5 to 6 million to complete next 8-10 years

  • Storm drains estimated $1.2 million next 2-3 years

  • Tennis courts: current estimate to resurface CH3 courts $50,000

  • Fencing around pools: Starting to rust through, these are original- 20+ years old

  • Pool Pumps CH3 replaced for 4600$ this year; 3 more pool pumps are aging

  • Pool leaks – pool 2

  • Maintenance truck replacement and on-going maintenance

III. Ongoing projects currently maintained & needed for near future:

  • Sidewalks

  • Retaining walls

  • Pergolas

  • Street coatings

  • Trees/ landscape replacements

  • Berms/landscape drainage

  • Gutter maintenance/replacement

  • Roof maintenance/repairs

  • Clubhouse updating/bathrooms/gym floor/decks

  • Recycle bin enclosures

  • Pools – leaks/bathrooms/resurfacing

  • Entry signs and landscaping

IV. Review of other HOA communities and Four Colonies comparison

  • Four Colonies Highest HOA Fee Monthly: 276.00

  • Four Colonies Lowest HOA Fee Monthly: 193.00

  • Average Monthly HOA Fees in surrounding communities with less amenities:

Roundtree Olathe: 430.00 Neimann Road Condos: 394.00

W 110th Terr: 448.00 Metcalf West: 453.00

Park Condos: 366.00 Fairway Condos: 931.00

10223 Robinson: 741.00 11626 Tomahawk Creek: 378.00

  • History: No dues were increased in: 1999, 2004, 2005, 2007, 2011, 2012 & 2017

  • Bank Loans for Large Projects: Why we cannot obtain them.

V. Current Financial Picture for Four Colonies

Total Cash $2,383,605.52

Estimated HOA fees remaining 2024 $869,973.04

Remaining Estimated Expenses 2024 -$1,261,669.88

Funds pulled for Reserve for 2024 -$1,794,748.89

Total operating funds at end of 2024 $197,159.79 Move to Roof Reserve

Some of the cutbacks and changes that were made on the 2024 budget

  • Yard Waste Eliminated $10,000.00 Annually

  • Recycle bi-monthly $12,000.00 Annually

  • Clubhouse Entrance Landscaping $1,500.00

  • Ground Improvements $2,000.00

  • Social Functions eliminated $2,500.00

  • Clubhouse updates $500.00

  • Common Facility Building Impr. $20,000.00

  • Concrete Repair $16,500.00

Fluid Amount Saved in these cutbacks $65,000.00

This list is not showing all cutbacks: Every line item was reviewed and adjusted

VI. Funding/income revenue- Do we increase funds or remove responsibilities

  • Institute a one-year special assessment to raise dues (HOA Bump)

· 2/3rd community approval- quorum requirements vary by vote

  • Implement a one-time special assessments for specific large project.

· Difficult for residents to budget for large dollar assessments; could cost thousands per owner.

  • Change covenants/bylaw

    • Remove roofs from HOA responsibility

  • · Change dues long term

  • · Complete revamp covenants/bylaws to reflect current standards/verbiage

  • · Any changes to covenants/bylaws require 2/3rds approval with notarizing signatures

Examples:

A. One Year Special assessment: A HOA “bump” using a one-time 20% increase of dues and then our allowable 3% going forward.

Example of a HOA fee increases over the next 8 years:

Year Increase Amount Increased per month New Monthly HOA Total Paid Yearly

2024 274.21 3,290.52

2025 20% 54.84 329.05 3,948.60

2026 3% 10.16 338.92 4,067.04

2027 3% 10.47 349.09 4,189.08

2028 3% 10.79 359.56 4,314.72

2029 3% 11.11 370.35 4,444.20

2030 3% 11.44 381.46 4,577.52

2031 3% 11.78 392.91 4,714.92

2032 3% 12.14 404.69 4,856.28

B. Example of a one-time special assessment for a large project: Storm Drains

Estimated Cost: 1,200,000.00

Number of Homeowners: 681

One-time Payment: $1,762.11