YLOAI Board of Directors Meeting Minutes  Meeting Type: Date/Time: Location:  Board of Directors Meeting Tuesday, August 27,2024, at 6p.m. Clubhouse and Zoom Virtual Meeting  1. CALLTO ORDER & ROLL CALL  President Rajecki called the meeting to order at 6:12p p.m. Roll call was conducted. All directors were present. DIRECTOR ROLLCALL & ESABLSAMENTOFQUORUM  Richard Rajecki, President Rose Mackey, Vice President Steve Brannon, Secretary Ken Sartain, Treasurer Cheryl Bluhm, Director Beate Olivas, Director Pam McDaniel, Director  Additional Attendees: Executive Director. Jeremy Mayes and CAM Beth Hatch, Tom Bell & Heather 2. OPEN FORUM: Seven members, including one board member, addressed the board. 3. GUEST: SPEAKERS: Tom Bell and Heather from Moore Grider (CPA) regarding Financial Reviews 2022 & 2023. They discussed thet financial review process for 2022 and 2023, explaining the challenges posed byi intercompany transactions and the need fori timely information from YLOA and YSPUC. Heather outlined thet timeline for preparing the financial statements, noting that the utility company statements are nearly complete and the HOA statements will follow (it was noted that the utility company books must be done first). The board discusses thei importance of having a competent internal person to handle accounting tasks to avoid jeopardizing the review-level financial statements. Executive Director Mayes confirms that thet financials for the fiscal year ending. June 30, 2024, are complete and will be combined with the previous year's statements. Tom Bell noted that the previous general manager would not allow anyi information to get transmitted to their office other than through him. He asked the board to consider the natural business cycle An update was provided regarding the Corporate Transparency. Act (CTA) passed in. January 2021, with a reporting deadline of January1, 2025. Under the CTA, entities registered with the Secretary of State must report their beneficial ownership information (BOI) to FinCEN,  from Moore Grider (CPA)  and align the entity's fiscal years.  1    agovernment entity originallyestablished to track financial transactions relatedt to  terrorism.  The reporting requirement applies to entities unless they meet all three exemption criteria: gross receipts over $5 million, more than 20 employees, and al U.S.-based office. The HOA Reporting involves listing all officers and directors, including Social Security numbers and driver's license information. Failure to report or not reporting gchanges within 90 days incurs The HOA's management company, GrandManors, will handle the BOI filing for $325. The board's attorney confirmed that filingi is necessary. However, the outcome is uncertain because the Community Associations Institute (CAI) and another organization (IRAM)have filed lawsuits against the BOI filing requirements. Nevertheless, as required, the filingwill 4. APPROVAL OF MINUTES: The board reviewed and approved the minutes from the following meetings: June 4, 2024, July 20, 2024, and. July 25, 2024, and ratification of the minutes from May7 7, 2024 (due to a correction needed in a lien processing error). There was alsoa discussion about adding the. July 13, 2024, Annual Meeting to the next agenda for approval.  does not meet these exemptions and must comply.  a penalty of $591 per day.  be completed by. January1,2 2025.  Corrections to the minutes were made, including:  Amisidentification of board roles (Ken Sartain listed as Secretary and Steve Brannonas  Treasurer).  Missing votes by Director Olivas were added in several instances. Acorrection to the APN ini the lien resolutions was confirmed.  Amotion was made to approve the minutes by President Rajecki, with the identified modifications, and seconded by Director Olivas, approved unanimously. MSC7-0  5. REPORTS  5.1N Manager Report: The manager provided an update on recent activities and repairs Repairs on Lilley Mountain Road and John Muir Drive were completed, including about 40 potholes, costing $36,000--slightly. over budget due to extra work ona road section. The Recreation Center grill was fixed for propane and wood burning, and' Well 28A's pump was repaired, nowi filling the lake and pond for golf course watering. Anew bus stop and other minor projects were also finished.  across the community, including:  2    Financially, the. July 2024 budget was favorable. The Fairway Café exceeded its revenue target by $12,000, and assessment collections reached $385,000, surpassing the budgeted $376,000. Planned reserve contributions are $32,500to Higher expenses were noted in golf, road maintenance, and the restaurant due to summer overtime, but overall, the HOA exceeded its monthly budget by $65,000. The manager highlighted the importance of reinvesting surplus funds into the community and discussed ongoing budget management and future adjustments. Director Bluhm's financial questions will be addressed after consulting the HOA accountant. Bad debt will be managed on the balance sheet and written off at year- end after auditor review. Executive Director Mayes concluded with ani invitation for 5.2Treasurer Report: Treasurer Sartain raised several questions regarding the. June and July financial reports, noting significant discrepancies between the two. While not wanting to take up too much meeting time, the Treasurer wanted to review the details in a separate session. Ar meeting with the accountant, Kyla, was suggested  the PRP account and $30,000t to the reserve account.  further board questions.  to address these concerns thoroughly. Regardingcolections, the Treasurer reported: 103 accounts with Fiore for collections. 48 active payment plans. 58 accounts on payment plans with Fiore. The total outstanding amount is $1,223,313.27.  Treasurer Sartain expressed concern over the large outstanding balance but acknowledged that steady progress had been made in reducing it, noting that it was There was also a discussion about recent fund distributions, with the Treasurer confirming that a large check was received recently, possibly around $70,000, and that overall collections from Fiori have totaled approximately $130,000. There wasa question regarding the breakdown of hard costs charged by Fiore for collections, and the Treasurer confirmed that the report includes a detailed breakdown of these  significantly higher in previous years.  costs.  5.2.1 Liens: Treasurer Sartain motions the assessments charged against the properties identified below are more than 60 days delinquent. The board of directors hereby authorizes Fiore, Racobs & Powers to record al lien on behalf of the Association against 10 properties:  3    ParceN0.092370.020, 092-150.005,082250.0,0830900, 093-140-027, 092-300-005, 083.570.025,082-030.004,08539000, Seconded by Director Olivas. ALL ini favor, aye, MSC7-0 Int the executive session meeting which took place on August 27, 2024, the board of directors authorized its attorneys toi initiate an action for thej judicial foreclosure of the Association's lien against the Int the executive session meeting which took place on August 16, 2024, thel board of directors authorized its attorneys to initiate an action fort thej judicial foreclosure of the Association's lien against the followingproperties: 092-180-001, 093-450-015, 092-070-006, 092- 370-030,093-420-015,092-350-004, 093-020-018, 093-020-020 Int the executive session meeting which took place on July 20, 2024, thel board of directors authorized its attorneys to initiate an action for thej judicial foreclosure oft the Association's lien against the following properties: 093-140-018, 092-280-025, 093-060-013  093-520-011  followingp properties: 093-060-020  5.3Department Head & Committee Reports: Reports provided to the directors. John Wandler reported that the golf committee's first annual Yosemite Lakes Community golftournament, held on. June 1, raised over $10,000. Thei funds were split equally between Yosemite Little League and' Yosemite High School's golf teams. The committee, led by Neil Ordway, thanked donors and noted that past tournaments raised nearly $25,000 for Fire Station 10. Future tournaments may supportother youth sports. The American Legion will hold a golf tournament on November 9to The Trails and Recreation Committee had a productive year, completing trail maintenance, adding new benches, and improving recreational facilities. They engaged the community with 10 group hikes and student volunteer projects. Upcoming goals include trail maintenance, signage updates, parking  benefit the ROTC, Honor Flight, and the Boys and Girls Club.  improvements, and further facilityrenovations.  6. UNFINISHED BUSINESS 6.1None 7. NEW/BUSINESS  7.1YSPUC Report  4    7.1.1 President Rajecki: Pipeline Replacement Update: President Rajecki updated the board ont the YLOA pipeline replacement project, acknowledging thel board's efforts and Director Bluhm's extensive work. He praised Director Olivas for recruiting new accountant Felecia and emphasized the need for a clearf frameworki for capital projects, including proper funding, tools, trained staff, and project management. Despite challenges since the project's 2015 start, including staff shortages and lack of ai full-time manager, the community has installed eight miles of new pipe. With $47 million needed to replace the remaining 47 miles, he suggested exploring special assessments, grant money, and outsourcing work toi improve efficiency. Rajecki urged the board to accelerate the replacement rate to1l mile pery year and seek creative funding solutions. Executive Director Mayes presentedi the draft strategic plan for the Pipeline Replacement Project (PRP), whichi includes a communication plan, performance metrics, funding strategies, and timelines. He noted that reaching a consensus might be challenging but stressed the need for a structured plan. He requested the board's feedback: and encouraged them to review, sugestimprovements,  and address any concerns.  7.1.2 YSPUC President &' YLOA! Secretary Steve Brannon: Update on Crystal Cave & ETA: Secretary Brannon mentions that a contractor is lined up for the project, butwork was delayed due to the failure of well number 31, which was expected to go out of service soon. The well, located near Ranger Circle mailboxes, required at full replacement oft the pump, motor, piping, and wiring. Repairs started today. Additionally, well 451 near the N. Dome tank recently went out but has been repaired, and well 48 will be tested and brought online soon. Once the water supply is stable, construction on Crystal Cave will begin in about 2-3v weeks, including additional pipeline work. The projectis estimated to cost $175,000, and the goal is to complete the job, repave the street, and resolve long-standing issues. 7.1.3 YSPUCE Business Update Report: Discussion.  7.2Vice President Mackey: Board/Members Communications: Vice President Mackey emphasized the board's commitment tol hearing from the community and valuing their input. Theyintroduced: a newa and improved feedback form, developed by President Rajecki, William, and others, which allows homeowners to submit comments or questions. The form includes fields for name, email, message, and who the question is directed to (board or staff members). Respondents can choose whether they want ar response via email or phone and indicate preferred contact  5    times. While responses may take a couple of days, the board values collaboration  and mutual respect in working together as a community.  7.3Treasurer Sartain: Funding Sources  7.4Staff and Board Responsibiuty Policy: The board is reviewing the Leadership Responsibility Policy included int their packet. This policy aims to clarify the roles of the board and management. The board is responsible for setting strategy and providing oversight while the management and staff execute the vision. This is the first draft; board members are encouraged to review and provide feedback. Executive Director Mayes requests that comments be submitted within 15-20 days toincorporate the feedback into at final draft for approval at the September meeting. 7.5Clubhouse Treatment Plant: The clubhouse septic system has not had an active maintenance agreement for approximately 12 years. The board was presented with a$4,500/month bid from a contractor referred by the water company to manage the system and ensure compliance with state regulations requiring monthlyr reporting. The board discussed the high cost and lack of alternative bids due to the specialized nature of the work. The system's design and its compliance with the California Regional Water Quality Board were highlighted as key concerns. The board ultimately decided to table the issue and look for more cost-effective options before moving forward while considering the importance of beingi in compliance to 7.6Road DepartmentTrucks: The board discussed the purchase of two newi trucks for the road department, with $95k allocated in the budget. The total price for a 2500 and 1500 Silverado came to $102k before trade-ins. Executive Director Mayes expects the trade-ins on the old trucks will help bring the cost closer to the budget. Motion: Vice President Mackey motions to approve the two trucks for $56,932.64 and $50,199.78, totaling $102,000 after anticipated trade-in  avoid potential penalties.  adjustments. Seconded by Director Olivas. MSC7-0. 7.7Appoint/APprove Committee Chairman/Board Liaisons  Governing Docs Liaison(s): Vice President Mackey & Director Bluhm  DASH: No director volunteers Election Committee: Director Bluhm  Fire Safety Task Force: Director McDaniel & Director Bluhm Engineering & Planning Committee: Secretary Brannon  6    Trails & Rec Committee: Vice President Mackey Restaurant Committee: Treasurer Sartain Golf Committee: No director volunteers  Communications Committee: Vice President Mackey Equestrian Committee: Director Olivas  Motion: Director Bluhm motions to accept the board liaisons as CAMI Hatch read (listed above). Seconded by Director Olivas. MSC7-0. 7.8ShortTerm Rentals: Director Bluhm led a discussion on short-term rental regulations for the Yosemite Lakes Owners Association (YLOA). The existing 2018 policy defines short-term rentals as stays under 30 days, requiring al Madera County business license and an annual processing fee (proposed increase from $100to $500), with limits on vehicles (proposed increase from 2to 4) and occupancy rules. Violations could incur $100/day fines. Board concerns included noise, trash, traffic impacts, and ensuring compliance with! both county and HOA rules, such as having at least one adult guest. There were: suggestions for better enforcement, includinga security deposit for renters, though this raised concerns about fairness and complexity. The board discussed improving fee collection, managing issues, and workingwith Madera Countyt to enforce regulations, aiming to strengthen the policy 7.9Assistant Treasurer Motion: Treasurer Sartain introduced the motion to appoint Dennis Britt as the' vIOAAssistentTeasurer. The YLOA Treasurer sought assistance, citing the board's ability to appoint an assistant under governing documents and legal advice that such an appointment does not conflict with the governing documents, Davis-Stirling Act, or corporate law. Al board member questioned the need for an assistant, given the management company's role in financial duties, and requested al background check and resume from Dennis, similar to what was required for a prior assistant. The board debated whether Dennis could be appointed as an officer, with some arguing that non-directors cannot be officers per legal advice and Davis-Stirling: guidelines. After a lengthy discussion, it was clarified that Dennis could be appointed as Assistant Treasurer but not as an officer, and the board requestedi further clarification from legal counsel. The motion was tabled until a meeting with the association's legal counsel could bel held to address these concerns and receive confirmation from the insurance broker that Dennis would be covered undert the  without makingi ito overly restrictive.  board's insurance as Assistant Treasurer.  7    Motion: Director Bluhm motions to tablet the Assistant Treasurer motion. Seconded by Director Olivas. MSC 4-3 (with' Treasurer Sartain, Secretary 7.10 Director Olivas motions for Officer's Online Banking Accounts, which President Rajeckiseconds. Discussion. Director Olivas motions to table, which Director 7.11 Motioni forl Minute Recordings -this agendai item was moved to the September  Brannon, &Vice President Mackey voting no).  Bluhm seconds. MSC7-0.  meeting.  8. Executive Sessions: July 25, 2024 & August 3, 16, 20, 2024, Legal & employment updates, insurance package and. John Muir/Lilley Mountain repairs. President Rajecki motioned to accept the dates as presented, and Secretary Brannon seconded. MSC7-0. 1. On. June: 26, 2024, in accordance with the YLOAI Procurement Policy, Board President Cheryl Bluhm and Executive Director. Jeremy Mayes approved $6,137to 2. On August 1, 2024, per the YLOAI Procurement Policy, Board President Richard Rajecki and Executive Director. Jeremy Mayes approved $8,128 to repair the brakes 3. On August 15, 2024, the YLOAA Auto Policy was bound. With Mercury Insurance and through YLOA's broker, this policy was $55,333 and represented a decrease of 22k over last year's premium. The 2019 Dodge Ram (x0909) has been transferred to YSPUC andi is no longer on' YLOAI insurance. The 2018 Dodge Ram (x1548) will be transferred to YSPUC on Monday, August 26, 2024, and removed from the YLOA 4. On August 16, 2024, per the YLOAI Procurement Policy, Board President Richard Rajecki and Executive Director. Jeremy Mayes approved $9,900 (in the form ofa change order) to repair a section of John Muir Drive. The actual expense was $6,600. Motion: President Rajecki motions to accept the consent agenda. Seconded by  9. Consent. Agenda:  repair and replace the YLOA pool vacuums. on' YLOA's 20023 GMC dump truck.  insurance.  Vice President Mackey with the change to the VIN. MSC7-0.  10.Adjourment at 10:29 p.m.  Ocr./8,2024 Date  MaBn YLOA Secretary Signature  8