MINUTES OF THE MEETING OF THE CHITWOOD FARMS ASSOCIATION, INC. 

December 6, 2017 

A meeting of the Chitwood Farms Association, Inc, (formed under the laws of the State of Oklahoma as a non-profit corporation) was held on Wednesday, December 6, 2017 pursuant to the DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR CHITWOOD FARMS made May 2, 2005.

Board members in attendance:

Jim Sanders, president

Paul Rottler, secretary

Erik Winters, member at large

Board members in absentia:

Paul Gosden, vice president

Association members present are noted in the sign-in sheet for the meeting, attached to these minutes.

CALL TO ORDER

The meeting was called to order by Mr. Sanders. The meeting was moderated by Mr. Rottler.

INTRODUCTION OF THE BOARD

Mr. Sanders introduced members of the board to Association members who were present for the meeting.

FINANCIAL UPDATE

1

Mr. Sanders reviewed the current financial statements, shown below.

ESTABLISHMENT OF QUORUM

Upon review of the sign-in sheet for Association Members attending the meeting, Mr. Rottler determined that a Quorum existed for the purposes of the meeting.

ASSESSMENT

The board presented the Association with information regarding a proposed assessment. The presentation is attached to these minutes. After review, upon a motion duly made and seconded,

2

the Association voted to adopt the proposed assessment of $622.40 per property. The board further agreed to establish a payment plan for the assessed fees consisting of multiple payments.

GATE OPERATONS

Upon a motion duly made and seconded, the Association voted to change gate operating hours to the following:

● In general, keep the gate closed at all times. ● Open Monday through Friday from 6:00 a.m. to 8:00 a.m. and from 3:00 p.m. to 6:00

p.m. ● On Sundays, keep the gate open during typical Open House hours. ● Upon request, open the gate for specific special events of the Association or members of

the Association.

ADJOURNMENT

There being no other business before the Association, the meeting was adjourned.

________________________________ Paul Rottler, Secretary of the Meeting

3

CHITWOOD FARMSASSOCIATION MEETING

AGENDA

• Call to order (Jim Sanders)

• Introduction of the Board (Jim Sanders)

• Financials (Jim Sanders and Paul Rottler)

• Establishment of Quorum (Paul Rottler)

• A one-time Association assessment for each voter (Jim Sanders)

• Overview, impact. (Jim Sanders)

• Chitwood Farms main gate operations. (Paul Gosden)

QUORUM

ESTABLISHMENT OF QUORUM

• We have 104 voting properties. There are currently 80 occupied lots, 21 vacant lots, and three lots under construction in Chitwood Farms.

• 62 eligible votes constitutes a quorum at this meeting.• Special one-time assessments require a simple majority of the quorum. (Raising regular

annual dues by more than 10% requires a ⅔ majority of the quorum. The board is NOT asking for a dues increase at this meeting.)

• Main gate operational issues do not require approval of the membership, but the board decided to consider the majority vote of the December 2017 meeting (with or without a quorum) before changing gate operations

FINANCIAL

Chitwood Farms Association, Inc.Projected 2017 Results

12/6/17; 11:51 AM

1

Actuals Projected Projected Budget VarianceJan-Oct Nov-Dec YE YE YE Notes

IncomeHOA Dues 83,050 0 83,050 87,750 (4,700) 4 lots unpaid (2 owners)Interest - Bank 104 0 104 0 104Interest - Homeowners 86 0 86 0 86Other Income 1,410 0 1,410 0 1,410Total 84,650 0 84,650 87,750 (3,100)

ExpensesAdministration

Management Fees 4,220 375 4,595 4,500 (95)Postage & Copies 137 0 137 300 163Professional Fees 125 210 335 0 (335) Registered agent & meeting expensesBank Charges 0 0 0 0 0Total 4,482 585 5,067 4,800 (267)

GatesPhones 809 94 903 900 (3)Monitoring Contract 720 240 960 960 0Repairs 4,575 500 5,075 1,800 (3,275) Major gate failure in AugustTotals 6,103 834 6,937 3,660 (3,277)

GroundsMowing - 2015 Payment Plan 7,054 641 7,695 5,131 (2,564) Mis-budgeted 2015 payment planMowing - Maint/Chem Contract 23,117 4,623 27,741 27,740 (1)Landscaping 1,404 0 1,404 750 (654)Minor Repairs 690 0 690 1,200 510Pond Maintenance 4,712 589 5,301 4,250 (1,051) Delinquent TurnPro bill retirementMajor Repairs 3,030 0 3,030 8,000 4,970Totals 40,008 5,854 45,862 47,071 1,209

OtherInsurance 2,983 720 3,703 3,600 (103)Property Taxes 838 0 838 850 12Totals 3,821 720 4,541 4,450 (91)

Pool/ClubhouseMaintenance 8,460 0 8,460 10,250 1,790Septic 0 130 130 535 405 $500 of repairs needed in 2018Phone 583 150 733 900 167Totals 9,043 280 9,323 11,685 2,362

UtilitiesTotals 11,421 2,000 13,421 16,800 3,379

Total Expenses 74,878 10,273 85,151 88,466 3,315

Net Income 9,772 (10,273) (501) (716) 215

Beginning Cash Balance 1,346 11,117 1,346 1,346 0Ending Cash Balance 11,117 845 845 630 215

ASSESSMENT

ASSESSMENT

• ROADS: Chitwood Farms is a gated community. The City of Edmond does not maintain the streets inside of gated communities

• LAKE: Chitwood Farms Lake is fed by two wells with pumps that keep the lake filled

• POOL: The Chitwood Farms community pool’s cover is past its usable life

• UNPAID BILL: Chitwood Farms Association inherited unpaid bills when Turner & Co. turned management of the HOA over

ASSESSMENT: ROADS

• The line of demarcation between city maintenance and HOA maintenance is the curb line outside our gate. HOA

City

ASSESSMENT: ROADS

• Preventative maintenance will extend the life of our streets. This assessment is for

• Crack fill of pavement cracks less than 2” wide

• Crack repair for pavement cracks greater than 2” wide

• Patching swaths of broken pavement

• Applying a protective topcoat to the existing streets after patching is complete

• $43,140.00

City

Crackfill is possible

Crackfill is NOT possible — repair is needed

PAVING SUMMARY (COVER A FEW SCENARIOS SIDE BY SIDE

Company Bid Date Crack Fill Unit CostEsrtimatedLineal Ft. Patches Unit Cost Sq. Feet Seal Coat Unit Cost Sq. Feet Total

N-Line Striping and Seal Coating 10/17/2017 $5,220.00 $0.90 5,800 $3,000.00 Min n/a $34,920.00 $0.12 291,000 $43,140.00

Merritt Paving & Sealing 10/12/2017 $5,500.00 $1.10 5,000 $2,090.00 $6.67 261 $44,662.50 $0.17 267,975 $52,252.50

Armor Asphalt 4/3/2017 $14,263.05 $0.05 n/a $14,000.00 $3.50 4,000 $39,936.54 $0.14 n/a $68,199.59

Gorman Paving 4/26/2017 $16,000.00 n/a n/a n/a n/a n/a $58,388.00 $0.22 265,000 $74,388.00

ASSESSMENT: LAKE

• Like the community pool and barn, the Chitwood Farms Lake is a community recreation area.

• Lake levels are maintained by two wells and pumps.

• Well Depth 280 Feet

• Drilled 1/12/2009

ASSESSMENT: LAKE

• Why Repairs Are Needed

• One pump is inoperable, which means the Lake is currently being filled with one pump –on the east side

• This is putting added stress on that pump

• If lake levels drop too low:

• Damage to the earthen dam, which could result in extremely costly repairs.

• Stagnation, possible fish kill, increased bacteria, sewer odor, insect infestation.

• DEQ will not fine since the lake is private

• But EPA can if they determine there have been “purposeful adverse actions taken”

ASSESSMENT: LAKE

• Current Repair Estimates

• Repair/Replace Submersible Motor

• 7.5 HP 50 GPM Submersible Pump

• 2” Check Valve

1st Bid - $5,208.88

2nd Bid - $4,600.00

ASSESSMENT: POOL

• The pool cover is past its usable life.

• The pool cover is needed to protect the pool in the off season.

• The pool cover is needed to protect the HOA from liability resulting from having a weakened cover on the pool.

• Affordable pool: $5,985.00 plus $2,500.00 installation; $9,001.51

• Competing estimate had no install cost but was nearly the same for the cover.

ASSESSMENT: UNPAID VENDOR INVOICE

• When HOA governance was transferred from Turner & Co. to the homeowners in Chitwood Farms, several vendor invoices were unpaid. The HOA has paid back all of these invoices except Turnpro for services at the Lake. The board does not need approval of the membership to pay the invoice, but it does need funds from the assessment to pay it.

• We currently owe: $2,012.00 from an invoice dated October 6, 2016. Work dates back to Turner & Company management of the HOA.

ASSESSMENT: SUMMARY

Activity Estimated Cost

Road Repair $8,220.00 to $43,140.00

PoolCover

• New Cover $5,985.00 to $5,985.00

• Installation $2,500.00 to $2,500.00

Lake Repairs $4,600.00 to $5,208.00

Old Invoice $2,012.00 to $2,012.00

Contingency (10%) $2,331.70 to $5,884.50

Project Total $25,648.70 to $64,729.50

Assessment per Property $246.62 $622.40

GATE OPERATIONS

GATE OPERATIONS

• We have two gates. Gate #1 is on ChitwoodFarms Road at Post Road. Gate #2 is on NE 150th at Chitwood Farms Estates entrance.

• The Board is presenting two options for gate operations:

• Continue as-is

• Closed 24/7

1

2

GATE OPERATIONS: CLOSED 24/7

• In general, keep the gate closed at all times.

• During peak drive times, open the gate.

• Open Monday through Friday from 6:00 a.m. to 8:00 a.m. and from 3:00 p.m. to 6:00 p.m. This will accommodate school buses, trash pick up, etc.

• Newspaper deliveries, FedEx, UPS, USPS already have a code and can get in after hours

• Gates can be left open for specific functions (such as The Parade of Homes). A request through the HOA Board to Superior Fence takes care of exceptions.

GATE OPERATIONS: CLOSED 24/7

• Prior to transition of gate operating hours, all developers will be given a gate code to get in and a set of codes for their subcontractors. Those codes can have a lifespan and set to expire on certain dates and or times. By doing this we can monitor who comes and goes outside our set “open hours” and we can track people in case of an incident. (This is by no means just limited to contractors and subs. Anyone coming into our development after hours we can see entry.)

GATE OPERATIONS: CLOSED 24/7

Maintenance Impact

• Maintenance is always a concern. Keeping the gate closed will mean more cycles opening and closing the gate. Superior Fence doesn’t have a hard number on how many cycles until the gate breaks, it could be tomorrow or 10,000 cycles from now.

GATE OPERATIONS: CLOSED 24/7

Safety

• A natural calming influence on neighborhood traffic.

• Reduces speed on the main road (ChitwoodFarms Road).

• Reduces the potential for accidents on the blind turn from Crestwood Drive onto ChitwoodFarms Road.

GATE OPERATIONS: CLOSED 24/7

Security

• “Keeps the honest people honest”

• First Responders all have access still, 24/7

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