Lake Windcrest Property Owners Association Board …...Lake Windcrest Property Owners Association Board of Directors Meeting AGENDA La Quinta Inn Conference Room. 6930 FM 1488, Magnolia,

Lake Windcrest Property Owners Association Board of Directors Meeting

AGENDA La Quinta Inn Conference Room. 6930 FM 1488, Magnolia, Texas

July 29, 2014 6:30 pm I. Establish a Quorum II. Call to Order III. Executive Session

A. Homeowner Hearing B. Deed Restriction Violations Report C. Collections – Delinquent Accounts Report D. Nominee for August Volunteer of the Month

Adjourn Executive Session

7:30 pm IV. Report Actions Taken during Executive Session

V. Review and Approve Minutes of June 24, 2014 Meeting

VI. Ratify Electronic Action A. Authorization to Negotiate Settlement – Lipar Litigation

Announcement of Volunteer of the Month

7:35 pm VII. Homeowner Comments Homeowners may comment on agenda items, items of concern, and provide their input on a particular issue. The Board will listen and make note; no action will be taken during this meeting. Homeowners are encouraged to submit items for a meeting agenda in advance of the meeting. Please plan to stay and listen while the Board considers the remaining business items and refrain from comment unless recognized by the Chair.

7:50 pm VIII. Reports A. Security – Deputy Report B. Community Services Committee (1407G-001) C. Drainage, Lakes & Dams Committee (1407G-002) D. Grounds and Amenities Committee (1407G-003) E. Financial Report (1407G-004)

8:00 pm IX. New Business A. Apply for Texas Sales Tax Exemption (1407G-005) B. Approval for ACC to Acquire Architectural Software (1407G-006) C. Consider Developing Policy to Allow for Single-Source Vendors (1407G-007) D. Consider LWPOA Collection Policy (1407G-008) E. Approval and Signature Rights (1407G-009)

9:00 pm X. Next Board Meeting – August 26, 2014 Adjournment

LAKE WINDCREST PROPERTY OWNERS ASSOCIATION, INC. MEETING MINUTES - JUNE 24, 2014

A meeting of the Board of Directors of Lake Windcrest Property Owners’ Association (the “Association”) was called to order by Trish Peterson, Vice President at 6:47 p.m. A quorum was established by the attendance of the following Directors: Cynthia Bean, Secretary; Michele Goldman, Treasurer; Don Ray, Director; and Clark Smith, Director. Jane Schuring, President; and David Foxworth, Director were unable to attend. Janet Hampton with Principal Management Group Houston (“PMGH”) was also in attendance. Trish Peterson stated various issues were discussed during the executive session such as: architectural control, deed restriction and delinquent collection issues at the attorney. A homeowner hearing was scheduled but not held due to confusion on the meeting time; the hearing will be rescheduled. Meeting Minutes: Upon a motion duly made by Cindy Bean and seconded by Don Ray, the following resolution was unanimously adopted: RESOLVED THAT, the Board approved the minutes from the Board meeting held on May 27, 2014. Ratify Electronic Action: There were no electronic actions to ratify. Announcement of Volunteer of the Month: Trish Peterson announced that the June Volunteer of the Month was Ira Smith. Homeowner Forum: The Board answered questions as presented by the members present. Reports: A. Security – Sgt. Kevin Ray presented the monthly report:

57 area patrols 24 park patrols 7 suspicious persons 47 traffic stops 6 suspicious vehicles 1 miscellaneous 65 building checks

B. Community Services Committee - report presented in the Board File.

C. Drainage, Lakes, & Dams Committee - report presented in the Board File.

D. Community Manager’s – Janet Hampton stated the transition is running smoothly. PMGH received over 100 boxes of records, assisted many property owners for watercraft registration and working through various issues.

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New Business:

A. May Bank Reconciliation Statements - Upon a motion duly made by Michele Goldman and seconded by Clark Smith, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved notification to PMG one more time to see if the May 2014 Bank Statements and Reconciliations have been received; if PMG cannot locate the Bank Statements by June 26, 2014, 4:00 p.m., Board to notify CMC to reconcile all 6 accounts through May 31, 2014 for May records.

B. Remove CMC from All 5 Investment Accounts and Reduce Funds in Lockbox to Approximately $20,000 - Upon a motion duly made by Michele Goldman and seconded by Clark Smith, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved immediate removal of CMC from all 5 Lake Windcrest Investment accounts and requested updated signature cards within 5 business days. Move $390,000 from Lockbox to PMG. Requested PMG to provide to the Board how these $390,000 in funds are FDIC protected within the same 5 business days.

C. Consider Proposal for General Liability and Directors and Officers Insurance - Upon a motion duly made by Trish Peterson and seconded by Cindy Bean, the following resolution was unanimously adopted.

RESOLVED THAT, the Board approved the proposal from Wortham Insurance for General Liability Commercial and Property Coverage, and Directors & Officers Insurance, and rejected the terrorism policy.

D. Review 2013 Review Audit Report - Upon a motion duly made by Michele Goldman and seconded by Clark Smith, the following resolution was unanimously adopted.

RESOLVED THAT, the Board accepted the 2013 review audit report.

E. Determine Disposition of ACC Records - Upon a motion duly made by Trish Peterson and seconded by Don Ray, the following resolution was unanimously adopted.

RESOLVED THAT, the Board authorized the shredding of the Architectural Control plans older than five years according to the retention policy.

F. Property Owner Records Disposition – Permanent Retention - Upon a motion duly made by Cindy Bean and seconded by Michele Goldman, the following resolution was unanimously adopted.

RESOLVED THAT, the Board authorized the Secretary to explore electronic options for permanent storage of property owner records and present proposals no later than the August 2014 Board meeting.

Next Board Meeting – The next Board Meeting is scheduled for July 29, 2014 Adjournment – The meeting was adjourned at 8:50 p.m. ______________________________ ____________________ Janet Hampton, CMCA®, AMS™ Date As Recording Secretary

AGENDA ITEM 1407G-001

Board of Directors

Standing Committee Report

Committee: Community Services Committee

Date: July 21, 2014

Submitted by: Jolie Kat Cosman, Chairperson

Completed Projects:

July 4th Celebration

Sponsors: Vinny Sinisi Real Estate and Walt Crowder, Lawn Ranger

It was a fun afternoon of wet slippery slides and the ever popular dunking booth, many kids

from the neighborhood enjoyed the planned activities and adults too joined in dancing to the

cool music of The Last Soul Clan Band.

Projects in Process:

Neighbors Night Out – October 7

Jolie registered Lake Windcrest with NATW (National Association of Town Watch) Associa (PMGH’s parent company) is a national sponsor, will provide stuffed animals for

giveaways. Texas associations are registering at a high pace so Associa has asked Texas to wait so other states that hold events in August can be handled first. Janet requested planning kit but waiting on ordering giveaways.

Committee will divide up LW into blocks and sign-up captains. Display the map and captains at NNO. Captains can organize their own block parties.

Write up for web site and newsletter Jolie to contact Don Ray and David Birch to coordinate with Security Awareness Committee

Fall Garage Sale – October 17-18

Need to start advertising in newsletter, web site. Lost Pets

Jolie proposed bulletin boards at entrances or common areas so neighbors can post lost pet signs, lost and found, etc. There are details to work out before a proposal can be presented to the Board.

Pet trackers are available, Annette to write article for newsletter

Next Meeting: Tuesday August 12th 7pm

AGENDA ITEM 1407G - 002

Board of Directors


Committee: Drainage, Lakes and Dams

Date: July 29, 2014

Submitted by: Bill Bradley

_______________________________________________________________________

Homeowner Assistance

We provided several Section 5 home owners with additional elevation data on their

drainage problems.

Drainage, Lakes and Dams

The DLDC has used its new laser level to shoot elevations on several drainage ditches and a number of low spots at the big park. We are assisting the Grounds and Amenities Committee with their park upgrade. They are working on reducing the puddles at the big park especially around the new playground equipment.

We released the bid package on repairs to our dams and ditch maintenance and held a job walk with 5 contractors. Bids were requested back by mid-month. We were disappointed in the bid results and will discuss re-bidding this work with the board at the July Board meeting.

TXDOT has removed two of their holdup structures along the south side of 1488 to reduce potential flooding of LW properties around the middle entrance. However, we still have not received their plans and schedule for completing the fix to their drainage problem. Most frustrating.

Bleyl Engineers have completed their elevation survey of the middle entrance creek which is the first step in improving the drainage across these lots.


Board of Directors


Committee: Grounds and Amenities Committee

Date: July 15, 2014

Submitted by: Susan Thompson, Chairperson

Ongoing Activities:

We continue to monitor our landscape contractor for quality and adherence to their contract.

Rain has increased the weed growth in ditches, reserves and nature trails and interfered with

Summit’s mowing schedules. In Sections One through Four, there continues to be some

confusion on where Summit stops mowing. Our Contract requires Summit to mow to the

telephone pole every other week during the growing season. Every other month, Summit

mows one time an additional ten feet beyond the telephone poles. The additional area to be

mowed occurs in July, September, November, January, March and May. Summit also

provided a $350.00 bid to mow the grassy areas along FM1488.

Projects in Process:

The Central Entrance is nearly complete. Live Oak Trees need pruning to allow adequate

light for plant and grass growth. After trees are pruned, additional plants will be added to the

beds and dead plants will be replaced. The Committee will continue to address the wall’s

grout problems.

The playground equipment has been installed. There are a few minor problems left to

resolve, but they should not interfere with the use of the equipment. Next we will turn our

attention to resolving the other problems identified earlier this year at the park. Benches will

need to be moved, raised and hopefully resurfaced. Picnic tables need to be resurfaced or

replaced. The sprinkler system needs rerouting and adjusting to better service the park.

Trash cans need to be replaced with a closed lid commercial product suited for parks. The

bridge and the point need repair. The area needs grading to eliminate the ponding problems

noted this spring.

Fences owned by the Association are in need of repair, power washing and/or replacing. In

the spring, Chaparral had obtained three bids to power wash vinyl fences at the two parks

and boat launch area. The power washing bids ranged from $2,600 to $5,500. The bids did


not include cleaning of vinyl fences located on the trails. Due to changes in vinyl fencing, the

company primarily responsible for maintenance was unable to continue performing the

service. Chaparral obtained a bid from Atlas to repair vinyl fencing at the parks and boat

launch area and 56’ of wood fencing on FM 1488. The proposed bid was for $5,289.10.

There are many sections of vinyl fencing that are missing rails or caps and are not included in

the aforementioned bid. The metal gates at the boat launch and trails need repair and

painting. Throughout the year, fences within Lake Windcrest will require maintenance and

cleaning. It would be helpful and reasonable to contract with a company to provide ongoing

maintenance. A schedule could be set up for power washing vinyl fences, park benches and

tables, and entrance monuments. The company would be responsible for repairing all fence

and gate types. The committee, working with the Community Manager, will begin to identify

potential vendors.

BalanceJun 30, 2014

BalanceMay 31, 2014 Change

Assets

Operating Funds

1000 Pacific Premier Bank CK - 4469 $22,331.47 $0.00 $22,331.47

1092 Operating Account - 5493 $0.00 $110,075.45 ($110,075.45)

1093 Wells Fargo - 7378 $0.00 $54,676.70 ($54,676.70)

1094 Trustmark MM - 3938 $0.00 $21,813.69 ($21,813.69)

1095 Cabanc ICS MM - 972 $0.00 $635,678.96 ($635,678.96)

1096 First Citizens Bank - 7326 $99,936.11 $195,989.09 ($96,052.98)

1097 CAB Lockbox - 4232 $9,236.90 $419,275.57 ($410,038.67)

Total Operating Funds $131,504.48 $1,437,509.46 ($1,306,004.98)

Reserve Funds

1346 Wells Fargo Reserve - 7378 $54,676.70 $0.00 $54,676.70

1348 Cabanc ICS MM Reserve - 972 $635,783.44 $0.00 $635,783.44

1349 First Citizens Bank Reserve - 7326 $96,107.92 $0.00 $96,107.92

Total Reserve Funds $786,568.06 $0.00 $786,568.06

Accounts Receivable

1500 Residential Assessments Receivable $35,330.43 $39,891.78 ($4,561.35)

Total Accounts Receivable $35,330.43 $39,891.78 ($4,561.35)

Other Current Assets

1799 Clearing Account $541,929.30 $25,000.00 $516,929.30

Total Other Current Assets $541,929.30 $25,000.00 $516,929.30

Total Assets $1,495,332.27 $1,502,401.24 ($7,068.97)

Page 1 of 2

July 21, 2014 05:59 PM

Balance Sheet ReportLake Windcrest POA Trish Peterson

As of June 30, 2014

BalanceJun 30, 2014

BalanceMay 31, 2014 Change

Liabilities

Liabilities

2000 Accounts Payable $880.00 $0.00 ($880.00)

2038 CMC - ACC Fee $1,960.00 $1,960.00 $0.00

2039 CMC - Inspection $5,400.00 $5,400.00 $0.00

2041 Payment Plan Payable-Prior Mgmt ($30.00) ($30.00) $0.00

2050 Resident Refunds $48,700.00 $48,700.00 $0.00

2550 Prepaid Assessments $2,394.07 $1,250.56 ($1,143.51)

2595 Deferred Revenue $285,120.00 $0.00 ($285,120.00)

Total Liabilities $344,424.07 $57,280.56 ($287,143.51)

Total Liabilities $344,424.07 $57,280.56 ($287,143.51)

Owners' Equity

Owners Equity - Prior Years

3000 Operating Fund - Prior year $240,269.78 $1,064,678.88 $824,409.10

Total Owners Equity - Prior Years $240,269.78 $1,064,678.88 $824,409.10

Capital Reserves - Current Year

3280 Rpr & Replacement Reserve $918,458.69 $0.00 ($918,458.69)

Total Capital Reserves - Current Year $918,458.69 $0.00 ($918,458.69)

Total Owners' Equity $1,158,728.47 $1,064,678.88 ($94,049.59)

Net Income / (Loss) ($7,820.27) $380,441.80 $374,124.13

Total Liabilities and Equity $1,495,332.27 $1,502,401.24 ($7,068.97)

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July 21, 2014 05:59 PM

Balance Sheet ReportLake Windcrest POA Trish Peterson

As of June 30, 2014

Current Period Year To Date (06 months) Annual Budget

Activity Budget Variance Activity Budget Variance Budget Remaining

Income

Income

4000 - Residential Assessments ($285,120.00) $47,520.00 ($332,640.00) $285,120.00 $285,120.00 $0.00 $570,240.00 $285,120.00

4016 - Force Mow Income $0.00 $83.00 ($83.00) $0.00 $500.00 ($500.00) $1,000.00 $1,000.00

4070 - Reimbursement $0.00 $2,500.00 ($2,500.00) $0.00 $15,000.00 ($15,000.00) $30,000.00 $30,000.00

4200 - User Fees $80.00 $83.00 ($3.00) $320.00 $500.00 ($180.00) $1,000.00 $680.00

4205 - Application Fees $70.00 $0.00 $70.00 $140.00 $0.00 $140.00 $0.00 ($140.00)

4275 - Social/Recreation/Activity Fees

$0.00 $542.00 ($542.00) $0.00 $3,250.00 ($3,250.00) $6,500.00 $6,500.00

4700 - Collection Processing Fees $0.00 $167.00 ($167.00) $1,385.12 $1,000.00 $385.12 $2,000.00 $614.88

4705 - NSF Service Fees $0.00 $8.00 ($8.00) $0.00 $50.00 ($50.00) $100.00 $100.00

4710 - Late Fees & Interest $25.00 $417.00 ($392.00) $3,211.75 $2,500.00 $711.75 $5,000.00 $1,788.25

4720 - Legal Reimbursements $0.00 $667.00 ($667.00) $2,113.57 $4,000.00 ($1,886.43) $8,000.00 $5,886.43

4805 - Compliance Fees $0.00 $167.00 ($167.00) $595.90 $1,000.00 ($404.10) $2,000.00 $1,404.10

4835 - Miscellaneous Income $0.00 $42.00 ($42.00) $0.00 $250.00 ($250.00) $500.00 $500.00

4910 - Interest Earned - Reserve Accounts

$160.91 $83.00 $77.91 $905.67 $500.00 $405.67 $1,000.00 $94.33

Total Income ($284,784.09) $52,279.00 ($337,063.09) $293,792.01 $313,670.00 ($19,877.99) $627,340.00 $333,547.99

Total Income ($ 284,784.09) $ 52,279.00 ($ 337,063.09) $ 293,792.01 $ 313,670.00 ($ 19,877.99) $ 627,340.00 $ 333,547.99

Expense

Administrative

5000 - General Administrative $0.00 $187.00 ($187.00) $2,742.01 $1,125.00 $1,617.01 $2,250.00 ($492.01)

5005 - Application/Processing $0.00 $667.00 ($667.00) $3,525.00 $4,000.00 ($475.00) $8,000.00 $4,475.00

5025 - Billing/Collections $0.00 $1,292.00 ($1,292.00) $5,011.22 $7,750.00 ($2,738.78) $15,500.00 $10,488.78

5035 - Decorations $0.00 $208.00 ($208.00) $0.00 $1,250.00 ($1,250.00) $2,500.00 $2,500.00

5045 - Dues & Subscriptions $0.00 $0.00 $0.00 $294.00 $0.00 $294.00 $0.00 ($294.00)

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Income Statement ReportLake Windcrest POA

June 01, 2014 thru June 30, 2014July 21, 2014 06:07 PM

Trish Peterson



5075 - Meeting Expense $0.00 $167.00 ($167.00) $2,722.62 $1,000.00 $1,722.62 $2,000.00 ($722.62)

5100 - Records Storage $0.00 $105.00 ($105.00) $0.00 $630.00 ($630.00) $1,260.00 $1,260.00

5115 - Web Site Maintenance $0.00 $83.00 ($83.00) $0.00 $500.00 ($500.00) $1,000.00 $1,000.00

5200 - Community Events $0.00 $0.00 $0.00 $354.68 $0.00 $354.68 $0.00 ($354.68)

5205 - Activity Charges $0.00 $0.00 $0.00 $94.44 $0.00 $94.44 $0.00 ($94.44)

5210 - Printing & Copying $0.00 $0.00 $0.00 $605.12 $0.00 $605.12 $0.00 ($605.12)

5220 - Courier Service $0.00 $0.00 $0.00 $786.40 $0.00 $786.40 $0.00 ($786.40)

5225 - Newsletter Services $0.00 $292.00 ($292.00) $1,402.15 $1,750.00 ($347.85) $3,500.00 $2,097.85

Total Administrative $0.00 $3,001.00 ($3,001.00) $17,537.64 $18,005.00 ($467.36) $36,010.00 $18,472.36

Insurance

5400 - Insurance Premiums $0.00 $1,750.00 ($1,750.00) $104.91 $10,500.00 ($10,395.09) $21,000.00 $20,895.09

Total Insurance $0.00 $1,750.00 ($1,750.00) $104.91 $10,500.00 ($10,395.09) $21,000.00 $20,895.09

Utilities

6000 - Electric Service $3,752.53 $1,875.00 $1,877.53 $11,807.34 $11,250.00 $557.34 $22,500.00 $10,692.66

6025 - Water Service $414.86 $1,000.00 ($585.14) $7,279.84 $6,000.00 $1,279.84 $12,000.00 $4,720.16

Total Utilities $4,167.39 $2,875.00 $1,292.39 $19,087.18 $17,250.00 $1,837.18 $34,500.00 $15,412.82

Landscaping

6100 - Grounds & Landscaping - Contract

$0.00 $0.00 $0.00 $53,400.47 $0.00 $53,400.47 $0.00 ($53,400.47)

6199 - Landscape Other $0.00 $333.00 ($333.00) $19.10 $2,000.00 ($1,980.90) $4,000.00 $3,980.90

6200 - Irrigation Repair & Maintenance

$0.00 $0.00 $0.00 $1,264.42 $0.00 $1,264.42 $0.00 ($1,264.42)

Total Landscaping $0.00 $333.00 ($333.00) $54,683.99 $2,000.00 $52,683.99 $4,000.00 ($50,683.99)

Operations

6300 - Permits & Licenses $0.00 $250.00 ($250.00) $0.00 $1,500.00 ($1,500.00) $3,000.00 $3,000.00

Total Operations $0.00 $250.00 ($250.00) $0.00 $1,500.00 ($1,500.00) $3,000.00 $3,000.00

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Trish Peterson



Contracted Services

6418 - Fountains/Ponds/Lakes Services

$0.00 $950.00 ($950.00) $4,750.00 $5,700.00 ($950.00) $11,400.00 $6,650.00

6422 - Gate Services $0.00 $167.00 ($167.00) $0.00 $1,000.00 ($1,000.00) $2,000.00 $2,000.00

6434 - Pest Control $0.00 $292.00 ($292.00) $0.00 $1,750.00 ($1,750.00) $3,500.00 $3,500.00

6440 - Safety & Security $2,150.00 $4,253.00 ($2,103.00) $18,160.00 $25,513.00 ($7,353.00) $51,025.00 $32,865.00

6444 - Water Treatment Services $0.00 $750.00 ($750.00) $2,189.36 $4,500.00 ($2,310.64) $9,000.00 $6,810.64

Total Contracted Services $2,150.00 $6,412.00 ($4,262.00) $25,099.36 $38,463.00 ($13,363.64) $76,925.00 $51,825.64

Repair & Maintenance

6505 - Boat Dock Repair & Maintenance

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.01 $0.01

6530 - Common Areas Repair & Maintenance

$0.00 $333.00 ($333.00) $0.00 $2,000.00 ($2,000.00) $4,000.00 $4,000.00

6545 - Electrical Supplies/Repair & Maintenance

$0.00 $83.00 ($83.00) $0.00 $500.00 ($500.00) $1,000.00 $1,000.00

6560 - Fence Repair & Maintenance

$0.00 $458.00 ($458.00) $923.81 $2,750.00 ($1,826.19) $5,500.00 $4,576.19

6585 - Fountain/Pond/Lake Repair & Maintenance

$0.00 $0.00 $0.00 $2,595.84 $0.00 $2,595.84 $0.00 ($2,595.84)

6600 - General Repair & Maintenance

$0.00 $0.00 $0.00 $292.19 $0.00 $292.19 $0.00 ($292.19)

6640 - Lighting Supplies/Repair & Maintenance

$0.00 $1,875.00 ($1,875.00) $896.85 $11,250.00 ($10,353.15) $22,500.00 $21,603.15

6645 - Locks & Keys Repair & Maintenance

$0.00 $42.00 ($42.00) $0.00 $250.00 ($250.00) $500.00 $500.00

6685 - Playground Maintenance/Repairs

$0.00 $250.00 ($250.00) $417.69 $1,500.00 ($1,082.31) $3,000.00 $2,582.31

6745 - Signage Repair & Maintenance

$0.00 $42.00 ($42.00) $0.00 $250.00 ($250.00) $500.00 $500.00

6770 - Vandalism Repair & Maintenance

$0.00 $42.00 ($42.00) $0.00 $250.00 ($250.00) $500.00 $500.00

6795 - Other Supplies/Repair & Maintenance

$0.00 $0.00 $0.00 $4,482.00 $0.00 $4,482.00 $0.00 ($4,482.00)

Total Repair & Maintenance $0.00 $3,125.00 ($3,125.00) $9,608.38 $18,750.00 ($9,141.62) $37,500.01 $27,891.63

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Trish Peterson



Professional Services

7000 - Audit & Tax Services $0.00 $625.00 ($625.00) $3,993.33 $3,750.00 $243.33 $7,500.00 $3,506.67

7005 - Consulting Services $0.00 $83.00 ($83.00) $0.00 $500.00 ($500.00) $1,000.00 $1,000.00

7025 - Legal Services - Collections

$0.00 $500.00 ($500.00) $2,163.57 $3,000.00 ($836.43) $6,000.00 $3,836.43

7030 - Legal Services - General Counsel

$0.00 $1,667.00 ($1,667.00) $5,898.41 $10,000.00 ($4,101.59) $20,000.00 $14,101.59

7035 - Legal Services - Deed Restrictions

$0.00 $125.00 ($125.00) $213.00 $750.00 ($537.00) $1,500.00 $1,287.00

7040 - Management Fees $3,111.00 $3,250.00 ($139.00) $16,046.60 $19,500.00 ($3,453.40) $39,000.00 $22,953.40

7095 - Other Professional Services

$0.00 $83.00 ($83.00) $0.00 $500.00 ($500.00) $1,000.00 $1,000.00

Total Professional Services $3,111.00 $6,333.00 ($3,222.00) $28,314.91 $38,000.00 ($9,685.09) $76,000.00 $47,685.09

Taxes

9015 - Property/Real Estate Tax $0.00 $21.00 ($21.00) $0.00 $125.00 ($125.00) $250.00 $250.00

Total Taxes $0.00 $21.00 ($21.00) $0.00 $125.00 ($125.00) $250.00 $250.00

Other Expenses

9105 - Reserve Contribution Expense

$160.91 $0.00 $160.91 $160.91 $0.00 $160.91 $0.00 ($160.91)

Total Other Expenses $160.91 $0.00 $160.91 $160.91 $0.00 $160.91 $0.00 ($160.91)

Reserve Expenses

9800 - Repair & Replacement Expenses

$147,015.00 $0.00 $147,015.00 $147,015.00 $147,015.00 $0.00 $147,015.00 $0.00

9826 - Common Area Expenses ($1,716.23) $0.00 ($1,716.23) $0.00 $0.00 $0.00 $0.00 $0.00

9846 - Drains & Sewers Expenses ($1,675.00) $0.00 ($1,675.00) $0.00 $0.00 $0.00 $0.00 $0.00

9890 - Legal Expenses ($6,690.48) $0.00 ($6,690.48) $0.00 $0.00 $0.00 $0.00 $0.00

9934 - Recreation Center Expenses

($22,959.03) $0.00 ($22,959.03) $0.00 $0.00 $0.00 $0.00 $0.00

9960 - Trails & Paths Expenses ($2,311.63) $0.00 ($2,311.63) $0.00 $0.00 $0.00 $0.00 $0.00

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Trish Peterson



9964 - General Expenses ($17,773.95) $0.00 ($17,773.95) $0.00 $0.00 $0.00 $0.00 $0.00

Total Reserve Expenses$93,888.68 $0.00 $93,888.68 $147,015.00 $147,015.00 $0.00 $147,015.00 $0.00

Total Expense $ 103,477.98 $ 24,100.00 $ 79,377.98 $ 301,612.28 $ 291,608.00 $ 10,004.28 $ 436,200.01 $ 134,587.73

NET INCOME/(LOSS) ($ 388,262.07) $ 28,179.00 ($ 416,441.07) ($ 7,820.27) $ 22,062.00 ($ 29,882.27) $ 191,139.99 $ 198,960.26

Page 5 of 5



Trish Peterson

Agenda Item 1407G-005

Title: Texas Sales Tax Exemption

Date: July 29, 2014

Purpose: To reestablish Lake Windcrest POA’s status with Texas Comptroller of

Public Accounts as a state tax exempt organization.

Background: The POA’s Texas Sales Tax Exemption was revoked during our struggle to

get our 501 (c) 4 reinstated with the IRS. The 501 (c) 4 was reinstated by the

IRS on June 30th, 2014

Proposal: To hire Cynthia A Cox CPA L.L.C, on an hourly basis, to reapply with the

Texas Comptroller’s office an application for sales tax exemption for Lake

Windcrest POA.

Cost: An estimate of 2 hours was received. CPA will be billing per hour at a

rate of $120 per hour. Requesting board approval for up to $360. This

cost is not in the budget. Treasurer reports there are funds available for

this expense.

Motion to Board:

Move that the Board hire Cynthia A. Cox CPA L.L.C. on an hourly basis to file with the Texas

Comptroller Office an application to reinstate our sales tax exemption.

Submitted: Michele Goldman

Moved by: ____________________ Second by: _______________________

Action: _______________________ Date: ____________________________


Title: Architectural Design Software for ACC

Date: July 29, 2014

Purpose: To provide the ACC with the ability to better evaluate applications

Background: ACC would like the ability to better visualize the design of projects being

submitted for approval, particularly those involving outbuildings. The

committee has been using a trial version of Home Designer 3D Home

Design software and found it helpful.

Proposal: Purchase Home Designer 3D Home Design Software

Cost: $515

Motion to Board:

Move that the ACC be authorized to purchase the Home Designer 3D Home Design Software

at a cost of $515.

Submitted: Trish Peterson


Action: _______________________ Date: ____________________________

LWPOA BOD FORM 100-2013 REV 0 06062013


Title: Single-Source Vendor Policy

Date: July 29, 2014

Purpose: Competitive bid process to select a qualified vendor contracted to meet

general maintenance responsibilities under specific defined

circumstances

Background: The Dams Lakes and Drainage Committee (DLDC) and the Grounds and

Amenities Committee (GAC) have primary responsibility for many

general maintenance projects on dams, drainage ditches, fences, trails,

etc. It seems more efficient and cost effective to use a different approach

to competitive bidding on each maintenance project in favor of a

competitive process to choose a Single-Source Vendor utilizing an

approved rate sheet under an agreement of not more than 2 years.

Proposal: Develop a policy and procedure to accomplish a single-source method of

vendor selection and the specific circumstances in which the policy may

be utilized as well as the specific terms and conditions required for the

agreement between the vendor and the association.

Motion to Board:

RESOLVED THAT, the Procurement Committee be directed to explore development of a

single-source vendor policy and procedure for general maintenance responsibilities with a

recommendation to the Board at its August 26 meeting.

Submitted: Jane Schuring


Action: _______________________ Date: ____________________________


Title: LWPOA Collections Policy

Date: July 29, 2014

Purpose: To consider adoption of PMG Collection Policy as the official Association

policy.

Background: The Association should have in place an official Collection Policy. As we have

transitioned to the new management company, we learned that the only

adopted collections document from the Board is a Guideline regarding

processing of delinquent accounts.

PMG has a standard Collection Policy used by all of its affiliated property owner

associations. The Board needs to review this suggested policy to ensure that

we understand and agree to all aspects of the policy. It is preferred that the

Association adopt the policy as drafted.

This is an opportunity to review how collections have been handled and to

understand the measures taken to collect delinquent accounts, including legal

action.

Motion to Board:

Move that the Board:

1) Request each Board Director review and comment on the PMG Collection Policy, and that

the Finance Committee do the same, with those comments provided to the Board

President no later than August 15.

2) Request comment from our collections attorney at Treece Law Firm.

3) Pending comments, may place the collection policy on the August meeting Agenda.

Submitted: Trish Peterson


Action: _______________________ Date: ____________________________

2014 Assessment Collection Policy Guidelines

The following packet includes changes to the collection policy for your specific association. Associa

and PMG Houston are working toward standardizing collections in order to create a more professional and

proficient collections department. This will ensure the homeowners and board members are provided the

best possible customer service experience we can provide for your association.

Included in the packet, you will find practices and procedures PMG Houston will use in order to

collect delinquent assessments as well as the charges for each step. The packet also includes and defines

delinquencies and late charges, payment information, and general provisions provided for your association.

The following steps will be performed using the approximate time frames below:

209 Letter: February

Title Search letter: March

Credit Bureau Letter: April

Lien Letter: May

After all steps have been completed, if the homeowner remains delinquent, the account may be

turned over to the association’s attorney for collection. Once an account is at attorney status, the

homeowner must work with the attorney’s office in order to bring their account current. Standardizing the

collection process and defining the stipulations and procedures will benefit the association by collecting

outstanding balances in a more timely manner therefore creating more revenue for your association.

________________________________

ASSESSMENT COLLECTION POLICY

_________ is a community (the ʺCommunityʺ) created by and subject that certain

_________________________ recorded under County Clerk File No. or Document No. _______,

Official Public Records of ____________ County, Texas, as amended (the “Covenantʺ). The

operation of the Community is vested in _ _______________________, (the “Association”),

acting through its board of directors (the “Board”). The Association is empowered to enforce the

covenants, conditions and restrictions of the Covenant, the Bylaws and rules of the Association

(collectively, the ʺRestrictionsʺ), including the obligation of Owners to pay Assessments pursuant to the

terms and provisions of the Covenant.

The Board hereby adopts this Assessment Collection Policy to establish equitable policies and

procedures for the collection of Assessments levied pursuant to the Restrictions. Terms used in this

policy, but not defined, shall have the meaning subscribed to such term in the Restrictions.

Section 1. DELINQUENCIES, LATE CHARGES & INTEREST

1‐A. Due Date. An Owner will timely and fully pay Regular Assessments and Special Assessments.

Regular Assessments are assessed annually and are due and payable on the first calendar day of

the month at the beginning of the fiscal year, or in such other manner as the Board may designate

in its sole and absolute discretion. 1‐B. Delinquent. Any Assessment that is not fully paid when due is delinquent. When the account of

an Owner becomes delinquent, it remains delinquent until paid in full — including collection

costs, interest and late fees. 1‐C. Late Fees & Interest. If the Association does not receive full payment of a Regular Assessment by

5:00 p.m. of the due date established by the Board, the Association may levy a late fee per

month and/or interest at the highest rate allowed by applicable usury laws then in effect on the

amount of the Assessment from the due date therefore (or if there is no such highest rate, then at

the rate of 1 and 1/2% per month) until paid in full. 1‐D. Liability for Collection Costs. The defaulting Owner is liable to the Association for the cost of

title reports, credit reports, certified mail, long distance calls, court costs, filing fees, and other

reasonable costs and attorney’s fees incurred by the Association in collecting the delinquency. 1‐E. Insufficient Funds. The Association may levy a charge of $25 for any check returned to the

Association marked ʺnot sufficient fundsʺ or the equivalent.

1‐F. Waiver. Properly levied collection costs, late fees, and interest may only be waived by a majority

of the Board.

Section 2. INSTALLMENTS & ACCELERATION

If an Assessment, other than a Regular Assessment, is payable in installments, and if an Owner

defaults in the payment of any installment, the Association may declare the entire Assessment in default

and accelerate the due date on all remaining installments of the Assessment. An Assessment, other than a

Regular Assessment, payable in installments may be accelerated only after the Association gives the

Owner at least fifteen (15) days prior notice of the default and the Association’s intent to accelerate the

unpaid balance if the default is not timely cured. Following acceleration of the indebtedness, the

Association has no duty to reinstate the installment program upon partial payment by the Owner.

Section 3. PAYMENTS

3‐A. Application of Payments. After the Association notifies the Owner of a delinquency and the

Owner’s liability for late fees or interest, and collection costs, any payment received by the

Association shall be applied in the following order, starting with the oldest charge in each

category, until that category is fully paid, regardless of the amount of payment, notations on

checks, and the date the obligations arose:

(1) Delinquent assessments (4) Other attorney’s fees

(2) Current assessments (5) Fines

(3) Attorney fees and costs associated

with delinquent assessments

(6) Any other amount

3‐B. Payment Plans. The Association shall offer a payment plan to a delinquent Owner with a

minimum term of at least three (3) months and a maximum term of eighteen (18) months from

the date the payment plan is requested for which the Owner may be charged reasonable

administrative costs and interest. The Association will determine the actual term of each

payment plan offered to an Owner. An Owner is not entitled to a payment plan if the Owner has

defaulted on a previous payment plan in the last two (2) years. If an Owner is in default at the

time the Owner submits a payment, the Association is not required to follow the application of

payments schedule set forth in Paragraph 3‐A.

3‐C. Form of Payment. The Association may require that payment of delinquent Assessments be

made only in the form of check, cashier’s check, or money order.

3‐D. Partial and Conditioned Payment. The Association may refuse to accept partial payment (i.e.,

less than the full amount due and payable) and payments to which the payer attaches conditions

or directions contrary to the Board’s policy for applying payments. The Association’s

endorsement and deposit of a payment does not constitute acceptance. Instead, acceptance by the

Association occurs when the Association posts the payment to the Owner’s account. If the

Association does not accept the payment at that time, it will promptly refund the payment to the

payer. A payment that is not refunded to the payer within thirty (30) days after being deposited

by the Association may be deemed accepted as to payment, but not as to words of limitation or

instruction accompanying the payment. The acceptance by the Association of partial payment of

delinquent Assessments does not waive the Association’s right to pursue or to continue pursuing

its remedies for payment in full of all outstanding obligations.

3‐E. Notice of Payment. If the Association receives full payment of the delinquency after

recording a notice of lien, the Association will cause a release of notice of lien to be publicly

recorded, a copy of which will be sent to the Owner. The Association may require the Owner

to prepay the cost of preparing and recording the release. 3‐F. Correction of Credit Report. If the Association receives full payment of the delinquency

after reporting the defaulting Owner to a credit reporting service, the Association will report

receipt of payment to the credit reporting service.

Section 4. LIABILITY FOR COLLECTION COSTS

4‐A. Collection Costs. The defaulting Owner may be liable to the Association for the cost of title

reports, credit reports, certified mail, long distance calls, filing fees, and other reasonable

costs and attorney’s fees incurred in the collection of the delinquency.

Section 5. COLLECTION PROCEDURES

5‐A. Delegation of Collection Procedures. From time to time, the Association may delegate some

or all of the collection procedures, as the Board in its sole discretion deems appropriate, to the

Association’s managing agent, an attorney, or a debt collector.

5‐B. Delinquency Notices. If the Association has not received full payment of an Assessment by the

due date, the Association may send written notice of nonpayment to the defaulting Owner, by

hand delivery, first class mail, and/or by certified mail, stating the amount delinquent. The

Association’s delinquency‐related correspondence may state that if full payment is not timely

received, the Association may pursue any or all of the Association’s remedies, at the sole cost

and expense of the defaulting Owner.

5‐C. Verification of Owner Information. The Association may obtain a title report to determine the

names of the Owners and the identity of other lien‐holders, including the mortgage company. 5‐D. Notification of Mortgage Lender. The Association may notify the mortgage lender of the

default obligations.

5‐E. Notification of Credit Bureau. The Association may report the defaulting Owner to one or

more credit reporting services.

5-F. Collection by Attorney. If the Owner’s account remains delinquent, the manager of the

Association or the Board of the Association shall refer the delinquent account to the

Association’s attorney for collection. In the event an account is referred to the Association’s

attorney, the Owner will be liable to the Association for its legal fees and expenses.

5‐G. Notice of Lien. The Management Company may cause a notice of the Association’s

Assessment lien against the Owner’s home to be publicly recorded. In that event, a copy of the

notice will be sent to the defaulting Owner, and may also be sent to the Owner’s mortgagee. 5‐H. Cancellation of Debt. If the Board deems the debt to be uncollectible, the Board may elect

to cancel the debt on the books of the Association, in which case the Association may report the

full amount of the forgiven indebtedness to the Internal Revenue Service as income to the

defaulting Owner.

5‐I. Suspension of Use of Certain Facilities or Services. The Board may suspend the use of the

Common Area amenities by an Owner, or his tenant, whose account with the Association is

delinquent for at least thirty (30) days.

Section 6. GENERAL PROVISIONS

6‐A. Independent Judgment. Notwithstanding the contents of this detailed policy, the officers,

directors, manager, and attorney of the Association may exercise their independent,

collective, and respective judgment in applying this policy.

6‐B. Other Rights. This policy is in addition to and does not detract from the rights of the

Association to collect Assessments under the Association’s Restrictions and the laws of the

State of Texas.

6‐C. Limitations of Interest. The Association, and its officers, directors, managers, and attorneys,

intend to conform strictly to the applicable usury laws of the State of Texas. Notwithstanding

anything to the contrary in the Restrictions or any other document or agreement executed

or made in connection with this policy, the Association will not in any event be entitled to

receive or collect, as interest, a sum greater than the maximum amount permitted by applicable

law. If from any circumstances whatsoever, the Association ever receives, collects, or applies as

interest a sum in excess of the maximum rate permitted by law, the excess amount will be

applied to the reduction of unpaid Special Assessments and Regular Assessments, or

reimbursed to the Owner if those Assessments are paid in full.

6‐D. Notices. Unless the Restrictions, applicable law, or this policy provide otherwise, any notice or

other written communication given to an Owner pursuant to this policy will be

deemed delivered to the Owner upon depositing same with the U.S. Postal Service, addressed

to the Owner at the most recent address shown on the Association’s records, or on personal

delivery to the Owner. If the Association’s records show that an Owner’s property is owned by

two (2) or more persons, notice to one co‐Owner is deemed notice to all co‐Owners. Similarly,

notice to one resident is deemed notice to all residents. Written communications to the

Association, pursuant to this policy, will be deemed given on actual receipt by the

Association’s president, secretary, managing agent, or attorney. 6‐E. Amendment of Policy. This policy may be amended from time to time by the Board.

CERTIFICATION

“I, _____________________, being the President of _______________________________

Homeowner’s Association, hereby certify that the foregoing Policy was adopted by at

least a majority of the Association Board of Directors on the ____ day of

________________, 2013.”

By: ___________________________, President

Print name: _____________________

ACKNOWLEDGEMNENT

STATE OF TEXAS §

§

COUNTY OF __________________ §

BEFORE ME, the undersigned authority, on this day, personally appeared the person

_____________________ whose name is subscribed to the foregoing instrument and acknowledged to me

that they executed the same as the act of the Association for the purpose and consideration therein

expressed and in the capacity therein stated.

Given under my hand and seal of office this _____ day of _________________, 2013.

________________________

Notary Public, State of Texas

After Recording Return to:

Principal Management Group

11000 Corporate Centre Drive, Suite 150

Houston, TX 77041

2014 Collection Charges

THESE CHARGES ARE EFFECTIVE JANUARY 1, 2014

The Board of directors of each Association has an obligation to collect all Association assessments to pay

for the maintenance and replacement of common area property and other association expenses. The

Association is entitled to recover assessments, reasonable collection costs, reasonable attorney’s fees, late

fees and interest when assessments are not paid on time. The following collection policy for 2014 has

been adopted by the Board of Directors. Please note that Principal Management Group has a monthly

$20.00 handling charge per delinquent account. This fee will remain in effect until account balance is

under defined delinquent amount.

As a courtesy, the Association sends annual billing statements to owners. Owners are responsible for

timely payment of all charges when due. Payment of the regular assessment due date is on January 1st.

Annual assessments must be paid in full on or before January 31st.

209 Demand Letter- First Notice Certified Letter Charge $8.93

Title Search $55.00 plus tax = $59.54

Credit Bureau $60.00 plus tax = $64.95

Lien Process $140.00/Account plus tax =$151.55

Attorney Turn Over Fee $25.00

Association Attorney Form

Information to be filled out by Community Association Manager:

Name of Association of Attorney: ____________________________________________ Phone: ______________________

____________________________________________________________________________________

Signature of Manager Date

*If you plan to change attorneys at any point during the year, please notify the collection

department immediately.


Title: Approval/Signature Authorizations

Date: July 29, 2014

Purpose: To authorize approval and signature rights due to transition to PMG.

Background: Engagement of a new management company requires that existing bank

accounts be closed and new ones opened. This was to be accomplished

by motion of the Board at the June meeting, whereby CMC was to be

directed to cut a check in the amount of $390,000 and to close all

accounts.

Additionally, setup in a new Strongroom account, accounts payable

system, requires authorization of the Treasurer and the Community

Manager for approval rights.

With the new management company, authorizations for signature rights

need to be approved.

Motion to Board:

RESOLVED THAT, Michele Goldman, Treasurer and Janet Hampton, Community Manager with

Principal Management Group of Houston, have approval rights in Strongroom; and Surina Wright,

Vice President of PMGH or Dora Parker, President of PMGH, are authorized to sign checks.

Submitted: Michele Goldman


Action: _______________________ Date: ____________________________

Documents

Lake Windcrest Property Owners Association Board …...Lake Windcrest Property Owners Association Board of Directors Meeting AGENDA La Quinta Inn Conference Room. 6930 FM 1488, Magnolia,