SUNRIVER OWNERS ASSOCIATION BOARD OF DIRECTORS MEETING
SROA BOARD ROOM VIA ZOOM May 16, 2020
DIRECTORS PRESENT: Bob Nelson, Keith Mobley, Jackie Schmid, Gerhard Beenen, Jim Fister, Gary Bigham, Brad Skinner, Mark Murray & Mike Gocke
STAFF: James Lewis, Hugh Palcic, Susan Berger & Jesus Mendoza
OWNERS IN ATTENDANCE: 7 via telephone who were in attendance to listen to the meeting. The Board of Directors meeting was called to order at 9:00 am by President Mobley.
OWNERS FORUM: No one addressed the Board.
OWNER FORUM FOLLOW-UP FROM PREVIOUS MONTH’S MEETING
Director Nelson reported the Board held three meetings in April, the first on April 13th where a concern
was heard from Jennifer Porterfield, Meadow House 20 regarding the ban on short-term rentals. GM Lewis explained that it was Deschutes County who put the ban in place. SROA has no authority over short-term rentals. There were no owners who addressed the Board at the April 17th Board Work Session.
On Saturday, April 18th during the regular board meeting, Mike Mitchell, Fairway Village Condo 26
offered his thanks to the Board and staff for the hard decisions that have had to be made during the COVID-19 outbreak and shared his concern about businesses in the Village being able to survive this pandemic.
Randy Schneider, 6 Dixie Mtn. Lane and Bill Burke, 24 Yellow Pine were present for all three of the April meetings to listen and learn.
RECAP OF 5/15/2020 BOARD WORK SESSION
President Mobley reported SROA Magistrate Jo Zucker was in attendance to provide her 2019
Magistrates Report. It was noted that there are a couple non-compliant owners whose complaints took an extraordinary amount of time and effort to resolve. Ms. Zucker noted her appreciation for the graduated fine schedule the Board approved a couple years ago noting that in most instances, apart from the aforementioned non-compliant owners, owners have taken care of their violations in a timely manner to avoid unnecessary fines. The Board heard an update on the COVID-19 pandemic statistics and what the next phase of re-opening will look like for SROA and SHARC. The Board heard an update from the SROA/SSD COVID-19 taskforce, an update on the North Pool Complex as well as updates on the work of both the IAMP and Telecommunications taskforces. The Board held a lengthy discussion regarding the Sunriver Service District (SSD) resolution asking SROA to create, monitor and maintain a rental registry for Sunriver. The Board held an executive session on Friday to discuss contractual and legal matters. The Board reviewed the agenda for today’s meeting.
ACTION ITEM MINUTES
President Mobley asked for a motion to approve the minutes of the April 13, 2020 Special Board Meeting.
Director Nelson moved to approve the minutes of the April 13th Special Board Meeting as written.
President Mobley asked for a motion to approve the minutes of the April 17, 2020 SROA Board Work Session.
Director Skinner moved to approve the minutes of the April 17th Board Work Session as written.
Seconded by Director Fister, motion passed unanimously.
President Mobley asked for a motion to approve the minutes of the April 18, 2020 SROA Regular Board Meeting.
Director Bigham moved to approve the minutes of the April 18th Regular Board Meeting as written.
Seconded by Director Murray, motion passed unanimously. FINANCIAL
Treasurer Beenen noted that while SHARC was closed for the month of April, the Board had previously voted to keep all full-time employees whole through the month of April, so that is a bit out of the ordinary with respect to normal operations in the month of April. There is a significant income shortfall with respects to materials and services. Expense savings put in place by SROA managers, for which the Board is very appreciative, and timing of invoice receipts offset some of the shortfall. Legal expenses were over budget by $11k but overall the month of April ended better than anticipated.
Treasurer Beenen reported for the month ended April 30, 2020, there was a net operating deficit of $76,153 which was $9,198 less than budget. Total operating revenues were less than budget by $124,217 mainly due to recreational facilities being closed in April. Total recreational revenues (admissions, special programs, merchandise, MMP, RPP) were under budget by a combined $108,555. The trail use lease ($17,515) was not renewed this year with Sunriver Resort as they are not planning on trail rides this year. Design review fees and advertising revenues were also below budget due to COVID-19 limitations and less activity. Material and services costs were under budget by $129,967 due to reductions in expenditures and timing of month-end close. Legal fees were over budget by $11, 587. This relates to March’s invoice, which included continued fees for defending SROA’s land use challenge and HUD complaint. April’s invoice has not been received at the time of this report.
For the four months ended April 30, 2020, there was a net operating deficit of $371,609 which was $73,833 behind budget. Operating revenues were less than budget by $165,549 due to the above-mentioned COVID-19 related reasons. Salaries and burden combined were over budget by $32,573 through the first four months of the year. Fourteen full-time SROA positions were either laid off or not filled at the beginning of May. Materials and services expenses were under budget by $193,849 through April due to the reduction in expenditures and timing of invoices. Total interest income earned in the first four months of 2020 was $98,153.0
Total assets as of April 30, 2020 were $34,250,982. Cash and investments totaled $16,418,261, a decrease of $588,204 from March. As of April 30, 2020, a total of $16,263,274 was invested with First Interstate Wealth Management. Construction in progress included payments towards the North Pool Complex project, a new printer, network backbone project and floatable toys for SHARC.
April 30, 2020 (Unaudited)
ACTUAL TOTAL REVENUE $3,358,982
TOTAL EXPENSES $3,730,591 OPERATING FUND SURPLUS $ (371,609)
Director Gocke moved to approve the unaudited financial statements for March 2020. Seconded by Director Beenen, the motion passed unanimously.
GENERAL MANAGER’S REPORT
It was noted that this report is for April activities, so some of this is now old news. Staff continues to monitor and respond to both state and county COVID-19 orders regarding facility closures, short-term rental prohibitions and social distancing requirements, including continued implementation of internal COVID-19 office protocols. Department managers have revised SROA budget projections for 2020 revenue and expenditures related to the effects of COVID-19 and proceeded with the lay-off of 14 positions. The decision was also made to not fill two positions that had been budgeted. Staff worked with the SSD, Police & Fire staff to create the SROA/SSD joint taskforce to address effects of COVID-19 and generated a joint letter to Deschutes County. Staff has responded to many, many emails and phone calls regarding the outbreak and the impact facility closures will have on the Recreation Plus and Member Preference Programs as well as numerous requests to consider lowering the monthly maintenance fees. The lease and license agreements with Sunriver Resort for pasture and trail use has been signed as has the river shuttle agreement. It was noted the river shuttle is not yet operational for this year. The agreement for an easement encroachment agreement at the North Pool Complex site with NW Natural has been completed. Staff continued to work with legal counsel regarding ongoing land use and legal actions. The Accounting Department, specifically Controller Joe Healy, worked with department heads on revisions to the 2020 budget that was presented to the Finance Committee on Wednesday. These revised budgets are a result of the impact of the COVID-19 outbreak. Staff is working with representatives from Price, Fronk & Co. on the 2019 yearly SROA audit. Controller Healy also assisted the Sunriver Service District (SSD) with their 2020-21 budget preparation.
IT Director Brad Olson is working with Mid-State consultants on the telecommunications task force report and has been involved in meetings with Bend Broadband regarding fiber options. Staff installed a new projector in the SROA Board Room, implemented new lighting controls at SHARC, created online storage to backup Office 365 accounts and ordered new conference phones.
In Communications, advertising revenue for the May Scene was a wash as we provided a free ad to our regular customers to help them out during the COVID-19 crisis. Fewer Scenes are being ordered for May due to business closures, which is where many of our distribution racks are located, as well as fewer overall visitors. Scenes are currently distributed at both grocery stores, Camp Abbot Trading Company and the SROA Admin office.
Staff continues to receive a lot of positive feedback on the new SROA website, www.sunriverowners.org. A COVID-19 page has been created on the site to keep owners abreast of the most up to date information. As this pandemic is still quite fluid and information is changing frequently, owners are urged to check it often for the most up to date information. The site includes a wealth of information with links to a variety of topics. It’s easy to navigate and the feedback staff has been receiving has been very positive
There were 548 reads of the digital April Scene. We generally average less than 30 online reads! The SROA website was visited by 7,530 users in April with popular pages being weather, coronavirus page and news. The SHARC website was visited by 1,700 users in April with popular pages being
admission/rates and outdoor pool.
applications/plans and for applicant meetings including means for electronic submittals. Overall the process is working well and staff, owners and contractors are all adjusting well to this new process. Contractor registration and construction activity remained strong prior to the COVID-19 crisis. Overall activity for the month of April declined from the previous month, much of that due to the COVID-19 crisis.
Natural Resources staff have revised department staffing and procedures in response to COVID-19. Ladder fuel reduction courtesy letters have been mailed and the bid for 2020 ladder fuel reduction and tree thinning on commons has been released. Staff prepared 750 ponderosa pine bareroot seedlings to celebrate Arbor Day and they were all gone in record time this year. Review of the Community Wildfire Protection plan continues, and spotted frog spring monitoring and egg mass surveys are underway. Staff members also responded to numerous phone calls and performed site visits for private ladder fuel reduction and tree removal permits.
The Public Works Department continues to monitor all the closed SROA owned restrooms, play
equipment and sports courts per the order from the Governor. Updated and additional closure signs were put on the pathways leading into parks, as well as instructional signs for social distancing.
The Fort Rock Park ballfield has been repaired and updated. The landscape plan for the Abbot/Beaver circle has been finalized and the work should commence shortly. Contracts are in place for crack sealing, micro seal and slurry work. Crews have started the second round of ladder fuels chipping noting that the piles are a lot bigger this year and there are a lot more of them, a sure sign that owners who are stuck at home due to the COVID outbreak are working on making their property safer. The ladder fuel pickups will continue on a monthly basis through the month of October. Piles need to be placed on the edge of the owner’s property next to the road and can include limbs, branches, bitterbrush and trees four inches or smaller in diameter.
Crews have been evaluating and ordering road marking supplies and sweeping roads and pathways. A number of downed trees at Mary McCallum Park have been chipped and some items left from the mud run event have been removed. Crews have also prepared and paved the emergency exit around the new restroom at Fort Rock Park.
The new, budgeted for, chipper that was procured through a government price agreement has saved thousands of dollars for the Association should arrive soon. Service and pump testing for the SR Fire Department trucks is underway and the switch over of equipment from winter to summer operations is in full swing.
Recreation managers have adjusted their 2020 budgets in light of the COVID-19 outbreak. Eleven full-time and all part-full-time recreation staff members were laid off in April. Work plans and daily schedules have been created for the remaining skeleton crew of staff members. Deep cleaning and full sanitization of the SHARC facility continues and cleaning and sanitizing procedures are in place for when the facility can be reopened to the public.
15 private and/or owner events as well as the ticketed concert and all the Turf Tunes events have been cancelled for 2020. Several the groups whose events were cancelled have already booked for 2021. GM’s Palcic & Lewis commended Recreation Director Steven Stanfield and his team for the excellent job they have done in revising their budget to accommodate this unprecedented event as well as making tough calls where necessary regarding laying staff members off.
Copies of entire report were included in the Board binders.
LIAISON AND COMMITTEE REPORTS
Copies of the minutes received from committees that met last month were included in the Board binders. SUNRIVER SERVICE DISTRICT (SSD) REPORT
Director Fister reported that the SSD has submitted their 2020-21 budget to the Deschutes County Commissioners for approval. The tax rate will remain unchanged at $3.31 per $1000 assessed value. There might be some revenue shortfall from both tax and ambulance revenues and due to recent legislative changes, there will now be the requirement for the SSD to pay PERS on salaries of five retirees.
The budget also includes the recommendation to add two full-time firefighter/paramedic positions. Director Fister added that most of the expense to pay for these two positions will be covered in the reduction in overtime by current staffers. Director Murray added that the Medicare reimbursement for ambulance transports is being increased and although the department does not do a lot of
Medicare/Medicaid calls every little bit helps.
Director Beenen complimented the District on being able to maintain the $3.31 per $1000 assessed rate for another year. Director Fister noted that one item that continues to come up is the desire to do a
significant remodel of the fire station building. An increase in the annual tax rate is one of the ways being considered to achieve that while covering all other expenses within the existing tax rate. Director Nelson wondered if the County might be willing to help with some of those expenses. Director Fister commented the county had expressed interest in hearing about the project but that was prior to the COVID-19
outbreak and as a result, those discussions have been sidelined. Director Fister doesn’t anticipate further dialogue on the issue until some time in the fall given the County is facing an approximate $3 million-dollar shortfall in transient room tax million-dollars (TRT) for the next fiscal year. It was also noted that a significant amount of the TRT dollars go directly to the Sheriff’s Department for personnel expenses in south county because that’s where a lot of those TRT dollars are generated.
Police Department calls were up significantly in the past month primarily tied to the ban on short-term rentals despite the lack of enforcement capability at the Police Department. Approximately 50 calls were received concerning possible short-term rental violations
and over 40 of those were found to be within compliance. Those not in compliance were educated accordingly. There were a significant number of non-resident owners contacted who chose to come to their Sunriver homes to ride out the outbreak.
One police officer, Officer Emily Paranto who has been doing field training in Sunriver is back at the police academy in Salem now that they have resumed operations. She will be on staff full-time later this summer. The department is still down one officer and Chief Darling doesn’t anticipate hiring for that position prior to the end of summer noting that the department does have the Deschutes County Sheriff’s as backup if needed.
A siren test was conducted last Tuesday with the assistance of several the Citizen’s Patrol members from the field. The bike patrol officers have completed their training and are out and about on pathways. Copies of the approved minutes from the March 19, 2020 SSD Board meeting were included in the Board binders.
AFFIRM BOARD ACTION WITHOUT A MEETING FORMATION OF JOINT SROA/SSD COVID-19 TASK FORCE
Director Fister moved to affirm the April 24, 2020 Board Action without a Meeting, conducted in accordance with Article IV, Section 12 of the SROA Bylaws to form a joint SROA/SSD COVID-19 Taskforce to address COVID-19 issues as they affect Sunriver. Seconded by Director Murray, motion passed unanimously.
SROA COMMUNICATIONS POLICY
Staff recently conducted the mandated periodic review of the SROA Communications Policy and
identified several housekeeping items that needed to be addressed. The Board was provided copies of the policy, which was last reviewed in 2016.
Director Bigham moved to approve the changes to the SROA Communications Policy as presented. Seconded by Director Schmid, motion passed unanimously.
OTHER BUSINESS ANNUAL MEETING
GM’s Palcic & Lewis encouraged the Board to start thinking now about what they want to include on the agenda for the annual meeting this year keeping in mind that it may well be a virtual meeting depending on where we are with the COVID-19 pandemic. Director Beenen suggested not having the Board up on a stage and instead having each person come up to a podium one at a time. Additionally, Director Beenen did not care for the room setup last year as it required people to have to turn their heads to see the big screen, which showed the financial reports, etc. It was noted the room had to be set this way to accommodate both the meeting and the open house event that occurred at the close of the meeting last year. It’s highly doubtful that there will be a similar open house event this year so the entire Benham Hall can be used for the meeting, which may be required to achieve proper social distancing as well.
Director Bigham moved to recess the public meeting and adjourn into Executive Session under the authority given in the Sunriver Bylaws, Article IV, Section 10 to discuss contractual, personnel and legal matters that may be subject to a claim of privilege. Seconded by Director Beenen, motion passed
The public meeting recessed at 10:38 A.M. The public meeting resumed at 11:12 A.M.
RECREATION PLUS PROGRAM RESOLUTION 2020-005
The Board directed staff to finalize a resolution regarding refund for the Recreation Plus Program participants.
Director Bigham moved to adjourn the meeting. Seconded by Director Beenen, the motion passed unanimously.
The meeting adjourned at 11:13 A.M. Respectfully Submitted,