Sierra Canyon, Somersett, Villages, The Vue – Your Community Forum

Verdi Today

To see what’s happening development-wise with our neighbors to the West, click on the following to access a new post on the REreno website entitled “Verdi Today”:

REreno – Hardcore Real Estate News

 

 

SOA SWOP Workshop

On August 7th, SOA Board member Ryan Burns conducted a strategic planning workshop at TCTC.  Workshop participants consisted of Board members, Committee members and Management (FSR) staff.  One objective being to assist in the establishment of Association goals and provide Budget and Finance Committees with information to support preparation of the SOA’s 2018 budget.  This was not intended as a decision making workshop, only one to generate useful information in support of future planning steps and decisions by the Board.

 In conducting the workshop, Mr. Burns used the SWOT analysis technique, a structured planning method to evaluate the Strengths, Weaknesses, Opportunities, and Threats facing the Association. Participants were divided into four groups and assigned to generate meaningful information for each of these categories, which were then presented and discussed in SWOT matrix format.  Elements of which were then assigned to various entities (Board, Committees, or Management staff) for follow-up.

 Suffice it to say that numerous diverse items were presented and discussed for each of the SWOT elements (mostly Strengths and Weaknesses) , which were too numerous to describe here. Obviously, subsequent filtering will be required to focus on those elements which best support future planning activities and Association goals.

 Homeowners were invited to attend the workshop and provide opinions/comments at the close of the meeting.  Few were in attendance and only one provided opinions on the following: 1) The SOA needs to form a Committee to come up with a plan or plans for what to do with the Country Club land in the event the Country Club defaults on the Lease Agreement, 2)  The SOA should be looking at ways to utilize the water rights included in the Country Club Land and Water Rights Purchase Agreement to its financial benefit. suggested there is more water available here than will ever be used for Association and Country Club usage, and 3) Both Canyon 9 and Country Club Maintenance Costs are too high, that design changes geared to reduce fairway and green sizes could significantly reduce maintenance costs.

Overall a well conducted workshop with good results from enthusiastic participants.  What remains to be seen is how these results are followed up on in future planning sessions.

The following memo published courtesy of Ken McNeil:

Village 3 Neighbors,

Pam and I talked with Toll Brothers Land Entitlement Manager, Matthew Lepire, on Friday afternoon about the progress of their construction project.   We had not talked with Matthew previously, so this was a good opportunity to get to know each other.

The earthmoving for the project is being done by Patriot Contractors out of Las Vegas.  According to Mathew, the current grading objective is to remove the rockery wall north of the fire station, and make a sloped cut into the hillside.  The heavy equipment has also constructed two temporary plastic lined water reservoirs with huge water pumps which can quickly fill the water carrying vehicles used to spray water to control dust and settle the disturbed ground.  One reservoir is north of the fire station, and the other is above the Toll Brothers construction office off roundabout 6.

Toll Brothers has just placed signage north of the fire station closing off public access to Bull Ranch Road.  The new signs indicate access to Bull Ranch Road can be made from Evergreen Ridge Way or Back Nine Trail.  Pam and I want to do some more talking to Mathew about these signs as we want to make sure no one on a dirt bike tries to use the paved trail at the end of Evergreen Ridge for access to Bull Ranch Road.  We have no problem with folks who want to ride their bikes or walk on the paved trail at the end of Evergreen Ridge.   The McNeil’s enjoy seeing folks taking a walk or riding a bike in the open space to the north of Village 3.

The large ditch which has been dug about 1/4 mile north of Evergreen Ridge is for a drainage improvement.  According to Matthew, a pipeline will be installed and the ditch covered.  We do not understand why such a large ditch is needed for a storm drainage pipeline.  We hope our information is correct that this large ditch which is a couple hundred feet long and probably 30 feet wide will be filled once the pipeline is installed.

Toll Brothers still plans to remove 60 feet from the rock covered ridge directly above Village 3, and do extensive cut and fills throughout the project area.

We asked about all of the graded dirt roads as some do not match the tentative subdivision map.  Matthew said some of the roads are for construction purposes, so not all of the graded dirt roads are permanent.

Earthmoving will continue for several months.  After storm drains and utilities are installed, paving of the streets will begin, and that is expected to be in the spring of 2018.  The final subdivision map has yet to be approved by the City of Reno, and that is still several months out.  In Reno, grading is allowed to begin without the final subdivision map being approved.  We do not think that is a good idea, but for many reasons trying to challenge the issuing of a grading permit without the final subdivision map being approved would not be successful.

We were told on Friday that Toll Brothers will be spending $1.8 million on landscaping for the project area.  It is our hope the landscaping will help hide some of the disturbed hillsides.

Ken and Pam McNeil

As it becomes more apparent that the costs associated with Somersett hillside and rockery wall repairs resulting from the winter storms will be quite expensive, the question arises as to how this will all be paid for.  That is, through reserves, insurance, homeowner assessments or a combination thereof.  Also, through what responsible entity?  as some of the incurred damage is on Somersett Country Club (SGC) land purchased by the Somersett Owners Association (SOA), under the “Real Property Purchase Agreement” and subsequently leased back to the SGC for golf course operations.  Therefore, who is responsible for repairs, the Landlord (SOA) or the Tenant (SGC)?

Under Article 9A “Four Year Warranty” of the Purchase Agreement as well as Article 8 “Repairs and Maintenance” and Article 9 “Damage or Destruction” of Exhibit C to the Purchase Agreement, it would appear that the Tenant (SGC) is responsible for any required repairs on the leased property.  However, to date, there has been no specific SOA Board position put forth in this regard, which will most likely end up as a litigation issue in the hands of the SOA and SGC Attorneys.

It has been reported that RFP’s will soon be issued to prospective vendors, the result of which will then establish the cost for repairs, and allow the Board to proceed with how funding will be accomplished..

TCTC Expansion Study

  • In 2016, the SOA contracted with BJG Architecture & Engineering to perform “The Clube at Town Center Expansion Study”. The purpose being to assess critical needs of The Club at Town Center (TCTC) to best serve the Somersett Community in the future. In doing so BJG met with Directors, Management Staff, and Committee Members to explore issues and potential solutions. As a result, key needs were identified, solutions proposed and priorities established for the following:
  • Priority 1 – SOA Offices, Canyon View Room, Social Spaces
  • Priority 2 – Swimming Pool Crowding, Swim Deck Expansion
  • Priority 3 – Fitness Center Overcrowding
  • Priority 4 – Childcare & Camps.

The BJG Study was subsequently approved by the Board, elements of which are now in the process of being implemented (e.g., Great Room, Canyon View Room and Media Room modifications, fitness equipment additions, mezzanine glass enclosure, swimming pool upgrade, etc.).

For those who may wish to view all that has been proposed and/or familiarize themselves with the details and estimated costs associated with each of the proposed solutions, a complete copy of the BJG study is available through the following links:

TCTC Expansion Study Part 1

TCTC Expansion Study Part 2

It is assumed that financing for the approved upgrades are being accomplished via the TCTC’s previously approved 2017 $450K special projects budget.

Somersett United

Following is a recap of issues discussed and or approved at the July 26th Somersett Owners Association (SOA) Board of Directors (BOD) Meeting. See previous posts for a full list of agenda items.

Committee Reports

  • It was announced that the Board will be holding a Workshop on Strategic Planning on August 7th at 1:30 PM. Workshop will be open to homeowners.  Homeowner comments will be accepted at the conclusion of the meeting, and that this will be the first of subsequent meetings on this topic.
  • The previous Board posting soliciting candidates to fill the open Board position being vacated by Mr. Fadrowsky was posted in error. A subsequent posting on the SOA website advised that this position would now be filled concurrent with the regularly scheduled November elections.

June 28th BOD Meeting Minutes

  • The RCI Fuel Assessment Report was approved and it was noted that the Priority 1 recommendations would most likely proceed within the next week or two., to be followed by the Priority 2 and 3 recommendations.  Homeowners who wish to know where their area falls priority wise are directed to Section  5.1 of the report, which can be accessed via the following link:    Wildfire Fuels Assessment & CWPP Plan.

Old Business

  • Legal Update – No update on the “Northgate Owners” litigation issue, a non -jury trial has been rescheduled to September 11, 2017.  The Wits, LLC property access issue was amicably resolved.
  • SBE Hillside and Rockery Wall Update –  RFP’s for repair work not yet issued, getting closer.
  • Ditch Repair and Maintenance    Two Vendors submitted bids for this work.  EPS at $27,045 and MNW Construction at $54,400. The EPS bid was approved.
  • Country Club Survey Request – Recommendation from the Communication Committee was to deny the Country Club request to conduct a survey (i.e., using SOA email and website resources) as presented. After some discussion, the BOD defered action to allow the Communication Committee and the Country Club to discuss acceptable alternatives.
  • Pool Redesign Proposal – The BOD approved moving forward with the “Splash Pool – V3” Design Option.  This option provides for the relocation of the kids slide and the addition of a new pool ( 14.5 ft. x 20.0 ft. ) for the slide to splash into.  Option cost was $347,985.  However, this included $70,000 for additional deck space to accommodate more lounge chairs or cabanas.  The BOD voted to exclude the deck expansion portion, thereby, reducing cost to $277,985.  Approved design is described on pages 99 and 101 of the BOD Meeting packet, accessible via the following link:  7-26-17 BOD Packet

New Business

  • Town Square Budget    Deferred pending further information/discussions
  • Consent for CFA Proposal    Approved contracting with CFA to finalize information needed to produce an accurate RFP for the SBE Hillside and Rockery Wall repairs. Contract amount $26,400 without additional approval.
  • River Hill Geotechnical Engineering Proposal – Approved proposal to assess causes of distress on common area land (i.e., Lot 4 Somersett at Riverside) based on July 14 field observations. Proposal amount $1500 plus time and expenses for additional meetings and/or consultation work.
  • TCTC Blind Proposals    Two bids were opened.  Budget Blinds was the successful bidder at $13,650.
  • Lennar Landscape Turnover – Common area turnover from Developer accepted on basis it has met all SOA requirements.
  • AGC Fee Schedule – New fee schedule was approved as described on page 122 of the BOD Meeting packet, which is accessible via the following link: 7-26-17 BOD Packet

Acceptance of Resignation

  • Board Director Joe Fadrowsky’s resignation letter was read and accepted effective close of meeting.  Director Ryan Burns was appointed as the new SOA Treasurer. Mr. Fadrowsky will remain aa a member of the Finance Committee.

Homeowner Comments

The following reflects concerns addressed to the BOD by a variety of homeowners.  Comments were taken under advisement by the BOD with some referred to Staff for follow-up.

  • A criticism of the BOD regarding the manner in which swallow nests were removed from the golf course tunnel, and a discussion of the consequences. Also, removal of golf course trees representing a disturbance to Hawk and Owl habitats (i.e., natural rabbit predators)
  • Restriping of one of the tennis courts to accommodate pickle ball was done in a manner which excludes play by serious tennis players.  This leaving essentially just one court for tennis member play.  Situation needs to be corrected.
  • A complaint on the lack of results in corrective action taken on a property owner whose land is a blight on the neighborhood.  Four years with no change. The BOD emphasized, but correctly stated that Nevada law precludes the BOD from publically disclosing any legal action taken against homeowner for non-compliant activities.
  • A complaint that pool modifications are primarily for the benefit of children at the expense of adults.  Examples being: 1) pool expansion for kids activities but no deck expansion for adult lounging and 2) lap pool usage. A suggestion that perhaps the Town Center lot purchased by the BOD a few years back (for pool expansion?) could be used for additional tennis courts.
  • Due to lack of action on the part of the Association. A request was made by a homeowner to be able to clear an adjacent common area by the homeowner at homeowner expense.  The BOD stated that this was something the BOD could not approve.

The Somersett Owners Association (SOA) has published the meeting packet for the July 26th Board Meeting. Packet is available for viewing on the SOA website (www.mysomersett.com or www.somersett.net). The July packet may also be accessed by clicking on the following link:

7-26-17 BOD Packet

The July Packet contains an updated agenda from that previously published, with the addition of two New Business topics:  1) Lennar Landscape Turnover & Contract Addendum, and 2) AGC Fee Schedule. It also contains significant information on the following agenda topics:

June 28, 2017 Meeting Minutes    For those interested in what transpired at the June BOD Meeting, an excellent recap has been provided.  Whoever is now publishing the BOD Meeting minutes should be congratulated.

Financials    In addition to the standard Treasurers Report and Monthly financials, the packet contains an Independent Auditor Report concluding that the SOA 2016 financial statements were accurately presented and in accordance with generally accepted accounting principles.

Legal Update – A memo from the SOA Attorney outlines descriptions and current status of the following legal issues:  1) SOA vs multiple Association owners over CC&R  issues associated with their Northgate land acquisition, 2) SOA vs an Association owner on a lien and property title issue, and 3) SOA vs Wits, LLC addressing access rights to the Hillbrow SBE subdivision.

Ditch Repair & Maintenance    Bid Proposal for ongoing work associated with repair and maintenance of drainage ditiches throught Somersett. Proposal maps and identifies affected areas.

Pool Redesign Proposal    Vendor proposal for modifications to The Club at Town Center liesure pool.  Five options are presented and well detailed, with estimated costs of $319,440 to $422,840. Proposed modifications address relocation of the existing water slide feature and the addition of an associated “splash pool”.

Consent for CFA Proposal    Authorizes CFA to spend up to an additional $26,400 to produce information required to acurately generate a bid proposal for Somersett SBE hillside repairs and rockery wall repairs at Timaru and Trail Ridge Courts. 

AGC Fee Schedule    The Aesthetic Guidelines fee schedule for new home construction ($10,000 fee – $8000 refundable), existing home remodels/additions ($1500 fee – $750 refundable), and external changes ($200 fee – $90 refundable)

Acceptance of Resignation    Resignation memo from Board member Joe Fadrowsky, which will require appointment of a new Treasurer. Since the SOA By-laws require association member election for Board vacancies, if Mr. Fadrowsky tenders his resignation as planned (i.e., at the conclusion of the July Board meeting), then the Board will operate with four members until the election of a new director.

Homeowners with comments or concerns on any agenda topic are encouraged to attend the Board Meeting and express them. Comments on agenda topics may be expressed at the start of the meeting, before discussion by Board members.

The Somersett Owners Association (SOA) Board of Directors (BOD) open meeting is scheduled for Wednesday, July 26th at 5:30 PM in the Canyon View Room at The Club at Town Center (TCTC). The BOD meeting agenda may be accessed by clicking the following link:

July 26th BOD Meeting Agenda

The “Board Meeting Packet”, which contains additional information on agenda topics is not yet available on the http://www.mysomersett.com website. Packet should be available prior to July 26th Meeting date. Owners may access this Packet by logging on to your http://www.mysommersett.com account and clicking on the “SOA/Committees & Meetings” link. This website will also provide an update when the Packet becomes available.

One of the more interesting agenda items is “Acceptance of Resignation’ and “Appointment of Treasurer”. It has been reported that Joe Fadrowsky is resigning as Board Director and SOA Treasurer effective with the July 26th Board Meeting. In this regard, the SOA recently sent out email notices to Association members soliciting candidates to fill the vacancy. The intent being to appoint a replacement after candidate reviews and to announce the new Director at the July 26th Board Meeting. However, this process was scrapped when it became evident that (per the SOA By-Laws) a Board vacancy can only be filled by Association member vote, either in a special election or in conjunction with the annual member elections generally held in October.

The Board has not yet announced how they will proceed with filling the vacancy. However, given the time requirements to conduct Association member elections, it will most likely be conducted in conjunction with the annual October Board elections, the results of which are announced at the November owner meeting with elected Directors taking office at that time. This being the case, the Board will function with only four members until November of this year, placing an unfortunate burden on the remaining Directors. Perhaps future Directors considering resignation can give sufficient notice to allow an election to take place without the Board having to operate with reduced membership for an extended period.

 

The following obtained courtesy of the “REreno – Hardcore Real Estate News” website:

Town Center TH, LLC (2290 Painted River Trail, Somersett – Mike Pollock, Manager), has submitted an application to the City of Reno’s Community Development Department for construction of “The Greens at Town Center”, a project to be comprised of ten townhouses on ten parcels plus a common area. Site location is the empty 34,900 sq.ft. lot adjacent to The Club at Town Center and the Canyon9 Golf course.

A more detailed description of the proposed project can be obtained by visiting the REreno website post “The Greens at Town Center” at www.rereno2.wordpress.com and downloading Developer application documents. The REreno post also contains additional Somersett Developer information.

The Town Center TH, LLC application references a set of CC&R’s to govern the development.  One might wonder how these will fit in with the SOA having been established as the “Approving Owner” for the Town Center properties with the right to approve building and landscape plans related thereto. That is, does the proposed “The Greens at Town Center” site fall within the SOA jurisdiction?

The following table represents a summary of the Somersett Golf Club’s (SGC) revenue and expense data for the years 2010 through 2016 (i.e., as extracted from their required IRS Form 990 submittals). Given the Somersett Owners Association’s (SOA) investment and liabilities associated with the Real Property Purchase Agreement (i.e., as entered into between the SOA and SGC in late 2014), the SGC’s financial health may be of interest to many Association members.

Year SGC Equity Members SGC Total Revenue SGC Total Expenses Revenue Less Expenses SOA Revenue Contribution Notes
2010 188 1,990,652 2,550,940 -560,288 0 1
2011 152 2,087,950 2,715,815 -627,865 0 2
2012 129 2,645,620 2,613,692 +31,928 435,000 3, 4
2013 115 2,918,754 2,815,109 +103,645 440,000 4
2014 194 2,729,114 2,695,062 +34,052 360,000 4
2015 220 995,670 2,581,250 -1,585,580 2,750,000 5,6
2016 241 2,611,329 2,664,450 -53,121 0  

 

Notes:

  1. Year in which the Somersett Development Company accomplished early turnover of the SGC to its Equity Members.
  2. First year in which the SGC was run entirely by Equity Members.
  3. In late 2011, the Developer SOA Board voted to divert $15/month of homeowner assessments to the SGC via a “Lease Agreement” in exchange for some SGC access amenities. Agreement was to run for three years starting in January 2012 with optional 3 and 4 year renewal periods. Purpose being to offset SGC operating losses.
  4. SOA Revenue Contribution column represents the approximate revenue the SGC received in 2012,2013 and 2014 from the SOA under the Lease Agreement described in Note 3 above. 2014 was the last year under this agreement after being declared improper by the Nevada Real Estate Division.
  5. In late 2014, a SGC Real Property Purchase Agreement was approved by SOA owner majority vote. Under this agreement, the SOA purchased the SGC land and water rights for $2,750,000 with a subsequent leaseback of the land and water rights to the SGC at a base rate of $1000/year (subject to escalation) plus a fixed rent amount of $1200/year. Lease term is for 50 years with two SGC optional 20 year renewal periods
  6. The SGC 2015 negative revenue less expense amount primarily due to the $2,750.000 sale price income (see Note 5) minus a reported sales expense (asset loss) of $4,294,781.

For those who may wish to delve into the revenue and expense financial details (e.g., memberships, golf operations, food & beverage, employees, etc) as well as assets and liabilities, a copy of the SGC’s IRS Form 990 may be accessed via the following link:

SGC 2016 Form 990