2017 PRESIDENT'S REPORT

2017 RESULTS

Fellow Homeowners,

The board's goal this year has been to get the maximum return on our $$ by focusing on high visibility projects while maintaining a lean and clean budget. Early in the year we set our 2017 goals - most have been accomplished. We:

1. Switched to a new management company

The transition was smooth.

2. Fixed the Monterey entrance monument

for $6K, with top quality workmanship and materials -  thanks largely to Phil DeAnda. The reserve specialist gave it an expected life of 40 years.

3. Painted wooden fences

Had not been painted for probably 10 years.

4. Added/replaced faded street signs

5. Continued to improve post-drought landscaping: (a) finished clearing the slopes, (b) did a major tree trimming

(We had A LOT of dead shrubs and tree overgrowth.)

6. Encouraged several homes to convert driveway strips to hardscape

Driveway grass strips are nice but impractical: they cannot be maintained when cars are parked over them + capping sprinklers saves water.

7. Adopted new Rules and Regs

The old R&Rs were 20+ years old and had become unenforceable. The new R&Rs are simplified, streamlined, and, as a homeowner put it, "age-appropriate" for Mendocino. Example: allowed parking in driveways. The old rules were never enforced but parking in driveways was still a violation subject to a fine.

8. Got a better website

We finally stepped into the 21st century by getting a functional website and moving several HOA functions online.

9. Switched to a blog for better communication/transparency

I believe the improvements encouraged more homeowners to paint their houses, further enhancing the look and appeal of Mendocino. There is a reason why we chose "Mendocino - best kept secret in Encinitas" as our "official" tagline.

2018 GOALS

The board will start the January 8 meeting by setting 2018 goals.

1) $20K Landscape Upgrade Program

Challenges: elevated levels of soil (water runoff and poor grass growth), rabbits eating/killing grass, large tree roots close to the surface impeding other plants' growth, end-of-life shrubs, overgrown/crowded landscaping vs. bald spots.

2) Re-paint the curbs?

Last year the board chose the cheapest option to paint the curbs - and it shows. There is a way to  (re)do them right for a good lasting look.

3) Paint utility boxes and light poles

Light poles are faded, but they are made from fiberglass that does not take paint well. Utility boxes have never been painted and it's beginning to show.

4) Architectural and landscaping guidelines

The AC should help encourage upgrading and maintaining the Mendocino look, and make architectural modification request approvals less rigid and arbitrary. The LC should help create a more cohesive landscape look, and encourage homeowners to invest more in their front yards. 

5) Non-HOA (and HOA) landscaping around the outer perimeter:

The parkway strips are owned by the city but must be maintained by the homes bordering    them. We do our part but the non-HOA homes do not. Getting them to comply is a  challenge.

Please contact MMS if you have other suggestions for improving our community or would like to contribute to the beautification of Mendocino.

Slav Fedorov,

President

TREASURER’S REPORT – KEY ITEMS REPORTED ON 5 DECEMBER 2017

Bank Accounts

·         As of the end of November, we are under our operating budget by a little over $10K, and expect to meet our budget by the end of the year
·         We completed the transfer of our reserves account to Fidelity and purchased 4 CDs that will become mature on 6-month intervals.
·         The Fidelity account and the CD purchases were made to maximize interest accrual compared to other CD investment options.

Delinquencies

·         The biggest issue we have with our finances is the number of homeowners whose fee are delinquent by over 60 days.
·         The total dollar amount of delinquencies over 60 days is $4,058.49, and over 90 days is $3,230.49.
·         Three homeowners each have delinquent payments greater than $1,200.
·         Our fee collections and lien policy was provided in your 2017 annual disclosures email.
·         Consistent with the CC&Rs and California Civil Code, we have issued pre-lien demand letters via certified mail for homeowners with fees that have delinquencies that are greater than 90 days old.
·         These pre-lien demand letters indicate that if payment is not received within 30 days of the date of the letter, the HOA will be recording a Notice of Delinquent Assessment Lien for the delinquent fees and additional legal fees up to $500.
·         When the delinquent fees are in excess of $1,800 or more than 12 months delinquent, we are allowed by law to initiate foreclosure proceedings. 

      Anita Broughton, 
      Treasurer