Message from the President

Fellow homeowners,

Those of you who know me personally know how conservative I am with the HOA money and how much I oppose monthly dues increases. I've spent years on the board cutting waste, implementing innovative cost-effective solutions, and demanding the highest return on our money to keep the dues low.

However, this year our monthly water bill has been running $400 above budget. Projecting this expense into 2019 resulted in a monthly dues increase to $137. There are 2 main reasons:

1) Failing irrigation infrastructure

Our sprinkler system is past the end of its useful life. We've had a record number of water-related emergencies (stuck valves, leaks, broken sprinklers, etc.) that resulted in significant water loss. Some water leaks went unnoticed/unreported for days.

2) Dry year

2018 was unusually dry. Combined with the new grass we replanted that required extra watering to establish, we've been running our weekly watering at a maximum for most of the year, whereas in rainy years half of our irrigation is turned off November - March while the other half is on minimal watering.

Pro-active solutions - replacing valves and sprinklers - is expensive and will result in a special assessment, which I'd like to avoid. Besides, most old hardware might continue to work for years, making a wholesale upgrade costly and unnecessary.

Gradually switching to more drought resistant plants seems to be a more viable option but it takes time as our landscaping budget is limited.

Please be assured that while on the board I will continue to search for cost-effective solutions within our current budget to avoid unnecessary dues increases.

Slav

2018 President's Report

We've had a busy year and accomplished a lot. We focused on high visibility projects to enhance property values and maximize the return on our HOA $$. All projects were completed on time and under budget.

I. Accomplishments

Landscape Upgrade

We allocated up to $20K from surplus reserves to upgrade landscaping throughout Mendocino, formed an ad hoc committee (Anita, Pat, Phil, Slav), and had several walkthroughs to refine our priorities. We focused on replacing damaged grass and replacing dead/old/overgrown/scraggly/missing shrubs with drought resistant plants. We documented our decisions with pics to ensure the most equitable use of resources. Our goal was to encourage a transition from the dated sculpted look to a more natural soft one. The improvements concentrated on two main areas for maximum visual effect:

1) homeowners' front yards,

2) the PP entrance corridor as a focal point.

We also removed overgrown shrubs that were blocking access to fuse/utility boxes on the side of the houses.

Architectural Review

Architectural standards were never enforced before, but with Mendocino aging, signs of deferred maintenance are everywhere: faded/damaged stucco, rusty metal, missing/broken decorative pieces... 

It's important to reverse the trend to preserve and enhance our home values.

The new Architectural Committee (AC) drafted Architectural Guidelines, inclusive of Minimum Architectural Standards, which were then added to the Rules and Regulations.

The AC did several weekend walkthroughs to inspect all homes for compliance with the minimum standards, documenting the results with pics and spreadsheet ratings.  The scores were mailed to all homeowners, followed by specific violation notices with reasonable timeframes to address them.

The AC will now inspect the homes for compliance every 3 months and follow up with the homeowners as needed.

Grass Retention and Replacement Plan

Grass damaged by cottontails and gophers has been an ongoing problem. Replacing the damaged grass without solving the cottontail problem will simply bankrupt the HOA as cottontails are territorial and often return to the same spot for fresh food. We researched several options and adopted a plan to retain and replace the grass within our budget (click here).

Higher Returns on the Reserves

We opened a brokerage account at Fidelity and purchased 4 brokered FDIC insured CDs with 6-month laddered maturities with the highest interest. A brokerage account allows us to buy the highest-yielding CDs nationwide.

Delinquencies

We started the year with record delinquencies. It is grossly unfair that some homeowners do not pay their share while enjoying the benefits paid for by others. We stepped up collection efforts and sued 2 homeowners who each owed us over $3,000 in small claims court. We obtained a default judgment against one homeowner which we turned over to a collection law firm; the second homeowner has made a full payment. Our delinquencies are down to a few late payments.

Efficiency and Transparency

The 3-member board was able to accomplish these tasks with only 5 board meetings. We made full use of delegating tasks to individuals and committees.  We also started Mendocino Buzz (https://mendocinohoa.blogspot.com/) to keep homeowners informed of what's going on.

Our efforts to improve Mendocino have encouraged a record number of homeowners to repaint their houses.

II. Challenges

Failing Irrigation

Our irrigation is past the end of its useful life. We had several broken valves that caused significant water loss. The problem is exacerbated by homeowners not always noticing or reporting a leak, resulting in several days of water runoff that greatly increased our water bill. 

Overgrown Trees

The developer planted inappropriate trees in the parkways that have grown too large, lifting sidewalks and threatening homeowner utilities and foundations. The HOA has to continue selective removal to avoid liability. Replacement is often difficult because a new tree cannot be planted in the same spot: (a) it's too expensive to remove the remaining roots, and (b) even small tree roots can damage the pipes.

 

Landscaping on the Corner of Via Cantebria and Garden View Rd.

Parkways along roads belong to the city but are the responsibility of the properties bordering them. Mendocino takes care of the parkways it is responsible for but the parkways in question are the responsibility of the non-HOA homes. We have a plan to get the non-HOA homes to do their part. 

Slav 

Grass Retention and Replacement Plan

We have been striving to maintain and preserve the grass throughout Mendocino. Unfortunately, the recurring damage from cottontails, gophers, and crab grass does not make it economically feasible to keep replacing the grass without resolving the underlying cottontail problem first. Simply put, it will just bankrupt the HOA. The board has put a lot of effort into researching the solutions and adopted a Grass Retention and Replacement Plan (in Documents and Forms on the right). The goal is to preserve the grass for as long as possible while gradually switching patches beyond repair to more drought (and cottontail) tolerant options over time.