ASSOCIATION NEWS Cont’d

Board Meeting Highlights

April 6 and April 20, 2023

• General Manager Marilyn Smith reported that the Jeronimo Slope Project has been completed. The audit of the landscape invoices is complete, and the findings have been posted in an eblast to residents.

• Facilities Report given by General Manager Marilyn Smith. The paint project is proceeding on schedule. The bocce ball courts project was completed by staff.

• Landscape Services Coordinator Bill Thornton reported that our vendor, Great Scott Tree Services, is reviewing the list of trees to be trimmed this year.

• Recreation Director Valerie Hanich reported that the age-verification process is nearing completion.

• The Board:

• Accepted the March 2023 financial report from Treasurer Karen Warren, as shown on this page.

• Approved procurement of materials to replace damaged backboards at the Lawn Bowling Pavilion from American Plastic Lumber for the total cost of $5,121.82.

• Approved the purchase of a 20-foot storage container from SunPac Containers at a total cost of $4,145.34.

• Approved the removal of the Rec Ctr 2 pool covering to be completed by the HOA maintenance staff at a total cost of $869.

• Approved the replacement of two controllers at Rec Ctr 2 pool by Aqua Tek Pool Services for a total not to exceed cost of $11,079.88.

• Approved extra work items to be completed by PWLC1 to correct safety issues at Ribalta Park for materials to support the treescape at a cost of $2,191.09.

• Approved the notification and posting of proposed changes/additions to Traffic Rules and Regulations regarding the Friends & Family Transponder program.

• Approved replacement of lava rock at two fire pits with fire glass and metal screens at a cost not to exceed $3,432.92.

• Approved the revision of the Committee Recommendation Document.

• Approved change order #1 from Landscape West Services for additional plants for the Jeronimo Slope Project in the amount of $11,090.

• Approved committee members and vice chairs: Fred Wilmott as a member of the Architectural Committee, Bryan Spafford as Vice Chair of the Facilities Committee, Claire Readey as Vice Chair of the Social Committee.

• Approved the proposal from PWLC1 to repair the lawn bowling mower not to exceed $290.

• Approved the list of tree removals submitted by W.B. Starr to remove 17 trees due to danger, damage, health, or potential sewer issues at a cost of $23,983.

• Approved the 2023 candidate list and the posting of the General Notice as provided and recommended by the Election Committee in compliance with California Civil Code.

• Approved the proposal from GMU Geotechnical, Inc to design the drainage improvement plan at 28071 Calle Casal, solicit bids and oversee construction.

• Approved the proposal from Santa Margarita Plumbing to repair the sewer line at 28081 Via Enriquez at a cost of $8,890 and for PWLC1 to remove the tree at a cost of $350 for a total cost of $9,240.

• Approved a system for Work Orders by which PWLC1 will accept approved work and then reference that Work Order for cross reference to invoices.

• Approved a review of the trees under warranty that were planted and failed, to ensure they were, in fact, replaced.

• Common Solutions Consulting (CSC) - Board member individual observations on the CSC Landscape Report.

The May meetings of the Board of Directors will be held May 4, 2023, at 9 a.m. in the Vista Room and on May 18 at 1 p.m. in the Vista Room.

Fran Morgan, Courier Staff

**For a copy of the March 2023 Treasurer’s Report, refer to castadelsol.com, Recreation Center bulletin boards, and/or eblasts.

March Treasurer’s Report

Total HOA Assets as of March 31, 2023 are $7,390,280 an increase of $317,437 from last month. This includes the following:

• Operating Cash is $1,697,970. This includes $262,666 in cash, $935,304 invested in a money market account, and $500,000 invested in four CDs with interest rates between 2.50 and 4.35%. There is one operating CD that matures April 27, 2023 for $100,000 that will be rolled over for one year at a rate of 5.25%. The plan is to invest another $400,000 in four $100,000 CDs on a ladder basis. One is for three months at 5%, one for six months at 5.20%, one for nine months at 5.20%, and finally one for 18 months at 5.30%. This will bring our operating CDs to nine for a total of $900,000. That will leave $436,099 in the liquid FDIC Money Fund.

• Reserve Cash is $5,159,536. This includes $1,043,819 invested in a money market account, $4,200,000 invested in 21 CDs with interest rates between .70 and 5%, plus $18,319 in prepaid taxes and $47,846 in interest. There is also a total expense due to Operating in the amount of $132,129. There are two $200,000 Reserve CDs that mature on April 13 and 25, 2023, that will be rolled over, one is for nine months at 5.20% and one for one year at 5.25%. Additionally, one more $200,000 CD will be invested for 18 months for 5.30%. This will bring the Reserve CDs to 22 at a total of $4,400,000. That will leave $444,659 in the liquid FDIC Money Fund.

• Capital Improvement Cash is $230,778. This account is funded by budgeting $8 per month per homeowner that results in monthly capital contributions of $15,416 plus interest.

• Total Outstanding Accounts Receivable is $86,046. The allowance for Bad Debts is $52,622 and is adjusted monthly. It is equal to outstanding receivable balances over 31 days.

The following is a selection of our operating category expenses for the first three months of 2023.

General & Administration is: $326,958 which is $4,660 under budget.

Land Maintenance is: $917,682 which is $172,606 under budget.

Recreation/Lifestyle is: $100,013 which is $8,808 under budget. Repairs and Maintenance is: $$66,613 which is $10,900 under budget.

Traffic Control is: $228,394 which is $1,731 under budget.

Utilities are: $243,968 which is $91,771 under budget.

TOTAL Operating Expenses

Before Reserves is: $1,883,629 which is $290,476 under budget.

TOTAL Operating Expense

Including Reserves and Interest is: $2,856,237 which is $259,616 under budget. The following is a sampling of operating category expense for the month of March 2023.

General and Administration

• Office Supplies/Equipment is $1,954 under budget, which is Credit Due to 2022 Audit Adjusting Entries.

Maintenance

• Tree Removal is $27,190 which is $14,690 over budget due to emergency removal of 21 Dead/Dying/Diseased Trees.

Utilities

• Electricity is $13,767 which is $31,288 under budget due to the Climate Credit being applied to one of the Edison accounts.

Treasurer Comments

This Treasurer’s report includes all information compiled through March 31, 2023. There are three $200,000 Reserve CDs that will mature on May 4, 10 and 11, 2023. We are still working on the Asphalt contract and sending out bid requests for the new Landscape contract. The Board will keep the membership apprised of all progress made on all outstanding projects.

Respectfully Submitted,

Karen Warren, Treasurer