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BOARD OF DIRECTORS MEETING, THURSDAY, NOV. 16, 2006, 7:00PM Hammock Community Center, Malacompra Road, The Hammock The Board meeting commenced at 7;00PM. The following Board members were present: President, Paul Zacharias, Vice President, Sara Clarke, Secretary, Peggy Steele, Treasurer, Karen Joyce and Operations Coordinator, Joe Bowen. The following homeowners, all invited by notice enclosed with the minutes and by posting of a notice on the community bulletin board: Harold Clarke, Steve Steele, John Bonner, Frank Carelli, Dennis & Debbie Clark and Bob Hamby. Before calling the meeting to order, Paul called upon those present to voice any concerns or to have any item placed on the agenda. There were no items to be placed on the agenda. Paul read 2 letters (which follow) received from Bob Rohr who could not attend the board meeting. Letter 1 ROBERT C. ROHR 21 Cottonwood Trail Palm Coasts Florida 32137 Tcl:(386)445-5299 October 13, 2006 Mr. Paul Zacharias 29 Cottonwood Trail Palm Coast, Florida 32137 _Dear Paul, Enclosed is my letter in response to a complaint signed by Sara Clarke and Karen Joyce regarding signage violations. At the Board meeting last evening, in response to my question of whom the specific homeowner might be that is calling attention to the issue, Sara said that there was no letter of complaint. So, who is pushing the issue? She also implied that I would not receive the courtesy of a reply and would not receive the data requested. Sara said that per your instructions, C&Rs would not be discussed and "Tabled" homeowner discussion in the pre-Board meeting time allotment. This HOA is being run like a Dictatorship and not as a Homeowner's Association. The Selective Enforcement of C&Rs is ridiculous and certainly not warranted, especially the attempt to enforce the signage issue. Please be reminded that Judge Kim Hammond dismissed the HOA case (brought by the developer) against ReMax etal., finding for real estate signage. Be reminded also, that by Florida law, you only have five (5) years to enforce C&R issues. Time has long expired! There are more important issues in the community than signage! As mentioned previously, the Board should not be enforcing C&Rs prior to seeing what the revised C&Rs may bring. Putting concerns off to the Annual Meeting is crazy. There is not enough time in the day no less than the time allotted to the Annual Meeting to properly address Homeowner concerns. Currently, homeowners can only speak their mind in the short period prior to quarterly Board Meetings. Perhaps that is the reason, no one seems to attend or even care. Perhaps, its time for the "Betterment" of the community to dissolve the HOA entirely.
Letter 2 As you are aware, Nites and I will be cruising at time on BOD meeting scheduled for 16 November. Guess certain BOD members will be happy to hear that I will be absent (lol). However, I ask that you pass on my thoughts below to other members of the BOD: Paul asked if there were any other concerns. Frank questioned the legality of the betterment fund. He feels that a membership vote should have been taken to approve any betterments for the pool area before they were funded. Paul said he is certain that a betterment can be made without a membership vote and asked Frank where our C&Rs state that a vote must be taken. Karen Joyce stated her view that the Association is set up so that Board members act as the membership’s elected representatives to administer the association on the membership’s behalf so that every issue does not require a vote of the membership. Frank said that he might obtain a lawyer to challenge the Board’s action and then left the meeting. Subsequently, Harold Clarke expressed support for Frank’s concern about the Board’s ability to spend large sums on betterment without a membership vote. Dennis Clark expressed his concern about what he viewed as the hostility and suspicion contained in the comments toward the Board. Sara Clarke said that the perceived hostility and suspicion is likely the result of some members’ longstanding frustrations with how the Boards of Directors have acted in the past. Paul stated that as will be seen later, the agenda for the annual meeting includes time for the concerns raised by Bob Rohr, Frank, and Harold to be presented. Paul then called the meeting to order. Adoption of agenda: Paul asked if there were any items to be placed on the proposed agenda. There being none, the agenda was adopted. Approval of minutes: Paul asked for any changes or additions to the Board meeting minutes of October 3, which was a special meeting to approve voting procedures, and the minutes of October 12. There being none, the minutes were approved as written. Social Committee: Peggy said that flyers have been distributed to residents with details for the Christmas party. There has been a slow response. Reservations should be made by Nov. 28. HOLIDAY PARTY Dec. 10, 2006, 5:30PM VFW, 47 Old Kings Rd. Cash bar Live band! Please call Kathi at 446 1883 Peggy at 446 9094 or Karen at 447 1860 Chicken breast $25 per person, Prime rib $3l per person Treasurers report: Paul announced that changes need to be made in the budget because Homeowners associations no longer have to pay taxes on common grounds. The county has adopted for the purposes of Homeowners Associations the same policies as used by condos. The proposed budget reflected an increase of $50 per lot to cover the costs of maintaining the reserve funds at $10000 and for betterment funds to improve the pool area. However, there are no taxes to be paid this year, which will save us over $2000, and we will not be taxed next year. The combined two-year savings is about $4500. The proposed budget has been updated because the pool deck repair costing $1116 was completed this past month instead of waiting until 2007. Because the deck has been repaired and resurfaced there will not be an expenditure for the pool deck maintenance in 2007. The next deck maintenance will be scheduled for 2008, as it should be done every 18 months. Paul explained that because of the tax savings, the Board-approved plan to spend $15,000-$16,000 over two years to build four covered picnic table structures ("tiki huts) and landscape the common grounds could now be done for a dues increase of $15 (instead of $50). Paul noted that although the bylaws do not pose a limit on dues increases to cover increases in reserves or fund betterments, the $15 increase would amount to 8 percent, which is less than the 15% dues increase permitted to fund operating expenses. Paul then asked Joe to give an update on the progress of phase one of the tiki-hut project to determine if the $9600 budgeted for 2006 would be spent this year. Joe said that he has encountered administrative hurdles that he believes will keep us from constructing the tiki huts this year. Joe said that when he inquired about building permits, he was told that the plans need an architects stamp. Joe said that to retain a FL.licensed architect or engineer would probably cost over $1000 as they would oversee and approve the building of any structures. Also to obtain a permit we need to have a survey of the property ( lots 203 & 204) and a warranty deed to confirm that we have a clear title to the land. Joe will contact Stephenson Surveyors to get an estimate of having an updated survey on both lots in order to secure a warrantee deed for the properties. Paul will investigate our records for the original deed. Joe said that he feels that we should have an updated survey and a warrantee deed recorded before any further betterments take place and that it will be a benefit to all in the future. Sara said that 2 separate descriptions (one for each lot involved) will be needed to combine both lots into one warrantee deed description, as she and Harold just had their lots combined into one. Paul then asked if the board still wanted to build the "tiki" huts or instead to go with the same layout but with concrete tables with umbrellas and benches on the four planned concrete pads. This option would provide the shaded seating areas for individual members and their families to use throughout the year and by connecting them with pathways create a park-like area suitable for Association gatherings. Harold Clarke asked why not put the tables on a single large concrete pad Paul asked Debbie Clark, who served on the landscaping committee to improve the pool area, to respond. Debbie said that the goal was to create an environmentally friendly area and still have a "parklike" atmosphere. Debbie said that less concrete would allow for better water absorption into the soil and that landscaping with less grass would mean less water usage and cost to the association. . Sara said she feels that members do not have a problem with improving the pool area, and she would like to have the separate concrete tables, benches and umbrellas. All Board members agreed. Joe made the motion to have the land surveyed and do what is necessary to obtain a warrantee deed and try to have it completed before the end of the year. Karen asked why we need a survey if we are not going to build anything on the land. Joe said that documents should be in order and recorded in the courthouse for us and also for future residents and then if a decision is made in the future to erect a clubhouse there will not be the problems that we have run into. Paul said that we need to know where our property lines are so no encroachments are made onto other properties when we do our landscaping. The motion being made, seconded and approved, Joe will proceed with contacting the surveyors Sara told Joe that he has done a great job researching this project and that all his work is greatly appreciated. Paul said that a discussion for "Proposed enhancements" for the pool area will be put on the agenda for the annual meeting to obtain member feedback. We will then discuss the different alternatives that we are considering at comparative costs. Karen volunteered to investigate the cost of concrete tables, benches and umbrellas. All estimates gathered will be presented at the annual meeting so that the membership can comment on the planned improvement project. The Board then discussed the implications for the proposed budget if the lower cost table/umbrella became the preferred alternative. Paul said that we can reduce the $9600 budgeted for betterments this year to $600 to cover the cost of the survey, warrantee deed and necessary prep work for the betterment project. This will increase our reserve carryover balance for 2006 to $18480. Keeping dues at $175 would give us $25725 income from 2007 dues, meaning we will have $44205 to work with next year. The budget for 2007 operating expenses is $20,490 leaving $23,715 available for funding reserves and betterments. Although more precise figures will be investigated, based on their prior research, Joe estimated that the 4 concrete pads would cost a total of about $2000 and Paul said that the table/bench/umbrella sets would be about $800 each for a total of $3200. Including the $6000 already budgeted for landscaping, the cost of new version of the betterment project would be an estimated $11,200 ($2000 + $3200+$6000). The funding of the betterment project at $11200 plus the $1000 of reserves budgeted for maintenance would mean that we would still have a budgeted reserve balance at the end of 2007 of $11,515 ($23,715 - $11,200 - $1000), which exceeds are $10,000 target for reserve carryover. Sara said that she thought members would be very appreciative if this could be done. She feels that people would use the area more and the whole community would benefit from the improvement. Paul made the motion to make the adjustments to the budget: $600.00 for betterments this year, $11200 for betterments in 2007 and to keep the dues at $175 for 2007. With no further discussion, the motion was carried. (The revised approved budget is attached). Paul said that we can use the same letter as last year informing members of dues, as there is no increase, and change the dates. Also if members pay using automatic pay system, please put the lot number on the check. Sara said that this is her last year serving on the board and she hopes that future boards will think of the people and get their opinion on whatever projects are considered. Homeowners do not want to feel dominated as it is their money. Even though the board members are elected by the homeowners and have the authority to proceed without a member vote, she feels that if all members were included in discussions it would make for a more friendly atmosphere. Nomination and ballot for BOD elections: Peggy reported that she has received three nominations with supporting background statements for the two vacant board positions. The nominees are Karen Joyce, Fred Black, and Debbie Clark. Nominations are now closed in accordance with the election procedures. Paul said that those members who do not attend the annual meeting and vote absentee, do not have the benefit of hearing any views of the candidates before casting their vote. Therefore, he proposed that the following three questions be answered by the candidates and their answers would be included along with their bios. 1. What is your view on how the Board has handled the pool area improvement projects 2. What is your view on how the Board has managed the water detention ponds 3. What is your view on how the Board has administered compliance with the C&Rs
By the candidates answering these questions, the voters will have a little more information about the candidates who they are going to vote for. We can then have a candidate discussion at the annual meeting only if the members in attendance want to do so. The motion was made and carried to add the questions and answers to the candidates’ bios and include in the mailing of ballots. 6. Status of C&Rs and alternatives for moving forward: Paul read a letter that he had prepared to the membership explaining the creation and planned use for a revised C&R document, which he distributed to the Board members. Hopefully this Board interpretation document will be a starting point for next year’s membership discussion of any changes to the provisions of the C&Rs that are believed to be needed. Paul said that these revised documents are easier to read and interpret than the original C&Rs. Now that the developer is out of the picture, the board has the authority to make any changes that the membership feels that are necessary. The revised documents will be put on our website and copies will be available at the annual meeting. After reading the letter, the Board agreed with the approach but wanted the letter to be simplified. (Paul agreed to revise the letter following the meeting. The revised letter, which was reviewed by the board members, is attached. 7. Architectural review committee (ARC) and C&R enforcement: Sara said that one letter was sent and the person has taken care of the issue. Paul said that there are people struggling with lawns due to the drought and watering restrictions. Under the circumstances, no letters should be issued for lawn maintenance. Karen asked for standards for lawns and Sara said that lawns have to be cut but watering cannot be enforced according to the C&Rs. Sara said that the grass cannot be longer than 6 inches . Paul asked if any homes required attention before the end of the year. Sara asked that Paul speak to a homeowner about weeds, and noted that he is trying to keep his lawn up to standards. Paul said that the lawn standards will be looked at when the C&Rs are reviewed next year. 8. Preparation for annual membership meeting: Paul distributed a proposed agenda for the annual meeting and asked that it be sent with the minutes. The proposed improvements to the pool area will be added to the agenda under Operations. Paul noted that Harold Clarke and others had indicated that they would like to see the bylaws amended related to the Board’s spending authority for betterments. Paul provided Harold a copy of the by-law provisions regarding how amendments must be approved. He explained that if a member wants an amendment voted on at the annual meeting, the amendment must be included in the annual meeting agenda. Peggy will need to have any proposed amendment by this Sunday November 19, so that she can incorporate it into the annual meeting materials that she must mail on November 20. A bylaw amendment has to be approved by two thirds vote of the membership and also by two thirds of the Board. Voting can be done in person at the meeting or by absentee vote or by proxy. Finally, Paul noted that the issue of the Board’s spending authority for betterments has already been made part of the agenda for discussion, even if the issue is not raised as a formal, by-law amendment. Paul said he will provide some light refreshments for the annual meeting using money in the Social budget. With no other items on the agenda, the meeting was adjourned at 9 PM. Respectfully submitted, Peggy Steele, Sec. boardmeetnov162006(l)PZPS
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