March 4, 2010 Board Meeting Minutes

PEHOA Board Meeting

March 4, 2010

 

Members present were Grant Sparks, President; Scott Losito, Vice President; Lydia Hellams, Treasurer; Roger Brown, Member-at-Large; Alice Aurilio, Secretary; and Whip Wilson, Earnie Combs and Duane Jastremski, PEHOA members.

 

• Grant called the meeting to order at 7:00 P.M.  Grant stated that the Board will discuss any issue with the members, but ultimately it is the Board making the final decision.  (Note- this does not include any matter that would require a prescribed percentage of membership approval as stated in the restrictive covenants for PEHOA.)

·                    Grant received an e-mail from John and Linda Gott dated March 2, 2010.  They would be unable to attend the Board meeting, but wanted their opinions known concerning the proposed 2010 PEHOA budget and other matters.  It was not read into the minutes, but was gone over and each item addressed.  John prefaced his e-mail with Grant, sorry I will not be able to attend the Board Meeting Thursday evening.  Prior obligations prevent my attendance.  Linda and I have read over the agenda and have written down our thoughts and concerns.  We respectfully request that these be read and written into the minutes.  Thanks John.  Grant replied I wish you could attend also.  I would ask that you consider the possibility of running for office, member at large, vice president or whatever you think would fit.  You need to walk a mile in our shoes.  Mainly the board is what it's about, the titles are just titles, we need people who will work to make it the best for all.  About the Blog, we were asked to provide info via e-mail/website, this was a cheap way to satisfy that request.  Some won't give an e-mail address.  That is what this board is about, having discussion and comments from everyone, not just a few.  The board makes the decisions on all matters less a change in covenants, dues increase, or using land as collateral and of course voting for the board.  The other decisions are for the board to act on.  As far as street lights, I read your comment, but we (the board) feel it's a safety and security issue.  Unless we get one heck of a lot of calls, the board has made the decision, but will address it again.   No reply was received.   The following is the e-mail submitted by the Gotts and it has been typed as it was submitted:

Comments of John and Linda Gott submitted to the PEHOA Board Meeting 3/4/10

Budget (draft) 2010

We find the purposed budget for May 2010-April 2011 totally unacceptable.  The draft budget represents almost double last year's expenditures.  It seems disingenuous as the total draft budget approximates the exact amount of dues levied (50 lots x $200).

1.      Street lights are NOT necessary in our opinion and those wishing personal street lights near their homes should incur the cost and not pass this expense onto ALL homeowners.  This could save us $1,620 annually and think of the amount of energy it could save…think Green!

2.      Budgeted attorney fees should not be more than last year's expenses.  If so, please explain why?

3.      Signs… (what signs) where is there a need?

4.      Covenants $60… for what?  Why is this a separate line item. Is it an annual expense?  We should consider having an "Administrative Expense" for Postage & Mailing, Meetings, Signs, Covenants, etc..

5.      Landscaping $500… we may want to consider placing this under Capital Improvements; identifying the entrance to Plantation Estates, the Common Area, and the Road as those areas covered under Capital Improvements.  Additionally, how much of the 09/10 budget of $750 was spent on landscaping?  Unless the Board determines there is an actually need (we don't currently see one) for landscaping and/or has specific plans for landscaping, we should not have to put any money into the budget for an area that does not need any improvement.

6.      Capital Improvements

a.      What specific plans or proposals or issue(s) is this $4,824 earmarked for? If there are no such plans then there should be no expected expenses coming under Capital Improvements.

7.      There is no money requested in the budget for the annual audit expense?  Are we audited yearly?

(MONEY IN AN ACCOUNT IS NOT THE SAME AS MONEY IN A BUDGET)

 

We would like to see a more genuine budget that more closely approximates actually needed expenses.

Erwin, Simpson, and Stroud…………..$875

Administrative Cost

Postage/Printing……………………………..400

Meetings…………………………………………150

Signs…………………………………………………80*not included in total

Covenants…………………………………………60*not included in total

Officers Insurance……………………………825

Liability Insurance………………………      291

                                             Total     $2, 541

 

THAT'S A FAR CRY FROM THE $10,000 DRAFT!  This would represent a considerable savings!

 

Under "OTHER" business we would like to address the PEHOA blog.  Specifically, should we be placing the business of a private organization onto the public domain?  We don't think we should be placing the "minutes" of our meetings onto the Blog.  Examples, in the Aug 12, 2009 posted minutes, there is recorded a "private" conversation that should never have been part of the minutes and certainly not made public.  In the Sept 30, 2009 minutes we have listed Duane and Bobbie Jastremski as the complainant concerning the construction of Mr. Huston's outbuildings.  We need to be more careful in expressing personal animosities within our minutes, a careful review of our posted minutes on the blog will reveal how flagrant we are at this.

We would like the see the Board take a serious look at this issue.  We are sorry that prior obligations prevent our attendance and request that our comments be read into the minutes.

John and Linda Gott

 

• On the matter or removing the streetlights, the Board has made the decision to keep the streetlights.  If members are in favor of removing them, get a petition together with signatures of members in agreement and submit it to the Board for consideration.  Every member has a voice.
• Scott stated when road maintenance is at issue all members should be involved.  He thanked Whip and Earnie for their participation.  Grant stated that John and Linda Gott and Angie Keel were participating via e-mail.
• Grant said the proposed budget distributed so members could discuss it prior to the annual meeting in May.  The annual meeting needs a quorum of 40% of the members to be present either in person or by proxy for business to be conducted.  The business conducted will be the election of officers for 2010-2011.  Duane addressed the difference between a proxy and an absentee vote.  The proxy allows the person you give your proxy to, to vote as they themselves would vote or you tell the person how and what you want them to vote.  The absentee vote is a yea or nay vote.  Grant stated that there is no vote on the budget.  The budget is ratified unless an overwhelming percentage of members object.  A quorum is not required for ratification.  Roger added that when members elect officers they are allowing them to have the authority to make decisions.  Lydia addressed the Gotts' concerns over the budget by saying a budget is income versus expenses.  Whatever excess monies PEHOA has will go into Capital Improvement and now Capital Improvement is Plantation Drive.  Someone made a comment about doing away with the lawyer's services.  Grant stated I hear you, but one day someone will sue.  Scott said that you hoped at some time we would learn from these situations and avoid the costs of a lawyer.  Grant added that maybe seeing figures in black and white would help members see how expensive things can become when a lawyer has to become involved.  Roger stated that on the issue of Officers' Insurance from BB&T that company is a sole proprietor and their rates are not competitive.  Roger said he would check to see if we might be able to get a better rate.
• Lydia addressed the Gotts' concern about $500 for landscaping.  No money has been spent yet, but dead plants need to be replaced at the entrance and the accompanying signs will soon need to be refurbished or replaced.
• Lydia addressed the Gotts' concern about $60 for the covenants.  This money will be used if the covenants are amended.
• Earnie voiced a concern for speeders on Plantation Drive.  Scott countered that if you think it is bad now you should have seen it before the installation of the speed bumps.
• Grant added to the issue of the streetlights stating Jones-Onslow could put shields around the lights so the light will be more directed toward the ground.  Duane asked if motion detectors could be put on the streetlights.  The cost of this would probably be prohibitive.
• Whip referred back to the proposed budget and said there was no way 40% of members would not agree to pass it.  (Note- There is no percentage by which the budget is ratified.  As stated earlier, unless an overwhelming percentage of members object it will be ratified.)
• Lydia reiterated that the Gotts' concern about Capital Improvement is Plantation Drive.  The road fund is $30,000.
• Lydia addressed the Gotts' concern about the auditing of PEHOA finances.  She said an audit was conducted last year by Gwindy Stewart, who is a member of PEHOA and therefore; does not charge for her services.  As reported at the May 2009 annual meeting, there were no problems with our financial records.  In an effort to provide more transparency, the time and date of this year's audit will be announced and interested members are encouraged to attend.
• Grant asked if we had addressed all questions concerning the budget.  Capital Improvement essentially is only Plantation Drive.  If we go over the budgeted fee for the lawyer, we will have to tap into other areas to pay the expenses.  The budget is only a projection, as it is for individuals.
• Grant stated that the Board wants to go out for bids and patch Plantation Drive using the $30,000 referred to earlier.  The seal put on last year will hold about another year.  Grant brought three street supervisors from Jacksonville out to look at the road.  They said within 12-18 months the base would fail and we would have major problems on our hands.  The Board will mark the worst areas and have as much patched as possible.  Grant noted that there are four patch areas on the road and they are still in decent shape.  The remainder of the road has alligator cracking.  Roger asked Grant how much it cost to bring the street supervisors out to look at the road and Grant replied only lunch.  The board will be getting estimates from Jacksonville Paving and Grading, Onslow Paving and Elijah Morton.
• Whip and Earnie asked if an assessment of $300 per lot owner for two years could be used and added to what is in Capital Improvement and use this to resurface the entire road.  Alice asked how they thought 75% of members would agree to this when 75% of members at the May 2009 annual meeting could not agree to use the Common Area as collateral on a loan to get the road resurfaced and this process would not have cost them anything.  Duane added the road needs to be protected.  Roger stated that the collateral value of the Common Area has probably decreased.  Scott added the road issue is more important to members who live here than those that do not.  Roger added he thought resurfacing in front of a vacant lot was a problem because when building begins the heavy equipment will do damage to the road.  He continued that when someone wants to sell their home, we have no amenities and a road in poor shape, it could be difficult.  Whip added we need to get the road taken care of and again raised the idea of $300 per lot owner for two years.  Alice stated she did not want to gamble on getting 75% of members to agree to this assessment at the expense of the road condition getting worse and then coming apart.  At this time, it is holding, but it will not hold forever.  Whip said he would ask members that he visits with how they would feel about this assessment and would get back to Grant with the results in a week.  Earnie interjected it ain't gonna do no good.  Scott thanked Whip for volunteering to get members' opinions.  To emphasize his point about heavy equipment damaging the road, Roger said North Plantation Lane used to be paved.  In 1995, during the construction of a home on that road the heavy equipment damaged it so badly that the asphalt had to be removed.  Grant ended the road discussion by stating, unless the Board is convinced otherwise we will go ahead and get estimates for patching.
• The Board set Saturday, May 1, 2010, at noon for the annual meeting of PEHOA with a rain date of Sunday May 2, 2010.  A potluck luncheon will precede the meeting with the Board furnishing meat, cutlery, napkins and condiments.  Members will be asked to bring a dish to share, a drink and a chair.  The meeting notice, agenda and proxy will be sent prior to the meeting.
• Potential candidates for 2010-2011 board members were discussed and the following members are interested in these positions:  Duane Jastremski, President; Grant Sparks, Vice President; Lydia Hellams, Treasurer; and Vicki Brown, Secretary.  Earnie said that John Gott was interested in serving on the Board, but did not know for what office he was interested in running.  Other members who are not listed, but would be interested in serving on the Board to share their time and talent are welcome to announce their intentions at the annual meeting in May.
• The Board addressed the Gotts' concern of putting minutes from meetings on the PEHOA blog.  The Board will continue the practice of posting on the blog, but will not use names for specific issues. This will hopefully solve the problem of using member's names, when a complaint is brought to the Board. The name of the complainant will be kept confidential.
• Alice stated Redden Grammer and Vickie O'Brien are currently delinquent for the payment of PEHOA 2010 dues.  With the addition of interest, each now owes $209.14 as of April 1, 2010.  Certified letters will be mailed and each will have ten (10) days from receipt of the letter to make payment or to arrange to make the payment.  If payment is not received, the Board will consider court action and this will involve our lawyer.
• Lydia stated PEHOA received a credit from Jones-Onslow Electric.  She added that she would file PEHOA's tax return March 5, 2010.
• Grant adjourned the meeting at 8:10 P.M.

 

Respectfully submitted,

 

Alice C. Aurilio, PEHOA Secretary#

PEHOA Secretary