REVISED MAY 21, 2008

SALT POND HOMEOWNERS ASSOCIATION

BOARD OF DIRECTORS MEETING

MAY 16, 2008

The meeting was called to order by President Bill Kester at 2:05PM

Attendees:

• Board Members present: Bill Kester, Dick Crawford, Chuck Gularson, Don Praisner, Katherine Coulson, Ronnie Malone, Michael Headman, Jim Kennedy and Gerry Buckley
• Homeowners present: Karen Taylor, Carol Kester, Tom Thompson, Chuck Gates, Bob Buckley, Don Birtwell, Joan Birtwell, Josie Salovich, Loeda Stango, Tom Anfinson, William Loschman, Clayton Brown, Jim Beachboard, Gary Clipp, Michael Hill, Fred Chiccone, Ann Crawford, Bill Ferris, Lois Howlett and Wilbur Pearce
• Legum & Norman: Donna Hemphill

Michael H. made a motion to approve the minutes of the April meeting and Chuck G. seconded the motion. All approved.

Treasurer’s Report:

• In the Homeowners operating account there is $71,000; there is $375, 432 in CD’s. Two are at 4.4 % interest. The other two are at 3.75% and 3.44% interest. One of the CD’s for $95,000 matures on 7-24-08. This will be needed for operational purposes. There are two delinquent owners for the Golf Club special assessment for a total of $10,364. These two owners have been sent a delinquency letter warning them that if these special assessments are not paid shortly, their accounts could go into legal. There are also twelve owners who are delinquent in paying their annual assessments. At the present time, we can stop all owner privileges such as access to the pool and recreational facilities; however there are no financial ramifications for being delinquent in paying the assessment. Chuck G. stated that this is unfair and that we need to put “some teeth” into the consequences. A discussion ensued as to what these consequences could be. In addition to withholding the use of the recreational facilities for both homeowners and renters, there could be a fine and canceling other privileges such as not having the garbage picked up. Chuck G. stated that he would draft a financial penalty policy and there will be more discussion on this matter.

Legum & Norman report:

• Donna H. submitted to the Board three estimates from three pest control companies for inspection and treatment of termites in the community center. The estimate from Brasure’s for a termite inspection of the clubhouse and yearly maintenance was unanimously approved by the BOD. The inspection and treatment cost is $3,402.00 and yearly treatment is $340.00. A motion was made by Gerry B. that the BOD accept this contract and was seconded by Ronnie M.; all approved. Guyer Contracting has submitted a bid of $ 5,489.00 to power wash and paint the community center. Michael H. made a motion to accept this bid and Jim K. seconded the motion. The BOD approved.

Golf Club Report:

• Bill K. gave the report since Bruce De Forest was busy preparing for tomorrow’s grand opening. He stated that Bruce and the crew have done an amazing job cleaning the course after the storm. The course is in excellent condition and the flower beds with a concentration on perennials instead of the annuals are beautiful. Bill stated that the homeowners need to thank Bruce and the crew for a great job.

Homeowners Forum:

• Gary Clipp asked if the BOD had made a decision as to whether or not there could be a link to the blog site from the homeowner’s web site. The BOD had originally asked for 3 months to access the request, but the evaluation has not been completed. No action was taken.

Committee Reports:

• Architectural: While there was no official report, a discussion was held as to how we can impose fines and take away privileges of those homeowners who do not abide by the covenants. Jim K. stated that according to our By-laws and Covenants, the BOD has the ability to impose fines and restrictions. The BOD does not receive regular communication or information from this committee as to who has applied for building permits and when the construction is completed. As a result, some homes that have been completed were still being assessed as only a lot. Guidelines for renters were also discussed. Donna H. mentioned a number of communities impose a tax on those who rent their property. It was agreed that further study of this matter is necessary.
• Calendar: The cleaning and inspection of the outdoor pool furniture was moved from February to April. Also, in April, the schedule for the recreation attendants is for the outdoor pool is to be completed.
• Community Center Maintenance: no report
• Community Center Rental: up to date
• Communications: newsletter will be published in July and Gary C. continues to work on updating the e-mails list. The newsletter will be e-mailed to the majority of homeowners instead of via regular mail.
• Engineering: The “Children at Play” signs have been installed. A suggestion was made that the 4-way stop signs not be installed at Bethany Loop and Bethany Loop until after the summer season. The BOD agreed that it would be better if they were installed as soon as possible.
• Finance: Chuck G. made a motion that the BOD accepts the investment policy that he gave to Board members for review. It is meant to be a guideline for all future investments. The BOD approved this unanimously.
• Golf Club: Dick C. stated that he has suspended the regular monthly meeting of the committee and is participating in the monthly marketing meeting. There are eight men who have volunteered for the ranger program. Next Tuesday, there will be a training program for them and they will be given special Salt Pond shirts. Ronnie M. reported on the “Grand Opening” celebration that will be held tomorrow. Seventy-three members and forty-four non-members have signed up to play golf. There will be an additional 35 for lunch. The golf times are at 8:00AM and 1:00PM. The ribbon cutting ceremony will be a 12:15 PM. We now have one hundred and two members of the club-a number below the projected goal. Twenty members from last year have not renewed their membership. They will be contacted. There will be a mailing to additional communities in an effort to increase membership.
• Handy Man: no report
• Insurance: Bill K. reported that Dick Malone continues to be actively involved and we have increased coverage under the Umbrella Insurance policy. Additional insurance has been purchased to cover $1 million for employee theft and a combined $10 million umbrella policy. We have increased coverage and Dick M.’s efforts have saved the Association about $15,000 over our previous carrier.
• Landscaping: Loeda Stango reported that most of the flowers have been planted by the volunteers at a great financial saving. She also mentioned that several people have approached her regarding memorial trees. She asked the BOD what their thoughts were on this issue. Members thought it was a good idea and Gary Clipp will post a message on the web site to see if there is community interest.
• Legal: Fred Chiccone, representing Skipjack Village, expressed his concern over the amount of damage that was done to their community by errant golf balls. There was in excess of $4000.00 in damage to windows, screens and siding as a result of the placement of the beige tee box on the Eighteenth hole. He stated that unless the problem is addressed that Skipjack would consider initiating a lawsuit against the Association. He also stated that their research has shown that the golf course is not immune in spite of the wording in the covenants. The BOD will look into resolving this situation. Jim K. explained that the legal establishment of the Golf Club Company, a for-profit corporation, is wholey owned by the Association and that this issue would be reviewed.
• Newsletter: Will be emailed in July to the majority of homeowners and mailed to those who do not have email or who have requested a hard copy.
• Planning and Zoning: Chuck Young expressed concern over the number of dump trucks hauling the dirt from the Indian River Bridge using Fred Hudson. Once the summer season starts, there is increased bike and pedestrian traffic along this route. Gerald Hocker will be apprised of this situation.
• Ponds & Wetlands: Chris Brown reported that the easement markers have been purchased and it is the responsibility of SPA to install them. There has been no movement in this direction and Chris will call Ken Simpler’s office next week. Fifty-seven homeowners and the Village presidents whose properties are on the non-golf course ponds have received a letter concerning a June 21^st meeting in the community center. Todd Frichman of Envirotech will be at that meeting to inform the home owners of the rules and regulations of DNREC that affects their property and the ramifications of violations. Chris also shared a letter he received from Envirotech concerning the wetland area adjacent to McCoy’s Way and Fred Hudson. The growth of invasive species prohibits proper drainage and will have a negative impact on adjacent property. This area cannot be treated until late summer or early fall at a cost of $3,013.00. The Board agreed to table this until later in the season. Michael H. asked if it was permissible to fish in the ponds. Chris said this issue was not addressed in the conservation easement. The Board will review this topic.
• Recreation: Ann Crawford shared with the BOD an incident where a homeowner is insisting on adjusting the temperature in the exercise room. It was the unanimous decision of the BOD that the thermostat box would be kept locked and only the attendants should adjust the temperature. The Committee also suggested that the BOD consider a “Welcome to Summer” party sometime between June 28^th and July 12^th. It was agreed that we would close the pool to everyone but homeowners on July 12^th at 4:00PM and provide hot dogs, soda and chips. The Board authorized up to $500.00 for the event. Thirteen attendants were given a CPR course and defibrillator training and are now certified. The tennis clinic signs were distributed and placed in the pro shop and at the attendant’s desk.
• Salt Pond Plaza: Harris Teeter has expressed a willingness to sit down with the committee and discuss the construction plans. No date for the meeting has been set.
• Transportation: The roads came through the winter in fairly good condition Chuck Gates reported. The committee will perform another inspection and prioritize what needs attention. Donna H. will obtain bids and the BOD will go back and determine what we can afford.
• Website: Gary C. stated it is up to date and that there is plenty of capacity left. There now are a total of 453 homes in the email file

Old Business:

• Bill K. reported that the Golf Club Board is interviewing a company to run the snack bar and they will provide us with a proposal.
• Proxy letters and guest passes have been sent to the homeowners.
• The application for the liquor license is in progress. The Golf Club Board has had a criminal background check completed for the application.
• Bill spoke of the proposal from the developer of Bethany Woods regarding the use of our recreational facilities by subscribers from his 19 home development. The developer is proposing a $5,000 per home initiation fee plus a yearly assessment of $500.00 to maintain the membership. It would not include renters, but it would include guests. The developer guarantees 10 subscribers within 18 months with the remaining 9 being voluntary. Concerns were expressed about the impact on the outdoor pool, especially on busy weekends. All legal papers in regard to this proposal will be drawn up by the Bethany Woods attorney. The proposal will be presented at the June 7^th Annual Meeting.
• Concerns were raised about the turnaround time for mailings. The recent mailing from the golf course offering discount coupons was two weeks late. It was decided that there needs to be a better system of approving these mailings.

New Business:

· At the present time, Mainsail Village is the only village that has been deeded over from SPA. Presidents of the other villages were referred to the President of Mainsail Village for information.

· A proposal from the Bethany Beach Police Department to provide protection to the Salt Pond has been rescinded.

· There was a request from a homeowner to have more “friendly” signs at the entrance to the community. It was decided that we will wait until the construction of the Salt Pond Plaza and Bethany Woods is complete to review this suggestion.

· The owner of the home on McCoy’s Way has requested that the golf club clear the lot next to his home to enhance his view of the green. In the past (2002), the developer had cleared this piece of property; but after a disagreement with the owner, he stopped clearing the property. Bruce DeForest was asked what would be involved and he stated that it would take his crew a minimum of three days to clear the land. Several Board members will walk the property, at the permission of the homeowner, and report back to the BOD.

· Chuck G. spoke about the Reserve Study. He explained that the BOD and the Association need to have a financial picture of our needs over the next twenty-five years. By the year 2011, we will need a minimum of one half million dollars to repave our roads. The Association has the choice of raising the annual assessment by a larger percentage or having a special assessment of approximately $700 and $900 in 2011/2012.

· Bill K. made the following motion: “Resolved that the SPHA Board of Directors will recommend that section 4 of the SPHA Declaration of Covenants, Conditions and Restrictions be amended to require that any future sale or offer for the sale, either in whole or in part of the golf course may be completed only after a favorable vote of two-thirds (2/3rds) of Association members. In the interim, the SPHA BOD will act as if this provision has been officially inserted in the covenants” There was one negative vote by Don Praisner to this proposal. This action will be presented to the membership at the annual meeting

Meeting adjourned at 4:55PM. Next Board meeting: June 20^th at 2:00PM

Gerry Buckley, Secretary

May 19, 2008