SALT POND HOMEOWNERS ASSOCIATION

BOARD OF DIRECTORS MEETING

October 17, 2008

(Revised November 13, 2008)

Attendees:

• Board Members present: Jim Beachboard, Gerry Buckley, Gary Clipp, Katherine Coulson, Dick Crawford, Chuck Gularson, Jim Kennedy, and Bill Kester.
• Homeowners present: Bob Adams, Marilyn Adams, Wanda Beachboard, Bette Rae Bevan, Don Bevan, Bobbi Brown, Clayton Brown, Bob Buckley, Fred Chiccone, Ann Crawford, Phil Fleming, Mary Ann Flickinger, Chuck Gates, Elaine Gates, Pat Hannigan, Carol Kester, Al Preziosi, Josie Salovich, Jan Shaeffer, Al Stango, Loeda Stango, June Thompson, Mary Valdes, and Chuck Young
• Legum & Norman: Donna Hemphill

CALL TO ORDER

The meeting was called to order by President Gerry B. at 2:04 PM 

MINUTES APPROVAL

Jim K. made a motion to approve the minutes of the September meeting and Katherine C. seconded the motion.

BOARD ANNOUNCEMENT

President Gerry B. welcomed our newest Board Member, Jim Beachboard.  (NOTE: On motion duly made and seconded during a special Executive Session, the Board unanimously approved the appointment of Jim Beachboard as the replacement filling the vacant Board position.)   Jim was selected from eight SPHA applicants.  Gerry encouraged all of the applicants to seek a Board seat this coming June.

TREASURER’S REPORT

Chuck G. stated we had over $11,000 in interest income year to date.  We still have $11,229 in delinquent assessments. Of that, $6,000 is due to one unpaid golf course assessment. We are about $23,000 over budget.  We are still looking to be a couple thousand dollars under budget by year end.  A lot of expenses were incurred last month such as asphalt work, club house maintenance, etc.

LEGUM & NORMAN REPORT (Donna H.):

• Landscaping bids ranging $42,000 - $71,000 were received from Sposato, Moore, and Lawnworks.
• George West continues to do extensive repair work to lighting issues.
• Exercise equipment maintenance contractor, Leisure Fitness, has gone Chapter 7 and L&N is looking for a replacement.
• Several homeowner correspondences were noted regarding delinquencies, architectural, and covenant violations.
• One correspondence was regarding a signage violation. Gerry B. stated 1^st Amendment rights provide for freedom of speech and Federal law says you may have signs. Political signs may be placed on lawns.
• Several owners donated $670 for Memorial trees.
• Delinquencies include 5 owners owing $4,171, plus one outstanding golf course delinquency of $5,599.
• Architectural Control account has a balance of $6,652.

HOMEOWNERS’ FORUM

• Concern was voiced concerning a light on the flag at night. A spotlight is planned to be installed in near future.

COMMITTEE REPORTS:

· Architectural Control --- Committee Chair: Donna Villani --- Board Liaison: Jim Kennedy

o Revised standards are in Board members hands and should be discussed at the next Board meeting.

o Architectural Review Committee (ARC) committee has been asked to review the new standards.

o Jim K. will send Donna V. comments to the Board members.

o Fees, Fines, and Penalties need to be included in the new standards.

§ Refundable fee should not be returned until landscaping and full compliance with architectural standards has been satisfied.

§ Non-refundable “Impact Fee” should perhaps be included to cover builder/contractor damage to roads, etc.

· Calendar --- Committee Chair: Katherine Coulson --- Board Liaison: Same

o Publish Newsletter

o Review Envirotech Contract

o Fire Extinguisher and smoke alarm checks, filter checks, etc

o Katherine C. suggested perhaps the calendar should be called a handbook 

· Club House Maintenance --- Committee Chair: Dick Crawford --- Board Liaison: Same

o The Community Center will now be identified as the Community Center Complex to include:

§ Fitness Center.

§ Club House.

o Mary Davis is responsible for all activities and Dick C. is responsible for operations and maintenance.

o Mary D., Dawn Smith, Judy Naughton, and Lally Thomas are serving on a committee to look at the future décor and look of the Complex.

o Painting of walls and shuffle board will soon be done as well as replacement of concrete slabs around the mailroom. 

· Club House Rentals --- Committee Chair: Mary Davis --- Board Liaison: Bill Kester

o Rentals were down.

o Suggestion was made to create a web page for the marketing of the Club House on the SPHA and Golf Club websites.

o Bill K. reported Diane Turner (Luna Tuna and Birdie’s) obtains a lot of business via her website.    

· Communications --- Committee Chair: Gary Clipp --- Board Liaison: Same

o Gary C. reported communications activities were quiet with no necessary broadcasts required.

o Newsletter release was being delayed until new Board member was announced and will be delivered by the end of the month.

· Finance --- Committee Chair: Chuck Gularson --- Board Liaison: Same

o Chuck G. is waiting on feedback from Board members on 2009 budget. Members are asked for input so it can be adopted at the next meeting.

o Chuck is working on a Reserve Study for next 25 years to hopefully present at November meeting.

o Jim K. applauded the job Chuck has been doing with the budgeting and finance process.

· Golf Club --- Committee Chair: Bill Kester --- Board Liaison: Same

o Michael Headman resigned as an officer of the Golf Course Board of Directors.  (NOTE: On motion duly made and seconded during a special Executive Session, the Board unanimously approved the appointment of Max Sewald to the position of Vice President of The Salt Pond Golf Course Operations, Inc.)

o A paved “wash pad” will be laid for washing equipment.

o Bunker work and tree trimming will soon commence.

o New well needs to be created where sufficient power for a pump exists.

o Clean-up around Hole 16 will take place at homeowner’s expense.

o Net will be erected to protect Skipjack homes.

o Snack shop and Learning Center will be painted this month.

o Hole 14 steps to the Ladies tee have been carpeted to prevent slipping.

o Cart paths are being examined as to what can be done regarding root damage.

o New lines will be painted at golf cart intersections to make them more obvious.

o Gary C. asked about installing a stop sign coming out of golf course parking lot.

o Junior Tournament was planned but no interest was shown, but one will be held next year.

o Finances:

§ August was the best month the course has EVER had with over $160,000 income.

§ YTD revenue is way ahead of budget ($702,779), in spite of a slow September ($54,000).

§ YTD net income is $102,000; with depreciation added back, it is $159,000 positive cash flow.

§ $694,000 is all that is still owed on golf course purchase.

o  Snack Shack status:

§ Bill K. stated final meeting should be next Tuesday and everything will be hashed out.

§ Chuck G. hopes for a break-even year.

§ From a marketing and quality of food standpoint, it was a phenomenal year.

o New fee schedule has been put in place to encourage locals to play more.

· Insurance --- Committee Chair: Dick Malone --- Board Liaison: Chuck Gularson

o No changes to report for SPHA. 

· Landscaping --- Committee Chair: Loeda Stango --- Board Liaison: Gerry Buckley

o Three bids for landscaping as described above.

o Lawnworks professionalism throughout 2008 was acknowledged by Loeda and others.

o Chuck G. moved that we accept the bid of Lawnworks as our landscaper for 2009, Bill K. seconded the motion, and the motion passed unanimously. 

· Legal --- Committee Chair: Jim Kennedy --- Board Liaison: Same

O Bill received from attorney for work YTD through September: Golf Course - $1,295; SPHA – $3,493

o Golf Course Closing – survey requirements are generating legal fees which will be deducted from last payment to Salt Pond Associates.

o Still one homeowner in arrears for $6,099 and has been sent to collection.

o Policy for fines and/or penalties will be adopted by the Board for non-compliance with Covenants and Architectural Standards. 

· Newsletter --- Committee Chair: Gary Clipp --- Board Liaison: Same

o Newsletter out by end of month – Please get last minute items in now. 

· Planning & Zoning --- Committee Chair: John Gilsenan --- Board Liaison: Jim Kennedy

o No report.

· Ponds & Wetlands --- Committee Chair: Chris Brown --- Board Liaison: Michael Headman

o Chris Brown has submitted all Envirotech proposals with recommendation.

o Need more info from Envirotech regarding contract for January, 2009.

o Homeowners have embraced the Conservation Easement (CE) requirements and are working with the committee and Envirotech to rid Phragmites.

o DNREC and SPA agents are non-responsive to requests to get monuments installed to clearly identify CE areas and boundaries.

o Envirotech will assist in cleaning up Salt Pond Beach area to get ready for kayak storage racks. 

· Recreation --- Committee Chair: Bill Loschman --- Board Liaison: Gerry Buckley

o Jan S. reported 58 responses to inquiry to kayak owners. 38 wanted 1 spot, 18 wanted 2 spots, and 4 people wanted 3 spots.

o Recreation Committee proposes an annual $20 registration/storage fee, allowing one per SPHA member.

o Dick C. motioned we accept the Committee proposal for kayak registration and storage fee, Jim K. seconded the motion, and the motion passed unanimously.

o Current tenant guest pass fees are $2/day; other areas charge $5-7/day.

o Recreation Committee proposes raising Guest passes to $80 each, which results in $4 per day per guest.

o Jim K. motioned we accept the Committee’s proposal to raise the cost of the Guest passes to $80; Dick C. seconded the motion, and passed unanimously.

o Recreation Committee recommends having the indoor pool deck cleaned and caulked the second week of January.

o Jan S. stated the windscreens for the tennis courts will cost $1700 which is already in the 2008 budget.

o Envirotech will assist in cleaning up Salt Pond Beach area to get ready for kayak storage racks. 

· Salt Pond Plaza --- Committee Chair: Cheryl Wisbrock --- Board Liaison: Michael Headman

o Bill K. reported an update in Michael H. absence.

o Most discussions for last two weeks have been between attorneys and developer and Salt Pond Plaza Committee.

o Discussions mostly surround the easements for storm water management from the project onto Salt Pond property.

o Currently six items are still being negotiated:

§ Arbitration details.

§ Fees incurred by SPHA for project (attorney, copies, environmental studies, etc.)

§ Storm water drainage pattern through our golf course to confirm current paving will not change, which could create additional run-off.

§ Irrigation for landscaping – Developer will install, but who will pay for use.

§ SPHA wants to be sure Harris Teeter will not change their minds.

(Note: Please reference the Salt Pond Plaza Update on the SPHA Website (www.sphamembers.org) for the latest information.)

· Transportation --- Committee Chair: Chuck Gates --- Board Liaison: Gerry Buckley

o Road patching is done!

o Some homeowners expressed concern that speed bumps were being installed – this was not the case. 

· Websites --- Committee Chair: Gary Clipp --- Board Liaison: Same

o Website background has been enhanced and updated.

o Response from Villages to participate in the website has been slow.

UNFINISHED BUSINESS:

• New Board Member
• Jim Beachboard was welcomed at the beginning of the meeting.

• Management Contract
• Chuck Young ran a committee looking into and soliciting bids from management company vendors.
• Solicited complete bids from 4 major companies: Legum & Norman, Resort Quest, CPR, and Guardian which ranged from $49,000 - $64,000
• Solicited bids from same companies for management only (i.e., no financial management) which ranged from $27,600 - $50,000.
• SPHA Treasurer productivity has been impacted by location of L&N financial folks.
• Since management only bids were not reduced that much, the committee decided to pursue self-managing.
• Wendy Parker, who does Salt Pond Golf Club finances, was interested in taking on the same duties for SPHA which had far less requirements.
• Gerry B. contacted Mary Davis regarding taking on the management responsibilities currently handled by L&N.
• By self-managing, it was determined the SPHA could potentially save over $20,000 yearly.

(Note: The Board voted unanimously in Executive Session at the end of the last Board meeting to self manage and re-evaluate after one year)

• Letter to County for Roads
• Letter was sent requesting information on participating in the road program.

• Flag Pole
• The US Flag and the Salt Pond Flag were raised in a special ceremony prior to the start of the meeting.
• SPHA and the Golf Club shared the cost.
• Frank Cappella obtained a free flag pole for us, and he and Al Stango installed it.

• Proposal for schedule of fines re violation of covenants
• Salt Pond has around 60 units that are rental. Some are year round, some are seasonal, and some are by the week.
• Rental fees range from $1200 to $3000 per week.
• Bethany Beach charges a 6% tax, Ocean View charges $50 plus 3%.
• SPHA could generate significant revenue following the Ocean View policy.
• Lengthy discussion ensued to debate the options, procedures, etc.
• Jim Beachboard has been tasked with following up on this opportunity to be discussed at the November meeting and implemented in December.

NEW BUSINESS:

· Official Letterhead

o Gary C. has designed a new letterhead that will be used.

· Fall Newsletter

o Previously covered.

· Review Envirotech Contract

o Previously covered.

· Check Smoke Detectors and Fire Extinguisher

o Dick C. will have Dave Flickinger check.

· Replace Smoke Detector Batteries

o Dick C. will have Dave Flickinger check.

· Change Air Conditioner Filters

o Dick C. will have Dave Flickinger check.

ADJOURNMENT

Meeting was adjourned at 4:43 P.M.

NEXT MEETING

Next Board meeting: November 21^st at 2:00 P.M.

Respectfully submitted by Gary Clipp, Secretary

November 6, 2008