SALT POND HOMEOWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
November 21, 2008
(Revised December 9, 2008)
Attendees:
CALL TO ORDER
The meeting was called to order by President Gerry B. at 2:00 PM
MINUTES APPROVAL
Bill K. made a motion to approve the minutes of the October meeting and Michael H. seconded the motion.
TREASURER’S REPORT
Chuck G. we still have $10,976 in delinquent assessments. Of that, approximately $6,000 is due to one unpaid golf course assessment and legal actions against the member have been initiated. Interest income for last month was $533, and year to date $11,890. YTD total income is $527,481. We had budgeted about $4,000 more. Operating expenses were budgeted at roughly $415,000 YTD, and actual expenses are $423,000 YTD, or $8,000 over. All committees have been asked to cease discretionary spending for the remainder of the year.
Handouts were dispersed to BOD and homeowners of the 2008 Actual Expenses and the 2009 Budget. Discussion ensued on 2008 projected actual expenses which showed the SPHA could be within $51 of budget, if discretionary spending is controlled through the rest of 2008. There were some unexpected one-time costs that were over budget such as landscaping. The Finance Committee re-allocated 2008 budgets by expense category so that these expense categories over budget could be covered by those under budget to achieve the projected $51 year-end positive balance.
LEGUM & NORMAN REPORT (Donna H.):
HOMEOWNERS’ FORUM
No concerns.
COMMITTEE REPORTS:
· Architectural Control --- Committee Chair: Donna Villani --- Board Liaison: Jim Beachboard
o Jim K reviewed page by page the new Architectural Review Standards as revised by legal counsel.
o The board needs to develop a plan to disseminate the Standards to new homeowners.
o Chuck G. moved to accept the revised Architecture Review Standards when completed with revisions agreed upon during discussion, and reviewed by all members and agreed to by email. Jim B. seconded. Motion passed unanimously.
· Calendar --- Committee Chair: Katherine Coulson --- Board Liaison: Same
o Katherine C. stated all necessary items on the SPHA calendar have been addressed
· Club House Maintenance --- Committee Chair: Dick Crawford --- Board Liaison: Same
o Slab work around Mailroom and Recreation Facility entrances and walkway to outdoor pool has been completed.
o Painter still has some touch up work to do, as well as railings, the snack bar, and the learning center.
o SPHA Management Office has been painted and furniture is installed. Computer will soon be installed.
· Club House Rentals --- Committee Chair: Mary Davis --- Board Liaison: Bill Kester
o Mary Davis has asked that the board look at changing the rate structure for renting the Community Center..
· Communications --- Committee Chair: Gary Clipp --- Board Liaison: Same
o Gary C. reported only one broadcast went out this month for the Holiday Party.
o Future broadcasts regarding Bethany Woods work on McCoy’s way will be necessary as required.
· Finance --- Committee Chair: Chuck Gularson --- Board Liaison: Same
o PNC Accounts are being set up for new SPHA Management office.
o Bill K. motioned we accept the PNC Investments –Certificate and Corporate Resolutions as presented, Jim K. seconded the motion, and the motion passed unanimously.
o The Resolution gives Gerry B. and Chuck G. the authority to transact business on behalf of the SPHA.
PKS has given us bid for next year’s audit for $8,000 ($4,000 to SPHA and $4,000 to Golf Club). Statements will be for the SPHA and the Golf Course and there will be a consolidated statement for the two organizations for the SPHA.
· Golf Club --- Committee Chair: Bill Kester --- Board Liaison: Same
o Clean-up around Hole 16 of common property is taking place at homeowner’s expense.
o Signs will soon be going up on the golf cart paths.
o Envirotech has been asked to submit proposal for pond on 18th hole. All others will be maintained by Golf Club.
o New smoke detectors are being installed in pro shop, snack bar, and learning center.
o Replacement of porta-potty on number 14 with a more modern, better looking model is being pursued.
o Protective net for Skipjack will soon be installed.
o New equipment will be required for next year.
o More tournaments will be scheduled next year.
o Snack Shack meeting with new caterer for next year will take place in December.
o Working on a contact with Pepsi or Coke for next year.
o Christmas sale will soon be put on Internet.
o 2008 Snack Bar:
§ Final meeting was not very successful.
§ Diane and Luna Tuna delivered all that was asked for in terms of food and service.
§ Golf Club ended up losing $2,000
§ We could not come to terms for next year.
§ There are unsubstantiated rumors in the community that are not true.
§ The opportunity just did not work out from a revenue standpoint for Luna Tuna or SPHA.
o Finances:
§ $535,000 cash in the bank in CDs and $31,472 in the checking account.
§ YTD through October revenue is $766,000 with expenses at $705,000. Cash flow is still a positive $125,000.
§ 2009 Budget should be finished by mid December.
§ Of those that opted to pay the assessment in installments, 97 of 133 second year installments have already paid.
§ Food business revenue was $32,000; less expenses resulted in $2K loss.
§ Liquor business lost $1,000 for the season.
o Rate schedule for next year is basically the same as 2008.
· Insurance --- Committee Chair: Dick Malone --- Board Liaison: Chuck Gularson
o Gerry B. reiterated the issue of the injury incurred to the homeowner who fell by the mailroom.
o Dick M. advised that this should be handled by the SPHA insurance carrier.
· Landscaping --- Committee Chair: Loeda Stango --- Board Liaison: Gerry Buckley
o No new items.
· Legal --- Committee Chair: Jim Kennedy --- Board Liaison: Same
O Homeowner that was in arrears for both annual assessment and the special assessment for $6,099 has paid his annual assessment.
§ Homeowner wants SPHA to forego penalty and interest – SPHA will not forego these costs.
o Swan Keys Homeowners Association has issues regarding architectural standards which could have had impact on SPHA. Legal counsel advised there is no issue with SPHA.
o SPHA Employee Manual prepared.
o Worker’s Comp folks are satisfied we are in compliance.
o PKS meeting was held to transfer assets from SPHA to Golf Club.
§ SPHA will own land, while other depreciable assets such as golf carts, etc., will be contributed down to the Golf Course Company.
§ Land will be leased to Golf Course Company for $1.
§
Jim K. presented the following resolution: “Whereas,
Salt Pond Homeowner’s Association, Inc. (SPHA), purchased the golf course
assets, including the land, land improvements, buildings, furniture,
fixtures, golf carts, irrigation
equipment, parking lot, cart paths, equipment and vehicles from Salt Pond
Associates for the primary purpose of owning the land and the secondary purpose
of operating a public golf course, and
Whereas, to operate the golf
course business using the acquired assets, SPHA caused a for profit
corporation, The Salt Pond Golf Course Operations, Inc., (TSPGCO) to be formed
as its wholly owned subsidiary, and
Whereas, SPHA desires to retain
the land and to contribute all of the remaining golf course assets to TSPGCO as
additional paid in capital to facilitate the golf course operation.
Now Therefore:
Resolved, that SPHA hereby
contributes as additional paid in capital the land improvements, buildings,
furniture, fixtures, golf carts, irrigation equipment, parking lot, cart paths,
equipment and vehicles (all of the assets except the land) acquired by SPHA to TSPGCO, and
Resolved further, that SPHA and
TSPGCO will enter into an annual lease agreement to define the terms, including
the annual rental rate, under which TSPGCO will use the SPHA owned land and Pro
Shop (part of the SPHA Community Center) in its business.”
§ Chuck G. motioned that we adopt the resolution as read by Jim K., Dick C. seconded the motion, and motion passed unanimously.
· Newsletter --- Committee Chair: Gary Clipp --- Board Liaison: Same
o Most folks preferred getting just the link to the Newsletter, instead of the complete copy in email form, and all future Newsletters will be sent as a link
o January Newsletter deadline is January 3rd.
· Planning & Zoning --- Committee Chair: John Gilsenan --- Board Liaison: Jim Kennedy
o No report.
· Ponds & Wetlands --- Committee Chair: Chris Brown --- Board Liaison: Michael Headman
o Meeting was held to discuss which common areas are impacted as wetlands.
o Michael H. reported ponds and wetlands look good and continue to improve suggesting we are going in the right direction.
· Recreation --- Committee Chair: Bill Loschman --- Board Liaison: Gerry Buckley
o Frank Slahetka has regretfully resigned from the committee. Bill Loschmann lauded Frank’s efforts as a member of the committee over the last several years.
o Racks to hold 48 kayaks will be built on the Salt Pond Beach area to be leased by residents.
o Letters explaining the Kayak Program will be mailed in March.
o Parking will be improved at the entrance to the beach area.
o New signs with rules and regulations for the beach area, as required by DNREC and SPHA, will be posted.
· Salt Pond Plaza --- Committee Chair: Cheryl Wisbrock --- Board Liaison: Michael Headman
o Michael
H. reported Harris Teeter still hopes to open next summer.
o Easements are still to be signed by developer.
(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 No update
· Websites --- Committee Chair: Gary Clipp --- Board Liaison: Same
o New Homeowner Page will be added to the website in the New Year.
UNFINISHED BUSINESS:
(Note: New and revised Architecture Review Standards posted
on SPHA website – www.sphamembers.org.)
NEW BUSINESS:
· Enact SPHA Budget for 2009
o Chuck G. had previously sent a copy of the 2009 budget and had questions in three areas:
§
Ø Michael H. explained $5,000 is due to irrigation moved to SPHA side of Bethany Loop
Ø $10,000 is for additional landscaping.
Ø Chuck G. suggested the irrigation system for $5,000 and the cost of the roads for $15,000 be added to the 2009 reserve expenditures. Therefore, the actual expenditures are actually $19,200. $10,000 is for the additional landscaping and the balance for legal, engineering and administration expenses.
Ø Michael H. is optimistic these expense costs will be lower than anticipated.
§ Legal showed $10,000 budget for 2009, compared to 2008 projected actuals of $5,000
Ø Jim K. was no longer present to answer the need for doubling the 2008 projected actual.
§ Pool Management had a 2008 budget of $38,500 with a forecasted 2008 actual of $35,000, and a 2009 budget of $36,452.
Ø Dick C. explained this is due to change in pool hours and expected 2009 expectations.
Ø Katherine C. would like to see a report of pool usage to determine if there are times it would be better closed.
(Note: The 2009 Budget may be viewed on the SPHA
Website – www.sphamembers.org.)
· Payment options for annual assessment
o Chuck G. distributed a SPHA Reserve Account document to attendees and explained its content.
o Chuck G. proposed increasing assessments for Salt Pond homeowners by $187 in 2009 to be able to add to reserves for upcoming capital expense events. The Villages and lot owners would pay a different amount.
§ Assessments may be paid in one lump sum, or half in January and half in July.
o Consensus of the board was we are much underfunded in reserves and need to do the increase.
o Bill K. motioned we increase the assessment as indicated by Chuck and provide the opportunity for two payments, Dick C. seconded the motion, and the motion passed unanimously.
o Bill K. motioned to accept the 2009 budget as presented by Chuck, Dick C. seconded the motion, and the motion passed unanimously.
· Proposal for an Engineering Committee
o Jim B. suggested we reinstitute an Engineering Committee to review new projects, etc.
o Gerry B. proposed we establish an Engineering Committee.
o Jim B. will recruit members for the committee and be the Board liaison.
·
Rental Fee Policy
o Will be discussed next month.
·
Mail Room Posting Policy
o Moved to next month.
· Catering Contracts
o Previously discussed.
·
New Office
o Gerry
B. will be developing a Job Description for the Salt Pond Manager to be
approved by the BOD.
· Christmas Luncheon
o Gerry B. suggested having a luncheon of SPHA paid staff as a courtesy and as an opportunity to present them with the Employee Handbook.
·
Review Community Center Waste Management Contract
o Not due until February – Hold until next meeting.
ADJOURNMENT
Meeting was adjourned at 5:45 P.M.
NEXT MEETING
Next Board meeting: December 19th at 2:00 P.M.
Respectfully submitted by Gary Clipp, Secretary
December 6, 2008