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Cypress Landing Master Homeowners Association Board of Directors Meeting

February 23, 2009

Bay Club

7pm

 

Board Members Present: Charlie Moore, Dave Grahek, Larry Howard, Mary Lou Sholl

Board Members Absent: Ron Buzzeo, Kathy Lawson, Bill Lord

Others Present: Tomi Moody-CAM; Chris Harris-Treasurer; Barb Curran-Outgoing Secretary; Mia Ramsden-Incoming Secretary

Residents Present: 19

 

Open Forum/Question & Answer Session

Dan Bergbauer stated last year the BOD issued a report in June and a letter in October dealing with the enforcement of the covenants as they related to the BOD/BOG golf issue.  Since these documents impacted the rights of residents Dan inquired why they were not reviewed with the HOA attorney beforehand.  Charlie Moore indicated the BOD seated at the time did not feel their findings warranted formal review.  Charlie indicated he, himself, participated in some of the discussions and he said they were confident that the report which was made and the letter which was distributed were consistent with the covenants.  Dan felt the membership is being shortchanged and requested the Board review the matter and get the HOA attorney involved so the matter can be resolved once and for all.  Dave Grahek indicated it was his recollection that the HOA attorney did communicate with an attorney in Raleigh, after which the HOA attorney felt there was no issue which necessitated a formal review or have the BOD take any action other than sending a letter.  Dan then inquired if this communication between attorneys was in writing.  Charlie Moore recalled this communication was in the form of a voice mail message which he thought he retained and that Dan was welcome to listen to it.

 

Call to Order

            President Charlie Moore called the meeting to order at 7:00 p.m.

 

Establishment of Quorum

            A quorum was present.

 

Change of Agenda

President Charlie Moore indicated there will be a discussion under New Business concerning current procedures to enforce delinquency policy associated with the use of amenities in Cypress Landing.

 

Minutes

Charlie Moore asked for a motion to accept the previous minutes.  Mary Lou Sholl moved and Larry Howard seconded the motion to accept the minutes of January 19, 2009 as written.  Motion carried.  (Attachment 1)

 

Presidents Comments

None. 

 

Committee Reports

Bay Club Operating CommitteeChair Mara Graves indicated in January 2009 the committee performed an inspection of the building and identified areas needing attention and forwarded the list to Scott Moody.  The finish of the top of the bar has been worn down to bare food due to normal wear and tear and the bar will be resurfaced and refinished.  During the 5-6 days the epoxy/polyurethane will be drying, the bar will be closed.  A kitchen inventory was done in November 2008 and nothing needed to be replaced.  At that time it was apparent more storage areas are needed.  As a result, cabinets will be constructed in the Washington Room (labor to be performed by one of CL residents) and possibly the Chocowinity Room, as well as a wine glass cabinet in the bar.  The major assets inventory was completed just this morning and a sub-committee was formed to review replacement of the furniture in the Bay Club.  There was a slight delay in beer shipments last week due to the weather, but that was momentary.  In the future, however, because we are considered a small account, beer might only be delivered once every two weeks, resulting in a storage problem. BCOC also raised the bartender gratuity for private parties (18% to 20% for one and from 20% to 25% for two).  The sound system was fixed.  There were two resignations on the BCOC, Doug Smith and Ingrid Butler.

 

President Charlie Moore asked if the Board members had any questions of the BCOC.  There were none and the BCOC report was accepted.

 

B&G Sink Hole Status

Chairman John Reiner indicated B&G received a quote from HML in the amount of $17,500.55 for the repair/replacement of the Newport Lane storm water drain.  This work will entail the removal of the 24 inch pipe from the pond to the place that HML repaired two years ago, replacing the pipe and laying down sod. 

 

Charlie Moore asked the Board if they had any questions before the recommendation was put to a vote.  Mary Lou Sholl had a question relating to some verbiage on the back of the form, which John addressed and Larry Howard questioned what would happen if we dont do anything?  John responded it would then become a safety issue, as there are now two sink holes present.

As there were no further questions, President Charlie Moore indicated he would accept a motion to accept the B&G recommendation to expend approximately $17,500 to replace the storm water drain on Newport Lane and would someone on the BOD like to make a motion to approve the recommendation?  Dave Grahek moved and Mary Lou Sholl seconded the motion.   Treasurer Chris Harris indicated this had been discussed at the Treasurers meeting, the funding expenditure for this project should not exceed $17,500 and that the funds should come from the Major Capital Maintenance Fund.  In answer if there were any questions from the audience, resident Dan Bergbauer indicated there is an 18 inch pipe 6 feet away from the storm water drain to be replaced and there is a need to be careful that this pipe is not damaged.  George Badey asked if there was any guarantee this will fix the problem.  John Reiner assured the residents the 18 inch pipe in the vicinity of the storm water drain will not be damaged and the recommended work will resolve the sink hole problem.

 

As there were no further questions, Charlie Moore requested a vote to replace the storm water pipe at a cost of $17,500.  A vote was taken and the motion was carried unanimously.  (Attachment 2)

 

2nd Phase of the Bay Club HVAC Ductwork Repair

There are air-flow problems in the ductwork which effects the circulation of air in the bar area and the area adjacent to the CAM area on the first floor.  (The construction of the original ductwork restricts the air flow in these areas.)  B&G is requesting approval to expend $2,700 to have C/A Heating & Air re-work the ductwork to permit adequate air flow.

 

As there were no questions by the BOD or comments from the audience, President Charlie Moore requested a vote on the motion to have C/A perform the work as outlined at a cost of $2,700.  The motion was carried with a unanimous vote.  (Attachment 3)

 

Grill Patio

John Reiner stated there are two grills located inside the screened porch area adjacent to marina lounge.  The Fire Marshall indicated the two grills should not be stored under the building as it poses a potential fire hazard and should be moved outside the marina.  To comply with the Fire Marshalls request, B&G would like to build a patio area on which to place the two grills at a cost of $2,000.  It was noted the grills are used by residents and after some sailing activities by the Yacht Club members. 

 

As there were questions concerning the cost of this project vs. the actual use of the grills, President Charlie Moore indicated he will take the B&G recommendation for this item under advisement and add it to list the BOD has been provided by the Long Range Planning Committee and work the LRP in order to come up with a prioritization of the project and a mechanization by which to present it to the entire community.  (Attachment 4)

 

Diseased Tree Removal/HOA Common Area

Last fall B&G identified 26 trees which were diseased and/or dying.  Recently the County Arborist inspected the trees and concurred with the B&G to have them removed.  Most of the trees are located in high traffic area and there is a safety concern for residents.  B&G has received an estimate from Skips Tree Removal Service for $3,900 to remove the trees, grind down the stumps and fill in with top soil.

 

After a discussion of the tree types, specific location of the trees and possible replacement, President Charlie Moore asked if the BOD members were in favor of removing the trees at the request of B&G.  The cost of $3,900 would come from Major Capital Maintenance Fund.  The motion was carried by a unanimous vote. (Attachment 5)

 

Election & VotingChair George Badey indicated the E&V Committee has been reviewing the current election and voting procedures used at CL for the past year and have come up with some considerations for the BOD to consider.  They would like the BOD to consider removing voting for HOA officers at the annual meeting, that the vote could take place prior to the meeting via the mail or possibly the internet, thereby eliminating BOD nominations on the floor. This will require a change in the By-Laws.  The Committee also wished the BOD to consider a new policy which would provide residents an opportunity to participate with the BOD in the planning for and approval of changes to the covenants, by-laws, projects that require special assessments and projects that would significantly change Cypress Landing.  This policy would create a Review and Comment Period prior to any official voting whereby a meeting organized by E&V is held with the residents relative to the specific issue for the purpose of exchanging information.  All residents would have the opportunity to comment regarding the proposed action within the allotted time.  A summary of the meeting would be posted on the internet.  It was felt these measures would greatly reduce the time, money and efforts involved in the voting process, permit residents to more easily change their vote as well streamline the process in general.

 

President Charlie Moore asked if there were any questions the BOD would like to make of George relating to the Review & Comment Policy.  Larry Howard asked if George was aware that the CLMHOA Election Board Subcommittee chaired by Ron Buzzeo has included the Review & Comment Policy on their agenda.  George was not aware of this.

 

Charlie Moore stated that the Review & Comment Policy, while commendable in spirit, is not executable in the context of the association being organized and run in some semblance of order with the organization rules which have been imposed upon us by the state, which is Roberts Rules.  He felt it is not appropriate to hold an association meeting that it not properly announced, for which there is no agenda, any minutes kept or no opportunity for the Board to have a chance to interact with or respond to. Once an issue/assessment/item has been identified, it is the obligation of the board to make their intentions made far in advance and respond and listen to association input from the members.  Charlie said we have meetings every month and these monthly meetings provide the perfect venue where we can vet and listen to any comments the association may have.

 

President Moore then requested comments from the audience.  At this point various questions, issues and thoughts were expressed.  One member felt what we have now does not work.   John Moore, a member of the E&V Committee and in the audience, said something needs to be done in the way our covenants and by-laws require us to conduct business.  The past two unsuccessful ballot issues are indications of this need.  Residents wanting to change their ballot vote could not do so.  Additionally, John felt the monthly Board meetings are not the appropriate venue for these informational meetings as the monthly meetings are attended by few residents.  More broad-based communication is needed and that more work should be done on the part of the BOD with the membership before something is proposed.

 

In conclusion, President Charlie Moore stated the specific recommendation tonight at the board meeting has to do with the Board accepting the Review & Comment Policy.  At this point, Tomi Moody-CAM stated the proposed Review & Comment Policy would provide a process which would be consistent from year to year and from board to board.  Not only would this policy provide a specific time period but would provide a consistency which is lacking now.

 

Dave Grayhek indicated it is apparent from all the comments and input from E&V Committee members and residents in the audience, this is too important an issue to consider with only four board members present.   The recommendation should be postponed to permit more investigation and analysis on the issue, even if it means the policy is not in place prior to this years annual meeting.  In light of this, President Charlie Moore requested that the E&V Committee consider withdrawing their recommendation until such time that the board has more time to consider it and, hopefully, at a meeting where more board members are present.  Chair George Badey said they would withdraw their recommendation for reconsideration at a later time.

 

Charlie Moore indicated this item will be on the March meeting agenda.  George went on to say he hoped that members of the BOD would meet with their committee.

 

In closing, President Charlie Moore stated the Board has previously considered and discussed the ramifications of what the E&V Committee is proposing as well as some of the significant implementation issues.  He certainly does not want meeting attendees to feel the Board is deliberately creating unnecessary delay.  Prior to any policy change, the BOD needs to be certain the change will ensure consistency and reliability over time.  Charlie Moore confirmed with a resident that the E&V Election & Voting memo and the document covering the Review & Comment Policy will be made part of the board meeting minutes.  (Attachment 6)

 

Finance

2008 Audit Contract

 On behalf of Chair Mike Bickel, Scott Fagin made the recommendation to award the contract to prepare the 2008 Annual Financial Audit to Wilson, Jones & Company.

As there were no questions by BOD or the audience, President Charlie Moore asked the Board to accept this recommendation?  The motion was approved by a unanimous vote.  (Attachment 7)

 

Resurfacing of the Bay Club Pool Dressing Rooms from the Major Capital Maintenance Reserve.

The previous recommendation was made to utilize the Reserve for Capital Improvements for this project.

Again, following no questions from the BOD or the audience, the motion was passed with a unanimous vote.  (Attachment 8)

 

2010 Budget Schedule

The Finance Committee has proposed a schedule to permit timely completion of the budget.  The Finance Committee is requesting the Boards approval and commitment to participate in the budget activities.

No questions were raised.  As a result, the motion was passed unanimously.  (Attachment 9)

 

Safety & Security Committee

Security of Storage Lots

Bernie Dougherty, Co-Chair reported there was an attempted break in at Storage Lot 6 on February 6, 2009 and the Sheriffs Office responded.  To date no one has reported anything stolen or damaged.  Sheriffs deputies now include exterior perimeter of lots during patrols.  As all residents are informed by the HOA that all storage lot users sign a waiver of liability, Bernie is asking the BOD to what extent does the BOD and the S&S Committee, have responsibility for the security of the storage lots and contents?

 

It was felt the cost of the various safety and security measures should be weighed against the actual value of the items lost/stolen.  At this time it was felt the Sheriffs patrols are a good start and that if additional measures need to be taken, they will be considered on an as-needed basis.

Tomi Moody-CAM, indicated the HOA is having a company come in and professionally repair the fence where it had been cut. (Attachment 10)

 


Nature Path paralleling Old Blounts Creek Road

Bernie indicated a member of the S&S Committee expressed concern about the potential fire hazard from natural debris on the ground adjacent to the Nature Path.  The current contract with Landscaping Unlimited covers the nature trail itself, but not the adjacent areas and there is sizeable debris on both sides of the trail.  It was noted B&G doesnt do anything relating to the Nature Trails. 

 

It was generally felt nothing additional should be done on the Nature Path.  Since we already have S&S looking at the trails, Landscaping Unlimited working on the trail itself and the Environment Committee creating markers denoting points of interest, we have sufficient amount of attention being given to the trails and the possible potential fire hazard concern.

 

Charlie Moore said should the drought worsen and it is felt that more attention should be given this area, the situation will be addressed on an as-needed basis. (Attachment 10)

 

Excessive Speeding within Cypress Landing

At the request of S&S Committee, the Sheriffs Office will add marked vehicles to the current unmarked vehicles patrolling throughout Cypress Landing.  Sheriffs Office reported a number of vehicles have been observed driving well in excess of the posted speed limit.  Additionally a radar trailer has been deployed on main thoroughfares within the community.  There was an incident where a resident tail gated the unmarked car and actually attempted to pass it.  Larry Howard asked what the next step would be should residents continue to speed.  Bernie responded that we could consider speed bumps, which would involve the DOT.  Bernie went on to say that the Sheriffs Office could begin to deploy radar units and issue citations, noting that our streets are state-owned and, as a result, the Sheriff did not need our permission.   (Attachment 10)

 

Treasurers Report

Treasurer Chris Harris reported we are a solvent community.  We have over $1,000,000 we are accounting for.  We are struggling to invest our CDs in high rates and need to do a lot of shopping around.  There are 28 delinquent assessment accounts; 17 home owners and 11 lot owners (3 of whom are also delinquent for lot mowing) for a total (including fees) of $20,330.  This is much better than last year when we had 44 delinquent accounts during the same period of time.  Relative to Profit & Loss, Net Income is $8,160 vs. a projection of $97, our Income was $980 over budget projections and our expenses were $7,083 behind budget projections.  (Attachment 11)

 

Community Association Manager Report

Tomi Moody-CAM reported the previously approved Bay Club Tile restoration project will commence in mid-March and the Pool Bathhouse Floor Refurbishment project will start April 1st after the pool deck is resurfaced.  Tomi asked if the final warning letter for those home/lot owners where an attempt is being made to make some payment toward the assessment could be deferred another 30 days.  Those letters to homeowners who have made no effort to contact Tomi would be sent out the end of February.  Tomi asked if a Board member could accompany her during the upcoming community inspection some time this week.  Additionally she would like appreciate receiving Board input relative to creating an email policy which is consistent with the Board/Community vision.  It is getting harder and harder to determine those groups which should be included and those groups which should be excluded.  Relative to the HOA Office, on January 29th a committee chair orientation was held with the various committee chairs and on January 30th records were purged and year-end files were consolidated.

 

President Charlie Moore indicated the Board had previously discussed Tomis request to defer the final lien letter (for those lot/property owners who have made an attempt to make their assessment payments) just prior to the meeting and it was their decision to enforce current policy and procedures and not to defer the letters.  A discussion will be coming shortly in the meeting concerning how we enforce this policy. (Attachment 12)

 

Unfinished Business

Status of Pool Drains

Larry Howard reported this issue relates to new federal requirements regarding the suction and drains for safety purposes.  As this involves both State and Federal entities, there is a lack of clarity relative to the enforcement of the requirements.  Currently the enforcement will fall to Beaufort County Health Department.  As of tonight we will be replacing the two drain covers in the main pool.  In the wading pool we will be replacing the drain cover and the collar which goes around the cover and gets screwed in.  The drain covers cost $700 each and it is uncertain what the cost will be for the wading pool drain collar.  Additionally, Larry reported, we will only use one of the two pumps which will ensure we do not exceed the new suction rates as stipulated by the new federal requirement.  The covers have been ordered and will be installed by opening day of the pool.  The funds will come out of pool budget.  At this point it is believed the new requirements will be effective this year but enforceable by 2010.  However, this may change as more information is received.

 

Tideland Electric Research Findings

 Charlie Moore stated Jim Kloiber was to have been present to report his research (at the request of the BOD) to determine whether Cypress Landing residents who are currently with Tideland Electric can request to become hooked up with Progress or vice versa, residents with Progress could transfer to Tideland.  The bottom line is no.  Homeowners cannot elect to change their utility company.

 

 Environment Committee Charter Revision

President Charlie Moore related about two months ago the Environment Committee submitted a recommended revision to their Charter.  For various reasons the Board is getting to this recommendation now.  The Board has accepted the charter as presented and Charlie had anticipated going over the changes with the meeting attendees, but now realized this might be the first time the Environment Committee Chair, who is sitting in the audience, is hearing about this because the board liaison to the committee had not been around.   As this was the case, Charlie Moore indicated this item will be deferred to the next Board meeting.

 

New Business

CLMHOA Secretary Resignation and New Appointment

President Charlie Moore indicated after six years in the CLMHOA Secretary position, Barbara Curran has submitted her resignation Barbara and the Board reluctantly accepts her resignation.  After sending out an email request for interested residents to contact the HOA office and Barbara canvassing residents herself, one resident has been identified, Mia Ramsden, as Barbaras replacement.  Mia was welcomed and Barbara was thanked for her time and commitment to the Board.  At the next meeting Mia will be appointed in writing as an officer of the Association and accept Barbaras resignation.

 

Procedures to Enforce Delinquency Policy Associated with the use of Cypress Landing Amenities

President Charlie Moore stated the current policy stipulates those residents who are delinquent in their assessments are not considered residents in good standing, and, as such, forfeit the right to use community amenities, such as the two pools, fitness center, tennis courts, trailer parking facility and Bay Club.  The policy further states the only action necessary is to post a list of delinquent accounts which provides the lot number in the vicinity of the CAM office.  In reviewing this policy the question was raised what does this policy do to ensure that the delinquent residents, in fact, do, not use the amenities?

 

In discussions with the BOD, several alternatives have been identified.  One of which is to include the last name of the party associated with the lot and post the list on the bulletin board associated with the amenity.  This could be accomplished at the tennis courts, the bar, the pool and the fitness center.  It would be up to the individual residents or users of the amenity to be certain the policy is enforced.

At this point Charlie Moore asked for Board comments on this issue.  Larry Howard stated he does not wish to list the names as he does not want to embarrass or shame residents.  He is in favor of sending certified letters.  Dave Grahek indicated, as Treasurer of a country club for 17 years, they found posting names to be effective.  Posting the names was not done to embarrass anyone but to ensure the amenities were enjoyed by those residents who followed the rules vs. those who did not.  Dave went on to say currently we have a delinquent family member who is using the Iris Lounge and we have another delinquent family member who has items in the storage lot.  We need to ensure our by-laws and covenants are enforced as written and the BOD needs to know who is delinquent.  Mary Lou Sholl agrees with Larry Howard that no specific last name should be provided.  However, she agrees with Dave Grahek in that if a board member sees a delinquent family member using an amenity, the board member should discreetly take the family member aside, indicate the amenity is not available to them and ask them to leave.

 

At this point Charlie asked for comments from the audience.  Some residents felt names should be published and some did not.  Some members felt the residents of Cypress Landing have the right to know who are delinquent as this does affect amenity usage.  One member felt the delinquent names should be published on the Cypress Landing web site.  All in all, many different points of view were expressed, some strongly.  Some residents asked how far the BOD and HOA should go if delinquent residents continue to use the amenities.  For instance, do we consider calling in the Sheriffs Office?  Current policy stipulates the liens are filed effective March 1st.   At such time could we not ask the respective residents to remove the items from the storage lots or Scott could be authorized to remove them?

 

Tomis main concern related to those areas which are not staffed, like the fitness center.  How do we enforce this policy?  Do the bartenders call Tomi when they see an unauthorized resident in the bar? 

Additionally Tomi indicated this year there are 8 families attempting to pay down their assessment.  If we are going to make a policy change relative to posting names, Tomi would like to see the delinquency grace period be extended from the current 60 days to 90 days.  This is recommended by CAI.

 

Charlie Moore concluded the discussion by indicating he brought this issue up so the Board could discuss this among themselves and hear the general consensus of the residents in the audience.  No member of the board is prepared to make a motion concerning policy tonight.   As a result he withdrew his initial comment in trying to make a motion.  Between now and the next Board meeting the Board will come up with a revised policy statement we can act on and discuss

 

The question was asked of Charlie if the Board will act on the two examples of delinquent residents using CL amenities (storage lot and the bar), speak with them and ask that they decline from using the specific amenity involved?  Charlie said the board has an obligation to enforce the policy as it currently exists.  If specific delinquent residents are known who continue to use the amenities, Charlie Moore indicated he will speak with them.

 

Announcements

March Board Meeting...................... March 30, 2009...................... 7 p.m. Bay Club

 

 ALL MEETINGS ARE OPEN TO THE COMMUNITY

 

Adjournment

President Charlie Moore asked for a motion to adjourn the meeting.  Larry Howard so moved and Mary Lou Sholl seconded the motion to adjourn.  The meeting adjourned at 8:50 p.m.

 

Respectfully submitted,

           

Barbara Curran

 

Barbara Curran, Secretary Cypress Landing Master Homeowners Association Board of Directors

 

Attachments:

1.      January 19, 2009 Minutes

2.      Sink Hole Recommendation by B&G

3.      Estimate from C/A for 2nd Phase of the Bay Club HVAC Ductwork Repair

4.      Grill Patio Recommendation by B&G

5.      Tree Removal from HOA Common Area Proposal

6.      Election & Voting Memo-4 re Election & Voting Revisions and Review & Comment Policy

7.      Finance Committee Proposal for Awarding 2008 Audit Contract

8.      Resurfacing of the Bay Club Pool Dressing Rooms from the Major Capital Maintenance Reserve.

9.      2010 Budget Schedule

10.  Safety & Security Committee Report

11.  Treasurers Report

12.  Community Association Manager Report