Devaun Park Community Association, Inc. 6 th Annual Members Meeting Saturday, March 24, 2012 Minutes
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1 Devaun Park Community Association 9220 Rivendell Place SW Calabash, NC Karlie Riess Munro Secretary Alderman Devaun Park Community Association, Inc. 6 th Annual Members Meeting Saturday, March 24, 2012 Minutes The Sixth Annual Members Meeting of Devaun Park Community Association (DPCA) was called to order on Saturday, March 24, 2012, at 10:00 AM at the Devaun Park Horseshoe Club located at 9220 Rivendell Place, Calabash, NC. Formal Opening of Meeting: DPCA President, Ms. Judy Malone welcomed everyone and commented that this was a DPCA meeting and SSC business would not be discussed. Roll Call and Proxy Certification Proof of Notice of Meeting: Mr. Nathan Barker, CEPCO association manager, confirmed the roll had been taken and proxy s counted. Attendance: Association certified that the following members of 49 were in person, 102 by proxy; for a total of 151 in attendance in person or by proxy. Mr. Barker also certified the proof of Notice of meeting. Minutes: A motion to dispense with the reading of the Special Meeting Minutes of October 17, 2011 (attached) was approved. A motion to dispense with the reading of the Annual Members Meeting Minutes of March 11, 2011 (attached) was approved. Reports of Officers and Board Members: Mr. Scott Stewart, Vice President, introduced the new Vendors of DPCA. Mr. Derek Ezzell, standing in for Mr. John Buddemeyer, Treasurer, presented the 2012 budget (attached). Mr. Vaughn Stanaland, presented a variety of rules, from the proclamation, that seemed most important to review with the warmer weather coming up, Clubhouse rules and renting, Pool rules, exterior lighting on residents homes and safety issues protocol regarding 911, street lights and bollard lights. Mr. David Smith presented a timeline (attached) of what the BOA had accomplished to date. Reports of Committees: Mr. Joe Leary and Mr. Joe Magri of the Legal committee, introduced Michael Lee, managing partner of Smith, Moore and Leatherwood, and his associate Colin Tarrant, counsel for the Association. Board of Aldermen (BOA) Elections: There being no nominees from the floor, elections were held based on the notice of the annual meeting. The two candidates receiving the most votes were elected to a two year term & the remainder a one year term. Ms. Judy Malone and Mr. Dave Smith received the 2 yr terms, Mr. John Buddemeyer, Mr. Derek Ezzell and Ms. Karlie Riess Munro, and Mr. Scott Stewart received 1 yr terms. Mr. Scott Stewart then resigned as an Alderman and as Vice President of DPCA.
2 Mr. Scott Stewart (as a member of the Founder) stated, I approve the appointment of these elections. Mr. Vaughn Stanaland as a member of the founder was asked by Mr. Scott Stewart & Ms. Judy Malone if he approved also and stated, I approve this election. Old Business: Key card system, whether it will be installed or not. Put Trash cans around the development. Landscaping schedule, when the landscaping crew is schedule to be in the Development. Gratitude expressed in the repairing the Pergola on River Front park. New Business: Ratification of the 2012 Budget The 2012 Budget was ratified. Member Discussion: Ocean Harbour Drive maintenance Special Assessment CEPCO, customer service, response time. Mr. Scott Stewart s role as BOA member Calling 911 for emergency Legal representation responsibility Aldermen election. Advisory Committee consisting of Mr. Vaughn Stanaland & Mr. Scott Stewart. Communication with New Vendors specifically the new management company. Correct Budget being mailed out. Website Adjournment: A motion to adjourn was approved at 12:14 PM. Respectfully submitted, Devaun Park Community Association, Incorporated Karlie Riess Munro Secretary
3 Devaun Park Community Association, Inc. Special Members Meeting Monday, October 17, 2011 Minutes At the call of the President of Devaun Park Community Association (DPCA), a Special Members Meeting was called to order on Monday, October 17, 2011, at 10:30 a.m. at the Devaun Park Horseshoe Clubhouse located at 9220 Rivendell Place, Calabash, North Carolina. 1. Opening Comments and Introductions Vaughn Stanaland, DPCA President & Treasurer welcomed everyone to the meeting. Present was DPCA Vice-President & Secretary Scott Stewart and Ally Management, Inc representatives Paul Lankford, Erica Dircks Pilchard and Pauline Carrig. Vaughn Stanaland also called to order a Special Meeting of Stanaland Stewart Company to run concurrently with the DPCA Special Meeting, and Mr. Stewart objected to that call to order since DPCA are not members of SSC. 2. Formal Opening of Meeting Mr. Lankford opened the meeting and noted that in accordance with the By-Laws, the Special Member s Meeting was called at the request of the President of the Association to discuss and consider the following matters: a) Presentation and discussion of an independent audit of the association financial records. b) Presentation and discussion of a preliminary annual budget for the Association for c) Presentation and discussion of a special assessment. d) e) Presentation and discussion of deeding the Horseshoe Club and Pool area to the Association. f) Recommendations for appointing 5 (non-founder) members to serve on the Board of Alderman until the next Annual Meeting. g) Such other business that may be properly brought before the meeting. Mr. Stanaland chaired the meeting. Mrs. Dircks Pilchard served as recording secretary of the meeting. 3. Identification of Proxy Agents 4. Roll Call and Proxy Certification - Proof of Mailing Examination - DPCA Quorum requirement met. 5. Business The meeting agenda was transacted out of order as stated in the notice and was discussed as follows: 1
4 a.) Presentation and discussion of an independent audit of the association financial records. Ms. Carrig commented on Ally Management s internal accounting practices. She further noted that a third party independent auditor had been hired to audit the 2010 and 2011 financial statements. A copy of the audit will be ed to each homeowner and posted on the association website once available. Ms. Carrig next reported on the current financial status of the Association as of September, The operating account balance and income statements were discussed and are attached as Exhibit B. Items over and under budget for the year were noted. The reserve account balance and income statements were discussed and are attached as Exhibit C. Items over and under budget for the year were noted. b.) Presentation and discussion of a preliminary annual budget for the association for A preliminary 2012 operating budget was presented to the membership for review and is attached as Exhibit D. The 2012 operating budget, it was noted, was in preliminary form with the adoption being the responsibility of the new Board of Aldermen. Upon their approval the 2012 budget will be sent to the membership. c.) Presentation and discussion of a special assessment. Reserve depleted. The new Board of Alderman will review the need for a special assessment. d.) Presentation and discussion of deeding the Horseshoe Club and Pool area to the association. Mr. Stanaland, President, stated transfer is timely, appropriate and legal. Mr. Stewart, Vice-President, stated transfer is neither appropriate nor legal. A property owner raised the question as to who the gentlemen behind Vaughn Stanaland was, as he was not introduced in meeting opening. Vaughn Stanaland introduced the gentleman as Allen Jeffcoat, Attorney, and Tonia Trest-Twigg, Attorney, who arrived late. A motion was made asking that the attorneys leave. The Attorneys departed the meeting. No action taken regarding conveyance of the Horseshoe Club and Pool. e.) Recommendations for appointing 5 (non-founder) members to serve on the Board of Aldermen until the next Annual Meeting. 2
5 The appointment of a new Board of Aldermen and amendment changes to the DPCA governing documents (Proclamation and By Laws) eliminating Founder control of DPCA, as written by Vaughn Stanaland, were reviewed and discussed. Scott Stewart stated this amendment was written without his consent. At that time, Members who had previously volunteered to serve as Aldermen were recognized and additional DPCA members volunteered from the floor. A motion was duly made, seconded and unanimously approved, by Founders Scott Stewart and Vaughn Stanaland, as follows: MOVED that the following 9 members of DPCA be appointed to serve on the Board of Alderman until the next Annual Meeting: 1. John Buddemeyer 2. Ken Drennen 3. Derek Ezzell 4. Judy Malone 5. Ghias Massaranni 6. Karlie Monroe 7. David Smith 8. Vaughn Stanaland 9. Scott Stewart f.) Such other business that may be properly brought before the meeting. Discussion on transition process from Founder control to membership control. Discussion regarding HOA expenses and concern that HOA has been paying for expense that belong to the developers. Discussion regarding the decision making of the association. Board of Aldermen has authority over association affairs; DPCA through the board hired Ally Management to act based upon a contract. Vaughn Stanaland has been carrying out the affairs of the association. Discussion and agreement from property owners that it may be necessary to engage legal counsel due to founder lawsuit and unanswered questions. Discussion on Collection and Lien process. Discussion regarding efforts of Beautification committee that was formed within Devaun Park to address signage, landscaping suggestions and other related items. Members spoke of the history of the committee, items suggested along with rationale for suggestions and positive action taken as a result by DPCA and founder. 3
6 Mr. Lankford noted he was on property about every 2 weeks. Suggestion made he consider an office hour when he visits Devaun Park. It was noted that association information is always available for owners to view and download on Devaun Park website through the Property Owners link. Comments, questions for the DPCA can be ed to dpca@devaunpark.com 6. Adjournment. There being no further Association business, the meeting was adjourned at 1:10 p.m. Attachments: Exhibits B, C, D, Vaughn Stanaland, President, Devaun Park Community Association Erica Dircks Pilchard, Recording Secretary 4
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26 Devaun Park Community Association 2012 Budget Account Description Actual Budget Variance Budget Notes Revenues: Regular assessment 281, , ,800 Note Allowance for uncollected dues (16,829) (3,500) (13,329) (32,150) Note Working capital Contributions 1,261 1, Architectural Review Fees 1,000 (1,000) Interest Income Operating 105 1,200 (1,095) Facility Rental Income Fines/ Late Fees 1,200 (1,200) Bad Debt Recovery 3, ,530 0 Total Revenues 269, ,900 (12,433) 240,000 Expenses: Less: Reserve Funding (5,000) (5,000) 0 0 Net Revenues 264, ,900 (12,433) 235,000 Pool Maintenance 12,638 10,000 2,638 8,500 Note 1 Street Fountain Maintenance 2,339 2,800 (461) 0 General Maintenance Materials 32,295 4,500 27,795 3,000 Landscape Maintenance 125, ,000 (24,200) 58,550 Note 2 Landscape Supplies Mulch,flowers ,350 Ponds & Pond Fountain Maint. 5,214 4, ,500 Note 3 Horseshoe Club Maintenance 2,602 4,000 (1,398) 4,150 Horseshoe Club Supplies Interior Pest/ Termit Bond (455) 750 Storm Related Expenses 3,870 3, Note 4 Office Supplies 454 1,200 (746) 1,000 Printing 1,277 3,000 (1,723) 1,800 Postage 250 1,000 (750) 500 Legal & other Professional Fees 1,320 2,400 (1,080) 2,000 Audit/ Tax Preparation (450) 6,500 Note 5 Management Services 26,395 26, ,000 Note 6 Administration Expenses 4,312 2,200 2,112 3,000 Bad Debt Expenses Note 7 Electricity 36,822 40,000 (3,178) 42,000 Note 8 Water/Sewer 9,726 7,000 2,726 10,000 Note 9 Phone & Fax Taxes, Licenses, Fees (138) 300 Insurance Expense 11,048 12, ,000 OHC Road Maint. Assoc. Dues 0 0 2,000 Note 10 Reserve Legal Fund 18,400 Note 11 Contingency ,500 Note 12 General Reserves 5,000 Total Expenses 277, , ,000 Net Income Operations (12,834) 0 (12,834) 0
27 Revenues: Notes to 2012 proposed Budget Note 1 Regular Assessment Dues for 2012 have been reduced to $1,030 per lot owner. The $1,080 billed for 2012 will be adjusted against any special assessment to be determined. A special assessment will be an agenda item at the annual meeting. Note 2 Allowance For Uncollected Dues It is anticipated we will have 31 lot owners not paying their 2012 dues. This includes current liens on lot owners, bankruptcies and our best collection efforts. Monies recovered will go to build up the General Fund. Expenses: Note 1 Pool Maintenance and Street Fountain Maintenance These 2 items are combined for 2012 and will be handled be a new contractor Ocean Isle Pool & Spa Company. The BOA was able to reduce this cost by $5,000 for the 2012 budget. Note 2 Landscape Maintenance and Landscape Supplies New contract with Paradise landscape reduced the landscape budget for 2012 by $60,000. Landscape supplies such as plantings and mulching will be bill separately from regular landscape maintenance as agreed by the BOA. Note 3 Ponds and Pond Fountain Maintenance Contract with Estate Management services was canceled and will be contracted on an as needed basis. The BOA was able to reduce this cost by $4,800 for the 2012 budget Note 4 Storm Related Expenses Part of the contract with new landscape contractor. Note 5 Audit/Tax Preparation Requested by DPCA Aldermen to audit the financial statements for This is common practice when a new BOA is formed. Note 6 Management Services Change from Ally Management Services to CEPCO will save DPCA $5,000 in the 2012 budget. Note 7 Bad Debt Expense Reclassified as part of uncollected dues. Note 8 Electricity Increase is due to adding additional street lighting not previously billed by Brunswick Electric Company Note 9 Water and Sewer Increase is due to refilling the pool after draining, repairing leaks and pressure testing. The cost and financial responsibility is under review by legal counsel. Note 10 OHC Road Maint. Assoc. Dues Amount agreed to by BOA in conjunction with 2 other associations to maintain Ocean Harbour Drive. Note 11 Reserve Legal Fund This amount was budgeted to help the BOA understand the documents associated with SSC lawsuit and to protect the rights of the DPCA in any legal action rendered against the Founders. Note 12 Contingency Amount represents approximately 5% of the budget the BOA felt was necessary to handle unanticipated expenses.
28 Devaun Park Community Association Timeline March 24, 2012 Start Severed ties with prior contractors. New contracts established with:landscaping,property Management Co.,Pool & Fountain, Housekeeping ARC remains same To enlist association members assistance on various committees OHC Road Maintainence Meeting Short term goal is to create new userfriendly DPCA website To act on behalf of the association in good faith Board on right track Bid & Proposals accepted by Vendors Property owner commitment BOA Actions Budget Legal Actions Audit to be performed (Ally never followed through as stated) 2012 budget includes monies for Audit expense Paid all past due invoices Questioned every outstanding or current expense Collection activity - positive results Letter to Beacon & Sun News Legal Committee approved Retained legal counsel Meeting held with Counsel Insurance Policies to be updated & reviewed Current R E S U L T S Beautification Committee Formed 2010 Concerned Property Owners began having meetings. Fall 2011 Special Meeting October 17, founder filings for aldermen amendment 7 people added to exisitng BOA, Only real outcome of meeting Aug 2, 2010 met with Vaughn Stanaland to discuss attention needed to Devaun Park Community Safety 2 Aldermen resign 10/28/11 uncertainty remains : correct filing Some issues resolved. Owners helping out. Founder Issues Common Areas Critical issues facing Devaun Park BOA met weekly end of October 2011 to March 24, Regular attendance by all members. New officers elected - Judy Malone, Pres. Scott Stewart, Vice Pres. John Buddemeyer, Treas. Karlie Munro, Sec'y Derek Ezzell, David Smith, Vaughn Stanaland At times, the legal battle between Founder members hindered BOA's efforts to perform their duties. Board of Aldermen focused on DPCA issues knowing enmeshing the BOA into SSC would go nowhere as founder seldom agreed. Legal committee formed due to uncertainty within Proclamation, By-Laws, Founder control, SSC lawsuit, and essentials necessary for property owner s protection. No further discussion of deeding common area, pool, clubhouse area to association. Legal counsel guidance required. Board of Aldermen have no allegiance to either founder but to our own community interests and that of property owners. B O A
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