BOARD MEMBER RESPONSIBILITIES
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- Horace Pitts
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1 BOARD MEMBER RESPONSIBILITIES Thanks for considering the opportunity to serve on the Board of Directors of the Savannah Ridge Homeowner s Association. The Board plays a key role in the Association s mission to promote a safe, secure and esthetically pleasing neighborhood in which to live. As a board member, you would be responsible for the control and management of the property and business of the Association to accomplish its mission. The Board meets regularly to conduct the business of the Association. Your role at these meeting and other Board functions would be critical if the subdivision is to maintain its high standard of quality and value. The following information is provided to assist you in understanding the details of the various legal and informational documents of the Association. Board members are available to answer any questions you might have. This is intended to give you an overview of the activities and responsibilities of the Board. A Director s Handbook, containing the referenced documents will be provided to new Board members. Potential candidates may view the Handbook by contacting a current Board member. 1
2 1. Develop a good understand of the three (3) Declarations of Covenants, Conditions and Restrictions. Each Declaration was prepared by the developer to insure certain restrictions remained in place when the subdivision was completed. The developer further incorporated the Association, under state law, to manage the details of the Declarations. Bylaws, discussed below, were later adopted to define the administrative procedures necessary to insure compliance with the Declaration. A. There is an original Declaration and two (2) Supplementary Declarations. They can be found under Legal on the website. B. The Declarations are recorded with the Jackson County Record of Deeds and referenced in every recorded property deed. It is legally binding on the homeowner. C. The Declarations can only be amended by a vote of the homeowners (Article XI, Section 3 of Declaration) and must be recorded. D. No action can be taken by the Board or its officers that violate the Declarations. 2. Develop a good understanding of the Bylaws. A. The Bylaws provide the administrative rules of the Association. They are important to follow to insure compliance with the Declaration and maintain continuity between successive Boards They can be found under Legal on the website. B. The Bylaws have been amended twice. The first amendment increased the number of Board members from four (4) to five (5). The second amendment provided authority for the Board to make and enforce rules and to assess fines for violations. Amendments require approval by the membership. 3. Review the Policies and Procedures that have been developed by previous Boards. A. Budget and Expenditure Procedures Provides a process for developing the annual budget and the payment of invoices. B. Contractual Procedures Provides a process for obtaining quotes/bids for required resources or services. 2
3 C. Procedure for Collecting Annual Assessments Provides a process for notifying and collecting annual assessments, including late fees, from homeowners. D Procedure for Processing Mail Provides a process to receive, distribute & track mail of the Association. E. Covenant Assurance Policy (CAP) This is a policy developed by the ARC and approved by the Board. It contains the subdivision rules as required by Article XI, Sections 1.4 & 1.10 of the Bylaws. Board members need to become familiar with the CAP details. F. Policy for Funding Subdivision Activities Explains the need to obtain prior approval for events using HOA funds. 4. Registered Agent All corporations registered in Missouri must maintain a registered agent. The registered agent must have a Missouri address. The registered agent's business office must be identical to the entity's registered office. Each entity must notify the Secretary of State in case of a change of the registered agent or a change of his or her address. Any legal issues filed against the HOA are sent to the Registered Agent. The Registered Agent is a legal resource available to the Board. The current agent is listed on the website under Contacts. 5. Review the Guidelines of the five (5) standing committees. They can be found under Information on the website A. Activities Committee The committee is responsible for social events, the SCOOP newsletter and a Welcome Wagon. Block Captains are also under the direction of this committee. There are thirteen (13) captains, located throughout the subdivision, who distribute the SCOOP and other information. They also notify the committee of new homeowners in order for the committee to make arrangements for a Welcome Wagon visit. B. Architectural Review Committee (ARC) The committee is responsible for insuring compliance with the Declarations and Bylaws. This is accomplished by developing general rules for homeowners. The current rules are included in the Covenant Assurance Policy (CAP). The CAP can be found 3
4 under Legal on the website. The work of the committee is crucial to keeping a high standard of quality and value in the neighborhood. C. Common Grounds Committee The committee is responsible for the maintenance of the common areas. This includes the entrance and the area surrounding the pool and the retention lot located on Georgian Drive at the Northeast corner of the subdivision. They are also responsible for the flag pole, irrigation system backflow testing & winterization and the installation & removal of the submeter (a meter that measures the water used for irrigation. The City reads the meter and provides a sewer credit on our water bill the following year). They work with the Board to contract for lawn maintenance & irrigation system repair. D. Neighborhood Watch Committee - The committee works with the Lee s Summit Police & Fire Departments and homeowners to reduce/prevent crime and unsafe acts that may occur in the neighborhood. E. Pool Committee The committee is responsible for the maintenance of the pool and the pool area including the pool house, furniture, equipment & fence. They manage the electronic gate access by a computer software program controlled by a committee member. They also issue replacement cards, schedule pool parties at the request of homeowners and monitor the day to day activities at the pool. A pool maintenance vendor is contracted to service the pool. The vendor is responsible for the quality of the water and the maintenance of the equipment in the pool house. 6. Develop an understand of the banking arrangements and the three (3) separate accounts A. Checking day to day funds. This is the account used to deposit assessments and to pay budget expenses. B. Money Market Set aside funds. This is the account used to cover major expenses (>$1000) not provided in the annual budget. $2500/yr is budgeted annually for this fund. The maximum set aside fund has been $30,000 by previous boards. 4
5 C. Savings - Grinder Pump funds. This is the account from which repairs to the main grinder pump lines are made. The 24 homeowners on the grinder pump lines are responsible for any repair cost (Article VIII of Declaration) and are billed for any costs that exceed the account balance. D. A monthly financial report is board meetings together with the bank statement. Compare the information on each for discrepancies. The bank balance should be the same as the report balance. E. The Board decides who is to have access to the bank account and the level of access. They also decide on who can sign checks. F. Review the Major Expenses and Minor Expenses spreadsheets to understand how they are used in the budget process. 7. Study the Monthly Board Tasks and insure their completion. This list has been used to insure the timely completion of Board tasks. It is revised annually by the Board to reflect changing conditions. 8. Develop an understanding of the HOA insurance. A. The insurance policy protects the HOA assets, i.e. pool, fence, pool house, etc. and provides liability protection for the Board and Officers of the HOA. The policy is maintained in the permanent files located at a member s home. B. The policy period is for one (1) year beginning December 5th. The Board decides whether or not to renew or seek other quotes. 9. Become familiar with the grinder pump layout and the responsibilities of owners and the HOA. Reference Article VIII, Parcel Status, of the Declaration. A. There are 24 Lot that require grinder pumps because their sewer outlets are below the elevation of the City s sanitary sewer system. B. Homeowners are responsible for their grinder pump and the sewer line that leads from their pump to the main grinder pump line. C. The HOA is responsible for scheduling repairs to the main grinder pump line but the cost is paid by the 24 homeowners (either in advance or as a back charge). 5
6 D. The HOA has a grinder pump account with a small amount of funds for repair to the main grinder lines. 10. Review and become familiar with the SRHOA 2014 Contacts document. This is a useful listing of parties with whom the Association comes in contact throughout the year. It includes vendors, utilities, insurance, etc. 11. Actively participate in board meetings. A. Study the agenda and any attachments beforehand to improve the quality of the meeting and reduce the length of the meeting. B. Make your position known while respecting the position of other members. C. Stay on the subject under discussion. Diversions result in major delays and unnecessarily extend the meeting time. 12. Obtain login information to the HOA address and review incoming e- mails. This is maintained by a designated Board member but all members have access. The address is used to send timely notices to all homeowners having a shared address by the use of distribution lists. 13. Review the HOA website: including the homepage and the various menu items. Provide informational items to the webmaster for posting. 14.Review the existing contracts for pool maintenance, common area maintenance and the agreement with Sallee (Sallee provides for the common area mowing in exchange for the HOA allowing their the entrance and on lot 113-retention lot). This agreement will end when Sallee no longer considers it necessary and removes the signs. The HOA will then need to budget for the common area maintenance. 6
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