Jan 5, 2013 Meeting Minutes


Present in Person: Linda Flannery, Dave Halla, Johanna Tucker, Vicki and Dick Garvey
Present by Phone: Bob Voldish and Stephen Hill

• The meeting was called to order at 10:00 a.m.

• VOH Board Officers were elected by a unanimous vote of the Board:
• President: Linda Flannery
• Vice President: Dave Halla
• Treasurer: Stephen Hill
• Secretary: Johanna Tucker

• It was suggested and agreed that all emails sent and discussions amongst Board members and the Management Company involving Board business not be shared with anyone outside the Board or Management Company. It was also suggested that all Board members and the Management Company be copied on all email discussions on significant issues.

• Everett joined the conference call at 10:18 a.m. to reiterate the appropriate operation of the Board and coordination with the Management Company as well as to answer questions. His advice for effective Board Operation is complete transparency and inclusion amongst Board members and the Management Company. Everett addressed the following issues raised by specific questions:
• Bernadette McLoughin’s New Year’s Eve email to new board members was discussed and it was agreed that Everett will respond to it informing her for the third time that there is no implied contract for the Garvey’s to perform the pool operator function and that they have no obligation to perform this function for the Association. Bob suggested a write up in the next newsletter advising the community one more time about this issue.
• The 2013 board wanted it on record that it supports the Management Company and their policies and procedures and look forward to a successful year.
• At Dick’s request, Everett updated the Board concerning the case against Pool Solutions, Inc. for the completely inadequate job they did white-coating the lakeside and oceanfront pools. Everett informed the Board that we have won a judgment against Pool Solutions for approximately $32K, but cautioned that it may be difficult to collect as he has not been able to identify any assets for the company as of yet.
• Linda thanked Everett and the call ended at 10:32 a.m.

• VOH Committee operation and 2013 membership were discussed:

• Environmental Committee: There was a discussion about rotating committee members off the Environmental Committee on a regular basis so as to avoid replacing all members of the committee at once. It was decided to ask Fran Hamilton and Ralph Ashton to remain on the Environmental Committee for 2013. Steven Hill will act as the Board Liaison with the Committee. Dava Halla raised the issue as to whether or not the current structure of the Committee as outlined in the By-Laws makes sense for the future needs of the Association. After some discussion, it was agreed that the Board would give consideration to the structure of the committee in 2013.

• Landscape Committee: After discussion, it was agreed that the Landscape Committee was operating effectively as is. Beth Lutton will remain as Chairman and the membership of the committee will include current members Fran Hamilton, Beth Sigal, Donna Robinson and Dave Bova. Linda will act as the Board Liaison with this committee. It was noted that the Committee has formulated their Landscape Plan for 2013.

• Long Range Planning Committee: After discussion, it was determined that this Committee has not been operating effectively for the last several years and that the Board would disband it for 2013. During that time, the Board will give consideration and determine an appropriate function for the Committee so that when it is reformed it can be tasked with specific objectives and deliverables.

• 2012/2013 Capital Budget/Project were Reviewed by Dick:
• Repair of the asphalt walkway between tennis & sport courts is progressing.
• It was suggested that a sign stating “No Dogs Allowed on Courts” be purchased and posted at the entrance to the Sports Court.
• It was noted that the Management Company had nothing to do with the conversion of 2 of the 4 tennis courts to the sports court. Bernadette McLoughlin was responsible for the entire project, but has declined further contact with the contractor, who now claims that all of the cracks that have appeared are “new” cracks and not his responsibility. Based on emails and telephone calls made to the contractor by the Management Company, he has agreed to fix the cracks in the spring of 2013. It is highly questionable that the contractor will keep his word. It is highly probable that the cracks will re-appear year-after-year. It was agreed that the Board may want to look at other possibilities for use of the Sports Court.
• The main Oceanfront Dune Walk-Over Staircase was significantly damaged during Hurricane Sandy. Based on an inspection by the County Inspector, it was determined that the staircase was not built to current codes – in particular the 6×6 inch vertical support beams need to be buried 16 feet into the sand (note: the current beams are only 1 – 2 feet in the sand) which will result in a large increase in cost relative to the original estimate for the projected that was included in the 2013 Capital Repair & Replacement Budget. The walkway to the dune is in good shape, but the staircase must be completely replaced and is thus a major priority. A more user-friendly, split-staircase design will be constructed and CAMA is fine with the design as long as it fits within footprint of the existing staircase. Stephen suggested checking out mahogany for the new walkway. While the stairs must be addressed now, it was agreed that the addition of a deck would be delayed until a later year (note: deck addition would have required CAMA approval and would have delayed start of the project for a month – in addition, several 6×6 inch vertical beams would have to be installed to support the deck and difficulty in moving the equipment the west side of the dune was anticipated due to the lack of space between the pool building and the houses north & south of the building.
• Streets and parking lots are in dire need of crack repair. The previous Board refused to allocate money for that purpose in both the 2012 and 2013 Budgets. It has been 5 years since cracks were last repaired. Dick requested permission to fix/fill the cracks and recommended that VOH purchase their own equipment and handle the cracks in the future as they come up. Linda made a motion to purchase the equipment so we can fill current and future cracks. The motion was seconded by Bob and the Board voted unanimously in favor of the purchase.
• Phase 1 of the Homeport Court Drainage Project in December 2011 was completed for 43% less than the contractors estimate due to the Management Company acting as contractor for VOH. The $25,000 Budget for Phase 2 (December 2012) was based on a guesstimate by Dick and will be insufficient given the several unanticipated costs (e.g., hand digging the 6 foot deep trench due to discovery of several unmarked electrical lines, need for survey and comprehensive plan necessary to obtain NCDOT approval, higher than anticipated cost for materials etc.). The new estimate is at least $40,000 and could go higher. The overage will be funded from Capital Reserves. Bob suggests mapping where the utilities are as digging takes place so we have for future projects. Board gave Dick support to do what needs to be done to fix the drainage issue. Bob stated that the Association needs to prepare for when the Garvey’s end their contract with VOH in 2 years and are no longer handling the management of these projects at significant cost savings to the community. Vicki requested a vote on the increased budget for this project. The vote was unanimous in favor.

• EC Policy Change: The EC policy change eliminating the fees for new paint color approval and minor remodels was discussed. The Management Company noted that eliminating such fees eliminated a VOH revenue source and noted that it didn’t seem wise to do so at a time when assessments were being increased. The Board decided that they wanted to revisit this issue in early 2013 and determine if the fees should be reinstated. Stephen will discuss the situation with Cynthia Cygler, the outgoing Chairman from 2012.

• Jim Bickford Debt: The Management Company advised the Board that the debt owed to VOH by Bickford is currently $8,200 for Midlantic’s portion of the legal expenses associated with the lawsuit with OHE. In 2012, it was determined that Bickford is legally the original developer and, therefore, does not owe assessments for his lots. It is believed, however, that he – or a the new owner – will owe an Amenity Buy-In as defined in the By-Laws (of approximately $12,000 per lot) for 9 to 12 lots that he currently owns once they are final platted at some point in the future. Mr. Bickford also continues to hold title on VOH common area space including the Lake, the Westside Paths and the circle at High Dune Loop. While he is legally obligated to turn over these spaces to the Association he has not yet done so. Dave and Stephen will plan to meet with Bickford in 2013 to determine if these issues can be resolved.

• Westside Paths: The maintenance and disposition of the Westside Paths were discussed and a number of options were explored. This subject will be discussed again at future meetings.

• Lot 120- Jerry Steinbrink: The Board discussed a request by Jerry Steinbrink (Lot 120) that something be done about the eyesore created by OHE’s attempt to discourage trespassers on a vacant lot within OHE. Linda will discuss potential solutions with the president of the OHE Board.

• Accounting Update:
• Vicki informed the Board that she was in the process of closing the books for 2012 and that once closed she will coordinate with the Accountant on the 2012 taxes and the annual audit.
• Vicki also provided a brief update on 2013 Assessments stating that approximately 2/3 of the assessments have been paid year-to-date and that collection efforts including a one-time collection fee of $100 and finance charges will be applied to past dues assessments beginning February 1.
• Historical past dues assessments were discussed. Vicki has been successful in collecting several multi-year past due assessments over the past year, but raised specific assessment obligations that she will seek legal counsel on. A discussion was had about whether or not Everett Thompson was the appropriate attorney for collection issues. Vicki will discuss with Everett and seek his advice.

• Meeting adjourned.

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