CAROLINA SHORES PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING

SEPTEMBER 25, 2006
MINUTES OF THE MEETING

BOARD MEMBERS PRESENT: Joyce Dunn Davis presiding; Monty Craig, Bill Harniman, Nancy Harthausen, Mike Mundy.

APPROVAL OF THE MINUTES. The Board voted unanimously to approve the minutes of the July 2006 Board Meeting.

TREASURER’S REPORT. Bill Harniman discussed and distributed copies of the procedure he is using to prepare a long-range assessment of the financial requirements to maintain and/or replace the CSPOA’s capital equipment and property. For several years the annual audit of the CSPOA’s finances has included a recommendation that an in-depth analysis of future financial needs be done by an expert consultant. Bill has met with a local expert and learned that hiring a consultant will cost $3-12K. However, the local expert was willing to share with Bill a software package he uses to do the analysis. Bill is currently reviewing past CSPOA records to develop accurate information about when previous repairs and upgrades were done, then using a nationally recognized construction costing manual to determine the future costs of repairs or replacements. All of this information goes into the computer program, which then will project how much money per property owner must go into the reserve account over a period of years in order for the funds to be fully available in the account when each repair or replacement is needed. Bill expects to complete this analysis before the annual budget meeting and will make it available to members for review and discussion.

FINANCE AND AUDIT COMMITTEE. Chair Maslin Kain presented the report. She noted that the CSPOA’s operating budget and finances are in very good condition. The committee recommends that the Board review and take appropriate actions on the following items:


• Consider increasing the deductibles on the CSPOA insurance policies in order to reduce the annual cost of the insurance;
• Examine ways to reduce the utility and maintenance costs for the swimming pool during the months when it is not in use;
• Vote to transfer the 2005 excess of revenue over expenses into the reserve fund (the money is available, but must be transferred by a vote);
• Complete a study of fixed asset maintenance costs (currently underway by the Treasurer);
• All board members read and review the report of the 2005 Audit.

FACILITIES MAINTENANCE COMMITTEE. Chair Joe Martere was unable to be present, so Board member Mike Mundy presented the report. Currently they are having roofers inspect the clubhouse roof (parts of which are still the original roof) to determine its condition and future maintenance/repair needs. They have completed a study of the signs in the community and will be getting estimates for the repair or replacement of the “gates” signs and some of the larger community entrance signs. They have purchased three bike racks and all will be installed (by the pool, tennis courts, and clubhouse) by the end of October. All are expandable if future needs increase. They have obtained an estimate for complete replacement of the swimming pool’s concrete deck (which has had a number of partial repairs and is gradually deteriorating to the point that it will not pass a county inspection). The estimate from our present pool maintenance company is $80K. Mike and Joe will be seeking other estimates and alternatives.

RECREATION COMMITTEE. Co-Chair Sandy Howard presented the report. He began by extending high praise to the outstanding leadership of his co-chair, Bob Anthony. Since its inception in the spring of 2006, the committee has been able to initiate a number of improvements and additions to the recreation needs of the community. They have conducted tennis lessons for children; worked on three annual POA picnics; and suggested the installation of bike racks. Currently they are working on installing a small set of bleachers outside the tennis courts, so that people waiting to play or watching play will have a place to sit. They are using treated lumber that has been donated to them, so the cost to the POA will be quite minimal. They will remove the old, deteriorated, chairs currently located outside the courts. The committee also has provided recommendations for improving the annual picnics and the holiday party. Sandy concluded by noting that the committee has discussed at length how to address the conflicting needs of the older swimmers vs. the child swimmers at the pool in the summer and concluded that there is virtually no way to make everyone happy!

COMMUNICATIONS COMMITTEE. Chair Bob Jones reported that his committee members have been busy working on improving communications in the community. Their efforts include operating the CSPOA web site, producing the “Newcomers Booklet” that is given to new community members, producing the monthly Bulletin, and publicizing community events. The committee plans to meet with Athens Publishing (who are producing the member directory) to learn more about their work in producing newsletters at no cost for other local communities. Currently, printing the Bulletin costs about $600 per month and this cost could possibly be eliminated by working with Athens Publishing.

NOMINATING COMMITTEE. Chair Nancy Harthausen reported that the committee is at work soliciting nominees for the 2007 Board election. Three of the current seats on the board are up for election this year (those occupied by Joyce Davis, Mike Mundy, and Nancy Harthausen). In addition, two more seats will be filled in order to bring the Board membership to a total of seven (for the first time). In order to maintain the current ratio of having approximately half of the board seats up for each year, four of the open positions will be filled for two-year terms and one open seat will be filled for a one-year term. By doing that we will have a board structure where in 2008 there will be four seats elected and in 2009 there will be three seats elected. The following process will be used to determine which candidate receives the one-year term this year:

• If only one candidate announces a preference for a one year term, and that person is elected, he/she will get the one-year term.
• If more than one candidate prefers a one-year term, the one with the highest votes will win the term.
• If no candidates indicate a preference for a one-year term, the candidate who comes in fifth place in the election will get the one-year term.

ARCHITECTURAL CONTROL COMMITTEE. Chair Stuart Henderson was unable to attend so Board Member Monty Craig presented the report. He read portions of a written report from Stuart Henderson, in which he explained his desire to reduce the paperwork of the committee and to, wherever possible, resolve problems with personal communications before resorting to letters.
He has done this successfully several times already. Monty reported that the ACC and the POA Board are addressing several properties where absentee owners have been unresponsive to written efforts to get them to clean up their property. They have been sent final notification from the Board and must respond in a designated time or the Board will initiate and pay for the cleanup and then assess the homeowner the cost.

OLD BUSINESS. Joyce Davis reported that the CSPOA Member Directory is in the process of being printed and will be distributed with the November Bulletin. She also reported that the recent AARP Driver Safety class conducted at the POA was a success and will likely be repeated in the spring.

NEW BUSINESS.


• Nancy Harthausen reported that the CSPOA Holiday Party will be held on Sunday, December 3.
• Joyce Davis distributed copies of the Member Survey underway and reported that it will be included in the October Bulletin and mailed to property owners. She urged everyone to complete and return it and to get their friends and neighbors to do the same so that the results will be sufficient to guide Board decisions. The results will be used to make decisions about the 2007 operating budget.
• Input was requested from the members present about how to make the Board of Directors election ballot less confusing and still meet legal requirements. Mary Fran Ryon indicated that she has experience with absentee voting and will contact her colleagues in Maryland to see what they do.
• Input was requested from the members present about how to improve the community signage. Suggestions were made that all signs be done in reflective paint so they can be read more easily at night and that the vegetation around them not be permitted to grow so high that it obscures them. A request was made by the Garden Club that the community sign at Thomasboro Road be lighted if cost permits.
• The Calabash Fire Department has asked the Board to cooperate with them in their project to get a “File of Life” kit into the home of every resident. These kits contain a form that each person completes with important medical information (health problems, allergies, medications, emergency contact, etc.) and then post on their refrigerators so that EMTs coming to a home have immediate access to critical medical information about the patients. Joyce Davis has asked the Fire Department to provide enough kits for the Bulletin distribution team to take deliver them with the November Bulletin. This would ensure that a kit would get into each home in the community.

MEMBER COMMENTS AND QUESTIONS. The following comments and questions were offered by members in attendance:
Who takes care of mosquito spraying? Joyce Davis responded that this is done by the Brunswick County Health Department and they have been out doing it recently. She noted that this problem only becomes severe after a period of major rainfall, which seems to happen each August or September. She suggested that POA members look into buying “Mosquito Dunks” at hardware stores and putting them into all standing water near their homes. These dunks kill mosquito larvae, which develop in standing water.


• Isn’t the Board supposed to transfer each year’s excess of revenue over expenses into the CSPOA Reserve Fund? Bill Harniman replied that the answer is yes – and the Board will vote at its next meeting to do so.
• Please double-check the last date on which the tennis courts were resurfaced. The treasurer’s evaluation of capital property maintenance may include the wrong date. The correct date is 2000 or 2001.
• Will the Board please regularly publish statements of profit and loss, the balance sheet, and the statement of member equity in the community? Bill Harniman replied that all this information is available to any member at the POA office and that it will be published in the Bulletin.
• Isn’t there some way to reduce the hours of the swimming pool security force after Labor Day, when the use of the pool drops significantly? Mike Mundy replied that the Board intends to conduct a full discussion of all of the methods and costs of operating the pool and the security contract will be included.
• Why is the pool closing early this year? Joyce Davis replied that it is being done to reduce the operating costs since the usage of the pool has dropped so significantly in recent weeks.
• Why aren’t the pool bathrooms and the deck kept cleaner? Why aren’t the security guards continuing to clean those areas? Joyce Davis replied that the security guard contract (which currently costs approximately $17K per year) only requires the company to provide security services. They are not a company that provides cleaning services. The bathrooms are cleaned twice weekly by the same company that cleans the clubhouse. Any addition cleaning activities will require additional staffing and funding. The Board will be considering all of these options.
• Why aren’t there more community volunteers helping with the operations of the pool – in earlier times many homeowners became involved, but now people seem to want excellent conditions maintained without excess cost or volunteer assistance? Joyce Davis replied that this is a serious problem. The only “volunteer” working regularly on maintaining the pool is Board member Mike Mundy, who has lots of other major requirements on his plate as well.
• What is the value of the pool as a ratio of the CSPOA Reserve Fund? Bill Harniman replied that he does not yet know that, but will be including it in his program. The pool was originally built for $150,000, but that cost will be considerably higher now.
Could we please clean the bathrooms during the three POA picnics? They quickly get very dirty and run out of supplies when a crowd is present. Joyce Davis replied that this is definitely a need, but there is also a cost associated with it. The Board will discuss it.
• Who is building the bleachers by the tennis courts? How large will they be? Will they be a safety/liability issue? Sandy Howard replied that volunteers are building the bleachers, and they will be small and safe.
• If we use Athens Publishing to produce the CSPOA Bulletin, will they also distribute it? Bob Jones replied that the Communication Committee will ask that question when they meet with the publisher. Joyce Davis noted that Athens Publishing is a publishing/printing company and not a distribution company so it is very unlikely they would get involved in distributing the copies to CSPOA members.

There being no further questions or discussion, the Board meeting was adjourned at 8:30 p.m.