CAROLINA SHORES PROPERTY OWNERS ASSOCIATION
BOARD PLANNING MEETING
OCTOBER 28, 2006

MINUTES OF THE MEETING


2007 OPERATING BUDGET

Treasurer Bill Harniman led a line-by-line discussion of the proposed 2007 POA Budget. The Revenues section of the budget was revised to delete items such as “sale of property” (which refers to the one-time sale of a piece of POA-owned property in 2005), “Reserve Transfer” (which will not ever be done as a means of providing routine operating funds for the POA), and “ACC Fines” (since such fines are neither predictable in their amounts nor appropriate as a source of POA operating funds). Additional inappropriate or unused line items were removed from the Administrative and Maintenance sections of the budget.

The Board discussed line items that represent significant yearly expenses and concluded the following:

1. The BEMC Electric Bill for the POA. Mike Mundy is conducting a review of this bill, including what the POA spends on such items as outside security lighting for the clubhouse, the pool, and the tennis courts. He plans to have an ATMC representative come to Carolina Shores and walk him through all of the equipment and service we are currently paying for, to ensure the we have adequate information in the POA office and that we make reductions in costs wherever possible.

2. The ATMC Bill for Phones, Cable TV, and Computer Services. Mike Mundy has reviewed all of these areas. The Board agreed that the POA clubhouse TV does not need expanded cable service, so that will be reduced to the basic level. The POA office fax machine does not need a separate phone line, so that will be eliminated and bring another cost reduction. ATMC has, for the past two months, added charges from a third party vendor to the POA phone bill, amounting to a total of several hundred dollars. Mike tracked these down and determined they are unauthorized charges from vendors we do not do business with. As a result, ATMC is no longer transmitting the charges and the two companies involved are repaying the CSPOA for what they have already collected. Mike also determined that the POA is receiving internet services from both ATMC and Carolina Shores.net. He is working with both companies to remove the duplications.

3. Brunswick County Public Utilities (POA Water Bill). The POA water bills have fluctuated dramatically and unexplainably during 2006. Mike Mundy is arranging for a representative to meet with him to walk through the entire water usage, irrigation, and metering systems throughout the community in order to collect that information and maintain it in the office while having the water company explain and/or correct the billings we have been receiving.

4. Insurance. Bill Harniman is still waiting to hear from State Farm Insurance what – if any – increase will be made in the CSPOA Property insurance for 2007. He expects that the figure in the budget will increase, because most homeowners have received a significant increase this year, but will not know until the local Nationwide office can get the answer from their national office.

5. Legal Fees. The current Board of Directors has significantly reduced the use (and annual cost) of legal services provided by the CSPOA Attorney. At the advice of the attorney, the Board is making every effort to resolve ACC-related problems directly with the homeowners rather than involving the attorney in cases where we are unlikely to prevail in court and even if we do win, the amount we could win would be far less than the cost of having the attorney represent us. However, this Board noted that the Board membership will change significantly in February and we cannot guarantee that future board members will continue a non-litigious approach to ACC enforcement. Thus, the legal fees could easily begin rising again.

6. Landscaping & Grounds Maintenance. Mike Mundy is doing a survey of CSPOA landscaping and grounds maintenance requirements with our current contractor, Coffey Grounds. It is time to renew the annual contract, and during the past year the Board has frequently requested additional services not covered by the current contract (such as cleaning up buffer properties owned by the POA throughout the community). We expect the new contract to be more explicit and to increase somewhat in cost.

After discussing the entire budget, the Board agreed with Bill Harniman that it is a reasonable budget with cost increases noted only where we clearly know costs will be rising. The bottom line is that, if all goes well in 2007 and no large unexpected expenses occur, we still would only have an excess of income over expenses in the range of $15-20K. This is not a sufficient amount of cushion in a regular operating budget and it definitely is not a sufficient amount to allow an appropriate year-end deposit into the CSPOA reserve account. As a result, the Board is proposing to raise the CSPOA annual member dues by $10 from $158 to $168 per year.

Addition to CSPOA Reserve Account
The Board unanimously passed a resolution to move the 2005 operating budget’s excess of income over expenses -- $33,768 – into the CSPOA Reserve Account.

Process for Handling CSPOA Office Accounts Payable
The Board voted to establish a policy for the CSPOA office that all accounts payable will be paid only on the 1st of the month and the 15th of the month (or the nearest working day after those two dates). Two of the three officers authorized to sign checks will come to the office when the checks are ready and will jointly review each invoice before signing the checks. In cases where a vendor requires payment on delivery (such as the picnic grill equipment) the vendor will have to provide an invoice in time for the check to be prepared on the 1st or the 15th of the month in order to be available at delivery time. This policy will include all checks being written in the CSPOA office (including building deposit refunds), with the only exception being paychecks for the office staff.

Replacement of Carolina Shores Entrance and Gate Signs
For the past year, POA members have regularly noted that the Carolina Shores entrance signs (on Country Club Road, Persimmon Road, and Thomasboro Road) and the “Gate” signs along Country Club Road are badly deteriorating and the gate signs are difficult to read. Mike Mundy has obtained preliminary estimates from two companies, and expects the final cost to be approximately $20,000 for a company to provide and install all new signs and remove the old ones. This cost would come out of the Reserve Fund. Mike expects to have the final bids ready for a vote by the Board at the November 13 meeting. He also is exploring with BEMC the cost of installing lighting for the sign on Thomasboro Road.

Swimming Pool Maintenance and Operating Costs
Mike Mundy is obtaining information about the possibility (and cost) of hiring a pool management company to take over full responsibility for the regular maintenance and operation of the pool. Currently the POA pays a pool cleaning company to clean and treat the pool every day, a security company to provide daily security personnel, and home cleaning company to clean the bathrooms and locker rooms twice a week. There is nobody – either paid or volunteer – responsible for keeping the pool tables, chairs, and deck clean on a daily basis or to maintain the bathrooms, locker rooms, and pool office space between professional cleanings. The Board will be exploring over the next two months all of the options available for providing better pool management. In addition, Mike will explore and propose to the board ways to make the pool bathrooms more attractive (including new paint, new wall fixtures, etc.).


MEMBER SURVEY RESULTS

Joyce Davis reported that the 2006 survey of CSPOA members has been tallied and a short summary written of the results. The complete results will be distributed at the November 13 Board meeting, put on the CSPOA web site, made available through the POA office, and published in the December issue of the Bulletin. Because it is nearing the end of the term of the current Board, the members agreed that any significant changes or expenses resulting from the survey results should be left up to the new Board that will be put in place in the February 2007 election. Any ideas that can be implemented with minimal cost will be considered prior to that time.


2007 BOARD ELECTION

Nancy Harthausen reported that 11 candidates had come forward for the 2007 Board election of five seats. The nominating committee has asked each candidate to provide written responses to a questionnaire about their backgrounds and goals. Their responses – along with a photo of each – will be included in the December Bulletin and will be put on the CSPOA web site. In addition, there will be a candidate forum at the POA on January 7. Ballots will be mailed the first week in January, and the election will be held the first week in February.


HOLIDAY PARTY UPDATE

Nancy Harthausen is working with the Trestle to arrange for catering of the December 3 CSPOA annual holiday party.


BIKE RACKS

Mike Mundy (with help from Bob Anthony and Monty Craig) has installed two bicycle racks at the tennis courts and one rack at the clubhouse for use by POA members needing exercise. In the spring he will add another rack by the swimming pool. This was done in response to POA member requests.

ACC COMPLAINT FORM

Monty Craig reported that the ACC member complaint form has been updated and asked the Board for comments and corrections. After incorporating their response, Monty will forward the complaint form to webmaster Gary Stewart to be made available on the Carolina Shores web site. This form conforms to the Board’s policy of requiring that all member complaints be made in writing and be signed by the complaining member.