CAROLINA SHORES PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
MARCH 17, 2008


MINUTES OF THE MEETING

Board Members Present: Mike Mundy, President; Joyce Dunn, Al Franklin, Dave Jones, Sally Nolan, Linda Pennington, Connie Six

Board Members Absent: None
Guests Present: Maslin Kain

Mike Mundy called the meeting to order and asked for approval of the minutes of the Board meeting of February 18, 2008. Sally Nolan moved that the minutes be approved, Joyce Dunn seconded, and the minutes were unanimously approved.

OLD BUSINESS

Selection of Attorney for the POA Board. Dave Jones recommended that the Board continue using Mark Napier. He noted that Mark Napier charges only $75 to write a collection letter for overdue POA dues and fines and the letters have been very effective in completing collection of overdue accounts for 2007. Napier also files liens on outstanding uncollected accounts. Joyce Dunn noted that she believes that the previous Board had begun having the Office Manager file liens and that the procedure for doing it is fairly simple. Joyce volunteered to look into doing it for the Board rather than paying Mark Napier. Joyce was instructed to file a lien on the home at 14 Topsail Court. Board members agreed to continue using Mark Napier for routine legal work and to consider using Ward and Smith (Wilmington) for more complex matters when appropriate. Mike Mundy will sign and return the form to Jeffcoat, Pike instructing them to release the CSPOA Board files to Mark Napier to take to his new firm.

Replacement of Keys to POA Office. Mike Mundy noted that the locksmith ("Jacks") has completed re-keying of the office area of the POA Building so that only two keys are required (one opens the outside door to the office and the kitchen door to the office; the other opens the Board office, the staff office, and the storage room). However, the two remaining keys do not open the door that leads from the outside ramp by the trash area into the board meeting room. Mike said that when the new POA/Pool/Tennis access system is completed by ADT the locksmith will change the lockset on the POA main door so that the old keys will no longer work. At that time he will re-key the outside door to the Board meeting room so it will match the two keys Board members currently have.

Financial Reports. Maslin Kain reported that the annual audit has been completed, but the auditors made an error in their written report that they will have to correct before providing final copies to the Board. The auditor's error was in reversing a POA journal entry that moved money from the Operating Account to the Reserve account during 2007. The POA journal entry was correct, but the auditor did not realize that the Board now maintains separate accounts for the two funds. Maslin also reported that the CSPOA excess of revenue over expenses for 2007 will be approximately $29,400 (the final figure is subject to official completion of the audit). Joyce Dunn moved that the Board pass a resolution moving that sum of money from the Operating Account to the Reserve Account, with the following wording:

"Resolved that the CSPOA Board of Directors authorizes the Board Treasurer to transfer the 2007 excess of revenue over expenses as stated in the annual audit to the CSPOA Replacement Fund."

Al Franklin seconded the motion and it was unanimously passed.

Dave Jones and Maslin Kain asked whether Board members had recruited any new members for the POA Audit and Finance committee. The answer was no. Joyce agreed to send an email to members asking for volunteers with a business or finance background. This will also be an agenda item for the April 21 Member Discussion Meeting.

Development of a Long Range Capital Expense Plan. Maslin Kain has asked the POA auditor for recommendations of a consultant to develop the POA's Long Range Capital Expense Plan. He suggested talking with Chicora Realty to see whom they use. This contact has led Maslin to hold preliminary discussions with two consultants, both based in the NY/NJ area, who have extensive experience. One had promised to send a proposal immediately. Maslin said that in the event these two firms are too expensive for the POA her next step will be to look for local home inspectors who specialize in commercial property inspections.

POA Security System. Mike Mundy has been looking into the value of the security services currently provided for the POA building by Coggins Security. They installed the security system in the POA office (that is no longer used) several years ago, along with a fire and fire alarm system for the building. The POA pays them $165 per quarter for monitoring the smoke and fire system. Since ATMC is now doing home security systems, Mike and Dave Jones have talked with them about taking over the POA security system. Their rate would be considerably cheaper, but they are not sure whether they can do because they do not do "commercial" property. Mike and Dave are determining how the POA building is taxed by Brunswick County (if it is taxed at a residential property rate then ATMC can consider it a residential property).

Landscaping Proposal from Coffey Grounds. Sally Nolan reported that the Garden Club has now received the specific landscaping proposal for re-doing the area around each of the main entrances to the community. (The Board approved the work at its February meeting, pending receipt of the written specifications.) Emily Sharp is handling this for the Garden Club. Sally will tell Emily to have Coffee Grounds begin the work.

[Note: Al Franklin reported that the Thomasboro Road entrance has been damaged twice recently by someone riding a motorized vehicle through the landscaping and "rutting" it. After the second incident he asked the Office Manager to notify the Sheriff's office about the problem. The Board instructed Sally to let Coffee Grounds begin working on the other entrances, but to hold up on starting at Thomasboro Road until we are able to solve this problem.]

Need for Signs Leading to POA Office. Al Franklin reported that the Sheriff's office left a message at the POA office saying that they had difficulty finding the POA building because of the lack of clear signs on Carolina Shores Drive showing where to turn. Board members agreed that this is a problem and better signs are needed. Mike Mundy will contact the company that did the gate and entrance signs for the POA and get recommendations and prices from them.

Beautification Around the POA Pool. Mike Mundy distributed copies of an email from a property owner urging that the Board replace the fence and landscaping around the POA pool. Joyce Dunn moved that the Board delay any landscaping activities around the pool until later this year when a plan is developed and implemented for the whole pool building and surrounding area upgrade. Sally Nolan seconded the motion and it passed unanimously.

New Access System for Pool/POA/Tennis Courts. Sally Nolan reported that ADT was nearly done installing the new access system for the pool, POA, and tennis courts. When complete, the system will allow members to access all three areas with a single card (or key fob). Training will be held March 18 for office staff and Board members on how to set up and maintain the computer database that manages the access system. Vaughn MacEntee will be present, since he is the expert on the POA member database.

NEW BUSINESS

Architectural Control Committee. Al Franklin reported that the ACC has received some complaints about satellite dishes being visible on front lawns. He does not believe there is much the Board can do about this because the dishes must be placed where they receive the best access to the satellites, which means putting them locations unobstructed by trees or landscaping. After discussion, the Board agreed with him that the only option is making a polite request to property owners that they do whatever landscaping they can around the dishes to disguise their presence.

Opening the POA Pool. Linda Pennington asked for Board input on when to open the pool and whether to hire the security company to provide security guards for 2008. Board members agreed that it is best to keep the pool opening date on Mothers Day weekend this year to ensure we have enough time to complete the new access system and distribute the new cards. The cleaning and preparation by volunteers will be done the week of May 5 and the pool will open on Saturday, May 9. Board members discussed two ways pool operations could be managed:


· Continue using security guards, but provide a more detailed contract and closer supervision of the service provided.
· Do not use security guards. Instead, install security cameras and motion sensor lights around the pool and picnic area and hire a handyman to go by the pool every night at closing and ensure that it is properly closed and the bathrooms are clean.


Al Franklin noted that incidences of vandalism have increased around the pool and picnic area, including damage to the bocce courts and several picnic tables. Joyce noted that Carolina Shores North had problems with vandalism at their pool, so they installed a security camera that quickly got images of the offenders, who were prosecuted. Since those offenders were prosecuted there have been no other incidences of vandalism at their pool. Mike Mundy suggested getting a proposal from ADT for installing and maintaining a security camera system. Board members agreed to postpone a final decision until the April meeting.

Linda Pennington and Mike Mundy will take care of completing replacement of the old pool furniture, which was started in 2007.

Distribution of the New Access Cards. Board members discussed how to distribute the new POA/pool/tennis court access cards to members. After discussion, Joyce moved that it be done as follows:

The POA Office will send each owner of a residential property in the community a letter explaining the new system and a single access card (with a number assigned to that person). There will be no charge for the first card. The letter will instruct members that each property owner may have up to two cards. To obtain a second card (or to exchange the card they received for a "key fob"), members must come to the POA office and pay a nominal fee.

Sally Nolan seconded the motion. Six members voted aye; Al Franklin abstained.

Joyce Dunn will organize the letters and the mailing. Sally, Connie, and Linda volunteered to help stuff envelopes.

POA Insurance. Dave Jones reported that he met with Dwight Flanagan of State Farm insurance to discuss POA insurance coverage. We pay $13,718 per year for our property insurance, including Board liability coverage and a $1M umbrella liability policy. The current policy has a $1,000 deductible. Raising our deductible to $5,000 would reduce the cost of the policy by $2700 per year. Our insurance also includes power surge protection for electronic equipment (at a cost of $108/year); and employee dishonesty insurance (which includes Board members) coverage up to $10K at the cost of $110 per year. The employee dishonesty insurance coverage can be increased to $100,000 per year at a cost of $237 more per year.

Joyce Dunn moved that the Board increase the policy deductible to $5,000 per year and the employee dishonesty coverage to $100,000 per year. Linda Pennington seconded the motion and it passed unanimously.

Dave Jones then noted that the current insurance coverage on the signs within the community is limited to $500 per year. The Board directed him to get more information on exactly what this covers and what it would cost to increase it to the actual replacement cost of each sign.

Bank Deposit Insurance. Dave Jones reported that he First Federal is going to provide the POA with a "Pledge Agreement Custody Receipt" letter that guarantees coverage by the bank for any POA funds held there in excess of the $100,000 deposit insurance provided by the FDIC. He will give this letter to Joyce Dunn to put in the POA's safety deposit box when it is received.

Plans for Member Discussion Meeting April 21. Mike Mundy reported that he has invited an ATMC representative to do a short presentation at the Member Discussion Meeting on the ATMC home security system and the discounts they are willing to offer to POA members. He asked for suggestions of other agenda items. Joyce reported that there is an article in the April Bulletin announcing the meeting and requesting that members submit agenda items in advance or just come to the meeting prepared to bring up topics of interest to them. Mike will ask the Board Standing Committee chairs if they have any actions to report at the meeting. He will urge each of them to attend and be recognized at the meeting but they will only report if their committee has met and made recommendations to the Board since the new Board took office.

There being no further business, the meeting was adjourned.