CAROLINA SHORES PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
MONDAY, JULY 21, 2008

MINUTES OF THE MEETING


Board Members Present: Mike Mundy, Al Franklin, Joyce Dunn, Sally Nolan, Linda Pennington, Connie Six, and Dave Jones
Board Members Absent:
Guests Present: Maslin Kain, Assistant Treasurer; Cathy Gulliver & Nancy Harthausen, Finance and Audit Committee

REPORT FROM THE TOWN LIAISON

Mike Mundy reported that the Town Liaison, Tom Puhls, was unable to attend this meeting and had asked Mike to report the following:

The town would like to borrow 100 folding chairs from the POA for the dedication ceremony for the Town Hall addition. The POA Board members agreed that the town may borrow the older (brown) folding chairs but not the newer (gray) ones.

The town has left copies of a town newsletter in the POA Clubhouse for members to take. Joyce Dunn will email the newsletter to the POA Member distribution list.

The town asked whether the POA Board has decided to make the POA clubhouse available as a shelter in the event of a major evacuation. Board members responded that they are not able to discuss this request further until the town provides a more complete disaster response plan specifying how the shelter would be staffed and operated and who would be responsible for providing meals and other supplies for people who come to the shelter.

Mike Mundy reported that at the most recent meeting of the Town Commissioners he learned that Don Hart has written a letter to the town strongly urging that the town accept full responsibility for maintenance of all of the swales in the town in order to ensure that the water runoff system for the town operates effectively and without any disruption caused by improper maintenance of individual lots in the town.


REQUEST FROM A MEMBER


POA member Joe Roundy appeared at the meeting unexpectedly in order to make a presentation urging the Board to change its position on allowing the American Legion to hold its picnic at the POA picnic grounds. The Board agreed to discuss the matter later in its meeting and get back to Mr. Roundy.

OLD BUSINESS

Minutes of the June Meeting. Dave Jones moved that the minutes of the June 2008 meeting be approved as amended. Linda Pennington seconded. The motion passed unanimously.

Finance and Audit Committee. Dave Jones and Maslin Kain introduced the new members of the Board Finance and Audit Committee - Cathy Gulliver and Nancy Harthausen. The committee has held its first meeting and Cathy agreed to serve as chair. Cathy presented this list of procedural recommendations to the Board:

Insurance: raise the deductible to reduce the cost

Utilities: monitor all utility bills closely to ensure early discovery of any problems (e.g., the broken toilet in the men's room) that will increase the bills unnecessarily.

Pool and Maintenance: Install a separate meter for the water used by the pool to avoid sewer charges

Grounds Maintenance: Require bids for contracted maintenance

Assets: Recommend that any and all CDs that have over the FDIC insured amount of $100,000 be transferred to a money market account (re: First Federal $143,000)

The Board noted that some of the suggestions had already been addressed and that the remaining suggestions would be discussed and responded to by the Board.

Maslin Kain noted that the interest generated by CSPOA reserve funds invested in CDs is now being transferred directly into a money market account. Currently there is $6200 in the account.

Cathy and Nancy then presented to the board a budget item request form they are distributing to all Board Advisory Committees and to each board member to help develop the POA's 2009 Budget. The forms should be completed and returned to Cathy or Nancy by August 1.

The Board then discussed the schedule and process to be used to prepare and finalize the 2009 budget:

The draft budget will be included in the November issue of the Bulletin

A Member Discussion Meeting will be held on November 17 with the Finance and Audit Committee will presenting the budget and taking member comments.

The budget will be finalized by the Board at its December meeting.

Sally Nolan, who is the Facilities Maintenance Liaison from the Board, will be responsible for obtaining bids for the grounds maintenance contract. Before requesting bids Sally will update the proposed contract to include all of the extra tasks that have been assigned to the current contractor (Coffey Grounds) this year. Linda Pennington reported that she has been contacted by a company interested in bidding and she will give that information to Sally.

Replacing the Clubhouse Carpeting. Joyce Dunn presented bids from North State Flooring and Williams Carpet for replacing the carpeting in the clubhouse great room and library with high quality commercial grade carpeting with a 10-year guarantee. Al Franklin presented a bid from Grand Strand Floors. Since the Grand Strand bid was not on the same brand and grade as the other two bids Al agreed to go back to them and obtain a bid that could be compared to the other two. Maslin Kain noted that the 2008 POA budget includes a line item for improvements to the clubhouse so the POA can afford to get this job done in 2008 without going over budget. Board members agreed to table the discussion until the August meeting and then compare the three similar bids and make a decision.

Reserve Study Report. Mike Mundy reported that he had received and shared with Board members an Excel spreadsheet prepared by the Reserve Study firm, but he had not yet received the comprehensive written report. The Board agreed to table discussion of the study until they receive read the complete report. The Reserve Study will be on the agenda for the August 18 Member Discussion Meeting.

Recreation Area Advisory Committee. Linda reported that the new committee held its first meeting and after lengthy discussion recommended to the Board that the fence around the swimming pool be extended so that the bathrooms are within the fence and members do not have to go in and out of the gate in order to use the bathrooms. Board members discussed the recommendation and determined that before acting on this recommendation they need the committee to hold broader discussions about the entire recreation area so that all potential changes are considered at the same time in order to ensure effective planning and cost control. Linda and Sally will schedule another meeting of the committee to discuss this.

Golf Course Advisory Committee. Mike Mundy reported that the committee will present its recommendations to the board at a Board Executive Session on July 28.
The Board then will be discuss the recommendations and be prepared to present the issue at the August 18 Member Discussion Meeting.

Pool Video Security System. Mike Mundy reported that he had arranged for ATMC to install a new telephone line at the pool house so the security camera system can connect to the Internet, allowing Board members to review the system from the CSPOA office computers or their home computers. Gary Stewart is helping with the Internet connection. The cameras currently are operating and recorded data can be viewed at the pool house.

NEW BUSINESS

Use of POA Facilities for Private Events. The Board held a lengthy discussion of Joe Roundy's request for the American Legion to use the POA picnic area for their annual picnic. The point of discussion was whether this would be a violation of the CSPOA Articles of Incorporation, which state "The Corporation shall not make its social and recreational facilities available to the general public." Several Board members held that any CSPOA member should be able to rent either the clubhouse or the picnic area for a private event, providing that they comply with POA policies for use of the facility and that nothing in the CSPOA procedures specifies which people or how many people they may invite to such an event. Al Franklin made a motion that:

"Any CSPOA member in good standing can reserve the use of the POA clubhouse or picnic area for a private event if the member signs a contract agreeing to the regulations stipulated by the Board for the use of the facility."

Sally Nolan seconded the motion and it passed unanimously.

The Board then agreed that the current rental policies and contract for private events do not adequately cover the picnic area and must be updated to include the following:

The rental fee and security deposit for use of the picnic area will be the same as for the Clubhouse ($100 rental fee and $50 security deposit).

Members hosting private events at either location may not publicly advertise the event and may not charge an admission price or suggest that attendees donate a specific amount of money.

Use of a sound system with speakers and/or music at the picnic area must not disturb the homeowners living in that area.

No alcoholic beverages may be sold or served by the hosting person/group at the clubhouse or the picnic area.

Members reserving the picnic area are responsible for leaving the area exactly as they found it (including removing all of their trash and leaving the picnic tables as they were found).

The CSPOA's gas grill will not available for use at private events.

Joyce Dunn will update the existing contract to include this information and email it to the other Board members for comments. She also will inform the office staff about the changes. Once approved, the contract must be signed by any member seeking to reserve the clubhouse or picnic area. Mike Mundy will notify Joe Roundy of this requirement.

The Dividers in the Clubhouse. Linda Pennington suggested that the dividers in the clubhouse be removed, noting that one of them is broken and hanging from its track, and the dividers are never used. Sally Nolan noted that the dividers will have to be removed when the carpeting is replaced. After discussion the Board agreed to have the dividers removed.

Establishing a House Committee. The Board discussed the need for regular oversight of the operation of the clubhouse. Mike Mundy noted that Marlene Stewart had already agreed to oversee the kitchen and asked if she could be the House Chair. Joyce Dunn replied that Marlene has not agreed to work on anything other than the kitchen and would have to be asked about taking on further responsibilities. Mike said that he had been given the name of another potential House Committee chair. Joyce Dunn agreed to meet with the two people and find out what they are willing to do. She will report back at the next Board meeting.

Chairs for Future CSPOA Picnics. Linda Pennington reported that preparations are in place for the Labor Day picnic, but she believes that the Board needs to find other chairs for future picnics - ideally a different person for each picnic since the workload for the chair of each picnic is hot and demanding. Board members agree and will put this topic on the agenda for the August 18 Member Discussion Meeting.

Problems with the Pool Parking Lot. Linda Pennington noted that when the pool parking lot is fully occupied it is difficult for cars leaving the lot to get around parked cars and onto the road, which results in most cars having to drive onto the grassy area where the two points meet. This area is deteriorating and must be repaired to avoid further problems. Linda recommended that the entrance to the parking lot must be widened at that point. Al Franklin agreed that he has seen the problem and will look into what it will take to improve the road.

Architectural Control Committee Report. Al Franklin reported the following ACC recommendations:

· Variance request for 7 Court 7 Northwest Drive: the ACC recommended approval of a variance request by the homeowner permitting the installation of a bedroom window provided that the homeowner install a privacy fence 6' to 8' tall and extending no less than one foot on each side of the window. Al moved that the Board approve the variance, Sally Nolan seconded, and the motion passed unanimously.

Changes to ACC Complaint Form. The ACC recommended changing the POA Member Complaint Form to add a section indicating what actions the member has personally taken to remedy the problem and a section indicating what section of the Deed of Restrictions the member believes is being violated. Joyce Dunn moved that the changes be approved after changing the form to spell out the words "Deed of Restrictions" rather than use the abbreviation "DOR." Al Franklin seconded the motion, and it passed unanimously.

Variance Request for Installation of Gazebo at 76 Carolina Shores Parkway. Al Franklin moved that the variance be approved providing that the Carolina Shores Parkway side of the gazebo is placed 48.l6 feet from the Carolina Shores Parkway side property line of the property and that the homeowners plant a screening stand of trees on the Carolina Shores Parkway side of the gazebo. Joyce Dunn seconded the motion and it passed unanimously.

Dave Jones noted the importance of ensuring that the ACC keep members who have filed complaints informed about the ACC's efforts to resolve the complaint. Al Franklin agreed and said he would remind the ACC members about this and ensure that they complete the bottom section of the new Complaint Form with clear and thorough information about their actions.

Sale of CSPOA Buffer Zones. The Board discussed whether to allow members to purchase the buffer zones adjacent to their property that are owned by the CSPOA. After discussion Joyce Dunn moved:

Resolved that the Carolina Shores Property Owners Association will not sell any of the buffer zones it owns.

Al Franklin seconded the motion and it passed unanimously.

Liens Against Homeowners for Unpaid Dues and Fines. Joyce Dunn reported that she has learned how the CSPOA can file its own liens against homeowners (in order to avoid legal costs) and she has filed a lien against a homeowner who owes over $500 in back dues and fines. Joyce will put a file in the CSPOA office with complete instructions about the process of filing liens.

There being no further business, the meeting was adjourned.