Call to Order: President Pete Gulliver called the regular meeting of the Board of Directors of the Carolina Shores Property Owners Association to order at 2:00 P.M.

Board Members Present: Pete Gulliver, Bob Jones, Kerry Jarrell, Al Franklin, Brent Horten, John Manning, and Mike Riccitelli.

Approval of Minutes: Kerry presented the minutes for the regular Board meeting of June 13th. Bob Jones asked that Mr. Wells name be replaced with his tenants name, Ken Smith, who was in attendance at the meeting. John moved for acceptance of the amended minutes. Kerry seconded the motion. The motion passed unanimously.

Resident comments agenda items only:

Dan Mann, 77 Persimmon Road, objected to the requirement that Board members sign a non-disclosure agreement. He felt that he was not being represented fully with Al Franklin's exclusion from such sessions.

Peter Kirkby, 19 Gate 6, questioned whether the non-disclosure agreement was legal in NC. He felt that the Board should not require the non-disclosure agreement of directors or other volunteers.

Dan and Sue O'Reilly, 27 Pinewood Drive, Betty O'Rourke, 27 Calabash Drive, and Larry Darby, 2 Bayberry Circle, also expressed concern about the non-disclosure agreement.

Al Franklin commented that he would not sign the non-disclosure agreement because it was not required in the bylaws.

Pete Gulliver stated that pages 5 and 6 of the Articles of Incorporation give the board the right to adopt, alter, amend or repeal bylaws not consistent with the Articles of Incorporation or the laws of the State of North Carolina for the management and control of the corporation. Pete stated that the agreement is designed to keep private information from becoming public and that 6 of the 7 directors signed the agreement.

Kerry Jarrell stated that the CSPOA's attorney recommended the agreement and provided guidance in the preparation of the document. He further explained that the purpose of the agreement, in part, was to remind volunteers to keep private information private. Such information might include a member's personal financial information, unlisted phone numbers, emergency contacts, etc.

Kerry stated that no votes are taken in executive sessions. Therefore Al's voting rights had not been taken away.

Joanne Bendy, 5 Niblick Court, said as a teacher she was required to sign a confidentiality agreement and felt that it was not an unreasonable request to have the board members sign. She also stated that Al had excluded himself from executive sessions since it was his choice not to sign the agreement.

John Bendy asked if there was an executive session every meeting. Kerry explained that only confidential matters were discussed in executive session, and that they were not necessary at every meeting.

COMMITTEE REPORTS

Architectural Control: Bob Jones spoke about a copy of a certified letter that Pete had received and given to him. It was a complaint from Peter Kirkby's neighbor. Peter Kirkby asked to appear before the Board to respond to the letter. Bob pointed out that if Peter's comments would be part of the record, then he would need to read the complaint letter first. Peter did not want the letter to be part of the record so it was decided to address the matter in executive session.

ACC Minutes: Pete brought up two items on the minutes of June 15th and July 6th relating to leaning trees. Pete noted that ACC has been approving removal of many leaning trees. Present tree removal policy does not cover this without an arborist's opinion. Peter Kirkby expressed that the ACC feels that we do need this criteria added to present policy. Bob Jones and Peter Kirkby will work on revising current policy.

Mike Riccitelli introduced Rick York from ADT. Rick proposed that CSPOA buy new security equipment for the pool. Purchase price would be $6980.00 to be paid monthly for 60 months at the rate of $173.64 with a $1.00 buyout fee at the end of the lease. The monthly maintenance and service fee from ADT would be $165.00 and that would be held without increase for the 60-month period. The total monthly outlay of $338.64 would be less than the current $395.66 per month. The new equipment would have much higher resolution than existing cameras. The Board will consider the proposal.

Nominating: Nothing to report.

Recreation: Brent stated that he has received one bid for installing water fountains in the pool area and at tennis courts. Brent is seeking additional bids.

Coffee Grounds Landscaping will install two pallets of sod to cover the areas disturbed by drain and construction work around the pool. The cost will be $750.

Brent is still working on replacing the basketball backboards in the picnic area. The backboards are $400-$600 each if we can use our existing poles.

Brent reported that the "Adult Swim" sign had been torn down and vandalism occurred at the kiddy pool. The electronic surveillance camera captured the person removing the sign but not the person vandalizing the pool. Pete advised that either action could lead to suspension of privileges and perhaps criminal charges.

Clubhouse: Mike reported that the contractor, EHI, was scheduled to install the new handicap access door on Tuesday, July 12th. Pete reminded Mike that the contract called for a fine of $50 per day to be assessed if the job was not completed on schedule.

Mike stated that JMG would remove the coat rack from the clubhouse and install one in the new closet the last week in July. They will also clean up the storage room.

Mike met with the House Committee and discussed ideas for improving the clubhouse. The committee mentioned adding some plants to brighten up clubhouse. The committee also suggested donating clothing left in the clubhouse to charity.

Mike is also looking into getting bids for work on the kitchen floor.

Grounds: John reported that the irrigation at the pool area is finished and working properly. He also said that the plantings around the pool area would be done in October. Pete commented that Keith had done a great job with the landscaping at the pool.

John and Brent have received a quote of $1900 to install a French drain around the pool. The work will proceed later in July.

John reported that Brunswick Electric misplaced new lights that were supposed to be installed at end of wall in front of the clubhouse. Brunswick reordered the lights and will install them without charge.

John made a motion that the trees be purchased to satisfy the violation from the town. The price would not exceed $2500. Pete seconded the motion and it passed unanimously.

Communication: Al stated that he has been unsuccessful in getting a list of people who delivered the phone directories in the past. The directories are available at the office. Suspended members are not entitled to receive phone directories. Guidelines for bulletin submissions have been tabled until next meeting.

General Advisory Committee: Al stated that their first meeting is scheduled for July 13th.

Legal Affairs: Kerry and Bob will meet with our attorney to discuss issues concerning the non-disclosure agreement.

Town of Carolina Shores: Pete reported that he had questioned members of the surrounding communities about their smoking policies in pool areas. All other POAs in the area allow smoking in outside recreational areas. He also requested information on the length of lease agreements. Pete said that some of the groups reported that they do have stipulations on the length of leases but none attempt to enforce them.

Financial Report:

Kerry reported that member receivables currently amount to $10,226.27. We are proximately $2710.00 short of the budgeted revenue for 2011. Kerry reported that we had filed 18 liens and has 6 more ready to go. We have released several liens at this time.
Mike asked Kerry if we had further recourse in collecting the outstanding receivables. Kerry discussed the potential for filing in small claims court and filing foreclosure proceedings.

Kerry passed out a list of members that we previously suspended from the POA that have now paid their dues and should be reinstated. He moved that the following people be reinstated into POA membership:

Bowen, Agnes & Robert
Gonzalez, Larry & Debbie & Vazquez, Antonio
Harris, Harold and Valerie
Lovallo, Pat & Sorbella, John
Murphy, Michael
Price, Lyn Edwards
Rider, John and Ronnie
Williams, Timothy & Catherine

John seconded motion. Motion was passed.

Kerry presented guidelines for spending procedures on budgeted items. He proposed guidelines as follows:

Purchases below $ 1500 may be made without obtaining competitive quotations if it is determined that the price is fair and reasonable and funds are available in the appropriate budget line.

For procurements or professional services between $1500 and $5000, at least two (2) written or e-mailed quotations from vendors are required.

Competitive procurement procedures, either invitations for bids or request for proposals are used for procurement of professional services valued greater than $5000.

All purchases would need to be within the existing budget. John moved that the Board accept the guidelines and that they be reviewed in six months. Al seconded the motion. The motion passed.

Maintenance - Nothing to report.

Old Business- Mike asked if the kitchen floor replacement should be started or postponed. Kerry suggested waiting until the Board makes a decision on further renovation.

Resident Comments- No additional comments.

At 5:00 PM regular meeting ended and directors went into executive session.
The Board entered executive session at 5:02 PM.
The Board reconvened at 6:10 PM.
The meeting adjourned at 6:12 PM.