November 23, 2013 Monthly Open Board Meeting
by Buz Whelan
The November open meeting was called to order by President Alex Leslie at 9:30am sharp. After a fast approval of the October minutes, Leslie opened his comments with a cryptic statement regarding the September meeting, saying the comments made then were his own and that he was not speaking for the board. He apologized for any confusion this may have caused. He then went on to say that the recent seminar on committee/board relations and procedures had produced a recommendation for a Committee Chair Council, and the board was prepared to act on this. He also mentioned that the bog removal project for East and West Emerald Lakes had been completed.
Treasurer Earl Frank commenced his report by stating that the upcoming issue of the Emerald News will contain new information. Along with showing the actual dollars and variances from the budget items, readers will see the % of each major line item of expense by department to the total operating expense. A graphic chart will reflect expenses incurred by department through Oct. 31, 2013. This is intended to give members a better insight into the state of our finances.
Frank continued that our current year-to-date revenue of $960,000 exceeds budget expectations by $29,000. This is primarily due to increased collections on code violations of $15,000 and fees for rentals, resale certificates and permits by another $10,000. In addition to these monies, our attorney has collected $96,000 year-to-date as opposed to $51,000 for the same period last year. Our total operating expenses of $825,000, excluding depreciation, is under budget by $70,000 or 8%.
1. Administration costs are under budget by $25,000, with salaries and benefits under $17,000.
2. Public Safety is under budget by $6,000.
3. Maintenance is under budget by $37,000 due to a favorable variance in salaries and benefits of $18,000, $10,000 in lake maintenance and vehicle expenses of $8,000.
4. The Community Center is under budget by $33,000 due to favorable variances in salaries and benefits of $22,000 and related items in the maintenance of our outdoor pool by $10,000 and the heating cost by $5,000.
5. The Bar & Grill is over budget by $12,000. Revenue year-to-date is $38,000, while expense is $50,000 for a shortfall of $12,000. (editor’s note: this shortfall is an average of $2,000/mo for the first half year, down significantly from the $3,000/mo reported for the first three months)
Regarding the total annual budget, we expect to be under by 10% which should offset any reduction in dues collected.
Finally, our reserves balance is $389,000 and the new capital fund balance is $72,000. Road paving will eat up $224,000 of the reserves while compactor paving will reduce new capital by $65,000.
GM Allen Roth repeated the news that the bog removal had been completed in his Manager’s Report, and added that the removed material had been dried and stored and will be used as fertilizer. He also informed the room that the road paving project had been completed and that a punch list developed after completion had also been completely addressed. He stated that RFPs have been put out for the Pine Tree Lake dam valve and pipe repair, but that as of now only two firms have expressed interest.
In a sad addendum, Roth reported the recent death of Fred Spott, long time engineering consultant for Emerald Lakes and a friend of the association.
During the committee chair reports, ad hoc Committee to Revise the Bylaws chair Buz Whelan reported that the singular task of developing a complete protocol for absentee voting was well underway. The committee’s goal is to present the finished product to the board in time for the February open meeting. Committee members have agreed to hold extra meetings, if necessary, in order to meet this self-imposed deadline.
Whelan also reported on the Property Management Committee in place of ailing chair Bob Leon. There was some discussion about the name of the committee, several board members maintaining that the bylaws specify that we have a Maintenance Committee, not a Property Management one. Whelan argued that we do, in fact, have a maintenance committee in that Property management performs all appropriate maintenance committee tasks. But the committee has also taken on those tasks of the moribund Architectural Review Committee, also specified by the bylaws. By working under the title of Property Management, but functioning as both ARC and Maintenance, the bylaw requirements are met. Whelan’s point was that it wasn’t about the name, but the function.
Moving on to committee work, the committee is working on a signage project, intended to bring community signage up to date. It was also mentioned that the one way signs on Emerald Blvd. are missing. A car was observed traveling the wrong way on this past Friday. The committee is also working on obtaining a surveillance system. One that has been researched would provide a 17 camera system with recording capability. Cost would be about $3,500.
Stephania Johnson, Events Committee chair reported on a full schedule of events for the coming year. Highlights include Santa for the kids, a New Year’s Eve party, a murder-mystery night for Valentine’s Day with a jilted lover theme, a St. Patrick’s Day bash with the Gallagher Dancers, a May comedy show, and a return to Cabaret ’35 in the early Fall. Watch the website and Emerald News for a more complete list with dates and details.
Earl Frank reported on a Finance & Planning Committee recommendation that the board consider requesting a special assessment from the membership. This would be $199/per property/per annum for a total of $398. According to calculations, at the current compliance rate, this would bring in approximately $550,000. The figure is meant to match the estimated cost of replacing the HVAC system in the Community Center (about $250,000) and repairing the Pine Tree Lake dam valve and leaking pipe (about $300,000). Membership approval would be required.
Under Old Business, Secretary Carmen Broadnax read the two resolutions, passed in October, on shifting the credit card discount burden to the member when paying dues, and raising the late fee on dues from 2.5% to 10%. This is the second reading. A third will be made next month to complete the public notice. The credit card charge of 3.5% on dues payment will be effective February 24, or in time for next year’s dues payments. Fourth quarter payments for 2013/2014 dues made on time (Feb 1, 2014) will be unaffected.
Under New Business, the board voted to accept the donation of Lot 4918, located on Clearview Drive opposite the skating pond. The area could be used as a small parking lot. The board also voted to approve Buz Whelan as Bylaw Committee chair and Sherri Ornitz as Rules and Regulations Committee Chair. Finally, the board authorized the establishment of a Committee Chair Council, with organizational details to be worked out later.
During the Public Comments section, member Buz Whelan thanked Flo Mauri for a well run seminar on committee to committee and committee/board communication and function. The Committee Chair Council is a result of that event. A round of applause was given to Ms. Mauri.
Whelan went on to comment on the special assessment suggestion calling it a “band-aid on a sucking chest wound.” We have serious problems with operational fund shortfalls. While some on Finance & Planning have pointed to our balanced budget and the fact that we are under in almost all areas, this is a fool’s paradise. In 2007 we had 17 full time employees. We now have 9. The beaches were both open 7 days a week. Now they alternate weekdays, with only one or the other open. The outdoor pool was open 7 days a week in season; now it is open 4. The Community Center was open 7 days a week; now it is open 3½. The compactor was open 5 days; now it operates 4. We had a Youth Activities Program with a full time Youth Activities Director; that has been completely eliminated. As for being currently under budget, for instance, we are $10,000 under in lake maintenance because we haven’t done any. We are living and operating on reduced services and deferred maintenance. There is a huge difference between having a balanced budget and having sufficient funds to properly maintain this community.
In welcoming new members to the community, 6 properties changed hands, one a foreclosure and 3 were purchases of Classic Quality Homes.
Posted on November 23, 2013, in BOD Meetings and tagged Board of directors, Buz Whelan, Emerald Lakes, Emerald Lakes Association, HOA, Homeowner's Association, Public Safety. Bookmark the permalink. Leave a comment.