Quorum was met with Dick Titus, George Bland and John Weidner were in attendance

Transcription

1 Magnolia Point Community Association, Inc. Board of Directors Meeting Magnolia Point Clubhouse August 8, 2016 Minutes Dick Titus called the meeting to order at 6 p.m. at the Club Upstairs Committee Members present: Also present: Darren Decker, CAM Lifestyles Realty. Quorum was met with Dick Titus, George Bland and John Weidner were in attendance Approval of Previous Meeting Minutes (July) Dick. Any corrections, some typos June Minutes George motion John sec to accept the June minutes, question passed unanimously. Financial Statement Review (June) Rannel was in attendance and reported as of June year to date our revenue year to date has been $569,749 compared to a budget of $570,546 so we are within $796 of the budget so we are very close to the budget. Those that were here last month I mentioned that the budget was built on an estimate of having 866 lots to start the year with and adding three lots per month from Dream Finders Homes. We actually started the year with 865 lots and through June we have added 21 lots so we are up to 886 lots. Income through June is up to $22573 that is compared to a zero or break even budget so we are $22k above budget. That is basically in the areas of Irrigation, Landscaping and General Repairs, all of those are well below budget. Also there has been no requirement to add to our allowance for doubtful accounts or bad debt reserve. Our operating cash as of June the 30 we have $89,800 in our operating cash. Back in December we had $45,646 that is vastly improved in our operating cash over the last 6 months. In looking at the assessment increase and the club use fee in June the receivable is well above what I had anticipated thanks to the collection of some large past due accounts. Through June we have collected $195k in assessment increase and we have paid out to the clubhouse and to mowing $185k. So at the end of June we have a favorable balance of $9600. In the reserve analysis we spent another $9400 in the month of June giving us a YTD spending of $215,400. Our opening balance was $506k and are balance as of the end of June is $371k. I have three recommendations if you would like to hear them now? Dick Yes please Rannel, In reviewing the owner balances we have 41 accounts that have a balance of less than $10. The total for all of them is $199.37, in my opinion it is not worth pursuing these small accounts so I recommend the Board take a look at just writing them off to help clean up the receivable balance. Darren I m sorry to interrupt but if the Board would like to take action on that lets do it now, if you don t then we can keep going. Dick, I would like to think through the process before we just react. The question on this one is yea there are in fact very small balances but are we attempting to put these accounts in positon to be collected on? By writing those off we are saying we do not have any real issue with them not paying their full bill. I would almost rather do this on a one time basis every year and go through it and see if it makes sense to write that off or it is an indication that they are not paying. So writing it off is an indication that we accept what they are doing. So that is the issue that I would like to talk about and bring up, may be considered. To the other Board, Does that make sense, we can vote on it now but I would tend to hold off and recommend doing it in the budget cycle and once a year. Also making sure there is not a problem with each individual account before we do a general write off. John, so there is 41 accounts? Dick, yes there are 41, it is not a big thing, I mean $200 but if the account is running along and everybody is paying the money then fine. But if we are getting slow rolled then there is a different question and outcome. That is an issue that I think we need to look at on an individual basis 1

2 John, wasn t one of those like ninety cents? Really small? Dick, yes I m not really worried about those but Rannel, yes I can take a look at those individually. Dick, when you look at them you can go through them very rapidly and the budget process looks to be a very good way of doing that. If that makes any sense and I was going to hold off. Rannel, my second was creating an amount that we were going to automatically be written off but if we want to go to budget time that would basically take care of that. My third recommendation is as of June 30 our receivable amount is $102k but allowance is $115 so we are well over the amount, recommend a reversal of $15k in the allowance for doubtful accounts and instead of taking that amount and wrapping that into income taking that as a onetime to the reserves. Dick, I ll take that as a motion if somebody wants to talk about it or second it. George, I make a motion to accept the recommendation as stated. John, seconded Dick, is there any discussion? I do not see any. Call the question to accept the recommendation to reduce the allowance for bad debt and wrap into reserves as a onetime move. Motion passed unanimously. Dick to Rannel thank you very much those are very good comments I/we appreciate your hard work Dick, Along that same line we received a request for write off of an account and I have a couple of questions but it falls right in that category, so let s talk about that. There is a write off on a particular account I think they owe us about $3400 their lawyer is stating they come under safe harbor pay off. I would l like to talk about safe harbor and whether we need to take into account that issue with our receivables. That write off for us that say they would pay basically one year s assessment and that is all they are responsible for that is $1300 out of the $3400 they owe us that means we write off $2000. If this is the way it is typically going to be we are on the short end of this. This drives me into a position that says we ought to be much more stringent with attacking anything over $1000 because $1000 seems to be the safe harbor payoff. So it seems we are letting things ride for a long period of time and all that is doing is increasing our cost and our write offs. We are not going to get that back so I am suggesting that if we need to look at the safe harbor payoff and is that applicable to all of these past dues. If it is I think we need to adjust what we are doing in terms of accounts receivable and bad debts. We need to be much more aggressive with anything over $1000 I think we need to proceed if that is really where we are $1500. George, I agree John, so if I get the right when do you actually put the lien against the house? If they are a year behind at that point do we put the lien? Dick, the way it has been going on is and this is the sheet we get on a monthly basis. Fundamentally we have not been doing very much for a period of 3 quarters that says they basically owe us $1000 before we write a letter saying you owe us $1000 and we are going to have an intent to lien. Just recently that has caused a little bit of the concern we have gone to the fact that if they are one quarter late we have the capability of writing a letter and we are writing letters but that letter used to be associated with $1000 so its tone is a little harsh for one quarter due. So we are in the process of trying to adjust that letter and change it, everybody knows that except these people here. We need to make it a little bit more tone sensitive. But on the other side of that if in fact they owe $1000 or more then we would go ahead and do an intent to lien. That letter says if you do not pay us we are going to lien and there is a period of time that sits there and then we actually end up filing up the lien. The lien series has to take place with specific check points before we can foreclose and we do have the authority to foreclose but some of these people owe us a significant amount of money over $1000 but that has been our threshold. My concern is by letting them float for many years and some of these have been for many years we are hurting ourselves in a lot of ways. So that is the reason I am stepping on this now. This write off happened to be the place that puts a floor on it. That to me is something we need to think about. John, when you pay your quarterly assessment it is for the future not for the past right? So in other words if you have not paid July so when October hits they are already 3 moths out so if we do not get a payment then and if they do not pay the next quarter that is 6 months out. Darren, but that is only two quarters. John, I understand it is only $660 that is close enough to say hey guys you have to start giving us some money we have to pay the bills and the club. If we do not collect the money we cannot pay bills and do our stuff. I guess what I am saying 2 quarters may be a better lighting rod than 3. 2

3 Dick, I am just going off what we have done in the past. Certainly we can change this to what we want, that is the reason for the discussion. Darren, the reason it was like that is because the ability to track and write letters. My company has made adjustments so we have more people in the back office so if you look at the aged owner balance we have here for June there are people with less than $400 balance that have ITL so the process has changed. Lifestyles wants it where you want it. To get the letters right and the timings right. One of the things we were trying to do when this other person came on there were a whole lot of foreclosures so we looked very hard at that first. Speaking to the safe harbor, only applies to a certain type of takeover that is bank from owner, even if there is a lien in place for that property the safe harbor trumps it. So depending on how it gets taken over determines if the safe harbor applies. It all depends on how the turnover happens with the paper. But that is true the one year is the safe harbor period no interest no cut the grass nothing we get one year assessments only. Dick, to look at that for the bankrupts we have about 6 or 8 on the list so the most probable situation is we are going to end up with a safe harbor on those so what we ought to do rather than carrying these things forward we ought to move those to bad debt at the $1300 level and if we collect more than that its fine. But at least we write it off in terms of accounting. Is that a fair assessment? Darren, that would be really nice the only problem is we have to keep the books and accounts exactly as it is. So the first one on the list National Properties we do not even know who has that paper now it has changed hands so many times. We have to keep it on the books and track it just like this. I know Rannel can track it by looking at the accounts and adjusting the difference for the safe harbor and what is due and give us the numbers. Dick, we can t move it to bad debt and track it there. Darren, not unless it changes hands and we find out about it, but it has to stay on the books and each account like this. Dick, so only like this, that is part of the question so we are there. Unknown woman, can you explain that Dick, what you just asked? Dick, we have an aged balances report that we are working off of, I want to say that Darren and Lifestyles have done a super job in getting what used to be a 3 or 4 page list down to one page and half of that one page is down to $600 or more so we are making significant progress. My comments is not focused on they are not doing their job they are it is focused on just how to count it. So the issue is here we have this account and I look at the total amount of money we are owed it is a significant amount of money but we are not going to collect all that money because a certain percentage of those we are only going to be able to collect $1300 and the rest of it will be written off which is what we just talked about. In terms we have an account to set the amount of money being written off. In other words we are budgeting the bad debt so it will not hurt the association. My question was can we go ahead and move that to the other account so the numbers we are looking at are the real numbers not including what we will not or cannot collect. So we are looking at numbers and expect to have in terms of this year. That was the question that I was trying to pursue and it turns out that what I was told is that the accounting system has one aged balance report and that is where it has to stay so if we want that information we will have to do it as a separate calculation. That is doable as far as I am concerned. Rannel, which is the reason you keep the bad debt as high as you do to offset that amount. Dick, your question is the reason for this whole conversation, a great question. Rannel, I do have one other question. Once they file for bankruptcy obviously whatever they owe us goes into the bankruptcy filing, but the date after the first bankruptcy if they continue to owe new debt do we track that as post-bankruptcy due amount? Darren, if there is a conclusion from the court to the first bankruptcy there is a dollar amount that is subjugated to that account that runs with the court order. After that we create another running account for that person and charge regular assessments on the new account for that piece of property. Remember it all rolls with the land. So if there is a bankruptcy that was $10,000 and that is what was in the court order so once there is a judgement on that it stays on that account as a balance due and another account is started from that point on. Rannel, once they file for bankruptcy there is a date and at that point in time everything gets put on hold until there is a judgement on it. If they make another loan after filing that is outside of bankruptcy. So I am wondering are there any process that we have that in the future we can identify as post-bankruptcy to the receivables? 3

4 Darren, the post would be the second account for that person on that land. We generally receive notice there is a filing and at that point we have to create another account for that land under that person and begin the normal billing. That is a before and after. John, let me make sure we are getting all this straight, I know a guy had a bankruptcy and he keeps the house. What happens when there is the bankruptcy and the bank takes it back. Can we bill the bank you are responsible for it until that house is sold to keep the grass up and pay the assessments? Darren, if we know about it. If there is a change of owner ship, that is what is happening here the bank came in and said we are taking over this property here is what we are offering you. It doesn t always happen this way sometimes we do not know anything for months and months. Like this other one, the last owner we were told was Federated National Management, we do not know who has the paper now. That is what the problem is but yes to answer the question. Once the charges are there it stays there but if we get told by our attorney, once we get the notice from the courts it goes to our attorney and hopefully he has a lien on it and he will be the one talking to them then to us saying this amount is what they are offering to the Association. This is all through the attorneys. Dick, to come back to this write off do we need to have an approval for this write off? Darren, yes sir. Dick, I will accept the motion for this write off from the attorney. John, for all this stuff or just the one. Dick, just the one that they own $3400 and they are going to pay $1300 that means we will write off $2100 so I need a motion to accept that offer from the bank. John, I motion we accept the offer. George, I second. Dick, it has been moved and seconded that we accept the offer, call the question. Motion passed unanimously to accept offer. +++ Darren will let attorney know ASAP +++ Darren, just so everybody knows of the foreclosures and things that happen with the courts this particular scenario is only about 25% of what we actually see, most times we do not get this or anything for that matter until we receive court records that the property got sold on the court steps for $100. I can honestly say this is not the normal scenario. We have to do this this way because the attorney asked the Board for permission to accept this offer. Dick, Rannel said we are sitting at 886 lots on the books I am not sure the books have caught up yet but I talked to Dream Finders and as of today phase 8A is completely sold, 30-40% of PhaseB is sold and PhaseC infrastructure is being completed and that is part of the issue we are working. Turnover from DF to us is going to be in late 2017 early 2018 timeframe so that everybody knows what the schedules are. I thought it would be good to talk about that at this point. Rather than go to the Committee reports we have the Chief here again, he has graciously said I will come to your meetings and you can ask questions if you like. I would like to give you the opportunity to ask what you would like. I know they have been out many times looking at the community and some of our concerns. Any questions? Rich, I have one comment for the Chief, we are on the rules enforcement committee, when the back gate went out we were driving down the street and we ran into one of your officers and we let him know the back gate was down due to lighting. The officer told us he would go back there and sit for a while to do some traffic control to make sure you are safe. I want to applaud him and your office, he made sure no one was going too fast. We really appreciate it. Chief Musco, thank you I appreciate it and I will pass that along. Rich, do you remember who that was? Lindsay, no but a very nice young officer. Chief, you just described three quarters of my department. <<< much laughter >>> Thank you we do a lot out here we love this neighborhood. Lindsay, we have noticed more of your presence in here this last month or so. Chief, yes well 23 of your fellow residence have noticed our presence as well. <<< much laughter >>> As I have said we try not to inforce it too much but I am looking for balance, then there are some that you just can t turn your eye on and we have to cite them. We do like this community and we thank this community a lot there are always food cookies and cakes down there so we like this community. We get excellent support from here. 4

5 Unknown man, I notice there is no speed limit sign as you come in from the back gate and I notice some people coming very fast to the property at the back gate. Chief, There was one there I will check it out coming in from 315. Unknown man, does the city or county have any plans on changing or upgrading 315 in light of the thousands of houses that are going to be built over the next few years? Chief, yes there is a plan in place that 315 will become a 4 lane that is what I heard. Here is what I want to tell you folks, there have been several plans and several renderings of the plans and several renderings of the renderings of the plans, <<< much laughter >>> until it is actually working no one is exactly sure. Obviously it started out close to 7300 roof tops last I heard it was down to That will be quite a development so there has to be changes out there. They will address it properly, trust me. Dick, anyone else, well thank you very much Chief. I would like to say that all of the department would do that, from what I have met you have a tremendous group there. We thank you very much. Chief, you are very welcome and thank you very much. <<< much clapping >>> Committee Reports Access Control Nelson Corby was in attendance and reported I met with a vender on the issue of new owner software so I should have some numbers for you next month. Architectural Review Joe was in attend and started off by asking that you would approve a third person to the ARC, we have an application from Michaelann Porfidio who lives on Borden. She is very active in the community if you have seen her home it is very nice especially inside. George, I make a motion to accept Mikie as she says to be on the ARC. John, I second Dick, it has been moved and seconded call the question, motion passed unanimously. Dick, give her our condolences please <<< laughter >>> Joe, to summarize what has been done just getting organized and most of the things are mostly routine with regards to roof replacement and other things. Regardless we do get roof samples so we have on file what was supposed to be on the roof. After you have been doing it as long as we have you kinda know the ones that are going to be acceptable. I do seek help and input from the members on anything that is the least bit out of the ordinary to avoid conflict or controversy between neighbors. With the third person makes that much easier. We have redesigned all of the forms and have submitted so I am suggesting that maybe by next month have the forms ready for approval. We have forms that have check lists and forms and part of the check lists is a requirement to check with the neighbors who have seen the application and approve. Screen areas and patios we do need some clarification from the Board. For instance play sets we need some clarification. Basketball goals that get involved with the rules so we need to be on the same page. Fences we need to talk to DF on what they are doing and we need to be involved with that communication. Had a meeting with someone in the new section and their fence is adjoining another fence and the other fence is literally a one year fence and it is so poorly built we need to help these owners and not let that happen again. Dick, thank you very much. Communications Bob Tague not in attendance sent in a note it is a kudos they found that all pieces of the web site cannot be viewed from certain devices so Susan and Joanie really stepped up and worked on the web site and solved the problem quickly. So he wanted to thank them and I would concur to say thank you very much. George, thank you very much the people with the mobile devices really appreciated it. Bob Page, just one questions on the communications as it relates to the financial issue and possibly late dues, for those of us that still write paper trails and do those kind of things, the system isn t always there looking at coupon books is stuffed under a stack of paper. Perhaps you could have your communication people send out a reminder 10 days before the due date it would help a lot of us remember to pay our dues on time. Dick, do you have a list of everyone who pays by check? Darren, no not sure that is possible, electronic can be done, postage mail out is very expensive. 5

6 John, didn t Rannel say something about putting that in the Magnolia living as a reminder, hey the July quarter is due on the first. We can do it by blast also but it that a big deal? Dick, magnolia living shouldn t be an issue we just need to get it done, but you (Bob) are thinking about something bigger. Bob Page, we used to have the bulletin board there but now it think it we turned it over to the club but we could put it there. Dick, do you think a blast would help solve that problem? Bob Page, just something to help people remember to pay on time. Dick, I wish it was that simple. <<< laughter >>> Thank you. Community Liaison Tom Sprott was not in attendance Susan reported the committee met on July 20 th. We all walked away feeling really good with what the Rothfells told us that day. The minutes are on the web site so if anyone has any questions please give me a call. Dick, Trevor do you have anything you would like to say? Trevor, no we are here to answer questions. Dick, I know you are in negotiations with DF and I talked to Batey today and I have told you in the past what his direction is, but he also indicated that they are in the process of looking at a proposal stating you will turn over phase 8 lakes to DF, is that a possibility is that what we are looking at? Trevor, the problem with that is there are three ponds over there and the reality of that is they are ponds and bank sides belong to the club. The problem is that prior to DF coming in we did not have to do any maintenance to those ponds because of the way it was configured. Now that things have changed dramatically physically it has increased our labor burden close to $30k a year just to maintain those bank sides, not only do we not have the money we do not have the equipment to maintain the land. So it was proposed to DF by us to turn those over to the community HOA. We simply cannot manage it the way it stands now or will we be able to in the future. We are talking about better or different landscape material and all kinds of different scenarios to make it workable and make it better for the community and for us. Dick, so it is not cast in concrete but just proposals at this point. Let me tell you the reason and I don t mean to put you on the spot, I didn t mean to but I just got off the phone with Batey and he asked us to take a look at the Association be willing to take those ponds or at least part of them. Of course that has a bunch of implications and I said we would talk about that but if that is purely a proposal we can treat it that way so it is something that is being negotiated. Trevor, we sat down with Batey and his project manager generally speaking when a person purchases a lot next to a pond the lot goes into the pond. This time they do not go into the pond but the top of the bank so from the top of the bank to the water is ours. There is another 2 acre spot that is now in an easement that we allowed DR to go as well they needed a utility easement so we provided that for them that landlocked that acre and ½ so there is a lot of property that may be more advantageous for those particular property owners to own down into the pond. I have one owner who wanted to build a pool but did not have enough room so there is a lot of things we need to discuss like do we deed it over to DF or the Association or try to get it so the owners of the lots above the ponds so how do we work it out. There are a lot of if s. Bottom line is we all recognize the way it is right now is not acceptable to the new owners, us, DF or the Association. That is what we are trying to fix. Dick, thank you so my response to Batey will be, his question to me was what he was looking at is it would be deeded to him/df and they would deed it back to individual home owners then the rest of it those three lakes two of them they might just deed to us. Then we would have the maintenance responsibility for those. The third one would be split to the center of the pond for the home owners to pick up that responsibility. The question is would we be willing to take this on. Do we have any conversation on this? John, a couple things when we talk about this. I am assuming these guys/new lot owners did not have grass all the way down. Is DF going to be willing to put grass to the water s edge like other builders have to everywhere else? Are they going to change the sprinkler system? It is more than just we give it to you here you go guys. Dick, what he said is they are seriously considering planting muhly grass down to the water. Basically it grows on clumps and is associated with golf courses all over. But there is still some cost to us the primary purpose of those ponds is storm water so there is some monthly maintenance to us so we would pick up three more ponds. Unknown woman, I don t think we can make a decision until Trevor makes up his mind. 6

7 Dick, I am not asking for that but we do need to give Batey a position whether we would be willing or not to even entertain the idea. If we are not then we can say that up front very clear, if not we can start looking at the issues. George, that is the thing we have pretty sketchy information here. Unknown Man, we don t have enough information, I don t think we can afford $30k just because we think it might be a good idea. They are presenting an idea and you are asking us to approve an idea. Dick, I am not asking you anything I am asking these guys if there is a response from them before it goes any further. George, I would like to get more information and what they are going to do moving forward. Dick, that is a question for the three of them, this is a negotiating position for all of them. Trevor, the reality is we have already turned over two acres to DF at this point. By doing this we might be turning over another 5 plus acres to the private owners and or the HOA. There is a lot of intricacies but other easements but it is in the working out discussing phase so there are a lot of areas and how-to s to work through. Still have a bunch of processing. John, I think we can cut that pond in half, golf side half to the club the other side to the owners. I do not know why you would want to turn it over to us when it is actually yours. So you still own half the land down to the water? Deneen, I believe it is Batey s idea to have the HOA take it because of what he left us with regarding the grade of the banks. It s not that we don t want the pond it s just we cannot take care of it at this point. His idea was not to make it manageable but to make the HOA take it, which was easier. We gave up a lot of golf course land to make that pond and it was supposed to be a 4 to 1 grade and none if it is that grade. Gayle Page, I do not understand all the legal ramifications but please Board consider the cost involved to the HOA, another $30k after all the amenity package and all the things we paid I think is not appropriate. Dick, where does the $30k come from? Trevor, that number came from us that is what we estimate as the cost of maintaining that property in the condition it is in right now. There are things that are still way out of reality of doing at this time. This is all discussion and what if s at this point. Dick, I think I got the answer that I want the question that popped up and I believe it has to do with a negotiating position. DF asked me to bring it up and get back to DF with the input. I did bring it up and I will get back to him with the input that says we are not inclined to accept it as sits without knowing significantly more. We need to be part of the process if the HOA is going to be responsible for this at the end of the day. We do not want it dumped on us, I think that is the message that I am hearing loud and clear. I wanted to get concurrence on the response we would have. Darren, let me be the stick in the mud here, invariably you are going to be stuck with it. Dick, I know and that is why we need to be part of the process. Darren, exactly Dick, and this is not a two party issue, and that in fact is the issue and that is what I would like to say that we must be part of the process if we are going to be part of the issue. I wanted to make sure that we the Board agree with that position before I put it forward to DF. That is what I was asked to do and I believe I found the answer. If we want to make a motion I think that s fine, I don t think we need it. I would leave that as our position in terms of this case. Along those same lines in our last meeting we approved a onetime mow and DF has agreed to pay that $1000 and so we took care of that problem, so that goes away, so that was a continuation of last months meeting. Landscape/Irrigation Mike Hallam was in attendance and said he has received a few s about the cutting they did that they only did half and I told them we would discuss at the meeting tonight. Like I told you before that when I first started looking into that that it is the only place they did not deed to the water and I was surprised. Dick, actually it is not there are other locations that do not have deed to the water and there many places that do. Every home that butts up to the golf course water. Any pond that is Association owned is deeded to the middle of the pond any pond the golf course owns is deeded to the top of the bank. Mike, until this new pond Dick, that s not ours it is the golf course, and those are all to the top of the bank. It does not matter where the pond is it matters who it belongs to. Even though you back up to a pond that is on the golf course does not mean it is golf course. There are 20 ponds that are Association and 18 that are golf course owned. Any home 7

8 that is butted up against that the property goes to the top of the bank, exactly as it is in Phase 8. Any of the 20 that the association owns the property owner actually owns down to the middle of the pond. So it is a mixed bag and it is across the board consistently. I have verified that time and time again. Mike, I will just tell them it is a work in progress. Thursday before last I drove the whole area with bright view and we marked out the places they mow with no surprises on a big map as big as this table. The only other map I have is this, do we have anything in-between that I can markup this is too small. Darren, I do not have anything in-between but what I do have is a living map that we use to mark up and use it for the vacant mow and Bright View it is a big map. Mike, then I will get with you and go over what I have. Darren, I think it would be better if you get with Rich and Lindsay with the map and put it all together. Mike, ok I will get with them. We have all those identified and get together with them. The area by the mailboxes on Elks path is supposed to be mowed weekly. Rich, I think that is every other week. Dick, I think we need to do it every week. Darren, do you want to have it done every week? George, every other week especially during the summer we need it done every week. I think we need to take a look at making sure it is done weekly. Darren, we can make that adjustment that is easy. Mike, the only other thing is the first proposal for the landscape for the real-estate office has that been approved? George, no we have not approved any of them. I have gone out to Pats Nursery for a bid and met with them two weeks ago and they have not gotten back to me yet Mike, may be they do not want the business, there is a lot of other people out there. Lindsay, I have the company that is doing out Vacant he would probably put a bid in on it if we can get him the details. George, ok we can look at that. Mike, when we had the median islands done we had TREE AMIGOS do it. <<< laughter >>> They did some work for us. That is all I have. Dick, thank you very much. Roads/Drainage/Waterways Repair Open chair Still vacant and we are looking for a chair. Darren, do you want to go through the Duval stuff now? Dick, yes let s do that now. Ok comments. George, just so everybody know the first one is for colonial drive and we picked up all the cul-de-sac s to the south of Colonial. All of those on that side, also on Pebble beach we have an issue with the road sinking and also in the same area the catch basin will have to be repaired. Colonial is sort of a funny place it was paved in parts but we picked up from the clubhouse down to Oglebay. There is a couple hundred yards that have never been repaved. We drove most all of it with the rep from Duval to get the areas we wanted to do and his take on what we need to do. With all the places this time we have to mill and pave because they need it. This will give us a better job in the long term. So all that came up to $171k, paving is expensive. We had one other one that was on Colonial as you come up to Turkey Creek that is for widening the road with a curb and gutter down to Stonebriar. Last year we put some temporary edging that was about 80 feet. If we want to put a Miami curb and gutter from the existing curb at the top of Colonial down to Pebble Beach and widen the road in that area. The good thing is there are no drive ways or other owner properties that we will have to repair. That one came out to $66k this was a lets take a look at it and see how much it costs now we know. Unknown woman, is that one bid George? George, yeah we received this bid from Duval. Unknown woman, is there an opportunity to get more than one bid? Darren, there is absolutely opportunity to get more than one bid, but in my experience it is a lesson in futility because no one can beat Duval s price and quality. Jack Phillips, I think we should still get some. Darren, you have my permission to get some. 8

9 George, I understand, that is why I am saying that that s a lot of money. We are not proposing we do that when we saw the price we are going to set this aside. Debie Wiedeman, George is there a rush to do Colonial this year, I mean DF is still traveling up and down all over the place. Wouldn t it be better to hold off until next year where most of the construction is done that way we won t have as much wear and tear on Colonial? George, I think you bring up another point, so far we have spent, in reserves and everything, Dick has the numbers. Dick, we just heard the reserve balance right now is $371k and not all the bills have been paid but we are jumping into where I am at right now on this. If we spend another $170k that leaves us a reserve of $200k, and that to me is sort of a no op and I am inclined to put this on the table, I have no issues with the plan or what we want to do but I think we need to sit on this for now. There are two questions, we do have a source of money coming in and that would pay for this or most of it if it comes in. The question is, is the money coming in and can we count on it? Right now I don t want to bet on that coming in, I would rather delay this and we are not losing any time. The fall is just as good to do this as any time. If it looks like this is the case and we get the money we can take this up then. Not because of construction because that is a two edged sword, once paving starts failing it fails rapidly and so you could be putting yourself in a bind so that you have to redo the whole thing twice so you do not want to be hurting yourself from that view point. I do not know what the conditional status is for all the locations we are looking at but I am not sure traffic is a decision maker, but funding in my mind is a decision maker. So that is where I am, we have the estimates on the table, let s hold it and watch if the funding comes in and how our other expenses are to look at the whole thing. We can choose to postpone it until next year and we lose nothing. Comments, Questions? George, I think looking at the reserve situation/where we stand now and moving forward it makes sense to push it off. Dick, John where are you? John, I have no problem with tabling it for now. Dick, alright we will do that then and we will move on. Darren, do you want to time line this or just leave it open end of year where do you want me to bring this back. Dick, I would like to use that schedule for this and use it for this, the other monies. Darren, what schedule what monies? Dick, Comcast monies and schedule for this project. Darren, ok ok I got it, have the money in the bank before we spend it I got it. Dick, well we have the opportunity to do some other things but we need to make sure so I do not want to bet on Comcast and put ourselves in a bind with counting on that. What I will do is watch that so keep it on the agenda and if it does not come in we can just bounce over it at the meetings. Dick to the other Board, just keep it on the agenda and bounce over it if we need to, does that make sense? George, yes check the status on the incoming Comcast deal and go from there. Rules Enforcement Rich Harrison was in attendance and reported I have nothing <<< much laughter >>> Unknown woman, everyone is doing it right. John, I have one thing, the last time we talked to Batey about the lights on Phase 8 he said he was going to repair or he was going to have it repaired, they have not been repaired and we have a leaning tower of Pizza Street light that is Shinnecock on the right side going to the back. So there are 4 that need work now. I checked them this morning. Dick, I told him exactly where they were and the electrician came in at night after hours and the entrance staff did not let them in. Now I know they are still out I will let them know. I took no end of trouble but gave our guard staff Kudos so that was that. <<< laughter >>> Darren, do we have a name for the guy or company, we can get them in Dick, that was my message but it is in works. He had to do it on his own time because it is a warrantee issue. He was all ticked off so it may be a while before he comes back 9

10 Unfinished Business A. Guard House Dick, I assume that s a status question? George, we are making progress. One of the problems we have had is an undersized air-conditioning unit that has been resolved, the proper sized one will be installed this week. Any monies we spent on the first group comes of the second group so we are only paying for one ac system not two. The biggest problem is getting his contractors to work, this is such a little job and it seems no one can finish it. He had his finisher on it this weekend. When the ac is in we can get all the computer systems in the closet and off the floor and desks. We are still waiting to get some laminate on a couple of counters and shelf and one of the cabinets. When you go there what you will see is we used to have all the hardware all over the place, what we are doing is moving all the computers to a closet so what you see is just monitors, keyboards and a mouse on the counter. The new ac will be central with duct work so we can direct it where we want it including the hottest spot in that place is naturally where that person sits at the window. The sun shines right there, we will have a duct right there. You just can t get enough air in that corner in the summer even though we have tinted the windows. Unknown woman, is that the reason for the baby shades? George, don t get me started on baby shades, they are temporary. When this is ready we will get something that is presentable and workable for the windows. Until everything is finished we cannot get anything installed for blinds. John, what is the awning policy here, like we used to have down south the awnings that go on the outside? George, it would last until the first big truck came by and they would take it out John, no I m talking about the front part not the sides. George, the front is not the problem it is the side where the window is. The sun comes up on the front right and sets front left so the middle to end of the day is directly in that window. Gaylee, I have a suggestion, Rays Solar came and put a sheet of sun reflector on our windows and it works wonderfully. You can see out beautifully and it is hard to see in. You don t have to worry about pulling down shades or nothing like that. George, Ray has been there and they have given us the best heat grade film they sell. I would have loved to been able to put reflective film there but we would have blinded everyone who comes down the road. So we did install the best heat reflective inside on all the windows. Gaylee, what I have is on the inside and it does not reflect, so I don t know. George, that is what he did he gave me the best 3m has to offer, so when we are done the baby shades will go. There are several things when I look in there that, I walked in one morning and hanging on the wall were two clip boards hanging on the wall. I just shook my head and walked out. I am hoping by the end of the month we will have it completed. Then we will put the proper blinds/shades in the proper places that will do the job and look good. Unknown woman, so there is not a finish date. Darren, no not at this time. The windows where the staff sits are not finished with the trim and painting yet so there is no way to start blinds until the inside is finished. George, I m done Dick, ok B. Clubhouse Drive/Colonial Storm Drain Darren, we have been in contact with a number of people and I am not going to go through the whole thing but we are waiting on approval from the two lot owners. When we get that it will go to the attorney, what I am talking about is the easement approval so that we can work on that property. As soon as we have that we will begin the repair. The whole reason we are here is when we started on this everyone that I was dealing with on the repair assumed the developer at the time plated an easement for the storm water pipe that is on the property. They did not so we have to ask for that from the owners and we are working through it. Dick, any expected time frame, I hate to ask that. 10

11 Darren, I do not have any timelines to offer we are in the processes of language of easement and the attorney s. It is kinda like working with the government. Dick, so we are stuck waiting for that? Darren, yes we are absolutely stuck waiting for that. If we want to spend some money we can have James take all that stuff out of there for a while but it will cost us to do that. George, can we get Michael our attorney to contact their attorney and meet in an office and take care of it and be done with it? Darren, I would love for that to happen. George, make it happen. Darren, I cannot make Mike do anything, it has been set in motion in that direction. George, if we ask p0litely he will he is a very nice person. Darren, yes he is but the other side is not. I have sent everything I have on this to Mike and he is working it for us. Bottom line is the owner of Lot 14 is not willing to sign the easement agreement. C. Landscape Tower Park + John, this is done right? Darren, no the pressure washing is done not the landscape. This is the one we need other bids. D. Sundancer Signs Dick, I assume that is still in work? Darren, Sundancer has started installing the name signs and the new brackets and name signs for us on the Muirfield side yesterday. George, I think they started Friday then it rained on them but I was going to go through and double check what they had done. So I only saw 8 or 10 that had been done, so the majority has not been done. Darren, ok I will call and see if everything is ok New Business A. Duval Asphalt Proposals Darren see above. B. Comment from floor Jack Phillips, I live at 3644 Spyglass Court I have had several people ask me and I am interested myself, what is the new projected date for the pool to open? Trevor, we are still working on it, we have had some weather issues and some other problems but we are making progress. I can t give you a date because if it doesn t happen then you will be mad at me Deneen, it is kinda like the guard house we just don t know. <<< much laughter >>> Darren, what is this a race??? <<< much laughter >>> Jack, you have 6 or 7 hundred families in here that don t take advantage of any other amenities and I think they would like to have some kind of projection. Deneen, we have had more than a few delays Jack, I realize you have delays but if you could get a date and put it on the web site so people can see what you think. Trevor, the pool contractor was ahead of schedule a few weeks ago but now he is behind. If I give you a date Jack and it doesn t happen then what is going to happen? Jack, then you just give me a new projected date. Trevor, I project it will be done in a week. Jack, that is not what I mean. Trevor, I know but there is just no way to give you any kind of date. Jack, there was a lot of discussion on the building out front, what was the final cost for the gate house? George, the budget was $38k and we have not exceeded that at this point. 11

12 Jack, that is good. The reason I brought that up is, I have had considerable work done at my house, you know how you ladies are, special effects on the celling and the den. From an old country boy I have got cabinets that you can touch them and they close by their self. Expensive upgrades in stoves, refrigerators and dish washers, I ve got counter top that I won t even talk about, but all of those things, I m, the original thing you haven t exceeded the $38k, is that what it thought that was, is that what that was. I m not I mean I m $16-$17k below that. These are top grade, I ve never seen anybody work like these people. So Darren I am going to give you these peoples card because you said you have had difficulty in finding people to do different things. Darren, you are six months late, I wish I would have had that six months ago. Jack, you may have other things coming up not just the guard house. Darren, I hope not <<< much laughter >>> but yes please give it to me. Jack, when do we take bids for tree trimming is that the first of the year? George, I believe that is on a need basis. Jack, ok I had a couple of bids for a tree on the side of my house because it is growing underneath my foundation and my pool pump. One guy had cut two trees down for me in the past, and his quote was $300 less than the next quote so I am also going to give you his card. He said he tried to put a bid in once and somebody would not take it. I do not know about that. George, are you talking American Tree Surgeon? Jack, could be why? Dick, because there is a history there. Be that as it may you can give Darren the cards. We have already talked to him about that and I think we have resolved that issue. Jack, so we can look at him again? Dick, I don t see why not, he is already on the list if that is the guy. Jack, can you put the bids on the website so we can see what they are and the major issues and things like that? It is just interesting and I think people would like to know what they are spending. Darren, it will all be in the minutes and the minutes are posted. Dick, and the minutes are on the web so the answer is yes. Ok Debie Debie Weideman, you answered part of my question before about turning over DF property to the HOA and you said you are on top of it now and you are looking at it. You basically said that phase B, phase 8 section B is 30-40% sold and C is not so you are going to have to wait until 90% of C is sold Dick, it is actually 100% but it doesn t matter it will, they are projecting the end of Debie, there was a law passed in July of 2013 that says 90% Dick, but the covenants trump that law and we have verified that also, but it doesn t make any difference they are selling 3-5 houses a month so we are going to be there about the same time so it is a moot point. For planning purposes we are talking about the end of 2017 early Debie, that is what my question was in reference to. Dick, Ok any other questions? Steve Witham, who is going to patch that front area just off of Harbor and Magnolia Point. George, they have already looked at it and drawn a line around it, yeah they are going to get it. Steve, the line is already worn out. George, I think they know where it is. <<< laughter >>> Dick, I think we have already signed that patch job, yes? Darren, yes. Adjournment With no further business to discuss, John made a motion to adjourn George sec the meeting at 7:35 p.m. was made, seconded and passed. Next meeting September 12 th at 6: people including board and staff. 12