Preliminary Minutes: Board Meeting 10/24/2002
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MINUTES
SUN CITY HILTON HEAD COMMUNITY ASSOCIATION
BOARD OF DIRECTORS MEETING
October 24, 2002
1. Call to Order: Ken Hull called the meeting to order.
2. Quorum: Secretary Steve Koehl stated that there was a quorum. Directors present were Ken Hull, Ed Wiler, Jerry McQuaid, Richard Espinoza, Steve Koehl, and Margaret Johnson. Board member John Ragan participated via teleconference. Steve O’Donnell, Vice President and Executive Director of CAM, Kimberly Burgess, CAM Controller, and Sylvia Higgins, CAM Office Manager were also present.
3. Prior Minutes: A motion was made and seconded to accept the minutes of the August 8, 2002 meeting of the Board, with the following amendment:
Under New Business, f) Modification Committee’s “No Permit” Fee Recommendation: Board member Steve Koehl spoke against the motion. The motion carried 5-1
4. Consent Agenda (**Attachments included in agenda packet are available for viewing in the Wall Street Reading Room. Copies may be obtained through the CAM Administrative Office at the requester’s expense): The following were noted as items that have already been approved or are routine housekeeping items that require acknowledgement: a) Unanimous Written Consent for Approval of (3) Additional members for the Newly-Created Business Technology Committee, Policy No.0208.7 b) Approval of First Amendment to Amended CC&Rs to Add Age Restriction Policy, Policy No. 0207.1 c) Unanimous Written Consent for Revision of Covenants Committee Charter, Policy No. 0209.1 d) Acknowledgement of Developer Appointment of Margaret G. Johnson to Board of Directors, Policy No. 0209.2 e) Unanimous Written Consent for Appointments & Reappointments to Covenants Committee, Policy No. 0210.2
5. Financial Report (**): Kim Burgess reviewed the financial statements for the July 1-Septemer 30 period. A financial summary will be posted in Pinckney Hall. Highlights include: Gross Revenues for the period were $2,684K for the Community Association, and $1,722K for Golf, for a total of $4,406K. Expenses for the period were $4,077K for the Community Association, and $1,783K for Golf, for a total of $5,860K. The budgeted net operating deficit for the Community Association was $1,402K, compared to the actual deficit of $1,393K, resulting in a favorable variance of $9K. Golf’s budgeted net operating deficit was $78K, compared to the actual deficit of $61K, resulting in a favorable balance of $17K. It is anticipated that Golf will finish the year with a positive variance. Under expenses, payroll had a $21K favorable variance; utilities were higher by $36K due to a 4% increase in the cost of water; Security had a $79K deficit; there was a savings of $92K in professional fees. Combined, the operating expenses were $112K less than budget, but we expect some catch-up before the end of the year. In Golf Ops, non-resident greens fees were $110K less than budgeted, and total golf revenue was $226K less than budgeted. While Golf Ops had a savings of $155K in payroll, Golf Maintenance has been operating short-staffed, so we can expect an upswing in payroll once three open positions have been filled. Total Golf expenses were $251K less than budgeted, but we expect some impact before year-end. Capital Asset Reserves at the end of the period were $424K, and Golf Reserves were $652K.
6. Executive Director’s Report (**): Executive Director, Steve O’Donnell, presented the quarterly management report.
7. Committee Reports: (**): The following committees presented committee reports: Finance Committee, Resident Communications, Modifications, Covenants, Golf Advisory, Interclub Council, Business Technology Committee, and Master Plan Committee. There was no one present to give reports for the Safety Advisory Committee or the Property & Grounds Committee.
8. Old Business
a) No Solicitation & Use of Lower Mailbox: Proposal included 1) no door-to-door commercial solicitation; 2) Association members can solicit or distribute literature relating specifically to Association affairs; 3) lower mailboxes will not be used for commercial solicitations of any kind; 4) lower mailboxes may only be used for information relating to activities and affairs of the Association; 5) any community-wide distribution requires approval of the Association’s Executive Director. A motion was made and seconded to accept the solicitation and lower mailbox proposal as submitted. There was no discussion, and the motion carried. For specific subject background and detailed proposal language, see copy of Policy No. 0210.6 attached to complete minute packet in the Wall Street Reading Room.
9. New Business
a) Board-Appointed Committee Appointments: Board member Koehl made a motion to amend the number of qualified candidates per vacancy with the following language: “If possible, the committee will forward to the Board a list of qualified candidates numbering no fewer that the number of vacancies plus one”. Board Vice President Ed Wiler supported Mr. Koehl’s amendment to the original proposal. Resident Elvera Hawkins requested that the Board table the proposal and further research the issue due to a lack of participants stepping forward to serve. Mrs. Hawkins also suggested a governance leadership program to foster education on community governance and to increase residents’ interest in service. A motion was made and seconded to approve the proposal as amended by Mr. Koehl. The motion carried. For specific subject background and detailed proposal language, see copy of Policy No. 0210.7 attached to complete minute packet in the Wall Street Reading Room.
b) Board-Appointed Committee Term Limits: The proposal on the floor is for terms of (2) years, limited to two (2) consecutive terms, for a total commitment of four (4) consecutive years. Board member Jerrry McQuaid spoke in favor of Board-appointed committee term limits. He feels that term limits gives newcomers and others who want to serve the opportunity to do so. Board members Ed Wiler and Steve Koehl spoke against Board-appointed committee term limits. Both felt that there should be opportunity for committees to offer retention for excellent contributors. Not setting term limits would guarantee that the best available participants would have opportunity to continue to work for the good of the residents and the community. Board President Ken Hull mentioned that there was much Board discussion as to what would encourage civic participation and give equal opportunity for all who wish to serve. A motion was made and seconded to approve the proposal as submitted. The motion carried 5-2, with Ed Wiler and Steve Koehl voting against the proposal. For specific subject background and detailed proposal language, see copy of Policy No. 0210.8 attached to complete minute packet in the Wall Street Reading Room.
c) Extend Annual Golf Rate: The proposal as stated is NOT to make any changes in the 2002 golf rate structure, contrary to the Golf Advisory Committee’s recommendation to extend discounted rates to the purchase of additional level packages. Jerry McQuaid made a motion to approve the GAC’s recommendation to extend discounted rates for additional golf packages. He felt it would be good business for the Community Association and would encourage more resident play. Ken Hull seconded the motion in order to open Board discussion. Mr. Wiler felt that acceptance of the GAC’s recommendation would be approval of preferential pricing for a minority of the golfers who underestimated their level of play. Mr. Koehl also voiced opposition to the GAC’s recommendation, as did Mr. Hull. Mr. Hull mentioned that much effort went into making the current tiered system equitable for all. Residents Martin McMahon, Al Burfeind, and Betty Smith all spoke in favor of the GAC’s recommendation. Board member John Ragan wanted the record to show that the Finance Committee voted (3-2) against the GAC’s recommendation. When a vote was called, Mr. McQuaid’s motion to approve the GAC’s recommendation was defeated 6-1, with Jerry McQuaid voicing the supporting vote. A motion was then made and seconded to approve the proposal as originally stated, i.e. make no changes in the 2002 golf rate structure. The motion carried with a 6-1 vote, with Jerry McQuaid being the dissenting vote. For specific subject background and detailed proposal language, see copy of Policy No. 0210.9 attached to complete minute packet in the Wall Street Reading Room.
d) Common Area Landscape Encroachments: The proposal included voluntary identification of homeowners who knowingly or inadvertently encroached on common area, Modifications Committee review for a landscape variance, and no consideration to assign or transfer the variance to subsequent owners. A motion was made and seconded to adopt the proposal as submitted. Resident Al Reuben spoke against the proposal because he feels that the Association has no enforcement procedures in place. Elvera Hawkins voiced the opinion that current residents who are maintaining portions of common area as part of their own landscaping should be grandfathered into the program. She recommended tabling the issue until the Board had opportunity to view the common areas falling under the guidelines of the proposal. Board members McQuaid and Hull spoke of the possible legal issues pertaining to future resale transactions and the need to protect the Association from liability for accidents/injury occurring on property it owns. Steve Koehl moved that voting on the issue be postponed until the January 2003 meeting. There was no second, and the motion for postponement failed. The question was called for the main motion, and it carried by unanimous vote. For specific subject background and detailed proposal language, see copy of Policy No. 0210.10 attached to complete minute packet in the Wall Street Reading Room.
10. Adjournment – There being no further business to discuss, the meeting was adjourned.
_____________________________
Kenneth R. Hull, President
Material provided by CAM, 10/31/2002. Page revised: March 22, 2004 .