MINUTES

SUN CITY HILTON HEAD COMMUNITY ASSOCIATION

BOARD OF DIRECTORS MEETING

January 31, 2003

 

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 October 24, 2002 meeting of the Board, with the following amendments:

Under New Business, 9 (c) Change “Golf Advisory Committee’s recommendation to extend discounted rates to the purchase of additional level packages,” to “Golf Advisory Committee’s recommendation to extend discounted rates to the purchase of additional rounds packages.”  Change “packages” in the second sentence to “rounds.”  Change the next meeting date from “Thursday” to “Friday.” 

A motion was made, seconded and approved to accept the minutes of the November 14, 2002 Special Meeting of the Board of Directors.

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) Approval of Reappointments to Modifications Committee – Policy No. 0211.2 b) Approval of Resolution Establishing 2003 Elections Committee – Policy No. 0211.3 c) Unanimous Written Consent for Establishing Hidden Cypress Neighborhood Committee – Policy No. 0212.1 d) Approval of Addition of William Pendley & James Lau to Master Plan Committee – Policy No. 0212.3  e) Approval of Over Budget Request for Golf Cart Path Repairs – Policy No. 0212.4  f) Adoption of 2003 Election Committee’s Procedures and Rules – Policy No. 0301.2 

 

5.             Financial Report (**): Kim Burgess reviewed the financial statements for the January 1 – December 31, 2002 calendar year.  A summary will be posted in Pinckney Hall.  Highlights include:  In total, the Community Association’s actual deficit for 2002 was ($1,902K), compared to a budgeted deficit of ($2,075K), resulting in a positive variance of $173K. 

 

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, Covenants Committee, Golf Advisory, Interclub Council, Safety Advisory Committee, Business Technology Committee, Master Plan Committee, Nominations Committee, and Elections Committee.  There was no one present to give reports for the Modification Committee or the Elections Committee.   Of significance, but not included in John Ragan’s report is the establishment of three sub-committees under the Finance Committee:  an investment Committee, chaired by Joan Cloer; a Purchasing Policy Committee, chaired by Judi Fillmore; and an Insurance Committee, chaired by Roland Faricy. 

 

8.             Old Business

A.      Board Goals and Objectives and Other CY 2002 Accomplishments (**):  Board President, Ken Hull, reported on the status of the Board’s 2002 goals and accomplishments.   

               

9.             New Business

A.    Board Goals and Objectives for 2003:  The following two goals were established by the Board at a recent workshop:  1) Refine strategic planning assumptions by delineating community strengths, weaknesses, opportunities, and threats, and subsequently focusing on the formal development and implementation of a written plan.  This goal has 6 objectives.  2) Create operating efficiencies, new and creative revenue streams, and improvements to existing programs by embracing a “business operations” theme in day-to-day operations.  This goal has 9 objectives.  A motion was made and seconded to adopt these goals for 2003.  The motion carried.  For specific subject detail and language, see complete copy of the Board’s 2003 goals and objectives attached to complete minute packet in the Wall Street Reading Room.  (Policy No. 0301.4)

 

B.    Softball Field Banners:  The proposal as stated was to continue the advertising banner program for the softball field.  Stretch Breth, chair of the Neighborhood Rep Council, indicated that the NRC supports the retention of the softball banners, however they feel that the Board should implement a policy enforcing restrictions on banners, flags and signs.  Other speakers indicated that the general feeling is that the banners contribute to the tradition of softball fields and save the Association money in terms of equipment and maintenance.  Resident Board member Steve Koehl noted that while he has changed his opinion of the softball banners and now supports them, he feels that other banners and signs within the community should only be allowed for short-term events, like tournaments.  Resident Board member Jerry McQuaid was the only board member opposing the softball field banners.  Mr. McQuaid is quoted as follows:  “The CC&Rs, in Exhibit C Initial Use Restrictions, specifically prohibit signs of this type in the community.  They do, however, empower the board to grant exceptions.  I see no justification for making an exception in this case and I certainly cannot defend extending this exception to a single organization, the Softball Club.  Theirs is a worthy program, but so are the programs of the other clubs that could benefit from advertising revenue.”  Resident Board member Ed Wiler’s opinion is that the banners lend a “softball ambience” to the ball field, and that there is no need to extend this program to other clubs.  Board President Ken Hull feels that the program was implemented after many serious discussions, and the the Board gave fair weight to the issue.  He called for a motion to keep the softball banner program in place.  The motion was seconded and approved.    

 

C.    Revisit Common Area Landscape Encroachment Policy/”Restore at Time of Sale” Provision:  The proposal as stated is to fully grandfather actual (existing) encroachments and to leave any future restoration requirement as a matter to be negotiated between seller and buyer.  Resident Al Reuben voiced his objection to the proposal on the grounds that the Board would be passing a long-term policy without any means for future enforcement.  Resident Board member Jerry McQuaid made a motion to amend the policy as follows:  1) remove the statement “the variance action is ‘temporary’ and only applicable to the current homeowner; 2) replace the statement “there would be no consideration to assign or transfer the variance to a subsequent owner” with “the variance can be transferred to subsequent owner(s) provided that these owner(s) also sign the same legally binding letter of understanding as executed by the current owners;” 3) replace the statement “prior to the home being offered for resale, the homeowner would be required to restore the encroached area back to its natural condition: with ”failure to successfully transfer the variance to subsequent owner(s) will require restoring the encroached area back to its natural condition before completion of the sale.”  Mr. McQuaid’s motion was seconded and approved.  An amendment to the original Board policy will be made, recorded and executed as Policy No. 0301.6.    

 

D.    Modifications to Vendor Decal Policy:  The proposal as stated was to amend the current vendor decal policy to include tow trucks, florists and home repair services on the fee-exempt list.  Resident Board member Steve Koehl opined that a new section should be added to the fee-exempt list to include those vendors responding in warranty situations, i.e., tow trucks, other auto repair vehicles, floral delivery services, etc.  Resident Dick Guter agreed that delivery services should be exempted.  Resident Board member Jerry McQuaid said that he does not want to see the vendor decal program eliminated, but he objects to entry fees being passed from vendor to resident.  He felt that the motion under discussion would be a good compromise.  Resident Board member Ed Wiler’s opinion was that we already have 28 classifications of vendors currently exempted, and he doesn’t favor expanding the list, at least until the community has more experience with the vendor decal program.  Mr. Wiler also stated that the vendor decal program generates approximately $80K in revenue; if we add to the list, revenues generated will be decreased and would result in increased homeowner assessments.  President Ken Hull stated that we have a significant exemption list, and that additions to the list would eventually eliminate the vendor decal program entirely.  Mr. Hull called for a vote on the proposal as originally stated.  The proposal was defeated 5-2, with “naysyeas” by members Koehl and McQuaid.  There will be no additions to the vendor decal policy exemption list. 

 

10.      Adjournment – There being no further business to discuss, the meeting was adjourned.

 

_____________________________

Kenneth R. Hull, President             

 

The next regular meeting of the Board will be Thursday, April 24, 2003.