Minutes, Beaufort Pointe Homeowners Association Annual Meeting, Nov. 14, 2015

Minutes, Beaufort Pointe Homeowners Association Annual Meeting, Nov. 14, 2015

President Harold Tyson called the meeting to order at approximately 12:15 p.m. at the Seahorse Restaurant in Greenville, NC, following a buffet lunch. Members attending were Harold & Karen Tyson, Evan & Jan Lewis, Jim & Angelika Noblet, Kirk & Carol Doolittle, Kathy & Leavy Brock, Charles Thomas, Kennith & Coral Whichard, Robert & Mary Coggins, Delores & Bill Darden, Eric Buchroeder, and Greg & Lorie Evans. These members owned or held proxies for 59 lots. Members introduced themselves.

The minutes of the June 6, 2015 annual meeting were approved as distributed. The agenda for the Nov. 14 meeting was approved.

Tyson reviewed the Treasurer’s report line by line. The report was approved.

Tyson reviewed the following items of Old Business:

1. Storage lots purchased
2. Replaced planks and short pier at boat ramp; used composite materials to increase longevity
3. Whichard’s Beach Road street sign installed at intersection with Route 17
4. Added No Trespassing sign, chain and combination lock at river access gate; added No Trespassing sign at wooden bridge, added No Trespassing sign on the riverfront at the point
5. Replacement reserve study (cash reserve study) completed by Miller + Dodson Associates, Inc.
6. ARC committee has updated the guidelines that were approved at the June meeting; will add the updated guidelines to the website as soon as possible. They have been distributed to HOA members.

Under New Business, the following items were discussed and actions approved:

1. Replacement reserve report (cash reserve study): Bill Darden provided an overview of the replacement reserve study and report. The purpose of the study was to provide an inventory of common community facilities and infrastructure components that require periodic replacement. Our site components are our asphalt paved streets, storm drainage and sanitary sewer system. Our site features are the entrance, platform with dock and boardwalk, and boat ramp with bulkhead and pier. The storage lot was not included because at this time it is just land, with no improvements. The study reviews the existing conditions and creates a financial plan to fund future periodic replacements. Our HOA has a fiduciary responsibility to protect the appearance, and preserve and enhance values and safety of our property. The report provides details for remaining economic life with costs for each year’s replacements for the next 40 years. The components and features listed above are those that are 100% owned by the HOA. The study also included a section on the bridge and easement on lots 3-25; the HOA owns only lots 16-21. It also included a section on the boardwalk that is owned by lots 39-50; the HOA owns only lot 47.

Darden explained that at today’s meeting, the HOA would be asked to approve the funding of the general portion of the study – the components and features owned 100% by the HOA. Later, we will need to establish a policy of how individual property owners and the HOA will accomplish appropriate funding for the bridge/easement and the boardwalk. Also, as we add future capital improvements, we will need to update the replacement reserve study to include these additional improvements. Darden noted that Miller + Dodson Associates has offered to conduct a separate study for items included on our recent survey at no cost, but to do so, we will need to inform them of what items to include, their costs, and the projected constructiondates.

Darden then passed out schedules for the required accumulations for funding, a projected 2016 budget including an annual reserve expense, and balance sheet items that need to be included (documents attached to these minutes). It was noted that the HOA put $11,500 in the equivalent of a reserve account in 2014. Tyson made a motion that the HOA put $13,000 in a cash reserve account in calendar year 2015. Darden seconded the motion. Discussion items included whether lot 47 and lots 16-21 should be included on the balance sheet. Darden indicated that those lots were not capitalized when the HOA took over the property from the owners but said he would ask the accountant whether they should be capitalized now. In response to a question about how often the replacement reserve study should be updated, Darden stated that it depends on how the HOA matures, changes, and adds other components and features, but that every three to five years is the probable timeframe. Jim Noblet noted that the HOA had been frugal and had tried to protect owners’ investment and the value of Beaufort Pointe in the past. He stated that those priorities would need to be stressed moving forward as the HOA continues to try to protect owners’ investment without driving costs up unnecessarily. Eric Buchroeder stated that the stability of the HOA directly affects the marketability of property.

The motion that the HOA put $13,000 in a cash reserve account in calendar year 2015 passed unanimously. Darden then made a motion with a second by Greg Evans to place the funds in a certificate of deposit, with the bank to be selected by the Board. The motion passed unanimously.

1. The CY2016 budget was presented. Robert Coggins stated that he estimated the cost for improving the storage lots with a nine gauge chain link fence with three strands of barbed wire at the top and remote entry gate, removing trees, and putting in fill dirt, stone, tile, a driveway and power would be $40-45,000. Environmental permissions would be needed to fill in the canal. During the ensuing discussion, Tyson, Coggins and others noted that the storage lot could be improved in phases. Greg Evans noted that the budget only covered putting money aside for the storage lot and that the Board would need to come back to the HOA with a full plan before proceeding. Bill Darden made a motion to accept the proposed 2016 HOA operating budget showing net income of $22,475. Following a second by Greg Evans, the motion passed unanimously.
2. Tyson noted that he would like to move ahead with the first phase of improvements to the storage lot. Bill Darden asked what the recent HOA survey showed regarding the importance of the storage lot relative to other items. Jan Lewis stated that it had the second highest mean score and was rated second in terms of priority, behind the mailbox cluster. Delores Darden made a motion that the HOA authorize the expenditure of $10,000 for preparing the site for improvements. Greg Evans seconded the motion with the amendment that the Board would come back to the HOA with a recommendation and a plan for expenditures beyond the $10,000. The motion passed unanimously.
3. Jan Lewis reviewed the results of the HOA survey. A summary of the results had been shared with owners via email prior to the meeting. Top priorities of the 31 people who completed the survey were the mailbox cluster, the boat storage area, and streetlights. It was noted that it would have been helpful to frame the survey questions in terms of number of houses constructed in addition to a range of years in which construction was desired. Thirty people responded to the question whether he or she would agree to an increase of $100 in annual HOA dues in order to implement the top-priority projects sooner. Eleven people said “yes”, 12 people said it “depends on what the top priority projects are”, and 7 people said “no.” On a question concerning a possible change to decrease the minimum square footage of houses built outside the gate from 1800 square feet to 1400 square feet, 25 people supported the change and 4 people did not support it.

During discussion, it was noted that it should be possible to extend the culvert on Bluebird Lane and connect back to the entrance in order to get mailboxes off the road. Lewis stated that she had contacted the US Postal Service to find out if it would deliver mail to boxes located on owner’s individual lots but had not gotten a response yet.IF she gets a positive response, she will then contact the newspapers to see if they will deliver inside the gate. It was stated that a mailbox cluster could cost $20,000. Greg Evans noted that uniform galvanized iron mailboxes are used in million dollar neighborhoods and look nice. Lewis noted that it had previously been estimated that streetlights would annually consume 10% of the HOA budget.

1. Greg Evans presented the Architectural Review Committee’s request for approval in a reduction in the minimum square footage for houses built outside the gate (Phase 1 Lots 1-11 and 39-55) from 1800 t0 1400. All other ARC guidelines would apply. In response to a question from Kirk Doolittle, Evans stated that this change would not affect the density of lots. Evans’ motion was seconded by Delores Darden and was unanimously passed.

Evans led a discussion of options for enforcing the HOA covenants. Owners are invited to report possible violations to the Board and the ARC and leave it to those groups to act. The possibility of having the property manager (Pamlico Properties) ride through the neighborhood once a month and send letters to owners if violations were noted was discussed but rejected. Owners continue to be free to address violations on their own by contacting the individual owner. Evans noted that the HOA can impose fines for violations. Jim Noblet drew a distinction between minor and serious violations. Evans stated that the HOA has a process in place to send a friendly notice, followed by a letter, and then referral to an attorney if needed for serious violations.

Delores Darden expressed the opinion that there should not be overlap among the members of the HOA Board and the ARC. She thought that by having distinct membership, an owner could appeal to the Board if he or she had a disagreement with the ARC that could not be resolved.

Evans noted that requirements related to the Beaufort Pointe storm water permit were dictated by CAMA, not by the HOA. He reminded everyone that house plan approvals require CAMA approval or acknowledgement for coverage of impervious areas to protect the Beaufort Pointe subdivision storm water permit. Tyson then showed attendees the maximum built-upon chart included in the Beaufort Pointe Covenants.

1. Prior to opening the floor for nominations for HOA Board positions, Tyson issued a call for volunteers. At that time, no one volunteered. Evans expressed appreciation to the current officers and Noblet complimented the Board’s work and how nice the lots look. Bill Darden then volunteered to be chair of the Budget Committee. Evans seconded this motion for Bill Darden to chair the Budget Committee. Tyson announced that he did not wish to continue as president. Eric Buchroeder nominated Patti Buchroeder to serve on the Architectural Review Committee. Charles Thomas said that we would consider doing something but did not want to start as president. Evan Lewis also offered to help Tyson if Tyson would stay on as president. Mary Coggins volunteered to be on the ARC. The following individuals were duly nominated, seconded and voted to serve a term on the Board:

Harold Tyson – President

Delores Darden – Vice President

Jan Lewis – Secretary

Sarah Sabornie – Treasurer

Charles Thomas – At Large Board Director

Bill Darden – Chair, Budget Committee

Mary Coggins and Patti Buchroeder will be on the ARC. Final membership of the ARC remains to be determined.

1. There being no further business, the meeting was adjourned.
2. Respectfully submitted,

Jan Lewis, Secretary