2013 Annual HOA Meeting Summary

Post date: Feb 5, 2013 10:22:04 PM

Our 2013 annual meeting was held Sunday December 9, 2012 at the Stony Hill Fire & EMS station.

All Board Members were present

· Dennis Brennan, President; Dale Lyon, Vice President; Elisa Price, Treasurer; Todd Mower, Secretary; Jose Pietri, Asst. Secretary/Asst. Treasurer

Members present are recorded on the Sign-in Sheets

· Of 45 lots, 20 lot owners signed in. In addition, proxies were received from 3 homeowners not in attendance.

· Kohn-Ell Management in attendance was Mike Ellis

Meeting was CALLED to ORDER by President, Dennis Brennan, @ 4:05 PM.

QUORUM was established from the Homeowners present.

· Mr. Brennan welcomed everyone, reviewed meeting procedures & agenda

Motion made to approve MEETING AGENDA/ 2^nd/ Approved

· The minutes of last January’s 2012 Annual Meeting were reviewed by all in attendance.

Motion made to approve 2012 Annual Meeting Minutes as-documented/ 2^nd/ Approved

· Mr. Brennan presented the President’s Report, highlighting wins for our community and significant board accomplishments throughout 2012

- Since Developer turnover, Board has organized all records and set the financials of the association on a positive trajectory. Records are now available for review.

- Board has worked diligently with Wake County Attorney & Wake County Planning Department and in October 2012 received $32K bond money from insurance policy in place in case of Developer default.

- Put in place New Construction Minimums to protect value of our property

- Re-engineered two sediment basins to save $22K

- Launched new Devonshire HOA website

- Worked with Wake County Revenue Department to correct ownership and property boundaries of the AQUA well lot

· Mrs. Price presented the Treasurer’s Report for year-to-date 2012 expenditures and year-end projections vs. budget.

- October year-to-date operating expenses $19 better than budget, and year-to-date net income $876 better than budget.

- Several unexpected expenditures such as utility deposits & fees to re-engineer sediment ponds offset by several under-runs in areas such as irrigation and snow removal.

- Bond funds deposited into interest-bearing savings account for capital reserves

· 2013 ANNUAL BUDGET was presented, reviewed, and discussed. Dues are unchanged at $450/year.

- Motion made to ratify fiscal 2013 budget as presented/ 2^nd/ Approved

· Nominations opened to elect open seat for 3-year term to HOA Board of Directors, as Mr. Brennan’s term as President ends 12/31/12.

o Mr. Brennan nominated from the floor. No other nominees. Motion made to re-elect Mr. Brennan/ 2^nd/ Approved

· Covenant Amendments discussion led by Mr. Brennan, President

o Original Covenants put in place by Developer. Board’s in-depth review of current covenants uncovered several items that needed to be clarified, and community feedback also highlighted several items that would be in community’s best interest to change.

o Of the 45 votes in the association, 75% affirmative votes needed to change a covenant (34 votes.) If approved, Board will hire attorney (estimated ~$500, in 2013 budget) to draft updated Covenants.

o Mr. Brennan reviewed each of the nine proposed covenant changes. Voting ballots were collected from all lots in attendance. Board will follow-up with those lots not in attendance to collect remaining ballots for final vote tally, which must be completed within one year. Everyone’s vote is critical.

• Special Assessment discussion led by Mrs. Price, Treasurer

  • In late 2011, Developer defaulted on his commitment to complete the subdivision roads & county erosion control requirements. HOA now has legal responsibility to maintain the roads and bring them up to standards for NCDOT takeover. Subdivision roads are progressively deteriorating and NCDOT estimates paving repairs will double every 5 years.

  • In depth financial analysis presented of estimated repair costs relative to neighborhood build-out projections to gauge best timing of doing the repairs. Even if we wait several years to levy the assessment until more lots are sold, the assessment per household will never be lower than if assessment is levied and work completed in 2013.

  • Repairs currently estimated at $90K. Factoring in bond money of $32K, $58K additional funds needed. Our HOA does not qualify for a loan.

  • Current assessment sizing of $1700 based on 2012 NCDOT punch list & repair estimates received from several contractors. Winter freeze/thaw could further damage roads and lead to increased costs. For that reason, assessment value will be finalized in early 2013. Could be +/- $1700, but use $1700 for budgeting purposes.

  • NCDOT right-of-ways must be cleared. All homeowners with trees, shrubs, rocks, posts, or large grasses on the right-of-way (such as near mailbox) must move them or cut them down no later than 3/31/13.

  • Several homeowners requested that roads not be plowed this winter if it snows, as plowing will deteriorate roads even further. Board has taken this request under advisement.

  • Please contact Elisa Price with any questions regarding the road situation and right-of-way clearing

• Motion made to adjourn meeting/ 2^nd/ Approved @ 5:40 PM

  • Respectfully submitted by Elisa Price, Treasurer, as reviewed by the Board of Directors