The Monthly Board Meeting for Hawthorn Park was held on Thursday, August 26th, 2010 at the First America Bank. Here are the topics and highlights of the meeting.
Please note: These are not the official meeting minutes. The official minutes are recorded by Susan Thimmes, Property Manager, and are archived at the offices of Sentry Management.
Attendees
Board of Directors:
Ray Dalto (present)
Wendy Edler (not present)
Mike Hogan (present)
Frank Maruca (present)
Mike Sandstrum (present)
Sean Simpson (present)
Pat Whitesel (not present)
Sentry Management
Susan Thimmes (present)
Several interested residents of Hawthorn Park: George Sinclair, John Whidden, Len Lesjak, Peg & Joe Mazza, Agnes Kullman, Tom Falcone, Art Stadlin.
TOPICS DISCUSSED:
Resignation -- Mike Hogan announced the resignation of Wendy Edler from the Board of Directors. The Board will seek another member of the Association to complete her term in office. Four Director positions will be open for election at the November Annual Meeting: Wendy Edler / Frank Maruca / Ray Dalto / Mike Sandstrum. Ray Dalto was appointed to drum up a slate of candidates for the November 18th election.
Financial Report -- $76,599 bank balance. $7,015 YTD surplus. $38,573 reserve. $3,493 in unpaid assessments as of 8/20. 3 liens in place, plus additional intent-to-lien letters sent. Expenses are running under budget. The housing crisis impact was discussed. In summary, a lien is typically paid to Hawthorn Park when the property changes hands, in a sale or a foreclosure. First in line for money is the County for taxes. Second is the bank for the mortgage. Third are liens. With mortgage amounts higher than home values, liens will not be paid. Implication for Hawthorn Park Association is we will never recover the lien amounts.
In Florida right now, a foreclosure process takes up to 24-months. Given this time line, the Association cannot expect rapid resolution of liens. We have one home in foreclosure, also delinquent on dues and fees, that is being rented. There are two actions the Association may take: 1) Legal to issue a demand letter to the renters to compel them to re-direct their rent payments from the homeowner to the Association until the Association is paid up. 2) Legal to cut off their Bright House cable TV. The Association also has the right to take the upkeep of the lawn and landscaping under its control, and seek reimbursement from the homeowner. Fines of $100/day (up to $1,000) are also possible. The Board voted and approved the sending of the demand letter.
Fines Committee -- After some discussion, the Board concluded that activating a Fines Committee would not be effective.
Financial Outlook -- Forecast is for economy to get worse still, before it recovers. Possible double-dip recession. When planning next year's budget, Sentry recommends we assume twice this year's dues delinquencies. Must start showing delinquencies in our budget. Must change practice of showing revenue as 92 homes times the dues amount. To cover same expense budget next year, dues for paying members will need to go up.
Activities Fund -- Balance is $556. No change, no activity.
Social Activities -- Ladies Social will be hosted in October by Mary Hawk.
ARC -- No ARC issues. No activity.
Landscaping / Common Grounds -- The new sod in the entrance medium has been hit by bugs. The sod is being treated and is recovering. Frank will ask Jaime to please cut low-hanging branches from the front entrance trees. Frank reported cracks in the front entrance sign, and recommended it be re-painted. Board decided to table this until the dry season.
SWFWMD Issue With Big Front Pond -- Karen Wilson from ZNS Engineering gave a status report: The under-drain system failed in the large front pond, and Southwest Florida Water Management District (SWFWMD) requires it to be repaired. We have been in discussions with them for a long time. Now they are requesting action, as the dry season approaches. The next step, likely after September, is to file a Modification Permit, which will cost around $4,000. Actual amount depends on the judgment of this being considered Major or Minor modification. Then there will be an interval until the permit is approved. As long as we keep SWFWMD informed and are showing progress, SWFWMD will not take legal action against the Association.
The pond, which is 0.7-acres and 16-feet deep, will be partially drained to allow the construction of a sand shelf with a stabilizing footing. The sand needed is special sand that must be trucked in from central Florida. The current plan shows the submerged sand shelf along the south side (9th Avenue side) of the pond. The shelf will be planted either intentionally or naturally, and it will look a little wild. A homeowner asked if the sand shelf could be moved to the west side, which already looks wild. Karen said that is partially possible, but some shelf must remain on the south side to reach the exit point of the pond. The cost to re-layout the design would be about an hour of computer time, should the Board decide to make that change request.
The exact cost of this project is not yet known. The job has not yet been sent out for bids. The actual price will be a function of the price of fuel, the cost of fill, and the number of contractors seeking work. To protect the Association, all contractors must show proof of license and insurance. Also, Sentry will not pay any contractor until they provide a "Notice of Commencement" that their subcontractors and employees have been paid on this job.
Special Assessment Process -- Susan explained the critical elements:
1) A letter is send to all members of the Association, notifying them of a Special Meeting.
2) No less than 14-days later, the Special Meeting is held. The situation is explained. The amount is discussed. The voting process is explained. The meeting to take the vote is announced.
3) No less than 30-days later, the meeting to vote on the Special Assessment is held. To approve, two-thirds of Association Membership is required. Normally this is 92 votes. Question raised about how the 92 is reduced by the number of delinquent members.
4a) If the vote on the Special Assessment is approved, the Special Assessment is typically due within 30-days. Sentry can make a credit-card payment option available for people who wish to stretch their payments. All credit card fees and convenience fees are paid by the members using the credit card service.
4b) If the vote is not approved, SWFWMD has said they will take legal action. Our options in this case were not discussed.
Official Display Board Needed -- Susan explained that the law requires that all HOA's must have an official spot, protected from the weather, to display meeting notices, agendas, and other official notices of the Association. She said email or the web site are not allowable substitutes. Susan requested a volunteer carpenter or woodworker to build one. Or one may be purchased for the Association. George Sinclair offered an alumimum case with a locking glass front for $50. It would only need posts attached and the labor to install it. Susan recommended the display be installed at the Lift Station, facing the street, since this is a convenient location at the center of the neighborhood. No decisions were made on next steps.
New Neal Development / Zoning Change -- Not discussed.
Cuban Laurels (Ficus) Trees -- Len Lesjak provided the Board and Property Management with a letter requesting the trimming of the two trees in the small common area between his house and George & John's house. These trees are large and at risk of crashing down in a storm, doing damage to neighboring homes -- which would not be covered under their private insurance policies. The Board agreed to take the request under advisement.
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