Special Board Meeting (10/23/2014)
Please note: These are not the official meeting minutes. The official minutes are recorded by the Property Manager, and are archived at the offices of Sentry Management.
BOARD ATTENDEES: Mike Hogan, Ray Dalto, Briana Francois, Tyler Linkenhoker, Frank Maruco, George Sinclair
ABSENT: Mike Sandstrum
PROPERTY MANAGEMENT: Patty Kerr
LEGAL: Mary Hawk
Purpose of this meeting was specifically to finalize the vote on an amendment to our covenants to discontinue bulk TV contract in dues. Mike explained that 67-percent of homeowners must agree to amend our covenants. Mary explained that the approach taken on this issue was aimed at minimizing the risk to the Board of legal action.
The votes were tabulated and reported:
62 (67%) of 92 homeowners voted. 48 (52%) voted to discontinue bulk cable TV and 14 (15%) voted to continue bulk cable TV. The amendment failed to garner the 67-percent required, so the covenants will remain the same.
Since a simple majority of the homeowners voted to change our covenants but failed, a lively conversation took place to discuss go-forward options. Mary recommended that a new amendment question be prepared. It's purpose would be to amend the number of votes required to approve amendments. She agreed to study our documents and the law in this matter to inform the Board on options. Some options might be: a simple majority (51%) of all homeowners, or a simple majority of those who voted.
A motion was made, and passed unanimously, to organize a vote to amend the majority required to approve amendments.
In the meantime, BrightHouse has already been informed that their current contract will not be renewed. It expires 12/31/2014. The Board has asked for and received proposals from BrightHouse and Verizon. Given the vote tonight, the Board will now review the proposals and begin the negotiations for the cable TV provider who offers the better deal. Mary emphasized that the Board is not required to base their selection solely on price. Mike explained that it would be prudent, given the potential of a vote to change our covenants to a simple majority, to seek a contract term significantly shorter than 5-years.
Mike explained that the Board's budget workshop would factor in the cable TV expense resulting from the negotiation and selection process. A suggestion to the Board was made to include the financial implications the next time cable TV bulk contract is put up for a vote.
With no further discussion, the meeting was adjourned.