Board Meetings

The Annual Meeting of Members of Williamsburg Settlement Maintenance Association, Inc. was held on Tuesday, April 19, 2016 at 1602 Hoyt, Katy, Texas 77449 at 7:00 p.m.

A quorum was qualified by representation in person and/or by proxy of one hundred ninety-two (192) members.

The Board President, Floyd Ball, served as chairperson and called the meeting to order at 7:00 p.m. He introduced the Board of Directors: Anitra Ondrush, the newest member of the Board filling a vacant position to expire in 2017, Larry Crain, who serves as the fence committee chairperson and landscape chairperson, Walter Smith who is Vice-President and the architectural chairperson, Dave Ellis who is Secretary, Treasurer and clubhouse coordinator and Gail Owen who is the deed restriction chairperson. Martin Spears who was unable to attend is the security liaison. Officer Wilburn from the Sheriff’s department and who heads up the patrol service for the neighborhood was also in attendance as was Dolores Sue representing PCMI.

The first item on the agenda was the election of two (2) directors each to serve a three (3) year term. There were three (3) candidates on the ballot, Jim Calvert, Gail Owen and Martin Spears. The floor was opened for nominations. There were no nominations from the floor and a motion was made, seconded and unanimously approved to close nominations from the floor. At this time a homeowner, Stefanie Falk volunteered to help count the votes. Ballots were collected and while the votes were being counted the meeting continued.

The next item on the agenda was the Association financial report. This was presented by Dave Ellis, the Treasurer. He discussed the process by which budgets are established and the financial results for 2015. The Association was over-budget, however he explained that this was because of Board decisions to spend unbudgeted money from the Operating Reserve to make improvements to the clubhouse including exterior painting, new landscaping and the addition of new pool area awnings as well as to take advantage of the competitive pricing to increase the length of perimeter fence replaced.

He reminded all homeowners present that the 2017 assessment rate may have to be increased.

A vote is required annually to roll over the excess income if any, for the benefit of IRS rulings. Upon a motion duly made, seconded and unanimously approved by the Members, it was:

RESOLVED, that any excess assessments for the taxable year 2016, that

are over and above the actual expenses paid or incurred for said year, shall

be applied to the following year’s assessments for operating expenses.

Community Operations Update:

Floyd Ball expanded on the information presented in the financial report regarding the amenity improvements that the Board implemented in 2015, and on how the Board had been reluctant to increase the annual assessment before doing so.

He also discussed delinquencies explaining the collections process. The Board does send delinquent owners to the attorney if they have not paid and are not on a payment plan. The attorney fees are subsequently billed back to the owner’s account. He explained there have been a few unique cases where the owners have passed away and things got caught up in probate.

Open Forum

At this time there was a general question and answer period. A homeowner thanked the Board members for their diligence in serving the community and being conservative with the funds while maintaining the subdivision in an excellent fashion. There was general agreement, and an understanding of the need for an increase in the annual assessment to ensure that the Association will have sufficient funding to adequately maintain its property.

A homeowner asked about the conversion from well water to surface water and installing an eight foot diameter line to accomplish this. As this is a Municipal Utility District (MUD) issue, Floyd Ball suggested that those interested attend an MUD Board Meeting. MUD 61 meets on the 4th Thursday of each month in the shopping center directly in front of Williamsburg Settlement. MUD 62 meets on the 2nd Friday of each month at the same location.

There were two MUD 61 and one MUD 62 board members in attendance and they explained that there is no set date to transfer from well water to surface water.

A homeowner asked what should be the optimum amount in the Reserve account. Dave Ellis restated the point made during the financial presentation that the amount in the Reserve is calculated based on the projected cost of replacing the Associations capital assets when they reach the end of their operational lives. Although the Reserve is currently underfunded due to a lack of attention given to it during the early years of the subdivision, as long as this and future Boards maintain the commitment to fund the Reserve at the present level the Association is financially sound, even after last year’s heavy investment on the perimeter fence for which the board has been saving for since 2011.

A homeowner asked why the Associations funds are not invested more aggressively to increase the rate of return over the existing CD’s and money market accounts. The Board explained that it has a fiscal responsibility not to enter into investments that might pose a risk of loss of Association funds even though this does reduce its investment income.

Election Results

At this time Floyd Ball announced the election results. Martin Spears and Gail Owen were elected and will each serve a three-year term to expire in 2019. He thanked Mr. Calvert for running and for the help that he continues to provide to the Association.

Approval of Update to Bylaws and Collection Policy

Floyd Ball and Dave Elis explained the changes that need to be made to the Bylaws and Collection Policy to bring these documents into compliance with the legal changes mandated by the 84th session of the Texas Legislature. The changes have been posted on the web site and were emailed to all residents who have registered their email addresses with the Association.

Changes to the By-Laws:

Now, only a majority of the Board need to be members (owners) in the subdivision. Prior to this change all directors had to be members.

The next change allows for the Board to call meetings without the prior 72 hours’ notice. Such meetings are referred to as Non-Noticed Meetings and can be called at any time by a majority of the Officers of the Corporation to discuss issues on which a delay until the next regularly scheduled meeting would be detrimental. However, such meetings shall not include the following subjects:

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fines,

•

damage assessments,

•

initiation of foreclosure actions,

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initiation of enforcement actions (excluding temporary restraining orders or violations involving a threat to health or safety),

•

increases in assessments, levying of special assessments,

•

appeals from a denial of architectural control approval,

•

a suspension of a right of a particular owner before the owner has an opportunity to attend a Board meeting to present the owner’s position, including any defense, on the issue,

•

lending or borrowing money,

•

the adoption of an amendment of a dedicatory instrument,

•

the approval of an annual budget or the approval of an amendment of an annual budget that increases the budget by more than 10 percent,

•

the sale or purchase of real property,

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the filling of a vacancy on the board,

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the construction of capital improvements other than the repair, replacement, or enhancement of existing capital Improvements, or

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the election of an officer.

Decisions can be voted on and approved by a majority of the directors using electronic or telephonic means and must be conveyed orally and documented in the minutes of the next regular or special board meeting.

The section on actions taken outside of a meeting having to be by Unanimous Written Consent has now been deleted. The directors now have the right to take any action on behalf of the Corporation, other than those that would fall under the bulleted items above, by a simple majority of directors.

Changes to the Collection Policy:

The section describing Payment Agreements has been modified to allow for payment plans to be extended from 10 months to 18 months. However the revision includes a statement of the Association’s preference that delinquent fees be paid prior to the due date of the following year’s assessment.

Record Retention Policy Change:

While voting on the above changes, Floyd Ball also requested approval of a minor change to the Record Retention Policy to state that most permanent files that had been stored at the PCMI office now be moved to the clubhouse following the recent relocation of PCMI to new facilities.

A motion was made to accept the revisions to the By-laws and the Collection and Record Retention Policies. The motion was seconded and unanimously approved.

The Meeting was adjourned at 8:50 and those residents interested were invited to stay to attend to a Board meeting to immediately follow at which Association officers would be elected.