A meeting of the Board of Directors of the Williamsburg Settlement Maintenance Association, Inc. was held on Tuesday, November 15, 2011 at 5:30 p.m. at the Williamsburg Settlement clubhouse, 1602 Hoyt, Katy, Texas 77449.
ATTENDANCE
Board Members present were Floyd Ball, Dave Ellis, Walter Smith, Larry Crain, Cyndy Thompson, Don McClelland and Martin Spears. Also in attendance were Dolores Sue and Joe Ristuccia representing Planned Community Management, Inc. (PCMI) and Officer Paul Wilburn.
With a quorum being established, the meeting was called to order at 5:30 p.m.
MINUTES
The Board reviewed the minutes of the October 18, 2011 meeting. A motion to accept the minutes as written was made by Walter Smith seconded by Dave Ellis and unanimously approved.
HOMEOWNER CONCERNS
There was one (1) homeowner present for the Customer Concerns portion of the meeting. The homeowner expressed his appreciation for the Board’s service.
He began by informing the Board that he was recently bitten by a vicious dog. He was able to restrain the dog in his back yard until the County arrived to remove the animal eighteen to twenty-four (18-24) hours later. He said that a deputy did arrive at his home in one and one-half to two (1 ½ - 2) hours and followed him to the Emergency Room where he had to receive some very expensive treatment. He asked the Board to let the residents of our subdivision know that he is licensed to carry a firearm and should a similar situation occur in the future he fully intends to shoot any dog that attacks him.
He then went on to discuss the recycling program. He stated that he had followed the recycling truck from 7:59 a.m. to 10:30 a.m. on the last pick-up day prior to the meeting and he had counted 194 homes with recycle bins awaiting pick-up. He does not feel that this is a good enough percentage participation to warrant the cost of the program, which the Board informed him, is just $1.35 per home per month. He would like a survey of the residents conducted to determine how many wish to continue to use the recycling program. Further, he alleges that the trash company may not even be taking the recycled material to a proper recycling facility. The Board assured him that this is not the case and gave him the address of the local baling facility (15202 Dora Lane, Sugar Land 77498) from where the baled material is shipped to the Recycling Foundation in Baton Rouge.
The Board informed him that when the trash contract was last renewed the Association saved $19,339 over the money that was allocated in the 2010 budget based on the then current contract. This allowed it to include the recycling program, which it still believes is valued by most residents. The Board stated that they will take his suggestions into consideration when the contract comes up for renewal in 2013.
The resident stated that a number of years ago he was granted Power of Attorney by a large number residents giving him the authority to cast proxy votes on their behalf. As these documents are notarized and still valid he is prepared to use them to attempt to effect the changes he would like to see in the way in which the Board conducts its business. He also stated his intent to challenge all proxies used at the annual meeting that are not notarized. The Board informed him that the current law does not require the Associations proxies to be notarized.
His next item was that he wants the Board to seek competitive bids for the administrative services function that has been performed by PCMI since the inception of the subdivision. He was told that the opinion of the Board is that it is currently getting excellent value for the money spent, which has not increased for a number of years, and that PCMI provides the history and continuity that is very valuable to the Association as Board members come and go. He stated that if needed he will use his proxies to call a special meeting of the membership at a cost to the Association of about $1,800 to make this happen if the Board does not voluntarily accede to his request. Further, he will use his proxies to oppose the reelection in April of any Board member who is unprepared to support his position on this issue.
He asked the PCMI manager if she was aware of First Colony and that they paid $150,000 a year for management. She assured him that she is aware of First Colony.
His next item was closed meetings. He does not believe there should be any closed sessions. The Board explained that the only closed portion of the monthly meetings is the executive session during which individual deed restriction violations and maintenance fee delinquencies and any other subjects that are of a private and sensitive nature are discussed. Furthermore, the right to hold discussions of such confidential material in a closed session is embodied in the 2011 legislative changes with which the Association is fully compliant. With the exception of the executive sessions all Board meetings will be open to Association members.
At this time the Board thanked the resident for his comments and he left the meeting.
PATROL SERVICE REPORT
Martin Spears presented the patrol service report. He expressed his continued satisfaction with the service being provided.
FINANCIAL AND DELINQUENCY SUMMARY
Dave Ellis presented the financials. As of October 31, 2011 the money in the bank totaled $439,930. This includes checking, savings accounts and CD’s and is the money to cover both operating expenses and the necessary reserve to fund maintenance and replacement of the Association’s capital assets.
Dave Ellis reminded the Board that December of each year is the month when the transfer of funds to the reserve account should occur. As there is no meeting scheduled for December he recommended that the financials be reviewed at year-end and if there is excess money over and above that forecasted after all 2011 commitments have been met that this be transferred to the reserve to help offset some of the excess cost incurred by the pool re-plastering currently in progress. Larry Crain made a motion to have a committee of Officers Dave Ellis, Walt Smith and Floyd Ball review the year-end financials and if there is any money in excess of that forecasted, to decide on how much of it, in addition to the $20,600 already budgeted for transfer, should be moved into the reserve fund. Cyndy Thompson seconded this and the motion carried.
Delinquency for the month ending October 31, 2011 totaled $33,073.
OLD BUSINESS
Perimeter Fence Repair Update - Larry Crain reported the Saturday in October fence repair project went extremely well. There is another work session scheduled for November 19, 2011.
He reported there were a couple of small poison ivy cases. Further, he explained there are some more reasonably priced cedar pickets available. These are little thinner than those used in the past, but look fine and will be quite adequate for the temporary repairs currently being
made. A motion to allow Larry Crain to spend up to $1,000 for the pickets required for the November 19 work session was made by Walt Smith, seconded by Martin Spears and unanimously approved.
Additional Tree Trimming Update - Larry Crain informed the Board that the entire common area tree trimming that had been approved has now been completed.
Pool and Baby Pool Repair/Replastering Update - Upon draining the pool it was found that the pool plaster needed to be totally removed as opposed to a bond coating being applied as was initially approved. This was because the pool already had three coats of plaster some of which was loose which made the addition of a bond coat impractical. The Board had voted on this by e-mail so that the work could proceed and this decision was ratified at this meeting. The Board also approved any other necessary incidental expenditures that come to light as the work proceeds. This includes the replacement of cracked and broken hangers for the lane ropes and whatever repairs are required to the pool lights.
Clubhouse Roof - Dave Ellis reported the clubhouse roof replacement is now complete, with the exception of some flashing that will need to be added following the chimney foundation work (see below). As this will require the roof contractor to make a return visit there may some minor additional cost involved.
Christmas Decorations Volunteers - Martin Spears reported there have been no volunteers for the community decoration project. Dave Ellis will send out a second e-mail on this topic.
Yard of the Month - Cyndy Thompson reported she has selected a residence to receive the Yard-of-the-Month award and will be contacting the resident to ask them if they will accept it and allow the sign in their yard. She will prepare a brief write-up for Dave Ellis to post on the website and to go into the newsletter.
NEW BUSINESS
Pool Contract - Dave Ellis presented the Board with five (5) proposals for the 2012 pool service contract. While there has been a good working relationship over the years with Lone Star, the incumbent pool company, its bid was the highest. In addition as it was not selected to re-plaster the pool it sent a letter rescinding its proposal for continuation of the pool service contract. Dave Ellis informed the Board that the most competitive bid was offered by Houston Recreation Management (H-Rec). Dave Ellis and Floyd Ball reviewed its proposed contract in detail and submitted requested changes, all of which were accepted by H-Rec. In addition, references were checked and were very positive. All companies were invited to present options for a three-year contract and H-Rec offered the second and third year with a not-to-exceed price escalation of 4% with a thirty day no penalty cancellation. A motion to accept the Houston Recreation Management Contract proposal for a three (3) year contract term to begin January 1, 2012 was made by Cyndy Thompson, seconded by Walt Smith and unanimously approved.
Clubhouse Repairs – Subcommittee Report - Subcommittee members Larry Crain, Martin Spears and Dave Ellis have reviewed the balance of the work required to complete the renovation of the clubhouse that was begun earlier in the year. A list of the remaining tasks was made and bids taken on each. Larry Crain presented a bid from Baker Marble to replace the vanities with double sinks and granite counter tops in both restrooms. He brought some granite
samples for the Board to inspect. Bids for hallway carpeting were obtained and Larry also showed some carpeting samples of varying grades. Martin has been investigating non-slip tiles for the restrooms. Samples of these indicating color choices were also inspected. He also presented a bid to replace the pump room doors which will no longer close. Dave Ellis presented the cost to replace the lights in the restrooms and the access hallway and summarized all the bids. A motion to accept the subcommittee’s recommendations that would incur a cost not to exceed $11,500 was made by Walt Smith, seconded Martin Spears and unanimously approved. The work will be managed by Larry and Martin and will be scheduled so as to minimize inconvenience to clubhouse rentals, the schedule of which is posted on the Clubhouse Bookings page of our web site. Final selection of materials and colors will be made by the subcommittee with input from other Board members as required.
Clubhouse Chimney Foundation Repair - Dave Ellis presented a proposal from M & C Foundation Repair for $1,600 to repair the foundation of the chimney, which is now leaning. This bid was $800 less than Olshan, which is not competitive on such small jobs and which recommended this company. Walt Smith made a motion to accept the proposal seconded by Larry Crain. As soon as the foundation work is complete Dave Ellis will contact the roofing company and have the flashing installed (as was discussed earlier).
2011 Audit - Dave Ellis presented the proposal from Kenneth Johse, CPA to perform the annual audit of the Association books and to file the Association’s income tax return. His price is $1,445, unchanged from last year. He has been the auditor for many past years and has done very good work and is able to do hold down the cost due to his familiarity with the PCMI accounting and record keeping systems. Walt Smith made a motion accept the contract. The motion was seconded by Dave Ellis and unanimously approved.
Clubhouse Rental – Number of Officers Required - Dave Ellis explained the rules requiring security guards for clubhouse rentals and expressed the view that when an event is over by 6:00 PM, such as is often the case with a baby shower or birthday, even though attended by more than 50 people the requirement for the renter to have to pay for a security guard for four (4) hours seems excessive. Similarly, when an event is attended by more than 20 young people between ages 13 and 21 but are accompanied by their family members. Dave Ellis made a motion to revise the clubhouse security rules to read that one security guard is only required when an event is attended by 50 or more people and continues past 6:00 PM or 20 or more people between the ages of 13 and 21 unaccompanied by their family members. The requirement for two security guards whenever alcohol is served will remain. This motion was seconded by Walt Smith and unanimously carried.
ADJOURNMENT TO EXECUTIVE SESSION
At 7:00 p.m. the Board adjourned to executive session to discuss Delinquencies, Deed restriction matters and contracts.
Delinquencies
The Board reviewed the delinquent report and disposition of same.
Deed Restriction Violations
The Board reviewed the deed restriction inspection edit list and the disposition of same.
ADJOURNMENT
At this time the Board reconvened to open session to inform residents of decisions made during executive session. There were no homeowners present.
Decisions Made During Executive Session
Delinquencies - Because there is no December meeting and there may be a requirement for legal action requiring immediate decisions in regard to foreclosures between now and the January meeting, Officers Floyd Ball, Dave Ellis and Walt Smith need the authority to make decisions on such issues. A motion to grant this authority to the Officers, while keeping the entire Board apprised, was made by Cyndy Thompson, seconded by Larry Crain and unanimously approved.
Floyd Ball explained that the process for foreclosure is that when the attorney goes to foreclose he is not to bid unless there are no other bidders. If no bidders are present he can bid up to the amount owed the Association. He recommended staying with this policy. The Board unanimously agreed to stay with the current policy.
There are some write- offs on accounts that have been foreclosed upon by the mortgage company. Floyd Ball will get with PCMI to make sure this happens.
Deed Restriction Violations - The Board instructed PCMI to have the Association send one more letter to a resident who is at the attorney for both delinquent maintenance fees and deed restriction violations.
With no further business the meeting was adjourned at 7:15 p.m. The next meeting will be January 17, 2011
