A meeting of the Board of Directors of the Williamsburg Settlement Maintenance Association, Inc. was held on Tuesday, September 16, 2014 at 5:30 p.m. at the office of Planned Community Management, 15995 N. Barkers Landing, Suite 162, Houston, Texas 77079.
ATTENDANCE
Board Members present were Michael Wood, Gail Owens, Walter Smith, Floyd Ball, Dave Ellis, Martin Spears and Larry Crain. Also in attendance was Dolores Sue representing Planned Community Management, Inc. (PCMI).
With a quorum being established, the meeting was called to order at 5:35 p.m.
MINUTES
The minutes of the August 19, 2014 Board meeting were reviewed. A motion to accept the minutes as written was made by Walt Smith, seconded by Gail Owens and unanimously approved.
HOMEOWNER CONCERNS
There were no homeowners present
PATROL SERVICE REPORT
Martin Spears told the meeting that once again it has been another quiet month within the subdivision. Martin explained that the sheriff is giving emphasis to speeding and vehicles stopping at stop signs.
FINANCIAL REVIEW
Dave Ellis presented the financials. As of August 31, 2014 the money in the bank totaled $707,425.30. 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. Delinquency for the month ending August 31, 2014 was $12,170.70.
OLD BUSINESS
Clubhouse Repairs - Martin Spears has been unable to obtain quotations for replacement of the iron fence around the pool area. He has, however, obtained an estimated price for the concrete repairs at the main gate and storage shed locations. This will be between $2,000 and $3,000. In addition to this, some work will be required on the tree by the main gate to avoid its roots causing future lifting of this concrete.
National Night Out - Michael Wood reported that the committee has done an excellent job and everything is ready for the residents to have a great time on October 7, 2014.
Perimeter Fence - As a result of questions related to our perimeter fence the Association Attorney reviewed some past actions by previous Boards and discovered that a mistake may have been made some 22 years ago when the Board took over an obligation for the perimeter fence based on a majority vote of the property owners voting. Such a change in responsibility should probably not have been made without an Amendment to the Declarations of Restrictions (Deed Restrictions) which by ARTICLE 27 would have required the notarized signature of at least two-thirds (2/3) of the then owners. Our attorney has advised that he would need to conduct research and an investigation of our current policy before he could render a legal opinion.
The Association entered into fence easement agreements with most property owners along the perimeter fence and has maintained the fence for the last 20 or so years. This being the case, our attorney advises that the Association can continue to maintain the fence under the current policy unless there is a vote to rescind this obligation and return full responsibility to those with whom the Association entered into fence easement agreements. Such a vote would require an amendment document approved by the notarized signature of at least two-thirds (2/3) of the current owners.
At this time the Board does not feel that it would be prudent to spend Association funds in pursuing the research or investigation necessary to render a legal opinion and thus responsibility for the perimeter fence will remain as at present.
NEW BUSINESS
2015 Pool Contract - The Board reviewed the proposal from A-Beautiful pools to provide the management of our pool in 2015. A motion was made by Dave Ellis to accept the new pool company contract. This motion was seconded by Walt Smith and unanimously approved.
Mulch for Playground - Dave Ellis reported that he had obtained two quotes on adding mulch to the playground. A motion was made by Dave Ellis to accept the lowest proposal which was $1,200.00 plus tax from Texas Lawn Care. The motion was seconded by Walt Smith and unanimously approved.
2015 Reserve Study - Dave Ellis presented the Board with the 2015 update to the Association’s reserve study. This update is to be given to the auditor for inclusion in the 2014 audit. A motion to approve the updated reserve study as presented was made by Walt Smith, seconded by Gail Owen and unanimously approved.
2015 Budget - The Board conducted a line-by- line review of the projected expenditures presented in the draft budget for 2015. As the budget contained some significant increases the forecasted income from all sources was examined very carefully together with different projections of delinquency and alternative annual fee assessments. As a result of more aggressive collection activity this year the decision was made to reduce the projected delinquency down to an all-time low of 1%. Even with this reduction, to achieve a balanced budget in 2015 would require an increase in the assessment fee. However, the majority of Board members felt that the fee should stay at its current value until an actual deficit is experienced.
Accordingly, a motion was made by Walt Smith to have the 2015 assessment rate remain at $700.00 even though this will result in a projected deficit for the year. The motion was seconded by Martin Spears and approved with a vote of 5 in favor, 1 opposed and I abstention.
2015 Assessment Rate - The 2015 Assessment rate will remain at $700.00 per home. The Board requested that, if possible, the invoices be mailed November, 14, 2014. There will be a letter from the Board included with the invoices.
ADJOURNMENT TO EXECUTIVE SESSION
At 7:20 p.m. the meeting was adjourned to executive session
Decision Made During Executive Session:
Deed Restriction Violations - The Board reviewed all deed restriction violations. There were no new accounts to be turned over to the Association attorney. There are several accounts at the attorney’s for legal action and one on which a suit has been filed in order to have them comply with the deed restrictions.
Delinquencies - Delinquencies were reviewed. Accounts at the attorney can expect their legal expenses to increase the amount due by multiple times the original fee.
ADJOURNMENT
With no further business the meeting was adjourned at 8:10 p.m. The next meeting will be October 21, 2014 at the Association clubhouse.
