September Minutes 2010>

 

Minutes of Board of Directors Meeting

Taberna Homeowners’ Association

September 1, 2010

 

 

Board Members Attending:

Rick Layton                 President

George McNulty           Vice President

Linda Pickens              Secretary

James Dugan              Treasurer

Willis Vincent                Member at Large

Russell Packard           Member at Large

John Serumgard           Member at Large

 

Also Present:  Dick Turner, Architectural Control Committee Chairman; Ron McCausland, Acting Chairman of Building & Grounds Committee; Pat Donnelly and Louise Vondran, Taberna Bear Committee

 

 

Rick Layton called the meeting to order at 5:30pm, there being a quorum present.

 

 

Covenant Violations:

 

Willis Vincent reported there were 2 Covenant violations cited in August:  one for a violation of the sign policy, and one for property maintenance.

 

 

Taberna Bear:

 

Pat Donnelly made a presentation to the Board on behalf of the Bear Committee.  In January 2011, the Taberna Bear will be moved from downtown to a location in Taberna.  A pedestal for the Bear will be constructed by the Committee at no cost to the HOA.  The Bear Committee has identified a permanent location for the Bear, on the right of the flag pole island at the entrance to Taberna, near the magnolia trees, and requested Board approval of the location.  Ron McCausland suggested that the Committee may need to get City approval for this location as there may be a right-of-way issue.  The Committee agreed to investigate this issue with the City and obtain approval, if necessary.  Linda Pickens made a Motion to approve the location of the Bear pending City approval, if required.  George McNulty seconded the Motion, which was unanimously passed.

 

 

Building & Grounds Committee:

 

Ron McCausland presented the Board with the Committee's proposal to add additional landscaping in front of Taberna Townes.  B&G scaled back the original scope of the landscaping plan (which the 2009 Board and the current Board had not approved) to approximately one-half of the width of the area in front of Taberna Townes.  The Board debated the merits of installing additional landscaping at this time, as well as the responsibility of the developer to landscape common areas within the Townes development.  The cost of the landscaping proposal is $4,174; to date, B&G has spent to date $473.89 in Beautification, with $3,526.11 remaining in beautification funds.  Jim Dugan stated that the cost overrun could be paid out of funds not used in other line items in the Budget.  John Serumgard made a Motion to approve the landscaping proposal, which was seconded by Russ Packard.  The Motion passed with Willis Vincent voting against the Motion.

 

Russ asked Ron about B&G's plans for future beautification in 2011 because the 2011 Budget is being developed.  Ron indicated about $5,000 in beautification in 2011 would be sufficient.

 

 

Architectural Control Committee:

 

Dick Turner advised the Board regarding a request from a resident to remove five trees.  The request was supported by a written opinion of a certified arborist that the five Loblolly Pines in such close proximity to the house posed a threat to the house.  The arborist stated the trees weight over 5,500 pounds each and typically break off at the lower limb level.  Should that happen, the trees will most likely fall on the house.  The ACC approved the removal of two trees, but the ACC asked for Board input given that the homeowner will most likely appeal their decision.  After discussion, the Board concluded that the removal of all five trees should be permitted citing the potential liability to the HOA should a tree fall on the house, and on the basis of the arborist's report.  Dick will take the Board's position back to the ACC for further action. 

 

 

(Willis Vincent left the meeting at 6:30 due to a prior commitment.)

 

 

Minutes:

 

George McNulty made a Motion to approve the August minutes, which was seconded by Rick Layton.  The Motion passed unanimously and the Minutes were approved.

 

 

Rick reported on several open items:

 

• Rick spoke with the HOA attorney and Chief Palombo of the Police Department concerning solicitation in Taberna.  As long as a solicitor has a Peddler's Permit, they are legally permitted to solicit within Taberna.  Solicitations by religious organizations do not require a permit and are legally permitted to solicit within Taberna. 

 

• There are two homeowners in Taberna who have declared bankruptcy.  The two homeowners are delinquent in the Annual Dues and have liens on their respective properties.  Because of the Bankruptcy proceedings, the HOA will not be able to collect on the past due amounts this year.  The liens on the properties remain in full force and effect.  Linda Pickens requested that we receive a written report from the HOA attorney on bankruptcy proceedings and its effect on the ability of the HOA to collect delinquent Dues and late fees.  Rick agreed to get a report from the HOA attorney.

 

 

Website:

 

Linda Pickens reported that it will cost $180 to post the Summary of Covenants and Rules on the HOA website.  Russ Packard made a Motion to approve the cost of adding the Summary to the website, which was seconded by John Serumgard.  The Motion was unanimously approved.

 

 

Treasurer's Report:

 

Jim Dugan provided his report which is attached.

 

 

2011 Budget:

 

The Board discussed the draft of the 2011 Master Budget, as prepared by Jim Dugan.  The line items at issue are the Landscaping Maintenance and Beautification funding which Jim continued to fund at prior year's levels.  The proposed budget included $11,550 for Landscape Maintenance and $8,000 for Beautification.  Linda Pickens noted that the B&G Committee feels they are over funded -- B&G feels that $5,000 for maintenance and $5,000 for Beautification is appropriate funding for 2011  With reduced funding in these line items, a reduction of dues in the amount of $7.50 per household would be achieved.  Jim argued that funds were needed in Landscape Maintenance in the event of an emergency, while other Board members noted that there was a reserve fund for just such events.  Jim noted that there was a historical history of B&G expending the $12,500 in maintenance.  Linda Pickens noted that a lot of those expenditures have been incorporated into the 2010-11 maintenance contracts (as evidenced by the 2009 Actual expenditures) so the current level of funding was no longer necessary.  After lengthy discussion, various line items in the proposed 2011 Budget were increased and some decreased so that there would be no change (and no reduction) in the annual dues.  George McNulty made a Motion to approve the 2011 Budget as revised, which was seconded by John Serumgard.  Rick Layton, George McNulty, Russ Packard, John Serumgard and Jim Dugan voted to approve the Budget.  Linda Pickens voted against the Budget on the grounds that it contained excessive funding not required to maintain the community in order to avoid lowering the annual Dues.  Willis Vincent was not present for the vote.

 

 

HOA Accountant:

 

John Serumgard discussed the questions posed by the Chairman of the Finance Committee regarding the form transmittal cover letter issued by the HOA Accountant which contained language being questioned by the Committee.  It was discovered that this was the first time anyone on the Board had seen the cover letter.  The questionable language stated:  "Management has elected to omit substantially all of the statements of cash flows required by generally accepted accounting principles.  If the omitted disclosures and statement of cash flows were included in these financial statements, they might influence the user's conclusions about the Taberna Master Homeowners Association, Inc.'s financial position, results of operations, and cash flows.  Accordingly, these financial statements are not designed for those who are not informed about such matters."  Given the level of concern by the Finance Committee, the Board wants to know what that statement means and when the accountant was directed not to include certain information, as it's possible that directive was given by Weyerhaeuser and may not be in the best interest of current Boards.  The Treasurer agreed to obtain answers to the questions raised by the Board.

 

 

There being no further business before the Board, George McNulty made a Motion to adjourn, which was seconded by John Serumgard.  The Motion passed and the meeting was adjourned at 7:40 pm.  The next meeting of the Board of Directors will be October 6, 2010.

 

 

 

Approved by the Board of Directors:

 

 

 

                            /s/                                                                  10/6/10             

By:   Rick Layton, President                                               Date:

 

 Treasurer’s Report (draft)
James Dugan, Treasurer
Wednesday, September 1, 2010

 

The status of 2009 aged receivables is as follows:

Taberna Master HOA had three court cases in the fall of 2009:

• The first payment plan is with an owner who agreed to the plan before the court date. The owner is paying in accordance with the plan. Balance owed is now $170.00.
• The second payment plan is for one of the two judgments. The owner is paying in accordance with the plan. Balance owed is now $261.00.
• The second judgment property owner contacted me after we placed the lien for 2010 dues. He said it has been a rough two or three years and that he will pay the lien first and then the judgment. Balance owed is now $1,505.50, of which $340 is for 2010.

Late fees “accrue” during the payment plans in the event of a default, but are “forgiven” if the payment plan is completed.

The remaining 2009 Taberna Master and Sub-Association dues assessments have been paid or otherwise resolved.

 

The 2010 Taberna Master HOA dues were 99.1% collected as of August 31st.

Total Aged Receivables were $7,429.50 as of August 31st. Of these, $3,926.50 are over 90 days due. Late fees are being assessed to the eight properties not on payment plans or in bankruptcy for dues not paid by August 31st. The remainder of the receivables are for lawn mowing and bush hogging services invoiced in August and not yet past due.

 

2010 Sub-Association dues status:

Abbington Woods:      3 accounts are being assessed late fees for quarterly dues not paid by August 31st. One owes for 2nd & 3rd  quarters. The other two owe for the 3rd quarter.

Boleyn Creek Villas:   All of the sub-assn dues have been paid and two have paid one quarter in advance.

One Taberna Way:     3 accounts are being assessed late fees for quarterly dues not paid by August 31st. A lien was placed on the one that owes for all three quarters. The remaining two owe for the 3rd quarter.

Taberna Landing:       All of the sub-assn dues have been paid.

 

HOA Invoices: All invoices received by August 31st have been forwarded to the Accountant for payment.

 

Lien Status: Fourteen liens were placed on twelve properties on July 13th. Two of these properties have since gone into bankruptcy. Five have paid their balance, including one with two liens. Of the remaining five, one has two liens.

 

Accountant: Our Accountant, Mona Sadler, has sent proposed contracts for the year 2011. These were emailed to all board members and are up for discussion tonight.

Branch Banking and Trust Accounts:	Beginning of Year	June 30th	August 25th
	End of Year	End of 2nd Quarter	(Online)
Taberna Master Deposit Account (IDA)	$15,805.08	$114,429.15	$97,061.66
Taberna Master Operating Account	15,540.49	14,870.39	4,354.88
Abbington Woods Operating Account	1,990.14	7,722.98	11,838.98
Boleyn Creek Villas Operating Account	1,543.43	2,392.37	3,462.68
One Taberna Way Operating Account	15,858.85	15,980.89	16,459.89
One Taberna CD	8,616.30	8,616.30	8,616.30
Taberna Landings Operating Account	1,510.72	2,548.76	3,144.70
Taberna Landings CD	5,034.67	5,034.67	5,034.67
Scott & Stringfellow:	Beginning of Year	June 30th	August 25th
	End of Year	End of 2nd Quarter	(Online)
Taberna Master Reserve	$96,453.69	$97,920.04	99,334.74
Taberna Emergency Reserve	50,693.54	51,516.98	51,642.96
Abbington Woods	12,529.11	12,704.61	12,772.32
Boleyn Creek Villas	3,994.58	4,026.91	4,035.15
One Taberna Way	38,316.52	42,195.09	44,481.46
Taberna Landings	12,598.88	12,640.90	12,644.38

 

 

“Online” bank balances do not reflect checks and deposits that have not cleared the bank.

“Online” S&S balances include unrealized gain/loss amounts. *Taberna Master Reserve and One Taberna Way totals are adjusted to show CD purchases that have not settled.

All of Taberna’s investments with Scott & Stringfellow are in FDIC insured CDs or money market accounts. As CDs mature and as cash accounts reach over $1,000, they are being reinvested in new CDs in $1000 increments. The advantage over every other type of investment is that the principal is guaranteed through FDIC for up to $250,000.

 

Second Quarter Financial Reports:

The Second Quarter Financial Reports were received August 2nd, have been reviewed, and have been forwarded to the Financial Committee and HOA Board of Directors.

 

2011 Budgets:

The Reserve for Analyses for the HOA and sub-associations and Drafts of Proposed 2011 Budgets have been approved by the Finance Committee. Only Boleyn Creek and Taberna Landings have a proposed increase in dues. A revised set of Proposed 2011 Budgets as approved by the Finance Committee was emailed to board members last week.

To date, the Abington Woods, One Taberna Way, and Taberna Landings sub-associations have reviewed and agreed to the proposed sub-association reserves and budgets.

 

Landscape contracts for 2011 were made last year and the 2011 contract figures were used for the budget. The accounting contract for 2011 has been proposed by the accountant. The proposed contract figures have been used for the budget. Other budget figures have been revised/estimated as accurately as possible.

To date, the Finance, Building & Grounds, and Denson Park Committees have commented on the budgets.

 

To date, the One Taberna Way and Taberna Landings sub-associations have commented on the sub-association reserves and budgets.