Minutes of Board Meeting June 30, 2016

Board Attendees: Chris Dean, Dan Davis, Marc Foreman, Connie Andersen

Other Attendees:  Dave Rivers, Walt Pitt, Gordon Slater, Eddie and Diane Broyles

A.    Call to Order

The meeting was called to order at 6:00 p.m.

B.     Approval Last Meeting Minutes

May 14 minutes were approved by the Board.

C.    Review of Financial Statements

a.       Open Balance Report –Dan reported that everyone is current.

b.      Previous Owners - Cabinet and Bath and Paul Dunn Lots – Dan stated the lots on Oak Creek Circle were purchased by Vickie Stiles on August 24, 2014.    Dan proposed writing off the unpaid balance prior to August 24, 2014 since we cannot collect on past due amounts on bank foreclosures.  Board agreed to write off past due amount prior to August 24, 2014 for both lots.

c.       Cost Preview 2016 – Dan reported that the Jan – Jun 2016 net income is $15,964 and a cost review net income would be (minus 4.5% ($2,000)) = $13,964.

D.    Sign a Contract with Ozark Environmental –

Chris stated that there would be a 5% increase in expenses effective January 2017 with Ozark Environmental.  Dues increase will be reevaluated at a later time when we have more information.  The contract will be reviewed by the Board and our attorney.

Chris said we need to stay with a company that is certified with DNR to handle the water and sewer system.  Ozark Environmental checks the water every day and sends reports to DNR monthly.  It is very important for our subdivision to stay in compliance with the water quality standards.  Some of the water repair jobs would also require large equipment.  The HOA billing changeover from White River Electric to Ozark Environmental should occur in September.

60    Day Proposal- three Alternatives – Board reviewed the three proposals.

The Board reviewed the three proposals:

1.      Pay off the mortgage on the clubhouse debt of $78,000 @ 5.5% interest saving $14,400 annually.  Use the savings and dues after expenses to repair the roads.  The proposal estimates a fund of $39,500 per year.  This proposal is contingent on having no major breakdowns of the well or sewer system over the next 5-6 years.

2.      Pay down on the clubhouse debt by $40,000 and continue current payments of $1,200 per month.  Clubhouse balance is $78,000 - $40,000 = $38,000.  The POA would still have monies to repair roads and cover any major breakdown.  Estimates a fund of $25,130 per year.

3.      Use the funding available to start repair of the roads and not pay down on the clubhouse.

A general meeting will be scheduled to vote for one of the three proposals.  The proxy proposals will be emailed prior to the meeting. 

E.     POA Member’s  Letter

Water drainage problem – Al has asked the attorney to review.

F.     Review of Water and Sewer systems- John Goff

No report.

G.    Road Repair Proposal – Chris Dean

We do not have a final estimate on repairing the roads.  We would like to repair some of the bad areas that have large holes.  Chris said he wanted to make sure that we have enough to fix the roads and not spend all of our cash.  The last dues increase in 2010 was to set aside money for the roads.

H.    Swimming Pool and Club house- Marc Foreman 

Marc reported that the filter in the pool was replaced at a cost of $900.  The filter needs to be replaced every three years.  The tennis courts need to be power washed and cracks filled.

I.       New Items- Chris Dean - no new items.

J.      Adjournment

Dan motioned, Marc seconded, all were in favor of adjourning the meeting at 7:25 p.m.

Minutes submitted by Connie Andersen, Secretary.