Minutes of the Meeting of the Board of Directors of Cape Royale Property Owners Association, Inc

Cape Royale Property Owners Association, Inc.

MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF CAPE ROYALE PROPERTY OWNERS ASSOCIATION, INC. HELD MARCH 25, 2009 AT 4:00 P.M. IN THE CAPE ROYALE CIVIC ROOM

DIRECTORS PRESENT Pat Johnson, President Steve Long, Vice President John Hall, Treasurer Barbara Moore, Secretary Ken Clark, Parliamentarian James Chesser, Director Susan Vaughan, Director

IN ATTENDANCE Don Craven, Community Manager Pat Hitt, Communications Committee Barbara McDowell, Marina Committee Jimmy Smith, Marina Committee Richard Masterson, Facilities Committee and Boating Association Linda Walker, Grounds Committee Dick Collier, Finance Committee Bob Husmann, Roads Committee Tom Bravenec, Deed Restriction and Delinquent Fee Committees Glenda Shuttlesworth, Cape Royale Civic Association Virginia Shackouls, CRUD 15 additional property owners were in attendance Joni Pursley, Association Management, Inc.

CALL TO ORDER Due notice of the meeting having been given and a quorum present, the meeting was called to order. The President, Pat Johnson, presided and the managing agent assisted in recording the minutes.

A moment of silence was observed followed by the Pledge of Allegiance.

MEMBER PARTICIPATION GUIDELINES Pat Johnson welcomed all in attendance and reminded the guests present of the Member Participation Guidelines.

TREASURER’S REPORT Month Ending February 28, 2009: A written report was received and accepted. John Hall further reported that a payment of $166,534.90 was received from the insurance company on the Marina claim that is not reflected in the February financial statements.

of 6 0140c8e65dcb8bc5612362beb07296b5.doc CONSIDERATION OF MINUTES With no corrections to the minutes of the February 25, 2009 regular meeting and the March 16, 2009 special meeting, they were accepted as written.

PRESIDENT’S REPORT Pat Johnson reported that the proposed San Jacinto County Inter-local Agreement for debris removal after a state declared disaster was approved in Commissioner’s Court.

The POA had requested assistance from FEMA and had been denied. The appeal letter will be mailed in the next few days along with the signed County Inter-local Agreement.

The POA is still looking for a chairperson for the Gate committee and asked for those interested to volunteer.

Mr. Johnson stated that House Bill 3287 is currently in committee review in the current Texas Legislative session. This bill would be beneficial to the Cape Royale community as it is a proposed amendment to the Texas Property Code Chapter 211 that would make an amendment of the deed restrictions for communities with more than fifty percent of the lots being both owned by non-residents and unimproved a more reachable task. Mr. Johnson requested that owners contact their local legislative members to show their support of HB 3287. Joni Pursley stated that anyone wanting more information on the matter to email her. Ms. Pursley further stated that there are other bills being considered during this legislative session that impact the operations of property owners associations; HB 1976, HB 1977 and HB 899; and asked that when contacting legislators in support of HB 3287, they also relay their opposition to the other three bills.

Emergency Generator: Pat Johnson recommended the purchase of a generator and power transfer kit for the POA office in the event of another disaster. The proposed 5000 watt generator and power transfer kit equipment purchase would total less than $1,000.00. It would then require the services of an electrician for installation and set up. A motion was made by James Chesser and seconded by John Hall to approve spending up to $1,500.00 for the purchase and installation of the generator and power transfer kit. The motion was approved with Ken Clark not voting. The purchase will be made from the Contingency Fund budget.

Pool Committee: Pat Johnson explained that without a Pool Committee chairman, there would be no pool for the summer. Pat Gandy has volunteered to chair the committee, but is no longer a property owner in Cape Royale. A review of the governing documents shows no requirement that a committee chairman must be a property owner. Discussions with Mrs. Gandy have also brought about a recommendation that the family membership pool fee be increased from $30 to $40.

A motion was made by Steve Long and seconded by Susan Vaughan to appoint Pat Gandy as the chairman of the pool committee. The motion was unanimously approved.

A motion was made by Susan Vaughan and seconded by Steve Long to increase the pool fee to $40 per year for a family membership. The motion was not approved by a vote of two in favor and four opposed.

of 6 0140c8e65dcb8bc5612362beb07296b5.doc A motion was made by Barbara Moore and seconded by Ken Clark to allow the pool membership fee to be waived for the aerobic exercisers using the pool during exercise time. The motion was not approved by a vote of five opposed and Barbara Moore not voting.

MEMBER PRESENTATIONS None.

RESIDENT COMMENTS Don Freel asked the Board to approve the idea of placement of blue reflectors being placed in the road to identify the locations of fire hydrants. After discussion, it was resolved that the Board is in favor of encouraging Mr. Freel to pursue having a civic organization do this at no charge to the POA.

MARINA COMMITTEE REQUEST Interior of Marina Office/Store: The Board reviewed and discussed the committee’s recommendations for the proposal for the interior of the Marina office and store. A motion was made by Ken Clark and seconded by John Hall to accept the bid from Hoot Gibson and M. Allen. The motion was unanimously approved.

DISASTER PLAN AND RECOVERY MANUAL James Chesser reported that the Disaster Plan and Recovery Manual documents have been finalized and the manual will be assembled. This plan was put together through the efforts of representatives from the POA, the Utility District and the Cape Area Volunteer Fire Department.

AGREEMENT FOR USE OF BOAT SLIPS Pat Johnson reported that property owner Betty Holitzke had requested a refund of boat slip fees that were paid annually in 2008. The refund request is for the time that Mrs. Holitzke was unable to use her boat and slip following Hurricane Ike. Mr. Johnson reviewed the terms of the agreement that mandate that the cancellation of a contract would occur if the owner notifies the POA in writing of the date the boat and lift will be removed from the stall in the required 30 day notification timeframe. The agreement specifically states that the POA is not responsible for non-use of the facilities caused by a hurricane.

THE RESERVE “LOLLIPOP” Pat Johnson reviewed a letter from property owner Jay Mincks requesting exclusive use of the Lollipop and approval of the relocation of the existing access easement. Mr. Johnson stated that the negotiations for this have been ongoing for a period of time and asked the owners in attendance for their input.

Elgean Shield stated that the POA should not get money for this transaction and should not try to soak the owners. James Chesser stated that the POA is not intending to “soak” anyone; that this transaction would provide a great value to the Mincks and therefore should be worth something to them.

Bob Hussman suggested that an option to have the Lollipop extended to further protect the Marina be included in the negotiation.

of 6 0140c8e65dcb8bc5612362beb07296b5.doc Mr. Johnson thanked the owners for their input and stated that action would be taken following a Board discussion during the Executive Session.

COMMITTEE REPORTS AND ANNOUNCEMENTS Grounds: A written report was submitted.

Finance Committee: A written report was submitted. Mr. Collier stated that the previous decision to hold off on action to invest the POA funds needs to be rescinded as several CD’s will be maturing in the very near future. Mr. Collier had researched and found the Amegy Bank offers a money market account with a 2.25 % interest rate. Joni Pursley was asked to look into this with AMI and get back with Mr. Collier. All options will be provided to the Board before the next Board meeting.

Trailer Storage: A written report was submitted. Don Craven reported that there are now only eight on the waiting list.

Parks & Recreation: A written report was submitted. Pat Johnson stated that the report contains information about a series of work days and encouraged volunteer participation.

ACC: A written report was submitted.

Club: A written report was submitted.

Wildlife Management: No report.

Election: Don Craven reminded all that absentee ballots are due by 5:00 p.m. on Friday.

Communications: A written report was submitted.

Deed Restrictions: Tom Bravenec stated that the deed restrictions are not being enforced; he is concerned over “abandonment” and feels that someone should check into this.

Delinquent Fee Collections: Tom Bravenec reported that there are currently $500,000 in delinquencies and that nothing is being done right now. Don Craven reported that he has sample letters prepared and ready for Mr. Bravenec. Mr. Bravenec stated that he is not sure if court proceedings will be as successful in this economy as they have been in years past. Pat Johnson asked to set up a meeting with him, Tom Bravenec and Don Craven to determine what is needed to proceed.

Marina: A written report was submitted.

Facilities: Richard Masterson reported a continuation of painting and cleaning projects.

Roads: Bob Hussman reported the recent completion of a tour of the roads and repair needs and that he would be putting together a list of the needed repairs and costs for presentation to the Board.

of 6 0140c8e65dcb8bc5612362beb07296b5.doc Gate: No report.

Pool: No report.

OTHER REPORTS AMI: A written report was submitted.

Community Manager’s Report: No report.

Utility District: No report.

Cape Royale Boating Association: Richard Masterson requested the approval of the POA for the donation and installation of benches and pavers. A motion was made by Ken Clark and seconded by John Hall to accept the donation of the benches and pavers from the CR Boating Association. The motion was unanimously approved. Mr. Masterson further reported that a Marina work day was scheduled for April 25, 2009.

Civic Association: A written report was submitted. Glenda Shuttlesworth reminded owners that a Cinco de Mayo celebration would be held on May 2, with the Civic Association annual meeting being held the same day. Mrs. Shuttlesworth also reminded owners that tickets are available for the benefit fire department barbeque and that she hopes to have the directory available at the annual meeting.

ADDITIONAL RESIDENT COMMENTS None.

SCHEDULE NEXT MEETINGS The Cape Royale Annual Meeting and Election is scheduled for April 4, 2009 at 10:00 a.m.

The next Board meeting is tentatively scheduled for Wednesday, April 22, 2009 at 4:00 p.m.

ADJOURNMENT TO EXECUTIVE SESSION A motion was made by John Hall and seconded by Ken Clark to adjourn the meeting to executive session to discuss POA contract negotiations. The motion was unanimously approved.

ADJOURNMENT A motion was made by Steve Long and seconded by John Hall to adjourn the meeting. The motion was unanimously approved.

Respectfully submitted,

______

of 6 0140c8e65dcb8bc5612362beb07296b5.doc Secretary Date

Approved:

______Chairman Date

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