Chelaque Estates Homeowners Association s2

Chelaque Estates Homeowners’ Association Board of Directors Meeting Minutes June 12, 2017

Members Attending: Tina Brasington – TB Ron Johnson – RJ Brad Orthmann – BO Dick Collins – DC Cher Lindenmuth – CL Dave Sholtes – DS Les Lindenmuth – LL Jill Vander Hook – JV

Members Absent: Pat Casey – PC Injury

I. Meeting Called to Order: RJ  Meeting was called to order at 9:03 am  Agenda Approval – LL motioned, DC seconded, all Members approved as submitted

II. Treasurer’s Report: BO Report for period ended May 31, 2017:

1. Cash Accounts & Reserves: a. Checking xxx1907 5,784.44 b. Savings xxx1917 145,400.64 151,185.08 c. Major Roads/Marina Reserves: c.i. Marina Reserve xxx9175 36,325.50 c.ii. 24 Mo CD: 0.95%-04/27/18 50,000.00* c.iii. 36 Mo CD: 1.15%-04/29/19 50,000.00* c.iv. 60 Mo CD: 1.60%-04/27/21 50,000.00* c.v. FTB Investment Account 200,000.00* 386,325.50 Total Cash & Reserves 537,510.58  Decreased 3,671.22 from 04/30/17  Construction deposits totaling 7,000.00 have been received for new home construction and/or renovation projects.

* Account valuations at 05/31/17:  FTB Investment Account - $220,223  CDs – Total of all three - $152,028

2. May disbursements totaled 8,832.61: Disbursements over 500.00 are below a.Cincinnati Insurance Co. 5,240.00: Renewal of commercial insurance policy b. All Seasons Landscaping 2,220.00: b.i. 1,400.00: Drop 2 anchors at marina to replace broken cable attachments b.ii. 820.00: Easement maintenance contract c.Kizer & Black Attorneys 682.50: Continuation of C&R and By-Law review

3. Accounts Receivable Balance 12,503.26: Decrease of 5,024.67 from 04/30/17 a.Received payment for 2 lots with liens from 2016-17 and 4 delinquent accounts re 2017 dues and other charges b. As of 05/31/17 2017 HOA dues are unpaid on 6 lots, including 2 with prior liens. Lien notification letters have been mailed to delinquent owners. c.Liens are held on 4 properties with assessments and other charges owing for years 2015 - 2017 totaling 4,154.88. Foreclosure proceedings are pending on 2 of these properties. d. Includes 6,068.25 receivable from IRS re 2014 failure to file penalty. Melissa Hill, CPA is representing CHOA with appeal to IRS.

4. Net Income Comparison - 01/01/16 – 05/31/17: a. Actual 134,537 b. Budget 119,279 c. Variance 15,258 Favorable

Profit & Loss Statement Variances from Budget: 01/01/16 – 05/31/17 - Details below: Definitions: FAV = Favorable to Budget; UNFAV = Unfavorable to Budget

Net Income (Excluding Marina) – FAV 10,365: Primary variances are shown below:

1. Roads Expense - FAV 8,842: a.Winter Maintenance- FAV 3,752: Due to mild winter weather b. Landscape Maintenance- FAV 800: Project delayed c.Safety- FAV 1,852: Projects incomplete d. Surface Maintenance- FAV 2,938: Roads assessment in progress to establish repair priorities e. Easement Maintenance- UNFAV 500: Remove tree blocking Chelaque Way

2. Legal Expense – UNFAV 182: Legal consultations for review of CHOA C&R and By-Laws

3. All other non-marina income & expenses – FAV 1,705: a.Claims re HOA violations- FAV 600: Unauthorized tree cutting b. Late Fees, Interest & Miscellaneous charges - FAV 352 c.Cabin Maintenance – FAV 455 d. All other – FAV 298

Net Income Marina – FAV 4,893: detail below: 1. Marina Slip Reservations - UNFAV 400: One slip available for reservation 2. Marina Projects - FAV 6,100: Projects under review 3. Marina Maintenance - UNFAV 808: Two replacement anchors to replace anchors with broken cable attachments

Other:  Delinquent accounts – details have been emailed to LL

III. Committee Reports

a. Access: DC  ACTION ITEM: Install new deadbolt; provide 12 new keys to RJ – Will install after today’s meeting. ITEM CLOSED  ACTION ITEM RJ: Distribute new Office keys to current Board Members and maintain log as per Gen/01 – Keys given to Board Members present; Key Control Log updated on laptop. ITEM CLOSED  One contractor has agreed to bid on Cabin repairs; will solicit a second.

b. Activities: JV  ACTION ITEM: Schedule date for Community Members interested in bidding on unneeded/excess items in Shed – bidding done – ITEM CLOSED  Open Silent Auction bids – Bids opened and awarded  Suggestions for shed items not sold – ACTION ITEM: Send email to Community offering remaining items free for the taking, prior to taking any disposal action.  Firewise Community Training presentation June 29, 10-12 am – Coffee and refreshments will be provided  Funding to purchase Christmas wreaths – Funds available in budget  Funding for the Low Country Boil picnic – Funds available in budget c. Architecture: TB  ACTION ITEM: Forward all finalized Policies & Procedures to CL for official update – all updated – ITEM CLOSED  Concern C2017-1 – Covenant violations on various Chelaque lots – Pending violations corrected or scheduled for corrections: P1L139, P2L049, P1L016, P2L005, P1L074, P1L025, P1L101, P1L070, P2L080, All Seasons. Violations with no response to date: P2L098, P1L079, P2L086 – After response date of June 20, report any outstanding issues to Board for discussion of potential future action.  Concern C2017-7 – Tree cut on P1L103 without approval – working with owner on fee payment  Tree approvals: P2L126, P2L127, P1L021  Building progress – Reviewed progress on current builds d. Communications: CL  Nothing reported e. Legal: LL  ACTION ITEM: Draft letters for Annual Meeting mailing explaining voting process and summary letter for CCR revisions – Drafts were provided for review at meeting. ITEM CLOSED  Voting/Proxy Process – A sample Proxy has been provided by our HOA Lawyer. Review and discussion of the letter detailing the new voting process took place. ACTION ITEM: Incorporate Board feedback and email revised version to Board Members for final review.  CCRs and By-Laws: o Letter for CCR and By-Law approval for Annual Meeting mailing was reviewed. ACTION ITEM: Incorporate Board feedback and email revised version to Board Members for final review. o Lawyer redline versions of proposed CCR and By-Law revisions were reviewed and discussed. ACTION ITEM: Have HOA Lawyer revise documents as necessary.  Foreclosures: o P2L090 – BO motioned to foreclose, no second, motion did not pass. DC motioned to stay with current lien, DS seconded; all Members approved. o P1L059 – After discussion, decision was made to take no further legal action at this time. ACTION ITEM: Contact owner to discuss options. f. Marina: PC  Since trash can has been removed from Marina area, Mar/01/Aug2014 Exhibit Mar/01d needs revision. g. Roads: DS  Emergency Repairs: o There are four washout areas on Chelaque endangering guardrails. We’ve received an estimate of $14,800 to stabilize the areas. JV motioned to approve expenditure and authorize budget overrun, TB seconded, all Members approved. Prior to proceeding, verify bid is a hard number, no Change Orders allowed. o There is a sizeable hole in the road on Channel Point at Lakeview. An accurate bid for repair cannot be given until digging up the area to see what’s underneath. LL motioned to proceed, after first requesting unit pricing, and to approve any budget overrun, DS seconded, all Members approved. o Trees overhanging the roads – Have received a bid from All Seasons covering all Chelaque roads, to cut back 10’ from road, 15’ high. Need to review current contract obligations before considering any further paid services. Also check if clearing roadside ditches of debris is in current contract.  Road Inventory – Chelaque Way and Keetoowah inventory complete.  Steel Guardrail Requests – Owner concern about potential icy road conditions as driveway meets the road. Discussion ensued with general consensus being any hazard is result of owner’s steep driveway, not common Chelaque property. Do not believe this is an HOA legal responsibility.  Bumpers for parking lot – Believe we can install ourselves with Community volunteers. Have priced materials at approximately $400 + shipping. DS motioned to proceed, LL seconded, all Members approved.

IV. Old Business  Code of Conduct for Board Members – tabled again due to PC’s absence  Nominees for 2018 Chelaque Board – JV will run to finish out term of resigned member; CL will run for a second term; we have one more definite, two more considering.

V. New Business  Remote trailer parking – Due to lot being at full capacity, discussion ensued as to possible restrictions on use – tabled for further investigation and review.  Policy/Procedure to follow for CCR violations (Arc/15-Leg/01 vs. Gen/09) – Discussion ensued on proper way to document covenant violations and whether it should be an entirely separate process from the Compliment/Concern process, as they frequently overlap. Need to review all three Policies & Procedures to reduce redundancy and identify the most efficient method of documentation.  Improper email – Discussion ensued on Board Member communications with HOA Members, as well as each other, in an effort to avoid confusion and sending mixed messages.  Board business through email – Discussion ensued on limiting email use for informational purposes and to present materials for pre-meeting review and to reserve issues requiring extensive discussion for Board meetings.  Back-up for Chelaque Messenger Email Distribution – TB will handle in Webmaster’s absence.

VI. Next Meeting  The next BOD meeting will be on July 10, at 10:00 am

VII. Meeting Adjourned  Meeting adjourned at 2:07 pm

Respectfully submitted,

______Cher Lindenmuth, Secretary Date Ron Johnson, President Date