Minutes of the Board of Directors Meeting of Sunrise Desert Vistas Property Owners Assoc., Inc. June 2, 2007 Present: Absent:
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- Blaise Weaver
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1 1 Minutes of the Board of Directors Meeting of Sunrise Desert Vistas Property Owners Assoc., Inc. June 2, 2007 The Board of Directors meeting of the Sunrise Desert Vistas Property Owners Assoc., Inc., an Arizona Corporation was held at N. 136th Street, Scottsdale, Arizona on Saturday, June 2, 2007 at 9:30am. All Board members were notified of the meeting via three (3) days or more prior to the meeting in accordance with Article VIII, Section 2 of the Bylaws. Present: Joseph Debenedictis, Vice President, Rob van Zweeden, Director Geri Moeckel, Director Absent: David Gallimore, President Ed Biszantz, Treasurer (Letter and Treasurers report via enclosed) Guests: None Chairperson: Joseph Debenedictis Secretary (of Meeting): Rob van Zweeden Quorum: Declared by the Chairperson. Minutes: The minutes of the May 29, 2007 meeting were reviewed. Minor corrections were made. An important correction was made, under Quorum it should read: Quorum was declared under advisement of legal counsel Agenda: The presiding Chairperson presented the following Agenda. 1) Reports 2) Old Business a. Far Niente/Knelson Property- Lot split violation b. Annual dues c. Directors Insurance d. Correspondence and Paperwork 3) New Business 4) The time and location of the next Board Meeting. Reports: Treasurer: A Treasurer s report was received via . It is attached to these minutes. Discussion on the report was initiated. None of the Board Members present had yet received a copy of the property owners who had not paid their annual dues. The letter accompanying the Treasurer s Report had two other items; one will be addressed in Agenda 2c. The second item, the invoice for Warner, Angle, Hallam, Jackson, and Formanek 2
2 (WAHJ&F) will be held over till the next meeting as Joe is discussing the bill and certain items on the bill with the legal staff. Motion: To advise the Treasurer not to send payment at this item to WAHJ&F until Joe completes discussion of the bill. Second: Joe Debenedictis Discussion of the Report was closed Motion: To accept the Treasurer s Report as received. 1) Old Business a) Far Niente/Knelson Property- Lot split violation Discussion was opened. The May 17th letter from our attorneys was reviewed. The concern of certain members of the Board were, that based on the past activities of the owners of this property, one entity, be it the Knelson s, could sign an agreement with the Association and then Quit Claim the property to another party not a signatory on the agreement and we could face the same lot split violation all over again on the 9.1 parcel they currently own. The matter of precedent is of great concern with members of the Board, with as many acres as SDV still has available for development, the possibility of facing this over and over again does exist. The arguments against proceeding are mainly cost factors but what are the cost considerations going to be if there was to be a 40-acre lot split violation. The fact, was again raised, that they only had one variance, albeit an inappropriate one, but they are developing had three lots. Further mention was made that they have never taken the opportunity to discuss their options, remedies or any matters pertaining to the violation directly with the Board but have constantly stalled, delayed and offered resolutions that are not viable nor feasible in the Board s estimation via their attorney. The discussion reverted back to the meeting of Saturday, April 28th, 2007, where the Board, discussed and voted on a plan to resolve this issue. The attorney was instructed by the Board to start the process of compliance. (See attached from Dave Gallimore, dated April 29, 2007). Motion: To advise the Association attorney s to proceed with Option Two (2) as outlined in the attorneys letter of May 17, 2007 b) Annual Dues. As bought forward by the Treasurer, the Board may need to set a date to payment of dues. Even though the invoices were sent out and some property owners have paid a large amount is still outstanding. Further discussion on setting a firm date was delayed because we don t have a clear understanding of who owes and how many 3
3 4 of property owners that are still outstanding are those from whom we have received return mail. Discussion centered on setting a date 15 days after the sending of the new invoices, and that will have to wait until Ed can inform the Board of when he can print the next invoices. Motion: To advise the Treasurer to place on the next invoice, to all those Property Owners with outstanding balances, that the amount outstanding is due in 15 days after the date on the invoice and that a late payment penalty of $15 will be assessed c) Directors Insurance The members of the Board expressed concern that as yet we have not seen a copy of the Directors Insurance Declarations coversheet that normally accompanies any insurance policy. It was noted that the Treasurer stated previously that he did pay State Farm the initial policy payment but we have not yet received that information. With the possibility of pending litigation the Board members feel that this is a priority in obtaining. Motion: To advice the Treasurer to immediately contact State Farm to obtain a Director s Insurance policy coversheet. If a copy of the declaration page or policy information is not supplied by either State Farm or the Treasurer, that Joe go back to the agent that gave us the previous quote and put in place a new policy. d) Correspondence and Paperwork The signed paperwork for the installation of Geri Moeckel was received and placed in the records of SDVPOA Motion: To accept the paperwork without discussion. 2) New Business a) Removal of Secretary The Board appreciates the assistance that has been given by Rosie Holewinski in both her time and effort. Due to the unusual circumstances that occurred at the May 18, 2007 meeting and the subsequent resignation of Bernie Potoff, and the possible pending litigation, it was suggested that a new approach to the minutes and the record keeping should occur. Under Article X Section 4 of the SDVPOA s Bylaws Any officer may be removed, either with or without cause, by the Board. Motion: To remove the current Secretary
4 b) Election of Secretary Motion: To elect Rob van Zweeden as Secretary to the SDVPOA. c) Removal of President of the Board of SDVPOA Due to the unusual circumstances that occurred at the May 18, 2007 meeting, the subsequent letter to the various members of SDVPOA and the continued absence of the current President, Dave Gallimore, for the 3-4 month time frame over the summer, it was felt by the majority of the Board members that it would be in the best interests of the Association to rotate the leadership of the Association. This upcoming period may well be the most time intensive period the Board may face for some time. The need to have someone that is able to deal with the Associations matters in a timely and local manner is of outmost importance. Under Article X Section 4 of the SDVPOA s Bylaws Any officer may be removed, either with or without cause, by the Board. Motion: To remove Dave Gallimore as President of the SDVPOA. d) Election of President Motion: To elect Joe Debenedictis as President to the SDVPOA. Motion: Geri Moeckel e) Election of Vice-President Discussion was had concerning filling this position and it was felt that having some else local during this busy time would facilitate the moving forward of the Association. Joe asked if Rob van Zweeden would be interested in the position. He indicated he would at this time fill in that role. Motion: To elect Rob van Zweeden as Vice-President to the SDVPOA. Motion: Joe Benedictis f) Recovery of Records. It was discussed that Joe would contact Rosie regarding the current location of all the Associations Minutes and Records. An up-to-date mailing list would be 5
5 requested from the Treasurer and maintained in the Secretary s files. All records would be available to all members in accordance with Article XI Section 1 of the Associations bylaws. h) Grading The Board recognizes that grading needs to be done to the roads that fall under the control of the Association. Discussion will be initiated with contractors as to cost and timing of the process, i.e. whether to grade before or after the monsoon season, or to limit the immediate grading to the main roads with follow-up after the rains of the lesser used roads. g) Use of the Website Discussion was initiated concerning the use of the website. The Board felt that is was being underutilized for the dissemination of information about the Board, its actions and Minutes. As soon as all the records are received and complied then they will be placed on the website. Sensitive information regarding litigation and personal information of members would be redacted in accordance with ARS , a copy of which is attached to the end of this record. It was suggested that at the time of reading and approval of the Minutes at the next immediate Board meeting that the minutes be voted on for acceptance, then with the Boards approval and vote, items that need to redacted be noted and then placed the redacted copy be placed on the website as soon as possible Action on the item was tabled until the next meeting when all the records should be available. h) Updating the CC&R s and Bylaws It was suggested that the Board start to review the current controlling documents, both the CC&R s and Bylaws and bring then up-to-date with current legislation that affects Property Owners Associations. The Board has also received suggestions from the Members of the Association that it should begin to formulate a list of items that need to be discussed, reviewed, and disseminated to the members of the Association prior to the Annual General Meeting so voting on those items may occur at that meeting, e.g. Disclosure Statements to be signed by any candidate running for office, declaring any conflict of interest, or declaring their property free of CC&R violations. Building height restrictions. These are matters that Board realizes need to be discussed and sent out to Members well before the elections in February i) Location and Time of Next Board Meeting. No meeting was set at this time the Board will be contacted via of the location and time of the next meeting The Meeting was adjoined at 11:25pm
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