THE COVES HOMEOWNERS ASSOCIATION
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1 THE COVES HOMEOWNERS ASSOCIATION MINUTES OF THE ANNUAL MEETING FOR 2016 DATE: Tuesday, January 10, 2017, 7:00 PM LOCATION: The Lake Wylie YMCA, Clover Bank Community Room IN ATTENDANCE: Steve & Kema Salata Jamie Toti Jason Gomes Kimberly Keefe & Dave Kohout Tom & Linda Balek Dick & Sandy Ifkovits Lance Beehler Jennie & James Kehr Darrel Myers Tom & Sandy Wolfe Alisa Reid Duane Stimac Jon Stewart Debra & Rion Rivas Nathan Lebioda Vince Pinti Chris & Vanessa Pierce Jeff & Cathy Mason HOA President, Steve Salata, called the meeting to order, welcomed everyone in attendance (27), and introduced the current officers: Kimberly Keefe, Secretary; Jason Gomes, Treasurer; and Tom Balek and Jamie Toti, Vice Presidents. Steve explained that in an effort to conduct the meeting more efficiently, we would attempt to follow rules of order, stick to the agenda, vote on motions and nominations in a more formal manner, and use paper ballots to elect officers as spelled out in the By-laws, except when there is only one candidate for an office. There were four people in attendance with proxies for neighbors, and they were asked to use an additional ballot for each. Old Business
2 The first subject under the heading of old business was officers reports. Jason Gomes provided an overview of the financial statement for 2016 which was handed out to all attendees. His report included landscape expenses, website fees, utilities, postage, and block party costs. He also gave a brief report on the successful block party held in October, which was well attended and less costly than previous parties ($793 total) since we now own a large tent. The chili contest brought 8 or 9 entries, the kids had lots of fun, and 72 lbs. pounds of food were collected for the Clover Area Assistance Center. We re planning another party for the fall of next year and in the meantime, homeowners can rent the tent for events at their own homes. Next, Tom Balek gave an update on the new Coves HOA website, which has been well-received. He intended to give a demonstration using a link to the TV in the room but the connection wasn t functioning properly so he gave a verbal walk-through of the website s features. Steve then gave an update on the Pole Branch Road widening project and the County s purchase of HOA property for a right of way to accommodate it. Since the last annual meeting the Board, working with our right of way committee and York County representatives, learned the scope of the project, identified the parcels of land the HOA would lose, the impact on both Water Oak and River Oak entrances as well as the land between them, researched the value of the affected land and various legalities surrounding eminent domain, got approval at an August special meeting of the homeowners to negotiate and agree upon a fair price with the County, and completed the transaction. Steve thanked the steering committee members Rion Rivas, Nathan Lebioda and Jamie Toti for their efforts. Steve described how each parcel of land would be affected and cautioned that the precise impact on the entrances and landscape easement remains to be seen. Finally, he gave an update on the final sales prices, saying that the County s initial offer for lot #32 was $11,500 but we negotiated for $16,500. The initial offer for lot #23 was $5,500 but we negotiated for $6,500. We have received the funds and they have been deposited in our account. The Board is recommending that the funds not be spent until we can assess the final impact of the work, which probably won t start until late next fall at the earliest. The next agenda item was an update from the Architectural Review Committee. Jon Stewart and Duane Stimac, who have served on the committee for several years, were thanked their efforts. They reported on additions to a property that added a pool, deck and outdoor fireplace, and mentioned that there will be new construction planned for lot #37 on River Oaks, though not in the immediate future. Tom Balek suggested that the Board be informed when conflicts arise between the ARC and owners so that we can make a recommendation, and Duane 2
3 reported that there have been no new conflicts in the past year. Steve Salata mentioned that if anyone wants to serve on the committee, they would be welcome. New Business Steve called for the election of officers. Tom Balek questioned the timeframe of when the new officers would assume office. He suggested that the previous board needs to have time to transition. Steve stated that he, as the out-going president, would certainly assist with the transition of a new president. Dave Kohout made a motion that new officers take office at midnight, which was seconded by Tom Wolfe. Steve addressed the voting method for offices with only one candidate, suggesting we vote by show of hands. Jon Stewart made the motion to that effect, Nathan Lebioda seconded it, and the motion passed. Steve moved to begin nominations and voting for Treasurer. Linda Balek called for a motion that per Article 8, Section 9 of the Bylaws, stating that no officer should receive compensation for his/her services, those with property that is part of the HOA-maintained easement (lots #1-6) along Pole Branch, be precluded from serving as officers. Discussion ensued, with not everyone agreeing that the maintenance of easement property constitutes compensation or poses a conflict of interest. Steve pointed out that HOA members may not vote to continue that maintenance when the Pole Branch work is completed. Duane Stimac suggested the matter be tabled and discussed further at that point, and Nathan Lebioda gave his opinion that since the HOA was incorporated as a not-for-profit, the rules wouldn t preclude those homeowners serving as officers. Kema Salata made a motion to amend Sec. 9 but was told we did not have enough members in attendance to amend the Bylaws. [This was later determined to be incorrect.] Lance Beehler suggested we deal with it next year, in a mailed referendum. Steve Salata suggested that it is unlikely that officers would be personally influenced in their decision-making by the fact that the HOA is continuing to maintain a feet wide strip of the original landscape easement that falls on their property. After the above discussion, Linda Balek confirmed that she made a motion to exclude anyone from running for office who was an owner of lots 1-6. The motion was seconded and defeated by a show of hands. Steve Salata said that Jason Gomes was willing to serve again as Treasurer unless someone else was interested. Nobody stepped up. Kimberly Keefe seconded the nomination and Jason was elected by a show of hands. 3
4 Steve asked if anyone was willing to volunteer for Secretary. When nobody offered, Kimberly said she would serve again. Her nomination was seconded and she was reelected by a show of hands. When the subject of Vice President came up, Jamie Toti mentioned that she would like to run for President but still wanted the chance to serve as Vice President if she wasn t elected. Jennie Kehr suggested that we vote, first, for president, then return to the election of vicepresidents. That was seconded and agreed to by the homeowners. Tom Balek nominated Jamie. Tom Wolfe seconded the nomination. Tom Wolfe was nominated but declined to run. Duane Stimac was nominated but declined to serve because he may be moving this summer. Jamie Toti was elected president. Tom Balek indicated he would be willing to continue as Vice President; Steve Salata asked for other nominations and Tom Balek nominated Rion Rivas, who declined to run. Tom was reelected. No one else volunteered or was nominated for vice-president. The next topic for discussion was maintenance of the landscape easement and Steve Salata said again that the Board is recommending that the HOA continue to maintain it for now, and not touch the funds we received from the County for the right of way. Dave Kohout asked if the Board has plans to put the funds into a higher interest-bearing account and Steve agreed that it should be looked into by the next board. There was further discussion about landscaping and a possible monument at the River Oaks entrance, originally raised by Jeff Mason. Steve explained that we would like to wait until after the construction is finished to address it and Kimberly Keefe added that though the work is expected to start in late fall, it will run for at least two years and we don t yet know when our section along Pole Branch road will be affected. Nathan Lebioda mentioned that Tom Smith told him there would be a monument at River Oaks and there were questions raised about whether we would have recourse if he neglected to do that. Tom Balek then raised the subject of how to address the opinion of owners on the River Oak side that they get no benefit from their HOA membership. He suggested three possibilities: 1) changing the membership requirement for the River Oaks lots to voluntary instead of mandatory, 2) charging a reduced fee for River oaks owners based on comparatively less representation and services, and 3) upgrading the entrance to River Oaks with a monument sign and irrigated landscaping. There was some discussion around those ideas. Nathan Lebioda said that the covenants are based on Duke restrictions and the majority of them would stand without the presence of an HOA. Dave Kohout read a passage from preamble of the Covenants that explains the rationale behind forming an HOA, to point out that it exists for many purposes including the maintenance of common property. It was also acknowledged that any issues relating to changing HOA 4
5 membership would require a 2/3 (26) votes of the homeowners as this would constitute a change to the Covenants. Next on the agenda was an update on lighting from Jason Gomes. He has received two estimates to remove the gaslights and have LED lights installed at The Coves monument and Little Cove columns, which will cut operating costs dramatically. $1,000 has been budgeted for that project. Jason then discussed the 2017 budget, which projects a minor reduction in insurance premiums due to loss of property in the sale to the County. He will do a reconciliation at the end of the year to see if budgeted expenses match his projections and, if so, consider reducing dues for Jason also announced that there will be a community yard sale on Saturday, May 13, with Salvation Army scheduled afterward to pick up items homeowners want to donate. Everyone was asked to let him know if they re participating so he can give the Salvation Army an idea of how many households may be donating. The last item on the agenda was a motion prepared by Jason Gomes to amend Article 6C of the Covenants regarding sheds, specifically the requirement that they match the house in construction material and have a pitched roof. Jon Stewart asked if that would be fair to those homeowners who had already met criteria, including one who was asked to take his non-compliant shed down and did so. Duane Stimac added that when detached structures match the look of the house the result is a greatly enhanced property value. The motion was not voted on since it would require a 2/3 vote by the homeowners. Steve Salata thanked everyone for coming and made a motion to adjourn. This was seconded and the homeowners voted to adjourn. 5
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