Board Meeting - February 25, 2011

Members Present:

President Ray Massey                 Terry Shipp
Vice President Jim Hannon          Mary Pracht
Treasurer Tom Lockette               Betts Winsor
Secretary Jack Watson                Charles Wood
                                                      Doc Norwood
Meeting was opened in prayer.

January Board Minutes were approved unanimously.

Treasurer’s Report – Tom Lockette: Please see Financial HighLights posted on Feb.18th.
“We are having a pretty decent year, break even year cash wise. ….total almost 24 thousand dollar loss for the year. A bit lower than last year due to lower collection on lots.”

Old Business:

1. Culvert on Pebble Beach
Terry Shipp said “it is a mistake for the board to get into a situation where members start paying for things and than not require that person pay POA dues”. It was agreed by the Board members not to start this kind of procedure.

GM Erick Markle made suggestions as to how this culvert can be moved up on the list of repairs to aid in protecting the home of resident Jon Hudon from flooding waters. “We are over this year’s budget for culvert repair. ….as it is right now, waiting ‘til April (when the fiscal year begins, again) may not be a good suggestion, just because of the damage that could be done to the property of the owner. Of ‘course we would like to stay away from that as much as possible.” Discussion followed. “It is in pretty bad shape”, Tom Lockette. Several members have gone to said property to review the immediate conditions. The question was how to pay for it. This new culvert will be 60 feet long and 42 inches wide. Bill Milligan’s bid is $8,700.00. Betts Winsor asked if this culvert would “fix” the problem. Tom Lockette and GM Markle explained that the road itself is eroding away and may be a safety hazard. Motion was made and approved unanimously to use the ‘contingency’ fund to start the repair of the Pebble Beach culvert.

2. Sales Tax
President Massey reviewed the accusation of back sales taxes due by the state of Arkansas. It was explained by Jim Hannon & GM Markle that past audits had suggested this same situation and found that DH POA did not owe Property Dues tax. The reason for this is the fact that our liquor license is not connected to a private club. The 19th Hole is open to the public.

However, this year the revenue office is pressing this issue. The first indication of this accusation came soon after the annual audit, last September. President Massey felt the situation would resolve itself, as it had the previous year, neglecting to inform the rest of the Board of this matter. It was agreed that “in the future when we have situations like this, in the magnitude in the dollars that we’re looking at, that each member of the Board get a copy of the letter. And I would ask Eric to give me a copy of the letter (2 letters) from the state.” Terry Shipp

DH attorney, Jonathon Jones, has been consulted. It was his suggestion to hire a Tax attorney who specializes in this area;  Chris Brockett with the law firm of Jack Nelson Jones & Gregory, in Little Rock.

“It is unfortunate that it will cost us any money”, Terry Shipp. “I strongly suggest that we have an experienced Tax attorney.”

Betts Winsor stated that it is awful that “we have to pay $5,000 dollars to tell them (revenue office) that we let anyone in here to play golf”.

Jim Hannon, “…we are caught in the Bureaucratic Box”.

Ray Massey,” …I have done everything I can to expedite the hearing”.

Charles Wood, “I make a motion to approve the lawyer and the $5,000 retainer, and the retainer to come out of Jonathon’s retainer for the next 5 months”. There was no second. Mr. Wood revised his motion to say, “I make that motion that we accept this other attorney based on terminating Jonathon”. There was no second.

Terry Shipp, “I make a motion that we hire the (tax) lawyer, and pay the $5,000.00 retainer”. Motion was seconded and approved with Mr. Wood casting the only dissenting vote. Mr. Wood asked where the money was coming from. It was agreed that the $5,000.00 would come from the ‘contingency fund’.

Terry Shipp, “My next motion is for the Board to consider the effectiveness of our current lawyer, Jonathon Jones. Is he doing what we ask him to do?” Seconded by Charles Wood.

“I don’t think we need to pay $1,000.00 a month to tell us we need a lawyer”, Mr. Wood. Mary Pracht agreed, “…Are we getting our money’s worth?” This motion was passed with Tom Lockette and Jim Hannon opposed.

3. Community Standards meets Friday @ 6:30pm
There are currently 8 members on this committee. Rick Noffsinger has been asked to serve as Chairman. The committee members are: Diane Porterfield, Faye Taylor, Teresa Davis, Debbie Clement, Barbara Sloan, Diane Jones, Charles Smith, Jennifer Lefevre, & Rene Sparrow.

4. Budget for 2011-2012, answer questions at next months agenda meeting
Next month’s agenda meeting will be held on Thursday, March 10th at 10:am.

5. Donation of TV from Neil Peterson
Motion was made and unanimously approved.

6. How do we get money approved for Eddie’s chemicals?
The fertilizer chemicals are purchased several months in advance. It was agreed that our Maintenance Superintendant, Eddie Gilbert, will seek approval for any expense over $1,500.00 before purchase is made. A motion was made and seconded to approve this expenditure of $5,000.00. Motion approved unanimously.

Mr. Massey described the snow & ice road conditions that led to the damage of the road grader and impending repair costs of “in excess of $5,000.00". This was approved by the executive board prior to this meeting. There was discussion regarding the notification of such decisions to all Board members.

New Business

1. President Massey announced the resignation of Pat Mahoney as Chief of Police. It was agreed upon to discuss further action regarding the replacement for this position at the March 10th Agenda meeting. Jack Watson suggested the Public Safety Committee be allowed to function in this matter.

2. St. Patrick’s Day – March 17th, we will combine town meeting and board meeting on March 24th due to various activities to celebrate St. Patrick’s Day. Town Meeting will begin at 6:pm, followed by the Board meeting at 7:pm.

3. ACC Liaison – Jack Watson explained that new information regarding the H2 request, on Makaha Drive, necessitates a postponement for approval by the Board. Mr. Watson asked for approval of a temporary fence permit until the total permit package be reviewed. Approved.

Meeting was adjourned to Executive Session by request of Betts Winsor.
Meeting adjourned.

Notes submitted by Diane Porterfield
Please let me know if any corrections are needed.
Editor's note:  It was great to hear discussion by the Board.  It allows members of DH to 'hear' the views of each Board member.