Board Meeting 2-23-12

Some Board members want private meetings

Board Members Present:
President Rick Noffsinger                    Director Faye Taylor
Vice President Dan Munroe                 Director Joe Claflin
Treasurer John Porter                         Director Doc Norwood
Secretary Jack Watson                       Director Keith Harrison

Board Member Absent:

Director Ray Massey

President Rick Noffsinger called the meeting to order and asked Faye Taylor to say a prayer.
Treasurer’s Report ~ John Porter:
Cash shortfall of $91,200 for the year.
I want to note that the operating cash balance has dropped to the tune of $162,000 over the past 13 months, even though the Financial Highlights shows cash balance of $23,888.  That balance is made up of 40,700 of Reserves.  (The cash balance of $23,888 also includes the moneys ear-marked as belonging to the Beautification Committee, $3,464.69.)  This is a negative 16,800 in the operating fund.  Essentially, the operating cash is in the hole to the tune of $16,800.  The profit margins at the 19^th Hole continue to remain lower than desired.  We would like the overall profit margin to be around 60%.  It is currently around 41%.  We are working with the general manager and the management in the 19^th Hole.  We expect to see some improvements next month.


1618 homes are billed for annual dues                        1170 lots
    34 are delinquent                                                     528 are delinquent
1584                                                                           642

If we had collected all the dues that are billed, we would have an additional 293,000 in our cash account.  It is my opinion that next year will be similar to this year as far as delinquent accounts.   The Finance Committee is currently working on next year’s budget and has been meeting weekly to finalize the 2012-2013 operating capital budget.  I have presented the Board with a summary of work to date.  We expect to have the work finalized within the next couple of weeks.  In an effort to strengthen our internal accounting controls motions were made & passed in our last Finance Committee meeting.  One is to examine the physical inventory in the 19^th Hole [food & beverage].  And compare that to menu items that may need to be dropped.  Another motion was made to perform a daily reconciliation of the cash register tapes and cash & credit card receipts in the drawer.  A camera has been placed in the 19^th Hole for security measurers.

Rick Noffsinger:  The month of January showed some signs of improvement.  Our employee insurance costs are a little less; we are closed on Mondays, and are working shorter days.  The Finance Committee has recommended that two members of their committee audit what is being done in the 19^th Hole.  We have been examining our shortfalls.  Our liquor has almost tripled in percentages (profitability) in the last 4 months. 

Finance Report was accepted.

New Business:

• ACC Committee – Permit Boxes, $25 charge to contractors.  The Fee schedule that was adopted at the last Board meeting has saved the contractors $300.  This permit box will be required for any building project that requires a permit be on sight.    John Porter opposed, motion passed.
• Golf Committee – Golf cart registration:  each member of the Board gave their opinions regarding this issue. 

1. Faye Taylor:  ATVs need to pay this fee, as well, since they use the roads & cart paths.  The golf cart paths and the roads should be considered – “the total package”. See post entitled Regulations for ATVs
2. Joe Claflin:  The golfers know that the golf cart paths need repair, “if (the money) goes toward golf cart fund”.  The tree roots need to be taken care of.  I am in favor of this.
3. John Porter:  I really do not have an opinion either way.
4. Jack Watson:  Two resolutions already deal with this issue.  June 1^st, 2000 & Dec 5^th 2002   a $40 fee is already included in golf membership.  How would the $25 annual fees be enforced?  I am opposed.
5. Dan Munroe:  Who will enforce this ruling?  I will support the Golf Committee.
6. Doc Norwood:  Golf Cart Tournaments will make more money and be more fun.
7. Keith Harrison:  Approve this motion for the $25 cart path fee as long as it is set aside for this purpose.

GM Sarah Dawson:  There is currently $6,000 ear-marked for the cart paths.  We are collecting the $40 and the $2.00 (from each POA member who plays golf) trail fee.  Visitors do not pay the $2.00.  There is a separate line item for that.  However, as John said, essentially, we are into our reserve fund.  Just because we have it ear-marked for cart path fund does not mean we have the cash to spend it. 

• Non Golf member / POA member pays $2.00 trail fee
• Friend playing with POA member pays $2.00 trail fee
• Outside play does not pay a trail fee
• Golf members do not pay the $2.00 trail fee

8. Rick Noffsinger:  The golf cart paths need to be repaired.  My recommendation is that we collect $1.00 from every open golf player.  Another idea is to take $5.00 per year out of home & lot POA dues collected each year and designate that money for the golf cart paths.  This would be reviewed every year.  The trees beside the golf cart paths need to be cut down.

·         John Porter:  If you take $5.00 from POA funds -> you are ‘Robbing Peter to pay Paul’.  The golf course proper is set to go into the hole about $200,000.00.  As of the end of January it is at $170,000.00 in the hole. 

Dan Munroe:  Made a motion that $1.00 be added to all outside play and be set aside, specially designated for the golf cart paths.  Keith Harrison seconded the motion.  Previous resolutions will stay in effect.  Motion passed unanimously.

Rick Noffsinger:  All golf carts and ATVs should be registered with the POA office.  Please see post regarding Regulations for ATVs in Diamondhead.  It is illegal for ATVs to be on the roads or golf paths.

Fire Lane Update:  Joe Claflin ~ Asked for update on Fire Lane issue.  Rick explained the need for delivery trucks to use this same lane.  "It will be, possibly, another week before we can get this all worked out."

The month of March will be spent working out the Budget for next year.

• One meeting with the Finance Committee to hear their recommendations. Some of the meetings is March “will be behind closed doors”.  This was the wish of some of the Board members.

Private Meetings?
Jack Watson suggested that the Agenda meeting be private.  This will allow the Board members to express ideas “freely”.  The members have an opportunity to ask questions of the Board candidates at Candidate’s Night.  When we come out of meeting we will have a consensus of what we want to present to the town.

Rick Noffsinger:  We feel that we need to discuss more as a group, and fight it out amongst ourselves, rather than fight it out in front of the members.

Diane Porterfield:  That is not legal.  That is not according to the by-laws.

Jack Watson:  An Agenda meeting is not required by the by-laws.

John Cummings:  The Agenda meeting is for people in the community to bring items for the Town meeting.  If you make it a closed meeting just for the Board members, it is defeating the purpose.  It also conflicts with the Bill of Assurance.  Closed meetings would also stop transparency.  It is not the way to do business.  You should not feel guilty about expressing your opinions in front of the membership.  You are serving on the Board to represent the membership.  We should be allowed to know where your brains are going on the issues. 

Diane Porterfield:  They used to have Work Shops that allowed Board members to work out their differences.  But, it was still open to whoever wanted to sit in to listen.   Maybe some of you are afraid that I am going to post something that you do not want to see posted (in the Blog); you can certainly talk to me about that.  But, it was at an Agenda meeting, June 9^th, 2011, that the first report came out about the Sprinkler system needed in here (Banquet room).   I was asked not to tape record the Agenda meetings, so I was not able to prove it when this fact was denied the next day by than President Ray Massey and GM Eric Markle.  It was Eric who brought this information to light during that Agenda meeting.  I later spoke with Matt Simpson verifying the facts that are now evident.  What I am saying is that transparency is what we are finally getting into. Please don’t take us back to the stone ages!

Rick Noffsinger:  We will take that under advisement.

Meeting adjourned  (1 hour in length)

Notes submitted by,
Diane Porterfield
Please let me know if any corrections are needed.