Board meeting ~ January 24th, 2013

The meeting dates have been changed:
2-11-13   Board Work Shop
2-14-13   Agenda meeting
2-21-13   Town meeting
2-28-13   Board meeting



Members Present:
President Suzzi Combs                      John Porter
Vice President Rick Noffsinger            Diane Jones
Treasurer Tom Moore                         Joe Claflin
Secretary Faye Taylor                         Jack Watson
                                                             Diane Porterfield
Absent:
General Manager Buddy Hudson
 
Treasurer’s Report – Tom Moore:
Treasurer Tom Moore and Director John Porter have been working diligently in the POA office to correct errors in our recent Financial Statements.  They have made great progress and gaining new insight into the management of Diamondhead. 

Up-to-date information regarding Financial Statement:

• Outside accounting firm was hired last summer for $2,500.00, with the monthly fee of $1,200 per month, starting in April, 2013.
• 6 months went by without financial statements.  June 31, 2012 was the last accurate statement.
• Financials arrived in December with notable errors.
• Tom & John are aggressively working together to correct errors and set new policy & procedures for data collection and entry.
• Outside accounting firm, ‘Dorsey’, sent an ‘exorbitant’ bill for services rendered of $22,420.00.
• Negotiations with Dorsey failed.  The firm was fired.
• Accounting is now ‘in-house’.

Comments regarding this issue:  Problems “with our books has gone back years.”  “I am encouraged that we will get this cleaned up, soon.”

Golf Carts: 

A straw vote was taken last week at the Town meeting to approve a 4 year lease with EZ Go golf carts for $1,144.00 / 8 monthly payments.  Motion was amended to: reduce the speed of the carts, contract is subject to ‘next day service’, & replacement cart be made available if cart must be hauled away – Maintain 30 carts.  Motion passed.
 
Approved line of credit:
A $100,000.00 line of credit has been established with Bank of Ozarks @ 6% interest.  It was noted in the motion to “accept line of credit for operating expenses, only”.  Currently we have $29,000.00 in cash.  Straw vote was taken during last week’s Town meeting and confirmed unanimously at the Board meeting.

Signs from the Lion’s Club – Faye Taylor:

Faye displayed pictures of two signs for the Board’s approval.  One sign will appear above the Police Department door – “Diamondhead Police Department”.  Another sign will be located in front of the Club House directing the visitors to the various facilities, including the POA office and 19^th Hole.

GIF Funded Community Enhancement Grant – Faye Taylor:

The swimming pool must meet new imposed standards by providing a “Lift” for handicapped persons before the pool opens next summer.  This Lift will cost $6,500.00.  Faye presented the Board with the possibility of a grant that will pay for this project.  Click on the pictures below to view.

Another option that is being reviewed by the Board involves the changing of the status from ‘Public Pool’ to ‘Private Pool’.  It is believed that a ‘private pool’ status will take away the need for the extra expense.  A motion was made by Diane Jones & seconded by John Porter to submit the paper work for the GIF Community Enhancement Act for $6,500.00.  "We will see what happens."  Motion passed unanimously.

Open Forum:

The meeting was opened to discussion among the members of the Board.  Topics included:

• Raising the Golf Membership Dues
• Raising POA Dues
• Special Assessment

Vice President Rick Noffsinger:  (paraphrased) We have neglected as a board in giving accurate financial statements.  How can we justify raising dues with our inaccurate financials.  Raising dues will negatively effect growth in Diamondhead.  Homes of less than $150,000.00 will not sell with dues upwards of $900.00.  Some have said they can not give their lots away.

     I suggest we listen to members of the Finance Committee.  Jim McWilliams recommends reducing all departments by 10% from last year's budget.  The pool agreement we have with DRC should be considered void because of their lack of payment on the lots that have been given back to them.  We should go back to being a private pool and add a nominal fee to members who use this amenity.  Currently the pool has a $33,000.00 loss.  The Pool needs to be rented properly – not the way it was run last year.
     Manage the 19^th Hole like a business.  The 19^th Hole has a $60,000.00 loss to Diamondhead.  
Security gate hours must change.  We all have gate cards for the electronic gate – Use them.
     Follow Arkansas State Law – Do not allow alcohol to be brought onto the golf course.  All alcohol beverages must be purchased at the 19^th Hole.  Operate the 19^th Hole like a business by closing the doors during poor attendance.  Sometimes we have one customer with 3 employees working.
 
President Suzzi Combs:

• 55 homes owe $93,000.00 in non paid dues.  It was suggested that these home owners no longer be given a sticker for their car.  They must check in with the Police Department every time they enter our gates.

Focus:  After discussion, a motion was made to cancel the Focus replacing it with an Internet news letter.  This news letter can be printed out for any member who asks for a copy.  The motion was passed with Jack Watson & Faye Taylor voting No.  Diane Porterfield abstained.

Lake Hamilton Fire Dues:  A motion was made to allow individual property owners to pay their own dues to the fire department.  This will give each individual a vote with LHFD.  It will also be a savings to the POA who pay fire dues on all delinquent homes as is stated in the current contract.  This motion was passed unanimously. See Town meeting notes: http://diamondheadcommitteereport.blogspot.com/2013/01/town-meeting-11713.html

Raise in POA Dues? ~

Options discussed:

• Leave POA dues at $900.00 / without fire dues / resulting in a $55.00 increase.
• Assess each POA member $100.00 to be applied to the Long Term Planning Fund.  This will be presented by Tom Moore at the Special meeting called for Feb. 11^th.
• Wait for the accurate financial numbers before making any decision.
• Give the Finance Committee an opportunity to review the accurate numbers and state their recommendations.
• Implement an automatic cost of living dues increase every year.

Diane Porterfield stated her recommendation for the Board to implement and enforce good management in all Diamondhead departments, before any additional burden is placed on the property owners.  Click on picture to view:

All Board members & Property Owners are encouraged to let their voices be heard.  Please contact any member of the Board with your thoughts. Meeting adjourned – 2.3 hours.

Notes submitted by,
Diane Porterfield

adianerdh@att.net