Board Meeting 3-28-13

Board Members Present:
President Suzzi Combs                         Diane Jones
Vice President Rick Noffsinger            Jack Watson
Secretary Faye Taylor                           Joe Claflin
Treasurer Tom Moore                           Diane Porterfield
John Porter

General Manager Buddy Hudson

President Suzzi Combs called the meeting to order.  The minutes were approved as published.

Treasurer Report ~ Tom Moore:  As of today we have $250.000.00 in the bank.   Next we will be preparing for the annual audit.

1^st Motion:  Finance Committee recommended to 2013-2014 budget. 

See consolidated budget on the Members Only Page.

Discussion:

Diane Porterfield asked how we could have a projected profit of $65,000 if we are expecting a loss at the end of the year.

• 2011-2012 borrowed from the next year’s income $70,000.
• 2012-2013 Budget of $68,683.00 net profit – Borrowed from next year’s income $40,000.
• 2013-2014 Budget of $65,558 net profit – Will we be borrowing from '14-'15 at the end of this fiscal year?

John Porter:  In the past years the GM has prepared the budget with a little bit of guidance from the Finance Committee.  This year all the department heads got involved in the budgeting process.  A Budget is ‘nothing more than a working tool’.

Diane Porterfield:  But you want that tool to fit.

John Porter:  This is only as good as the revenue that we collect.

Diane Porterfield:  ...Or the people who are running the operation.  Who is going to be signing off on this budget?  Who will be responsible for the follow-through / managing this budget?

GM Buddy Hudson:  You don’t need me to write the budget.  This year every department manager was involved.  Every month the departments will be evaluating their budget. 

Diane Porterfield:  So, will the department Heads be signing this budget?  Who will be responsible for it?

John Porter:  (Answer:) The Board. 

Tom Moore:  We must use historical data to figure how much will be collected.

Rick Noffsinger:  It looks like the departments have come in less than last year.  In the past the budget was used from the year before without consulting the departments.

John Porter:  The Finance Committee plans to revisit this budget in 3-6 months.

Suzzi Combs:  Right now, it is a working blue print for us to use.

Rick Noffsinger:  Suggested showing this budget to the community before approval.

Diane Jones:  That is what we were elected to do for this community.

Suzzi Combs: Asked for the vote.  The Budget was approved 6-2 with Diane Porterfield & Rick Noffsinger voting NO.

2nd Motion:  Recommendation from the Finance Committee of $150,000 for Capital Expense Fund to be used at the discretion of the Board.  Discussion~

Diane Porterfield:  Our depreciation expense is listed on this budget as $132,000.  I suggest we cap the Capital Expenses at this level so that we do not over spend like we have done for the past few years.

Diane Jones:  $100,000 of that is scheduled to be used on the Roads.

Diane Porterfield:  Yes, and that is where it is needed.  I would like for this Board to be in a position to justify an assessment to be spent on the Roads and the Long Range Planning Fund.

Jack Watson:  I am for the $150,000 cap for Capital Expense….setting the priorities.

Rick Noffsinger:  I have to trust the Finance Committee’s recommendations

Frank Pohlkamp:  [Finance Committee Chairman] listed the top priorities;

• Computer: $12,000
• 19^th Hole air conditioner: $18,000
• Security radios (2) $3,000
• Roads & Culverts $100,000.
• Back Hoe Repairs $4,500
• Bucket for Front Loader $1,450
• Tennis Courts $5,000
• Pool Vacuum $1,700
• Additional $9,000 unallocated

Tom Moore:  These numbers are approximate.

Suzzi Combs:  Past financial mistakes will not happen with this Board.  This Board is determined to keep a watchful eye on the spending habits.  Each department head will be responsible for his/her department.  The Board will be responsible for the Whole community on a monthly basis. [paraphrased].

Joe Claflin:  We have enough oversight from the Board, GM, Finance Committee, Departments.

Suzzi Combs asked for the vote ~ Motion was approved with Diane Porterfield voting NO.

3rd Motion:  Finance Committee recommends $25,000.00 be set in a separate account for a Contingency Fund.  Suggestion of an interest bearing account ~ motion passed unanimously.

4^th Motion:  To purchase a new Computer System for the POA office ~ motion passed unanimously.

Discussion: the various aspects of computer needs and consulting firm bids lasted about 30 minutes.

GM Buddy Hudson:  Recommended Jim Dalton – Certified Intuit Engineer

• $10,500.00 including Quick Books & labor – 3 stations with a lap top as 4^th station

Decision was made to accept Jim Dalton for the computer system installation.

Fees & Collections ~ Jack Watson:  This has been posted: http://diamondheadcommitteereport.blogspot.com/p/dpoa-fees-payment-options-policy.html

Contractors stickers are $25.00

5^th Motion:  To postpone the application of new stickers to May 1^st with May 31^st as the deadline.  Motion approved.

Community Standards Committee ~ Diane Porterfield:  The Committee has come back since the GM and the POA office have agreed to follow through with required letters to DPOA members that are in non-compliance.

Legal issues ~ Joe Claflin:  Will be setting up a note book / reporting system for future boards to keep abreast of the status of various legal issues.

Diane Porterfield: The Board was updated regarding the Jerry Chambliss vs. Fred Ensminger vs. Diamondhead legal issue.  The Summary Judgment regarding the latest events has been sent to the Board members & GM in the form of a PDF file.  Update can be viewed on the Members Only Page under 'Law suit Information'.

Insurance Needs ~ Suzzi Combs:  Mary Gage has been asked to review our future insurance needs and evaluation.

6^th Motion:  To send ballots to Auditors Crass & Smith to safe guard ballots.  No ballot box will be in the POA office this year.  All ballots are to be sent to a ‘third party’.

This motion was passed with John Porter abstaining.  More discussion regarding the particulars will be forthcoming.

7^th Motion:  Tom Moore asked for a commitment from the Board for an additional 2 years with the Auditors Crass & Smith.  Motion approved unanimously.

John Porter:  Expressed his concern for the library disturbance.  It was suggested that Youth be allowed to use the Youth Room instead of the library.  Youth Committee liaison stated that the Youth committee is finished with their project of setting up the Youth room.  Diane Jones suggested we ask the Youth Committee to address this issue at the next Town Meeting.  Should we have ‘sitters’ for Youth?  Cameras are to be installed in the Library to monitor behavior.

Code of Ethics ~ Diane Porterfield:  Stated her reason for not signing the Ethics Code / noting page 2, statement #11:  I will maintain and protect the confidentiality of the Association’s information and will not release nor share confidential information, from any source, without the permission, preferably in writing, of the person from whom it was provided.  (#12 deals specifically with closed executive sessions.)

http://diamondheadcommitteereport.blogspot.com/p/ethics-code-for-board-members.html

"This section of the Code of Ethics should not be included in this document." Diane Porterfield made this statement for the following reasons:

• Example:  The Blog posted the Computer Consultant information as stated during an open meeting where 7 additional members of the community were in attendance.  This meeting was posted as open to the public.  Suzzi Combs stated, at the last Town meeting, that confidentiality was breached when this information was released through the DH Community News.
• Example:  An email that contained specified recipients with notation made in the message that this was to remain ‘confidential’ to those intended recipients only, was passed to other Board members without the permission of the original author.
• What is the definition of ‘Confidentiality’?  This is a subjective term.  #12 of the Code of Ethics is defined as being obtained during a ‘closed Executive Session’.  Only personnel & legal issues may be discussed in Executive Session, which I support and will abide.
• “I will be sharing information through the DH Community News [The Blog].  I do not want to be accused of sharing ‘confidential’ information.  I will not sign the Code of Ethics document with #11 attached.”

Craft Show ~ Faye Taylor:  Wishes to send out a post card to all the homes in Diamondhead regarding a Craft Show that will be held in November.  No action taken.

Meeting adjourned.

Notes provided by Diane Porterfield

Please submit any corrections to adianerdh@att.net