Site hosted by Build your free website today!

Spaces Spaces Spaces
Special Meeting June 24, 1999


Special Meeting June 24, 1999
Last Updated 17 Jul 1999

This Special Meeting of the Members of the Stonebrook Estates Homeowner's Association was called to discuss the problems with the current management company and to decide whether or not to terminate the business relationship with that company.

  • Jesse Green (President) called the meeting to order.

  • The first item to be discussed was the issue of problems with Principal's current management of our property.

    Current problems with Principal Management Group:

    • Incorrect Billing of Dues
    • Lack of follow-up-inspections not done in the beginning.
    • Enforcement of covenants - responsibility to enforce them. All problems were supposed to be run by the Board of Directors before any notifications are sent out.
    • Common areas sprinkler system - weekly inspection would have seen common areas in disaray.
    • Neglected to get Landscaping bid - bids on tree and maintenance. Beverly and Paul Baker have been mowing since March.
    • Audit - Beverly Baker reviewed the budget. Audit was started. Audit to be complete in a week and a half. Audits are not done internally.
    • No record of correspondence. No record of correspondence related to the association. This came to a head a couple of weeks ago. John's supervisor said he wanted to see evidence that we were having problems. Logs from visits, phone records. We were told that records weren't kept including record of their visits.
    • Lack of communication - They don't return phone calls.
    • Mis-management of funds - landscaping, months of Oct., Nov., Dec., and January we had very little service. They paid the landscaping company. We as homeowners should expect a rebate for service. They haven't been paid since January.
    • Lights - Last meeting we elected that Steve Marley got a copy of financials. Concerned that money wasn't being spent wisely. He noticed a light bill for $953.29. He thought that was excessive. Beverly's husband went to the electric company to get a bid. Paul Baker presented invoice to Kinney Electric. Mercury Vapor Bulbs - overcharge of $380.00. Paul got another bid from Ponton Electric for $275.03. Jesse-spoke to Principal about the light situation when they first started. Date on invoice is 2/25/99. Per Jesse Principal isn't entitled to any mark-up.
    • Miscellaneous - Beverly reviewed the books. We pay them $5,000.00 per year to manage the association. We are charged for everything…letter, fax, cell phone charges. What is the management fee for…purely management fee. Take issue with the extent of the miscellaneous charges.
    • Biggest issues whether we self-manage or engage a management company we need to have control of our money. We want our funds to be safe, to know how money is being spent.

  • Do we terminate Principal - Motion (Paul Vidinda) , Second received , Ed Gilleck. Motion carries.

  • Do we terminate effective immediately (end of June) or end of contract which is November 1? If we terminate now there is a liquidated damages clause in the contract that equates to approximately $1,300.00. We have four months left in the contract. The fee is $400.00 per month or $1,600.00. What control is Principal willing to give us on expenditures?. Principal should agree not to write anymore checks without the approval of two directors. Principal said no. Should we vote to terminate now, Principal should turn money over in reasonable amount of time.

  • Vote to Determine when to Terminate Principal:
    57 in favor of Immediate Termination
    23 in favor of Terminating at end of contract

  • Board will be responsible for notifying Principal that they are being terminated as of June 30, 1999.

  • Discussion arose about whether or not our HOA should sue Principal for damages. Jesse's opinion is that not enough money is involved to sue. No one will take on continegency fee of $150.00/hour. May spend a year and half to go through the process. Principal is well financed. We are not. Beverly Baker made a contact with insurance agent. They are very familiar with self management and management companies. If we pursue, Principal will carry all the way. It is Principal's position that they didn't breach the agreement. Karen Visinda called BBB there have been nine violations in last three years on Principal. It was decided that the HOA would not pursue a suit againt Principal.

  • The next issue discussed was whether or not we should engage a new management company or take on the task of self-management. Brad DeYaoung spoke on the benefits of self-management. We need to amend the CCRs. We bought into the neighborhood with the rules and they should stand as is. The attorney will determine if rules are broken. Things need to be defined. What constitues a major violation vs. minor? There are independent agents who will come out and enforce the covenants. Can we make ammendments to self- management plan? The Board of Directors will have authority to change the proposed plan. Are their people willing to self management? There are people who have committed to doing that. Beverly Baker has a source.

  • Vote to Self Manage:
    64 in favor of Self Management
    15 in favor of acquiring a new management company

  • Jesse Green announced that effective immediately he would be resigning as President of our Homeowner's Assocaition. Why is Jesse resigning from the board? He volunteered about three years ago. Nobody else was willing to do it. His workload has become such that he's not interested in staying on the board. If we self manage, we all need to be adults. I think there are a lot of people in room that aren't comfortable in dealing directly with neighbors. Right now there is a lot of good intention and pride in neighborhood. However, in 10 years 70% will be out of here. We could post a lot of things that we're doing on the Internet. Then everybody has access to everything. We don't have to sign a contract to self-management. We can try it and then stop. We need to look at short and long term responsibilities.

  • A reminder about Architectural Review was made: If you are going to have improvements constructed at your home, you need to talk to one of the Board members and have Board approve the changes i.e.,. fences, pools, satellite dishes. Need to put covenants and bylaws on the website.

  • Reminder about Dues:
    Dues for this year are $15.00/month. Payment due on 7/1/99. Need to mail to P.O. Box.

  • Reducing the Quorum:
    Tonight a quorum is present. Suggestion to reduce the quorum from 66% to 20%. Motion Tom Finney to reduce quorum to 20%. Mayling Wysong seconded it. Whenever there's a homeowners meeting, there needs to be an agenda.

  • Vote to Reduce Quorum to 20%:
    67 in favor of reduction 8 in favor of leaving the quorum at 66%

  • Election of new board members:
    Two spots are open on the board. Jesse Green and Julia Thuman are resigning from the Board. Is Brad DeYoung willing to stay on the board? Brad is willing to fulfill the responsibilities.
    • Karen Visinda nominates Beverly Baker for President. Mayling Wysong seconds.
    • Kirk W. nominates Drey Roberts for President. Dana Bark seconds.
    • James Williams nominated by Kari Hardwick. Drey Roberts seconds.
    • Bylaws waived - Positions will be elected by Members rather than Board.

  • Vote for President:
    Bevery Baker - All but 2 votes David Bark - 2 votes

  • Vote for Secretary: James Williams - 23 votes Mayling Wysong - 51 votes David Bark - 1 vote

  • Brad DeYoung radified by Members to remain as V President.

  • It was discussed that Board of Director meetings be posted.

  • It was discussed that two other directors should be elected or that there should be Street Representatives elected to represent each street. This item should be on the agenda for the July 8 meeting.

  • Thank yous to:
    Billy Holden - picnic
    Mayling Wysong - newsletter

  • Meeting adjourned.