SOUTH BAY COMMUNITY ASSOCIATION

2011 ANNUAL MEETING OF THE MEMBERS

Wednesday, July 20, 2011

APPROVED   8-5-11 with addition

 

Attendees:   Dave Armitage, Richard Grieves, Steve Shanklin, Howard Koester, Pat Traci, Mike Morgan and Christine Whitehurst.  Guests: 96 SBCA members. 

Meeting called to order at 3:00 p.m.

Determination of quorum.  Yes.

34% of our regular membership, 177 is required for a quorum; we had 284 including proxies and members in audience.

Introduction of 2011 Board Members by outgoing President Dave Armitage, other members with their terms expiring are Richard Grieves, Steve Shanklin, Howard Koester (vice president), Members with one more year to serve are Pat Traci, Sharon Walker and Christine Whitehurst (secretary/treasurer).

Financial report

Chris Whitehurst reported the financial highlights for 2011 fiscal year (FY) end, showing the Total Current Assets to be $289,557.15, Total Assets to be $604,486.01.  An increase of $17,696.86  over last year’s Total Assets. The Income Statement for FY 2011 showed total revenues of $399,927.77 and Total Operating Expenses of $398,544.45  and a Net Operating Surplus of $1,383.32.  Both the Revenue and the Expenses were 3% under what had been budgeted. The Maintenance reserve is $235,529.36  and the Renovation Fund is $15,000.25.

Dues have been raised by Board vote 5%, new annual total $793.80.  Two percent of the increase is dedicated to the Maintenance Reserve.  Contribiution to the Reserve has increased for FY 2012 to $75.12 (from $60) per membership per year.

Money spent from Renovation Fund this year went to Handicap Door openers, finishing the Conference Room AV package, Plate warmer and sprucing up the Great Room: for a total of $7,267.09.  Money spent from Maintenance Reserve totaled $31,224.01 and was for the Parking Lot, a new Security System, replacing failed windows, a new stair stepper and replacing the wooden fence.

Anticipated expenses for next year include, replacing the Gazebo Roof, Curb repair in the parking lot, exterior building painting and repair, and other items that may need replacement (pool equipment, exercise equipment)

More detail on all financial information is available in the attachments.

The Balance Sheet and Operation Statement for fiscal year 2011 and Budget for 2012 was distributed at the meeting.  Year end information is available on the web site and at the club.  If you have any questions please ask Bay Club Director Mike Morgan or the Treasurer Chris Whitehurst.

Membership Voting

There will be no vote to waive the Audit this year, as the Board has voted to have FY 2011 Audited.

The Board recommends a vote to ratify the 2012 FY Budget.

Election of Officers

Candidates:

Thomas T. Claudson
Richard Grieves
Sue Oemichen
Steve Shanklin
Kenneth (Ken) Thomas

Nominations from the floor:

Jerry Conover
Hanna Buresova
Howard Koester

 

Opportunity for members to exchange their proxy for a ballot.

Ballots collected and counted by team of the members, Nancy Green, Tony Durham, Pat Chase, and Betty Faulkner: and staff member Linda Colasurdo.

Reserve Study Presentation 

Bruce Schmitz explained reserves, where a portion of revenue is set aside to pay for replacement or repair of Common Property, to prevent the need for Special Assessments.  During the year the Facilities Committee has redone the SBCA Reserve Plan, including more items and using a different method to determine the future needs of the Fund.  To get to this goal dues have been raised with 2% going into reserves, money from Renovation has been returned to Maintenance, interest earned in CD’s dedicated to reserves and a discussion of charging new buyers of resale’s a $500 fee.  The goal is to get the Maintenance Reserve 70% funded in 10 years.

 

Annual Report

President, Dave Armitage thanked various committees of the SBCA and PLVC for their contributions to the community.  He also discussed Bay Club utilization, we had a total of 49,466 sign ins, 11,006 of which were for large events and he stated that guest use of the club is 30 to 40 %.  He also covered what was done by the Board this year: completion of Reserve Study, Review of Financial Processes, a meeting with LMC, the new Security System, window replacement project, and finishing the handicap door opener installation.  He showed, by use of grafts that revenue and membership growth have flattened out starting in 2005, that the revenue and expenses for the last two years have been equal and that with no new homes, and no capital contributions from new homes, and expenses rising with inflation we need to find new sources of revenue.

Member comments

The Disaster Preparedness group explained their purpose in the community and asked for new volunteers to be block captains.

Member input included discussion regarding expense control, hours of use and club usage.

PLVC President, Tom Stone, stated that there are two openings on the PLVC Board for people living in South Bay.  He would like people living in South Bay to consider running for these positions.

Election Results 

Budget Ratification: 217 yes votes and 20 no votes 

Candidates: the follow members have been elected and will serve two year terms on the Board of Directors

Tom Claudson
Richard Grieves
Sue Oemichen
Ken Thomas

Meeting Adjourned at 4:43 p.m.

Respectfully submitted:

Christine Whitehurst

Board Secretary/Treasurer

Attachments:  

Financial Reports  June 2011  Income Stmt.  Bal. Sheet
   

Next regular Board meeting:  

August 5, 2011 9:30 a.m. Bay Club pending new Boards wishes