MEETING 2 MINUTES

2001/2 Kings Grant Homeowners Association Board of Directors  

Meeting Date/Time: 7/28/2001 10:00 am

Notice of Meeting: By public notice to members and email, and telephone notification to the Directors. See Doc. KGHOABOD2001M2-0.

Presence of Quorum: Directors present were: Alan Dalton, Lisa Whitt, Marcus Thomas, Neil Darling. Also, at the invitation of the Board, Sue Rowdon, Property Manager was present. Members present were: Jeff Carpenter. A Quorum was present.

Agenda: See Referenced Document KGHOABOD2001M2-1 

10:15 7/28/2001 – The meeting was called to order, Director Neil Darling presiding.

1. With no objection of any Directors present, and no written objection from any Director, and with public notice having being given to the members at least five days in advance, the meeting was found to have been noticed properly according to the laws of Virginia and the governing documents of Kings Grant Home Owners Association. Without objection, the meeting continued.

2. Neil Darling introduced each Director present and stated the names of Directors not present.
3. Neil Darling read a Letter (Doc KGHOABOD2001M2-2) from member Larry Pence to the Board of Directors declining election as a Director.
4. Director, Marcus Thomas asked each Director present to  waive their right (for the record) to US Mail/Hand Delivery notification of future meetings. It was agreed among the Directors that, in lieu of US Mail/Hand Delivery, email (at each Director's email address of record) and, in the case of Lisa Whitt, a phone call five days in advance of each Board meeting would be acceptable as notification. Each member reserved his right to request US Mail/Hand Delivery either in writing or orally at a future BOD meeting.
5. Director, Neil Darling announced a time for membership discussion open. With no objection from any Director the discussion period was closed with no discussion.
6. Neil Darling led a discussion on the roles and responsibilities of the Board. By agreement, the organization of board was agreed to be, President - Neil Darling, Vice President - Alan Dalton, Treasurer - Lisa Whitt, Secretary - Marcus Thomas, Director - Angela Looney, Director - Donna Mullins. Neil Darling moved that this organization of the board be accepted. Alan Dalton seconded the motion and by unanimous vote, the motion was carried.
7. The Secretary read the minutes of meeting 1. The President moved that the minutes of meeting 1 be accepted. The Vice President seconded the motion and by unanimous vote, the motion carried.
8. The President read portions of a letter to the Board regarding the removal of certain commercial equipment from the ingress/egress easements. A Discussion was held regarding what rule might have been violated and how to respond properly.  The Secretary moved that a letter be written stating that the covenants and rules are not clear and therefore it is not clear that any were violated, but that the current Board is developing rules for the enforcement of covenants, and the Association reserves the right to enforce those rules with regard to the complaint if it is found to be valid, and that the Secretary will draft and the President and Secretary will approve such a letter and that copies will be sent to the lot owner, also that the Secretary will draft and the President and the Secretary will approve a letter responding to the complainant. The President seconded the motion and by unanimous vote, the motion carried.
9. Construction Plans for lot 49 were delivered to the board for Architectural Review by Sue Rowdon, SRManagement. The Secretary moved that the President act as an Architectural Committee and review the plans and that the Secretary communicate the results to the lot owner. The Vice President seconded the motion and by a unanimous vote, the motion carried.
10. At the invitation of the President, former President Jeff Carpenter and Sue Rowdon presented the status of the financial accounts. The total of liabilities and equities was reported to be $4,725,77 with an approximately $1,500 check outstanding. Sue Rowdon advised that responsibilities that need to be carried out by the new Board include: 1) filing a corporate resolution with our bank making notification of the change of officers, 2) filing signature cards with the bank. Sue Rowdon advised that she had received approximately 7 payments from lot owners to be counted against FY2001/02 dues. A discussion was held to determine the proper method of handling such checks. The Secretary moved that the Treasurer take responsibility for handing the payments as a part of her official duties as Treasurer and that the payment checks not be deposited, but be held until such time as the dues were set and bill sent out. The Vice President seconded the motion and by unanimous vote, the motion carried.
11. The President advised that Becky Darling has volunteered to continue to edit the newsletter. The Secretary made a motion that the Board allow Becky Darling to continue to edit the newsletter and that the President and Secretary have final approval of the newsletter before it is published. The Vice President seconded the motion and by unanimous vote, the motion carried.
12. The President opened the floor for new business:
13. The Secretary discussed the need for committees including standing committees to include committees for: rules, elections, roads, easements and common areas, welcome/social, architectural review, neighborhood safety.  The President moved that the Secretary prepare a proposal for committees to be chartered for future approval of the Board. The Vice President seconded the motion and by unanimous vote, the motion carried.
14. The President motioned to enter into an Executive Session to discuss contract issues associated with a proposal from SRManagement Services to continue as property manager. The motion was seconded by the Vice President and by unanimous vote, the motion carried. 
15. [Executive Session]
16. The Board reconvened in Open Session to discuss the budget. A budget proposal was presented by the President (KGHOABOD2001M2-3).  The President presented background information which compared previous years' budgets to the proposal to show that his proposal was similar, but included extra money to: 1) provide for the removal of the tenant house, 2) establish a reserve fund, and 3) provide sufficient money for road repairs, with any remainder being held in reserve. The proposal also called for the continuation of a paid property manager for six months, equivalent to the FY2000/01 expenditures. A motion was made by the Secretary to maintain the base amount, but that the proposal be modified to use FY2001/02 reserve funds to remove the tenant house instead of levying dues to do both during the same year, and to keep the property manager for six months, thus reducing the proposed budget by approximately $75.00 per lot per year. A motion was made by the President to maintain the base amount, decrease the reserve from $12,000.00 to $8,000.00 and to draw against the reserve for the tenant house demolition, to keep the property manager for six months, and to move unused money (in the event that the removal of the tenant house was less than expected) into a reserve for roads, setting the amount of dues at $550.00 per lot per year.  The President presented an email from the Association's Attorney (KGHOABODM2-4) which stated that a previous Resolution of the Board would not be binding on any future Board (including the current one) and that it would be considered valid unless it conflicted with any recorded document of "higher dignity." The President modified his motion to state that the current Board believes that the referenced Resolution contradicts the Articles of Incorporation and By-Laws of the Association by removing a Board's fiscal discretion, and that the Secretary would prepare a Resolution for the signature of the Directors to reverse the Resolution. This motion was seconded by the Vice President and by a unanimous vote of the Directors, the motion carried.
17. The President moved that the contract currently in place for the services of SRManagement be renewed for a period of six months to begin on August 1, 2001. This motion was seconded by the Vice President. By unanimous vote the motion was carried.
18. A proposed strategic statement of the board (KGHOABOD2001M2-5) was presented by the Secretary.  Without discussion. The President moved to accept the Strategic Statement as presented. The Vice President seconded the motion and by unanimous vote of the Directors, the motion was carried.
19. The President moved that the meeting adjourn. The Vice President seconded the motion and by unanimous vote of the Directors, the motion was carried. The President adjourned the meeting.

Approved: Approved by the BOD on 8/31/2001.