Minutes

Avocet HOA

Town Hall Meeting

November 1, 1999

A Town Hall meeting of the Avocet community and the Avocet Board of Directors was called to order at 7:05PM on Monday, November 1, 1999, at the Avocet Clubhouse, President Andrew Goodspeed presiding.  Also in attendance were Lara Foreman, Vice President, and Frank Boduch, Secretary/Treasurer

Also in attendance were Jay Taylor, Attorney with Weissman, Nowack, Curry & Wilco, PC, and Sue Juliano Property Manager with Today American Management.

Twenty-Eight (28) members of the Avocet community were present as well.

• Andrew explained the purpose of the meeting as being to review the draft documents of the newly formulated Articles of Incorporation, By-laws and Covenants, as prepared by Jay Taylor, and to address any questions, concerns, or recommendations made by members of the community.

• Jay Taylor was introduced and explained the primary purpose for updating the documents.  He also explained that  2/3rds majority of the community was required to approve the new covenants.  10% approval of the community is required to approve new By-laws.  It was further explained that no votes would be taken during this meeting, but rather to move forward in preparing final documents that could be explained to the community and voted on at a later date.

Jay Taylor then opened the floor for questions

Q:  How do the new documents minimize the need for litigation?  

A:  The Georgia POA Act guides the process and the rights of the community and it's leaders.  Due process must be followed according to the law.

Q:  Can the Board of Directors set standards for the number of pets that a homeowner may have, the number of cars in a driveway, etc.?

A:  Such matters are considered by the board on a case-by-case basis.  The board makes decisions following the covenants of the community.  The covenants must be written to minimize complications of these matters and serve as a guide to the board.

Q:  What spending limits do the new Covenants and By-laws impose on the Board of Directors?

A:  Board of Director discretionary approval cannot exceed $15,000 on any give item or project without prior approval of a majority of the community.

Q:  Can the Board of Directors exceed spending limits cumulatively? 

A:  No.  Expense approval limits take into account expenses coming from more than one source or at different times.  If the total project exceeds the prescribed limit, the board must seek approval of a majority of the community in advance of committing to the expense.

Q:  How much money can the Board of Directors borrow?

A:  A limit of $10,000 is required.  Above this amount, approval of a majority of the community is required.

Q:  What is the effect of the new documents on the community's insurance requirements?

A:  The new documents serve the purpose of strengthening the community's ability to be well-protected even under minimum requirements.  The Board of Directors is currently soliciting bids for new coverage and is seeking to reduce the cost of insurance coverage, if possible.

Q:  What is the benefit of having a Board of Directors in a community such as Avocet?

A:  The Board of Directors is responsible for the day-to-day management of the community, to enforce its covenants, which are prescribed to protect the value of property within the community.  The board is also charged with a fiduciary responsibility to collect association fees and manage expenses for maintenance, repair, capital improvements, and the like.

Q:  Some of the new covenants do not appear to assure "reasonable" controls and discretion on the part of the Board of Directors.  What can be done to safeguard the community from indiscriminate actions by the board?

A:  The documents should say "reasonable" and can be made more clear by providing objective restrictions if so desired and approved by a majority of the community.  It is somewhat difficult to anticipate what future issues might come before the board.  The covenants need to allow the board to take appropriate action that serves the best interest of the community.

Q:  How can a member of the community petition the entire community on matters deemed to be important?

A:  All members of the community have the ability to call a special meeting on topics that affect the community as a whole and to measure the concern of the community as well.  Due process must be utilized to assure appropriate input, responses and actions.  In the absence of any other recourse, injunctive relief by means of a court order could be requested.  Mediation is always recommended before proceeding to litigation.  

Q:  How can recommendations or concerns pertaining to the new documents be addressed?

A:  Form a covenant committee to make recommendation to the board.

Q:  Can a comparison of the old and new documents be made in order to highlight the changes being requested?

A:  It can be done by Jay Taylor, but at considerable expense.  It could possibly be done using the new Avocet Internet website.

All questions having been asked and answered, Andrew moved to identify volunteers for the Covenants Committee.

The following volunteers surfaced:

The newly formed committee immediately began to organize.  Andrew Goodspeed will serve as their liaison to the Board of Directors.

The Town Hall meeting adjourned at 8:27 PM by unanimous consent.

Frank C. Boduch
Secretary/Treasurer
Avocet Homeowners Association