SUMMERPLACE IMPROVEMENT ASSOCIATION, INC
Minutes of Annual Meeting
November 16, 2019
The annual meeting of the Summerplace Improvement Association, Inc. took place at 10:00 a.m. on Saturday, November 16, 2019 at the home of Steve and Holly Melchiori.
1. Call to Order: The 2019 annual meeting was called to order at 10:15 a.m. by SIA Inc. President John Lehnhardt who welcomed those SIA members present. John thanked Steve and Holly Melchiori for hosting this year’s annual meeting of their home.
John noted new SIA members who purchased properties in SIA during 2019:
Carol Jaskula: 1930 W. Shell Lane
Alan and Wendy Kelley: 1951 W. Barefoot Place
Victor and Dhana Abbey: 1841 E. Shell Lane (closing November 22, 2019)
2. Calling of the Roll
Secretary Mary Beasman called the roll and announced a quorum to be present either in person or by proxy and certified all proxies for voting.
3. Proof of notice of meeting
Proof of Notice of the Meeting was presented to President John Lehnhardt
4. Reports of Officers
2019 financial report: Income and Expense Statements: John Lehnhardt
2019 Budget Review:
John reviewed the SIA financial statements distributed with the annual mailing in October and updated both the statement of expenses and income through October 31, 2019, the close of the SIA fiscal year. John reported total expenses for the year were approximately $1,700 under budget due to refund on the initial survey done along the E. Barefoot beach access.
Under expenditures, John indicated the monthly trimmings and the annual trimming of SIA common areas account for approximately 30% of the SIA annual budget. Due to the check for the 2019 annual trimming not being cashed until November, this expense will be reflected in the 2020 budget. Additionally, John noted the cost of the June and September mailings to SIA members is the largest component of administrative expenses. This year there was an added administrative expense of $150 for the repair and updating of the SIA website with training on administrative use of the web site.
John addressed the legal fees incurred in 2019. These included the legal assistance of our general counsel to meet the 2011 mediation agreement regarding the Graff home at 1841 E. Shell Lane before the current owner would be able to put the house up for sale. Other legal fees in 2019 were incurred in seeking legal advice from our general counsel on various HOA issues raised in the continuing lawsuit an SIA member filed against SIA in November 2013. John stressed the vast portion of legal costs associated with the lawsuit are covered by our SIA insurance. Our cost for this insurance coverage has remained consistent despite this ongoing lawsuit.
2019 Capital Expenses and Improvements: John advised most maintenance work is done in-house at a minimal cost. However capital expenses and unexpected capital projects do occur, requiring heavy equipment and/or specialized expertise such as the beach stair repairs. Except for the E, Barefoot beach stairs, the SIA beach stairs sustained extensive damage this year. Following an unnamed storm last spring, steps from a lower section of the E. Shell stairs were washed away and significant structural damaged was sustained. The cost of this significant repair was funded through the Limited Voluntary Deferred Account, approved by SIA members in 2015. This account funds unanticipated expenses, such as major repairs to the beach stairs, in place of levying an assessment on SIA members. John expressed appreciation to the membership for their continued approval and support of this fund, especially with changing weather now causing stronger hurricanes than in the past and more frequent, sustained higher waves and tides over a period of days, or weeks, as during this fall following Hurricane Dorian.
NOTE: SIA website:
John discussed the SIA website as the main source of communication with all SIA members. The Board utilizes the website to post all information related to SIA including meeting minutes, the ARC guidelines, the SIA bylaw, postings of dates and times of Board meetings and postings of general information such as the County phone number for repair of water leaks and the details on the Sebastian Inlet lecture series.
SIA members may register to receive a personal email of new postings on the SIA website by going to the website at www.summerplaceflorida.com and registering their email address. These email addresses are used to send individual notifications of postings and are not available publicly.
Whenever there is a new posting on the SIA website, an email notification of the posting is sent to each individual SIA member who has registered on the SIA website
While current postings are available on the SIA community bulletin board at the A1A end of W. Barefoot, the SIA website is much more efficient for and convenient for SIA members to remain current on SIA information.
2020 Annual Budget and Dues
2020 Annual Budget:
John noted the 2020 budget is based on expenses incurred during 2019. He noted the proposed 2020 budget includes funding for road maintenance. Our roads are holding up especially well but are reaching the point of requiring both grading and rolling. This scraping should provide enough fill from the sides of each street to fill potholes. Should additional fill be necessary,it will be necessary for the Board to explore fill options. The fill we have used previously on the SIA roads is not readily available as it comes from sand pits now fully utilized by the County’s sand renourishment program on beaches within IRC.
2020 SIA Annual Dues:
John announced SIA annual dues would remain $300 per SIA property for 2020. This is the third year in which SIA annual dues have not increased.
An invoice for the 2019 annual dues was included in the 2019 Annual Mailing, Section II (Financial information) provided to all members in October.
All dues are payable by January 1, 2019. Thank you to those who have already paid their 2020 annual dues.
Approval of 2020 SIA Budget:
Following the presentation and discussion of the 2020 proposed budget, a motion was made and seconded that the Board approve the 2020 SIA budget. The Board voted unanimously to approve the budget for the fiscal coming year.
President’s Report: John Lehnhardt
Appreciation:
John recognized Walter Garrard who stepped down as President of SIA in February 2019. He noted Walter’s extensive service to our community as President since 2012; and prior to that as a member of the Board and the ARC. Following Walter’s resignation as President, the Board unanimously elected John President. Walter continues to extend his service to SIA, remaining on the Board.
In July, the Board appointed Ronnie Lawn to fill the Board vacancy created by John becoming President.
John thanked Patty Garrard for her continued service to SIA, including annually providing refreshments for the annual meeting.
Additionally, John expressed appreciation to Phil and Carol Glade for their reliable assistance every year at the annual meeting with registration, calling of the roll and determining a quorum for the meeting.
Rental Property Issues within SIA:
John summarized the various issues encountered during 2019 with SIA property rentals not in compliance with SIA policies. These included short-term rentals of less than the required 30-day minimum rental period, sub letting of a rental and a renter who did not cleanup after their dog.
John advised the Board will now oversee all SIA property rentals. At least two weeks in advance of the start of any rental within SIA, all members renting their individual SIA properties are required to complete a rental form and provide information to the Board on each specific rental and the individual renters who will be renting within our community.
The rental policies, as well as all SIA policies, plus the required rental form are available online at the SIA website: www.summerplace florida.com.
Parking Challenges within SIA:
John discussed the process to address parking issues within SIA. These include:
Talking with a neighbor involved in the parking problem to try to resolve the situation.
Contacting a Board member as necessary. The Board member will try to find the owner of the vehicle in violation of the parking policies (available on the SIA website) and have the car moved.
If the vehicle owner in violation is not available, a notice of violation is placed on the vehicle and the Board member takes a photo of the license plate. This usually takes care of the issue.
Any future violation by the same vehicle will result in it being towed.
The Board approved additional parking signs be placed on each SIA street to clarify where cars could be parked and where parking is restricted (all SIA cul de sacs and on the north side of each SIA street). 15 signs were placed throughout our five streets to inform folks of the parking rules. This has not completely stopped the parking issues, but it has helped. The parking challenges on E. Barefoot should lessen as the Crowder house is nearing completion of its renovation.
Please let a board member know if parking nuisances occur.
Additionally, John is working with residents E. Pebble Path regarding the increasing number of non-SIA members using E. Pebble Path to walk dogs or and/access the beach. Most of those in violation are renters from W. Pebble Path who are told by rental property owners that E. Pebble is available for their use. Signs have been posted on E. Pebble making clear no trespassing is permitted as E. Pebble it is a private street, for SIA members only. With the upcoming rental season, this issue will be monitored, and the sheriff called if there are repeat offenders trespassing on E. Pebble Path.
SIA Treasurer:
John reported Sue Harvey has resigned as SIA treasurer and expressed thanks to Sue for her seven years of service. Following a vote of approval by the Board, John is overseeing SIA finances through the payment and collection of 2020 SIA annual dues. After this, the Board will seek volunteers interested in the position of SIA treasurer.
Perpetual Easement of SIA Common Property Along the Seawall:
John provided information on the perpetual easement IRC is requesting of all oceanfront property owners within the County to allow the County perpetual access to the oceanfront beaches within IRC
for the purpose of future sand renourishment. To date, 85% of the property owners on the oceanfront within the County have granted this perpetual easement to the County in Sector 5 which is currently under sand renourishment.
SIA owns 18 feet of beach along the seawall in segments of 6 feet behind each of SIA’s three beach stairs in Sector 3 where sand renourishment is scheduled to begin a year from now in November 2020. Last month, the Board provided information to the County attorney regarding SIA ownership of this common property. So far, no reply has been received from the County regarding this. Once the County confirms SIA ownership of the 18 feet of common feet of common property along the seawall, our by-laws require a vote of the membership to grant the perpetual easement the County is seeking. Phil Glade suggested with a more than a quorum of members currently at the annual meeting, this vote could be taken at the meeting today, The Board agreed with this suggestion, and the perpetual easement will be addressed under New Business.
Legal Update:
John noted the lawsuit filed against SIA, the Board and several individual SIA members in November 2013 by an SIA member remains in litigation. The courts are moving very slowly on this matter. This is further complicated by the fact that every 2 years IRC judges rotate court assignments, requiring judges to take on new cases they are unfamiliar with every 24 months. The longer a case has been pending the more there is for a judge to come up to speed on regarding the case and the longer it takes to do this.
Many SIA members are aware those involved in the lawsuit are prohibited from discussing the details of this case on advice of our legal counsel. Our defense attorneys continue to strongly advise and caution these individuals as well as all SIA members to avoid any contact and/or communication with the plaintiff or any workers at his residence, other than a return of hello, if appropriate. This is for two critical reasons: one is to prevent you from being threatened with or becoming engaged in a lawsuit with the plaintiff, and secondly to protect the integrity of our legal case already in process. IMP Note: Individual actions by SIA members regarding the plaintiff that are not Board approved will NOT covered by our SIA liability insurance.
Mary Beasman is liaison with our defense attorneys and our insurance company for the lawsuit. She should be notified of any issues regarding the plaintiff and will communicate this to our attorneys.
5. Committee Reports:
ARC Committee: John Lehnhardt
Graff mediation settlement: John commended the work of the ARC in working with the current owner of the Graff property to reach an agreement that would meet the ARC requirement of a wood-like exterior on the house; and fulfill the 2011 mediation agreement regarding the property to prevent any legal issues in selling the house. John noted Lil Miller Fox researched SIA properties and determined one-third of the houses within SIA do not have a full-house wood-like exterior. Lil’s research indicated that since 2004, the ARC has accepted a partial wood-like exterior on the front of SIA houses. Based on this, an agreement was reached with the current owner of the property to add a wood-like appearance to a portion of the front of the house. Lil has been appointed chair of the ARC.
Upcoming construction within SIA: John indicated there is a possibility of pools being constructed on three SIA properties during 2020. No specific plans have been submitted on these projects yet.
Maintenance Committee: John Lehnhardt
This year John has overseen SIA maintenance of common property. He expressed thanks to those who helped with maintenance projects throughout the year. John cited Jim Chaulkey, Michael Flax and Phil Glade, SIA maintenance street captains for their continued assistance with filling potholes, trimming beach access walkways, etc. Additionally, John highlighted the efforts of Michael Flax and Dave Wolfram for their planting and watering of the E. Shell cul de sac this year, bringing it back to life; and Andy and Roseann Dlugosz for planting and caring for the W. Shell cul de sac to make it an attractive area. John expressed special thanks to former SIA “Maintenance Guru” Chuck Pickard. As the new kid on the block, John asked Chuck for maintenance advice numerous times and appreciated Chuck willingness to provide guidance and assistance. He noted he cannot hope to fill Chuck’s shoes as head of the maintenance committee but will do his best. John extended appreciation to Chuck for his many, many years of service and dedication to the maintenance of our community.
Update on repair of beach stairs: After Hurricane Dorian, SIA received an emergency permit that is good until December 9, 2019 to repair the SIA beach stairs. E. Barefoot needed no repair. The E. Shell stairs were shorn up and are functional, though slightly askew. The E. Pebble Path stairs were hit the worst. Work will be done on these stairs as soon as the higher tides and waves recede.
Note: Repair on the E. Pebble beach stairs has been completed.
Update on drainage issue in the E. Shell cul de sac: An attempt will be made to rectify a long-standing drainage issue in the E. Shell cul de sac. The Board has approved the hiring of a road contractor selected out of three options. Work should begin shortly after the Thanksgiving holiday. Shell residents will be advised when this is scheduled, as the road will be under repair work for at least a day.
Nominating Committee: Ed Seeman
Ed advised a letter was sent to all SIA members in June encouraging interested candidates to add their name to the annual ballot of proposed Board members. Together with committee members Carol Glade and Jean Etzel, Ed encouraged greatly community participation, beginning with new candidates for the Board. Ed reported all current SIA Board members agreed to be on the ballot for 2020, except for Mary Beasman. John thanked Ed for his work and also stressed the importance of community participation by SIA members. He invited all members to consider the opportunity to serve on an SIA committee or the Board.
6. Old Business
There was no old business.
7. New Business
Perpetual Easement of SIA Common Property Along the Seawall: Details of this situation were discussed in the President’s Report in section 4 above. John reviewed the purpose of granting the perpetual easement to the County is to provide the County access to the 18 feet of the common property SIA owns on the beach (6 feet behind each set of SIA beach stairs) for purposes of beach renourishment. Per SIA bylaws, a vote of a quorum of the membership is necessary to approve granting this perpetual easement to the County. A motion was made and seconded that the membership approve this action by the Board. Subsequent discussion included questions regarding sand renourishment of IRC beaches. A key component of maintaining our beaches is regularly putting sand into the system. Currently the County schedules sand renourishment for every 7 years. Our SIA beaches are scheduled for renourishment a year from now, beginning on November 1, 2020 following the end of turtle nesting season and concluding no later than March 31, 2021 prior to the full start of the next turtle nesting season. Following discussion, the vote was called and a quorum of the membership present unanimously approved granting a perpetual easement to the County for the purpose of future sand renourishment on our beaches.
Annual Meeting Refreshments: John acknowledged Patty Garrard and her expertise in annually providing refreshments for the annual meeting. Assisting Patty this year were Kathy Lehnhardt and Anne Seeman. John encourages those present to enjoy the refreshments while ballots were being counted.
Ballot Count: SIA volunteers conducted the ballot count and the following were elected to the 2020 SIA Board Directors: Walter Garrard, Bart Heikes, Ronnie Lawn, John Lehnhardt and Steve Melchiori.
With no further new business, the meeting adjourned at 11:35 a.m.
Respectfully submitted,
Mary Beasman, Secretary