Annual Meeting – 05/23/15
NORTH SHORES ANNUAL MEETING
Saturday, May 23, 2015
Call to Order and Quorum
The Annual Meeting of the North Shores Homeowners Association was called to order by President Bruce Wilson at 10:10 a.m.
President Wilson introduced Board members Donnee Ramelli, Mary Haverback, Paul Salditt and Debbie Director and appointed board member Helen Hoart. He thanked all for their dedication and hard work over the past year on behalf of the community. President Wilson also introduced staff members: Dion Johnson, Office Manager; Phyllis Donovan, Bookkeeper; Maureen Brown, Bath and Tennis Club Manager; Steve Houston, Property Manager; and Lee Stewart, Security Supervisor. President Wilson welcomed the members of the community attending the meeting and thanked them for taking an interest in the community.
It was established that a quorum was present for the meeting (93 represented in person and 45 represented by proxy), allowing for business of the community to be conducted at the meeting.
Minutes
Draft minutes of the 2014 Annual Meeting were mailed to all homeowners in April as part of the Annual Report Package. The floor was opened for comments. A motion was made and seconded to accept the Minutes as submitted. The motion to accept the minutes was passed unanimously.
President’s Report
President Wilson announced that the structure of this year’s meeting would be slightly different from past years. The Architectural Review Committee would be presented at the end of the meeting to allow for questions and discussion about the architectural standards, other business items on the Agenda affecting the community would be presented first. He reminded all attending that the discussion of architectural standards should be conducted in a courteous manner.
The Capital Survey that was completed earlier in the year indicated that North Shores was well capitalized and should continue to reserve for future expenses. Dues were not increased this year because of delays in capital spending until the survey had been completed. The community will face some major capital expenses in the next few years that will include: road repaving and drainage, a new storage building, and replacement of the beach crossovers. The survey also indicated that long term financial planning should include the obligation for maintaining the assets of the neighborhood.
Projects that were undertaken this spring included the first phase of drainage and swale rehabilitation as well as repairs to the community pool. President Wilson explained the need to improve drainage in the neighborhood before road repaving could be considered. This year’s unusually cold winter resulted in a cycle of freezing and thawing that accelerates damage to the road system. Drainage and swale rehabilitation will restore swales to their original condition providing better drainage and improving water retention and ponding that currently undermines the roadbed. At the meeting, the Board announced that in response to homeowner comments about the appearance of some of the newly restored swales in first phase of the project, the Board had tentatively decided to adopt a cost sharing program between homeowners and the association that would allow homeowners to install buried drainage pipe in the re-contoured swales. A survey of homeowner support by a show of hands indicated strong support for the graduated approach, and for continued improvement to the existing drainage system.
Beach rules that began in 2014, in particular, the rules governing staggered umbrella placement and the use of personal umbrellas on the beach, will continue to be in effect this summer. President Wilson indicated that a small number of homeowners had expressed strong views on both sides of the new umbrella policy. Many homeowners support the staggered line arrangement for umbrella setup on busy days. This year on an experimental basis, in response to a few homeowner requests, two personal umbrella zones have been created next to the lifeguards for those who wish to bring their own umbrella to the beach. President Wilson announced that we would be experimenting with ways to address unused equipment, and informed residents that umbrellas that had not been used for three days in a row would not be put up again without calling the pool office. This will allow better management of the beach and reduce wear and tear on the equipment.
Based on the best information we have available, it appears that the Rehoboth Beach Outfall currently being implemented by the city will result in the North Shores sewer rates increasing by two or three times from their current level. The current sewer agreement between the City and North Shores has expired and a new agreement will be negotiated and will likely include rates based on usage. President Wilson stressed the importance of checking for leaks based on information provided by the city on water usage. A report from the city indicated some homes were using hundreds of thousands of gallons of water and normal usage should be around 65,000 gallons/year. Homeowners were advised to monitor their usage and check for leaks.
Treasurer’s Report
Treasurer Donnee Ramelli presented the budget report, noting that the annual assessment remained flat this year. Capital reserves increased over the year primarily due to the postponement of some projects while the capital survey was finalized. Some adjustment was made in the priority of projects to better align planning with the completed survey. The capital survey will be used as guide rather than a blueprint in evaluating factors affecting the long term planning and replacement of assets. Treasurer Ramelli reported base salaries for lifeguards were increased this year to keep pace with neighboring communities. President Wilson then thanked the Treasurer for his long term service to the community as a member of the Board.
Security Report
Security Supervisor Lee Stewart reported there were no significant security issues over the winter. There were no burglaries reported but the cold weather had caused several broken pipes. Homeowners are encouraged to have proper parking permits for their vehicles, parking enforcement will continue again this year. Security systems are considered an important part of deterring break-ins and homeowners were encouraged to use their alarm systems and have signs posted in their yards. Lee announced that long term employee Ernie Mason, who was a familiar presence in the community, had retired in March.
Bath & Tennis Club Report
Maureen Brown, Bath and Tennis Manager, thanked everyone for their umbrella orders and reminded everyone that pool passes had been prepared and were available to be picked up at the pool office. Each homeowner will receive three passes, and Maureen reported that the system worked very well last year. Lap swim will be from 9 a.m. – 10:30 a.m. each day and the pool will be open from 10 a.m. – 6 p.m. each day. Aqua aerobics will be held again this year on Saturday morning. Maureen announced this year there will be a beach captain on patrol every day to improve beach management and security. Head lifeguard, Rich Lantz, accepted the positon and will patrol the beach on foot several times a day. Maureen reminded everyone that there is no surfishing from 10 a.m. – 5 p.m. each day and dogs are permitted on the beach after 6 p.m. The beach will be raked twice a week and homeowners were reminded to fill in holes at the end of the day. Children using paddleboards and kayaks should be accompanied by an adult.
Homeowners are encouraged to use the North Shores website for equipment set up and confirmation. Equipment may be reserved for set up two weeks at time, but not for the entire season. Transportation is available from the pool parking lot every day from 11 a.m. – 4 p.m. for those needing assistance to and from the beach. New this season, credit cards will be accepted at the pool office for beach equipment rentals.
Beach Report
President Wilson presented the beach report indicating a large buildup of sand over the winter creating a very high and wide beach. The buildup of sand has created a sand bridge, allowing vehicle traffic onto our beach over the jetty. Homeowners observing trucks or ATVs on our beach are advised to call Security immediately. President Wilson reported that DNREC is currently updating the beach regulations with changes likely affecting ocean front owners. Included in the updated regulations will be formal storm damage assessments, rebuilding standards and setback requirements.
Election of Officers
The next order of business was the election of officers. Candidates were Debbie Director, currently serving as Secretary, and Helen Hoart, appointed Board member currently serving as Assistant Treasurer for the past year. Helen was nominated to fill the remaining two years of the term currently held by Donnee Ramelli. President Wilson thanked Donnee for his thoughtful level headed leadership on the Board. He has served on the Board for the past 7 years and has been Treasurer since 2012. As a token of appreciation for his hard work an abacus was presented as a parting gift.
Architectural Review
Paul Salditt, Architectural Review Committee Head, reported that fewer construction applications had been received this year compared to recent years. Most new homes currently under construction were approved before 2014. He thanked everyone for cooperating with the review process. Paul reviewed the history and adoption of the current covenants that began in 2003 and were approved by the entire neighborhood in 2005. The covenants as written define height, setbacks and other architectural elements, but they do not cover color, materials or style. The review and approval process can guide homeowners but, the covenants do not permit the Board to dictate matters of taste.
President Wilson stated that the review process for construction applications is taken seriously and the covenants are enforced as written under Delaware law. The Board seeks outside legal advice occasionally but weighs the various factors and neighbor comments when evaluating each new project. With more than a decade of experience with the current covenants, it may be time to consider looking again at the covenants, but President Wilson assured everyone that the neighborhood would look vastly different and more crowded now without the current covenants in place.
In response to questions about the size and placement of a new ocean front home, President Wilson stated that ocean front homes are allowed greater volume under the covenants and the west setback of the house accommodated a neighbor request but serves as a useful illustration of the setback line being considered in the new DNREC regulations currently being adopted. Architectural harmony with neighboring structures was raised as a question, and in response, President Wilson outlined the wide variety of designs throughout the neighborhood. He further explained that current Delaware law interprets terms such as “harmony” in a fairly narrow manner, and that the covenants are required to be administered under applicable Delaware legal standards.
The current ARC review process includes review by the immediate neighbors with plans available in the North Shores office for review by the entire community. The North Shores website lists all current construction projects as well as some that have been recently completed.
New Business
President Wilson reminded homeowners about the neighborhood cocktail party that evening held at the pool. He thanked Mary Haverback and Leslie Lane for their efforts in organizing this year’s event. A request was made for volunteers to head next year’s cocktail party. President Wilson announced that there will be a July 4th cookout and parade this year, with special thanks to Lynne and Lyndsay McDougal for volunteering to organize the event. Details will be posted on the website.
Homeowner questions were welcomed ending the formal presentation portion of the meeting. A homeowner requested speed bumps on South Rodney Street in response to traffic. There were a number of comments about safety along Ocean Drive. Several homeowners commented about speeding traffic and the increase in bike traffic connecting to the new bike path in the State Park.
North Shores founder and former Board member, Dan Anderson, congratulated the Board on their management of the community.
President Wilson took a moment to remember those that had served our country, most recently the military personnel that were casualties of humanitarian work in Nepal following the earthquake, in recognition of Memorial Day.
There was no further business, the meeting adjourned at 11:29 a.m.
Respectfully submitted,
Deborah M. Director
Secretary
North Shores Board of Governors, Inc.