Annual Meeting – 05/27/17
MINUTES
NORTH SHORES ANNUAL MEETING
Saturday, May 27, 2017
Call to Order and Quorum
The Annual Meeting of North Shores Homeowners Association was called to order by President Bruce Wilson at 10:10 a.m.
President Wilson introduced Board members Debbie Director, Paul Salditt, Helen Hoart, and Louisa Hollman and thanked them for their efforts and hard work over the past year. He then thanked those in attendance for taking an interest in their community and welcomed everyone to the meeting. Also acknowledged were: Phyllis Donovan, bookkeeper; Linda Travers, office manager; Steve Houston, property manager; Maureen Brown, beach club manager; and Lee Stewart, head of security.
It was established that a quorum was present for the meeting (82 represented in person and 55 represented by proxy), allowing for business of the community to be conducted at the meeting.
Minutes
Draft minutes of the May 28, 2016 homeowners meeting were made available on the community’s website and mailed to all homeowners in April as part of the Annual Report Package. President Wilson opened the floor for comments on the minutes. A motion was made and seconded to accept the 2016 Minutes as submitted. The motion to accept the minutes was passed unanimously.
President’s Report
President Wilson informed the homeowners about several items of neighborhood business affecting the community.
Capital Projects
North Shores continues to be well capitalized. Budgeted expenses intended for road and drainage improvements were not spent in full during 2016 due to contractor delays. The Board expects those expenses to be incurred this year. Drainage improvements are expected to continue this fall with a new contractor. Spending on road and drainage improvements is expected to be higher this year, but then even out in future years when the current phase of the work is completed.
President Wilson explained that it appears to have been more than 25 years since the last community wide paving program. The planned repaving will over-coat the existing road system while it is still in relatively good condition, using the existing paving as a base rather than completely rebuilding the road structure. Work is planned to begin this autumn in the central part of the community, the area of Rodney Street and Harbor Road. Residents should be aware that disruptions are likely to be experienced in the area.
Delaware Department of Transportation will replace the culvert and drainage pipe at the east end of Cedar Road at Ocean Drive. North Shores is relieved of financing the work but does not have control over the timing or scheduling of the planned work.
Capital repairs reflect the continuing obligation to maintain community assets. Upcoming capital projects will include road repair, drainage, a new storage building and beach crossovers. The community has a strong financial position as it continues to fund the capital repairs without an increase in annual assessment again this year.
Beach Report
Last year the community was asked to participate in a survey regarding a smoking ban on the beach. After reviewing the comments and results, smoking is strongly discouraged but not banned. Residents are asked to use common courtesy when smoking on the beach.
Owner conduct on the beach became a problem last summer. President Wilson warned that a code of conduct for the community may be necessary if there are repeats of a similar nature in the future. Homeowners are reminded they must follow instructions from lifeguards on the beach, who have final say in matters involving the beach. The Board notes that the community has a common interest in ensuring civil behavior on the beach, and that the Board will not tolerate abusive behavior toward other residents or staff.
Rehoboth Outfall
President Wilson reported the Rehoboth Beach Outfall Project continues to move slowly and with some uncertainty due to permitting issues. The Board believes that new sewer rates will be considerably higher per gallon and based on water consumption when the project is completed. Homeowners were advised to be conscientious about their water usage and to check for leaks, based on water usage provided by the City of Rehoboth. While the City has not yet set the new sewage rates, information associated with the outfall project suggest that rate increases may exceed four times their current level when the project is completed.
Treasurers Report
Treasurer Helen Hoart reported that requests for a greater level of financial disclosure resulted in a more detailed report in response to those requests. We regard more financial disclosure as healthy and invite further comment. Helen further explained the budget includes a one year reserve of operating expenses as well as a continued capital contribution. The current year will likely result in a deficit due to spending on the delayed road and drainage work but will rely on accumulated funds from the previous year. Tennis court fencing was replaced this year and beach expenses were limited to routine maintenance with no repairs due to storm damage.
President Wilson invited comments on the current budget and the greater detail this year on financial detail. There were no questions, comments or objections and the Board’s proposed budget was ratified by a show of hands.
Bath and Tennis
Maureen Brown, Bath and Tennis Manager, thanked everyone for their beach equipment orders this year and reported that there were several new lifeguards this year on the beach patrol. She reminded everyone that the pool passes were ready to be picked up at the pool and there would be three passes per household. Repairs to the pool were completed earlier in the week resulting in the pool being filled yesterday. The cloudy appearance of the water should only last for a day or so. Water aerobics will be offered again this year on Saturday morning for $5/per class. Adult lap swim will be available every day from 9-10:30 a.m. Pool hours are from 10 a.m. until 5 p.m. in June and until 6 p.m. each day through the end of the season. This year there will be no charge for the use of the tennis courts, but sign up is still required. The beach is guarded every day from 10 a.m. to 5 p.m. Dogs are permitted on the beach after 6 p.m. and in the morning before beach set up. There is no surf fishing from 10 a.m. to 5 p.m. Children using kayaks and paddle boards should be accompanied by an adult wear and a life vest if they are 12 years old or younger. She encouraged homeowners to use the website for beach equipment set up and scheduled for a two week period. Umbrellas that have not been used for three days in a row will be removed from set up for non-use. Umbrellas will be set up using the zig zag pattern again this year, and personal umbrellas should be set up in those areas or behind the established set up line. Maureen indicated that Beach Supervisor Rich Lantz will be monitoring the beach again this year.
President Wilson encouraged homeowners to use the website for beach equipment set up. The pool house does accept credit and debit cards in a move away from accepting cash. He also made homeowners aware that there were still some slips available this season in the marina.
Beach Report
President Wilson thanked North Shores Property Manager Steve Houston for his expert handling of a beached whale that washed up on the beach the previous week. He was able to have the Delaware Department of Natural Resources move the whale to the Gordon’s Pond beach where it was buried. Office manager Linda Travers created a photo essay of the event that is on display in the office.
The beach is in very good condition this year with repairs made last year to the dune holding up well. President Wilson reported that we are monitoring the dune, sand fences and crossovers, then reminded homeowners to keep their guests off the dunes to the greatest degree possible. Dune grass that was planted last year as part of the beach repair are still young plants that need to become established. He asked oceanfront homeowners to stick to the diagonal paths and stay off the dune.
Security Report
Security Supervisor Lee Stuart reported that the winter was quiet with no reported crimes, but some nuisance thefts and vandalism had been reported. Lee explained to homeowners that the security staff were employees of Henlopen Acres and contracted with North Shores. He reminded homeowners with golf carts a valid driver’s license is required and that children are not permitted to drive. In response to a homeowner question, Lee confirmed that the patrol schedule of the neighborhood is the same in the offseason as it is in the summer months.
Architectural Review
Paul Salditt, Head of Architectural Review, thanked homeowners for their cooperation with the review process and the covenants that have been established. Compared to previous years new home applications were slightly less but there was an increase in the number of additions and other construction projects. Paul encouraged homeowners contemplating new construction to begin the process early so plans can be approved for construction in the fall with the majority of the building taking place in the offseason. Drainage remains a key area of attention in the approval process for construction applications due to the high and rising water table in North Shores. Paul stated that runoff must be managed through a drainage plan and the discharge of roof runoff should not be directed at neighbors. Regrading is allowed to encourage drainage, but elevation changes require an application and review by the Board.
President Wilson commented that drainage continues to be a major factor and homeowners may not discharge runoff onto neighboring properties. He stated that the Board generally does not become involved in drainage issues between neighbors arising outside of the construction approval process, and noted that the Board does not have the formal authority to adjudicate issues between neighbors. Common courtesy goes a long way in resolving neighbor disagreements. Bruce thanked Paul for the invaluable service he provides to the community as head of the ARC committee.
Election of Officers
The next item on the agenda was the election of officers. The terms of President Wilson and Treasurer Helen Hoart expire this year and both have agreed to serve another term. President Wilson thanked Helen for her work as treasurer, working with bookkeeper Phyllis Donovan to improve the financial reporting. Helen is also working with fellow board members Debbie Director and Louisa Hollman on a long term project to update the North Shores website and online functions.
President Wilson, as part of his reelection, explained his commitment to investing in the maintenance required to keep the community assets in good condition. He further described his view of managing the community with a board that adopts a corporate rather than municipal approach. The board values homeowner input but will manage the community by a defined set of objectives and goals that balance the long term interests of the community. In President Wilson’s view, Board decisions should ultimately balance these different approaches to managing decisions made in the best interest of the community.
The motion was made, seconded and unanimously approved, for the election of the candidates.
New Business
Food trucks
President Wilson gave sincere thanks to board member Louisa Hollman for her efforts in organizing the 2017 Memorial Day and Fourth of July parties. He went on to explain the board has approved a single food truck at lunch for a few hours on three Saturdays this summer. The experiment of trying food trucks came from homeowner enthusiasm in response to the last years’ July Fourth activities. We intend to seek community comment at the end of the summer to evaluate the success of the trucks.
One homeowner did express dissatisfaction with the food trucks citing several reasons. There were other homeowner comments in support of the Board’s decision to try food trucks on a limited basis.
One homeowner thanked the board for their many hours of time spent managing the community and savings to the community as a result of their commitment.
Rehoboth Outfall
President Wilson responding to a homeowner question regarding the status of the project, reported that permits had not yet been granted by the State of Delaware but were expected in the near future. The project’s impact on North Shores as described in the scientific studies, suggest little effect due to the treated effluent and the discharge location a mile from shore. President Wilson encouraged homeowners to monitor their water usage as new rates will be tied to individual water usage when the contract between North Shores and the City of Rehoboth is renewed.
Marina Dredging
A homeowner inquired about plans to dredge the marina after a large algae bloom formed earlier this spring. President Wilson reported that there are not any current plans to dredge the marina but that it will be something that has to be done again in a few years. He asked boat owners to report any issues with shallow water in the basin.
There being no further questions, President Wilson thanked everyone for their thoughts and opinions.
President Wilson asked everyone to take a moment and reflect on the meaning of Memorial Day and give thanks to those that sacrificed for us. He specifically wanted to remember Navy Seal member, Kyle Milliken, who was killed May 6, 2017 in Somalia in an operation against terrorist group al-Shabab.
The Meeting was adjourned at 11:25.
Respectfully submitted
Deborah M. Director
Secretary
NSBG, Inc.