Friday, October 10, 2014

Notes from the Annual Meeting yesterday

Board Chairman agreed to ask counsel for a response to the question: "In your OPINION, what is the legal justification for abandoning the amendment procedure specified in the Bylaws, and using an ad hoc procedure instead?" How one asks the question makes a difference.

Board claimed that the owner of the red door was fined pursuant to § 55-79.80:2. However the first sentence of this section states: "The unit owners' association shall have the power, to the extent the condominium instruments or rules duly adopted pursuant thereto expressly so provide". Southampton "condominium instruments or rules" do not contain such a provision. The owner was unlawfully fined $1800.

Door Replacements: There appears to be no criteria for acceptable door replacements — it's whatever the current directors approve. This does not satisfy the requirement of  Declaration, Article XI, Para B, for a "uniform plan for the development and operation of the Condominium."

Proposed Bylaw Amendment permitting the Board to assess fines was sent to homeowners and is to be returned by December 31, 2014 in violation of Condominium Bylaws. Given the history of Board decisions over the past 15 years, if you vote YES, you need to see a shrink.

Board stated that absent passage of the amendment to fine homeowners, the Board can use other means to enforce compliance with the Bylaws and rules duly adopted.

Committees: It's not clear whether or not committees exist. The Condominium Act and Bylaws provide a role for directors, management agent, and committees. The rules state that there are six committees. The Board claims it utilizes volunteers who are not subject to the Condominium Act § 55-79.75. What right then do "volunteers" have to tow cars? Is the Association obligated to protect them from lawsuits?

Construction of pool house addition is being examined. All options are on the table.

Ballots: A statement on the ballot was clarified. One could vote for a single candidate. It was not required to vote for three.

Fairness of election: Comments from the Board during the candidate presentations and the newsletter mailed days before the election by the "Newsletter Committee" were clearly an attempt to influence the election. The newsletter devoted an unprecedented nine pages to one candidate's complaint. Contrast this with the less than six sentences in minutes of Board meetings during the roughly eight months during which the complaint was being processed. This may be why some condominiums have an independent committee manage elections. Some sponsor a "meet the candidate" event before the annual meeting.

SurveyMonkey will be used by the Board to solicit homeowner input on a variety of issues. This is a step forward, but not a true survey because it is neither a random sample nor a survey of all
homeowners.

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