Below please find the original recording of the Thursday, January 21, 2010, POASC Board Meeting in its entirety.
You can listen to the entire unedited meeting, over the Internet, by using the following player in Internet Explorer. Other browsers may or may not work.
To download different file formats including Windows Media Player and MP3 [that can be listened to in most MP3 players] please click on the following link:
Spanish Cove’s, Thursday, January 21st, 2010, Board Meeting
Tags: Board, January 2010, Meeting, POASC
I was an organizing member of the Concerned Property Owners Committee (CPOC) that formed as a consequence of the troublesome events surrounding POASC’s financial situation brought to light last summer. The objectives of the committee were consistent with my own though in some instances I differed with other members on procedural matters. As I stated at the Town Hall Meeting many changes have been made and more are in process and I believe that my own objectives will soon have been met.
At this juncture the CPOC is considering broadening its objectives to other areas. I have decided that since my personal objectives appear to have been met and because I do not wish to participate in an expanded effort by CPOC the most reasonable personal action would be to withdraw from membership. Therefore, I have resigned my membership with CPOC.
Wallace D. Hodge
Lot 2130
Tags: CPOC, Financial, Organizing Member, POASC
In response to Free Speak comments I, not Dave Danson, recorded the meeting and placed the recording on Cove Connections.
It’s a full unedited version of the entire meeting and was placed on CC so that property owners, who were unable to attend the meeting, could listen to the entire event.
Another day of surprises!
I walked into the dining area at the rehab center and there was Mr. McKinney watching TV.
I stood looking at him, wondering if he really knew who I was, when out of his mouth comes, "Hey there, Sally Lou".
OMG! Lots of hugging and kissing. He even talked to our kids on the phone.
He’s not 100% yet, but my confidence is rising by the day.
Please continue to keep him in your prayers.
I’m convinced that God is just tired of hearing all of you and will fix him up quickly to shut you up.
I can’t tell you how much you all mean to me.
Thank you.
There are several comments made on Spanish Cove Free Speak that I feel I must reply to.
1. My filming of the meeting was because Cove Connections was/is hopeful of being able to post the entire meeting for those who missed the meeting to see. The camera was running continuously except when the batteries died. The entire meeting could not be filmed because I had only brought one set of replacement batteries and that was not sufficient. No editing of the tape was done by me, or anyone else to the best of my knowledge. If anyone would like to see the tape I will make the sd card available to them to take home and return to me after watching the approximately 1 hour of the meeting I was able to tape. You can see that there are 3 files on the card–the first is about 25 minutes. The camera stopped because the battery was weak, I restarted it and it recorded another couple of minutes. After replacing the battery there is about a half hour of meeting recorded. The taping was done in the open. No one requested that the meeting not be taped
As far as the accusation that I am still supporting Charlie. In a public Board meeting I addressed the Board, admitted I was wrong in my original support and went so far as to say that I felt the Board should pursue filing a complaint so that Charlie would have a permanent record for what he had done.I have said before, and continue to believe that Charlie did wrong, and that he misused POASC funds for his own personal benefit. I do feel that much of the blame falls on Boards in existence between 4-03 and 6-09 who failed to take steps to create strong internal controls. Stop blaming Ben Bonnet and Sue Huff. Ben was turned down by both the Finance Committee and the Board on proposals aimed at improving our internal controls. He also spoke to our outside accountants regarding expanding the audit. The Board and Finance Committees thought it unnecessary and to costly. Sue Huff was never even an Authorized signature on the POASC account due to lies told to her and to Frank Lenox by Charlie. As to myself in 2003, after the Karen Black experience I, as a member of the Finance Committee proposed the codifying of all the recommendations made by the Auditors. My proposal was turned down by the then chair of the committee as not necessary. I resigned from the Committee in protest. I have long advocated an expanded audit annually, and the formation of a "membership" internal audit committee. I am today a member of the Ad Hoc Committee writing internal control procedures and will advocate strongly we expand the audit and have some form of membership internal audit procedure. Dick Junkins, who leads the Ad Hoc committee has long been in agreement with both of these necessities.
In closing, outside of the item now being investigated by the Fairhope Police I do not feel that a crime was committed because all purchases were authorized by the Chairperson signing the check paying for the purchases, thus in effect approving them. Under our rules the Chairperson has the authority to approve any budgeted purchase up to $1500. Gas is an budgeted item. In addition, the manager has the authority to spend up to $500 as he/she desires with no ones approval. That is why I feel that there was gross misuse of funds, but not a crime. Charlie was morally wrong in what he did and I condemn him, but much blame falls on the Boards during his tenure as manager.
January 16, 2010 10:31 AM
Tags: Board, Finance Committee, Free Speak, Response
Below please find the complete original recording of the Tuesday, January 12th, 2010 CPOC Town Hall Meeting.
You can listen to the entire meeting, over the Internet, by using the following player in Internet Explorer. Other browsers may or may not work.
To download different file types click on the following link:
http://www.archive.org/details/CPOCTownHallMeeting
Below is a picture of the web page.
DENNIS McKINNEY [Sally’s husband] suffered a stroke during carotid artery stent placement. He is in Spring Hill Hospital, Mobile and moving to Mercy Medical Rehab Center, Daphne tomorrow, hopefully.
Please keep him in your prayers.
Everyone’s entitled to their own opinion but that’s all it is [unless the writer attacks the reputation of, speaks ill of or defames someone].
I choose not to accept some opinions and, like a seed on the wind, let them float by remaining centered and unattached.
Spanish Cove’s problems seem very small indeed especially when major earthquakes and devastation occur.
Today my thoughts, prayers and concern are with the Haitian people.
Town Hall Meeting
6:30 p.m. Tuesday, Jan. 12
Open Forum
The Concerned Property Owners Committee
POASC Chairman of the Board Joan Fletcher,
POASC Attorney Daniel Craven
and a representative from POASC accounting firm
Gruenloh & Associates
will attend
and will be available for questions and information.
One thing remains true in Spanish Cove, the kindness and good will of neighbors and friends. We’re so lucky to live in this small community where thoughtfulness, kindness and friendship abound [which can make such a difference especially with those of you who are on your own and have no family to fall back on].
The website HelpOthers.org provides ideas, suggestions and stories about how even the smallest act of kindness can make a difference regardless of whether you’re on the giving or receiving end.
We’d really like to hear your stories and ideas.
You can email them to editor@coveconnections.com or leave a comment in the comment box that’s located at the bottom of this article.
Tags: caring, Community, Kindness, thoughtfulness
Song Lyrics:
Happy new year
Happy new year
May we all have a vision now and then
Of a world where every neighbor is a friend
Happy new year
Happy new year
May we all have our hopes, our will to try……….
To read the rest of the lyrics please click Happy New Year Lyrics
Tags: Happy, Happy New Year, New, video, Year
Theresa Lucas, a representative of Alabama Utilities Service (AUS) introduced herself to the board and property owners in attendance at the December board meeting. The group has acquired a permit to build a sewerage treatment plant at the north end of County Road 91. One of the principals, Lucas said the new plant would have a treatment capacity of one million gallons per day in a state-of-the-art facility. She said Baldwin County Sewer Service (BCSS) that now serves Spanish Cove has a 250,000 gallons per day license.
AUS is looking at the feasibility to bring lines to Spanish Cove. It is seven miles from the proposed plant to the area and would have a high cost, but Lucas said once the cost was established, they could hold the rate for a number of years. She said the goal of the new facility is to eliminate pollution of waterways.
Chris Matthews is the General Manager of AUS and has many years experience in wastewater treatment, Lucas said.
The plan could only succeed if enough property owners would agree to connect to the new lines. She said this plan would not eliminate the current plant operated by BCSS.
AUS operates seven facilities in the state including three in St. Clair County, two for the Department of Corrections and two in Jefferson County. A future meeting for property owners will be held to ask questions. Meanwhile, property owners may contact Lucas at tlucas@lucaseng.com.
New Budget
Good news was delivered as Director Junkins reported the proposed budget offers no increase in assessments for Fiscal Year 2010-2011. If approved, the assessments will remain at $52 per month. He told board members a change was made to a cost-based budget to allow them to see what specific items cost, such as the clubhouses, maintenance and the pool. The board will discuss the budget at the January meeting and a special Budget Hearing will be scheduled after that.
LH Contiguous Lot Proposal
A proposal to increase the size of dwellings on contiguous lots in Land Harbor was passed unanimously and will be sent to the Nominations and Elections Committee to include the ballot in the Annual Meeting voting in March.
If approved by at least 20% of property owners, the amendment to the Covenants would allow dwellings up to 1,250 square feet on contiguous lots, not including porches, decks, patios, carports and garages. The main dwelling footprint must fall across at least one lot line separating the contiguous lots.
In addition, sufficient parking space must be reserved to park all planned vehicles including RVs, boats with trailers and utility trailers in compliance with POASC parking restrictions.
This amendment will further define rules for conventional (site-built) and modular homes in Land Harbor. The new language defines “livable area”. The proposal offers modestly increased dwelling size for property owners that may be considering placing a dwelling on contiguous lots, said Rules Committee Chairman Dick Junkins. “Livable area” is defined as a heated and cooled area exclusive of porches, decks, patios, carports and garages.
Pro-Active Neighborhood Watch Proposed
Security Supervisor Ron Hafer reported a new pro-active Neighborhood Watch is being proposed. He said volunteers would be staged at various points in the Cove during the night. They would volunteer for short or long shifts between 10 p.m. and 4 a.m. Property owners will be asked to volunteer their driveways for the volunteers to park so they may observe nighttime activity on the streets. He and the Operations Manager are investigating the purchase of night-vision motion-sensor cameras for use in the project.
He suggest that property owners call Riviera Utilities to have a street light installed at their property for safety. Cost is $20 for installation and $4.60 per month for power cost. He said in some areas neighbors are splitting the cost for the security lighting.
New Furniture
Board members approved a total of more than $11,000 for pool and RV clubhouse furniture. The pool furniture will cost $5,904.36 including shipping and tax. The purchase includes seven lounges and tables and 28 chairs. They will be purchased from Suncoast Outdoor Furniture. All tables and chairs will be replaced. The lounges will replace some that are not in good condition. Umbrellas are not included, as the current ones in use can be used.
The RV Clubhouse will get 14 chairs with arms and 14 without, four 42-inch diameter tables with laminated tops and a bulletin board from Alfax Wholesale Furniture. In addition, an end table, lamp and two high-backed side chairs will also be purchased locally. The total for the RV Clubhouse furnishings is $5,224.65.
Treasurer Resigns
Director Ben Bonnet resigned as Treasurer, but will stay on the board in another capacity until the end of his term in 2012. Director Dick Junkins as Assistant Treasurer will take over the Treasurer’s duties until the end of the fiscal year on March 31, 2010.
Vice Chairman Sue Huff who chaired the meeting due to the absence of the chairman, read a letter from Spanish Cove Attorney Daniel H. Craven. The letter says that he has advised the board not to discuss details regarding actions by former employees. He said, “The board and the Association take the position that no wrongdoing has occurred and that it will not be pursuing these matters further.”
He said the board’s cooperation with the Concerned Property Owners Committee (CPOC) by making its books and records available is consistent with its “open book” policy.
Director Huff said although Alabama is an “at will” state and no reason is required in terminating an employee, once you begin saying why a person was fired, you make yourself and the association vulnerable to lawsuits. By following the attorney’s advice, the board keeps itself safe from litigation.
Kudos for CPOC
Director Pinkerton in a statement said CPOC “provided a great service for the Property Owners of Spanish Cove.” He said they worked as a team gathering important information, compiling it and spending their own money to distribute it to residents. He asked the members of the committee who were present to stand and the audience showed appreciation by their applause.
Manager Report
Operations Manager Butch Price said bids were opened for the items listed previously. The winning bids on the iPhones were $110 and $75 and the refrigerator went for $26.51. No bids were received on Lot 636, the truck or the microwave. The board and the manager will decided on how to proceed with these items.
The Manager apologized for disseminating misinformation, using the term Forensic Accountant instead of Certified Public Accountant.
Nine letters were sent to property owners to clean up their property or bring them into compliance of setbacks. Twelve permits were issued and 30 maintenance work orders were completed.
Committee Reports
Activities Committee:
· “Un-decorating”-Wednesday and Thursday, Jan. 6 and 7. Volunteers needed.
· Cabaret Night-6:30 p.m., includes a performance of show tunes, popular music and oldies by Fred Land. Cost $6 per person. BYOB. Finger food provided by the committee. Sign up at Activities Office by Jan. 25.
· Chili Cook-Off and Bonfire-Feb. 20
· Craft Show-March 20
· Showcase of Talent, 2 p.m. March 7. Not a talent show, just a showcase. Register at the Activities Office.
· Cove-wide Yard Sale-April 10. $5 fee, some spaces available in the Cove Clubhouse parking lot.
· The Activities Committee checking account will be transferred from United Bank to BB&T due to a charge assessed at United Bank.
Administrative Committee
The Committee is working on Operating Procedures Section 7.3 Hiring an Operations Manager and will begin work on an application that will be given to the final candidates to submit.
Communications Committee
Director Sharon Bemis said the committee is working on procedures and a purchase order draft. She said she feels it is imperative to come up with something in light of what has happened. Operations Manager Price said the office is already using purchase orders and would provide her with a copy.
PDM Committee
Director Jimmy Young said repairs are being done with no outside contractors. Exit lights at the Cove Clubhouse have been repaired, the steps at the office are being fitted with slip-resistant strips and the fire hydrants have been painted. He said the committee voted to do away with contractor fees that are being charged that are unnecessary.
Roads and Drainage
Director Tom Pinkerton said a drainage ditch on Pine Ridge Drive needs some work because it is diverting water to the adjoining property instead of going into the creek. The maintenance crew can remove some blockage. The Operations Manager will solicit bids from contractors to finish the job.
Rules Committee
Director Dick Junkins said the proposal to change the rules regarding use of the clubhouses has gone back to the drawing board, due to responses from property owners and reconsideration by some committee members.
The motion last month was that “POASC discontinue all rentals of the Cove Clubhouses, not to include reservations made for Cove-sponsored activities. A list of Cove-sponsored activities will be maintained by the Activities Coordinator as approved by the Operations Manager. This change to be effective January 1, 2010”.
The committee unanimously agreed that rentals by non-property owners should be prohibited. The Rules and Regulations pertaining to the Bylaws concur.
“Clubhouses may be used only by Spanish Cove Members in good standing. A schedule of user fees and deposits to provide for clean-up costs and/or cover inordinate wear will be posted and a contract shall be filled out prior to use. This may be accomplished at the activities office at the Cove Club. Use of either Clubhouse shall be restricted to activities sponsored and attended by the Association Member seeking its use.”
However the current Operating Procedures allow rentals to outside organizations under the “Special Use” provisions.
“Special Use is defined by party or parties, private clubs or organizations not necessarily directly and principally related or associated with Spanish Cove or POASC.”
The committee also agreed that the Activities Committee should have priority in reserving the clubhouses for Cove-wide events.
“Activities may be scheduled by the activities Committee at any time; property owners may schedule activities within a five month window.”
The Activities Committee Chairman and Activities Coordinator have been invited to the next meeting of the Rules committee at 10 a.m. Wednesday, Jan. 13. Discussion will continue on the subject.
Safety Committee
Director De Dickey postponed discussion on the committee’s proposal to spend more than $900 on “No Outlet” signs and posts for the 17 cul de sacs in the Cove. She reported that Jimmy Young would replace Dick Junkins as Vice Chairman of the committee.
The night security crew has submitted an extensive report on dark areas where streetlights would be beneficial. The remaining 13 lights that were approved previously will be installed.
Residents are asked to call Security if vendors are seen blocking streets without the use of cones.
The next meeting of the Board of Directors will be held at 10 a.m. Thursday, Jan. 14 in Working Session. The next Regular Session of the board will be at 6:30 p.m. Thursday, Jan. 21.
Tags: Board, Budget, Committees

According to the Alaska Department of Fish and Game, while both male and female reindeer grow antlers in the summer each year, male reindeer drop their antlers at the beginning of winter, usually late November to mid-December.
Female reindeer retain their antlers till after they give birth in the spring. Therefore, according to EVERY historical rendition depicting Santa’s reindeer, EVERY single one of them, from Rudolph to Blitzen, had to be a girl.
We should have known… ONLY women would be able to drag a fat man in a red velvet suit all around the world in one night and make it home safely.
Tags: Celine Dion, christmas, Oh Holy Night
A man and woman had been married for more than 60 years. They had shared everything. They had talked about everything. They had kept no secrets from each other except that the little old woman had a shoe box in the top of her closet that she had cautioned her husband never to open or ask her about.
For all of these years, he had never thought about the box, but one day the little old woman got very sick and the doctor said she would not recover. In trying to sort out their affairs, the little old man took down the shoe box and took it to his wife’s bedside. She agreed that it was time that he should know what was in the box.
When he opened it, he found two crocheted dolls and a stack of money totaling $95,000. He asked her about the contents.
‘When we were to be married,’ she said, ‘ my grandmother told me the secret of a happy marriage was to never argue. She told me that if I ever got angry with you, I should just keep quiet and crochet a doll.’
The little old man was so moved; he had to fight back tears. Only two precious dolls were in the box. She had only been angry with him two times in all those years of living and loving. He almost burst with happiness..
‘Honey,’ he said, ‘that explains the dolls, but what about all of this money? Where did it come from?’
‘Oh,’ she said, ‘that’s the money I made from selling the dolls.’
Tags: joke
Tags: American, celtic, celtic woman, woman
Merry Christmas Everyone!
Celtic Woman will appear at the Pensacola Civic Center on April 16th, 2010.
To visit their website click on Celtic Woman Website
Tuesday, December 08, 2009 12:04 PM
Butch,
Following up on an earlier conversation, it is my estimate that hiring a forensic accountant to perform a special audit would be quite expensive. I am concerned of the benefit to be derived from such unless evidence to prosecute someone is needed. It is hard to reconstruct transactions without documentation. It is also hard to determine if rules were broken if no written rules existed other than what would be expected from a reasonable person at the time. Any damage has already been done and can not be changed. You can only go forward at this juncture and improve on controls in the future. It may not be cost effective to perform a special audit unless peace of mind is needed or there is some other reason other than general knowledge.
Thanks,
Rick Lowe
Posted with Permission of Rick Lowe, CPA
Tags: accountant, Forensic, transactions
A new search feature is now on Cove Connections and it will search posts and comments. The search word(s) will be highlighted when the results become available.
Tags: search
A couple started a business and, in the process, hired a secretary | bookkeeper.
As the business grew he essentially handled the business side of things while the couple focused their time on growing the business.
Later a degreed officer was hired to handle financial matters.
She discovered that the employee, who the owners had treated like their own son, had used their credit cards for personal use. I won’t go into detail but there was serious misuse of the credit card and it had gone on for quite a while.
The owners were devastated and, as a result, new accounting measures were created. Nobody blamed the owners, a friend had exploited their trust.
The above situation is very similar to what Spanish Cove is experiencing now. The people who misused the credit cards hurt Spanish Cove and the trust that POASCs officers and residents placed in them.
The Board of Directors didn’t take advantage of Spanish Cove it was the people they hired and trusted to manage POASC for them that did.
Tags: accounting, Exploitation, Regulations, rules, Trust
GRUENLOH & ASSOCIATES, P.C.
MEMORANDUM
PROPERTY OWNERS ASSOCIATION OF SPANISH COVE
TO: Board of Directors
FROM: Wayne Gruenloh, CPA
RE: Personal Credit Card Usage
DATE: December 4, 2009
The purpose of this memo is to explain the tax consequences of personal credit card usage and other employment benefits for employees of the Association. The personal charges that were repaid by the employees will have no tax consequences because there was no revenue or expense recognized as a result. Any charges identified as personal that have not been paid back should be accounted for as income to that employee and reported to the IRS as such. Any personal charges that have not been identified will have no tax consequences because they were not identified.
No taxable income is to be recognized by an employee for an employer-provided vehicle if the vehicle is used 100% for business, if the personal use is too small to account for, or is the employee has a written policy against personal use. Given that the operations manager is on call 24 hours a day, 7 days a week, it is our position that no taxable income should be recognized for a vehicle provided to him. If there was some personal use of the vehicle, it was probably minimal and too small to account for. If the operations manager using the vehicle excessively for personal use, excluding driving to and from work, the personal use percentage should be recognized as income to him and reported to the IRS as such.
If you should have any questions, please feel free to give me a call.
Sincerely,
Wayne Gruenloh, CPA
Tags: CPA, Credit Card, IRS
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