The Working Session of the POASC Board of Directors opened with a statement by Chairman Joan Fletcher regarding the status of the Operations Manager. She said she would entertain no questions, remarks or comments on the subject, due to the possibility of liability through misstatement.
“I called an "Executive Session" meeting on Saturday, July 11, 2009 at 12:30 p.m., for the Board to consider factual information and evidence outlining actions taken by the Manager, which were in contradiction with his contract with POASC. All nine Board members were in attendance.
Relative facts and evidence were presented to the Board, after which each Board member was asked for questions and comments regarding the evidence and how and by whom it was gathered. No rumors or hearsay were allowed to be entered into the discussion, just the facts were considered.
Next, the Board determined the seriousness of the issue and what to do about it. Having come to a reasonable conclusion, a motion of Board action was made, seconded and passed by a vote of no trust or confidence in the Manager.
Monday, July 13, 2009 at 8:a.m., the Chairman met the Manager, advised him he was, as of Monday, July 13, 2009, suspended for thirty days without pay and turn over the keys to the company truck he was using. He was also told that, at the time the Board has no intention, at this time, of renewing his contract which expires December 23, 2009.
This was not an easy task for the Board and was undertaken with care and consideration for the facts.
More information may be made available in the upcoming Update, but at present because of liability concerns, this is the Board’s actions.”
Fletcher and Vice Chairman Sue Huff have been temporarily overseeing operations since the suspension began. She said the situation is “Business as usual”.
A vote to allow site-built homes in Land Harbor will be held after the second reading at the Regular Session on July 23. If the board approves the proposal, it will be sent to the property owners for their approval. The complete proposal was presented on Cove Connections in June and also in the June Update.
The board voted to reinstall the showerheads at the RV Clubhouse. During a recent Special Session, the board voted unanimously to reduce the number of showerheads from three to one in each bathroom. Some board members said they had incorrect information and rushed to vote.
An assessment, at the request of Safety Committee Chairman De Dickey, given by committee member Dick Junkins, showed that the 2008-2009 yearly cost to operate the RV Clubhouse was $8,395, including electricity water and propane. Income from the laundry facilities was $4,336, leaving a net cost to Spanish Cove of $4,059, a small cost to all property owners.
PDM Committee Chairman Jimmy Young said some repairs are needed in the showers and suggested that two showerheads be made operable while the third is being repaired, until all are in good working order and other repairs are made to the shower stalls.
Chairman Fletcher said she has made contact with officials of the Glen Lakes Property Owners Association in regard to their settlement with Baldwin County Sewer Service. The property owners are receiving credits on their sewer bills in the amount of the difference between the previous charge of $32.50 per month and the current charge of $54.50. The increase went into effect in October 2007. Once the sewer company has paid the overcharge, the rate will go back to $32.50. Fletcher said she would like an ad hoc committee to research Spanish Cove contracts for sewer service to see if there could be a similar agreement. Those who are interested in the committee should contact Chairman Fletcher.
The board also voted to repair the John Deere diesel lawn mower transmission at a cost of $2,000. The mower was purchased in 1995 at a cost of $19,000. The board expects to get another five years of use from the much-used equipment.
Although the 2009-2010 Budget estimated Cove insurance would cost approximately $50,000, the bill was actually $33,000. In a related report, Finance Committee Chairman Dale Morsette reported the financial situation is “looking good”. He said the Cove is doing well overall. Although real estate sales are not booming, they seem to be continuing at a modest pace with $1,185 in Building Fees, $900 in Transfer Fees and $2,500 in Buy-In Fees in the past month. In addition $2,492 has come in for Update advertising. $40,000 has been deposited in the Asset Repair and Replacement Fund (ARR).
Activities Committee Chairman Judy Deeter announced an “International Night” to be held on Sept. 24. Area groups such as Cove Alones, Bay Buggies, Lost Bay Riders, Flotilla and others would form teams to provide food with an ethnic theme, including Italian, Greek, Mexican, German and such. Attendees would sample the food from each area for a cosmopolitan selection. Set up your team now and register at the Activities Office to name your cuisine.
The Johnson Beach picnic will be held at 11:30 a.m. Tuesday, Aug. 18. The Activities Committee will provide the chicken. Guests are asked to bring their own beverage and a dish to share. Glass containers are not allowed at the beach. Sign up at the Activities Office so the committee knows how much chicken to order.
PDM Committee Chairman Jimmy Young reported there are several areas that need attention. The maintenance personnel will continue to caulk and paint the outside of the Cove Clubhouse. The RV Clubhouse doors and shower tiles will be repaired. The pier is being checked weekly for loose boards and light posts on the pier are being replaced. He said the committee is pricing concrete tables and grills for the beach. A resident commented that some who are using the pier for fishing are using the railings and benches for cutting bait. It was suggested that an area be provided for the anglers to use.
A property owner asked whether dogs are allowed on the beach and was told they are not. They are also not allowed on the pier.
The Communications Committee meeting has been rescheduled to 4:30 p.m. Wednesday, July 22 in the POASC office meeting room. New members and guests are welcome to attend.
The Rules Committee did not meet in July. The next meeting will be held in August. Date to be announced.
Nominations and Election Committee Chairman Bill Duncan asks property owners to consider running for one of the four seats that will be filled in the March 2010 election.
The next Regular Session of the POASC Board of Directors will be held at 6:30 p.m. Thursday, July 23 in the Cove Clubhouse. The next Working Session will be held at 10 a.m. Thursday, Aug. 13 in the same venue.
Tags: Board, Operations manager, Pier, Showerheads
In my opinion, Mr. Hodge you are absolutely correct. I applaud your insight and judgement as well as those of our present board.
Well, Sandra, one thing I’ve noticed about this new format is that if one uses the “Reply” function too deeply into the post, their response becomes more and more difficult to read. Case in point, Wally Hodge’s last Reply.
As for content, I’ve decided to take Sally’s advice and move in a more forward-looking direction. Life’s too damn short to get wrapped around the axle on something that, in the final analysis, doesn’t amount to much.
I noticed that too Dick – too complicated. I’ll see what I can do.
Sally,
You and I have always been on the same wave-link. Keep on “keepin on” with your good work!!!!. I do hope that a effort to see if the sewer charge is recended to a reasonable monthly rate. We have been “ripped off” at the present rate for too long!!!
Best Wishes,
Jim P.
Jenny: I understand that Joan Fletcher settled with Charlie after consulting with our new lawyer and both sides were happy. I wasnot involved in this and have no idea ifhis defaulting on his contract if he did had any effect on his settlement. Thank God I am out of this mess. Have a happy weekend.
I have avoided commenting on this site because I respect it, and the comments to that point did not seem to make it necessary, or beneficial.
I just want my position clear. The shortest way to do that is to refer to Dick Junkins’ post below. My position corresponds to his completely.
I would lijke to respond to Mr. Danson. When I was appointed Chairman last year we didnot havea Treasuere . only an assistant treasuer, Sue Huff.I ask Charlie to put Sue on as a check signer which he did. Charlie ask me to sign the checks every Friday and told me that Sue could not sign them because she was not available on Fridays when they needed signing. This went on for many months and every week Klifton would give me the checks signed by Charlie with invoices attached and tell me that all the documentation was correct. I have no knowledge of accounting and did not know how to look for any error or illegal charges. Finally Sue e-mailed me and told me that Charlie kept telling her that she could not sign the checks because I insisted on being the only one to sign them He lied to both of us since I did not want to sign checks in addition to my other duties as Chairman and Sue wanted to sign the checks. Sue and I accosted Charlie and I insisted that he have Sue sign the checksfrom then on. When the new board was seated on April 1st BenBonnett was made Treasuer and started signing the checks. I hope this clarifies my position on this matter. I will be happy to respond to e-mails or phone calls if anyone has any further questions. I miss being on the board but with the possibility of Pat having shingles and my having a heart attack, our health is more important than the board. We are enjoying our new home and I look forward to going surf fishing as soon as the weather cools.
Hi Frank, Good to hear from you. I hope you and Pat are o.k. I have one question. If Charlie defaulted on the contract, does he give up the benefits?
Sally: Alabama is an at-will state but only for hourly emloyees. Charlie had a contract with the Cove and when they fired him they have to pay him the settlement agreed on in his contract plus vacation time. He is also eligible for unemplyment. Just thought you wouldlike to know.
I was dismayed to learn this evening that the Board had decided to terminate Charlie Davison. Of course, I am not privy to all of the evidence that the Board was able to consider, but based on what was presented at the recent Board meeting, I believe the evidence was insufficient to support such a decision, and I believe the Board itself has been complicit in the commission of the offenses with which Mr. Davison has been accused.
The record apparently shows that POASC’s Bookkeeper, Kliftin, identified those personal charges made by Mr. Davison. That being the case, the Treasurer, and most likely, the Board Chairman at the time knew of those charges and either tacitly approved of them, chose to ignore them or never took the time to check them out. If Mr. Davison’s “crime” was so severe, why was it allowed to recur and span over a year’s timeframe? Mr. Davison repaid those charges, though an outstanding balance remained when this all became an issue. Could not the Board have notified Mr. Davison that the practice was not to occur in the future, charge him the insignificant interest that may have been lost to the Operating Account, reprimanded him if necessary and gone on?
Apparently not. From my observations, there are other elements at play here – an effort to “save face”, and deflect the Board’s complicity in the matter; to respond to the “lynch mob” mentality expressed by some property owners, to set Mr. Davison up as some sort of example; or possibly to settle old scores (someone in the Operations Manager’s position will, over time, make a few enemies).
There is also the issue of Mr. Davison “borrowing” Cove equipment – sometimes for extended periods of time. That is expressly forbidden by the POASC Operating Procedures. But let’s look at the circumstances. Apparently it was fairly common practice for some people to borrow Cove equipment. In fact, a log was kept, noting equipment that was checked out to certain property owners and, as I understand, even Board Members!
So – Yes, Mr. Davison made some bad decisions. But weighed against all the good decisions he made – and they were many – did this rise to the level of termination for cause? I don’t believe so. I may be in the minority in my opinion, but I have a clear conscience in that opinion. I believe the Board failed to look at this issue dispassionately and consider all the contributing factors.
Mr. Davison’s replacement, when located, hired, trained and given time to acclimate to the complexities of the Operations Manager’s job, may be perfectly suitable and do a very good job. But was all this necessary?
Yes!
Let’s get past this poor Charlie, bad board, who knew what when, etc. Information was obtained by board members. It was discussed. The board has said it lost confidence and trust in the manager. I had lost that a year ago. I was told by an attorney at that time that you can be fired for a good reason, a bad reason or no reason at all, since Alabama is an at-will state. So whether you agree with the board or not, they made a decision, which is their right. We do not need to know all the gory details, although the curiosity of humans desires it. I think we will live without them. Now let’s move on.
You’re absolutely right, but it was something I felt needed to be said.
The die is cast. Time to move forward.
Sally, again I agree with your statements and positions.
And I had not understood your former position to be an hourly one.
Unfortunately, neither Frank nor Sally is entirely correct. Maybe Joan will release the terms at some point, however, the terms were fair to both parties and were at the direction of our new attorney.
I was not an hourly employee, but I did not have a contract. I was paid per month for the Update. Joan is the only one who can give details and I would not think anyone needs to know them. As long as the board and the employee are satisfied with the terms, that’s all that is necessary.
Sally, I agree with your statement that we have to move on. I also agree with the Board having the right to fire any employee at any time for any reason, or even no reason. I feel the Cove has suffered a loss. When you look back at what Charlie accomplished, or let us say at the changes in The Cove during his time as manager you see a lot of good. Our appearance is many times better than it was even before Ivan, our security is better, our yard debris is better, our entry control (the fobs) is far superior to what we had. I can go on and on, but what it comes down to is we have a lot to thank charlie for. I can understand the upset with what he did, and in my opinion it shows some very poor use of judgement to say the least, but I believe he did a lot for us. I agree completely with Dick regarding Board copability. Some have said the reason that employees did not come forth long ago was a lack of trust in the Board. Whose fault is this, not Charlie’s. The Board elects a Treasurer who by our rules is responsible to protect the assets of the Corporation. That responsibility includes making sure a bill should be paid when signing the paying check. For some reason, during the last fiscal year, the Treasurer was never approved by the board to be an authorized signature on the account, nor was she ever added to the banks signer list. It is my understanding that the “Chair” signed checks for the Board uring that period. We have never heard why from him. I am curious what the reason was. I believe strongly that while Charlie was guilty of using poor judgement in making use of the credit cards as he did, the person signing the checks used equally poor judgement in not reviewing the items being paid more carefully. The Board should have been aware of the 2 Iphones that have just been discovered the 1st time it was necessary to pay a bill, for example. The payment of bills not issued to POASC should have been just as obvious. Our Accountants are to blame. It has been reported that a member of their staff indicated use of the credit card was ok if repaid. This was faulty advice, however the blame goes beyond that. Why was the money due POASC not put in a receivable account. Would this not have been proper treatment. Why didn’t the accountants since they knew this was happening not reviewing to make sure the money was repaid? I know, it will be said they were not being paid to do this check. Why not, could it be that the Board was to damn “thrifty” to want to spend a few dollars to protect the assets of the corporation? This was not Charlie’s fault, it is the Boards. Charlie, like all to many others took advantage of a vacuum. He knew no one would ask, and took advantage, THAT WAS WRONG. But, think for a second, how many if they knew the IRS would not check their tax returns would not take advantage of that situation. I think blame should be placed where it belongs on all 3 parties I have mentioned. Lets learn from the mistakes that have been made. We have to close the “barn doors”. Closing Credit Card accounts are not the door that needs to be closed. Our internal controls must be improved.
Dave, what about trust? An employee is paid to do a good job, to act professionally and to handle the assets of a company with integrity. That comes from within.
Sandra, you hit the nail on the head. Trust. I think a lot of us trusted the manager because some things did get done and he told you what you wanted to hear. There have been many safeguards applied in the finance department over the years. Unfortunately you can’t expect to cover them all. You expect employees to use good judgment. When they don’t, it’s adios.
Sally, I agree with you completely on the matter of trust, I am disappointed in Charlie’s abuse of the trust he had. I do not agree with you regarding safeguards being implimented sufficiently. If what had been going on had not been reported by the person who did the transactions would never have been found during our “audit”. In fact I am very sure that the accountants would have had no idea that money was still owed. What we have are not the kinds of safeguards I think we need.
Sandra, I thought my comments indicated that I felt Charlie used very poor judgement and was wrong doing what he did. I understand your trust comment, too. It is my feeling that it is necessary for the Board to also clean up their act. Through the years various Boards have put not spending of a few dollars ahead of protecting themselves, and all residents, from the gaps in our internal controls that permit things like improper and unauthorized use of a credit card. Our Board, is, and always has been, madfe up of well meaning hard working members. Few if any have had experience or training in protecting our money (assets). Frank’s comment is an example of what lack of experience in this area leads to. He meant no wrong, I am sure. During the past 9 years there have been two occurances of wrong acts in the office. One was outright theft of just under $20,000 the other misuse of a company credit card and improper payment of personal bills. During this time there have been several proposals made to improve the quality of our internal controls, and to decrease the likeliness of a person even trying to misappropriare funds. These proposals, some of which did not cost any money, have all been turned down. It is my belief that both the Board and Finance Committees did not understand the exposure we had to these things, and to a certain extent may have been misled by our accountants. Ben Bonnett has on several occassions spoken for the need of continuity (his words) and even pursuaded the Board to have a professional in the office quarterly. If I understand what he originally proposed is someone who would both assist our bookkeeper in the preparation of accurate reports and also in affect expand the review of our records. In my opinion this hope was a complete failure. He and Dale also interviewed a second accountant to be a kind of financial guru (my words) and provide continuity. This proposal was turned down, because “it was not necessary” (Translation, it cost money) During my tenure as Treasurer one of the things presented to the Board as part of the additional audit we has performed with the Karen Black affair was a series of reccomendations to improve our internal controls concerning cash receipt handling and the review of an excellent report the Tops System provides. In 2003 I requested that these reccommendations be included in our operating procedures. The Finance Committee did not, or would not, recommend that to the Board. These items came from a professional and were part of what we paid form, however the Board member chair of the Finance Committee felt it was not needed to put them in our procedures. To me, it is interesting today, that the Operations Manager at the time indicated that it was not necessary either because he had implemented them all and they were being done. It seems to me, that one of the recommendations, reviewing the general ledger trial balance detail, would have revealed both the use of the credit card and payment of non POASC bills. This is why I feel the Board has responsibility in what occurred. Please notice I have not said blame, but resonsibility, the blame falls entirely on the person who took advantage of the weaknesses.
My recollection of our meeting at Wayne’s office was that you thought the idea was a good one and you asked why I hadn’t suggested it “when I was Asst. Treasurer”?
Ben, your recollection is mostly correct, I think. I was not on the Board at the time you discussed this matter with Wayne. You and I did have a conversation about the thoughts you had, but it was riding in a car, I think headed for Sushi. I did and obviously still do feel that the broad concept is a good one, however I am completely opposed to kind of relationship where a person participating in the audit of our records is in affect auditing some of their own work. This is not an outside independent accountant doing the work. You will never be able to convince me that the audit report would have contained any report to the Board that the Operations Manager was in affect borrowing money from his employeer interest free and without their knowledge. I want an audit that will provide this kind of information to the Board.
I introduced the idea in Wayne’s office, in your presence. Long before we got interested in Sushi.
Ben, does it really make any difference as to when and where the discussion was held. The important thing, it seems to me, is that we both agree that in some form it is a good idea.
Materiality
Renaming an wrongful act does not change the substantive matter. If someone steals it is theft. Naming it an error in judgement doesn’t change the nature of the act. In my estimation all wrongful acts are errors in judgement. Some errors in judgement, picking the wrong paint color for the front porch are not illegal. Some are, such as Mr. Davison’s use of our money without our permission. Did he sit at his desk and consider the act and decide it was an appropriate act? If so he did indeed make an error in judgement and decided on a course of theft. Money stolen for just a short time is still stolen money even if it is repaid. The error in judgement in this matter casts doubts on his ability to make judgments and his termination is proper.
Is there any additional info on the Glen Lakes settlement with BCSS? Relief from a $54.50/month sewer bill would be great!!! As a weekender, the BCSS is my most expensive bill each month (including POASC dues)!! I’m hoping for good news here!!
The reversal of the number of showers in the RV Clubhouse ruling is also a welcomed surprise. Kudos to the Board for approaching a previous decision with an open mind.
We don’t expect any answers on the BCSS question for some time. Lots of research involved in that. I’m sure the Chairman will be moving forward on it soon. Hang in there!
Sally: I’d like to add my thanks for another straightforward and comprehensive report.
I know there is a great deal of interest in the facts and circumstances behind the actions taken with regard to Charlie Davison. Folks on this site are conspicuously silent about it, likely in deference to the Board’s wishes and the fact that the issues are not yet settled, but also I hope out of respect for Mr. Davison’s reputation and feelings. Until all the attendant issues are settled, I believe it is inappropriate to publicly air the rumors, innuendo, accusations and loose “facts” that seem to be freely circulating elsewhere.
I congratulate you as Editor and those who post here for the polite restraint that has been demonstrated. I’m convinced that all appropriate information will be revealed in good time.
I’m tickled pink with the showerheads. Thank all the Board for the good work.
Sally, thanks so much for this post. Each month you keep us ‘working gals’ up to date with the latest meeting and other information and really appreciate it.
Thanks to Joan and the rest of the Board for listening to resident complaints and requests.
Sally, good report. I also want to Thank the Board on the restoration of the showerheads in the RV Clubhouse.