AGM 29 December 2014 - A short report and some comments

The following is based on my notes and recollections so it is not completely accurate.

There were about 120 owners present with about 50 proxies, about 40 in the favour of the Chairman, Brian Sears. So effectively, the Chairman controlled about 25% of the votes.         

The main discussion issue, initiated by Max Diethelm (E18), was the finances of the HOA. Members were unhappy that the budget had been over spent (about R500,000); that money was spent inappropriately in some cases, and that the income from the one time one year levy payment from new owners was not earmarked for infrastructure maintenance as was intended. 

The long and the short of it was that not enough money was collected to both run the Islands and build up reserves for infrastructure maintenance.

Owners voted for a 15% increase in the levy from 1 February 2015 to fund a infrastructure maintenance fund. This would run for period of five years. The 15% increase would be based on each homeowner’s levy and shown as a separate amount on each invoice. This would be called and “additional levy”.

From next year's budget, the funds collected from the one time, one year levy payment from new owners as well as the interest earned on the money in the fund would be added to this fund. It could be not be added immediately as the following year's budget has already been drawn up with this money already planned to be spent elsewhere.

I think the benefit of this long discussion on the finances was the homeowners making a point that the trustees should exercise closer control on the expenditures. We owe Max Diethlem a vote of thanks for his widely circulated detailed analysis of the finances, which must have taken many hours, as this was the catalyst for the discussion.     

The plan to build houses in the Parkland was not discussed as it was not on the agenda, aside from a reference by the chairman that owners were not in favor of this. He defended the decision to spend R108,000 on the plan saying it was necessary to put something on the table for the homeowners to discuss. He said that in hindsight the decision could be criticized. In an attempt to put a positive spin on this, the chairman said the plan produced could be used as a starting point for the upgrading of the Parkland. He then called for volunteers to serve on a committee to discuss ways of implementing the upgrading. About four or five volunteers were selected.

Various homeowners in their questions made negative comments about this expenditure, with some references to building homes in the remediated contamination area. This was not challenged by either the trustees or Chris Mulder who was sitting in the audience.

The issue of protecting the Parkland from future commercial or residential development was raised. A special AGM will be called in the middle of the year where a vote will be taken to present to homeowners an amendment to the Constitution that will require a two thirds majority of homeowner’s agreement before commercial or residential development will be allowed in the Parkland. There was discussion at making this a 90% majority but it appears that that this was not passed. It was a bit confusing as to what actually was passed.

I think that this is pretty much a moot point as it is now back out in the open that the whole Parkland is a remediated contamination area. I cannot see future trustees having the appetite for proposing that the Homeowners Association start digging in the Parkland. This, of course, would disturb the contamination which has been buried under “clean” soil as part of the remediation plan drawn up by the consultants, Arcus Gibb, and executed by the Thesen Islands Development Company.  

There were 7 members standing for election is trustees. Here is a rundown of who they were and their backgrounds from my notes.

 Mike Barber - elected

Renovating a house on Leeward Island. He retired in 2009 from Franki, geotechnical contractors. With an engineering background, he served for two years on the infrastructure committee. He is lived on Thesen Islands since 2012. He was not present at the meeting.  

Bill Cooper - elected

Retired chemical engineer with an MBA. Been living on Thesen Islands for 10 years. Also on Leeward Island. Judging from the questions he asked, he has a good grip on numbers.

Lester Day - elected

An accountant by profession, he was previously co-opted onto the Board of Trustees. Worked for Barloworld Caterpillar Division. Also worked for big Caterpillar dealer in Amsterdam.

Johan Jacobs - not elected

Worked for 17 years for SAP software and later as an independent consultant. Now living on Thesen Islands permanently.

Marielle Renssen - not elected

Writer and editor. Involved in the Blue Flag program. The environment is her passion.

Brian Sears - reelected

Trustee standing for reelection

Hendri van der Merwe - reelected

Trustee standing for reelection

I think that newly elected Trustees will have a positive effect on the running of Thesen Islands. Overall, I think we have a strong group of Trustees to take Thesen Islands forward.  

The meeting was conducted is a positive atmosphere. Everyone who wanted to speak was given time to do so. Questions that were asked were mostly answered to the satisfaction of the questioner. The Chairman deserves credit for running the meeting well and keeping it moving.  It ran for about 3 hours.

I think that the majority of owners felt l that it was a positive and worthwhile AGM, although with the removal of the aborted parkland development from the agenda, some hard questions were not asked.