Work continues to complete change to covenants Print E-mail

From the POA Board
By Rich Andersen

The affairs of the Big Canoe Property Owners Association (POA) are controlled by four governance documents:
Rich Andersen
Rich Andersen

  • Georgia law for non-profit corporations (O.C.G.A. 14 – 3 -801),
  • Articles of Incorporation,
  • General Declaration of Covenants and Restrictions (covenants),
  • By-laws.
The Articles of Incorporation establish the POA as a non-profit corporation; the covenants describe the property, the types of members, the mechanism for budgeting and setting assessments, architectural control and all the other things necessary to run the POA; and the By-laws may be thought of as a guideline for implementing the covenants. This article deals with the covenants.

Work on the documents to complete the transition in governance that occurred in January, 2005 is continuing. All of the changes associated with the transition were contained in Article X, an amendment to the covenants of 1988. Because of constraints on time and budget, some conflicts in language between other articles and Article X were left in place.

For example, the developer gave up his supermajority vote in Article X, but Article III, Section 2 still describes the supermajority vote. Likewise, many things required a three-fourths majority vote to be passed while Article X states that “at least fifty percent” is a sufficient vote for passage for the same items. Removing these conflicts was one of the major goals of the Covenants Review Task Force chaired by Jim Owens. Dave Harper, Rod Lee, Tom Rehg, Billie Ann Rice, Rich Andersen, and Bill Watson of the Greenwood Corp. served on the committee. Terry Bacigalupo was board liaison and George Nowack is the board attorney.

In addition to removing conflicts, the committee was to put all elements of the covenants into a single document and to modernize it where appropriate. This effort followed review and amending of the By-laws to make them consistent with Article X of the covenants. Amendments to the 2004 By-laws were adopted by the Board in October, 2006. Approval of amendments to the covenants will require a vote of the property owners.

Covenant Task force
The Task Force began its work in May of 2007. After multiple work sessions, conferences with attorney Nowack and reports to the Board, the task force made its recommendations for changes in the covenants to the board in April, 2009. The Board reviewed these recommendations with Jim Owens in May and made some modifications suggested by Board members.

Before the Board can present proposed amendments to owners there must be agreement on the amendments with the developer for two reasons:
  • First, section 1 of Article X states: “For as long as there is a Type D Member, no amendment to this article shall be effective without the Developer’s prior written consent.”
  • In addition, in the spirit of Article 3.1 of the By-laws, which states that Big Canoe is a joint venture, we would want to be in agreement.
Beginning in July, 2009 a sub-committee of the Board composed of John Seferian, Terry Bacigalupo and Rich Andersen met with Bill Byrne and Anita Michele of the Big Canoe Company and Bill Watson, vice-president and general counsel of the Greenwood Corp. to go over the proposed changes in detail.

We had open, frank and constructive discussions that resulted in agreement on the proposed changes to the covenants in November. The full Board concurred in December. At this point the draft of the covenants with proposed changes was ready to be turned over to Nowack to be put into final form.

To aid Nowack’s understanding of the intent of the proposed changes, Terry Bacigalupo, Bob Crouch and Rich Andersen met with him before Christmas. In our discussion with him at that time and again in the Board’s planning session on January 13, 2010, we learned that he had reservations about specific aspects of the proposed language in some sections.

Another meeting with Nowack is scheduled during the time this article is in press. We expect that changes he may recommend will fall within the agreement reached with the developer group, but a meeting with them will be required to confirm that after they have reviewed Nowack’s recommendations.

Once the draft of proposed changes to the covenants is in final form, it will be put on the POA’s website and hard copies will be available at the Canoe Lodge. A comparison of proposed language to existing language will also be available. A comprehensive information program will be undertaken by the Board with assistance from the task force to make every effort to inform property owners of the proposed changes. This will include a presentation at the April Town Hall, meeting with Big Canoe groups by request, neighborhood groups by request and additional information in Smoke Signals.

Proposed for consideration
Examples of items that will be proposed follow:
  • Adoption of county standards for the base and paving of roads
  • Preparation of Annual Financial Plan described in the covenants
  • Requirement that a Capital Reserve Fund be established
  • Debt is capped at two times the annual assessment revenue
  • Capital projects over $1million (other than dams, roads and bridges) require owner approval;
  • Developer gains votes on Type “D” property on which he pays assessments, but those votes cannot be cast in elections for elected directors.
Remember, these are proposed changes! They cannot go into effect unless you, the property owners, approve them. A vote on approving these changes will be announced after the informational program has been completed.

 
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