SIXTEENTH ANNUAL GENERAL MEETING

NEIGHBORHOOD PROPERTY OWNERS’ ASSOCIATION

SATURDAY, MAY 3, 2008

The sixteenth Annual General Membership Meeting of the NPOA and its Congress of Delegates was held at the Fountain Hills Community Center on Saturday, May 3, 2008.  A continental breakfast was held before the meeting for Delegates, Board Members and NCOA Members.  Twenty delegates were in attendance. A quorum of delegates having been established, President Nancy Henry called the meeting to order at 9:05 A.M.

Nancy welcomed everyone and introduced guest speaker George Kasnoff of Kasnoff Investments.      

Mr. Kasnoff said he was pleased to provide an update of the Downtown Project.  He wanted to share the “facts” directly vs. rumors that everyone may have heard.  He shared that the Town Manager and staff are now fully supportive of the project.  They are in agreement on who is paying for what and who is doing what.  He assured everyone that tax payers are not being asked to pay a dime.  The Town will contribute by allowing the contractor to pave over an existing easement, which the Town will continue to own.  The Town will also provide the same type of sidewalk on the south side of the street that exists on the north side.  The developer will pay for street improvements, buildings, streetscapes and landscapes.  The project is 457,000 square feet.  This includes a 12 screen, state of the art theatre with an accessible lobby (can utilize videos, etc. without a movie ticket), for which a 20 year lease has been signed.   The theatre will be 45,000 square feet.  The ground level throughout the project will be restaurants and retail.  Lofts ($400.00 per sq. ft.) and corporate offices are planned for the second story.  The new Waters Edge Restaurant will be on the ground floor, with a Jazz club above it.  The center will house a courtyard the size of a football field.  The project will “park itself”, some of which will be underground.  The project will have a “Kierlands” feel.  The project will be phased, starting with the movie theatre.  Town height restrictions will be met.  With that, Mr. Kasnoff opened the floor for questions:

Q:  Ron Kollitz asked if there are plans to create a walkway across Saguaro to the park.

A:  No there are no plans for that.

Q:  Judy Dragiewicz asked if because there is now plans for a footpath either side of the theatre, is the building moved further out into the parking area?      

A:  No, parking was not affected.  The theatre was reduced from its original 60,000 sq. ft. to 45,000 sq. ft. to accommodate the modifications.

Q:  Kyle King asked if the underground parking for the fourth phase would be constructed now, or will it wait until construction of phase 4?

A:  It will wait until phase 4. 

Q:  Is there more than one level of underground parking?

A:  No, there is just one level due to the difficulty in digging in Fountain Hills.

Q:  Bob Deppe asked about the climate with the Town.

A:  Mr. Kasnoff explained that negotiations with the Town were very difficult.  When the then Town Manager left, the Mayor, Wally Nichols stepped in and negotiations took off.  What was not accomplished in six months, now took only four one hour meetings!  Mr. Kasnoff shared that Chamber of Commerce, led by Frank Ferrara, has been instrumental in supporting this project. 

Q:  Angela Mulligano asked if anyone was addressing the considerable amount of empty commercial property throughout town. 

A:  Mr. Kasnoff said that really is not an issue.  You cannot develop a Town from the outskirts in.  You must start with a town center and grow from there.  As a business owner (Waters Edge Restaurant), you have to understand Fountain Hills to be profitable.  Last summer, they closed for lunch.  This year, they are modifying menus and adding affordable take out options.  They are asking “what can we do for the residents that are here supporting us year-round”.  

Q:  Dick Weeber asked how much time it will take to build each phase. 

A:  Phase 1 will be one year.  Mr. Kasnoff explained the process for financing such a project.  They now have an equity partner, and the financing is almost in place.  This caused a delay. 

Q:  Gail Pape said she thinks the plans for downtown are fabulous and long overdue.  Other businesses have a hodgepodge appearance.  Will anything be done to improve that?

A:  Not within this project.  The zoning for this project was changed to TCCD.  The other side of the street should re-zone their side, which allows them to start improving it.  Typically, surrounding businesses will want to make their business just as attractive. 

Q:  Ron Kollitz asked about the entrance to the theatre and the impact on surrounding businesses. 

A:  Mr. Kasnoff pointed out all the parking areas for the movie theatre.  At Desert Ridge, for example, you park in the middle and walk through the retail area to reach the theatre. 

Mr. Kasnoff shared that they completed a comprehensive independent study.  The results were 100% positive and show that Fountain Hills is under served.    

Q:  Mo Smith asked if it was true that theatres were rated by the number of screens by the movie companies.

A:  Mr. Kasnoff claried that studies show it takes a minimum of 12 screens to be profitable.  Also, movie companies distribute first rate files to theatres based on size. 

Nancy Henry thanked Mr. Kasnoff for his informative talk. 

PRESIDENTS REPORT –NANCY HENRY

Nancy introduced the Board of Directors and thanked them for their hard work.  They are herself; Vice President Frank d’Marco, Treasurer Jack Henry, Jim Brediger, Ron Kollitz, Bill Pape, and Bob Deppe.  Chairman of the Committee of Architecture Russ Boocock and Andy Aziz are not able to be here.   Nancy also thanked Tammy Chauncey the Office Manager, Vida Miran the Assistant Office Manager, Al Hutchison, CPA; Bob Tone, architect; Linda Benkowski, bookkeeper; Attorney Jeff Kaufman; and Mike Scharnow, our delegate and representative at the Times, whom she sincerely appreciates for all the articles and support of the NPOA.   

Nancy said 2007 was a very uneventful year.  The office ran smoothly and the NCOA continued to generate our operating funds.  The adopt-a-street program continued.  In fact, Nancy said the Town installed a sidewalk in our adopted area which has been very helpful.  Anyone is welcome to help pick up trash.  Please give Tammy a call.  Nancy said the Communications Committee (herself) did not do a general mailing this year resulting in fewer attendees.  We mail a postcard to all members every other year to save on funds. 

MINUTES

Nancy Henry asked if there were changes or corrections to the minutes from the 2007 AGM.  A motion was made to accept the minutes.  Judy Farrington seconded.  All in favor.  None opposed.  The 2007 AGM Minutes are duly filed. 

TREASURER’S REPORT - JACK HENRY

Jack Henry displayed the “Balance Sheets” that everyone had in their packets.  Member equity decreased $29,500 from 2006 to 2007.  That is a 10.4% reduction.  Of the $29,500 reduction, $21,600 was a reduction in our compliance account which is money we hold until a project is complete.  Revenue in 2007 was $46,500 vs. $62,800 in 2006, a 26% reduction due to the reduction in permit income.    Expenses were $6,000 less in 2007 than 2006.  As permits decrease, so do the associated expenses.  There was a total operating loss of $7,699 in 2007.  This number would have been closer to $16,000 if not for the $8,300 of income from our CDs.    Our budget for 2008 expects conditions to continue.  We estimate a $10,700 loss in 2008.  We have seen a few bright spots, and are currently tracking at a $10,000 loss.  This is a slight improvement.  Jack opened the floor for questions. 

Q:  Why did the meeting expense double in 2007 from 2006?

A:  We sent a mailing to all members in 2007.  

Q:  Tom Johnston asked what measures were being taken in light of the fact that we had a deficit in 2007 and project that trend to continue? 

A:  Jack explained that the board went through an exercise in 2007 to come up with financial stabilization ideas.  Many ideas were considered.  For one, we increased permit fees and filled a few holes where we did not previously charge for permits.  The Treasurer’s report next year will show how the price increase has impacted our bottom line.  So far, we are showing a 50% increase for permits.  Another idea was to expand the NPOA into new development and we are in discussions with the Ellman Group.  We considered charging transfer fees, asking for donations, selling NCOA architectural services, recruiting new plats, and collecting a small annual fee.  After considering each idea, we found all ideas to be fraught with issues except increasing permit fees and talking with Ellman Group. 

Mo Smith commented that, while it is nice to operate in the black, a loss of $10,000 per year is minimal when we have a quarter of a million.  Bill asked if $125 K of that is part of the compliance fund.  Jack said no, the compliance is separate. 

Mo Smith Moved the Treasurers Report be accepted.  Tom Johnston seconded.  All in favor.  None opposed.  The motion carried.

NCOA REPORT – BOB DEPPE

Bob Deppe presented the NCOA report in Russ Boococks absence.  Bob shared that the number of permits significantly decreased.  For example, 188 permits were issued in 2005 by the NCOA and only 102 in 2007.  New homes (greatest income producers) are the key here, dropping from 56 in 2005 down to 8 in 2007.  We received only 2 new home applications to date in 2008, projecting out be 6 or 7 this year.  Additions dropped from 47 or 48 in recent years down to 38 in 2007.  Miscellaneous items like walls and re-paints dropped from 88 to 56 in 2007.  The Committee continued to work hard to resolve violations in 2007.  Things like clutter in yards, re-paints, and walls built without NCOA approval were resolved.  The Committee refined some processes in 2007.  The fee schedule was changed and the application paperwork streamlined to be simpler, more comprehensive and shorter.  Guidelines were revised.  In the past, landscape guidelines called for the same amount of landscape no matter the size of the yard.  This was changed to be variable based upon the size of the yard.  Guidelines were clarified for walls used as negative edges.  Those walls must match surrounding walls and the home in color.  Mailbox structures must match the home in design.  The violations process was amended to allow the committee to expedite the process for repeat offenders.  Bob introduced the members of the Committee.  They are himself, Angela Muligano, Walter “Mac” McCoy, Saeid Miran, Russ Boocock and Nancy Henry. 

Q:  Mo Smith asked who to go to if neighbors are parking on the lawn.

A:  A complaint to Code Enforcement would be your first stop as they can address the issue expeditiously. 

Angela Muligano moved the NCOA Report be accepted.  Bill Pape seconded.  All in favor.  None opposed.  The motion carried.  

AWARDS PRESENTATION

Nancy Henry shared that, per the By-Laws, the Board of Directors can consist of as few as 3 members and as many as 9.  We have been fortunate to have a full 9 member board in recent years.  This year, three of our Board Members have decided not to seek re-election.  Bill Pape has been a member of the board since 2001.  He served as Vice President and Chairman of the Nominating Committee.  Ron Kollitz, who is serving on the Nominating Committee this year, also helped the board by conducting a financial study and assisting with the adopt-a-street program.  Nancy thanked both Bill and Ron for their contributions and service and presented them with cards.  Jim Brediger has served on the board since 1999.  He was President and Vice President.  Jim was on the Legal Committee.  Jim has been our “go-to” man for history and regulations.  Jim has always helped us understand legal documents.  He has been the calm voice of reason at board meetings, and will be missed.  Nancy presented Jim with a plaque and gift of appreciation.

NOMINATING COMMITTEE – RON KOLLITZ

Ron Kollitz said he believes the NPOA offers a good value to the community.  It is important we keep the ideals this community was built upon alive.  He has enjoyed his time on the board and encouraged everyone to volunteer.  There is only 1 meeting per month, some lively conversations and e-mails!  Board meetings are held the 2^nd Wednesday of each month at 5:00 and usually last about 1 hour.  Ron directed everyone to look at the bios for the current board members seeking re-election.  With that, Ron opened the floor to nominations.

Jim Brediger nominated Kyle King.  Mr. King accepted the nomination.  He and his wife Billie moved to Fountain Hills four years ago.  They owner built their retirement home here.  Prior to that, he lived in the same home in south Tempe for 42 years.  He said when they were handing out “wander lust”, he didn’t receive any!   He has always admired Fountain Hills.  Mr. King was an electric systems designer in the late 60’s and early 70’s.  He recalled that he wrote the SRP work order for the MCO Sales Office at Saguaro and Shea!   He has always loved Fountain Hills and looks forward to serving this community. 

As no more new nominations were forthcoming, Bill Pape moved we accept all candidates by acclamation.  Jack Henry seconded.  All in favor.  None opposed.  The motion carried.   Andy Aziz, Russ Boocock, Bob Deppe, Frank d’Marco, Jack Henry, Nancy Henry and Kyle King were elected to be Directors of the Board for 2008-2009. 

Bill Pape moved the meeting adjourn.  Mo Smith seconded.  AIF.  Motion carried. 

The meeting adjourned at 10:15 AM.

Respectfully submitted,

Tammy Chauncey, Secretary NPOA