Playa Encanto Neighborhood Civil Asociation, A.C. 

General Meeting

November 12, 2011

Erekson Residence, MZ. 37 Lote 06 89 Mantarrayas

President George Stavros called the meeting to order at 10:20 a.m.  Members were counted with a Quorum in Attendance.

The PENCA By Laws, officially accepted and registered in Mexico in 1993, are the Legal Structure for Playa Encanto Neighborhood Civil Asociation, A.C. which was officially incorporated in September of 1992.   Article 5, No. 2 of the By Laws states the association’s corporate purpose is:  to create, promote and support the delivery and maintenance of public works in the area of trash collection, patrolling and public security, roads and walkways, sidewalks, rain drainage and sewers as well as electric power and street lighting for the aforementioned subdivision.   Article 9, states that the duties of the Asociation’s members are as follows, A) To comply with the current bylaws, B) pay the dues which will be set by the Board of Directors with the approval of the General Members Meeting in order to accomplish the corporate purpose of the association.  Article 12, The General Members Meeting is the governing body of the association and its membership is made up of all the members in good standing who have paid their association dues and have not lost their standing as members.                                                                                                                                                                                                                                  

Board members present and approved were:  President, George Stavros; Treasurer and Utility Project Treasurer, Cris Ciasca;  Secretary, Sandra Bonebright; Vocals: Terry Creech, Dave Feltman and Neil Labarge; Utility Project Director, Jack Hall;  Architectural Committee Chairman Brent Erekson.

Margie Poturalski and Phil Canale were designated and approved as official vote counters.

A report of Board Activities was presented by George Stavros:  1. This summer the Board worked to expediently resolve the Utility issues presented at the May 14, 2011 general meeting without legal cost to the association.  2.  The Board implemented an inventory of Beach properties using photographs to determine, define and provide a count of: 1. Lots; 2. Single homes; 3. Single homes with attachments; 4. Multi Plex Units, (Condos).  This was not a financial audit or utility count.  This inventory was conducted by Dave Feltman, Board Vocal.  3.  In order to meet the Budget at year end, the Board implemented cost containment measures to lower our expenses.  4.  The Board had the official, registered September 1, 1992, Mexican By Laws translated from the original Spanish to English by a certified translator.  This was done for clarification and to insure that both the original English transcription and Mexican transcription were the same.  Neil Labarge, an Attorney and Board Vocal, facilitated this process.  The certified translated copy is posted on the Website.  5.  An “Open Meeting” was held to give non-members opportunity voice and discuss their concerns with the Board.  No one, except two members in Good Standing attended.

President Stavros reported that the Board has endured many hostilities, personal attacks, indignities and questions about their integrity in the last six months.   Many of you have heard of or received copies of these unfounded accusations and needless attacks.  How beneficial it would have been if only just a small portion of the effort and time spent on these negative actions, as well as the hours wasted in dealing with them, would have been used toward the Good of the Beach.  

Minutes of the May 14, 2011 meeting were approved as written by a motion made by Mike Hill and seconded by Phil Canale.

Treasurer Report

Balance Sheets and Profit and Loss Statements through October 31, 2011 for both PENCA and the Utility Project were distributed. 

 Treasurer, Cris Ciasca reported that as of October 31, 2011 current assets equal $53,197.32, with current liabilities equaling $4,500.  Since January, $196,449.73 has been collected in HOA fees and miscellaneous income, with expenditures of $166,604.30.  Monthly expenses average $13,500-$15,000 per month.  Extra expenses this year have been a new garbage truck, $5,000.00; contract guards, $5,500.00; and an Articles translation fee, $600.00.    

Utility Project Treasurer, Cris Ciasca reported that from January 2007 through October 31ber 2011, $3,476,639.34 has been collected; with total expenses of $3,307,199.95, and current assets of $169,439.39.  A portion of these funds will pay for the future placement of paid pedestals.  To receive a meter and electricity, Service Frees must be paid with a current tax receipt and a letter from the Halls with the street address; stating that all fees are paid and one is a Member in Good Standing.  The electrical funds are separate and not co-mingled with PENCA funds.

The Board voted to conduct a review of all PENCA and Utility Financials.  Steve Loney, a CPA and member in Good Standing, and Paul Hughes, a retired Federal Bank Examiner and member in good standing; conducted the review with Treasurer, Cris Ciasca and Isabel Greey.  Mr. Loney and Mr. Hughes reported that the books and accounting skills were some of the most organized and accurate that they’ve ever seen.  The quality of bookkeeping for an HOA volunteer organization is incredible.  If the membership has specific questions and concerns, please contact Cris, Mr. Hughes or Mr. Loney.   It was determined that an audit would be an unnecessary expense; as both were comfortable with the quality of work being done.   The Treasurer’s report was approved and accepted with a motion by Gary Bonebright, seconded by Jack Garrity.

Dave Feltman reported that considerable time was spent conducting the Beach inventory and it was difficult to determine and define properties accurately in preparation for the Board’s review of the Service Structure Fees.  After reviewing the Beach Inventory and Service Fee Structure, the Board has concluded that the Service Fee Structure and billing should remain the same.

2012 Budget

Treasurer, Cris Ciasca, proposed that the 2012 Budget remain the same as the 2011 Budget; with Service Fees remaining at $800.00 per Unit and $125.00 per lot. The projection for 2012 is approximately the same as 2011.  With a motion made by Brent Erekson, seconded by Grant Mackenzie and a vote by the members the 2012 Budget was accepted. 

Nomination and Election of Officers

Jack Hall volunteered and was elected President with 81 votes and will immediately fill this position.  Merrill-Smith Lonely volunteered and was elected to fill the position as Secretary.  Nick Appleton, Tom Giljum, Debra Jackly, and Matt Owens were nominated for two Vocal positions.  Nick Appleton was elected to finish the two year term of Margie Poturalski.  Matt Owens was elected fill the position of vocal, Neil Labarge.  With a motion by Carol Johnson, seconded by Gary Bonebright, and approval of the membership, Paul Hughes, volunteered and accepted the position as Financial Supervising Officer.

  With a motion by Mike Hill, seconded by Carol Johnson, the Mexican Corporation Meeting was adjourned at 11:30 a.m.

Sandra Bonebright, Secretary

Update on Electricity

Jack Hall, Utility Project Manager, reported that the road work and work on switch boxes has been moving slowly but continues.  The pedestals were done at extra cost without charging the association.  Pedestals will not be installed on vacant lots until building begins.  CFE requirements change and have been and will continue to be met.  Summer electric rates are much lower and higher winter rates should be expected.

Roads 

Cristian Tanori reported that broken equipment has been an ongoing problem; but they are working to improve the roads.  LaJolla and Bella Vita grade the main road occasionally. They pay $600 for each grading, and we pay $525weekly to water the roads.

Security and Trash

Cristian announced that trash was now being collected twice a week again, on Friday and Monday.  Garbage can and bags are needed.  Cans should be covered and placed for pickup the on the day of collection.  The cage is also available at the gate for drop off.  Renters should be informed about trash pickup by management.

Architectural Committee Report

Brent Erekson, Architectural Committee Chairman, gave a short history beginning when he chaired a Committee in 1999 to develop the Associations’ CC&Rs; he raised the money; at no cost to the Association, and worked until 2003 to get the CC&Rs published and adopted; which are published on the website.  Since 2003, building without a permit is not allowed.  Height restrictions, setbacks and ext. are critical for the good of the community.   Brent listed those who have and are serving as architectural committee members, and stated that another volunteer would be welcome.  Because this is a volunteer position, there is no term limit.  Qualified Contractors and experienced builders with an FM3 are needed for his position.  Phil Canale volunteered and will serve on the committee.  The Board will take term limits for the Architectural Committee under consideration. 

Old Business

In a website pole, 92% were against the proposition of a Tel Cel Tower being erected in Playa Encanto. Because of the overwhelming negative reaction the issue was tabled and not brought up for vote at the last meeting by President Behrens.

Bob Behrens’ letter of resignation is available for anyone to read.

Terry Creech was thanked for his time and effort in encouraging the payment of and collecting Service Fees.   We, as an HOA, should all work to encourage our neighbors to pay their annual service fees.  Total participation is necessary in order to continue to provide services such as security, trash pick-up and road maintenance.  Terry has volunteered to train to take over the duties of treasurer.  Marv Sexton and Gary Throgmorton, both thanked Terry for his monthly financial web report.

New Business

The Board is a group of volunteers, selected by the membership to carry out the business of PENCA as directed by the membership and the Articles of Incorporation.  In June, the Board was presented with a Code of Conduct document for acceptance by past President Behrens.  At that meeting, the majority of the Board members were not supportive of signing the document presented.  President Stavros reported to the membership that meetings are open, financial records are available, and that actions of the Board are published.  The decisions of the Board have been for the good of the community and not for any individual gain.  At this time, the Board will not be pursuing a Code of Conduct for its members.

Marilyn Hall stated that an agreement dated August 31, 1993 and published in the Official Bulletin of the Government of the State dated November 1, 1993, not only regulated the sale of lots; it also established a legal foundation for PENCA; the organization in charge of operation; which includes security, maintenance of roads, trash removal, conservation and improvement of the same.

Barbara Wytaske requested that a non formal public forum be held at the end of our general meetings. It was also requested that we consider proxies by email for future meetings.

With a motion by Gary Bonebright, seconded by Mike Hill the meeting adjourned at 12:35.

Sandra Bonebright, Secretary

HOME