BIG BAY RESIDENTIAL ESTATE HOME OWNERS ASSOCIATION

MINUTES OF THE ANNUAL GENERAL MEETING OF THE HOME OWNERS ASSOCIATION HELD AT THE BIG BAY LIFESAVING CLUB, BLOUBERGSTRAND AT 18H00 ON THURSDAY, 13 NOVEMBER 2008.

PRESENT: REPRESENTING:
Ondrej Vasica (OV) Chairman
Belinda Ketel (BK) Trustee : Maintenance/Landscaping
Harry Francken (HF) Trustee : Security
Kevin Cordon (KC) Trustee : Security
Edna Bunn (EB) Trustee : Building Operations

And members present in person or by proxy as per the attendance register.

1. ESTABLISHMENT OF A QUORUM
Ondrej Vasica, in the chair, advised that all property owners present constituted a quorum. The meeting was then declared open.

2. WELCOME BY CHAIRMAN
The Chairman welcomed all present to the meeting.

3. APOLOGIES:
Morne Weyers, the Vice Chairman and Trustee : Finance forwarded his apologies due to work commitments and Frits Metz, Trustee : Security was working in Indonesia, thus they were unable to attend the AGM.

4. CONFIRMATION OF THE NOTICE CONVENING THE MEETING
The Chairman confirmed that the Notice had been sent with 21 days notice, first via email on the 16 October 2008 and then posted on the 22 October 2008.

5. CONSIDERATION OF THE TRUSTEES’ REPORT
The Report was sent out with the Notice. There were no comments or additions to the Report and it was approved at the meeting.

6. CONSIDERATION OF THE ANNUAL FINANCIAL STATEMENTS AND AUDITORS REPORT OF THE ASSOCIATION FOR THE LAST FINANCIAL YEAR
OV informed all present that an updated Financial Report was forwarded to all owners before the AGM in order to answer a number of queries from owners on the Audited Financial Statements. The Trustees recommended to change the Repairs and Maintenance Expenditure of R810 974.00 in order to show a more comprehensive breakdown of the expenses.
It was noted the overall security costs were reduced compared to the previous year and one reason was that the Estate purchased a bakkie which was a cheaper option than paying a security company direct. The Annual Financial Statements and Auditors Report for the year ended 30 June 2008 were then tabled, taken as read and approved by the members present.

7. TO APPROVE THE ANNUAL LEVY BUDGET FOR THE ENSUING YEAR
OV stated that the budget indicated a deficit of R215 00 for the financial year and OV, on behalf of the Board of Trustees, proposed a vote to either increase the levy by R100, from R700 to R800(incl VAT) a month, effective December 2008, or cover the shortfall out of the reserves. The Building Period Penalties have been additional income over the last 3 years but as the building phase was coming to an end, the income will decrease accordingly. Additionally, the Endowment Levies have also decreased due the change in the market and the budget reflected a minimum of 2 sales a month. The Major Improvements as per the budget are the luxury items for the estate and the costs come out of the reserve funds, thus they are not factored into the operational budget which is covered by the levy. A concern raised by an owner was that the budget was too conservative and at the end of the day the estate was making a profit. OV also pointed out that approx R500 000 was owed by Debtors, with most cases being pursued legally which took time, but more concerning was that the situation of bad debts would get worse in the current economic environment. Interest accrued at 15% on outstanding debts and the surplus funds were in a Call Account. The owners present must thus vote as to how the operational expenses are going to be covered for the financial year.

BL presented the Major Improvement budget as follows:

• Estate Management have had many requests from residents to cover the Guardhouses with a roof for bad weather conditions
• Repainting and repair of the external walls which need to be replastered.
• Upgrading of gates as they are not coping with the increase of visitors and resident traffic
• Maintenance of the electric fence due to the close proximity of the sea
• Fountain at the gate to enhance the entrance at Sandown 2
• A generator is required as a backup when there is no power
• Paving of all the entrances when the building on the Estate is complete due to damage from the heavy duty vehicles

An owner pointed out that some of the speed bumps are breaking and Estate Management was instructed to follow up with the 1 year guarantee for repairs. One owner queried why the Major Improvement budget is put to the vote when most of the items are essential and the Trustees have the right as per the Constitution to make the decisions in the best interest of the Estate.

The outcome of the voting process was that the levy stayed at R700(incl VAT) for this Financial Year and the deficit would come out of the reserves, and the Major Improvements Budget was approved by a majority vote for implementation.

8. TO APPOINT THE AUDITORS FOR THE ENSUING YEAR
The Auditors, BVD Platinum(formerly Botha de Vries), have been used for the last 4 years. OV proposed that the Auditors continue for the forthcoming year and this was approved by all present.

9. ELECTION OF TRUSTEES
In line with the Constitution. the Board of Trustees of the Association shall consist of no less that 3 and not more that 7 Trustees. In the past it was difficult to get Trustees but this year a number of new nominations had been received. OV and MW had opted to step down and 5 of the current Trustees, namely Belinda Ketel, Edna Bunn, Kevin Condon, Harry Francken and Frits Metz were available for re-election.

The current Trustees each introduced themselves as follows:
1. Belinda Ketel (Erf 432):
Belinda, Doctor of Public Management , with a Masters in Business, has been a Trustee for the last 4 years in charge of Maintenance and Landscaping and lives in Blouberg Hills Estate.

2. Edna Bunn(Erf 421,502,620) :
Edna had been involved with the Estate since inception in 2004 and has held the position of Trustee of Building Operations for the last year. She has a marketing background, with an Honours Degree in Business Administration, and is involved in the building industry and also lives on the Estate.

3. Harry Francken(Erf 444) :
Harry also been on the Estate since the start, and this was his first year as a Trustee managing the Security Portfolio. This position involved a lot of time and effort with many challenges, and the responsibility of a big budget. He was involved in the changing of the security companies in the interest of all the residents as the companies were not performing. He also proposed that a number of Trustees are selected for Security on the Estate due to the responsibility involved.

4. Kevin Condon (Erf 537) :
Kevin is a resident who has offered his 30 years experience in the security industry for the benefit of the estate, including the opportunity of polygraph all the guards for the current contract. He was involved with the selection of the guards for Gremick Security and pointed out that 30-40% of the guards were rejected due the polygraph testing that was implemented.

5. Frits Metz (Erf 472):
Frits was working overseas but his wife, Adele, explained that Frits worked offshore for BP and was currently in Indonesia on an assignment and is home every 28 days. He had been a Trustees for the last year and was willing to continue for another year on the basis that he would assist remotely and attend Trustees meetings when he was back in SA.

The new nominations were:
1. Michael Myers :
Michael is retired and would like to contribute to the development of the Estate.

2. Isobel Spence :
Isobel has moved to Cape Town from Pretoria a year ago and was the Chairman for a Body Corporate for 10 years.

3. Gary Nuttall :
Gary was not present but his wife Charlotte stated that he was involved in the Marketing Division of Lewis Stores and believes he would add value to the Estate and provide help where needed.

4. Markus van Aswegen :
Markus is a Property Developer and has been building on the Estate since the beginning. He would like to get involved in certain issues and make suggestions as to the management of the Estate. He has been a Financial Director for 5 years but does not have a Degree.

5. Marlese van Aswegen :
Marlese has been involved and lived on the Estate for a number of years and as a resident is concerned about security, the monies that have been spent and would like to come in with new ideas

6. Chris Parson :
Chris was a Trustee /Chairman for 7 years in other estates and is involved in IT.

OV highly recommended that the current nominated Trustees are voted in again with their experience but also recommends that new Trustees with different experience would benefit the Estate.

The outcome of the voting process by the owners present was as follows:
Belinda Ketel
Edna Bunn
Harry Francken
Kevin Condon
Michael Myers
Gary Nuttall
Chris Parsonsv

OV confirmed that this would be the new Board of Trustees for the forthcoming Financial Year.

10. GENERAL
10.1 PANIC BUTTONS

BL explained that there were certain parts of the Estate where there was no signal and thus the system was not working even with additional repeaters. OV proposed that the new Board of Trustees refund owners whose panic buttons were not in working order.

10.2 PARKS
The Trustees proposed a playing field in Sandown 2 for the children of the Estate by joining 2 open areas and making this into flat open park, which was included in the budget. Martin Coleman, resident at Erf 621 , was concerned that this park would be in front of his house and would be noisy and requested that all affected owners in the area be given the opportunity to have their input before a final decision is made. OV confirmed that due process would be followed to inform all the residents and owners of the final decision.

10.2 DOGS ON THE ESTATE
There was a concern that dogs were still roaming the Estate and one owner had a problem that dogs often used his lawn to defecate and he had to pick it up. There is a fine of R1000 if a dog is out on the Estate and OV requested that any transgressions are reported immediately to security in order for Estate Management to issue penalties.

10.3 SECURITY
There was a complaint from an owner who lives on the boundary that the security guards patrolling the perimeter of the Estate at night were noisy and set off their beams. OV informed all that this situation would be investigated but the options were to cancel the patrols, which would be a security risk affecting all the residents, or keep training the guards to patrol correctly.

10.4 WEBSITE
It was proposed by an owner that the website could be a more useful tool as there are many professional people living on the Estate who could be networking with this facility. OV indicated that there is such a functionality on the website where residents and owners can advertise any service and also sell houses etc. Additionally, there was a monthly newsletter which was also used to advertise various services offered by owners.

10.5 BIG BAY MASTER PROPERTY OWNERS ASSOCIATION
Yvonne Green, of Cape Classic Property Solutions (Pty) Ltd, informed all present that the representative for Big Bay Estate as a Trustee was Morne Weyers, Trustee : Finance but this would now change as MW had resigned as Trustee. The Master Property Association was the entity that managed the Big Bay Precinct and was a “top up” for the Council services in the area. All home owners in the Big Bay Precinct were automatically members as per the Home Owners Constitution.

10.6 SANDMINING
All owners were informed of the outcome via email as this issue has been resolved for the time being.

10.7 BLOUBERG HILLS INCOMPLETE HOUSE
There is one plot in Blouberg Hills that has been an incomplete building for the last year and the Board of Trustees have pursued this owner legally as Building Period Penalties are being charged and not paid. The plot will eventually be auctioned if there is no further action.

10.8 CELLPHONE RECEPTION IN ESTATE
After 4 years there is still bad cell phone reception in the Estate and the Trustees have been dealing with Vodacom for a Micro Cell on an ongoing basis. Dune Ridge Estate has a Micro Cell but this has not made a big difference to date. OV forwarded a tip that Vodacom can supply a passive receiver into each home and Ben Lutumba a contact should any owner plan to use this route.

10.9 SPEED BUMPS ON CORMORANT DRIVE BETWEEN BLOUBERG HILLS AND SANDOWN ESTATE
An owner requested that the Estate consider a speed bump to prevent the speeding between the 2 estates, but OV informed all that as it was a public road, it was a Council issue and that there would be specific zoning regulations. The HOA had already communicated with the traffic department and would continue to do so on a regular basis. An alternative was to forward a petition to Council in the future if there was no action taken.

With nothing further to discuss the Chairman thanked all present for attending and closed the meeting.