minutes of meeting - val de...

HOA AGM Minutes 1/5

28 Aug 2013

Minutes of Meeting

Meeting: Val de Vie Lifestyle Home Owners’ Association AGM

Where: Ballroom – Pavilion

Date & Time: 28 August 2013, 18:00

Chairman: Morne Bosch

Attended:

Members of the Val de Vie Lifestyle Estate Home Owners’ Association

All the Trustees

Auditors: BGR Paarl

Minutes: Number Item

1. Welcoming

1.1 Chairman welcomes all members present

2. Quorum/Manner of Proceedings

2.1 It is noted that a quorum is present (10% of the total members entitled to

attend and vote at the meeting).

3. Voting on Various Matters

3.1 Election of member trustees

The following three members were nominated:

Anton Gildenhuys, Leon Cronje and Clifford van der Venter.

Each of the three nominees to say few words about their nomination as

Trustee of the board and give a short résumé.

Homeowners to vote for 2 (two) of the three nominees.

The resolutions are seconded by Sarel Rossouw.

3.2

Resolutions presented for amendment of Constitution. It is noted that the

resolutions were duly distributed to homeowners.

Chairman: Four resolutions proposed and communicated to homeowners.

Suggest that resolution 3 is withdrawn since it doesn’t accomplish what we

initially set out to do. We intended for this resolution to assist in the broad

application of the builders deposit for all purposes but that this can more

appropriately be addressed in the Building rules and regulations. Propose that

Resolution 3 be withdrawn. No objections.

Chairman gives opportunity for questions from the floor.

Question from homeowner: What is the intention with the Resolution relating

to the consolidation of the erven?

HOA AGM Minutes 2/5

28 Aug 2013

Chairman: During the past few years homeowners bought adjacent erven and

consolidated the properties whereafter the owner only paid one monthly HOA

levy. Initially the HOA took the view that these were isolated and would not

have a material effect on the HOA’s income. However, since more and more

of these requests were received we need to be able to insist that such

consolidated erven pay a double monthly levy. We will thereby be able to

protect our levy base.

Anton Gildenhuys (trustee): It is important to note that this was a proposal

made by the HOA in order to protect our levy base and not to give the

Developing company more rights than it already has.

Question from homeowner: Asks what the intention of Resolution 2 is

regarding the compilation of a list of accredited estate agents to operate on

the Estate. What about the Competition Act?

Chairman: Mentions that it is fully legal according to opinions received from

legal practitioners, ARC and conversations with other residential estates. Our

matter of concern is that currently estate agents have 24/7 access to the

Estate. We would like to build a closer relationship with agents to ensure that:

- The Estate’s security measures are respected and effectively enforced;

- Agents are fully informed about the Estate, rules and regulations and

that agents act responsibly when advising potential property owners;

- The HOA can exercise quality control over the agents promoting the

Estate.

The Developing company never intended to have a closed list of estate agents

and this is also a proposal from the HOA’s trustees and not the development

company .

Members proceed to vote by way of a poll.

4. Chairman’s Report

4.1 The Chairman presents the Chairman’s Report for the past year (separately

published).

5. Consideration of the financial statements for 2013

5.1 Sarel Rossouw presents the financial statements for 2013 (presentation

separately published).

Question from homeowner: Asks about the amount of outstanding levies to be

collected which amounts to 16% of the total revenue of the HOA under the

levies payable item. Asks about the difference in the budget amounts as

presented at AGM and those originally communicated to homeowners. Also

asks when the budget is approved, since the financial year end is February

and the AGM is held in August each year. Mentions that since levies are

increased in April each year and the AGM are held in August, wouldn’t it be

more sensible to increase levies after the AGM is held?

Sarel Rossouw: Explains that the first budget meeting of the trustees is held

early January each year whereafter the proposed budget is sent to

homeowners for their comments and input. The trustees then consider all

suggestions and comments received from homeowners and attempt to

incorporate relevant suggestions into the budget before finalising the budget

HOA AGM Minutes 3/5

28 Aug 2013

in February each year for the ensuing year. Since the HOA received an

amount of almost R9m for the financial year from extraordinary levies

imposed, we project to increase levies by inflation only until 2017 unless

extraordinary circumstances arise. The income from penalty levies was

considered and incorporated into the budget as presented. It should be

remembered that our levy base will increase over time and this is also taken

into account when drafting the budget. In the long term operational costs

shall decrease as our levy base increase.

Question from homeowner: The HOA incurred extraordinary costs during the

past year such as the contractor’s road etc. Is it correct to say that we still

have R10m in our bank account after the payments of these costs?

SR: That is correct. We received approximately R9m from the payment of

extraordinary levies for the past year. The HOA thus experience a zero cash

flow situation and is able to pay for all capital improvements.

Question from homeowner: When one look at the presentation of projected

income until 2017 and expect income to drop to R18m and expenditure to

escalate at a normal rate it adds to a breakeven point in 2016 and a loss in

2017. Why does it differ from the projections presented at the AGM as

discussed? Do you still believe that by 2017 we will be able to break even

without increasing levies by a special amount or without reducing

expenditure?

SR: A combination of reduced expenditure by lesser inflation per year will

cause the HOA to break even by 2017. Over time it will become cheaper to

service the Estate as certain expenses shall normalise over time and reduce

costs for the HOA. We were very conservative when considering the levy base

of the HOA and only made provision for an increase of 12 levy payers per year

going forward. We should also keep in mind that expansions of the estate (for

example the 4x4 site at main gate) will probably increase the levy base with

50-200 payers in 3-5 years from now. In addition to our conservative

approach to income and expense projections we will still have a sufficient cash

buffer to carry us for at least one to two years should there be a shortfall on

the income from normal levies.

Question from homeowner: Do we have a sufficient insurance policy in place

in case of floods and fire – specifically with regards to the polo fields and the

river frontage?

SR: Confirms that the HOA has a substantial insurance policy in place which

covers us against flood and fire damage. The Corporate Governance

committee also consults with our insurance broker on a regular basis to

ensure that the cover we have in place is sufficient. Our current policy

includes coverage against floods and fire.

Renier Swart (trustee): Confirms that after the rain of the past few weeks the

assessor came out to evaluate the damage to three points on the perimeter.

He also confirmed that the replacement cost will be covered in full by insurer.

6. Presentation of the 2014 budget

6.1 Sarel Rossouw presents the 2014 budget.

HOA AGM Minutes 4/5

28 Aug 2013

7. Proclamation of vote

7.1 The results of the votes are verified by the attending auditors.

Chairman announce the results of voting as follows:

Trustees for board: Anton Gildenhuys and Leon Cronje received

majority of votes;

Resolution 1: 136 votes in favour, 12 votes against ;

Resolution 2: 129 votes in favour, 18 votes against;

Resolution 3: Withdrawn;

Resolution 4: 147 votes in favour, 1 vote against.

Anton Gildenhuys and Leon Cronje are elected as home owner trustees

Resolution 1,2 and 4 are accepted.

8. General

Chairman gives the opportunity for questions from the floor.

Question from homeowner: Asks about the Developer’s negotiations with

Pearl Valley regarding possible extension and how that will affect the Estate.

Asks how much input will homeowners have in the proposed developments

and extension of the Estate?

Chairman: Says that the HOA and Developer will have negotiations and that

the Developer is compelled to follow a public participation process whereby

the Trustees and affected homeowners will be provided with a formal

opportunity to make submissions and to deliver inputs regarding possible

developments. In general the trustees are positive about the opportunity to

expand the Estate, since that will enable us to benefit from economies of scale

and our levy base will be expanded. This will have a positive effect on the

HOA’s budget. However, before the incorporation of such extensions into the

HOA, a due application process shall be followed.

Question from homeowner regarding the compilation of a list of accredited

estate agents to market and sell properties on the estate. Acknowledge that it

will be good to have such a list but mentions her concerns about the criteria

by which the list will be compiled and whether this is against the Competition

Act in a free market.

Anton Gildenhuys (Trustee): Explains that the Competition Act prohibits

horizontal and vertical collusions. Horizontal collusion refers to a situation

where agents fix the market prices among themselves and vertical collusion is

a situation where the Estate fixes the market prices due to collusion with

suppliers of properties. It must be mentioned that we as an Estate and

property owners are clients of estate agents so if we restrict our suppliers we

as clients of estate agents do not contravene the Competition act by doing so.

Chairman: The commission that estate agents receive will always be

negotiated between the seller and the agent without the intervention of the

Estate / HOA as a party.

HOA AGM Minutes 5/5

28 Aug 2013

Question from homeowner: Will the decision to expand the Estate lie solely

with the Developer and the Trustees of the HOA?

Anton Gildenhuys: The home owner trustees will take a leading role in

negotiations of the terms on which additional phases are incorporated into Val

de Vie. In principle, any incorporation will need to be financially and otherwise

beneficial to the association.

Question from howeowner: Will the gravel road to the Kinderark be tarred

soon?

Chairman: The gravel road is part of the cellar property which was purchased

by Perfect China. They have extensive plans to upgrade the cellar and

surrounding area. We therefore expect them to resurface that piece of gravel

road. It’s not possible to attach a time frame.

9. Adjournment

9.1 Meeting adjourned at 19h40

Minutes approved.

AGM Agenda 1/1

Agenda Version 1

Agenda

Meeting: Val de Vie Lifestyle Home Owners’ Association AGM

Where: Ballroom – Pavilion Date & Time: 27 August 2014, 18h00

Chairman: Morne Bosch

Invited: Members of the Val de Vie Lifestyle Estate Home Owners’ Association

Agenda: Number Item

1. Welcoming

2. Apologies/Quorum/Manner of Proceedings

3. Voting on Various Matters

3.1 Election of member trustees

4. Chairman’s Report

5. Consideration of the financial statements for 2014

6. Presentation of the 2015 Budget

7. General

8. Proclamation of vote

9. Adjournment

address Polo Pavilion Val de Vie Estate R301 Paarl 7620 South Africa post PO Box 6223 Paarl 7646 South Africa

tel +27 21 863 6100 fax +27 21 863 2741

Val de Vie Winelands Lifestyle Estate Home Owner’s Association, Trustees: M Bosch, L Cronje, A Gildenhuys, , R Neethling, R Terblanche, S Rossouw, R Swart,

M Venter

Manner of Proceedings

The following will take place on the evening of 27 August 2014:

1. Statutory Proceedings for the 2014 Annual General Meeting for which the following will apply:

Welcoming;

Apologies/Quorum/Manner of Proceedings

Election of member trustees;

Chairman’s Report;

Consideration of the audited financial statements for 2014;

Presentation of the 2015 Budget;

General Matters;

Adjournment.

2. General Meeting:

The General Meeting will follow after the adjournment of the Annual General Meeting and will

be called within 7 days of receiving this Notice, as per Clause 26.1 of the Constitution.

Proposed resolutions that will be duly distributed to all members will be put to the vote.

3. After the adjournment of the Annual General Meeting and the General Meeting a discussion of

the internal process of the incorporation of further development phases will follow.

Kindly note that the following rules will apply during the 2014 Annual General Meeting of the

Val de Vie Lifestyle Estate Home Owners’ Association.

Only members whose accounts are fully paid will be able to:

attend the meeting; and

cast votes as set per the Constitution, either in person or by proxy.

Members whose accounts are fully paid will receive a voting card for each property they own.

It is each member’s duty to ensure that their accounts are fully paid up to date. The HOA office can

be contacted at [email protected].

Coffee and tea will be served from 17h30 and the Restaurant will be open for dinner – please

reserve your table at 021 863 6174 or [email protected]

mailto:[email protected]:[email protected]

Proxy Form Version 1

PROXY FORM

I/We _________________________________ owner/s of SG ________ being a

member of the Homeowners’ Association and entitled to vote, hereby appoint:

X

the Chairman of the meeting

as my proxy to attend, speak and vote on my behalf, as indicated below at the Annual General Meeting to be held on 27 August 2014 and at any adjournment thereof

SIGNED at ____________________ on ________________________________ 2014.

Signature/s: ____________________ Name/s (Print):__________________________

This Proxy form must be submitted to HOA Reception or [email protected] on/before

Friday 22 August 2014 by 17:00.

mailto:[email protected]


tel +27 21 863 6100 fax +27 21 863 2741 email [email protected]

Val de Vie Winelands Lifestyle Estate Home Owner’s Association, Trustees: M Bosch, L Cronje, A Gildenhuys, R Neethling, R Terblanche, S Rossouw,

R Swart, M Venter

NOMINATION FORM FOR THE BOARD OF

TRUSTEES

Nominated by: _____________________________ SG: _______________

Signature: _________________________________

Nominee: _________________________________ SG: ________________

Candidate Signature: _____________________________________________

Email : ________________________________________________________

Cell No: ______________________ Tel No: ________________________

Relevant Experience of the candidate and Motivation:

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

_______________________________________________________________

This Nomination form should ideally be accompanied by a Curriculum Vita of the

nominated candidate which must be submitted to HOA Reception or

[email protected] on/before 18 August 2014 by 16:00.





R Swart, M Venter

RESOLUTION FORM

RESOLUTION OF THE BOARD OF DIRECTORS, alternatively MEMBERS, alternatively

TRUSTEES OF

_______________________________________________________________________

(NAME OF COMPANY, CLOSE CORPORATION OR TRUST)

As the registered owner of

SG: ___________________________________________________________________

SIGNED at ____________________ on this ______ day of ________________ 2014.

Resolved that:

_______________________________________________________________________

(Name in BLOCK LETTERS)

Be and is hereby duly appointed as representative.

The aforementioned shall furthermore be entitled to attend, speak and vote in person or

by proxy at the AGM as well as the Special General Meeting to be held on Wednesday, 27

August 2014 and at any adjournment thereof and to bind the Company/Close

Corporation/Trust in this regard.

Name: __________________________ Signature: ___________________________

(DIRECTOR/MEMBER/TRUSTEE)

Name: __________________________ Signature: ___________________________

(DIRECTOR/MEMBER/TRUSTEE)

This Resolution form must be submitted to HOA Reception or [email protected] on/before Friday 22

August 2014 by 17:00.





R Swart, M Venter

CONSENT FORM

PROPERTY OWNED BY MORE THAN ONE PERSON

We, the registered owners: _________________________________________________

_______________________________________________________________________

(Names in BLOCK Letters)

SG: ___________________________________________________________________

Hereby give consent to (one of the above owners): ______________________________

To attend, speak and vote in person or by proxy at the AGM as well as the Special

General Meeting to be held on Wednesday, 27 August 2014 and at any adjournment

thereof.

SIGNED at ____________________ on this ______ day of ________________ 2014.

Signature: ___________________________________

Signature: ___________________________________

This Consent form must be submitted to HOA Reception or [email protected] on/before Friday

22 August 2014 by 17:00.


Anneke.vandermerweSticky NoteAccepted set by Anneke.vandermerwe

Anneke.vandermerweSticky NoteNone set by Anneke.vandermerwe

Anneke.vandermerweTypewritten TextDRAFT

Anneke.vandermerweTypewritten TextDRAFT

VAL DE VIE HOA

2015 Financial Year Budget Summary

VAL DE VIE HOA

2015 BUDGET SUMMARY

CONTENTS Page

Operational budget summary 1 - 2

Capital expenses 3

Summary of inputs used and resultant outputs 4

HOA 2015 OPEX budget - Summary

% Monthly Avg 2013 Equivalent %

of total Total Avg % Monthly Yearly (2013/12 YTD) YTD total of total Notes

Total Income - HOA Operations 21 914 701 1 826 225 -12% -254 203 -3 050 431 2 080 428 24 965 132 1

Normal levies 68% 14 940 285 1 245 024 12% 129 970 1 559 637 1 115 054 13 380 648 54% 2

Extraordinary levies 15% 3 304 000 275 333 -61% -428 801 -5 145 607 704 134 8 449 607 34% 3

Builders' Road Levies 11% 2 332 200 194 350 33% 47 906 574 872 146 444 1 757 328 7% 4

Other income 6% 1 338 216 111 518 -3% -3 278 -39 332 114 796 1 377 548 6% 5

Total Expenses - HOA Operations 19 614 693 1 634 558 12% 176 803 2 121 640 1 457 754 17 493 053 6

Landscaping 34% 6 745 083 562 090 -3% -19 104 -229 243 581 194 6 974 326 40%

Security Fees 22% 4 253 260 354 438 14% 44 836 538 028 309 603 3 715 232 21% 7

Maintenance costs 15% 2 932 040 244 337 46% 77 169 926 029 167 168 2 006 011 11% 8

Staff Costs & Management 12% 2 353 540 196 128 6% 10 582 126 984 185 546 2 226 556 13%

General expenses 8% 1 604 737 133 728 12% 14 008 168 093 119 720 1 436 644 8% 9

Municipal Costs 4% 777 152 64 763 3855% 63 125 757 502 1 637 19 649 0% 10

Buildings&Infrastructure 3% 531 036 44 253 -5% -2 157 -25 890 46 411 556 926 3%

Administrative Expenses 3% 527 317 43 943 13% 4 961 59 528 38 982 467 789 3% 11

Insurance 2% 360 000 30 000 10% 2 684 32 205 27 316 327 795 2% 12

Residential services 1% 269 197 22 433 35% 5 871 70 454 16 562 198 743 1% 13

Environment 1% 184 000 15 333 -35% -8 283 -99 397 23 616 283 397 2%

Building activity -5% -922 668 -76 889 28% -16 888 -202 653 -60 001 -720 015 -4% 14

Net surplus/(deficit) from HOA operations 2 300 008 191 667 -69% -431 006 -5 172 071 622 673 7 472 078.51

Transfer (to)/from maintenance reserves 949 812 79 151 197 797 2 373 569 -118 646 -1 423 757

Transfer to I&M Reserve (I&M Reserve Fund) -1 982 228 -165 186 -42% 120 628 1 447 540 -285 814 -3 429 768

Reserve fund utilisation included in expenses 2 932 040 244 337 46% 77 169 926 029 167 168 2 006 011

Net Surplus/(Loss) before CAPEX 3 249 819 270 818 -46% -233 209 -2 798 502 504 027 6 048 322

- -0.00 - -

Notes to 2015 OPEX budget summary:

1 - Decrease in total income year-on-year due to decrease in extraordinary levy income (increase in building activity)

- If extra levy income remained unchanged, total income would increase by 8% year-on-year

2 - 6.6% increase (March 2014) - new levy of R2 825 VAT incl

- 12 stands to transfer

- 496 normal levies beginning of year, 508 by the end of year

3 - Majority of new building sites applied to 3rd year extra levy stands

- See note 4 below for building statistics

2015 Fin Year Increase/(decrease) 2014 Fin Year (2013/12 YTD)

1

4 - Builders' road levy to increase by 6.5% from March - new levy of R2 300 (VAT excl)

- 72 x new building sites budgeted for - average number of projects per months = 84

- Total building activity at end of year - 436 houses (of which 78 are active sites)

5 Comprises mainly of the following income sources:

Interest on Overdue Accounts

Interest on Cash Balances

6 Year-on-year comparison of expenses (excluding abnormal and non-cash flow items):

2014 Monthly Avg 2015 Monthly Avg

Total as per OPEX budget 1 457 754 1 634 558

Adjustment for abnormal items:

- Municipal water under recovery (Municipal error) 71 559 -

Non-CF items:

- Depreciation -103 593 -130 000

1 425 720 1 504 558

Year-on-year increase 6%

7 Higher than inflationary increase due to:

- Extra patrol vehicles

- As number of residents increase, extra guards needed at gatehouses

- Increase in scope - remote monitoring (thermal security camera system)

8 - Maintenance costs will vary from year to year, depending on major maintenance actions to be performed from time to time (as per Infrastructure and Maintenance Reserve plan)

- Major maintenance actions to be performed on roads, water pumps, security gates and HOA buildings

9 - Higher than inflationary increase due to increase in depreciation provision

10 - Under recovery of bulk water by Municipality in 2014 financial year due to incorrect metering & calculation errors on their behalf

- Costs saving in electricity expense through installation of solar panels

11 - Higher than inflationary increase due to implementation of new estate communication portal and administration system

12 - Increased asset base compared to prior year

13 - Higher than inflationary increase due to improvement / renewal of signage on the estate

14 - Higher average number of building sites on the estate

- Building control levy to increase by 6.5% from March - new levy of R2 300 (VAT excl)

2

Val De Vie Home Owners Association

Capex Budget for 2015 financial year (items will be individually approved by the subcommittees and trustees) 2015

Essential

Landscape 885 000.00

Upgrade of landscaping areas See Project List 400 000.00

Tree Maintenance Reports and remedial pruning and fertilisation 100 000.00

Polo Fields Re-seeding 185 000.00

Polo Fields Sand track 200 000.00

Irrigation system 1 585 000.00

Irrigation of present unirrigated areas Present un-irrigated areas 395 000.00

Borehole_additional Sinking of one additional borehole 100 000.00

Borehole_additional Installing one pump and switchgear for additional borehole 180 000.00

Borehole_existing Motor and pump for existing borehole 92 500.00

Borehole_existing Installation of pipework for existing boreholes 32 500.00

Borehole_existing Irrigation controls on pump and switchgear of existing borehole 60 000.00

Pump house_main Installation of two new generation motors 85 000.00

Irrigation Controls To be finalised, Hunter program outdated 640 000.00

Gym 15 000.00

Gym equipment Replace Small items 15 000.00

Buildings 29 000.00

Boardroom Sports & Leisure centre Projector 15 000.00

Post Office Sports & Leisure centre Storage Solution 10 000.00

Reception Sports & Leisure centre Light 4 000.00

Vehicles 240 000.00

New Maintenance vehicles Two NP200 's 240 000.00

Storm Water and Sanitation 323 000.00

New storm water channels near SG562 28 000.00

New storm water channels near SG221 35 000.00

New storm water channels Southern border 75 000.00

Sump with pumps to prevent flooding Pavilion field 185 000.00

Security 272 000.00

Main Boulevard Circles Infra red lights 72 000.00

Equipment New booms, keypads, biometric readers, tactical equipment 200 000.00

IT 210 000.00

General Provision (optic vibre etc) 100 000.00

Electronic asset management system 60 000.00

Communication Portal 50 000.00

3 559 000.00

Cost Saving - Items 915 000.00

Photo Voltaic Solar Panels Lifestyle centre - cost saving 750 000.00

Swimming Pool Install energy efficient pumps and filters for pool 165 000.00

Total yearly cost, including cost saving items 4 474 000.00

Monthy average 372 833.33

3

HOA 2015 budget - Inputs & Outputs

Inputs 2015 Fin Year

Normal levy (VAT incl) 2 825.00

Normal levy (VAT excl) 2 478.07

Extraordinary levy base cost ("ELBC") 1 995

Building Control Fee - VAT excl 2 300.00

Building Road levy - VAT excl 2 300.00

Summary of outputs

Surplus/(loss) before tax and transfer to special funds 2 300 008

Surplus/(loss) for the year after I&M fund utilisation 3 249 819

CAPEX 4 474 000

Cash balance at year-end 12 298 735

- Available for running expenses 8 545 553

- I&M reserve allocation 3 753 182

Reserve/Equity balances 26 597 208

Accumulated funds 22 844 026

Infrastructure and maintenance fund 3 753 182

Debtors balances at year-end 2 266 293

Debtors days 45.89

4

HOA_20130829_AGM_MinutesHOA_201408_AGM_Agenda_01HOA_201408_AGM_Manner of Proceedings_01HOA_201408_AGM_Proxy Form_01HOA_201408_AGM_Nomination Form_01HOA_201408_AGM_Resolution FormHOA_201408_AGM_Consent FormVal De Vie HOA Financial Statements 2014 01-08-2014_without debtorsVal de Vie HOA Abbreviated budget for 2014 2015 circulated to HOs.pdf

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