April 2001

Dear Palmetto Pines Residents,

It has been six months since the new Board took over and it’s time for a progress report.  Judging by the last set of letters that was sent out before the annual meeting and the turn-out that those letters generated, it seems safe to say that the residents of Palmetto Pines had several items that they wanted to see changed:

1. They wanted to see a cheaper management company.

2. No more lawsuits, an end to outstanding lawsuits.

3. Lower fees to attorneys.

4. Change or amend the deed restrictions to allow pickup trucks.

5. A change in the board’s leadership and direction.

6. More responsible use of the money, resulting in lower quarterly dues.

How has the Board been doing?

We are now with our third management company in six months.  We don’t know how much the total fee will be for this management company, but at the last board meeting, one of the board members said that the fees were the same as that of Palm Beach Property Management Company.  That company charged us $60,000 per year.  It doesn’t sound like a change was made in price, only in name!

As to ending the lawsuits, the violation letters have started to come from our new management company.  Can the lawsuits be far behind?  As to lower attorney’s fees, what attorney would kill a cash cow like Palmetto Pines by recommending the stopping of lawsuits?

The Association lawyer, Tamar Shendell, has said in board meetings that the state doesn’t define a truck as including pickup trucks and that the deed restrictions don’t mention pickup trucks.  She has also said that the by-laws do not carry the weight of deed restrictions and that the Board can remove any by-law by a simple majority of the Board at any meeting. On the other hand, a new by-law can be written by a majority of the Board.  It’s obvious that no sane person would ever agree to abide by rules and regulations that can be changed at the whim of Board members.  While saying this quite clearly, she has NOT recommended that the Board stop quibbling about pickup trucks or remove the article pertaining to them from the by-laws.  Because of her advice to continue in the footsteps of the old board, we don’t think the legal fees will be going down anytime soon.

The Board has been dancing around the issue of changing, by a vote of 889 homeowners, the deed restrictions concerning pickup trucks.  It has been discussed at board meetings as far back as December, always with the promise that Ms. Shendell was writing up an easy form to change restrictions.  Whether you want the changes or not, 593 homeowners must vote yes or nothing gets changed.

Some on the Board have been trying to vote off one member. Ms. Shendell said that a board member could be removed from the board if a majority of the 889 homeowners voted for the removal.  This question was brought up because Don Hulse was voted off the board at a planning meeting of the board and Ms. Shendell said that it wasn’t legal.  That action was brought against Mr. Hulse by Tom Galiotti and Mike Charloff, two board members who came in at the last minute, without having done any work to get the quorum needed to oust the old board. What is interesting about Mr. Galiotti and Mr. Charloff is that, after every board meeting, they run to Jack Knight and Joe Quattrachi and report on what is going on with the Association. They have been heard telling Mr. Knight and Mr. Quattrachi about both ongoing and resolved confidential legal matters.  Mr. Knight has been heard asking them why Don Hulse was still on the board.  Mr. Charloff has asked if Mr. Knight can come back on the board.  If there is a vote by the homeowners to remove Mr. Hulse from the board, Mr. Knight can take his place that same night by a simple majority of the BOARD!

The question remains, why do they want Mr. Hulse off the board.  Mr. Hulse appears to be the only board member who has questioned the Board’s authority to do anything other than collect $2/month for the maintenance of the canals.  He has done extensive research and has concluded that the developer never released his authority to enforce the deed restrictions to any board.  He has also researched the state laws pertaining to amendments to the deed restrictions and found that, even if an amendment passes, if you didn’t vote for it, or your mortgage holder doesn’t like the amendment, you are not bound by it because it would affect your vested property rights.

Mr. Hulse has also been calling for a budget.  At the last board meeting in April, a homeowner asked why the assessments were still at $75 and could he get a copy of the 2001 budget.  A board member said that there was no budget for 2001 and that the lawyer said that, without a budget, the old budget would roll over and the fees would stay the same.  That old budget had a surplus of $69,000.  One of the reasons that the old board was removed was that the president, John Messina, said that he wanted a surplus of $130,000.  Without changing the budget or fees, this board will have that surplus by the end of this year.  What for?!  More lawsuits?  Mr. Hulse is a CPA and knows that non-profit corporations, which Palmetto Pines Homeowners Association is, have certain things they must do with any extra money at the end of the year.  Non-profit corporations must have a budget that spells out reasonable costs and expected income. The two have to equal out.  At the end of the year, if there is any extra money, the money either must be given back to the members, used to lower assessments for the next year, or be subject to taxes by the government. Surplus money can’t be kept and used for just anything.  (See the Newspaper Article that pertains to this.)

As we see it, there isn’t much difference between this board and the old one.  Mr. Hulse has been trying to get the Board to be fiscally responsible and to do what the homeowners, many of whom he personally spoke to last September and October, want.  He can’t do it alone.  We need homeowners to start telling the Board what they want and to hold this board accountable.  We shouldn’t be required to pay any money until there is a budget showing where all the surplus money is going.

It’s up to you.  If you want what went on in the old board to continue, stay silent.  Jack Knight and Joe Quattrachi are determined to get back on the board and impose their will on this community.  Read the last set of by-laws and rules and regulations, sent out in August 2000, carefully.  See what they want from this community, especially starting at Article VIII.  This website is here to tell you how threats and intimidation by a few have destroyed people’s happiness.  Search for yourself.  See if the Board is entitled to $75/quarter, or whatever fee they set, or if the Board of the Palmetto Pines Homeowners Association can only assess $2/month.  Read your originally recorded Declaration of Restrictions for Hovsons of Florida, Inc. carefully.  If you don’t have a copy, go to deed restrictions and download a copy. Together, we can get back the type of community that echoes the sentiment of the sign at the first annual meeting in September - Just let us live in peace!

Sincerely,

A Group of Concerned Homeowners

Last modified: June 13, 2001

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