By: North Shore at Lake Hart HOA Board

The term “rogue board” is one that has been thrown around loosely to refer to your Homeowners Association Board of Directors by a small group of residents, three of which, Lynn Sandford, Jane Doe and Joe Doe (residents who refuse to give their names) are suing North Shore at Lake Hart HOA and all 1,049 owners for $20 million. This lawsuit is meritless but creates a cloud over the homeowners, the HOA and all of the volunteers who serve it. 

These individuals have engaged in several efforts to unseat the board, relying at times on unethical practices like offering prizes to those willing to consider signing their board recall petition and raising money for legal fees in exchange for waived HOA dues (that other residents would then have to make up for) if they succeed at gaining control of the board.  Also in their arsenal of unethical practices was door-to-door solicitation with less than truthful talking points including “we need your signature so that we can have an election”. Um, not true. We have made efforts to have an election at North Shore every year since the developer turned the HOA over to the members. Conversely, the same individuals then campaigned to have their neighbors abstain from voting and from attending the annual meeting to ensure that a quorum could not be reached in the community’s most recent election this March. 

 So far, their efforts have been unsuccessful for the most part. But let’s circle back around to the charge about the board being illegitimate and how it began. 

• On October 19, 2019 there was an attempt to hold an annual meeting and election. A group of residents who opposed this board decided to take over that meeting (while proxies were being properly validated for quorum and voting purposes) and carry on their own parallel election, separate from the proper proceeding according to the North Shore Bylaws, and elect their own new leadership despite such actions being an aberration in terms of process. Orange County deputies had to be called to quell the disturbance provoked by this group.
• The next day, these individuals attempted to have Access Management employees recognize them as legitimate board members by demanding keys to the business office as well as a complete turnover of all bank accounts and all official HOA records. They failed, but security officers needed to be hired to guard the office around the clock to protect employees who felt threatened, HOA official records and other private property.
• Shortly thereafter and for the next few months five individuals led by Ms. Sandford and John Baker filed a series of petitions with the Florida Department of Business & Professional Regulations (DBPR), which governs HOAs, stating that the then Board had not been elected and all members were “holdover” Board members and requested that the DBPR order a new five seat election.
• The HOA Attorney filed responses explaining how all members of the Board were in fact properly elected according to the HOA ByLaws.
• The DBPR issued a ruling stating that it did not agree with the claims of these individuals nor with the HOA Attorney’s response. Instead, the DBPR (a regulatory agency) took the position that there was a problem with elections going back to 2015 because nominations from the “Floor” were not accepted (nominations had to be turned in prior to the date of the annual meetings).
• The DBPR issued a Final Order to hold a new five seat election.
• The HOA Board, based on the advice of the HOA Attorney, did not agree with the DBPR Final Order and instructed the HOA Attorney to appeal this decision, which it did by going directly to the Court of Appeals.
• Four of the five individuals (Mr. Baker, who served for 11 years on previous NSLH HOA Boards, moved to a different community after starting this process) filed a legal action in Circuit Court to have the DBPR Final Order enforced
• The Appeals Court indicated that it will not hear the appeal because the case belongs at the Circuit Court level.
• The Circuit Court has not acted on the action.
• As this went on, Ms. Sanford started a petition to recall all five of the then current Board.
• After several failed attempts, the recall group collected enough ballots to present to the Board for consideration.
• By the time the ballots were presented, two of the five Board members had resigned out of frustration, while two other Board members were up for election at an Annual Meeting that was already on calendar. Thus, and pursuant to our bylaws, they were not eligible for recall. This left only one Board member eligible for a recall, which effectively happened on January 25, 2021.
• On February 10, 2021 the group conducting the Recall and led by Ms. Sanford asked the DBPR to enforce the recall of all five seats on the Board.
• On February 12, 2021 the DBPR responded that it will not look at the matter until the Circuit Court case has been resolved.

The current Board is the legitimate Board of the HOA. It is unknown when or how the Circuit Court will rule on whether to enforce the DBPR Final Order for a new five seat election. It is also unknown what if anything the DBPR will do after the ruling.

Until that time the current Board will continue to perform its duties as prescribed in our Bylaws.

By: Steve Smith

You should always expect the fees you pay as a homeowner in North Shore to be invested wisely and transparently. That is why every year, the financial statements for our Homeowners Association are audited by an independent firm. This process is currently in progress for 2020. Audits are an important exercise in diligence because they independently and unbiasedly check the accuracy of the numbers at hand to either validate them or shed light on problems. They can also help improve internal controls and systems.

The 2019 audit is posted on our website and 2020’s will be uploaded as soon as it is available. Prior year audit reports are available upon request to the office.

Homeowner Associations use Fund Accounting methods. There are two types of funds at North Shore:

1. The Operating Fund, which is used to record Member Assessment revenues as well as all other revenues except for interest earned in the Reserve (Replacement) Fund. All expenses except for those from the Reserve (Replacement) Fund are also recorded in the Operating Fund.
2. The Reserve (Replacement) Fund is used to accumulate money that will be needed for major asset replacement or refurbishment. These assets have a life expectancy exceeding one year and it is necessary to put money aside over time to be used to pay these expenses when they are incurred. One example of such an asset would be our community dock, or the basketball courts. We use guidelines in the Reserve Study to determine amounts to be accumulated over time for each asset and when to budget the expenditure for each asset.

The following are some FACTS about the Operating Fund financial results from 2020.

• Expenditures exceeded revenues by $355,884 (subject to any adjustments that the audit team might suggest). Most of these expenditures were either unexpected (such as the Marsh Pine Retention Pond emergency) or the amounts were unknown (such as the amount needed for sidewalk repairs) at the time the budget was approved and therefore not included in the annual budget (a detailed itemization follows).
• The Finance Committee recommended, and the Board approved, $80,691 in excess expenditures over revenues. This was done to limit the amount of increase in the monthly Member Assessment. The budgeted shortfall of revenues was to be paid from Accumulated Surplus of the Association. The Finance Committee and the Board considered using more of the surplus when preparing the 2020 budget, but they did not know at the time how much the cost of the sidewalk repairs would be. They also knew that a new Reserve Study was going to be done during 2020 and expected that the annual amount of funding needed to move to the Reserve (Replacement) Fund was going to increase substantially over prior years amounts. As it turned out the amount transferred during 2020 was $151,200 and the amount for 2021 from the new Reserve Study is $410,000.
• Accumulated Surplus represents the amount of revenues collected in prior years over expenditures in those same years. The amount of Undesignated Accumulated Surplus at the beginning of 2020 was $2,275,170 (per the 2019 audited financial statements
• The $355,884 in expenditures over revenues in the Operating Fund was paid for using part of the Accumulated Surplus.

During any year unplanned and unexpected items come up that require expenditures not included in the annual budget. A table at the bottom of this page lists what those were for 2020.   

• Neighborhood sidewalk repairs in all communities $178,122
• Consulting Fees – Executive Management (to assist David Genao) $  39,000
• Consulting Fees – Community Consultants (to assist with raised sidewalks) $900
• Consulting Fees – Parliamentarian – annual meeting – December $3,000
• Marsh Pine Retention Pond – Emergency repair to weir and levy $25,256
• General Grounds – Tennis courts drainage correction $11,163
• Covid-19 Monitoring & Cleaning $3,770
• Sparrow Landing Brick Wall repairs $9,100
• Moss Park Road Entry bridge fence painting $2,575
• Pool fence painting $3,550
• Tennis courts windscreen & gate closers $ 3,394
• Tennis courts French drain $4,055
• Legal Fees – Foreclosures – 2 homes $8,810
• Legal Fees – Election Litigation $24,748
• Legal Fees – Homeowner vs HOA, Board & Committee members $8,563

The total cost of these unplanned, unbudgeted expenditures was $326,006. These expenditures were all approved by the Board prior to the expenditures being made. In addition, $24,946 was spent for the 1st payment of the Phase I Landscape Enhancement Plan. This amount was part of Board Designated funds set aside in prior years to cover the cost of Phase I based on the recommendation of the Grounds Committee.

The Following are some FACTS about the Reserve Funds financial results from 2020.

• Transfers from the Operating Fund totaled $151,200 which was the amount recommended by the Reserve Study for 2020.  The original Reserve Study was done in 2008. While updates to that study were done periodically a new study was long overdue.

• A storm-drain drainage project started in 2019 was completed in 2020. The 2020 expenditures totaled $2,522.

• The interior and exterior of the Clubhouse was painted at a total cost of $8,800.

• A 5-ton HVAC unit was replaced in the Clubhouse at a total cost of $7,808.

• The tennis and basketball courts were refurbished including new chain link tennis court fence, repair and painting of the fence poles, painting of the light poles and fixtures, repair and painting of the tennis court gates, resurfacing of the tennis courts and basketball court at a total cost of $23,391.
• Payments made in 2020 for the rebuild of the bridge, walkout and observation deck at the Dock area including surveying, permitting costs and construction costs totaled $201,192. The project which was delayed significantly due to four homeowner protest letters filed with Orange County was completed during 2021. The final total cost was $244,708. The delay caused solely by these letters caused the overall cost of the project to increase substantially. During the approximately three-month shutdown caused by these protest letters material costs increased due to shortages caused by Covid-19. The extra material cost totaled approximately $22,000 and the extra costs of permitting added up to approximately $5,000.

PF Chang’s, Disney and Miller’s Ale House Coming to Lake Nona

By: Bob Schoneman

We live in a vibrant, ever-changing community filled with great families, amazing activities, tremendous schools and a quality of life that would make the rest of the world envious. There always seems to be something new happening or opening. For instance, Lake Nona is getting the first PF Chang’s To Go in Central Florida.  If you’re a fan of PF Chang’s, you’ll now be able to pick-up some Lettuce Wraps, a Kung Lao Dragon Roll and Mongolian Beef on your way home. This new option for dinner will be located near Foxtail Coffee and Boxi Park. I also heard that one of my favorite places to watch a game and get something to eat, Miller’s Ale House, is coming to across the street from Walmart and Culver’s.  Zingers and Sweet Tea anyone? 

With all the new dining options we now have in southeast Orlando, you may find yourself in need of some exercise, as do I. Well, I have more great news. The Lake Nona Performance Club will be opening this summer and to say this place is state-of-the-art is a huge understatement. Programs include ROX Climbing Gym, InClubGolf, Kids in Motion and an Aquatics Center, to name a few. Check it all out at lakenonaperformanceclub.com. 

By the way, have you seen the 17-story glass building going up in Medical City? The Lake Nona Wave Hotel is nearing completion and it is set to open this fall. It looks amazing. Here is how the official website describes the project: “A cutting-edge hotel effortlessly establishes itself as the cornerstone of a flourishing modern community, providing a fresh new landscape that’s nothing short of extraordinary.” The Wave will also feature an evening restaurant which will no doubt have a world-class menu and impeccable service.

In other recent news, the Walt Disney Co. is in talks with Tavistock about potential opportunities in Lake Nona. What that means and what the scope of that could be is intriguing speculation, no doubt, but just the fact that Disney is looking at the Lake Nona area for any project is exciting for many including my Disney crazed family. 

Real Estate in Lake Nona and specifically North Shore at Lake Hart continues to be a red-hot seller’s market.  As of May 5th, 20 new families have purchased homes here during 2021 (two condos and 18 single family homes). The median time on market is a mere seven days! Average price per square foot is just under $158 s/f, with a maximum price per s/f of $182. Inventory remains extremely low, as do interest rates. Meanwhile, thousands of people continue to move to Florida weekly from around the world, which is helping feed the competition for homes, especially those that are move-in ready and priced correctly. There is no doubt that our community of 1049 homes will continue to be in high demand as more and more people discover how amazing our corner of Central Florida is to live, work and play.

Bob Schoneman is a Real Estate Broker who built his home in Northshore in 2005, he is married to Crystal and is Samantha’s father and loves living in this great community. He can be reached at 407-687-1490 or www.expbob.com.

Colored-Lit Fountains Coming this Summer

 

North Shore at Lake Hart’s fountains are undergoing a colorful transformation. As part of the beautification of North Shore at Lake Hart, the HOA Board recently approved two new three-tier, LED fountains for both sides of the NSGC Blvd. at Moss Park Road. The fountain lights will be programmable to reflect the colors of various holidays, bringing added cheer and beauty to our community. Green fountains on St. Patty’s Day? That can be done. Red and green during the winter holidays? Of course!

The project is scheduled to be completed this summer.

Summer Swimming Lessons at North Shore’s Pool

 

A residents’ favorite is back. Swim Kids USA of Central Florida is offering swimming lessons at our community pool throughout the summer. Their highly qualified instructors are offering lessons for infants, toddler, basic swimming and survival swimming for children, stroke technique and adult swimming lessons.

They offer value packages, and their prices are fair and extremely competitive.

Give them a call at (352) 394-3040 or visit www.swimkidscentralflorida.com.

Registration is open.

Friendly Reminder: Keep Dogs on a Leash

 

We love, LOVE the many dogs that also call North Shore home. But may we please remind their owners to please keep your adorable pooches on a leash? That guarantees the dog will always be under the control of its loving owner. It’s a great good neighbor policy, preventing your dog from trespassing on the neighbor’s property during your walk. It also keeps your dog from jumping on people you encounter, ensuring that it has the chance of being properly introduced.

Sundancer Baton Twirlers Krispy Kreme Fundraiser

 

Who can turn a fresh glazed donut down especially if it is for a good cause? A troop of local baton twirlers called the Sundancers is raising funds to travel abroad next summer for an international competition. Be part of their success and place your orders for Krispy Kreme donuts at sdbtfundraiser@gmail.com.

They deliver