July 7 Board Meeting - a Train Wreck

It's a good thing that The Summit's HOA Board Meetings are not live-streamed for the whole community to watch. Last night's meeting was a train wreck. 

During the first 30 minutes there was a noisy child who interfered with the meeting. It's nice that the parent wanted to attend the meeting. The Board President should have addressed the parent at the child's first whimper. 

Law Enforcement's dog-and-pony show was far too long; it was entertaining at times, but too long. Limited them to five minutes, including audience questions.

Previously, the Board announced that questions from the audience would be taken during the public comment section. Then why do they allow questions during Committee reports? 

A woman seated in the first row asked many questions and made many comments. The Board President should have shut her down until the public comment portion.

Then during the public comment period a woman seated behind me raised questions about the annuity purchased by the HOA in 2024, when Danny Trapp was Board President. She displayed her total ignorance of annuities and the facts by making statements that were untrue. 

Linda Potter, Board Treasurer and current Board Member, is the Named Annuitant of the policy. If the application was done properly, Linda has no control over the annuity. She doesn't "own" it or benefit in any way from it. 

The Board has indicated that those who speak during the public comment portion of the meeting will have two minutes and are to identify themselves and state in which Neighborhood they live. Last night's audience member did neither, when she spoke - incorrectly - about the annuity. 

The Board has never disclosed the facts about the annuity, other than the limited information revealed in the 2024 Annual Audit. A $126,352 mistake by the Board (in 2024 when Trapp was Board President) deserves full disclosure.

The May 2026 Financial Operating Results, on Line 1060, list that annuity under Investment Accounts and put it at SC Federal Credit Union. Is that correct?

The financials list the annuity at its purchase price. That is not today's value. In 2025 the value was $20,000 less than the HOA paid for it. No one should accept "Unreconciled" for Line 1060. What is the true Net Surrender Value at this time?

I have heard that Edward Jones (investment company) was involved with the annuity. Did one of its Registered Representatives sell it to the HOA? Is there an insurance company involved or is Edward Jones the funding company?

Association Members should be told the total and true story of the annuity deal. Who put it together? Why didn't the Board vote on it? Who withdrew the $126,351 from SC Federal Credit Union? Who authorized the premium payment for the annuity? Why isn't all of that documented in Minutes of a Regular Board Meeting?

Should the annuity company be asked to cancel the annuity as of its effective date and return 100% of the premium payment to the Association? The approach should be to the Legal Department and the Compliance Department at the Edward Jones headquarters in St. Louis (if it sold the annuity to the HOA), not to the local Registered Representative or District Manager. The HOA might also consider filing Complaints with the SEC and the S.C. Department of Insurance.

Association Members get two minutes for their public comments. At the two-minute mark, the Board President must control the meeting and stop them. The meeting was already behind schedule, because time was not controlled throughout the meeting. 

The Board should have a plan for how to handle any person who refuses to stop talking when the Board President directs them to stop. There is a need for a Sergeant-at-Arms; maybe Ronda Rousey would be a good choice.

The proper way to adjourn a meeting is for the Board President to ask for a motion to adjourn. After Motion and Second, there should be a vote by the Board. That didn't happen last night.