DECEMBER, 2021
www.diamondheadms.org
VOL. 38, NO. 12
From the desk of the President By Ernie Knobloch
he deadline for this article was November 10, 2021, and this pro vides members an update as of that date. It has been brought to our attention that there is some misinformation regarding a pending lawsuit requesting a declaratory judgment regarding covenant expiration. While we normally do not comment on pending litigation, there has been some question regarding why we filed a motion to dismiss the case. While the POA board would welcome a judicial resolu tion to these issues, unfortunate ly the current case is filed in correctly, and as such, any deci sion (positive or negative) would not hold up on appeal on proce dural grounds. We cannot justify spending thousands of your dollars on a case that would not stand, regardless of the outcome; not to mention wasting 23 years. First, it was filed by a corporation which is not a mem ber of the POA and has no standing to sue. Second, it is filed as a declaratory judgment which would require making all members a party, since you all have a vested interest in the outcome. In short, we want any decision on this issue to stand,
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and not be sent back from an appellate court because it was procedurally flawed. Our attorneys have suggested alternative means to get these issues in a case properly before the court, but this case will have to be dismissed first. I know this is an issue that is very important to our future, and especially as to how we will maintain the amenities that drive all of our property values. We appreciate your patience and understand ing during this time. The Club had a very successful October 2021 in terms of usage. The total income from food and beverage areas increased by about 54% above October 2020. Some of this was due to the everchanging Covid situation as well as an uptick in ballroom rentals. Friday, Saturday, and Sunday provide about 67% of the total income. Latitude 30 ac counts for about 68% of the total income in food and beverage. Overall resident use of the Club has definitely increased. Golf and tennis, including pickle ball play, has also increased. As mentioned last month, our kitchen floor must be replaced due to wear and tear. Arrange ments have been made to ac complish this renovation later in December. I’ve mentioned several times
DEADLINE FOR JANUARY ISSUE OF DHNEWS IS DECEMBER 10TH
that the POA has the fiduciary responsibility to supervise and maintain about $20 million dol lars of amenities. Several resi dents have asked me exactly what “fiduciary responsibility” means. Nonprofit boards, such as the POA, have three basic fiduciary responsibilities. These are to maintain/improve the assets of the organization, to act in the best interests of the organ ization and to ensure that money is spent in an appropriate man ner. Not understanding fiduciary responsibilities, or not being wellinformed about them, doesn’t relieve a board of direc tors from any obligations or liabilities they may face if they fail to fulfill these important duties. We have had some serious vandalism occur around the Twin Lakes area. If you frequent that area, please be on the look out for potential problems and notify the police or POA if you see anything suspicious. Several residents have asked why the land behind Rouses is being cleared. Although this has nothing to do with the POA, Coast Electric has purchased the land and is in the process of constructing a new substation for Diamondhead. Presently the only substation for Diamond head is located to the left side of the Twin Lakes. Due to all the new construction and the growth of our community, addi tional power is needed.
As mentioned last month, we’ve been using five different computer programs to deal with properties, food and beverage services, payroll/finances, recre ation services and maintenance. The new, totally integrated sys tem is expected to be up and running by the start of 2022. Everyone is thanked for their continued support of our amen
ities in 2021 and we hope to see you enjoying them in 2022. There’s a New Year’s Eve party at the Club and, as of the dead line for this article, you can still reserve a spot for you and your friends. On behalf of the POA Board of Directors and all the POA employees, we wish you a Merry Christmas and a Happy New Year.
GOLF
SHOP
Christmas Eve: Open 8:00 am - 1:00 pm 9:00 am Shotgun Start. Register in the Golf Shop Christmas Day: Closed New Year's Eve: Open 7:00 am - 5:00 pm New Year's Day: Open 10:00 am - 5:00 pm LATITUDE
30
Christmas Eve: Open 7:00 am - 2:00 pm (Food Service Until 1:00 pm) Christmas Day: Closed New Year's Eve: Open 7:00 am - 6:00 pm (Food Service Until 5:00 pm) New Year's Day: Open 10:00 am - 6:00 pm (Soup & Sandwiches Only) THE
OAK
ROOM
Closed Christmas Eve, Christmas Day, New Year's Eve, New Year's Day TENNIS
OFFICE
Closed Christmas Eve, Christmas Day & December 27 Closed December 31 POA
Closed December 24 & 27 Closed December 31 We wish you and your loved ones a Merry Christmas and Happy New Year!