MINUTES OF THE BANANA BAY CONDOMINIUM ASSOCIATION

BOARD MEETING

HELD THURSDAY, DECEMBER 21, 2006

 The Meeting was Called to Order at 8:30 a.m.

 Establish Quorum of Directors: President Barb Peterson, Treasurer Irene Nishimura, and Director Jim Millican were in attendance. VP Clyde Hoover and Secretary Don Bauman could not attend.

Three owners were present.

 Approval of Minutes: Barb motioned to approve the minutes of the October 17th, Nov 2nd and November 21st meetings as written. Irene seconded, all in favor.

 Foreclosure Status – Unit #604: Mr. Koch had purchased his home in December of 2004, after the hurricane damage was assessed. As soon as the special assessments were levied, he stopped paying all fees to the Association. In June 2005, the past management company sent the account to John Soileau for legal collections action. They filed a lien against the property in July 2005. Over the next year, the Association took the required actions to start foreclosure on the unit in order to secure our lien. At the same time that the foreclosure was set for trial, we received a notice of mortgage foreclosure from LaSalle Bank, his first mortgage-holder.

Our foreclosure case came before the county in early December, 2006. The attorney and manager attended the hearing in Titusville, wherein we bid $1.00 for the property. No one else bid, so the Association became the title-holder of the unit, but with all other liens and debts in place. To date, the attorney has not been able to ascertain the value of all liens. Along with the mortgage holder, there is a second mortgage holder, a state lien, a county lien and the Association’s lien, which is now at $14,000 owed. The attorney said that mortgage holders do not really want to take back a property, so they will work with the Association as the new owner, and place a hold on their foreclosure process if we give a good-faith offer to sell or start paying the mortgage soon.

 The Board has three options: 1) Sell the property quickly to cover all debts, including the Association’s lien. 2) Rent the unit to cover the mortgage payments while still trying to find a buyer for the property. 3) Allow the bank to foreclose, which zero’s out the Association’s lien and gives us a bad debt that will have to be covered by all other unit owners.

 Deb Masse, an ERA Showcase realtor and unit owner, attended to discuss the options. She knows of a company, HMR Consulting, which will deal with the mortgage company and try to obtain a lower pay-off amount, called a “short sale”. His commission is 1% of the value of the loan, but he gets nothing if he can’t lower that mortgage payoff. Deb stated that there are currently 10 townhome units on the market. Seven of them are listed at $199K and the highest is marketed at $235K. There were 4 sales in 2006 with a $235K sale in January and a $200K sale in August. She stated that the best time to market and sell is usually January through April.

 A motion was made by Irene to retain the services of HMR Consulting to contact the mortgage company to determine if the mortgage can be lowered.  In the interim, it was further suggested that ERA Showcase be retained to pursue the sale of unit for a period of thirty days.  However, Deb Masse indicated that the term must be at least 60 days.  Added to this motion was the authorization for Deb Masse to contact the Association attorney to ascertain the required pays offs and full list of debtors and costs.  This was seconded by Jim.

 The Board will meet on Tuesday, January 16th at 5:30 PM to review all costs and make a final decision as to how to further proceed with this unit.

 There being no further business, the meeting adjourned at 9:00 a.m.

 

MINUTES OF THE BANANA BAY CONDOMINIUM ASSOCIATION

BOARD BUDGET MEETING

HELD TUESDAY, NOVEMBER 21, 2006

 

The Meeting was Called to Order at 5:30 p.m.

 Certifying Quorum of Directors: President Barb Peterson, VP Clyde Hoover, Treasurer Irene Nishimura, and Director Jim Millican were in attendance. Secretary Don Bauman was not present. Neal McCulloh from the law firm Clayton & McCulloh was also in attendance. Sixteen owners were present.

 Proof of Notice of Meeting: Manager confirmed that notices had been posted 14 days in advance of this meeting and the agenda and proposed budget was mailed to all owners. There was confusion, however, in that the proxy for owners to vote on lowering reserve funding, which was also mailed to all owners, had the wrong meeting date on it. Neal stated that this could be considered a scrivener’s error (a typo), but if someone contested the validity of the proxy, the vote to partially fund reserves would not be valid. Therefore, owners would have to pay the fully-funded budget while a second revised notice is mailed and meeting held to legally reduce reserve funding. Neal said the membership could either vote to accept these proxies knowing that they may have to defend it to the state if a complaint is filed, or reconvene the meeting after a revised mailout. In the event that an owner would file a complaint that our attorney would need to defend, and the state agreed that the error is a scrivener’s error, then the unit owner filing the complaint would be responsible for attorney fees and costs. Neal said this was considered a small error, but the Board wanted to fully disclose it and the membership would have to choose. Mr. Spurling, unit #1404 motioned to allow the proxies to be used with the error. Betty McCallister, unit # 1402 seconded, all were in favor. The second problem was that we did not have enough membership votes to allow the option of partially-funding reserves, so the meeting was stopped at 5:40 p.m. while proxies were obtained.

 The meeting reconvened at 6:09 pm with Board member Don Bauman joining, one more owner present and more proxies received.

 Neal stated that the Board must pass a budget with fully-funded reserves; it is not optional. The membership can vote to waive or reduce reserves. The option to reduce is a Board decision, and in this case the Board agreed to offer 50% and 25% of needed reserve funding in an alternate budget.

 Asphalt Paving: At the last meeting, the Board approved using $7,695 from paving reserves to re-coat the parking lots. There were some areas that needed additional work. The contractor was willing to replace asphalt near the Publix gate where the garbage trucks have crumbled the pavement, but in 3 other areas, a drain will be needed. JR’s Asphalt bid $1,200 to make those repairs and we also needed 12 more car stops to replace broken ones, at a cost of $720. Therefore the total cost of these repairs was $9,615 and there is $10,795 in the pavement reserves. Clyde motioned to approve the repairs and take a total of $9,615 from paving reserves. Jim seconded, all in favor.

 Budget Issues: Barb stated that the line in the budget for medical insurance for maintenance man Bob Szcerba would show him that his loyalty to the Association is appreciated and his professionalism noted by giving him benefits others in his position elsewhere receive. Irene asked that a $1,000 deductible be considered in the premium paid. Clyde motioned to approve the line item in the budget at $3,600 per year maximum, as the exact cost would be determined with the application for insurance and the preliminary physical. Don seconded, all in favor.

 Insurance: Barb stated that Citizen’s insurance requires full payment up front. Colonial bank offers 8% loans paid over 10 months. The insurance companies offer finance company rates that are usually a bit higher and require 20 to 25% down payments. Citizen’s is often the only option for insuring condos on the Florida barrier islands. Our agent did find one other company that would quote, but it was higher than the Citizen’s quote. The Board voted at the last meeting to obtain a loan for the insurance premiums and that is why we have a line item for interest under insurance on the budget. The appraisal done in 2005 quoted replacement costs at $116 per square foot. People in the industry thought this was high so we were able to obtain a lower-cost appraisal this past month, which quoted replacement costs at $81 per square foot. Therefore, the value of the buildings came down and the premiums followed. Along with this, our flood insurance agent was helpful in obtaining an inspector to help with mitigation credits. The inspector looked at all buildings, went inside all attics and wrote up reports that were then mailed to Citizen’s. Because the roofs were well installed, with proper nail patterns and materials used, we will receive about $20K in credits against our premium.

 We have also been working on a separate credit from Citizen’s for last year’s premium. Because the townhome roofs were new, we should be able to get last years’ credit of $20K also. We checked for all code-compliant credits we could find, but windows and shutters had to be installed in every unit to obtain those credits.

 The insurance company offers a 3% and 5% deductible per hurricane, with a $1,000 deductible for all other perils. The Board voted to go with the 5% deductible to save $16,077 in premiums. If a disaster occurs, each unit would pay an additional $2,850 to cover the higher deductible.

 After all credits were found, the policy for all insurance except flood went from $221,000 to $152,280. The Board thanked manager Michelle Dugan for her research into what was needed to help get the credits.

 Barb used a Powerpoint presentation so the group could see what the Board was discussing. Her pie chart showed that in 2004, insurance was 20% of the budget and in 2007, it will be 38%.

 With no more audience questions, Barb motioned to accept the budget as presented, with fully-funded reserves, at $509 per unit per month, as required by statute. Clyde seconded, all in favor.

 With no further Board business, the meeting adjourned at 6:23 pm.

Clyde then motioned to re-open the meeting at 6:24. Barb seconded, all in favor.

Clyde stated that initially, the current Acordia Insurance agent quoted $242,000 and we are now looking at a $152,000 premium. We saved more than $50,000 by Michelle’s research and help and Clyde motioned to give Michelle a bonus of $500 to thank her for saving the Association so much money. Barb seconded. Michelle thanked the Board with much appreciation. Vote: All in favor. Meeting again adjourned at 6:27 pm.

 

DRAFT

MINUTES OF THE BANANA BAY CONDOMINIUM ASSOCIATION

INSURANCE MEETING

HELD THURSDAY, NOVEMBER 2, 2006

 

The Meeting was Called to Order at 9:30 a.m. Notice had been posted more than 48 hours in advance of the meeting.

 

Directors Present: President Barb Peterson, VP Clyde Hoover, Treasurer Irene Nishimura and Director Jim Millican. Secretary Don Bauman could not attend.

 

Speaker Dave Siperek of Statewide Insurance:

Mr. Siperek handed out proposals for insuring the complex. He stated that the mitigation credits for the townhomes were already removed from the premium based on the appraisal from 2005 and the inspection report just done by Towne Island Builders inspections.

 

He expects to see an additional $3K credit once the midrise reports are in. The 2006 credits for new roofs are also still outstanding, so if Mr. Ranew cannot get that issue resolved, Dave agreed to.

 

A “wrap” policy, commonly called a Differences in Coverage (DIC) policy, covers falling debris, pipes bursting in walls, etc. Citizens’ policy covers only the shell of the buildings so this is a needed policy. It is listed with Great American and has a ten thousand dollar deductible, but after discussion on when the Association would actually file a claim for damages to drywall, the $10K was agreed upon as sufficient.

 

Dave answered questions and stated that if the Board were interested in having him bind this quote, the Board would need to issue him an “Agent of Record” letter to bind coverage.

 

There is no Ordinance/Law coverage in this policy. The ordinance coverage would cover required upgrades if the buildings were demolished, such as sprinklers in units, high impact windows, etc.

 

He quoted the wind policy with both a 3% and 5% deductible. With the 3% wind policy deductible, each unit would have a $3,750 deductible to cover. With the 5% wind deductible, each unit would be responsible for $6,600 of approved repairs in the case of a catastrophe.

 

Banana Bay is not in the windpool zone, but still in the barrier island coverage area. This year, rates increased greatly and only Citizen’s is writing these policies.

 

Barb motioned to accept a 5% wind deductible policy. She motioned to use Statewide as the agent of record. Clyde seconded. After more discussion about the savings of $ 16,077 per year by having a 5% deductible instead of a 3%, all were in favor.

 

A resident asked Dave what percentage of that premium the insurance agents receive. Dave stated that Citizen’s pays 12% of the premium to the company. Dave splits his percentage with his company. On flood policies, he usually receives a 22% commission and returns 12% of it, in the form of a rebate, to the Association.

 

It was noted that Dave Siperek, Statewide Insurance, paid for the inspector to come out and inspect all buildings to obtain the mitigation credits. These cost $200 per building.

 

Further investigation revealed that his premium quote was based on the year-old insurance appraisal values, not the new one being done this year. He expects to see a reduction in value, and therefore premium, but we won’t know the new totals for a few weeks.

 

There being no further business, the meeting adjourned at 10:49 am.

 

Respectfully submitted,

 

Michelle Dugan, CMCA, AMS, LCAM #17226

Reconcilable Differences, Inc.

==========================================================================================================

DRAFT

MINUTES of the

BANANA BAY CONDOMINIUM ASSOCIATION, INC.

BOARD MEETING

held TUESDAY, October 17, 2006

 

•         Call to Order: The meeting was called to order at 5:30 pm in the clubhouse.

•         Establish Quorum of Directors: Directors Present: President Barbara Peterson, Treasurer Irene Nishimura and Director Jim Millican. VP Clyde Hoover arrived later and Secretary Don Bauman could not attend.

•         Approval of August 15, 2006 Minutes: Irene motioned to approve the minutes as mailed to owners. Jim seconded, all in favor.

•         Financial Report: Regarding Collections Accounts, the Owner of unit #504 currently owes $3,400. She asked for a payment plan that was unacceptable to the Board and the attorney counter-offered with the Board’s option of paying 50% down and the balance over 6 months, with late fees and interest accruing. We are waiting on a response. If she is unable to pay as requested, foreclosure will commence. On unit #604, the mortgage company is now foreclosing in addition to Banana Bay for non-payment of fees. We have been advised to allow the mortgage company to foreclose. The mortgage balance is approximately $150K and the Association is owed approximately $17K. If any owners are interested in purchasing this unit in foreclosure, knowing that the Association, as a lienholder, will also have to be paid at closing, it would help the Association out tremendously. We also received a mortgage foreclosure on #103, but they are paying their monthly fees to the Association, so the Association has no lien on the property. Irene stated that the Reserves have been used for a number of repairs this year that we were committed to complete. The balance is now $71,000.

 

•         Unfinished Business:

–        Carports: CRI is now promising to start the work on October 23rd. Unfortunately, this job has gone on far too long, but his quotes, from February 2006 are $7,475 for the SW carport and $8,375 for the NW carport, while other contractors bid $20K to $33,000, so we will continue to wait. CRI is installing an aluminum fascia that looks like the T1-11 currently installed. If this material looks good, we will investigate replacing all wood carport fascia as it needs replacement.

–        Midrise Walkway Repairs/Painting: This, too, is a CRI contract, at $23,650. He now says that this work will commence the beginning of November.

–        Building Plans: Because the only copy was tattered and fading, the plans were scanned and placed on CD, so can be reproduced for anyone who might require a copy.

 

•         New Business:

–        Paving / Seal Coating: This work was last done in 2004. Current quotes are $8,790 from Better Contracting Company, and $7,695 from JRS Asphalt and Seal Coat, who did the previous work. There is additional work needed: Building up the parking area at unit 303, patching at Section 1 by the dumpster, building up the parking area behind 2300 where the boat is parked, and patching at the curve near the Publix Gate. After discussion confirmed that this work is funded from current Paving Reserves, Irene motioned to contract with JRS at $7,695, with the patching to be included. Jim seconded, all in favor.

–        Golf Cart:  New golf carts cost approximately $5,000, based on 2 verbal quotes received. Used carts are about $2,000. The current cart needs batteries, cushions and body work and this would cost the same or more than a refurbished one. It was requested that firm bids, including one from the Cocoa Beach Golf Course, be obtained before further discussion.

–        Sprinkler System Repairs: The controller at the 2300 building needs to be replaced. The hydraulic system we currently have is old but basically still working. A new controller that is able to be modified to work with hydraulic or electric valves is recommended. A quote from Sprinklers, Inc was $1300 for a converter and timer box. Sprinkler Pro quoted $820 for a Rainbird controller with all parts, installed. The Board agreed to the $820 from Operating funds.

–        Document Revisions: The documents, with changes to be voted on, are in PDF form ready to go the Attorney for review. Some Board members felt the attorney supplied a free review in the legal package the Board approved in June, so manager will investigate.

–        2007 Budget: Considerations in next years’ budget include soffit repairs at the townhomes. While CRI was supposed to present an alternative material, that bid was not received. Board believes we can repair the sixteen areas with in-house help. As discussed above, if viable, aluminum fascia on the carports will be competitively bid. The railings at the midrise buildings are a concern. At a past meeting the Board voted to investigate options and costs. Claudia Irvine of Coastal Restoration Services bid $300 to write up specifications and obtain bids on three styles: Aluminum, Thermoplastic or Wood panels to match the existing. The first two options would have to go to the members for vote on a material modification. Dryer Vent Cleaning was done this year and it was found that to ensure safety from fire, and to save electricity in drying times, we need to clean these annually, so $13,000 would be placed in reserves to cover this expense on an annual basis. Employee Medical Insurance is an issue that has come up within the condo industry and with an excellent maintenance man, the Board feels the it is important to offer him this coverage to keep the job at a high professional level. Cost would be $321 per month with a $500 deductible and $20 co-pays. Board agreed to place this line on the proposed budget for discussion and approval at the next meeting.

–        Insurance is the largest cost and largest increase. The entire nation has been affected by wind damage and skyrocketing insurance rates. Last year we went from an appraised building value of $10 million to $24 million. This increased the premiums exponentially. This year, all insurers stopped writing “windpool” areas so the state-run Citizen’s Insurance is the only option. Because they were set up to be the insurer of last resort, they are the most expensive, but at this time are the ONLY insurer of condos in the area. The quote we received from our current agent was originally $228K. After taking carports, garages, mail kiosks and fences out of the value, the premium quoted was $195K for wind and property coverage alone, based on the appraised value and without the “mitigation credits” that Citizen’s is promising. These credits are based on how well-built the roofs are to withstand hurricanes. Another agent recommended we have another appraisal because for each million dollars in building value, the premium increases $8,000. If the 2005 appraisal overstated square footage or re-building cost, a review would save a lot of money. Both agents also recommended the services of inspectors who would fill out the paperwork to receive the mitigation credits. The inspector recommended by Statewide would charge $100 per building and the appraiser he recommended would charge $775. The Board agreed to the costs because of the promise of saving about $30,000 in premiums. Citizen’s Insurance does not allow payment plans and agents use a finance company that charges between 10 and 14% interest. Colonial Bank offers an 8% one-year rate on short-term loans for insurance premiums. Barb motioned to apply for the loan with Colonial. Clyde seconded, all in favor. Last January, management asked insurance agent Josh Ranew to help in receiving a one-time $20K credit from Citizen’s, available to condos with new roofs installed since the hurricanes. We are still working on this credit. When we receive it, the money will be placed in Deferred Maintenance Reserves for future use.

  

Proposed Budget: Per Florida Statute, a proposed budget must be mailed to all owners by November 7th so that they have time to look it over before the Approval Meeting on November 21st. Due to the increases in insurance, Barb proposed offering the owners the option of voting to fund reserves at 30% of need to keep the monthly fee lower. Irene felt a 50% funding of reserve should also be offered.

Most of the budget line items were discussed and management will include a written analysis of the changes to be included with the budget and Reserve Analysis. Clyde motioned to approve the proposed budget as discussed at the meeting. This will be mailed to owners, along with a proxy to vote for their choice of reserve funding. Irene seconded, all in favor.

 

•         Rule Reminders:

1.     Unit owner from 104 has a truck with a paint job that includes advertising for a radio station. He has agreed to cover his truck while it is parked at Banana Bay. Another owner has the same sort of paint job for her business, but is asking for approval first. After much discussion, the Board agreed that as long as the cover is well-fitting and used at all times on our property, the intent of the “No Signs or Advertising” rule is met.

2.     Carts left on walkways in the midrise buildings are becoming problematic. Carts MUST be brought downstairs immediately after unloading. Leaving them at the stair landing also puts us in violation of Fire Code. It is also important to remember that if you bring a cart home, you are responsible to take one cart back when you next visit Publix. The carts are overrunning the dumpster area.

3.     Floor mats are not allowed on the public walkways. Stairways, landings and the walkways around the townhomes are all considered common and a mat is considered a Fire Code Violation.

4.     BBQ grills: Jim Millican met with the fire marshal and he stated that for the townhomes and midrise units, gas grills are allowed if placed more than 10 feet away from overhangs or structures. Owners may also store up to five 2-pound gas cylinders in their garages but not their homes. The large propane tanks are not allowed in or around the multifamily units at all. The small electric condo grills are allowed to be kept on the porches. The clubhouse is a single-unit structure, so does not come under the condo ruling. We can use the barbeque on the clubhouse patio area as long as it is 10 feet from the building or overhang

5.     Pets: Only one pet, under 30 pounds, is allowed in any unit at one time. A visiting pet is looked at in the same way. If you have a pet and a friend brings a pet over for a visit, that is two pets in the unit and is a violation of the rules as well as any pet over 30 pounds. Please ask your guests not to bring pets if you already have one. Owners and guests must also follow the rules of leashing and cleaning up after their pets. Bob is not paid to pick up these messes. Cats must also follow these rules. It offends some residents when cats use their courtyards as litter boxes. Do not allow your pet out alone.

6.     Pool: The health department has written us up for having unsecured pool ropes. It was mentioned at the meeting that two $250 fines were invoked in past years when this rule was not followed. There is also a strict county rule about glass at the pool areas. It is not allowed at all. Please follow these and the other important rules when you visit the pool area. As for the clubhouse, we are again finding vandalism, with air conditioning and lights left on all night and the garbage disposal full of beer caps and doors unlocked all night. Therefore, we have changed the locks on the clubhouse again. It will be open during business hours. If you reserve the clubhouse for a function and pay the $100 deposit, you may have the key for that date.

7.     Landscaping courtyard letters: Many of these letters have been mailed out with contacts to call if weeding and trimming help is needed. These letters are working well as reminders to owners that fences must be kept clear. Trimming plants and palm trees, and removing overgrown trees where needed keeps these fences in good condition.

8.     Motorcycle Parking issue: A grateful thank you goes to the owner of unit #1004 for abiding by our rules. He found, at expense and imposition to himself, an alternate storage area for his motorcycle because they are not allowed on the Association grounds.

 

•         Owner Input:

Garage Sale:  The next community garage sale will be held November 11th at the midrise garages. There will be tables for townhome owner interested in participating. There will also be an Association table. Sales of donated items will offset the set-up cost to have t-shirts made with the Banana Bay logo.

Tee Shirt logo: Barb Peterson has worked with the old files to come up with a slightly-refined logo that will print better. Anyone interested in obtaining a Banana Bay t-shirt, call the office with your interest.

Vandalism: An owner in the midrises had an altercation with a tenant in the townhomes and the police were called out. This owner also said a townhome owner had his wallet stolen from his unlocked vehicle and in the midrises, a locked vehicle had the window broken out to obtain their valuables. He asked that all criminal activity be reported to the management office. This information will then be discussed at the next meeting so all can be aware of it. The police also stressed that this is what they are here for. Call the police (868-3251) if you see any activity you believe to be illegal. They will also be making more rounds through the property each day.

Signage: When the police were called, they said it was very difficult to find correct addresses. It was recommended that we install large numbers on the midrise buildings, on the elevator shaft walls. Foam Source, Heimberger and in-house woodworking were discussed for these and for additional townhome address signage.

 

•         Set Next Meeting Date: The Budget Approval Meeting will be held November 21st. The insurance agent and the attorney will be present to answer questions.

 

•         Adjournment: There being no further business, the meeting adjourned at 7:27 p.m.

 

Respectfully Submitted,

 

 

Michelle Dugan, CMCA, LCAM #17226

Community Association Manager