BB - 2009 Minutes

BANANA BAY CONDOMINIUM ASSOCIATION, INC.

BOARD OF DIRECTORS’ MEETING

HELD DECEMBER 8, 2009

1. Call to Order /Establish Quorum of Directors:

Meeting was called to order by Jim Millican at 6:33 pm in the clubhouse.

A quorum was established with Jim Millican-Vice President, Donna Sands-Treasurer and Jim Miller-Director and Lisa Mullooly-Secretary, who attended via speakerphone. Kathy Watts and Brandi Lowder represented Reconcilable Differences.

2. Approval of Minutes:

Jim Miller made a motion to approve the minutes of the October 20, 2009 Budget Workshop. Donna Sands seconded the motion and it passed by unanimous voice vote.

Jim Miller made a motion to approve the minutes of the October 20, 2009 Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

3. Financial Report:

Due to the early meeting date, the November Financials are not finalized yet. Donna Sands did report from the October 30, 2009 Financials: Association funds that include Operating account funds were $418,184 and the Reserve account funds were $376,864. The association appears to be approximately $16,000 under budget so far this year. There are no irregularities in the P&L. We are staying fairly close to budget and should have some to roll over to next year.

Donna Sands reported that the Accounts Receivables as of October 31, 2009 were $47,360. However, we have had a lot of activity in November. In fact, the draft November Financials shows the A/R as $45,000. We do have an aggressive collection process with RDI emailing the Board so we all can stay on top of these. Jim Millican pointed out that we are holding our own compared to other Brevard County Associations and for the shape of the present economy.

4. Unfinished Business:Board Reorganization:

a.) Don Baumann has tendered his resignation to the Board of Directors and all Board members have received a copy of the resignation and his recommendation for his replacement. Jim Millican read the email aloud, including Don's recommendations. Don has requested Jim Millican fill the President’s position and that Bill Pemberton be appointed to the Board as Vice President. Bill Pemberton accepted this nomination after a great deal of discussion, which included Donnas’ request for Bill Pemberton's credentials.

b.) Jim Millican asked for nominations from the floor. Edna Mahoney nominated John Butler, citing his knowledge of the building and years of experience as a construction business owner. John Butler stated that he works full time and feels he doesn't have as much time or as much experience as Bill Pemberton at this time. Therefore, while John would like to be on the Board upon his retirement, he prefers that Bill Pemberton take the position that is presently open. John prefers to be an advisor.

c.) Donna suggested that the Board appoint John Butler as an official advisor. Jim Millican stated that while he highly respects John's knowledge, and would like for John to be an advisor, he would prefer it to be done in a calmer manner than in the past. Jim Millican further stated that he would like John's opinion on a few of the concrete/structural issues he has recently discovered.

d.) Jim Millican motioned that Bill Pemberton be appointed to serve on the Board. Jim Miller seconded the motion and it passed by majority voice vote with Donna Sands opposing. The reorganization of the Board will take place in a meeting immediately following this meeting.

5. Concrete Restoration - Update:

a.) Kathy Watts reported that Building 2300 is almost done and Building 2400 has been started. Jim Millican reported that some owners are watching their neighbors railings being replaced, thus wanting their railings replaced. Only the railings that were dangerous were replaced. Jim Millican personally dealt with an owner who felt her railings should be added to the list. Jim tried to shake her railings and they did not budge, so in his opinion, they were solid. This owner also requested that her screen be replaced. Jim pointed out to all owners that it states in the Rules and Regulations that if the Association damages a screen, the Association will replace it; otherwise, it is the owner's responsibility. Brandi is following up on whether Claudia of Existing Structures has inspected this railing or not; and will request that she inspect/re-inspect it.

b.) Jim Miller and Jim Millican have seen rust coming through the concrete as well as uniform holes in front of the 2400 building. Each described in detail their findings and requested John Butler's professional opinion. John stated that he would have to see them to know what may have caused them. Discussion ensued regarding John Butler's rights and responsibilities as an owner regarding access to other owners' units to inspect. John's opinion of the uniform holes is that since these are not load-bearing structures, the holes could easily be patched by maintenance. He did not address the areas of rust. It is unknown if the engineers have seen or inspected these areas. Jim Millican will meet with Claudia and have this reviewed.

c.) John Butler stated that the engineers are gouging the Association by making a mountain out of a mole hill. It is his opinion that the concrete restoration project is completely unnecessary since the columns have hollow cores and the areas being restored are cosmetic only and not structural. Jim Millican disagreed stating that John Butler was not with the Board when the engineers did the hammer test. During this test, the hammer easily went through the concrete because the concrete has turned to powder. There was a rather lengthy and slightly heated discussion about John Butler's opinion vs Existing Structures Engineering Inspection Report. Finally, Jim Millican stated that he will need to see more restraint on John's part before he is comfortable naming him as an advisor. Jim Millican announced that Bill Pemberton will be overseeing the concrete restoration project.

6. A/C Stands-2400 Building Update:

a.) Donna reiterated how the A/C stands became a problem, which is due to the codes for A/C's changing over the years. She stated that she emailed the Board to let them know that she had contacted Mike Hemming again and he reduced his bid from $4,200 to $4,000. This bid is to expand the existing stands and repair the roof. New stands will raise the proposal $800 for a total of $4,800. Rock Home Improvement's bid is $2,650 to expand the existing stands and repair the roof with no bid for new stands. John Schaffer Roofing's bid is to replace the existing stands and repair the roof for $3,500.

b.) Discussion ensued regarding who should pay for the new stands. Donna stated that the 2 owners that got their A/C's replaced should be responsible because permits were not pulled. Guido Roncallo stated that the City of Cocoa Beach told him that they have a record of Mr. & Mrs. Hill's permit. Donna stated that they told her that there was no record. Donna read the Florida Statute aloud and suggested that these 2 owners pay half and the Association pay half. Jim Millican stated that since this happened in the mid to late 90's and there was no Association policy in effect, it would not be legal to charge the 2 owners for this expense. Jim Millican made a motion that the owners that replaced their A/C units (Mr. Guido Roncallo and Mr. & Mrs. Hill) should not have to pay half of the roof repair and A/C stand replacement. Jim Miller seconded this motion and it passed by majority voice vote with Donna Sands not placing a vote.

c.) An owner asked if A/C replacement requires Board approval. Jim Millican answered that a policy was set forth in the last Board Meeting. The policy is that mid-rise owners must get Board approval since a crane has to be used, thus affecting other owners; but the townhouse owners do not need Board approval as their replacement has no affect on any other unit.

d.) Jim Millican pointed out that the Rock Home Improvement bid would not be considered due to poor quality of workmanship in the past. Bill Pemberton motioned to go with the lesser bid that replaces the stands made by John Schaffer Roofing. Jim Miller seconded this motion and it passed by unanimous voice vote.

7. Contract Spreadsheet:

Kathy composed a spreadsheet of all the vendors for Banana Bay with columns showing their name, contract date, whether it’s automatically renewed, amount of the contract (per month) and termination information. This was sent to the Board the end of October. Donna Sands edited this spreadsheet to add contracts that she felt needed to be added. Therefore, the Board will review the new version and discuss at the next Board meeting. The first contract that is up for renewal is the fertilization and grounds pest control done presently by Pearce Power Spraying. The Board will not renew this contract until a bid can be submitted by Blacks and reviewed by the Board. After Black's proposal is received, the Board will make a decision through emails. All other contracts will be discussed at the next Board meeting.

8. New Business:

a.) Pool Repairs:

1.) Kathy reported that we were cited by the Health Department's Inspector for the railing on the south pool. The railing attachment in the pool has come loose, which is dangerous. The pool will have to be partially drained to make this repair, but it has to be done. The signs posted at both pools have been cited due to a code change that now requires 4" lettering rather than the present 3" lettering as well as a new requirement to list the times of operation. Kathy is having corrections made to the signs and will get the railing repair scheduled.

2.) Jim Millican stated that he would like to have the south pool deck painted now that it is dry season, since the north pool deck was done last year. This will cost between $500 and $600 with Bob doing the work.

3.) Jim Millican is looking into resolving the car wash flooding of the walkways in front of 2 of the units by the car wash and the flooding of the car wash area itself. He believes Bob can resolve the flooding issue by adding rock and diverting the water from the walkways into the ditches, and by adding asphalt to the sunken spot(s) in the car wash pad. This will make the 2 unit owners very happy, and will make the car wash usable again. Bill Pemberton made a motion to have Bob do both of these projects. Jim Miller seconded the motion and it passed by unanimous voice vote.

b.) Committees:

1.) Grounds: Edna Mahoney, owner, asked if the vegetation letters had gotten any results. Kathy reported that we actually had an excellent response and almost all of the courtyards have been brought into compliance.

2.) Bids/Building: Since there have been a lot of questions regarding what renovations need City Permits, Carol Haberman, owner, picked up a handful of brochures from the City that list the permit requirements. The Board has not had time to review these, but they have been placed in the club house for any owners who may be interested in this information.

9. Owner Input:

a.) A couple of owners of units in the 2400 building stated that it is very difficult to hear their TV in their units due to the A/C noise from the roof. Jim Millican pointed out that the rubber grommets and the new A/C stands should alleviate this issue, but will look into it if it is still a problem after stand and roof repairs have been completed.

b.) John Butler asked what Brighthouse is responsible for with regard to the cable and wiring. Kathy answered that Brighthouse is responsible for everything outside up to the home plate, but the owner is responsible for wiring, cable, etc. inside the unit.

c.) Carol Haberman asked about cutting the trees at unit 1504. This unit is vacant and in foreclosure. The Board will look into this to determine if it is legal for the Association to have maintenance clean up this courtyard.

d.) The owner of Unit 1404 stated that the pool pump is producing a high-pitched sound that is keeping him awake. Jim Millican will ask maintenance to check into this.

10. Next Meeting Date:

Next Board meeting is scheduled for Tuesday, January 19, 2010 at 6:30 pm.

11. Adjournment:

Bill Pemberton made a motion to adjourn at 8:27 pm. Donna Sands seconded and it passed by unanimous voice vote.

Respectfully submitted,

Brandi Lowder Kathy Watts, CMCA, LCAM #27668

Administrative Assistant Community Association Manager

Reconcilable Differences, Inc. Reconcilable Differences, Inc.

A quorum was established with Jim Millican, Jim Miller, Bill Pemberton and Lisa Mullooly, who attended via phone. Donna Sands, was not able to attend. Kathy Watts and Brandi Lowder represented Reconcilable Differences.

Bill Pemberton motioned for Jim Millican to serve as President. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Jim Millican motioned for Bill Pemberton to serve as Vice President. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

With no further business to discuss, the Organizational Meeting was adjourned at 8:32 pm.

Meeting was called to order by Jim Millican at 7:45 pm in the clubhouse.A quorum was established with Jim Millican-Vice President, Donna Sands-Treasurer and Jim Miller-Director. President Don Baumann and Secretary Lisa Mullooly could not attend. Kathy Watts and Brandi Lowder represented Reconcilable Differences.

Confirmed by Jim Millican and Kathy Watts that an Affidavit of Mail out of the proposed budget was duly completed and filed in the BBCA Meeting Minutes book at RDI, and notices of this meeting had been posted more than 14 days in advance.

Jim Miller made a motion to approve the minutes of the September 22, 2009 Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Kathy Watts reported that 4 owners voted for a fully funded reserves and 60 owners voted to partially fund reserves in 2010. Jim Millican stated that the Board has to approve a budget with fully funded reserves. Jim Millican made a motion that the Board bows to the will of the owners' request to partially fund reserves at 50%. Donna Sands seconded the motion as stated and it was approved by unanimous voice vote.

Donna asked if in the future, can we go to 40% or 45% partially funded reserves or are we tied to only 50%? Kathy stated that as we build the reserves, the Board can decide what lower funding option the owners can vote on.”

Donna asked how soon we need to get the coupon printing started as the assessment fees may need to be adjusted once we receive the actual cost of the insurance premiums. Kathy stated that we have to get the coupon book order submitted in the next week or so as we have to get them mailed out 30 days in advance and it takes a while for the bank to get them back to us. Kathy further stated that if the insurance premiums are significantly lower, then we can adjust the fees; however, she really does not think that there is going to be a big enough change in the insurance premiums to affect the 2010 monthly maintenance fee amount.

Jim Millican stated that he was glad that the first workshop had been held as it made tonight's meetings much easier. While an owner can organize and hold a meeting with owners about condominium association business without the Board, it is not appropriate for a Board member to do this without the rest of the Board members' knowledge. Therefore, in the future, if a Board member wants to hold a meeting to discuss association business with the owners, then he/she should uphold his/her responsibility to inform the rest of the Board of this meeting.

Jim Millican made a motion to approve the proposed 2010 budget with a monthly assessment amount of $435 per unit. Donna Sands seconded the motion as stated, and it was approved by unanimous voice vote.

Jim Millican asked if everyone had taken advantage of the wind mitigation forms. These are very important as they provide a significant savings on the owner's insurance premiums. If an owner has not requested or received a copy of the wind mitigation form for their building, or if they don't understand it, they should notify management, who will provide the form and answer any questions.

Manager, Kathy Watts, confirmed that each of the Board members had a copy of the carport evaluation report that had been done by American Eagle. When we get closer to having the money to begin this project, management will obtain bids based on this evaluation.

Donna Sands stated that this was discussed in the last meeting and since there were a lot of questions, after that meeting, Jim Millican sent a follow-up email asking Donna to oversee this project.

The A/C units do not have bigger compressors; rather, the code has changed requiring a fan to be installed on the compressor, which is why these newer units are so much larger than the older units. She has provided a bid submitted by Mike Hemming Construction to: remove and reset four A/C units at the area of the roof leak and re-use the existing stands; remove and replace roofing at this area, which is approximately 250 sq. ft.; replace any damaged decking and reinforce trusses as necessary for $4200. This price includes all required permits. There is also an option to replace the existing A/C stands using a larger stand to accommodate these larger units for $850. John Shaffer's bid for replacing the stands and fixing the roof is $3500. She noted that while Mike Hemming Construction's bid is higher, he is open to negotiation and comes highly recommended. He will have to work with a certified A/C installer to remove and reinstall the A/C units from and then back onto the stands. Discussion ensued regarding expanding the existing stands or replacing them and if the 2300 building's stands should be included. It was agreed that: 1) Donna would see if Mike Hemming would match John Shaffer's bid; 2) the A/C stands would be replaced rather than expanding existing stands; and, 3) the 2300 building would not be included.

Donna Sands stated that the first A/C installer of the larger units should have adjusted the stands at the time of the installation; therefore, the first contractor was negligent, and then the second contractor made it worse by not expanding the stands at the time of that installation. She noted that permits were not pulled for either one of these installations, nor was Board approval requested or given. Furthermore, the new units were not secured very well causing them to sway in the wind resulting in the damage to the roof. She pointed out that a crane has to be used to get an A/C unit onto the roofs of the mid-rises, which could be a liability issue, especially without permits and Association notification. Therefore, Donna feels that this is owner negligence, and she cannot justify all owners paying for this negligence. However, she is not sure how we can bill these owners for the damage and the stand replacement. She suggested that since all new A/C units will be larger due to the change in code, it should be the owner's responsibility to pay for the expansion of the stand when installing a new A/C unit. However, she doesn't know which owner should pay for the expansion on future installations as there are four units per stand. This may have to be divided between the four owners of the units when the first new unit on that stand is replaced. Action item: Kathy will draft a letter for Board approval notifying Ms. Hill that the Board needs to discuss with her the problems caused by her A/C unit replacement.

Jim Millican made a motion that any owner in a mid-rise unit having his/her A/C unit replaced is required to get a permit and to notify the Board of Directors prior to the installation. Jim Miller seconded the motion as stated. This motion was approved by unanimous voice vote. The Board also agreed that when any owner in any Banana Bay Condominium unit is doing or having any work done on their unit, they should notify management. RDI will then notify the Board of Directors and research whether this work requires Board approval.

Jim Millican announced that Lorinda had been terminated due to her excessive absenteeism, and Nick Wolfard had been hired for this position. He lives on-site, which is a great asset for emergency maintenance issues. However, owners should still call management because in an emergency situation, it is management's decision as to who should be called (Bob, Nick, or a contractor).

Kathy Watts stated that she recently met with a Cocoa Beach Police Officer and he stated the Board can sign a form and give it to the police. This will allow us to trespass someone who does not live here and is causing trouble and includes any guest of an owner. Then a patrolling policeman can trespass the person without owner or Board complaint or a Board member can call to have a person trespassed. The Board agreed to do this; therefore, Jim Millican signed the trespass form. Action item: Kathy will submit this to the Cocoa Beach Police Department.

Jim Millican made a motion to designate a Finance Committee composed of five members, who will review the financials with their main function being to work on the budget after a draft budget has been done by management. Donna Sands seconded the motion as stated and it was approved by unanimous voice vote.

The next Board meeting is scheduled for Tuesday, December 8, 2009 at 6:30 pm. This will be the November/December Board of Director's meeting.

Jim Millican made a motion to adjourn at 8:48 pm. Jim Miller seconded and it passed by unanimous voice vote.

Meeting was called to order by Jim Millican at 6:33 pm in the clubhouse.A quorum was established with Jim Millican-Vice President, Donna Sands-Treasurer and Jim Miller-Director. President Don Baumann did not respond, and Secretary Lisa Mullooly could not attend. Kathy Watts and Brandi Lowder represented Reconcilable Differences in person and Michelle Dugan represented Reconcilable Differences via speaker phone.

a.) Jim Millican stated that since there had been an owner budget meeting already, he mainly wanted to hear from the owners, who did not attend the first budget workshop.

b.) An owner asked about the $12,000 in the 2010 operating budget for maintenance. Shouldn't that be in reserves? Kathy stated that this was to make sure we have enough for the carports before the end of the year.

c.) Donna Sands requested that we go over some things that were discussed in the first workshop because she felt that some amounts in the operating budget could be cut where reserves really could not be touched. Jim Millican stated that he, Jim Miller, and Kathy Watts met today and came up with some areas that can be cut as well. Donna asked to go over the budget line by line and Jim Millican stated that this would be done in the Board's budget meeting, which was being held immediately after this meeting, so the budget could be voted on.

d.) Donna noted that the first thing they noticed in the draft proposed budget that was mailed out was that the proxy ballot stated 2009 instead of 2010. Kathy stated that she also saw this and emailed the Board with the correction after consulting with the attorney, who stated this proxy is legal and binding. Donna said she did not receive this email and Kathy stated she would research the problem to see why the email didn’t go through.

e.) Donna pointed out that another issue that the owners felt very strongly about during the first workshop was that the budget workshop be scheduled prior to the first draft of the budget being prepared in future years. Jim Millican stated that this had been discussed in their meeting earlier that day. He suggests that we use the example of one of Kathy's other properties: in future years, we create a five-person budget committee to review the proposed budget sent from RDI. The budget committee would then meet, review the proposed budget and adjust items they feel are beneficial to all owners, then send the revised version to the Board for their review. The Board will then conduct a meeting to approve the mailing of the proposed budget to all owners. Donna asked if this would allow all voices to be heard. Jim Millican answered yes, owners will have input at the budget meeting that would work off the budget committee's proposed budget.

f.) Owners requested that the management firm list on the agenda for Board Meetings any and all contracts at least two months in advance of expiration date, in order for the Board to assess and determine if new bids on contract services are warranted. Kathy stated that she could create a spreadsheet listing all contracted services and their renewal date. All Board members are in possession of a copy of the existing contracts. This could be discussed when a contract was due to expire and bids for certain services could be collected, but the Board needs to keep in mind that we cannot trade quality of work for cheaper prices. All agreed to this.

g.) An owner requested that the Board consider approving a salary cap for all Association employees, and requested that gas receipts and hardware receipts be researched as these seem excessive. Main points were the continuous purchase of new paint brushes and rollers instead of re-using the same ones. Donna would like the opportunity to review the need for a purchase before the purchase rather than after the fact. Jim Millican will look into this.

h.) A couple of owners were concerned about the budget showing the full-time maintenance employee making $50,000 per year. Donna Sands pointed out that this was his gross pay, taxes, medical insurance, vacation, and sick days. Donna stressed that maintenance personnel does not make $50,000 per year in wages.

i.) The total adjustments after this discussion brought assessment per unit to $435 per month. However, the determining factor will be the insurance premiums.

j.) Jim Millican thanked Donna and all owners for discussing the budget rationally and amicably.

Jim Millican made a motion to adjourn at 7:45 pm. Jim Miller seconded and it passed by unanimous voice vote.

A quorum was established with Jim Millican-Vice President, Donna Sands-Treasurer and Jim Miller-Director. President Don Baumann and Secretary Lisa Mullooly could not attend. Kathy Watts and Brandi Lowder represented Reconcilable Differences.

Donna Sands made a motion to approve the minutes of the July 29, 2009 Board of Directors’ meeting. Jim Miller seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of August 31, 2009, Association funds that include Operating account funds, 2 CD’s and Money Market funds total $375,309. We did pull the $90,000 CD at Legacy bank and put it into a 6-month CD at Sunrise Bank. The $77,962 CD at Sunrise Bank rolled over into a 6-month CD at Sunrise Bank as well. Our Reserve funds as of August 31, 2009, sit at $339,169 with $16,660 deposited monthly to fund these Reserve accounts. Things are looking good, except for our Account Receivables, which continue to grow from people who are behind in their assessments. This includes 17 accounts, which are past due for a total of $41,756. Three of these are under payment agreements with the Association, and six of these are in foreclosure. We are staying on top of foreclosures, and Tina has been great working with a new collection person that has been doing some things for us.

Insurance Discussion: Josh Ranew of Ranew Insurance: The main reason for his being here is the wind mitigation forms. The wind mitigation forms give assurance to the insurance providers about the construction integrity of the buildings and roofs. It also gives the owners the same discount that the Association receives. The State of Florida keeps changing these forms every six months; however, we have the new forms, which have been signed tonight. Josh will put these into electronic format enabling RDI to email them to owners that request them. If an owner gives their insurance company the wind mitigation form for their individual building, they will receive a discount if presenting at renewal or a refund if renewed earlier in the year. RDI management received several requests from owners for a copy of the new wind mitigation forms. Kathy asked these owners to please send RDI an email with their name and unit number. RDI needs the unit number as the wind mitigation forms are done by building. When Kathy receives the CD from Josh, RDI will email the electronic version to those who have made requests.

Concrete Restoration—Bid Results: Claudia Irvine, Existing Structures, presented this report: The Board has received a spreadsheet of the bids for the concrete repairs needed on the two mid-rises on the water front. The bid results are: Concrete Restorations, inc. (CRI) at $40,079, Cosmopolity Construction (Cosmo) at $43,944.70, and NAC Seaside (NAC) at $48,307. The lowest bidder is CRI. The spreadsheet presented to the Board gives the entire bid by line item for each company. There are no discrepancies between these bids and these bids are lower than Claudia expected. She believes this is due to the present slow down in the construction industry. Jim Millican asked if there was any protection regarding schedule deadlines and time overages as CRI has been known to be slow in the past. The Association has been very happy with CRI's work in the past, but sometimes Paul is slow. Claudia said there is a Liquidated Damages clause that can be added to the contract that provides this type of protection. If the contractor is over the deadline, he must pay a per day penalty; however, if he is early, he gets more money as reward for being early. Standard or going market rate is $250/day penalty and $150/day reward. Claudia further stated that she has not had a problem with CRI or NAC in the past unless there were extenuating circumstances, such as a hurricane. Claudia said that once the damaged areas are cleaned up, the damage is not as bad as it appears before it is cleaned up. Claudia assured everyone that when assessing the repairs needed, she over estimates. However, she recommends a 20% contingency on top of the base bid price. This is recommended because concrete repair is not an exact science. The extent of the damage of the steel/re-bar under the concrete cannot be determined until the concrete has been removed to expose the underlying re-bar. Donna Sands pointed out the CRI has been approved to do the gutter work, which cannot be done until the concrete restoration project has been completed. Therefore, CRI will already have their equipment on site if approved for the concrete restoration project, and can begin the gutter work immediately. Claudia pointed out that NAC has been very busy, which is probably why they did not give a start date on their bid. Jim Millican made a motion to hire CRI, who is the only contractor that gave a start date (November 2, 2009), and is the only bidding contractor that is familiar with and has a proven track record at Banana Bay. Donna Sands seconded the motion as stated and the motion passed by unanimous voice vote. This work will begin on November 2, 2009, and Claudia will get the contract to Kathy as soon as possible.

Umbrellas and Chairs Update: Manager, Kathy Watts, presented this report: The umbrella and chairs are already here and one umbrella is already broken because people are cranking it too tight and breaking the string. Jim Millican stated that the new umbrellas look very nice, but he wants to wait to repair this umbrella until he sees how the other umbrellas and chairs are treated. He suggested that instructions for umbrella use, opening and closing be placed on the tables.

A/C Stands-2400 Building Update: Manager, Kathy Watts, presented this report: Two bids have been received from Rock Homes and John Shaffer Roofing. There is an $850 difference; however, Kathy stated the Board did not appear to be happy with Rock Homes' work that has been done here in the past as Bob has had to call them back out on more than one occasion and that she has been very satisfied with the work from Shaffer Roofing. Donna Sands asked why the drywall repairs were not included in these bids. Kathy explained that the roofs have to be fixed before getting bids for the drywall damage as there could be more damage until roofs causing damage have been repaired. Also, the bids for the drywall repairs will be done by different companies, such as LB Drywall, who has done work here before, or Ed Osborne. The bid from Rock Homes is $2650 and the bid from John Shaffer Roofing is $3500. Donna Sands stated that the bid from Rock did not include replacing the stand. They would remove and remount the legs further apart to accommodate the larger units. John Shafer's bid did state the AC Stands would be replacing and replacing two stands as well as repairing the decking, rafters, and other damaged roofing areas. In order to update the owners as to why these repairs were needed, Jim Millican explained that both of the mid-rises have stands for the outside A/C units on the roof. However, the 2400 building A/C stands were too small for two larger units that have been purchased by owners. Also, when the stands were initially installed on the roofs, they were simply screwed into place and not attached to the trusses. The large A/C units and the stands not being anchored caused the stands to be unstable allowing the wind to rock the stands and damage the roof. It was finally agreed that all of the stands on both mid-rises should be inspected and that three bids should be obtained to update all of the stands as well as repairing the roof damage on the 2400 building. Donna also wants to question the original contractor about the stands and the A/C installers that were hired by the owners. Kathy agreed to look into Guido's file to see if the Board approved the installation of a larger A/C unit. Kathy will also get a third bid and have Rock Homes and John Shaffer submit new bids that include updating all of the stands.

Approve 2010 Proposed Budget for mailing: This approval is only to mail the proposed budget to the owners. Once the owners have received a copy of the proposed budget, a budget meeting will be held to approve or change the proposed budget. Jim Millican motioned to approve the mailing of the proposed budget and to then schedule a budget workshop to discuss the budget by line item. Donna Sands seconded the motion as stated and all agreed by unanimous voice vote.

Jim Miller, Director, presented this report: As previously discussed the mulch was over budget. It was initially proposed as 125 yards of mulch at $39 per yard for a total of $4,875; however, the total mulch used was 180 yards increasing the cost to $7020. Jim Miller will discuss the overage with Scott from LBS.

Kathy, Manager, stated that the only bid she has pursued is the bid for key cards for the clubhouse, which was $6500 for a complete key card system. While this system would allow the Association to know who was committing the vandalism during the summer to the clubhouse, $6500 is way too much for this. Jim Millican stated that since the kids are back in school, we can take a chance on keeping the clubhouse open again. Kathy will have Bob put the locks back on allowing the amenity keys to work on the clubhouse locks. Kathy will also have Bob keep the locks that the amenity keys do not work for in storage to be used again next summer. Jim Millican stated that the pool table equipment will continue to be locked up and only available at owner request as the balls are expensive and have been disappearing. The clubhouse presently has one full set of balls as well as a partial set as backup. He requested that Kathy watch for sporting good clearance sales to purchase another set so we have two full sets available.

Kathy introduced Brandi Lowder as the Administrative Assistant for Reconcilable Differences. When you call the management office, Brandi is the one that answers the phone. She is taking the minutes tonight because Tina, who usually takes the minutes, is ill.

A new printer is now in the office and we got it for free. The old printer was terminal, so Bob called Brother, who sent a new upgraded printer to replace the old one, and we only had to send back the old one. Therefore, because Bob kept after Brother through their web site and over the phone, we got a new printer for free and did not even have to pay shipping costs. The owners agreed that Bob is doing an excellent job.

Notice of Meetings: An owner wanted to know how far in advance notices should be posted for BOD meetings. She watches the mailbox area for these notices and did not see the notice for this meeting until yesterday. Kathy, Donna Sands, and Jim Millican confirmed that they are required by law to post notices 48 hours before a BOD meeting and that the notices were posted last Friday for this meeting. Donna Sands suggested that we post meeting notices on the web site and Kathy agreed to this. Edna Mahoney specifically thanked Kathy for putting the agenda on colored paper.

Carport Replacement: An owner that lives in the 2100 area asked about the carport replacements. Jim Millican and Donna Stands stated that because it will cost over $40,000 to complete this, and we simply do not have the money to do it yet, this project is on hold until next year. The owner stated that the carport is falling apart causing rust and wood to fall on the ground, which is dangerous. The owner further stated that he has been diligently picking up this debris for fear of children being hurt by it. Kathy thanked the owner for this

Assessment Question: An owner is concerned that the concrete restoration and other projects will cause a special assessment, which in this economy is not an option for most owners. Donna encouraged this owner to attend the budget workshop to help them create a budget to pay for the projects needed without a special assessment. Jim Millican stated that raised assessments and special assessments are a concern of all of the Board members. However, as Donna has pointed out, repairs and things come up; and it is the responsibility of the Board to get these repairs and things completed.

-Barbara Salber asked who paid for the dock and who ran into it. Jim Millican stated that we do not know what happened to the dock. No one was seen running into it, so we do not know what actually caused the damage. The Association paid for the repairs. Barbara asked why this wasn't covered by insurance, and Kathy pointed out that the cost of the repairs was far less than the deductible amount of the insurance.

Board Member eMails: Concerns were raised about Donna Sands apparent lack of knowledge regarding current affairs of Banana Bay. Donna stated that she gets the emails she gets. Jim Millican stated that all Board members get the same emails and that when a Board member replies to an email whether it is from the management company or another Board member, they reply to all so all can see the ongoing discussion. Jim Miller is the only one that doesn't see these emails as he doesn't have a computer.

Next Board meeting is scheduled for Tuesday, October 20, 2009 at 6:30 pm, and this will be the budget workshop meeting.

Jim Millican made a motion to adjourn at 8:35pm. Jim Miller seconded and it passed by unanimous voice vote.

A quorum was established with Don Baumann-President, Jim Millican-Vice President, Donna Sands-Treasurer and Jim Miller-Director. Secretary Lisa Mullooly could not attend. Kathy Watts and Tina Lybarger represented Reconcilable Differences.

Don Baumann made a motion to approve the minutes of the June 16, 2009 Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of June 30, 2009 Association funds total $360,318.51; this includes Operating account funds, 2 CD’s and Money Market funds. Operating account balance $54,796. Reserve funds total $305,500 with $16,660 deposited monthly to fund reserve accounts. The $90,000 CD at Legacy bank is up for renewal, RDI will check renewal date and current CD rates. Don Baumann received a call from a Legacy bank representative and current CD rates at Legacy bank are: 15 month term 2.15% and 18 month term 2.35%. Donna would like to research rates for a shorter term, since with the concrete restoration project coming up the funds will be needed. Net income as of June 30, 2009 is $881.00 and net income year to date is $19,200.00. Accounts receivable accounts are $33,500. This includes 14 accounts of which 5 are in foreclosure.

Kathy Watts of RDI gave the status of the restoration project: Existing Structures is in the bidding stage. Once all bids are received, the engineer will review the bids, compile a report and set up a meeting with the board to go over the bids. This should happen within the next few weeks.

Bid received from American Eagle is $40,500 to remove section #4 - 6 bay carport and construct a 7 bay carport to include an entryway for emergency access. Donna Sands asked if a revision to the carport was researched and if a bid was received. Kathy Watts stated she has spoken to American Eagle and the labor and costs to revise the existing carport in lieu of new construction exceed the costs of new construction. Don Baumann stated he does not see included in the bid the addition of rebar to the concrete bases to make it more stable. Kathy Watts stated that American Eagle constructed the other carports with rebar installation and feels the bid includes the rebar. Kathy Watts stated she would contact American Eagle for confirmation and a bid revision to include the rebar installation in writing. Donna Sands stated there is $16,235 in the reserve funds for carports. $1990 is funded to this account monthly and at year end the account will have approximately $28,000, which is not enough to complete section #4. Kathy Watts stated Concrete Restoration has asked to bid on carports and she gave the ok to bid. Donna Sands stated that section #4 is not the only section in need of the emergency access space and funding to the carport account will need to be evaluated for the 2010 budget. Don Baumann made a motion to table the section #4 carport construction until next year. Jim Millican seconded the motion and it passed by unanimous voice vote. Completion of section #4 carport tabled until next year.

Two bids for gutters on the south side of 2300 building have been received. American Eagle submitted a bid of $6,210. Concrete Restoration Inc. submitted a bid of $6,498, with a two year warranty. Both bids include 7” gutters and 4” downspouts to match the existing gutters on the north side of the building. Concrete Restoration Inc. completed the north side gutter installation a few years ago.

Donna Sands did not feel the gutter should be completed until after the restoration work is completed and the board agreed. Don Baumann and Jim Millican stated Concrete Restoration Inc., although at a higher cost, is the best company for the job based on work completed on the north side of the building and the board is happy with the results. Don Baumann made a motion for Concrete Restoration Inc. to complete the gutter project, with funds for this project to be taken from roof reserves. Jim Millican seconded and the motion passed by unanimous voice vote. This work will commence immediately following concrete restoration.

Kathy Watts of RDI stated the appraisal has been completed. Wind Mitigation forms have also been completed and she will email the appraisal to the Board.

Jim Miller stated they are close to the final walk through with LBS and mulching will begin. Jim Miller asked Edna Maloney, committee member, if she is available Monday August 3, 2009 for the walk through and she confirmed. Jim Millican stated he might also be available. Jim Miller will contact other committee members for availability and will also contact Scott of LBS to schedule the meeting. They will meet in the clubhouse at 9:00 am Monday August 3rd.

Owner Debra Wolfard from 1303 asked if the association or the owners are responsible to replant in the areas where ruella has been removed. She is not upset the plants were removed, but does want something planted in its place. Jim Miller stated owners can replant in these areas and the board is compiling a list of approved plants for these common areas. Owner Barbara Salber stated she is very upset over the removal of the plants from outside of her courtyard. She stated the plants were beautiful, well maintained Mexican petunias. She asked who gave the landscapers the approval to have them removed. She also stated the handbook says owners have the right to plant whatever they want. Jim Millican agreed the handbook does state this but it also states the plants must be maintained and kept away from the fence and hers were not. Jim Millican had pictures of Barbara Salber’s unit which show proof her common area was not maintained. Don Baumann stated regardless of what the handbook says, the association documents override the handbook on the common property. The board is working on compiling a list of approved plants that owners will be allowed to plant outside their courtyards in the common areas.

Dock: Four bids were received to complete the repairs of the dock. Wescon Construction bid $475.00. Wescon already has a barge in the water, they are working on a dock next door. Frank’s Fencing & Decking bid $580.10. Waterfront Solutions bid $1280.00. Custom Docks Marine Contractors, Inc. bid $7,950. Don Baumann made a motion to hire Wescon Construction. Jim Miller seconded and motion passed by unanimous voice vote. Mary Jane McDermott asked when the repairs would be completed. Kathy Watts stated the repairs would hopefully be completed by this weekend.

Don Baumann made clarification of an email he sent to the Board recommending a $300 per owner special assessment for concrete restoration. It was rumored the email stated a $600 special assessment. He also asked to have the minutes reflect that he is not in favor of obtaining a loan for this project and also does not want to deplete reserve funds for the completion of this project. A loan would incur closing costs, doc stamps, etc, in addition to the percentage rate, which is approximately 6% right now. A $60,000.00 loan would now be $68,000.00 plus percentage rate. Clyde Hoover compiled a report indicating the additional costs a loan would incur to each owner. For a loan of $40,800 each owner would pay an additional $26.38 per month for 12 months on a 1 year loan and $13.91 per month for two years on a 2 year loan. A special assessment of $300.00 per owner would cost each owner $25.00 per month for 6 months. Barbara Salber stated a loan can be obtained against the $90,000 CD at an interest rate of 1% maximum. A short discussion followed and more research will be completed on loan percentage rates versus a special assessment. Don Baumann stated the biggest thing he is looking at is not raising the monthly assessment fees for 2010 and he feels taking out a loan will definitely cause the monthly assessment fees to increase in 2010.

Edna Maloney thanked the board for implementing a payment plan for owners who are struggling on their past due fees. However she does not understand late fees. She stated this is found money and is a penalty and almost discriminating to owners who are struggling. She asked the board to reconsider late fees. Donna Sands stated she understands the hardships of owners in the current economic times and that the payment plan was implemented for that reason. Late fees are waived from the time the payment plan is signed and if deviations of late fees are made for one they must be made for all. Edna also stated an error in maintenance checks was found and checks are being signed prior to board approval. Donna stated a reimbursement check was written in February, signed and given to Jim Miller prior to board vote of approval. Kathy Watts of RDI stated this matter was ratified, voted and approved at the following meeting and is noted in the minutes.

Bea Byrnes has spoken to an owner who is an executive chef in the area and works on catering events at the space center and other local establishments. This owner is very interested in cooking for community dinners and functions. Owners spoke of previous events they used to hold in the clubhouse and some are interested but hesitant due to the amount of volunteer work it takes to have these dinners. Don Baumann asked Joy Taylor if she was willing to meet with Bea Byrnes to discuss a social dinner. Joy Taylor agreed and more information on this matter is forthcoming.

Don Baumann made a motion to adjourn at 8:30pm. Jim Miller seconded and it passed by unanimous voice vote.

A quorum was established with Jim Millican-Vice President, Donna Sands-Treasurer, Lisa Mullooly-Secretary and Jim Miller-Director. Kathy Watts, Tina Lybarger & Brandi Lowder represented Reconcilable Differences.

May 19, 2009: Lisa Mullooly made a motion to approve the minutes of the May 19, 2009 Board of Directors’ meeting. Jim Miller seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of May 30, 2009 cash on hand including Money Market reserve funds, operating account and 2-CD’s total $343,758.00. The Association has a $90,000.00 CD up for renewal in July. The board will discuss the options of renewing or withdrawing the funds in further detail the closer we get to renewal date. Accounts receivable are at $29,328. This is past-due association fees owed. The reserve account balance is $292,324 with $16,660 deposited monthly to fund reserve accounts. The reserve funds are earmarked into categories, and funds are used only for those earmarked categories. The association had a net income as of May 31, 2009 of $6,450.00 and continues to have excess funds monthly which can be used for emergencies. There are currently 5 units in bank foreclosure and 2 accounts in collections. Legal fees continue to grow for these arrearage accounts. Jim Millican stated with the amount of funds deposited monthly into the reserve account, funds will be available to catch up on a lot of outstanding repairs.

Claudia Irvine and Byron Evetts of Existing Structures attended the meeting and gave a presentation with their findings from the inspection. A full report of inspection is on file at the Reconcilable Differences Inc. office and every Board member received a copy. Byron of Existing Structures stated they are a local company operating in the area for the past six years. A majority of their work is in restoration and corrosion control of a structures. They are not a contractor, they are strictly an engineering firm. Claudia narrated a slide presentation. Claudia stated that overall, the Midrise buildings are in good condition. The Midrise buildings were built as 8” hollow core planks with 2” conventionally reinforced concrete overlay. The beams and columns in the back of the buildings are traditional rebar structures. The beams and columns in the front of the buildings are metal re-enforced. Concrete is a porous material and salt which is brought in by wind and rain quickly gets into small cracks in the coating and stucco. A 26 oz container of Morton’s Salt can corrode 1 cubic square of concrete if concrete is not properly sealed or is cracked. Once the salt penetrates the exterior cracks, it moves quickly to the rebar. The rebar will begin to rust and expand. Once the rebar expands, it pops through the stucco causing spalling. Claudia stressed that sealing cracks and coating is the best form of preventive defense. Jim Miller asked if the rebar was coated or non-coated at construction. Byron stated that black iron, non-coated standard rebar was used. Jim Millican asked if pressure washing was detrimental to the concrete or if it would help prevent damage. Byron replied that pressure washing definitely helps by washing away salt and preserving the life of the structure. Building 2300 east end is quite damaged. The area in front of the elevators has been shored and repairs will begin as soon as authorized by the association. Existing Structures follows ACI and ICRI recommendation. ICRI is the leader in concrete restoration and repair.

Overall, the balconies are in good shape. There are multiple screen enclosures and railings that have been deemed unsafe and are flagged. There is no decking damage. Most repairs needed are to the beams and edges of the balconies and walkways. An Acoustic inspection was performed. A hammer and a chain were used to inspect areas. The sound made by the hammer and chain indicate areas that are hollowing out or thinning etc. This is still the most used and best practice in determining areas of concern. Claudia outlined the services Existing Structures will perform if hired. She indicated they will be onsite from beginning to end of the project. They will oversee all work done by the contractors hired by the association. Some pickets in the railings have a lot of corrosion. Jim Millican asked, “If one picket is corroded, does the entire railing have to be replaced?” Byron answered that if the railing is up to code then yes just the corroded or loose picket can be repaired, or replacement of a picket can be made. If the railing is not to current code then no repair or replacement can be completed. The railing will have to be replaced with code compliant railing. A code compliant railing has a 4” width between pickets. Jim Millican asked. “For those units with glass enclosures that need repairs, will the enclosure have to be removed?” Claudia answered if the area can be repaired without removal then there is no need to remove the enclosure. If they cannot access the area in need of repair, then yes the enclosure will need to be removed. Claudia also stated that they will, as a time saver, remove glass enclosures and shutters but will not reinstall them. It will be the owner’s responsibility to reinstall glass enclosures and shutters. There is one unit flagged, #2312, which will need to remove shutters. Claudia stated all findings were based on safety, not on appearance.

There is significant damage to stairways. Red spots indicate rusted rebar which is bleeding through to stucco. Cracks are big enough to put a finger inside them. The walkways have some cracking in the overlay. Most of the cracks can be sealed and recoated. Most of the walkway damage was found on the edges and can be repaired rather quickly. Caulking can be completed as a temporary fix until a decision is made on repairs. Keep in mind caulking is temporary and repairs need to be made by a professional. The walkway coating is in good condition. The railings are solid although they can feel loose to the touch. They are made of a pipe system with a covering. Some of the coverings are a bit loose and move but the structure of the railings are solid. No repairs recommended at this time.

Byron Evetts explained the phases of the project: Phase I –survey of structure with written report. Phase II – Specs/repair findings are sent to contractors for bids. Existing Structures compiles bids and submits a spreadsheet. An onsite group meeting is held with all potential contractors. The association selects contractor. Phase III – once a contractor is selected, Existing Structures completes the signing and sealing of the permit package. At this point a per-hour rate is implemented. All paperwork will be completed by Existing Structures to include liens, pay authorizations, etc. Inspections include punch lists for issues that need attention at the completion of a unit. Byron recommended at this point to move to Phase II at a flat rate of $1,670.00. This will get the bid process underway and give the association more information on the costs. Byron stated he will submit a proposal for Phase II. A hand-out of potential costs was given to all in attendance. Estimated costs of repairs: 2300 bldg. $46,327.25 and 2400 bldg. $14,436.90.

American Eagle submitted a bid for section #4 carport. Bid total $40,500.00. The bid includes removal of the current 6 bay carport and the reinstallation of a 7 bay carport to incorporate an opening for emergency vehicle and pedestrian access to the existing walkway which is currently blocked by a parking space. Donna asked if a total tear down was necessary. Can it be modified to open the space blocking the walkway? Kathy Watts stated she will ask American Eagle for a revised bid to modify in lieu of total tear down. This item was tabled to discuss at the next meeting.

Two bids were received today and both are way off the mark of what was asked. Kathy Watts stated she will compile specs and ask for revised bids from both companies. This will be re-addressed at a later date.

Bid received to complete an insurance appraisal of the common property is $1,600.00. After a short discussion about the benefits of a current appraisal, Jim Millican made a motion to accept the $1,600.00 appraisal proposal. Donna Sands seconded and it passed by unanimous voice vote. Kathy also reminded them of the included bid to this proposal of $850.00 to complete updated Wind Mitigation forms which will also help to lower insurance premiums for the Association and individual units. Jim Miller made a motion to accept the $850.00 bid to complete wind mitigation, Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Jim Miller stated it is time for the final walk through with Scott of LBS. Jim Millican stated he will let Kathy Watts and Jim Miller know his availability schedule. Jim Miller will then contact Scott of LBS to schedule the walk through. Jim Miller indicated weeds will be addressed during the walk through. The weeds will need to be sprayed with weed killer and then mulch can be installed and this will help control weeds. Jim Millican read the second letter to owners re: vegetation. Kathy Watts will mail the second letter to all units that need it. Jim Millican stated he was asked by Scott of LBS if they can post notices indicating services are available to owners for courtyard trimming, etc. The Board agreed to allow Scott to post these notices. Kathy Watts requested they be no larger than 5” x 7” in size.

Kathy asked the board if the spreadsheet for tracking “Action Item Requests” is ok. Donna Sands noticed several projects with Dave Westner named to complete repairs. Donna asked if an additional contractor can be hired since Dave has been busy and difficult to schedule. Kathy Watts informed her that there has already been another contractor used for some projects. George from LB Drywall has been onsite and completed some projects and is scheduled to complete other projects on the list.

CPA Review: Donna Sands asked if the CPA has completed the 2008 financial review. Tina stated it has not yet been received, and informed Donna she will call the CPA for an update.

Boat Docking: Jim Millican indicated that more signs are needed to indicate no docking of boats at the dock. Bob informed Jim Miller there is currently one sign facing the water stating “NO MOORING”. Jim Millican would like two more signs, one facing the water to the west and one on the dock. The Board agreed and Kathy will contact Go Signs to order these.

Jim Millican informed the board that umbrellas and seating are needed at both pools. Currently 1 umbrella and 4 chairs are needed at the north pool and 2 umbrellas and 3 chairs are needed at the south pool. Lisa Mullooly made a motion to purchase 3 umbrellas from Palm Casual. Jim Miller seconded the motion and it passed by unanimous voice vote. Kathy will purchase the umbrellas and will obtain prices for the chairs.

There has been recent vandalism in the rec room. AC thermostat cover was broken, cigarettes extinguished on the carpet and cake smashed into the carpets. Jim Millican stated he thinks this is due to kids being out of school for the summer. The locks will be changed out for the summer. New hardware will be installed and the current hardware will be stored onsite. The rec room will be open while maintenance personnel is onsite. Those with rec room reservations will be issued a key upon receipt of rec room reservation form and deposit. They will sign out the key and the deposit will be returned upon inspection and return of the key. This issue will be readdressed at the end of summer once children return to school.

Donna Sands asked for status of Don Baumann. She asked if anyone has been able to get in touch with him. Kathy stated she has not called but will call both numbers RDI has on file. She will update the board with any information she receives.

Jim Millican made a motion to adjourn at 8:45 pm. Donna Sands seconded the motion and it passed by unanimous voice vote.

A quorum was established with Jim Millican-Vice President and Jim Miller-Director attending in person and Lisa Mullooly-Secretary by speaker phone. Don Baumann-President and Donna Sands-Treasurer were not able to attend. Kathy Watts represented Reconcilable Differences.

April 21, 2009: Lisa Mullooly made a motion to approve the minutes of the April 21, 2009 Board of Directors’ meeting. Jim Miller seconded the motion and it passed by unanimous voice vote.

April 28, 2009: Jim Miller made a motion to approve the minutes of the April 28, 2009 Board of Directors’ meeting. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Carports: American Eagle was on site to inspect and bid on the carport on the west side of Section 4. The bid will include extending the roofline 2 spaces to the south enabling a center space to be used for a walkway and will also include the boot and knee braces.

Gutter bids: Kathy reported that American Eagle and CRI (Concrete Restoration) have been contacted for bids for 6” gutters for the south side of the 2300 building to alleviate the overflow of rainwater.

Grounds: Mulch: Jim Miller reported that the planned clean-up of both courtyards is almost complete. By her request, Barbara Peterson has been added to the Grounds Committee. Jim Millican stated that any landscaping outside the townhome courtyard fences must be approved by the landscaping committee prior to planting. The following owners have volunteered for the committee: Jim Miller-Chairperson, Jim Millican, Janet Weise, Edna Maloney, Ruth Fell, Ann Mason and Barbara Peterson.

Bids/Building: Midrise beam inspection update: Kathy reported that Existing Structures was on site May 12th to inspect the beams, balconies and railings. They will return within the next week to complete the inspection of the walkways. Once the report is competed the Board will schedule a Special Meeting to discuss the findings with Existing Structures.

Tile in Elevators: Jim Miller presented the tile chosen and made a motion requesting the Board’s approval to retile both elevators at a cost of approximately $80. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Hardiboard vs T1-11: Jim Millican stated one unit needed to be repaired as soon as possible due to its condition. Even though the appearance of hardiboard is a little different from the T1-11 and the cost is approximately $40 for the hardiboard and $29 for the T1-11, it appears to be a product that will last much longer and will in the long run be more beneficial. Jim Millican made a motion to use the hardiboard when the carpenter and the building chairperson feel it would be more beneficial. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Wood vs composite material for balconies: The Board and owners discussed the composite that many builders and homeowners are using instead of wood for decks and balconies. The composite, when installed with stainless steel screws appear to last much longer and have very little upkeep. Jim Millican made a motion to use the composite boards when a balcony needs replacing. When a board needs replacing, it will be replaced with a like item and stainless steel screws. Jim Miller seconded the motion and it passed by unanimous voice vote.

Action Report: Kathy presented the “Action Report Spreadsheet” to the Board and stated it will be kept up to date and a copy given to the Board for each meeting. The spreadsheet will show the date of the request, who made the request, the description, the disposition and the completion date. The action forms will also be numbered in order to make sure all requests are accounted for.

Payment Agreement: Kathy presented the payment agreement form that was requested at the last meeting. Michelle Dugan composed the agreement and wished the Board’s approval for its use. Jim Miller made a motion to approve the payment agreement form. Jim Millican seconded the motion and it passed by unanimous voice vote.

a.) Jim Millican suggested a 12 inch “knee wall” be constructed of cement when a shed needs to be replaced in order to protect the T1-11 or hardiboard from water intrusion.

b.) Jim Millican stated he’d like to utilize the cleaning person, Lorinda, on small handyman issues and to assist Bob.

c.) Jim also discussed the issue we had recently of an individual that doesn’t live here harassing and threatening residents. According to the Cocoa Beach Police, if someone is harassing or threatening you on Banana Bay property, call the police first, and then call either Jim Millican or Jim Miller. When the police catch the culprit, a Board member can state to the police that the association wishes this intruder “trespassed”. If this person is seen on the property again, they will be arrested. Kathy stated that she would work up a notice for all the bulletin boards and elevators in order to inform the residents. She will have it posted by Thursday.

a.) Edna Maloney requested copies of the financials be available for owners at the Board meetings. Kathy stated she would bring additional copies of the Balance Sheet and Profit & Loss to the meetings.

b.) Ann Drummond asked why some of the trees had been removed and stated all members of the committee are not notified when there’s a committee walk though. Jim Miller stated all committee members will be notified in advance of a committee walk through from now on. Jim Millican stated that any plants and/or trees that have been trimmed or removed have been on common property.

Jim Miller made a motion to adjourn at 7:45pm. Lisa Mullooly seconded and it passed by unanimous voice vote.

Jim Millican-Vice President, Lisa Mullooly-Secretary, Donna Sands-Treasurer and Jim Miller-Director were in attendance. Don Baumann-President was not able to attend. Kathy Watts represented Reconcilable Differences.

Policy on delinquent accounts: The Board discussed various options for a policy, weighing the pros and cons of each suggestion. Donna Sands made a motion to allow the following policy: A 1/3 good faith deposit must be made within 30 days of signing the agreement, the owner will keep assessments current plus pay towards the past due amount with a time limit of 1 year to bring the account current. Future late fees will be waived as long as the owner is current with payments agreed to but late fees assessed through agreement will not be waived. Each property will have a lien on file and if the owner does not adhere to the agreement, the association will proceed with foreclosures. Certified letters will be sent to those owners in arrears with the proposed payment plan. If there is no response or a negative response, the association will proceed with collections and cable will be disconnected. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Cable disconnections: Kathy reported that the cable has already been disconnected in units 902, 1004 and 1504. Loretta Weierich from Brighthouse has been requested to hold off on any other disconnections until contacted with an update.

Existing Structures report: Kathy reported Existing Structures will be on site Tuesday, May 12th to begin the inspection. They will need access to all units in the midrise on that date in order to properly inspect the balconies. Beams and walkways will be completed another day and it will not be necessary to disturb the residents further. Kathy suggested that while they are onsite checking the balconies, it might be prudent to have the railings inspected at the same time. The Board agreed to have Existing Structures inspect the railings also. As soon as the report is completed, the Board will receive copies and a date will be scheduled for Byron from Existing Structure to discuss the report.

Lisa Mullooly made a motion to adjourn at 7:10 pm. Donna Sands seconded and it passed by unanimous voice vote.

A quorum was established with Don Baumann-President, Jim Millican-Vice President, Donna Sands-Treasurer, Lisa Mullooly-Secretary and Jim Miller-Director. Kathy Watts represented Reconcilable Differences.

February 19, 2009: Donna Sands made a motion to approve the minutes of the February 19, 2009 Board of Directors’ meeting. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

March 10, 2009: Lisa Mullooly made a motion to approve the minutes of the March 10, 2009 Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of March 31, 2009 Money Market reserve funds totaled $262,535. Operating account balance $45,971. P & L shows that we’re approximately $10,000 under budget for the first 3 months of 2009 with a reserve deposit of $16,660 and income of $59,565. $20,000 has been paid to American Eagle from Reserves for the carports. These funds were a carryover from 2008.

Carports: Report from Don Baumann: Section 1 beams have been rust-proofed and painted. Section 2 work is completed and Section 4 work is almost complete. American Eagle will be inspecting the other carports within the next few weeks and report their findings to the Board. Donna asked if the amount paid to American Eagle was the amount we contracted with them. Don stated there was an additional expense since it was requested they add the cement bumpers to Section 1.

Cable disconnections: The Board felt they needed to work on different ideas to get the attention of those owners in arrears and tabled the discussion until the next meeting.

Grounds: Mulch: Jim Millican would like the Board to entertain the idea of mulching the beds after the landscaping company has competed their trimming and clearing of the beds. The cost would be approximately $40 per yard and we’d need 100 yards for the property. Jim Millican also reported the new landscaper has split the property into 3 sections and has been trimming bushes and removing foliage from fences as requested. Donna suggested doing a walkthrough and possibly replacing some old landscaping before mulching the islands. Don stressed that outside the fencing is common property and suggested forming a landscaping committee for personal landscaping. Any landscaping outside the fencing must be approved by the landscaping committee prior to planting. The following owners have volunteered for the committee: Jim Millican, Jim Miller, Janet Weise, Edna Maloney, Ruth Fell and Ann Mason.

Bids/Building: Midrise beam inspection update: Don Baumann explained to those present the situation with the beam at the 2300 building. Don went over the 2 bids received to inspect all the beams and balconies and reported the findings to the Board and owners. This would also be used as part of the Reserve Analysis which is required by law every 5 years. Don Baumann made a motion to accept the bid for the inspection from Existing Structures of $5,610. Lisa Mullooly seconded the motion and it passed by unanimous voice vote. Kathy will contact Existing Structures to create the contact for signature.

Rubber tile in elevators: Kathy showed the Board the samples of rubber tile. The Board requested bids for retiling the 2 elevators. Jim Miller offered to collect the bids and present his findings to the Board.

Lighting at east and west end of midrise: Owners have expressed concern over how dark it gets at specific areas in the parking lot around the garages. Jim Miller made a motion to install 2 motion activated flood lights, one at the Northeast corner of the 2300 garage and one at the Southwest corner of the 2400 garage. Don Baumann seconded the motion and it passed by unanimous voice vote.

Newsletter: Kathy showed the Board the finished newsletter and requested approval to mail it out with a copy of the Annual Minutes. Don Baumann made a motion to send the newsletter, annual minutes, owner profile and renter profile to all owners. Renters would receive the newsletter and renters profile only. Lisa Mullooly seconded the motion and it passed by unanimous voice vote.

Owner Profile Cover Letter: Donna stated she would update the cover letter she wrote for the owner profile.

Packet Delivery: Jim Miller offered to hand deliver the packets to the midrises and Carol Langmesser offered to hand deliver what packets she could to the townhouses.

Classes on City Policy: Don announced that twice a year the City of Cocoa Beach holds a 13 weeks class to learn the facets of city policies.

Gutters: Lisa Mullooly requested information on gutters for the midrises. They were previously put on hold due to the expense. Don stated larger gutters are needed to handle the flow of water. Don had CRI (Concrete Restoration) develop a 6” drain in the rear of the building. The Board requested bids on gutters replacement to match the gutters on the rear of the building.

Assessments: Scott Fraley from 1702 spoke to the Board and requested additional time to get caught up on past due assessments. The Board understands these are trying times but feels they have to have a policy in place for all owners. Scott requested 2 weeks to come up with a specific plan and he will also make a good faith payment of $1,000. The Board will hold a special meeting to develop a policy for units in arrears.

Railings: A couple owners asked about having their railings replaced. Don stated that if an owner feels their railing needs to be replaced, they must fill out an “Action Request Form” so it can be inspected. Don Baumann made a motion to retroactively reimburse owners who have replaced railings at their own expense. Donna seconded the motion and it passed by unanimous voice vote.

Boat: The owner of the grandfathered boat asked to be allowed to replace their existing boat with a new one. Kathy Watts from RDI reminded the Board that per the Rules & Regs, the present boat was grandfathered in and once that boat is removed or disposed of, it cannot be replaced with another boat.

Next meeting is a Special meeting scheduled for Tuesday, April 28th at 6:30 pm. The next Board meeting is scheduled for May 19, 2009 at 6:30 pm.

Don Baumann made a motion to adjourn at 8:45 pm. Jim Miller seconded and it passed by unanimous voice vote.

The walking meeting was attended by Jim Millican-Vice President, Lisa Mullooly-Secretary, Jim Miller-Director and Scott Montagna-owner of Lawns by Scott. Michelle Dugan and Kathy Watts from Reconcilable Differences were also in attendance. Those attending met at the clubhouse at 9:00 am. Don Baumann arrived later.

The Board, Management and LBS walked the property and discussed corrections needed. Scott stated detailing would be completed on a rotation consisting of sections 1 & 2, sections 3 & 4 and the midrise. Scott stated he would trim the bushes and make sure they were trimmed back from all the buildings. This will also benefit the bushes as they’re in dire need of trimming. A week before LBS begins service, RDI will post notices stating that drastic trimming will be done and that some plants will not look up to par until the vegetation grows back.

Lisa Mullooly made a motion to continue service with Pearce Pest Control instead of a new contract with Blacks. Jim Millican seconded the motion and it passed by unanimous voice vote. The Board requested Dave Pearce be contacted and a meeting set up with Scott from LBS in order to coordinate their service dates.

Don Baumann made a motion to adjourn at 10:30am. Jim Miller seconded and it passed by unanimous voice vote.

Don Baumann called the meeting to order at 7:15 pm. Acting President Don Baumann, Secretary Joy Taylor and Treasurer Donna Sands were in attendance. Michelle Dugan, Kathy Watts, Tina Lybarger and Dawn Kosak of Reconcilable Differences attended as well as Attorney Russ Klemm from Clayton & McCulloch.

Volunteers were requested from the audience to count and validate the ballots received. Four residents, Ruth Fell #401, William Wilkinson #904, Carol Langmesser #1002 and Lynita Seelie #2313, offered to help. Tina Lybarger officiated and the volunteers were directed to start opening outer ballot envelopes.

Collection of Ballots Not Yet Cast: Don Baumann polled the room for any ballots still in hand. The volunteers and Tina began the ballot counting.

3. Certification of Proxies & Establishment of a Quorum of Members for Annual Meeting:

It was confirmed by management that thirty two (32) units were represented in person and thirty seven (37) units attended by proxy. The meeting started and nine (9) more proxies were found inside the ballot envelopes for a total of seventy eight (78) units represented. Sixty nine (69) units were required to attain a majority.

Kathy Watts read the 2006 Annual Meeting Minutes as they were not approved in 2007 or 2008 since a quorum of owners was not established in either year. Don Baumann motioned to approve the 2006 Annual Minutes as read. Donna Sands seconded the motion and it passed by unanimous voice vote.

Acting President Don Baumann reported that the carports are coming along very well. Painting of the Section 1 carport has been held off because of the colder weather. The paint doesn’t adhere well in the cooler weather. Same applies to hot weather. He spoke to the City about getting new garbage and recycling containers. They should be delivered this week or next. The newly elected Board will need to decide which type of siding to use in replacing the townhouse siding. T1-11 is currently used, but Don recommended hardiboard since it will last much longer.

Treasurer Donna Sands reported that we have had a good year as the monthly financial reports have shown. We have been able to move money into reserves including net income moved into reserves. Even with the current maintenance projects going on, the ability to move this excess into reserves will help keep fees down for next year.

Don said the only unfinished business he had seen was the carports being completed and the siding work being done in at 1702-600. A question was asked about parking lot #4. Don said that one section carport will be replaced and other carports are scheduled to be painted or repaired. The complete repairs include replacing fascia/soffits all around and adding cement footers. This process is done by drilling 3/8” steel rebar dowels into the foundation and then putting in a column of cement to secure the post. This is very solid and can withstand high winds.

A resident in the midrises complained about the cleanliness of the buildings and the need for proper supplies to deal with the construction debris and dust. Don stated that the new Board will have to resolve the issues that have come up since hiring an employee in lieu of a cleaning company. Many people had met the new person, Lorinda (Lulu), but felt she did not have the proper supplies or guidance to complete the job correctly. There have been discussions within the Board on this issue but the new Board will make this a priority and get it resolved. Kathy Watts stated that Lorinda had not been working this week due to a sick son, but she was given Conrad’s list of things to do, and was supervised by a Board member not in attendance tonight. Kathy asked Lorinda to make a list of supplies needed and she asked the Board for authorization to work with Lorinda to make sure she’s aware of her responsibilities. The Board gave their approval.

Don commented on the dog walk area. He reminded all residents to carry and use a bag to clean up after their pets. The droppings can cause a flea problem if not picked up.

An audience member stated that the present Board is doing a great job at holding fees. Congratulations for a job well done. Don said the Board worked hard, had many arguments but maintained 50% reserves.

An owner asked if maintenance fees were up to date. Donna replied that about 10 units have an outstanding balance of 60 days or greater. A claim of lien is filed so that if a foreclosure does occur, Banana Bay is in place to collect the fees owed. A second step is also being worked on to possibly disconnect cable service from those who do not pay their monthly fee. Bulk TV cable is what is supplied to all units by the Association, but if a person gets their own internet or phone service from the cable company, those cannot be turned off.

A temporary adjournment was motioned by Don Baumann and seconded by Donna Sands at 7:52 pm, while waiting for the ballot tally. Meeting was called back to order at 8:07pm.

The results of the ballot count were given and the results were: Don Baumann-64, Gisela Klettke-29, Edna Maloney-32, Jim Millican-49, Jim Miller-53, Lisa Mulloolly-53, Irene Nishmura-43, Barbara Peterson-36 and Donna Sands-60.

The 2009 Board will consist of: Don Baumann, Jim Millican, Jim Miller, Lisa Mullooly and Donna Sands. All outgoing members were thanked for their service.

Dawn Kosak, Administrative Assistant
Kathy Watts, CMCA, LCAM #27668
Michelle Dugan, CMCA, AMS, LCAM #17226
Tina Lybarger, Accounts Specialist
Reconcilable Differences, Inc.

Don Baumann was asked to serve as president and he agreed. Jim Millican was asked to serve as Vice President and he agreed. Donna Sands was asked to serve as Treasurer and she agreed. Lisa Mullooly was asked to serve as Secretary and she agreed. Jim Miller was asked to serve as Director and he agreed. Don Baumann motioned to appoint the members as discussed. Donna Sands seconded the motion and it passed by unanimous voice vote.

Kathy Watts requested the Board allow RDI to direct Lorinda (cleaning person) to make sure she gets supplies and job description in order. Lisa Mullooly motioned to approve the request. Don Baumann seconded the motion and it passed by unanimous voice vote.

Jim Millican asked about lawn company contract and date that it is ending. Michelle stated that CMI’s 60 day termination clause required an ending date of April 11, 2009. Don stated that Lawns by Scott has been fired before, but thinks we could work with Commercial Mowers if given more direction. Don would like to schedule a meeting with Lawns by Scott because in the LBS contract, it includes fertilization but the association already has a contract with Pearce Pest Control currently in place. Michelle requested Board approval to schedule a meeting with Board members, management and Lawns by Scott for Tuesday March 9, 2009 at 9:00 a.m. It will be posted as a walking Board meeting. Don Baumann motioned to approve the above discussion. Jim Millican seconded the motion and it passed by unanimous voice vote.

Due to scheduling conflicts, Don Baumann made a motion to change meetings to the third Tuesday of the month at 6:30 p.m. Lisa Muloolly seconded the motion and it passed by unanimous voice vote. Next meeting is 9:00 a.m. on March 10 for a walk thru meeting. The following meeting will be April 21, 2009 at 6:30 p.m.

Don polled Board for further business. Kathy congratulated all new Board members. Don Baumann motioned to adjourn the meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

A quorum was established with Don Baumann-acting president, Donna Sands-treasurer and Gisela Klettke-director present. There were twenty owners present and Kathy Watts, Michelle Dugan, and Tina Lybarger of Reconcilable Differences also attended.

Don Baumann made a motion to approve the minutes of the January 22, 2009 Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Don Baumann made a motion to approve the minutes of the February 5, 2009 Special Board of Directors’ meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of January 31, 2009 Money Market reserve funds totaled $250,406. Operating account balance $41,199. P & L shows $2,436 profit for January with a reserve deposit of $16,660 and income of $59,543. Gisela Klettke asked about a check to LB Drywall with the description “repair and repaint ceiling”. Kathy Watts stated that this was a repair to the balcony ceiling. Another LB Drywall payment stated “drywall repair and replacement of electrical box.” This was for drywall repair after signs of termites were noticed. The electrical box had to be removed to see behind it, but this is not a new box, just re-installment of an existing box. Gisela then asked about the bank fees of $600.00. Michelle Dugan stated that this was the annual coupon book/lockbox order.

Second Budget Mailing: Gisela had asked why RDI or the manager did not pay for the mailing. Michelle stated if the budget had to be sent out exactly the same way, RDI would have paid for it. The November minutes state the attorney said it could have stayed at the $445.00 and then been revised based on the exact insurance premium. The minutes show the board wanted to send out a new budget with the revised $425.00 fee. Don Baumann stated because they held a meeting and there was a vote to re-mail with a revised amount, the mailing should be the responsibility of the association.

Carports: Report from Don Baumann: Section 1 beams have been rust-proofed and painted. Section 2 work is underway and the old carport is being torn down. To satisfy questions about using aluminum, Don researched this and found that aluminum beams would have to be raised 4 inches higher and extra stands would have been required between them at a cost of $8K to $10K more per car port.

It was confirmed that the undercoat is white and the parts will be painted before they are erected.

RDI Management: Gisela Klettke asked if an addendum had been made to the RDI contract to include Bob posting notices. She did not see it in the contract. Gisela felt Bob is doing a lot of extra work putting up notices and it is pulling him away from other work. Michelle Dugan stated no addendum has been made. Clyde Hoover stated that even under BP Davis management Bob completed this along with running errands, and he did not feel it takes that much time and it is a matter of convenience. Gisela Klettke stated the mailboxes have not been repaired. Michelle Dugan stated she had asked Bob to investigate what wood repair and painting was needed. Gisela stated her request was not a repair, but the parcel boxes. Donna confirmed that the large postal boxes have bent and rusted keys. RDI will contact the post office about these issues.

Grounds: Gisela Klettke-director reported: A lot of trimming needs to be completed. Vines are coming through the fences. Michelle stated that Kathy Watts has written a lot of letters to owners regarding vegetation and vines. Donna Sands stated the vines are in the common areas going into the courtyards. RDI will contact Commercials Mowers and Pearce Pest Control. Michelle Dugan stated that, per the minutes of the last meeting, the Board had hired Lawns by Scott to take over the grounds maintenance as of March 6th, but Commercial Mowers has a 60 day cancellation clause. Gisela asked if they were contesting it and RDI said a letter had been received from CMI demanding their full 60 day notice. Gisela stated in the future not to hire anyone with that long a termination clause because the property can be destroyed in that time. Gisela said to let them finish out the 60 day service and she will contact Lawns by Scott to start in April. Michelle Dugan will write the letter to Commercial Mowers. Gisela then gave Michelle all original copies of landscaping bids she had obtained.

Gisela stated the Palm tree out front is still full of mites and the bushes are infected as well. She looked under the palm, after being informed that Dave Pearce had serviced them, but she did not see any granular fertilizer. Gisela said she called Dave Pearce and he has not returned her call. Kathy Watts stated Dave Pearce has always returned calls promptly and she would call Dave Pearce the following day to have him call Gisela and set up a meeting.

Bids/Building: Midrise Inspection Update: Don Baumann gave report: 2300 building end railings have been completed. Bob did a very good job. Hardiboard was used on the inside and outside. Bob also completed the repairs to the 3 security lights near the townhomes. He dug a 160’ trench 18” deep per code to run the electrical lines.

A work order had been submitted for the 600 building 2 years ago to repair siding. Don Baumann has authorized Bob to get materials needed to begin the repairs. 1702 has been prepared and is ready to have the siding replaced. Don Baumann asked the audience for input on replacing existing siding with hardiboard or continue to use the T1-11 that is already there. Hardiboard is a little more expensive, but would last 15-20 years. An owner thought the T1-11 had lasted since construction of the buildings and did not think hardiboard was needed. Don Baumann stated the T1-11 has been replaced twice that he can recall. An owner asked if one is more moisture, mildew and termite resistant than the other. Don replied yes the hardiboard is more durable, due to the cement backer board. Gisela Klettke asked if stucco could be an option. Don Baumann agreed to look into the costs of stucco. Another owner asked which one is better to stop water intrusion around sliders. Don stated that incorrectly-installed flashing is what is causing the water intrusion through sliders. The flashing will be replaced with the current repairs. An owner in the construction industry confirmed that stucco-ing the townhomes would be a more expensive option, so Don will proceed with hardiboard. Don then presented a maintenance list of completed work performed by Bob

Donna Sands felt the emergency hourly rate was high and that the cost to install the new code-compliant drain grate was high. Gisela said she obtained a grate for much less. Michelle offered to contact Price-Rite pools to see if they would lower their after-hour rate and confirm their grate price and install rate. Gisela was asked to call her vendor for the cost of an 18x18 grate. Don Baumann made a motion to accept the Price Rite Pools contract. Donna Sands seconded motion, and it passed by unanimous voice vote. Don Baumann signed the contract.

Gisela stated that the North pool deck is coming away from the pool. There are many wide cracks on the east side. This will be investigated.

Social Committee: Don Baumann stated in the past they had a social committee. Community BBQ’s and other social gatherings were held. He asked Arlene Smith to think about heading a social committee to get some of these events started again. Arlene stated she would speak to Don about this. With no Social or Orientation committee in place at this time, Don Baumann and Donna Sands said these items can be removed from the agenda.

Owners Flo & John Worsham made a presentation of Supreme Pressure Clean. They offered their services at a reduced rate to all owners. Their flyers and brochures were placed in the rec room.

Mr. Schumo, unit #2204 said the walkway to the 21 and 22 buildings is blocked by a deeded parking space. He is concerned about emergency accessibility to the sidewalk. Michelle stated that this concern was addressed a few years ago and it was agreed that when that carport in Section 4 is repaired, the roof will be brought over to the north further so this sidewalk access will not be considered a parking space.

Janet Weese asked whether the Board wished to add the clubhouse to the list for Kabran AC to service. Michelle stated since the air conditioner is somewhat new, if might be best to have the installing company service it. The Board agreed and requested Michelle call Hoskins AC to see if they will match the price of Kabran.

Don Baumann compiled a report and asked it be entered into the minutes. When RDI came aboard they made the association aware of a lot of great contractors at good prices and they care about Banana Bay. Bob has worked for Banana Bay for 5 years. Don researched repairs made by Bob regarding a leak. RDI had informed Bob about a large water bill in the 2300 building. Bob researched and found there was a breach between 2300 building and the pool. The water was tested and it was found to be city water, not a leak in the pool. Bob repaired and rerouted the pipe in about three days. Based on bids received, Bob saved the association $200,000.00 by completing these repairs himself. Therefore, in the five years Bob has worked for Banana Bay he has not cost the association a dime.

Donna Sands requested the minutes be noted that it was never her intention to get rid of Bob or to cut his hours. Her intent in interviewing applicants and hiring a part timer was to help and enhance services and to take some of the burden off of Bob. At this time Donna was thanked for all her time in interviewing prospective employees and hiring Lulu. It was agreed that Lulu is trying hard and currently working 20 hours per week. RDI was asked to confirm Worker’s Comp is covering this new employee. Michelle confirmed it.

An owner asked what the cleaning schedule currently is; she said the midrise walkways are filthy, especially since the concrete repairs were completed. Gisela said Lorinda is following the same schedule as White Apron did.

Don Baumann made a motion to adjourn at 8:20 pm. Donna Sands seconded and it passed by unanimous voice vote.

Don Baumann-Acting President, Donna Sands-Treasurer, and Gisela Klettke-Director were in attendance.

a.) Donna presented cleaning contracts and applications to hire a person to do the cleaning and other jobs on the property. Discussions were made by owners and Board Members about the position. Motion was made by Donna to hire Lorinda Langdon at an hourly wage of $10.00 for a 20 hour work week. Seconded by Joy Taylor. All in favor. Passed unanimously.

b.) Gisela presented lawn service contracts. Discussions were held by Board Members and owners. Motion was made by Gisela to give the lawn service contract to Lawns by Scott and lawn spraying contract to Black’s Spray Service, as presented on the summary spreadsheet of lawn bids. Donna seconded. All in favor. Passed unanimously.

c.) Gisela made a suggestion to owners and candidates for the Board to walk the property on Saturday, February 7, 2009 in the morning, to look at landscaping.

With no further business to conduct, Joy motioned to adjourn and Donna seconded. The meeting adjourned at 7:30pm.

A quorum was established with Don Baumann-acting president, Donna Sands-Treasurer, Joy Taylor-Secretary and Gisela Klettke-director present. There were 5 owners in attendance and Kathy Watts, Michelle Dugan and Tina Lybarger from Reconcilable Differences were also in attendance.

Don Baumann made a motion to approve the minutes of the December 18, 2008 budget meeting. Donna Sands seconded the motion and it passed by unanimous voice vote.

Treasurer Donna Sands presented the report: As of December 31, 2008, Money Market reserve funds and 2 CD’s total $233,472. $28,000 was transferred from the operating account into reserves to use as surplus funds from 2008 for ongoing carpentry projects. Income for year 2008 was $696,181.00 expenses were $564,417 and $113,700 was deposited into reserve funds. Donna stated she was glad to see how much was placed into the reserve funds from 2008 and explained this would help considerably, along with the current projects and repairs, to hopefully start a downward trend in next year's assessments. The analysis of reserves will take into consideration the remaining life on many items and the additional money added would put us closer to be 100% funded.

Gisela asked if there should be a vote from owners on how to use surplus funds. Michelle replied that Florida Statutes allow the Board to decide how to handle the use of surplus funds and the Board had agreed to use $17K of the 2008 income towards 2009 expenses. Don Baumann stated he is happy to see how much was placed into reserved funds in 2008 and in this new year’s budget. He stated that the Board will need to look at the engineer’s report that Barbara Peterson had completed to ensure that reserve accounts are funded accurately. Michelle said that Florida Statute requires that a reserve analysis be completed every 5 years, so a new one may be needed soon.

Carports: Materials have been ordered and permits issued. Materials are being pre-drilled and notched at the factory and delivery is expected in the next week or so. While section 2 & 4 are being replaced, American Eagle will make all necessary repairs to Section 1. Gisela asked what materials will be used on the carports. Don Baumann stated the same as Section 1 with the exception that they are using galvanized steel. Gisela Klettke stated that aluminum was mentioned at the last meeting. After briefly looking over the last meeting minutes, it was established that galvanized steel was discussed at the prior meeting. John Butler asked if the contract specified steel. Don Baumann said yes and they are being dipped with a rust inhibitor, then primed and painted at the factory. John asked who will be paying for repairs to Section 1 and Don Baumann stated American Eagle is covering all costs for repairs to Section 1 at no cost to the association.

Grounds: Gisela Klettke stated that this week the landscapers have improved a little, but are still not completing work according to their contract. Gisela Klettke made a motion to give Commercial Mowers a 30 day termination notice. Joy Taylor seconded the motion. Owners were upset and asked who would be taking their place and asked why Gisela felt the need to replace Commercial Mowers. Gisela stated they do not service consistently according to their contract. There are weeds, over grown shrubs and the contractor is not edging all areas. Again owners asked who would be taking their place and asked if bids had been received from other companies. Gisela stated she has spoken to other associations and has names of other companies and she’d have no problem getting another company in tomorrow. After a long discussion owners remained very upset and displeased. John Butler asked when the contract with Commercial Mowers was up for renewal. Kathy Watts replied in May. John Butler asked to let the contract run through and in the mean time this would give the association time to get bids from other companies and re-address the termination once bids have been submitted. Gisela Klettke again said she could get someone onsite tomorrow. Donna Sands suggested holding a special meeting once bids have been received. Vote on motion to terminate Commercial Mowers: In favor: Gisela Klettke, Joy Taylor and Donna Sands. Don Baumann voted against the motion. The motion passed. Don Baumann asked that the minutes reflect that he was blind-sided by this motion and felt the other board members were making a bad decision. He stated that no reports were ever presented and tonight’s meeting was the first he had heard of a need to terminate. Donna stated that the representative of Commercial Mowers had come to a meeting in September and been disrespectful. Audience members disagreed, but Joy, Gisela and Donna stood firm in their recollection of that evening’s meeting.

Sprinkler: Gisela Klettke asked how often the sprinkler system is checked. Kathy Watts stated that Bob checks it every Tuesday. Gisela stated that other properties only check their systems monthly and she does not feel it necessary to have it checked weekly since she feels Bob time is worth approximately $480 per month to complete the task. When asked, Donna stated that it is in Commercial Mowers’ contract to take care of the sprinkler system. Don stated that this is a very large property with many zones and Bob is so familiar with the problems that he is keeping the system running properly. John Butler recommended leaving this item as is until bids are received from other landscaping companies.

Ms. Wolfard asked if there was a list of Bob’s job duties. Don Bauman replied yes and he would make it available to anyone who would like to review it. Donna Sands stated she would like for Bob’s timesheet to be more detailed. She asked if we have a number of work orders received and completed on a monthly basis. Kathy Watts stated work orders received are forwarded to Bob and he keeps a folder of completed and outstanding orders. Donna Sands would like to have Bob’s timesheet noted with the number of work orders received and completed on a weekly basis. Kathy Watts stated she and Don Baumann would ensure that Bob does this. Don stated that Bob presents work orders to him during Friday meetings and they go over the work orders and make decisions on which are to be completed immediately etc; Ms. Wolfard said the website is not current on meeting minutes. Don Baumann asked management to place hard copies of the current minutes at the mailboxes and management will check the website to ensure minutes are up to date. Kathy Watts stated she will post copies of minutes once approved.

Roof Sweating and rotting wood on balconies: Gisela Klettke stated she feels all nails should be removed from the balconies and replaced with galvanized nails. The roofs are “sweating” and the water drips onto the balconies rusting the nails and rotting the boards. Don Baumann stated that 88 decks have been replaced twice in the last 6 years. John Butler said all the decks have pressure treated wood and pressure treated wood will not rot. He recommended hammering down any loose nails and using galvanized nails to secure the boards back to the support beams.

Truck in section 1: Gisela Klettke stated she has spoken to the tenant who has possession of the truck and it is not operable. It was towed onto the property and it is not registered in the tenant’s name. Gisela Klettke stated they are storing it on the property which is against the Association documents and it needs to be removed from the property. Kathy Watts said she will call Bob in the morning and have a tow sticker placed on it. Michelle Dugan informed board she has contacted the owner of the unit and he has assured us that he will take care of the situation with his tenants. As of today we have not heard back from the owner.

Carport Painting: Gisela Klettke stated painting of carports should be completed yearly to help maintain their condition and will prevent rusting. Don Baumann replied that once section 2 & 4 carports are completed, they will assess the remaining carports and paint and modify as needed so that all look the same. John Butler asked if possible to seek other companies for painting. American Eagle are not painters and with the 4 month delay in beginning the work he wondered why another contractor could not be used for the basic maintenance of painting.

Grounds Spraying Contract Revision: The contract has been signed and a copy of the revised contract, to include additional services at no extra cost, was in the board packets. Gisela Klettke stated she has a bid that will save $5,000 a year. Don Baumann stated he would like to see these bids. Don stated Gisela is always stating she has bids and can save the Association money, but no bids are every presented. John Butler recommended writing up detailed specifications so an “apple to apple” comparison can be made. Gisela Klettke stated she would obtain two more bids.

Midrise Inspection update: Bob and Dave are currently making repairs. They are re-enforcing sections and replacing parts where needed. Donna Sands asked what percentage of the repairs have been completed. Kathy Watts stated 75% of repairs have been completed. The ultrasound reports came back and there are no structural issues. The columns are in good shape and the only issue that needs to be addressed is a concrete area on the 4th floor walkway. Mike’s Masonry bid that repair at $590. Donna Sands made the motion to hire Mike’s Masonry. Joy Taylor seconded the motion and it passed by unanimous voice vote. Don Baumann signed the bid.

Door replacement and Woodwork repairs: A copy of the last work order was in the board’s handouts. All current work orders for door replacements have been completed. Dave of Intext is expected back in a week or two to start T1-11 repairs on the townhomes.

Pool Contract: Gisela Klettke was given the contract at the last meeting; management has not received the signed contract back. Gisela said she gave it to Donna Sands. Donna stated she thought that it was just a copy, but said she will review and get it to management. Gisela Klettke asked why Price Rite Pools has issued a contract; the association has had them for several years and they have never had a contract before. Tina Lybarger stated that Price Rite Pools has just recently decided to have detailed contracts for all their properties so their duties and responsibilities are clear. Donna Sands felt the association could hire a part-time $10.00 per hour person to complete the cleaning, pull out dumpsters, “police the grounds” for trash and eventually be certified to take care of the pool cleaning. She felt this would free Bob to do more complex items in lieu of hiring contractors and would also save the association money. John Butler reminded the Board that employer taxes and worker’s comp are expensive, so they need to look into all liability details before firing subcontractors and doing the work in-house. He recommended, based on his years as a developer, to leave cleaning and pool maintenance to contracted companies. Don Baumann wanted the minutes noted that he is not satisfied with the termination of the cleaning company and now the landscapers; he feels the board is shooting themselves in the foot. He asked why we should have to train someone else to complete these services when we had the best doing it.

Bright House contract for disconnect and reconnection of non-payers: Based on discussion at prior meetings about unit owners refusing to pay their monthly fees, communication was set up with Brighthouse Cable and they sent a contract that would charge $22.95 per disconnect and an additional $29.95 to re-connect, but they were willing to do this for their “bulk cable” Associations as long as the Board gave written notice to each unit owner of the intent to disconnect first. Kathy presented this contract to the Board for signature. She also drafted the letter that will go to all non-paying owners. Donna Sands & Joy Taylor stated the letter was excellent. Gisela Klettke stated the letter does not match the contract since the contract states only the TV will be disconnected, not internet. Kathy Watts said the letter was drafted prior to receiving the completed contract and it will be revised per the contract.

Midrise Gutters: Don Baumann said costs are too high to have new gutters installed on the front side of the buildings at this time. When they are replaced, they will have to be specially-made deep 8 inch gutters with minimum 6 inch downspouts installed. RDI offered to obtain bids on gutters. Don stated wood will have to be replaced before any gutters are installed.

Termite Damage in Townhomes/Truly Nolen Contract Revision: Unit #601 had some drywall damage and when making those repairs, the contractor found areas of termite damage. Truly Nolen inspected the area and determined no live termites were present. This was very old damage, and the drywall repairs were then completed. Michelle Dugan stated that Truly Nolan had increased their price for 2009, but management called and asked them to remove the increase and they agreed to do this to keep the contract.

Cleaning contract Bids: Kathy Watts compiled a spreadsheet of all the bids she obtained and presented it to the board. Conrad of White Apron called this week to say they will no longer be willing to work at Banana Bay at the reduced rate and their last day will be January 31, 2009. Don Baumann asked that the minutes be noted that he is not happy with the termination of Conrad. Donna Sands brought up the option of hiring a part timer to complete this job and other duties to help Bob. The issue of cleaning will be further discussed at a special meeting, which should be next week.

Don Baumann stated that at this time, management has received two “notice of intents” to be candidates for the Board. These were received from Don Baumann and Edna Maloney.

The new statute about insurance requirements by condo owners was discussed. Tina Lybarger stated that management has received approximately 15 certificates to date. An owner present at the meeting turned in hers this evening.

The next regular Board meeting was set for Thursday, February 19, 2009 at 6:30 pm.

Don Bauman made a motion to adjourn at 9:30 p.m. Joy Taylor seconded the motion and it passed by unanimous voice vote.