Banana Bay HOME RDI HOME  

BANANA BAY CONDOMINIUM ASSOC, INC
SPECIAL ASSESSMENT MEETING
Held WEDNESDAY, MARCH 15, 2017 at 10:00 a.m.

Call to Order: The meeting was called to order at 10:00 am in the clubhouse

Establish Quorum of Board Members: President Barbara Peterson, VP Clyde Hoover, Treasurer April Scott, and Directors Tim Sparks and Carol Langmesser. Attorney Frank Ruggieri and Roofer Craig Winebrenner also attended. Michelle Davis from Reconcilable Differences took minutes.

Approve Minutes from Last Board Meeting: Carol motioned to approve the minutes of the February 20th meeting as written. Clyde seconded, all in favor.

Financial Report: Manager stated that January was about $17K over budget, and we have 2 owners in arrears, but right now, both are making payments.

Contracts: Attorney Ruggieri was asked to attend to answer any questions owners had about the assessment or the repairs going on.

Craig from Rock Roofing discussed roofing updates. Ceilings should be installed by the end of next week and then insulation can be installed in the attics. Vapor barrier was brought up by an owner last week, but Craig said this was not recommended in hot muggy areas. A unit owner recommended foam insulation. Craig said he would install whatever the board wanted. The attorney said insulation changes would not be a material alteration since there are new and better options since the buildings were built. There was discussion about the quality of the roof. Craig said the more the sun shines on the roof, the stronger it gets. Breaches usually happen on the edges, and he makes sure his installation meets or exceeds Dade County requirements. It was eventually agreed that insulation choices will be discussed with the attorney and contractor next week.

Elevator Repairs: Barb and Michelle spoke with Paul Dupre about working with Kone in repairing the concrete and elevator door, and making the repairs to the “pits”. We will have to have another meeting after all the costs are received, but Barb said the amount we show on the Special Assessment is an average of the costs to date. A resident asked why we don’t use reserves. Barb said we are using some reserves for these repairs, but we cannot deplete reserves when other maintenance will be done in the near future. Pooling reserves gives flexibility, but we cannot use it for unplanned costs. Owners asked for reserve updates. Barb said she would have Todd Foley update his software with the new life expectancies, costs and repairs, and then we can publish the revision.

Seawall/Coquina Repair: We have only obtained one bid to date, and it was $27,500 from Premier Environmental Solutions from Malabar. We will try to get more bids, but other bidders have said they are too busy right now to even look at the damage.

Carports: The carport in Section 1 has a bad roof. Band-aid fixes have not worked well. Concrete Restoration has inspected that and also looked at beams for two others. We have $66,300 in carport reserves, and the bid for the hurricane repairs was $31K, with an additional new carport costing an additional $35K, so we can use reserves for part of this.

Roofing Contract: Barb motioned to ratify Rock Roofing’s contract. While not all-inclusive, we have been working in good faith with Rock to get the new roofs on. She added that reserves have been used to cover some of the cost. Clyde seconded. Tim abstained because he had not yet read the roofing contract and was unsure where the money was to come from. All others approved, motion carried.

Owner Questions: There was much discussion about insulation costs and type, and why the costs went higher. The attorney was requested to answer if it is legal to assess more than was discussed in the mail out. Mr. Ruggieri said based on the hurricane damages, expenses are fluid, changes keep coming up, and by statute the board doesn’t have to get owner vote on these costs. He also confirmed that all a board is required to do is mail out notice of a special assessment and what items will be discussed. It is legal to discuss and change a final amount assessed. A resident asked why the association must pay for three personal air conditioner units. Attorney Ruggieri clarified that maintenance and casualty items are treated very differently. In a casualty, if an A/C is damaged beyond repair, the association’s property policy must cover the cost of a new one to ensure the building components that affect everyone are working properly. Another resident asked if there will be another special assessment for the unknowns. Barbara said we feel pretty certain of the costs, plus we do have reserves to help if costs do become more than we expect.

For those unit owners who want to see all the expenses, Barbara stated that she and Frank will be meeting with the public adjuster and the asbestos cleaning company on Monday. We should have more back-up and detailed expenses and Barbara is willing to scan all contracts, invoices and reports onto a jump drive or CD for owners to look at.

Later, another question was asked about owner-installed sliding glass doors that replaced the screened enclosures years ago. These sliders were damaged in the hurricane, and their personal insurance company said the Association is responsible. Barb noted that we have a signed approval on file allowing the owner to install these at their own cost. That letter and a copy of the governing documents showing that windows are an owner expense, were sent by Barb to their adjuster. Attorney Ruggieri said sliders/windows are an owner responsibility.

Discussion and Approval of SPECIAL ASSESSMENT: The mail out stated that a special assessment of $2,430 was going to be discussed. Unfortunately, more costs and clarified costs have come in since the mailing, so Barbara said the new total needed, which includes more for roof work and coping, a higher cost for the coquina, and clarified costs on elevator repairs bring the new adjusted total to $444,405, or $3,268 per unit. There was discussion about elevator expenses coming from reserves. Some board members thought elevator expenses might be able to be taken from elevator reserves, but more unknown costs came in later.

There was discussion about the high cost of this Special Assessment. Barb said that after the last major hurricane, owners were assessed $3,600 per unit in 2004. Clyde also said if the costs do come in less than expected, the difference can go into the reserves to replenish what has been taken out in all these repairs.

Clyde motioned to approve rounding up to $3,300 per unit to cover Hurricane Repairs and needed elevator and fire pump expenses. April seconded, all board members in favor, and the details for payment were discussed.

The first payment of $1,100 will be due April 30th. The second payment of $1,100 will be due before August 1st, and the final $1,100 will be due before December 1, 2017.

The motion was modified to add the detail that if these payments are not paid on the due dates, a late fee of $25.00 per month would be assessed to the unit owner. Clyde motioned to add that to the original motion, April seconded, all in favor.

Invoices will be sent by mail and email to all owners. This invoice can be forwarded to the insurance company to start your claim under the “loss assessment coverage” on your policy.

An owner asked what happens if someone doesn’t pay. The system starts with late fees, then a lien and ultimately, a unit can be foreclosed on and lost if the Special Assessment is not paid. Attorney Ruggieri said it would be fair to charge just an interest fee to those who ask for a payment plan in advance of the due date. Owners will have to ask in writing in advance, or the monthly $25 late fee will have to be assessed.

More Owner Input: A resident said a couple of owners are listing their homes on Air BnB and renting for less than the minimum rental period. They are also not handing in “renter profiles” when these people arrive. Their advertising also says pets over the approved weight limit would be allowed. Complaints of these transient vacationers yelling, cussing, throwing things, and generally treating the condo as a hotel were discussed. Attorney said he is familiar with owners ignoring the rules to make money, and he is willing to send cease and desist letters if the board wants.

Lights: The lights on the midrise garages are being repaired right now. We have found that the underground wiring is disintegrating, so must be completely re-wired. The work is almost completed.

Pods: An owner felt these are an eyesore and need to be removed. Barb said they are being used while the asbestos repairs are being done. Owners’ complete homes have to be moved to the pods while the work in their units is done. We hope these are gone within the month.

Insulation is being stored in some residents’ garages, and they want it removed. More on this will be discussed at the Monday meeting with the attorney and adjuster.

Adjournment: With no further business to transact today, the meeting adjourned at 12:05 pm.

Respectfully submitted,
Michelle Davis
Michelle Davis, CMCA, AMS, CAM Community Association Manager Reconcilable Differences, Inc.