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DBAC (DOLPHIN BEACH CONDOMINIUM ASSOCIATION, INC.)

ANNUAL MEETING MINUTES

Friday, March 4, 2011

 

1. Meeting Called to Order:

The meeting was called to order at 3:00 pm by Pam Morrison, President.

 

2. Certification of Proxies & Establishment of a Quarum: 

With 40 total units, a total of 21 were needed either in person or by proxy.  15 proxies were received and 6 owners were present, totaling 21.  A quorum was established for the annual meeting.

 

3. Reading & Approval of Minutes from 2009 Annual Meeting: 

Pam Morrison read the 2009 Annual Meeting minutes for those present and asked if there were any questions or changes.  Pat Kerns made a motion to accept the minutes as written.   Norman Wheaton seconded the motion and it passed by unanimous voice vote.

 

4. Officers' Reports: 

Pam Morrison thanked the owners present for taking the time to attend their annual meeting. Pam reported that the plumbing project has been completed and there were no crises to date. She reported that the buildings were due to be painted along with the upper walkways. The air conditioning covers are going to be replaced with smaller ones so that it is easier to walk in the walkways.  If a unit still has one of the larger units, the current cover will be replaced after the building is painted.  As those larger air-conditioners are replaced, the new smaller cover will be installed.  The courtyard was resodded and plants replaced.  Owners and visitors have commented on how nice the courtyard looks.  There’s the possibility of resodding the east lawn after the building is painted. 

 

5. Guest Speaker:

Josh Ranew from Ranew Insurance Company was present to discuss two issues with insurance that have recently come up, and to answer any questions that owners had.  Josh stated that last year Citizens Insurance sent out “Inspection Depot” to check all the wind mitigation credits for the Association.  Josh felt that some of the inspectors were not particularly qualified, because they looked at the roof and said it didn’t meet the qualifications and DBAC’s insurance credits were removed. Because of this, the premium rose by about $7500 just for the wind and property portion of insurance. Josh worked with our appraiser for several months and between the two of them showing Citizen’s the errors caused by Insurance Depot,  the whole program was shut down and the DBAC credits were re-established. Unfortunately, the association cannot get out of the rate hike, but the mitigation credits are helpful.

The second issue is with flood insurance. In the past 2 1/2 months, some owners began getting letters from their mortgage companies stating the association did not have enough coverage for their flood policy. Josh worked individually with each letter received and most mortgage holders understood that we had correct coverage. Two banks, SunTrust and Chase, refuse to see reason. They are looking at recent changes in flood zones, they found that DBAC is in “VE” zone now, and therefore wanted a flood certificate that showed that. Most mortgagers accepted the fact that we were “grandfathered-in” to the old zone, but not these two banks. Therefore, they would “force-place” insurance for their customers, at approximately $3,000 each, or the Association would have to pay the higher VE zone rate for flood insurance, raising the premium by about $8,000.

DBAC was built prior to FEMA and the national floodplain maps and they were in what's called an X or BC zone.  This was put into place over 40 years ago and at that time this was a low risk floodplain. Because of a new check box on the certificate that is not even being used yet,  SunTrust would not accept the AE zone and are trying to say the Association is a VE zone unless we can prove that the association had flood coverage in 1979.  Josh said he had no luck in obtaining proof of on-going insurance coverage for 32 years, so for now, DBAC needs to comply and purchase flood insurance with a VE rating. He is hoping that when FEMA remaps the entire county later this year, they will see the improvements that have been made for drainage therefore allowing the Association to have a better chance of the lesser policy flood zone. Flood insurance is federal so even taking the business to another agent would not help. With Ranew Insurance the Association is receiving 12% of the premium back as a rebate,  so from today until November, DBAC will pay the prorated amount for VE coverage and hopefully by November this flood plain issue will be fixed.    One owner felt that individual unit owners should be responsible for their own flood insurance. Pam said the property belongs to all of the owners,  not individuals, so we can't ask a unit owner to pay for that out of their pocket. This is going to happen with the other mortgage companies; SunTrust just happened to do it first.  The ironic thing is when Congress was trying to help the owners, they created rules but didn't make them retroactive. It was considered from this time forward and that's what the mortgage company jumped on.

 

Josh was able to force a re-inspection hopefully next month. At that time he and management will be on-site with the inspector to answer any questions that they may have.

 

For now the association's premium will go from $16,000 a year to $24,000 a year. An owner asked Michelle about our current budget and how we could afford this increase. She stated that when the budget was prepared, we had assumed those mitigation credits were gone, so budgeted higher for property insurance. Since we saved the $7500 on that, we can apply the savings to this new increase and still be within budget.

 

6. Financials:

Michelle reported that the Association ended the year, expenses versus anticipated income, very well. The issue is there are a few units that have not paid their special assessment.  The association had to take back Unit #26, so we are trying to rent the unit for $600 a month, unfurnished, or sell it to get reimbursed. This unit is livable and some money has gone into making it that way, so approximately $20,000 is due from this unit to DBAC.  We have 2 units in foreclosure; Unit #1 owing about $12,600 to the Association, and we are trying to foreclose on it and get title so we can rent it out; and the owner of unit 213 gave the unit back to the bank but paid assessments up to date prior to giving it back so we won't lose any money on that unit.  We do have another unit that we just had to send to the attorney for collection and we will be trying to foreclose on the unit so we can possibly get a renter. Contrary to popular belief, the banks are taking 3-4 years to foreclose due to the volume of foreclosure properties, so this is why the association is trying to foreclose on them and gain a renter to start paying the monthly assessments until the mortgage holder takes the property from the association. This is NOT a credit risk for the association. Unit #215 never paid their special assessments and are more than 3 months past due on their monthly association dues.  There are 3 other units that are slow paying and are set up on a payment plan, and are paying at least an additional $100 per month towards the special assessment. All those on payment plans will be paying finance charges.  Unit 4 is refusing to pay the special assessments, but due to the Florida Statues changing, we can now demand rent to be paid to the association until their past due account is satisfied. We can also foreclose on the unit and put in our own renter.  There are two more units that the association has served with Notice of Intent to Lien. The association has about $72,000 in receivables. $20,000 is from the unit #26 that we took back and $12,600 from unit #1 but the rest are just slow payers.  An owner stated that some payments are better than none, but asked if they were being charged interest on the balance due and the answer was “Yes”. Another owner questioned if this was in the best interest of the association and Pam answered that the Board is doing everything that is possible in the best interest of the owners. Michelle explained that when a unit is foreclosed on by the bank we get either 12 months of assessments or 1% of the original selling value whichever is less, plus when the bank takes possession they have to keep current on the monthly assessments.  We prefer that the banks  hurry up and foreclose so we can get them to pay the monthly fee, but they are not doing that. The board stressed that the special assessments are not going to be forgiven nor will they be written off. We “will” collect the money.

 

Pam explained that there are three people on the board and no other owners came forward to volunteer for these positions. Pam stated that people are quick to complain but no one is coming forward with a feasible solution or even ideas.  Pam stressed that not one person put in their intent to run for the board this year. An owner agreed that no one appreciates the people that do run for the board or what they are attempting to do.  Many people just don’t care and others feel they can do whatever they wish. Pam said she and the other serving directors are only continuing because no one else will do it.

 

Pam gave a brief history on the plumbing issues and the reason for the special assessment. She stressed how the board agonized over this decision and no one wanted to bill a special assessment. The only other option was to continue to pay astronomical prices to repair plumbing that was 50 years old. Even though the market is not good right now, having upgraded plumbing is a good selling point.

 

Pam then reported that unit 22 has submitted an insurance claim for $10,600 stating it was due to flooding of their unit during the plumbing repairs.  The association feels that their issue was not from the plumbing project at all.  The association, management and the plumbing company have been working together to fight this claim. If this owner prevails, our insurance premium may go up next year.

 

7. Open Forum: 

An owner asked whether it was necessary to paint the whole building and whether we have the money for it. Michelle responded that we do have the money in reserves to paint the building and it is needed since it has been over seven years since last painted, the walls are chalking and new paint will also help waterproof the building envelope. It will, however,  deplete the painting reserves.  Another resident questioned the different color paint on the walkway upstairs. It was explained that the painter is trying to find the best product to use on the upper walkways so they are doing a sample area.

-Due to the Florida Statue changing, only unit owner names and addresses can be given to owners. It was suggested a list be given to all the unit owners to help update who is renting in some of the units without the Association’s knowledge. There was discussion about several units that are posing a problem.

-Unit owner Pat Kerns asked about repainting the lower walkways. Kathy responded that the lower walkways were just re-done and then the gas company came out and scratched that up. The contractor has agreed to come back out and repair the damaged areas.  An owner questioned the laundry room floor and stated that a second coat needed to be applied as it still looks dirty. Kathy will look into this situation.

-Norman asked about the sprinklers not working. He stated that Ray from B&B Sprinklers was there the day before but there are several sprinklers not working, especially in front of Vivian’s unit. They are supposed to pop up and they don’t, some have been buried by the new sod. Pam and Kathy stated that they will look into these issues and see where and what seems to be the problems and will get them repaired. It was brought up that the landscaper does not take care of them and needs to preserve the system. Kathy will bring this to their attention immediately.  Norman had asked about the east side and we’re hoping that after the building is painted we can resolve whether the sprinklers are working or not, and then possibly re-sod that area also.

-Pam brought up  the “Feral Cat Colony”  that an owner has tried to establish. It is illegal to try and establish a  colony on common or limited common property. This owner has been told that she cannot feed the cats. There were traps set up to catch them and the traps were stolen. An owner asked what the next course of action would be since she refuses to cease and desist the feeding the cats. Michelle responded that the association could go into arbitration and the start up fee would be $750, which this owner would be responsible for half of. Pam stated also that the security cameras are going to be repaired and so the “proof” can also be sent to animal control for possible fining.   Also Kathy was asked to send Publix a letter requesting they not supply free food/cash for this illegal “Feral Cat Colony”. The general consensus from those present was that we need to move forward and start arbitration.  Pam Morrison made a motion to move forward with the arbitration.  Sally Ballew seconded the motion and it passed by unanimous voice vote.

- Unit #10 is also requesting permission to install central air and heat. There are 3 other units on the east end that already have central A/C in place, but none of these were approved by the association. Kathy stated that she has a meeting scheduled with the AC company to discuss possible small compressors that would sit next to the step walls or against the wall in place of the window a/c’s. She said  the board should discuss approving this for all units if certain parameters are met so that the units  won't interfere with people walking down the walkways or affect the walls of the building. They may also have to bury a pipe for the drainage to go into the parking lot, which would all have to be covered at the owner’s expense.

-An owner stated that the stairs look very dirty. Kathy stated that the stairs and second level walkways will be part of the painting of the buildings, but in the meantime, she will ask the “janitorial personnel” to scrub the steps to see if that helps.  

-It was reported that the tenant in 214 has a friend who is walking into other units and basically making herself at home. 

-An owner asked if there was a warranty for the sprinklers. Kathy stated that there was no warranty, but would have the issues looked into by the irrigation company.  Norman stated that Lorinda told him that she can repair sprinklers.  Management will look into that.

-Other issues consisted of:

  a.) Unit 240 is being rented for less than three months at a time.

  b.) Unit 30 is causing a lot of noise in the middle of the night which disturbs the other residents.

 

8. New Business:

None at this time.

 

9. Presentation of the 2011 Board: 

    Sandy Hunter
    Pam Morrison
    Deborah Stanley

 

10. Adjournment:

Pam Morrison closed this session at 4:05 pm.

 

Respectfully,

 

 

Kathy Watts, CMCA, LCAM

Reconcilable Differences, Inc.