Minutes of the and Board Budget & Special Assessment Meeting
held November 21, 2014
Call to Order: President Curtis Brown called the meeting to order at 4:05 pm.
Establish Quorum of Members: Fifteen of the 24 units were represented; Eight in person and seven by proxy.
Results of Member Vote to Fully or Partially Fund Reserves for Fiscal Year 2015: Fourteen units voted to partially fund reserves and one voted to fully fund.
Questions about Fully
Funding Reserves: A resident said she had been told when she purchased
that the Association was fully funded, and was not happy to find out that
it really wasn’t. Curtis stated that $23,373 of the Special Assessment
is going directly to reserves, plus another $10K is going into Operating
to bring those balances up to workable amounts. He said the spreadsheet
mailed to all owners shows that by the end of 2016, Reserves will have
a balance of $110,000 and be healthy. Fully funding reserves at this time
would add about $50K more to reserves, but would push the monthly fee so
high that it would hurt the Association.
At this time, Curtis introduced Michelle Davis from Reconcilable Differences. He said her team was hired August 1st and has done a tremendous job since taking over.
Adjourn Meeting: There being no further member business, Tina motioned to adjourn the meeting at 4:13 pm. Alice seconded, all in favor.
Board Budget & Special Assessment Meeting
Call to Order: The meeting began at 4:13 pm
Establish Quorum of Directors: President Curtis Brown, VP Tina Compton and Director Alice Chaney were present and Secretary Tom Moran attended by speakerphone. Treasurer John Gontkof resigned last month. This information and a request for a replacement volunteer was emailed to all owners and posted on site. Three residents offered to serve in his place until the next Annual Meeting. Curtis motioned to appoint Betty Ballard of unit #501 because she is an on site owner. Tina seconded, all in favor. Curtis stated that the Annual Meeting is held in the spring, and all are welcome to participate and volunteer to serve on the Board.
Approve Minutes of Last
Financial Report: Manager Michelle Davis stated that through October, the Association has $40K in reserves and zero in Operating. Year to date, the Association is $25,330.57 over budget, hence the need for the Special Assessment. The positive is that all Gardenia owners are paying on time.
Owner Discussion regarding Special Assessment: Curtis stated that this board has worked hard to keep the assessment as low as possible while covering all needed repairs and bringing the bank balance high enough to pay the monthly bills. The Association started the year with repairs and replacements to the swing doors and 3 garage doors. There were a lot of repairs and emergency repairs to the elevator. The fire marshal did an inspection, the first in over 10 years, which gave a large list of items that failed. Much money had to be spent to bring the building up to code. This included new signage, repairs to the fire suppression system, the sprinklers in the ceilings throughout the building, valves and pumps that had to be repaired, standpipe issues in the stairwells, garage pipes that had to be replaced and painted, etc. One water booster pump had to be replaced also. In the spring, the roof was resurfaced, paid from reserves, but this brought the roof reserve fund to zero. There was a main water supply line under the driveway that leaked and cost $4K to repair. The driveway was re-coated and re-striped. The garage floor and the roof of the front garages were pressure washed in the summer. Some of the above items were paid by a special assessment a year ago, and others through regular maintenance. This new assessment will cover some significant but expensive repairs and will also tell us how much of a special assessment we will need in the spring for the elevator modification, which will include bringing the elevator up to ADA standards, replacing the interior of the cab, and most importantly, bringing the non-industry-standard Delta machine parts up to code. The basic report we just had done told us what needs to be done and some estimates, but the next phase with this elevator consultant will be to have a detailed scope of work done and bids obtained to bring back to the Board for discussion. Curtis stated that anything that costs more than $1,000 requires multiple bids, and the reason this meeting took so long was to ensure that we had valid bids for all the work before bringing it to the owners.
This special assessment will
cover the $4,200 for the elevator inspection, report, scope of work and
bidding process. Fire stand pipes in both stairwells, the second booster
pump motor and backflow repairs will cost $12,000. At the pool area,
the broken pipe and shower head must be repaired, the broken patio table
replaced, a pool water filler installed, the cracks and sinking pool deck
repaired, the fence and gates around the pool and pump replaced, and the
wood walkway repaired and painted, with bids totaling $29K. The exterior,
stairwell and trash chute doors need painting, and landscape items need
replacing (some of which have already been done by volunteer Bill Compton),
and every 36 months an insurance appraisal is required in order to obtain
the commercial insurance on the building, and a wind mitigation inspection
helps with credits on annual insurance. This inspection should be done
every five years. Lastly, as discussed in the members meeting, the $10K
to cover overages in the Operating account this year, and $20,400 to fund
the reserve line items that are required in 2014 plus an additional $10K
in mechanical reserves.
Board Vote on Special Assessment: Tina motioned to approve the Special Assessment of $3,650, to be paid by November 25th. Alice seconded. Discussion: For those who are unable to pay this now, the Board decided that a 1% per month late fee on any balance due is fair. They hope all can pay now, but if not, giving 4 months to pay with a fair interest rate was deemed fair. With that addition to the motion, the Board vote was unanimous. The check can be mailed to management’s office or placed in the drop box next to the elevator. Vote: All in favor.
Owner Discussion regarding Budget: None.
Discussion & Ratification of Member Vote: Curtis stated that the proposed budget, which is quite detailed, was mailed to all owners. The column with expected 2014 expenses shows that line items for mechanical and building maintenance were over budget this year. On top of that, Curtis did a lot of repairs this year, but having owners hanging on a ladder in the wind to replace light fixtures and bulbs is not what we should be doing. We need to hire licensed and insured contractors for most of the building maintenance. Insurance is also going up next year. The property insurance is increasing by $3,170 in 2015.
Tina stated that we are trying to forecast maintenance items that need to be done annually and add them into the budget so we have the funds to do the required maintenance.
Board Vote on 2015 Budget: Curtis stated that the budget for this building includes maintenance, insurance, some utilities, including cable, landscape and pool expenses. Being on the beach, high winds and salt air corrode the building elements faster and fire safety issues, pumps, motors and engines are just expensive. Although a $70 per unit per month increase is a hit no one is happy about, this year’s budget did not cover the basic needs of the Association. Based on the owners’ majority vote to partially fund the reserves in 2015, Tina motioned to approve the 2015 budget as mailed out, with partially funded reserves, at $595.00 per unit per month. Alice seconded, all in favor.
Maria LeBron asked that the Board discuss the noise the balcony railings are making in some winds. The vibration noise is affecting at least 4 units strongly, and many others have heard it. All deferred to Curtis, who is an engineer. Assessment of the problem has been hard, since it is usually in the middle of the night. The Board agreed to have the fence contractor look at this issue when they are on site for the pool fence. New welding or adding rubber are other options to try if the fence contractor can’t help without total replacement.
Another issue discussed is
moving in and out. Curtis said the moving trucks can park by the dumpster
doors, but movers must understand that people who use the garages near
that area may need the truck to move when they need to leave.
A resident asked about the
pool temperature and lights. Curtis stated that there was a problem with
the thermostat recently. The thermometer showed the temperature as 79 degrees,
but it was actually heating to 87 degrees. Ted Manna from Reconcilable
Differences was able to get a replacement thermostat installed under warranty
at no charge.
The sliding glass doors in
the rec room aren’t able to be locked anymore, so there is a pole at each
slider and it is important that if a resident opens these doors, they replace
the pole before leaving the room.
One owner on the conference call thanked the Board for allowing her to listen in since she couldn’t attend in person.
Curtis noted that RDI has a nice website with a lot of Gardenia information. If an owner has questions, contact Michelle. If she can’t help, she will get the questions to the Board to answer.
An owner asked how to obtain a working amenity key. These can be made by the local locksmith Lock Haven, but their hours are only 8 am to 10 am. If needed, contact management to obtain one, but there will be a $25.00 cost if they must get to the locksmith.
It was noted that one unit has replaced an exterior light fixture with a non-conforming one. This will be investigated.
A resident asked about installing a new door and frame. Curtis noted that a county permit is required, along with board approval. It is very important that the contractor not drill into the floor or ceiling, as this would compromise the structural integrity of the building.
Paint color was also requested so touch up could be done. We will obtain the paint name and number from the original paint manufacturer and place this on the website.
Complaints were received about residents in an “03” unit throwing cigarette butts over the balcony into the parking lot on the south side. This will be investigated.
Currently, the maintenance man is on site twice per month. If anyone has concerns about the building or grounds, they are asked to put these in writing to management, either by email, utilizing the “attention form” on their website, or by placing a note in the box next to the elevator
The approved work on the fire pump stand pipes will start after January 4th and the pool area work and fencing will be scheduled for the last 2 weeks of January.
There being no further business, the meeting adjourned at 5:55 pm.
Michelle Davis, CMCA,