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Garrett’s Run Condominium Association 
Minutes of the Board of Directors’ Meeting 
Wednesday, January 28, 2015

Call to Order/Establish Quorum of Directors: President Kathie Heisey called the meeting to order at 6:30 pm in the clubhouse at 7900 Greenboro Drive. Other Board Members present: Vice President Peter Engel, Secretary Angelo Laviano, and Assistant Treasurer Hattie Martin. In attendance by speakerphone: Directors Traci Niederriter and David Tarantelli. A quorum was established.  Lynn Hiott and Michelle Davis with Reconcilable Differences were present. Unit owners in attendance were: Cathy Griffith, Stephen Laurence, Rita Valentino, Rima Laviano, Pat and Peter Cassese, Judy Schneider, Pat Engel, Terri Vazquez, Barb and Ken Snella and Jane Hamilton. 

Announcement: Kathie sadly announced that Al Fassler passed away January 5th. Because he had served as the treasurer, Kathie made a motion to appoint Hattie Martin to fill the treasurer position until the annual meeting in April. Traci seconded the motion, all were in favor. Hattie accepted. 

Approval of the Board Meeting Minutes of November 25, December 16, 2014, and January 21, 2015 Attorney Meeting: Peter made the motion to approve the above stated minutes as written and sent out to all Board members. Angelo seconded, and all were in favor except Traci, who abstained. Kathie stated that the minutes were approved and will be sent to the web for posting.

Financial Report: 
Hattie reported that as of December 31st, the operating account at Sunrise Bank showed a balance of $33,395, but of that amount $16,772 was from prepaid assessments, leaving a balance of $16,622. Sunrise Bank reserve balance is $134,015 and FBC (Florida Bank of Commerce) reserve balance is $85,598 for a total reserve fund of $219,614. Accounts Receivable are at $70,778 with owners still owing for the sprinkler invoices and some owing from the 2014 special assessment. We have $15,196 reserved to cover uncollectible bad debts.  The current financials showed the Association at $26,537 over budget due to stairwell repair costs and not having all the special assessment money in yet. This report will be modified once money is received for the special assessment and approved transfers are made from Deferred Maintenance. The fiscal year 2014 financial records will be audited by Gerstle, Rosen and Goldenberg, who will start their audit in early February. 

Collections: Lynn reported the following: 

Unit #104: A relative offered to pay a modified balance due and has been making good faith current payments. He wants to pay $5,500 of the past due through September, to include the $550 special assessment.  He knows he owes $630 for sprinkler repairs and understands that the $200 per quarter extra fees will begin in March. We did not add interest, but legal fees were a large part of the balance. Currently that is $7,265. If the Board agrees, his $5500 plus the sprinkler $630 equals $6130. That would mean having a $1,135 write off, not counting legal fees we haven’t yet been billed for. In order to make it realistic for him, management recommended adding the $5500, the $630 sprinkler costs, the $800 special assessment for 2015, plus 1 year of fees ($350x12) which equals $11,130. That, divided by 12 = $927.50 per month paid over 12 months. This relative is willing to do this, but needed Board approval. Board agreed to have attorney Ruggieri write a payment agreement stipulating that the Association will write off late fees, interest and legal fees if he makes all payments as required; otherwise all will be added back in and the court case will continue. 

Unit #105: This balance is close to $8K with all late fees, interest, attorney fees and now $630 in sprinkler replacements. Owner did ask for a payoff in early December and attorney gave that to her, but no more communication has been received. 
Unit #207: This owner signed over title and walked away in 2013. The Association rented the unit and covered monthly fees and paid down the balance until the foreclosing bank started being aggressive and renters moved out. The bank foreclosed Nov 19, 2014. The bank has paid the balance owed of $5,330.27. 

Unit #306: FNMA foreclosed 6/16/14. The Association will only receive 1% of the original mortgage, $705.35, so management wrote off the $11,305 to bad debts in 2014. All fees, late fees, and attorney fees since 6/16/14 will be paid or we can foreclose on the bank. 

Unit #308: The bank has a mortgage foreclosure pending, but attorney sent notice to the tenants to pay the Association instead of the owner if they want to stay (legally allowed per FL Statute since owner wasn’t paying us.) The tenants agreed to pay us so that they could stay. They pay $500 per month rent, but it has been difficult to collect; they always have excuses for not paying. We have collected through December, but January is still outstanding. Their rent makes a very small dent in the balance due, but at least the current amount is paid.  They do have $180 in sprinkler repairs, still unpaid. 

Unit #510: This unit was sold at auction to a current resident on 1/14/15. The bank sent all required information to only have to pay Safe Harbor - 1% of original mortgage, which was $81,000 in 2007, so we were only allowed to collect $810.00, and had to write off $18,316.20. Estoppel was just sent requesting $3,808. This should close by end of month, but we wrote off the $18K in 2014.

Unit #608:  The owner deeded the property to the Association in September 2014, and we put a renter in who pays $700 per month. We expect to not have any bad debt write off by the time the bank forecloses on this property. 

Unit #808: Due to Safe Harbor, we had to write off $12,095 towards bad debt in 2013, and we received the 1% mortgage amount of $1,600. Since then the bank, FNMA, has kept the account current, but they did underpay January by the $15 increase. 

Unit #902: Bank foreclosed 9/22/14. We will receive 1% of mortgage, $1,295.63 and will have to write off $20,604.00 in 2015. 

Unit #906. We rented this out for a long time and it paid off almost all the old balance. We only had to write off $2,304.28 (done in 2014.) The bank’s safe harbor payment will only be $548.74. The bank just sold it for $34K to a third party. We will receive all money owed since their foreclosure 10/31/14, approximately $2,305 including a $630 sprinkler bill. 

Unit #918: owes over $4500, but we have a suit going, since this was for water cleanup and repairs that were never reimbursed. 

NEW BUSINESS: 

  • Management “Scope of Work” RFP Discussion: Kathie reported that she sent the RFP to the Board and to date has not heard back from any of them on suggestions or concerns. She asked everyone to send in their suggestions or comments by February 6th so that Peter can begin to collate the responses and put together something for the next Board meeting to discuss.
  • Building Painting: Lynn reported that she forwarded the top three bids to all Board members to review last week. Shawn with Sherwin Williams Paint put a specification together and asked painters to bid, based on his specs. C&J bid $88,675 to paint all 10 buildings. Anchor Painting proposed $110,263 and J&M Painting proposed $125,500. Peter had some concerns about the lack of wording in C&J’s contract and requested that this issue be tabled for further information gathering. Angelo will review the RFP, will meet with the contractors, and will report on this at the next meeting. 
  • Pool Deck Issues: The Committee chairman, Doug Davidson, was not able to attend this meeting, so no update was given. This topic was tabled until the next meeting. 
New Business
  • Unit 709-Legal Issues: Lynn reported that she worked closely with the association attorney, the Board, FBI, Homeland Security, and the West Melbourne Police Department (WMPD) regarding issues with this unit. The WMPD was on the property the week before and the owner’s son, who was living in the unit, was arrested. Friends who were staying with him damaged the unit, so the officers came back and arrested them and also trespassed them from the property. WMPD requested that the association change the locks to secure the property. When this was done, the unit was found in appalling condition. Manager consulted with attorney, and his recommendation was to hire someone to go in and dispose of the perishable food items that were left out or would go bad, clean up the glass and debris that could be a danger, clean the kitchen to prevent roach infestations and protect the surrounding units, unplug all appliances, flush toilets, turn off water heater at breaker and verify that all lights were out. The owner’s son is incarcerated for an unknown amount of time, so the unit is “abandoned” until the named deed holder can be found. Manager agreed to do this for a fee that would be billed to the unit’s account. Management will document everything that is discarded with a complete photo essay and WMPD will be contacted to assist in the removal. Angelo made a motion to approve management to clean out and secure the abandoned unit as stated above. Peter seconded and all were in favor. 
  • Payment Plan Proposals from Owners regarding Sprinkler Invoices: Lynn reported that the invoices for fire sprinkler repairs and replacements went out at the end of December and several owners have requested a payment plan to repay this large, unexpected debt. Lynn requested that the Board approve the payment plans and she would have the payment plans written and signed by the owners to put into their files. Some owners have sent this in writing already. Angelo made a motion to approve the payment plans if the owners abide by the agreement. If not, then all late fees would be added in and payment plan would be rescinded. Peter seconded, and all were in favor. 
  • Annual Meeting First Notice of Mailing: Lynn reported that, per the Governing Documents, the annual meeting must be held the first Saturday of April, which is April 4th at 10 am. With this first notice, a request for Board volunteers for 2015 is also sent. 
  • Owner Request: Holiday Bonus and Recall: Owner of unit #316, Stephen Laurence, requested to be added to the agenda because he felt strongly that Board member Traci Neiderriter, had been verbally abusive to management and he felt that this was not a professional way to manage the affairs of the Association. He said management is leaving because they felt harassed and verbally abused by Traci, and if she wasn’t able to be professional, she shouldn’t serve on the Board. He said he appreciated the Board for giving their time to help the community, but that everyone should be professional, and many of Traci’s retorts were belittling and abusive. He said even though he disagreed with Traci’s voting no to a Christmas bonus for Lynn, this was not the reason why he was seeking her resignation or recall. The reason was her condescending tone and lack of respect.  He said Traci may be an intelligent person but she has not learned how to deal with people fairly and respectfully. Therefore, he did not want her representing his community and he would be sending out information to all owners asking them to sign a recall petition.
Traci responded that she would continue to encourage all owners of Garrett’s Run to question issues they do not understand and that she only wanted to make Garrett’s Run a better community as a whole. She felt that some of Mr. Laurence’s information is inaccurate and would like to discuss that further with him. Traci asked that the specific details of what would be coming be included in the minutes. Stephen stated that he had received 10% of the owners’ signatures, which allowed him to be included on the agenda to state his reasoning, as allowed by Florida Statute. Now he must gather 50% plus 1 signatures of owners. If he does obtain these 61 signatures, he will then petition the Board to recall this Board member. 

An audience member owner stated that Traci is gruff, but she asks a lot of questions that many residents appreciate. She did not think a recall was necessary. 

Manager’s Report: Lynn stated that a letter must be mailed to all owners regarding the 2015 extra assessment of $800 per unit for stairwell repairs, payable at $200 every quarter. She had a draft letter and asked the president and treasurer for their input before sending this out with the annual meeting notice. Kathie will work with Hattie on getting this done. 

Owner Input: Jane Hamilton said some units have signs in the windows, and this is not allowed per the governing documents. Lynn explained that these units are foreclosure units which the bank has re-keyed recently, and she has left a number of messages at the banks, trying to contact the right division to obtain a key or at least have them remove these notices. Jane stated that the signs have not been removed as of this meeting. 

Set Next Meeting: The next Board Meeting is scheduled for February 25th at 7:00 PM

Adjournment: There being no further business to discuss, the meeting was adjourned at 8:45 pm by Kathie Heisey. 

Respectfully Submitted, 
Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.