Garrett’s Run Condominium Association
Minutes of the Board of Directors’
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.
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.
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.
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.
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.
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.
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.
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.
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.
being no further business to discuss, the meeting was adjourned at 8:45
pm by Kathie Heisey.
Lynn Hiott, CAM #35322