Minutes of the Board of Directors’ Meeting
Wednesday, February 25, 2015
Call to Order/Establish Quorum of Directors: President Kathie Heisey called the meeting to order at 7:00 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 with Reconcilable Differences was present. Unit owners in attendance were: Cathy Griffith, Rima Laviano, Pat Engel, Josephine McLean, Doug Davidson, Scott Tilly, Lucia Kirkpatrick, Barb and Ken Snella, Brendan Cullinan and Jim Hamilton.
Approval of the Board Meeting Minutes of January 28th: Traci asked for the following correction to the minutes: Stephen Laurence is not a homeowner, but has power of attorney to attend meetings for the unit. Peter made the motion to approve the minutes with the requested correction. Angelo seconded, and all were in favor. Kathie stated that the minutes were approved and will be posted on the website.
The revised financial reports were sent out to the Board members. Hattie explained what occurred in the revisions: An accounts payable of $30,400 had been reduced to $4,400 with a difference of $26,400. A net change of $5,353.33 had been moved from operating to the reserve fund. The components were $15,000 from deferred maintenance to cover stand pipe replacements and upgrades to fire systems; $2,296.67 transferred from pool reserves to cover lock and gates recommended by WMCE; $26,400 added to stairwell reserves, and $3,750 from reserves to cover gym duct work that had been previously paid from operating. Hattie reminded everyone that the final authority will be determined by the CPA firm currently conducting the 2014 audit. She went on to say that from the December to January financials, the A/R (Accounts Receivable) has decreased substantially. Many of the outstanding accounts were written off, banks have foreclosed and some settled their accounts while others had not sent in their payments as of the cut off for January. Some homeowners requested and were granted payment plans for the 2014 special assessment as well as the invoices for the sprinkler work.
The association only has title to two units, which are being rented out at this time. Hattie reported that as of January 31st, the operating account at Sunrise Bank showed a balance of $31,774, but of that amount $14,683 was from prepaid assessments, leaving a balance of $17,091. Sunrise Bank reserve balance is $148,592 and FBC (Florida Bank of Commerce) reserve balance is $85,616 for a total reserve fund of $234,209. Accounts Receivable are at $45,126 with owners still owing for the sprinkler invoices and some owing from the 2014 special assessment. The current financials showed the Association under budget by $2964.
Collections: Lynn reported the following:
On Unit #902, the Association had to write off $18,000 due to Safe Harbor, but by renting this unit out, the bad debt was not as large as it could have been.
Unit #207, the bank foreclosed and the debt was paid in full.
Unit #104: The payment plan was not adhered to, so the association is moving forward with the foreclosure sale.
Unit #105: The owner wants to short sell this property and asked the association to waive approximately $4,000 of her debt and accept the offer of $5,000 as payment in full. Peter made a motion to deny the request, and to continue moving forward with the foreclosure sale. Angelo seconded, and all were in favor.
Unit #918: owes over $4500, but we have a suit going, since this was for water cleanup and repairs that were never reimbursed. She is also about 3 months past due in her monthly assessments. A letter was sent to the tenants for demand of rent, but they have not reached out to the association to pay their rent yet. The owner requested the association consider a deed-in-lieu of foreclosure. Peter made a motion to accept the deed in lieu of foreclosure and asked that the attorney get this written up ASAP. Angelo seconded, all were in favor.
Owner Input: Jim Hamilton questioned the Board about why management was leaving and what could be done to keep them. Management stated that they gave their 30-day notice of termination due to a Board member/owner belittling them, having no respect toward management during Board meetings, and that the rest of the Board would not back the management company up when this happened. Jim stated that since RDI has been in place, there has only been great improvements and it would be a disservice to allow RDI to leave. A long discussion ensued and Traci commented several times that she did not want to hurt the community and would resign from the Board if this is what was needed. Traci asked Management to set up a meeting to discuss the issues and see if a fair resolution could be found. Therefore, a meeting was schedule for the next morning at 9:30 am by conference phone. A later meeting could not be entertained as Traci stated she would be unavailable until the end of March.
Kathie Griffith stated that
she wanted to support Jim in his statement about management being strong
and well needed within this community. She highly recommended that the
Board have this meeting with management to try to reconcile the differences.
Doug Davidson also agreed that resolving the Board and changing management at the same time would be a recipe for disaster. He stated that he can’t serve on the Board as he is always traveling, but is willing to help in any way that he can.
Lucia Kirkpatrick spoke up as well about how much she appreciated RDI management and what they have done to this point and would really hate to see them leave as well.
Set Next Meeting: The next Board Meeting is scheduled for March 18th at 7:00 PM.
being no further business to discuss, the meeting was adjourned at 9:45
pm by Kathie Heisey.