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Garrett’s Run Condominium Association 
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.

Financial Report: 
Hattie reported that an email was sent out to the Board earlier explaining some changes in the December 31, 2014 financial report that was shared at the January 28th Board meeting. She had asked RDI to review the data to ensure that all receipts earmarked for the NAC contract were in, that all transfers from the pool and deferred maintenance reserve accounts had been moved, and that all the standpipe replacements, upgrades to the gates, locks, and related repairs to the pool area as required by West Melbourne Code Enforcement (WMCE) were also paid from reserves. 

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. 

NEW BUSINESS: 

  • Management “Scope of Work” RFP Discussion: Kathie reported that she sent the RFP to the Board and asked for suggestions or concerns to be returned by February 6th and nothing was returned. Kathie also reported that it was not appreciated nor allowed for a director to seek out another management company’s bid on their own. Peter made a motion to send the RFP that was put together by a paid consultant back in 2011 to all the management companies listed with Space Coast Community Association and have them returned in sealed bids by March 12th. Angelo seconded this motion, and all were in favor. The sealed bids would be opened by the officers of the Board, placed on a spreadsheet and presented to the Board at their next scheduled meeting. 
  • 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. Several Board members 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 Laviano and Jim Hamilton 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, reported that he reached out to the same companies that he spoke to in October 2014, to verify that their bids were still accurate. All Phase Pool bid to drain, resurface and bring code violations up to current code for $9,750 and Pavers Elite bid $697.80 to remove the pavers around the side of the pool, try to locate a leak if there was one there, repair the drainage and put the pavers back in. Peter made the motion to approve the contracts with All Phase and Elite Pavers. Angelo seconded, and all were in favor. Management will contact the vendors to move forward and confirm dates for start-up and completion. 
  • CPA Audit Update: Lynn reported that two CPAs who work for Gerstle, Rosen, Goldenberg will meet with management and the treasurer on March 5th to go through the financial records and ask questions. We hope to have a draft audit completed by the annual meeting in April. 
  • Gym Update: Lynn reported that the new ceiling and lights have been installed in the gym after the water damage. The gym is now open to the community.  
New Business
  • Landscape Committee: Nothing to report. However, Lynn reported that Bluebell Landscaping was closing their contracts with all their associations south of Pineda Causeway. They sold their Garrett’s Run contract to a new company R & D Landscaping, who has been out to the property for two weeks already. This new company was willing to accept the terms of Bluebell’s contract and the Board agreed to continue with them and see how things were looking at the annual meeting. Should this company continue to fit into the community, then the Board suggested a new contract be written up and signed with the new company. 
  • Tree Trimming: Management will get RFP’s sent out for vendors to bid. 
  • Tennis court resurfacing: The Board asked for this to be tabled for further information. 
  • Stairwell Repairs: Tabled for further information. 
  • Massey/Truly Nolen Contracts: Drywood Termite coverage was discussed at one time, but the Board decided that the cost was too high to cover in the operating budget, so they would treat the units on an as-needed basis. No more drywood termite damage was found during the stairwell renovations. 
  • Cosmetic Board Repairs: Tabled for further information. 
  • Pool Furniture: Tabled for further information. 
  • Pool to be resurfaced or drained and acid washed: Discussed earlier in the meeting. 
  • Replace/repair fencing around dumpster: Management advised the Board that these areas are rotted and are in need of replacements. Tabled for further information. 
  • Reserve Study Update-Tabled for further information. Lynn reported that Reserve Advisors who completed the original study in 2012, would charge $3,050 for an update. Another bid was received from Custom Reserves and they would charge $1,900 for the initial study and $450 for the update in 2 to 3 years.  
Manager’s Report: Lynn stated that the second notice for the annual meeting would be mailed out within the next few weeks. There were three residents who sent in their candidate form to be on the 2015 Board, so no vote was needed. The new Board will consist of Jim Hamilton, Elvis Malena and Traci Niederriter. At the annual meeting, the new Board will be encouraged to appoint 4 owners to fill the vacant positions. At the meeting tonight, two more owners turned in their intentions to run for the Board, but the time had passed, so their names were given to the new Board members. If the new Board so chooses to have them serve on the Board, they can appoint them. This means that two seats are still vacant. All homeowners are encouraged to let the new Board members know if they were interested in serving on the Board for 2015/2016. 

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. 
Scott Tilley stated that he was willing to serve on the Board along with his colleague Tauhida Parveen, who also owns a unit. He stated that a change of management along with an almost new Board would be a disaster for the community. 

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. 

Adjournment: There being no further business to discuss, the meeting was adjourned at 9:45 pm by Kathie Heisey. 
  
Respectfully Submitted,   
Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.