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Garrett’s Run Condominium Association 
Minutes of the Board of Directors’ Meeting
Wednesday, May 30, 2012
Call to Order/Establish Quorum of Directors: President Kathie Heisey called the meeting to order at 7:04 pm in the clubhouse at 7900 Greenboro Drive. Board Members present were: Treasurer Hattie Martin. In attendance by speakerphone were: Vice President Peter Engel Secretary Angelo Laviano, Directors Al Fassler and David Tarantelli.  A quorum was established.  Lynn Hiott with Reconcilable Differences was present. Unit owners in attendance were: Josephine McLean.

Approval of the Board Meeting Minutes of April 25, 2012: Al made a motion to approve the minutes as written. Angelo seconded the motion and it passed by unanimous voice. 

Guest Speaker Josh Ranew with Ranew Insurance: The Board was concerned because the new policy shows deductibles going from $2500 to $5000. They also asked Josh to explain why last year’s carrier had a stipulation that says if you file a claim, they automatically go to the $5000 deductible. The association filed a claim for $2700 last year and this was the cause of the increase of the deductible and there is no way of getting around this. Josh did stated that there is a potential of more credits coming for secondary water resistant in the wind mitigation forms, which will drop the premium even more, but for now, the coverage is the same as before:  There is a 3% per calendar hurricane deductible. (Example: If damage occurs in  3 different hurricanes this year, there is just  one deductible;  it is cumulative.  The Liability policy is with Lloyd’s of London through a company called Braishfield’s, which has an office out of Orlando, so  claims will be locally handled. General aggregate coverage is 2 million dollars. Products aggregate coverage is for when the association has a 4th of July cookout and the hamburgers give someone food poisoning and sues the association.  The Personal and Advertising aggregate coverage is really for an officer of the Board who makes a statement to someone that is not true, but they are not trying to defraud them or mislead them; they just mis-spoke. The association has a million dollar per occurrence and medpay of $5000. Medpay is if someone hurts themselves and is not interested in suing the association, but they have doctor bills or a medical deductible that needs to be paid. This is a good faith payment to avoid being sued. Crime/Fidelity Bond:  the state statute requires the association to insure all money that could be stolen from the accounts. The association has a policy for $300,000. Once the accounts exceed the $400,000 level, then this policy will need to be increased and it is estimated to be a $50 increase in premium per year. Director’s and Officer’s coverage is through Chubb, a million dollars per occurrence if the Board is sued for their decisions.  Umbrella liability has a 6 million dollar overall coverage for any one lawsuit.  The total premium is $72,482.68, which is divided into 12 equal payments of $6,142.87. There is no larger down payment needed.  American Coastal is the property insurance provider.   

Financial Report:

  • Hattie Martin reported that as of April 30th, the operating account at Sunrise bank showed a balance of $ 74,195.17. Sunrise reserve balance was $ 208,508.99, for a total of $282,704.16. Our A/R is $ 87,236.09, which includes all legal and administrative fees brought over from Clayton and McCulloh. Total assets are $4,367, prepaid expenses of $3,872, petty cash and key deposits. Prepaid assessments are $18,455.00. The golf cart has outlived its useful life and the accountant has written this off as zero. We have liabilities of $52,553 which includes bad debt, security deposits and amounts due to the Reserve Fund. Total liabilities equal $374,659.25. Met with the accountant last month and finalized the audit from 2011. Copies are available in the office or per email request. Going through the January through March expenditures, many items were charged to maintenance line items, but the accountants agreed many of these could be charged to various reserve accounts.   Hattie discussed the fact that 2 units had water lines burst under the slab and totaled $6,242.18. This could be charged to the Plumbing Reserves. The AC handler in the clubhouse had to be replaced, for a total of $2,045, which could be paid with Pool/amenities Reserves.  The Fire Marshal had issued citations for items to be repaired and this amounted to $5,258.92, to now be paid with Fire Alarm Reserves. These items all totaled $16,970.50, to be credited to the maintenance operating budget and paid from the Reserve accounts. Peter made the motion to move these amounts from operating to reserve accounts. Al seconded the motion and it passed by unanimous voice vote.  

Unfinished Business:

  • Collections/Legal Update: Lynn reported that unit 902 was closed in foreclosure and at unit 108; the owner signed a deed-in-lieu to the association.  Unit 902 had minor issues and Vance repaired these, however, once the power was turned on, the AC unit was found not to work. It would take $2300 to repair this problem, but we have a tenant set to move in and he doesn’t want another unit. Lynn expressed to the Board that it was unclear where the Bank foreclosure was in their process. It was stated that the association may have up to a year of title before the bank takes over. Angelo made the motion to repair the AC unit and put in a used stove and refrigerator, not to exceed $2,500. The rent for #902 will be t $600 per unit with a $500 security deposit, and Unit 108 will rent for $650 per month with a $550 security deposit. Al seconded the motion and it passed by unanimous voice vote.  
  • Tree Trimming: Lynn reported that she met with 3 different companies. Bluebell was up charging their bid for Leland doing the work. Leland is the company that removed the trees from behind 300 building and did a great job. Lynn had Leland bid and remove Blue Bell from the bidding.  Leland bid $7,500 for 5 trees to be removed completely, 3 trees to have stumps ground, and to have over 65 trees trimmed. The ones that will be removed are not Oak trees and therefore we don’t have to plant new trees in place of the ones removed. The Oak trees that were discussed to be removed are thought to be okay with only stump grinding for now. The trees will be cut a good distance from the buildings. Leland also agreed that while they are on the boom near the buildings, he would also make sure the gutters are cleaned out as well. Lynn and Vance will be with the tree trimming company all the days that they are present on the property to verify that all trees are completed correctly. Peter made the motion to accept the bid from Leland to not exceed $7,500 for the tree trimming, stump grinding, and tree removal. Once this has been accomplished, Blue Bell will immediately do the annual leaf cleanup. Al seconded the motion and it passed by unanimous voice vote.
  • Cosmetic Board Update-Hattie reported that the association spent just over $13,000 for the cosmetic board replacements. Ralph’s Handyman Services was requested to replace all of the boards on the 900 building due to them being the worst.  The front side of the building had the most damage   due to the sun and rain. The total of the bid for the 800 and 900 buildings to be repaired is $9,950. To rent the boom by the week is $602 and by the month it is $414, so it is cheaper to rent the boom for the month. He stated that they would not be able to start this work till mid July or early August. Al made the motion to accept Ralph’s Handyman bid, not-to-exceed $10,000 from the Painting Reserve account. Angelo seconded the motion and it passed by unanimous voice vote.
  • Clubhouse Rental Application/Deposit: Lynn reported that this has been discussed before and the only changes would be to state that the deposit would be only for private functions only. Peter requested that Lynn contact the Fire Department to get a sign stating the maximum amount of people allowed in the clubhouse at one time.  Once this amount is determined, this will assist with deciding on the refundable deposit.  This topic will be discussed at a later time with this information given.
  • Manager’s Report: Vance continues to work with all the contractors that come onto the property and is doing a lot of upgrades to the rental units. Lynn will be working on the newsletter and asked for any articles to be submitted soon.  Kathie agreed to do a Presidents message of all last year’s accomplishments. Al stated that he would like to see what is envisioned for the future, how the money is being spent, and just find a way to keep the owners really updated.  Kathie asked Lynn to send the Board what is completed to date for the newsletter and then at that time the Board could submit suggestions. The clubhouse floors are in dire need of stripping and waxing. Lynn was able to get Service Master to bid the stripping for $650. The photos they showed Lynn of another floor that was completed whereas phenomenal and really made a difference. Al made the motion to approve Service Master’s bid to get the clubhouse floors stripped and waxed. Angelo seconded the motion and it passed by unanimous voice vote.  Lynn reported that owners have requested newer equipment in the weight room, for example they are requesting free weights and a spinning bike. Lynn contacted Play it Again Sports and the sales representative Brett, would come out and meet with us  to look at the current equipment and make suggestions. Lynn stated that she would report the findings at the next meeting. 
New Business:
  • Sod behind 300 building: Lynn received a proposal from Blue Bell for $1,300 to completely sod the back of the 300 building with 6 pallets. Peter asked   what type of grass this would be, and if it grows in shade. Lynn will contact another company to get more bids and report at the next meeting on this. David stated that he would send some information to Lynn via email on the grass. The type of grass would need to be included in the bid. 
Owner Input: None.

The next Board Meeting is set for Wednesday, June 27, 2012 at 7:00 pm at the clubhouse at Garrett’s Run.
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.