Garrett’s Run Condominium Association
Minutes of the Board of Directors’
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:
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
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.
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.
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
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.
Owner Input: None.
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.
The next Board Meeting is
set for Wednesday, June 27, 2012 at 7:00 pm at the clubhouse at Garrett’s
There being no further business
to discuss, the meeting was adjourned at 8:45 pm by Kathie Heisey.
Lynn Hiott, CAM #35322