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Garrett’s Run Condominium Association
Minutes of the Board of Directors’ Meeting
Wednesday, July 23, 2014

Call to Order/Establish Quorum of Directors: President Kathie Heisey called the meeting to order at 7:06 pm in the clubhouse at 7900 Greenboro Drive. Board Members present were: President Kathie Heisey and Treasurer Hattie Martin. In attendance by speakerphone were: Treasurer Asst. Al Fassler, Secretary Angelo Laviano, and Michelle Davis with Reconcilable Differences. A quorum was established.  Lynn Hiott with Reconcilable Differences was present. Unit owners in attendance were: Michael and Chelsea Link, Cathy Griffith, Terri Vazquez, Fountaine Wallace, and Judy Schneider. Guest attending included Harry Gunthral.

Approval of the Board Meeting Minutes of April 23, 2014: These minutes were not sent out to Board members for approval, this is tabled for next meeting.

Financial Report: 
Hattie Martin reported that we used a new CPA firm this year and they were late getting us the 1st draft back to us. It then took 3 more drafts before we received an acceptable final version. That final CPA Review has just been received and now copies are available in the office should you want or need one. Please see Lynn for those copies. Hattie stated that the CPA combined several accounts and made it very impossible to follow so she created a crosswalk to show our accounts versus their combined accounts. If you would like a copy of this, please let Lynn know. Al is officially the treasurer but due to medical conditions, he is transitioning into this position. For the current time, Hattie will be assisting Al with the financial reports. She reported that as of June 30th, the operating account at Sunrise bank showed a balance of $59,313. This included $19,085 in prepaid owner assessments, so there is actually only about $40,000 in the operating account.  Sunrise Bank reserve balance is $107,445.42 and FBC (Florida Bank of Commerce) reserve balance is $125,473.45 for a total reserve fund of $232,918.87. Accounts Receivables is at $99,729 with $1,100 still owing on the special assessment, by foreclosure units that have not paid.  We have $70,164 already expensed for bad debts as the accountant recommended last year.  Al made the motion to accept the financial report as stated, Angelo seconded the motion and it passed by unanimous voice vote. 

Collections: Lynn reported that, per Board directive, cost deposits were sent to the attorney to begin lien foreclosure on units 104 and 105. With regard to unit 709, over the years since they stopped paying, this account has been handled by 4 attorney firms. Even though Ruggieri Law Firm is the current handler, the past attorney, Larsen Associates gave an estoppel to the bank and requested only $1,100 in balance due, which they promptly took as payment towards their bill for this account. Unfortunately this estoppel satisfied the debt to the bank, so we have no recourse to try and obtain more money. It is also not worth the cost to sue Larsen, plus trying to obtain more money than legally allowed by “Safe Harbor” was going to be hard anyway, so as of July, the balance owed on this account, $16,851.98 will be written off to bad debts, but we will now have a paying owner in the unit, and we expected and saved for this write-off.

Unfinished Business:

  • Stairwell Repairs update: The stairwells that were approved to be repaired are completed. After all final bills from NAC, the contractor, along with the engineer’s oversight costs and electrician costs were received, the final cost of repairing 21 stairwells came to $237,586.00. This total does include $8,700 to repair one more stairwell due to a hole in the landing. The Association set aside $113,100 for the initial phase. The Board must now decide how to cover the balance of $124,486 that was needed to ensure structurally unsafe stairs were repaired. 
Al explained that there is a reserve fund called “fire upgrades” that currently has $67,000 saved to upgrade the fire system as required by the fire marshal, but this upgrade requirement is now set to start in 2016 or later. This money may be needed in the future, and the Board agreed to continue to fund the account, but the Board believes that taking $65,000 from this account to help offset the current stairwell bills, along with a special assessment of $550 from each unit would give the Association $131,000 to use right now, as needed. Should the owners choose not to use the reserve account, then we will have to special assess each unit $1,100 this year. Management explained that the membership will have to vote to use the Fire Alarm reserve funds, but the membership will not be a part of the vote to special assess the owners; that is a Board decision. Hattie explained that being required to install new stairwell railings was an unexpected Building Code requirement and was not a part of the original contract. 
  • We also need to put a roof on the clubhouse. It has been discussed in the past, but due to rain damages recently, the ceiling in the weight room fell in, proving that the roof is leaking and is now an emergency need. There are funds in the roof reserve account, and Lynn was asked to obtain a fourth bid before the Board will move forward. Management explained the immediate danger, but agreed to obtain another bid. Total Home Roofing is the lowest bidder at this time, bidding $21,000 which includes some wood replacement also. The Board understands the time restraints they are under in getting the clubhouse roof replaced. 
  • Landscape Committee Report: Cathie reported that the trees in front of 700 building and behind 200 building have been removed. She suggested increasing watering time for most of the areas to keep the grass alive, and asked management to check with Irrigation Company to see what the watering times are. 
  • Combine Reserves for stairwells-owner vote: Al explained that this is the $65,000 needed from the fire alarm reserve account as discussed earlier. Management will write a letter to be mailed with the proxy ballot, and will obtain Board approval before mailing it. Lynn was also asked to place all stairwell reports on the website so that members can review these from out of state. 
  • Special Assessment for Stairwells: Depending on owner votes returned, the Board will assess the owners either $550 per unit if a majority of the owners vote to use fire reserves for stairwell expenses, or $1100 per unit if reserves are not used. Either way, the payments will be broken into 2 payments; one due on September 1st and the 2nd payment due November 1st.  The meeting to determine the amount of the special assessment will be conducted August 27th. The Board were unanimous in agreement to approve an amount up to $22,000 from roof reserves to replace the clubhouse roof in between Board meetings, once the other bid is received. 
Manager’s Report: Lynn reported that a new owner in the 600 building requested permission to grow vegetables in a section in the RV lot, which would require him to have key to the RV lot. The Board felt at this time, that this request could not be granted, because only those who have a boat or RV has access to this area. 

The Fire Marshal conducted his annual inspection. His report was sent to the Board. He wrote up the Association for many grills being stored under the stairwells. This is against the fire code. Lynn will write to all the owners to remove their grills immediately from under their stairwells. The Fire Marshal also wrote violations for not having 2 exits from the pool, and for having a double-sided locking gate. Either a panic bar must be installed inside the pool fence to exit or a lever locking system must be used. He also stated that there must be 2 working gates exiting from the RV lot. Quotes for these repairs are forthcoming. 

The letter to be sent to the owners will also show that unit A/C electrical shutoff boxes will need to be checked by the owners. The Fire Marshal stated that 3 boxes currently have to be replaced. Lynn is obtaining a bid from our electrician to replace these at this current time. The homeowners will be responsible for repayment of this bill to the association. Management will also post photos of the AC boxes on the website. 

Sprinkler inspection took place today. Overall, the sprinklers appear to be in great shape. However, the technician found a lot of sprinklers that will have to be replaced due to owners’ spray painting their ceilings and allowing paint to get onto the sprinkler heads. Lynn is awaiting a bid for replacing the heads in the units. Owners will be responsible for paying for these replacements.  There were 7 units that we could not get access into and those owners will be charged a $25 fee for the technician to come back and inspect those units at a later time. This is why it is so important that each owner supply the association with a key to their units. There was also a lot of damage to the standpipes that are located outside the buildings. A lot of these will need repairs. Once the proposal is returned to us, we will supply the Board with the details. 

Owner Input: None

Set Next Meeting: The next Board Meeting is scheduled for August 27th for a member’s meeting at 6:00 PM,  followed by the Board’s usual monthly meeting right after. 

There being no further business to discuss, the meeting was adjourned at 8:35 pm by Kathie Heisey. 

Respectfully Submitted, 
Lynn Hiott, CAM #35322 
Reconcilable Differences, Inc.