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Garrett’s Run Condominium Association 
Minutes of the Members/Board of Directors’ Meeting 
Wednesday, August 27, 2014 

Call to Order/Establish Quorum of Members: President Kathie Heisey call the members meeting to order at 6:05 pm in the clubhouse at 7900 Greenboro Drive. The meeting had been properly noticed and posted.

Establishment of a Quorum of Members for Members Meeting by Certification of Proxies: Lynn reported that six units attended in person and 76 units in attended by proxy, for a total of 83 units represented. Thirty seven (37) units were needed for a quorum (30%) and this was reached. 

Owner Input: None

New Business:  Voting results for Combining Fire Alarm Reserves for stairwell repairs: Lynn reported that there were 76 yes votes and 1 no vote to use $65,000 of the Fire Alarm Reserve funds to offset the stairwell repairs completed by NAC. The association needed 30% of owners (37) to vote positively for this use of the reserves, and it passed.

There being no further business to discuss, the meeting was adjourned at 6:07 pm by Kathie Heisey. 


Call to Order/Establish Quorum of Directors: President Kathie Heisey called the Board meeting to order at 6:08 pm in the clubhouse at 7900 Greenboro Drive. Board Members present: President Kathie Heisey and Treasurer Hattie Martin. In attendance by speakerphone: Vice President Peter Engel, Treasurer Asst. Al Fassler, Directors David Tarantelli and Traci Niederriter, and Michelle Davis with Reconcilable Differences.  Secretary Angelo Laviano was absent. A quorum was established.  Lynn Hiott with Reconcilable Differences was present. Unit owners in attendance were: Susan Smiley, Terri Vazquez, Rita Valentino, Judy Schneider, and William Masse. Guest attending: Harry Gunthral.

Approval of the Board Meeting Minutes of April 23rd and July 23rd, 2014: David made the motion to approve the April 23rd and July 23rd minutes as written and sent out to all Board members, Al seconded, and all were in favor. Traci requested the minutes from the phone conference of July 9th. While that was just a discussion about finances with no motions made, Lynn stated that she would write those up for approval at the next Board meeting. 

Financial Report: 
Al Fassler reported that as of July 31st, the operating account at Sunrise Bank showed a balance of $52,081. This included $14,935 in prepaid owner assessments, so there is actually less than $37,000 in the operating account.  Sunrise Bank reserve balance is $47,740.38 and FBC (Florida Bank of Commerce) reserve balance is $125,500.09 for a total reserve fund of $174,240.47. Accounts Receivables is at $85,854 with $900 still owing on the special assessment from 2013, by units in foreclosure that have not paid.  We have $54,683 already expensed for bad debts as the accountant recommended last year.  Traci made the motion to accept the financial report as stated.

Collections: Lynn reported that unit 918 still has an outstanding balance due of $2,398.15 for water damages and this case continues to be forced through the courts for full payment to the association. Unit 105 is in bank foreclosure, but the homeowner has already vacated the property. Interesting information has been found on this unit: The 1st mortgage on this property was for $140K. The attorney just informed us that a 2nd mortgage of approximately $42K was taken out last month. The attorney said that past experience has proven that the 2nd mortgage company will usually pay the association everything that they are owed to protect their rights so that their 2nd mortgage won’t get wiped out. Unit 104 is continuing with an association foreclosure and to date the unit owes approximately $4,900. Unit 306 is continuing with an association foreclosure as well, and this unit owes approximately $12,000 to date. Unit 808 has been going back and forth with AFS (collection agency) to get a payoff. They currently owe approximately $17,000 but will most likely fall under the Safe Harbor act and will only be responsible or 1% of the original mortgage. Since they took title on November 21, 2013, they are responsible for 100% of the monthly association dues, late fees, interest, and special assessments, though. Unit 902 was foreclosed on by the association and has been rented out. This unit owed approximately $23,000 when the Association foreclosed. The association has been successful in renting it out and has brought in approximately $12,000 to apply towards current debts on that unit. Without this rental income, the balance owed would be approximately $35,000 and would have had to be written off when the bank finally foreclosed. Unit 207 was received by the Association with a deed in lieu of foreclosure by the owner. Now the Bank has scheduled their sale date and should take title in October of this year. This unit owes approximately $1,700, and has collected $6,400 in rents since the Association took it over. Again, without the rental income, this unit would be owing the association approximately $8,000. Unit 510 was foreclosed on by the association, but the mortgage company took title on August 7, 2014. They are now responsible for 1% of the original mortgage and monthly assessments from that date forward. This unit owes approximately $19,000 to date. Unit 906 now belongs to the bank who took title in July of this year. This unit now only owes the association approximately $2,100 because of the rents collected since February 2012. Without rents to offset the balance, that unit would have a balance of $17,500 to write off to bad debts. Unit 308 has been moving forward with a mortgage foreclosure, however our attorney is demanding rents for this unit as there is a tenant in the unit. If rents are not paid to the association immediately, then the association will void the tenants’ amenity rights and will proceed with association foreclosure and evict the tenant from the unit. The Board requested that Brighthouse be contacted to either cut off cable services to that unit or send the Association written reasons why they cannot do that for non-paying units that the Association pays for. Lynn will contact BHN for this information. The Board also requested a “closed meeting” with their legal counsel, Frank Ruggieri, to discuss ongoing collection accounts and matters on September 24th at 4 pm in the office. 

Unfinished Business:

  • Stairwell Repairs update: The stairwells that were approved to be repaired are completed. The final billing by contractor NAC came to $239,470. The engineer’s oversight costs were $23,400, and the electrician’s costs with all the new lights was $10,701, for a final cost of $273,571 to repair/replace 22 of 49 stairwells. The association set aside $113,100 for the initial phase. The Board must now decide how to cover the balance of $160,471 that was needed to ensure that structurally unsafe stairs were repaired. This was the reason the Board asked for a vote from the members to use the reserve fund called “fire upgrades”. While this reserve 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. The additional needed funds come from the stairwell reserve account and painting reserve. The details of the accounting will be listed in the special assessment letter that will be sent to all homeowners. 
  • Clubhouse Roof Update: Lynn reported that she was able to get another 3 bids from various roofing contractors per the Board request. The bids are as follows: Total Home Roofing proposal was $21,975, Willis Roofing was $25,000, and All Brevard Roofing was $27,000. The Board requested a meeting to be held with Kevin Argo from Total Roofing on September 3rd so that he could answer more questions the Board has regarding the roof replacement of the clubhouse. Lynn will make these arrangements. Peter did make the motion after discussion with Total Home Roofing, that a contract would be approved in-between Board meetings to allow the work to be completed ASAP. Traci seconded that motion, and all were in favor. The contract will be ratified at the next Board meeting. The money for this roof project will come from the roof reserves account. 
  • Landscape Committee Report: No report was made to the Board at this time.
  • Combine Reserves for stairwells-owner vote: The members overwhelmingly agreed to use the $65,000 in the fire alarm reserve account to help offset the costs for the stairwell work. There were 76 positive votes to one negative vote.
  • Special Assessment for Stairwells: As mailed to all owners, the Board must assess $550 per unit to cover the balance of the costs. This payment can be broken into 2 payments; one due on September 15th and the 2nd payment due November 1st, but all will be asked to pay in full as soon as possible. Lynn will post a notice on the bulletin board with the details tonight, but this assessment invoice must be mailed to all unit owners per FL Statute. Sunrise Bank has agreed to do a one-time ACH withdrawal for owners that are currently using ACH. The owners will have to send a signed form back giving permission for the bank to withdraw a onetime amount of $885 from their account on October 4th for October and the full special assessment. If owners elect to send in their payments, then the first payment will be due September 15th and the second payment will be due November 1st. As of November 15th, those who have not paid their special assessment in full will be charged late fees in the amount of $25 per month that they are late in paying, unless other arrangements are made with Lynn in writing. Al made the motion to assess the owners as noted above. Traci seconded, all in favor.
The accounting details for the completed stairwell repairs are as follows: 
  • $24,000 from the 2013 Special Assessment for the initial repair and gutters
  • $10,020 used in the 2013 Stairwell Budget
  • $7,774 from the 2014 Stairwell Budget
  • $39,996 from the 2014 Stairwell Reserves
  • $65,000 from the 2014 Fire Alarm Reserves (owner voted)
  • $26,680 from the 2014 Painting Reserves
  • $66,000 from this 2014 Special Assessment at $550 per unit
    Total Cost: $239,470
    Total Cost from Operating/Reserve Funds: $173,470
  • Fire Marshal-Sprinklers, stand pipes, repairs and emergency lights: Lynn reported that we are awaiting four more bids to get the stand pipes repaired and the needed sprinkler heads replaced. Bonner Electric has replaced 20 of the emergency lights on the stairwells with NIC/CAD capacitor emergency lights which are now LED and last longer. The old emergency lights were not only installed in unsafe locations on the stairwells, the batteries didn’t last more than a year or so. With the new lights, we were able to move them so that they could be safely worked on or changed when needed, and the bulbs/batteries will last a lot longer. BJ will order the remaining required 29 emergency light fixtures and install them within the next month or so. 
  • Tennis Court Resurfacing: Peter asked for this to be tabled so that when he is here on site, he can do more research and meet with the companies to find out more information about what they are offering to do. The Board all agreed to table this topic. 
  • Budget Committee: Al reported that Hattie would not be serving on this committee this year, so asked all owners for volunteers to work with him on this committee. Volunteers are needed so that everyone can have input on capital projects and how much the monthly assessments will rise. There were no volunteers from the audience, but director Traci N asked if she could be included on the committee and she was accepted. Lynn will post a notice for volunteers on the bulletin board. Lynn and Michelle sent Al and Traci a draft budget to begin analyzing.
Manager’s Report: Lynn reported that Vance had to go and get a tetanus shot and the cost of this shot was for $50. He is asking for reimbursement from the association due to all of the areas he is exposed to in his job description. Kathie made the motion to approve to reimburse Vance for the cost of the shot, Al seconded, and all were in favor. Lynn mailed Al a “Contracts and Bids” book purchased from CAI. He felt that all the Board members needed to have a copy for future reference. He found it to be very educational and motioned for the Association to purchase 5 additional copies to send to the Board members. Peter seconded the motion, all were in favor. Lynn will get those ordered and sent to the Board members soon. 

Owner Input: None

Set Next Meeting: The next Board Meeting is scheduled for September 24th at 7:00 pm. The Board will have a “closed Meeting” with their legal counsel at 4:00 pm in the office to discuss current litigation matters. 

There being no further business to discuss, the meeting was adjourned at 8:05 pm by Kathie Heisey. 

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