Minutes of the Board of Directors’ Meeting
Wednesday, September 28, 2016
Call to Order/Establish Quorum of Directors: President Jim Hamilton called the meeting to order at 6:00 pm in the clubhouse at 7900 Greenboro Drive. Board present were: President, Jim Hamilton, Vice President Kathleen Fassler, Secretary/Asst. Treasurer Mary Orr, and Director Stan Arthur. Attending by phone conference: Treasurer: Rosemary Gleason. Lynn Hiott with Reconcilable Differences was also present. Owners: Pat & Peter Cassese, Maria Kirkpatrick, Rita Valentino, Peter & Pat Engel, and Lynne Arthur were in attendance. Tenants Lenora White and Steve and Theresa Borrelli were also in attendance.
Approval of the Board Meeting Minutes of August 17th: Kathleen made a motion to approve the above said minutes as written, Stan seconded, and all were in favor.
Financial Report: Lynn reported as of August 31, 2016, the operating account at Sunrise Bank showed a balance of $87,904, but of that amount $15,170 was from prepaid assessments, leaving a balance of $72,734. There is $181,707 in the Reserve Accounts for future repairs. Accounts Receivable are at $6,794. The current profit and loss statement shows the association under budget by $10,945.
Update on National Valley Loan Account: Lynn reported that the first amount that was borrowed was for the cosmetic bands of the 500, 600 and 800 buildings. That amount was $60,000. Then NAC asked for two payments of $95,000 and $67,000. Then a payment was made for the cosmetic band repairs to buildings 100, 200, and 300 in the amount of $48,000. To date, a total of $270,000 has been borrowed from National Valley. The association is still under a draw with interest payments only until November 1. Management mailed a $25,000 check to be paid towards the principal amount, which has been what was saved over the last 7 months of this year. Once NAC is paid for the final bill in October, the association will have borrowed the full amount of $350,000 on the loan, but with the principal payment, the payback starts December 1st on $325,000.
Lynn stated that the Board approved painting the last three buildings, but this was to be paid from the Valley National account, and there is not enough in this account to cover the painting. Lynn recommended that reserve money be used for the final painting cost as follows: $50,000 from stairwell reserve account (since we are painting the wood that was just replaced on the stairwells), $10,000 from the paint reserve (because that is all that is left), and $10,000 from miscellaneous deferred maintenance reserves. Stan made the motion to approve the transfers as stated above, Mary seconded, and all were in favor.
Collections: Lynn reported that collections are at an all-time LOW, finally! Several units were turned over to Alliance, a collection agency for unpaid accounts, and several of those accounts were paid in full with their help. There is only ONE unit that is in active foreclosure and it is understood that the reverse mortgage took title to this unit in January of this year, and the association should get everything that is owed once this unit sells.
Kathleen reported that information was obtained to show that unit 608 which was deeded to the association in 2014 shows no first mortgage owed, so since the association owns it, she would like to consider selling this unit. Association attorney Ruggieri confirmed that the mortgage company walked away from its original mortgage and the association has the legal right to sell this unit at fair market price.
Kathleen stated that she had contacted several realtors, but she is heading back up north. Jim felt that management should have a decision in this, since she has worked with many through the years and knows who follow the Garrett’s Run guidelines. Lynn will contact the realtor who has been most active in the community and see what the realtor costs would be. The Board agreed that the money will cover all debts on the account, and any surplus will be discussed at a later time and determined where it would be best applied.
Stairwell Repair update with Loan information: That was discussed earlier in the financial report.
Building 200, 100, 300 Cosmetic Bands update: Mike’s Masonry has completed repairs on 100 and 200 buildings. He will start the 300 building by the end of October.
Budget Committee: Lynn stated that the committee met on several occasions and worked with management regarding 2017 fees. The committee recommends increasing the monthly HOA fees by $10 to partially fund the reserves. This would take the monthly fee from $370 per month to $380 per month. The increase is needed so that the original 19 stairwells that were repaired 3 years ago can be replaced and esthetically match the other 30 stairwells. The stairwells are not safety issues, so this is for esthetics and code compliance. The quote we were given from NAC was $130,000 to replace the original 19 stairwells. Management reported that if the owners send back their proxies and vote to partially fund the reserves, then the fee would increase to $380. If the owners failed to return enough proxies, the Board would have no other choice but to fully fund the reserves and the monthly fee would be $547. The entire Board expressed to all owners to return their proxies and to vote for the partially funded reserves. Management gave the Board members the Proposed budget packet to review so that management could get it mailed out.
Social Committee: Theresa Borrelli reported that the social committee had a successful “Chili Cook-off” with 22 residents attending. There were 5 entries into the cook off and Norm and Mike tied for first place. The “pancake breakfast” was also a success as well. About 22 residents attended and everyone enjoyed themselves and had a great time. Theresa stated that they are looking forward to the upcoming social events and that the next event would be a “Halloween Party” for the little ones in the clubhouse. She asked for candy donations and for those attending to bring a dish to share. More information would be posted along with the signup sheet inside the clubhouse.
Ratify Additional Camera expenses: Jim reported that since getting better quality items in the clubhouse, additional cameras are needed around the property to protect the assets of the association. Innovative Surveillance came out and installed an additional 5 cameras, two inside the clubhouse, one outside the back of the clubhouse, one inside the office door, and lastly one facing the front of the clubhouse. The older cameras were still able to be utilized, however the DVR system had to be upgraded to handle the additional cameras. They installed the DVR system to handle 16 cameras (but we only have 9) and the additional 5 cameras for $1,700. Mary made a motion to ratify these camera costs, Stan seconded the motion and all approved.
Approval to Mail Out Proposed 2017 Budget to Owners: Management stated that the proposed budget was ready to be mailed to the owners. Lynn stated that just for the association to run their day-to-day business, the owners are paying $338 per month, per unit. In order to keep the fees low, the Board is recommending a partially funded reserves, which each unit owner paying $48 per month towards the reserves for future repairs. The owners will be asked to vote on three items: Owners can vote to waive the annual requirement of an audit with a review (saving about $2000), vote to partially fund reserves ($380) or fully fund reserves ($547), and lastly if the owners want to receive all communication via email versus hard copies, saving the association money on copies and postage. We must have 30% of the proxies returned before the Budget meeting, which will be held November 2nd at 6:00 pm. There also is a page asking the owners if they would like us to order them a coupon book for 2017. If you currently use Automatic Debit (ACH), bill pay, or if you pay your monthly amount yearly, there is no need to order a coupon book. Only order a coupon book if you mail your paper check each month to the bank, because for each coupon book ordered, the Association is charged $6 per unit. We highly recommend either setting up for ACH or Bill pay, because these cost the association nothing. Rosemary made a motion to approve the 2017 Proposed Budget mailing to the owners as presented, Kathleen seconded, and all were in favor. Management will get these mailed within the next week.
Manager’s Report: None.
Owner Input: Several owners stated that there were complaints about all the work NAC has been doing on the stairwells and they have concerns. Lynn stated that a final walk thru has not yet been scheduled with NAC, so if they have concerns, please get them, in writing, to the office soon, so they can be addressed. Most of the concerns heard tonight were regarding the cracks in the wood or why they were splintering. An owner suggested that if the contractor used the correct grade of wood, then there should not be cracking or splintering occurring. Jim will attend the final walk around and the punch list concerns will be addressed with the engineer and contractor.
An owner complained about
the landscapers starting too early in the mornings, and asked that they
be reminded that they cannot start before 8 am. There were also complaints
about them blowing mud on to the back of the porches and the stairwells.
Set Next Board Meeting: It was agreed that Wednesday, November 2nd at 6 pm will be the next Board meeting in the clubhouse to approve the 2017 Budget.
Adjournment: There being no further business to discuss, the meeting was adjourned at 6:55 pm by Jim Hamilton.