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Garrett’s Run Condominium Association
Minutes of the Members’ Budget Meeting
Wednesday, October 28, 2015

Call to Order: The meeting was called to order at 6:02 pm in the clubhouse. 

Establish Quorum Of Members: Thirty-seven (37) proxies were needed to establish a quorum of members. Eighty-one owners attended (17 in person and 64 by proxy). A quorum was met.

NOTE: The results of this “straw vote” of the owners will help the Board make their final decision on the 2016 budget. The final decision rests entirely with the Board of Directors. 

Voting Results Of the CPA Audit versus CPA Review for 2015 financials were fifty-three (53) voted to have a CPA review and twelve (12) voted to have a CPA audit of the 2015 financials. 

Voting results to fully fund or partially fund reserves for fiscal year 2016: Sixty-three (63) owners voted to partially fund reserves for fiscal year 2016, and one owner voted to fully fund reserves for fiscal year 2016. 

Voting results to materially alter the Common Elements by changing the tennis court to a “multi-sport game court” that allows different games to be played: Forty (40) owners voted to change the tennis court to a multi court and twenty-five (25) owners voted to leave the tennis court as it is, and just maintain it. 

ADJOURN MEMBERS’ MEETING: There being no further member business, the meeting adjourned at 6:10 pm. 

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Garrett’s Run Condominium Association Minutes of the Board of Directors’ Budget Meeting Wednesday, October 28, 2015 

Call to Order/Establish Quorum of Directors: President Jim Hamilton called the meeting to order at 6:10 pm in the clubhouse at 7900 Greenboro Drive. Board Members present were: President Jim Hamilton, Treasurer Norm Young, Vice President Elvis Malena, Secretary Ken Snella, and Director Alicia Ponegalek. A quorum was established. Lynn Hiott with Reconcilable Differences was present, and there were 17 unit owners present. 

Approval of the Board Meeting Minutes of September 30th Meeting: Elvis requested that his name be spelled correctly and the time of the meeting be changed from noon to 6 pm. With those changes, Elvis motioned to approve the September 30th meeting minutes. Norm seconded and all were in favor. 

Financial Report: Lynn reported that as of September 30th, the operating account at Sunrise Bank has a balance of $57,832. Owners’ prepaid assessments are $12,190 of that, which leaves a total operating bank balance of $45,642. The total in the Sunrise Bank Reserve account is $214,163. Accounts Receivable stand at $53,718. This breaks down to $16,166 in unpaid special assessments, and $37,552 in unpaid unit maintenance fees. Most of these outstanding balances are units in foreclosure. Year-to-date through September 30th, the association is under budget by $145. Norm made the motion to accept the financial report as given, Elvis seconded the motion and it passed by unanimous voice vote. 

Owner Discussion regarding 2016 Budget: An owner questioned why there was a substantial increase in the management fee from 2015 to 2016. Jim replied that last year Lynn was paid for 20 hours of onsite time but gave a lot more with no compensation. This Board felt that Lynn should be onsite 3 days per week to help deal with the vendors, large contract negotiations, tenant approvals and rule oversight. They also wanted to fairly compensate her for all the hours she used to put in for free. In 2016, Lynn will be paid for 30 hours a week. She will be on site Monday, Tuesday and Wednesday. 

Discussion and Ratification of Member Votes - Total of 65 Ballots received: 

1) Voting Results on CPA Audit vs. CPA Review for 2015 Financials- Because 53 owners voted to waive an audit requirement and have a CPA review prepared, and only 12 voted to have the audit, Alicia made the motion to follow what the owners requested and have a CPA review of the 2015 financials completed. Elvis seconded this motion and it passed by unanimous voice vote. 

2) Voting Results to Fully Fund or Partially Fund Reserves for fiscal year 2016: Sixty-four owners voted in favor of partially funding the reserves, and one voted to fully fund the Reserves. After much discussion, Elvis motioned to partially fund the reserves in 2016. Norm seconded, and the motion passed by unanimous voice vote. 

3) Voting Results to materially alter the Common Elements by changing the tennis court to a “multi-sport game court” that allows different games to be played: Forty (40) owners voted to change the tennis court to a multi court and twenty-five (25) owners voted to leave the tennis court as it is and properly maintain it. Elvis motioned to table this issue in order to obtain more votes, which can be done within 90 days of this meeting. The Association must have 75% voting positively for a material alteration in order for it to pass. Should the needed votes not come in by the January meeting, the Board will then have to agree to resurface the tennis court and not make the change. Alicia seconded this motion and all were in favor. This issue will again be discussed and voted on at the January 2016 Meeting. 

4) Voting Results of the straw vote about new equipment in the exercise room: The Board asked owners to vote in favor of having an elliptical machine, an additional treadmill machine, a speed bike machine, or they were given a blank line to write in what they would like to see added. Thirty-five owners voted to add an elliptical machine, five owners voted to add an additional treadmill, three owners voted to have a speed bike, and 21 owners voted “other”, most of them stating they wanted nothing more to be purchased. Because of the large number of responses to add an elliptical machine, this issue will be discussed in more depth at the January meeting. 

Board Vote on Loan/Line of Credit or Special Assessment: Valley National Bank has approved a Line of Credit up to $350,000 to be used for stairwell repairs, building repairs, and/or painting. There are 24 more stairwells to be completed in 2016. Once the contracts are signed with NAC and other vendors, these signed contracts will be sent to the bank, and the bank will pay the invoices when due. If the Board does not choose to use the line of credit, a special assessment of $1,800 per unit will be needed in 2016. Norm made the motion to move forward with the Line of Credit of up to $350K through Valley National Bank, so the owners will not have a special assessment in 2016 and to help keep the monthly fees down. Elvis seconded this motion and all were in favor except Ken who opposed. 

Board Vote on 2016 Budget: Jim explained that the proposed budget for 2016 had choices associated with it regarding a line of credit or special assessment. A majority of the Board felt that the line of credit was the better choice for future capital repairs, so Norm motioned to approve the 2016 Budget with the Line of Credit. Monthly payments to the bank will be taken from operating funds and the monthly fee for 2016 will be $370 per unit. Alicia seconded this motion and all were in favor except Ken who opposed. 

Lynn reminded owners that if they were paying with “automatic debit”, the bank will start the correct monthly deductions in January 2016. For those who have set up “bill pay” through their own bank on their own computer, please remember to change the amounts for 2016. For those who choose to mail a check with a coupon, you need to complete the order form for a coupon book and those coupon books will be delivered by the first week of December. If you do not receive a coupon book by the first week of January, please let management know. 

Any New Business: Unit 603 has requested permission to re-screen his back patio at his costs. The Board has reviewed the paperwork and Alicia made a motion to approve the re-screening of unit 603’s back patio. Norm seconded this motion and it passed by unanimous voice vote. 

Set Next Board Meeting: The next scheduled Board Meeting will be Tuesday, January 19, 2016 at 6:00 pm at the clubhouse at Garrett’s Run. No meetings will be held in November or December due to holidays. 

Adjournment: There being no further business to discuss, the meeting was adjourned at 7:10 pm by Jim Hamilton. Respectfully Submitted, Lynn Hiott, CAM #35322 Reconcilable Differences, Inc.