Minutes of the Board of Directors’
Wednesday, October 29, 2014
Call to Order/Establish
Quorum of Directors: President Kathie Heisey called the meeting to
order at 7:05 pm in the clubhouse at 7900 Greenboro Drive. Board Members
present were: President Kathie Heisey, and Asst. Treasurer Hattie Martin.
Attending by speaker phone were: Vice President Peter Engel, Treasurer
Al Fassler, Secretary Angelo Laviano and Directors David Tarantelli and
Traci Niederriter. Michelle Davis with Reconcilable Differences attended
a short time later by speaker phone. Lynn Hiott with Reconcilable Differences
was in attendance. A quorum was established. Unit owners in attendance
were: Judy Schneider, Teri Vazquez, Rita Valentino, Cathy Griffith, Janet
Hord, and Douglas Davidson. Guest attending: Harry Gunthral.
All three items need a majority
of owners to positively vote in favor, or the Board recommendations cannot
go into effect.
Proposed Budget 2015 approval
to mail out to owners: Kathie reported that the proposed budget for
2015 is to be mailed out to the owners, and then the Board will meet on
November 19th to approve the 2015 budget after homeowners are allowed to
attend the meeting and ask questions before final approval.
The homeowners will vote on
3 items: They will vote to “fully fund the reserves at a rate of $773 per
month” or to “partially fund the reserves” at a monthly rate of $360 (a
$25 per month increase) but also includes a supplemental $800, payable
over 4 quarters so that the monthly rate does not have to increase more
than the $25.
The second item the homeowners
will vote on is to complete a Review of the 2014 financials at a cost of
$1800 or complete an audit at a cost of $3800. Allowing less than an audit
requires a majority of owners voting for to do this. The statues were amended
in 2008 to provide that associations may not waive the statutory financial
reporting requirements for their association for more than three consecutive
years, but during the fourth year the audit must be conducted. The
board of directors has the discretion to require an audit, or a higher
level of reporting than required by the Florida Statutes, without a vote
of the membership.
The third item is a straw poll
vote to determine if the Board should look further into changing the tennis
court into a multi-court option or leaving the tennis court amenity as
is and just doing the required maintenance on it.
Questions raised by Board
member Traci N:
With no more questions or concerns
from the Board regarding the proposed 2015 budget, Al made the motion to
approve mailing it to the owners with the minor suggested changes in wording.
The packet will include a proxy ballot for owners to vote on the three
items listed above. The meeting to approve the 2015 budget will be held
on November 19th after owner questions and comments. Peter seconded this
motion, all were in favor except Traci who opposed. Kathie reported that
the "2015 Proposed Budget” passed and would be mailed out by management
by the end of the week. She reminded owners to not delay and return their
She questioned what the factor
number was in establishing the “bad debt” amount in 2015. Management estimates
that 3 of the units in foreclosure will not be settled by the end of 2014.
Therefore, an estimate of $13,140 (3 units x $365 per month for the year)
is budgeted as “bad debts” in 2015.
Accounting line item: Ms. Niederriter
felt there was some confusion about what the budgeted money pays for. Hattie
confirmed that the budget in 2014 paid for a review of the 2013 financials
and the money budgeted in 2015 will cover the cost for the CPA to inspect
the records for 2014. The owner vote will decide whether a review ($1800)
or audit ($3800) is done, so the budgeted $3,000 is in the middle of the
costs bid. The owners can waive the audit up to 3 consecutive years before
the audit is mandatory. There was an audit in 2012 for the 2011 year end
financials. For the year end of 2012 and 2013 the owners elected for financial
Line item Building Repairs &
Subcontractors (6100): The budgeted amount is $25,740. Traci requested
that this money be committed to a special project like “Fascia Boards”.
Lynn stated that it was not committed money as this was a catch all line
for unexpected repairs. If a large capital project like “Fascia Boards”
needs to occur, then it would be funded by its own line in the reserves.
Anything over $10,000 should be funded in the reserves. Management had
suggested funding the “fascia board” project in the reserves at $130K,
but the Finance Committee chose not fund this line item in the 2015 budget,
because there is still uncertainty in how the repairs need to be handled.
Al stated that this issue needs an Architectural Engineer (AE) and a full
report before any funding should be considered. This will be researched
in 2015 and expected funding to occur in the 2016 budget.
Materials and Supplies: Traci
was concerned that the original budgeted $7200 had been dropped to $5616.
Lynn explained that due to the recommendation of funding the pool/amenities
reserve line at an additional $3000, this line was used to balance the
expenses so that the monthly fee would not go higher than the desired $360.
Fire Inspection Repair line
item: Some were concerned about funding properly: Lynn reported that the
contract signed with All Brevard for quarterly, semi-annual and annual
inspection of the fire equipment was $2750 per year. The repairs that will
occur in 2014 will use “deferred maintenance reserves”. The Fire extinguishers
are inspected yearly. Garrett’s Run has a total of 106 extinguishers and
every 6 years these extinguishers will need to be recharged at a cost of
$30 each. If they are only inspected and certified, then those costs are
$3 each. In 2013 and 2014, most of the extinguishers needed to be recharged
or replaced, which increased costs for those years. For the next 4 years,
only a few of them will need to be recharged, so this line is not under
Stairwell repair costs for 2015
were estimated from previous work done. The treasurer is recommending committing
$100K in 2015 for more stairwell repairs. We were able to repair/replace
23 stairwells in 2014, and hope that in 2015 we can repair another 10 or
so stairwells. The ones that were heavily damaged were repaired. The remaining
repairs should not be as costly as the first ones were. The $88,008 amount
is in preparation of 10 units not paying the special assessment. There
is a possibility that a few of those will pay and more money will be brought
in, but this is an unknown that we have to be prepared for.
Maintenance Man line item: Funding
is the same as the prior year, because he did not get a raise in 2014,
but should get it in 2015.
Pool repairs: Traci’s concern
was it was only being funded at $1,212 and we have needed repairs. It was
explained that this line item does not cover the monthly pool maintenance
contract, only repairs. The increase is due to expecting to buy a replacement
pump in 2015. This amount is an estimate.
Aquatic Management: Southern
Weed Management is the contractor responsible for our pond maintenance
and chemicals. They have not increased their fees in 4 years, but a slight
increase was put into the budget in anticipation of a slight increase.
The irrigation contract line
item is by itself. No repairs goes into this line item. Automatic Rain
of Brevard is the irrigation contractor and they are not expected to increase
their fee in 2015. It was confirmed that irrigation and pond repairs are
in the same line item.
Tree Trimming and removal: There
was a concern about why there was an increase in this line item. Hattie
stated that in 2012, we had all the trees trimmed at a cost of approximately
$10,000, and so in 2013 and 2014 there were minor trees trimmed, but mostly
there were trees removed due to damages that they were doing to the buildings
or to drainage. In 2015, the Board feels that more of the tree trimming
needs to occur, but they plan to be selective so that another $10,000 is
not needed. The landscaper is responsible for trimming trees up to 12 feet
in height, but when it is more than that, a special company is needed with
special equipment to trim the trees.
Lawn Fertilization: This is
included in the landscaper fee, however the fertilization company only
fertilizes six times a year. Instead of charging us bi-monthly, they bill
us equally each month.
Phone/Internet: Traci questioned
if manager cell phone is paid by Garrett’s Run. This is simply not true.
The maintenance man has a cell phone paid by Garrett’s Run and this line
also covers the phone line for the fire alarms, dedicated fax line, office
line, and internet. Manager cell phone is not included.
Reserves for walls & stucco:
Traci felt that fascia board’s description is misleading in the topic line,
so she requested it be re-named “horizontal fascia boards”. This change
was made. It was noted that in the partially funded column, this line is
not funded, only in the fully funded line.
Roof reserves: The concern was
that the 200 building is the only building left that needs a replacement
roof. Al stated that the roof is 12 years old and still has another 1-3
years of life and is not an “emergency replacement”. Most roofs have a
life of 15-17 years. The 200 building ridge vents were leaking, so management
had Total Home Roofing repair this ridge vent to extend the life. The goal
is to replace this roof in late 2015.
Owner Input: None.
Set Next Meeting:
The next Owner/Board Meeting is scheduled for November 19th at 6:30
PM to adopt the 2015 Budget.
There being no further business
to discuss, the meeting was adjourned at 8:40 pm by Kathie Heisey.
Lynn Hiott, CAM #35322