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Garrett’s Run Condominium Association 
Minutes of the Board of Directors’ Meeting 
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.


  • 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.
All three items need a majority of owners to positively vote in favor, or the Board recommendations cannot go into effect.

Questions raised by Board member Traci N:

  • 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 review.
  • 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 budgeted. 
  • 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. 
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 votes promptly. 

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