SL-Minutes of 2006

Minutes of the

SUNRISE LANDING CONDOMINIUM ASSOCIATION, INC.

BOARD Meeting

FRIDAY, December 29, 2006

1. Call to Order

The meeting was called to order at 6:00 p.m. in the office.

2. Establishment of a Quorum of Directors

Board members present: President Donna Zimmerman, VP Beverly Thomas, Secretary Barbara Long, Treasurer Brian Lloyd and Directors Ingrid McKinney and Sharon Skaggs. Eight owners attended: Robert Esser, Janet & George Klug, Doris Propheta, Jim Trusick, Earl McKinney and Walter & Jean Bobka.

3. Approval of Minutes

Barbara read the minutes of the December 3^rd meeting. With one change – showing the Association’s appraised value of $21 million, $837,000, BT motioned to accept the minutes as read. Donna seconded, all in favor.

4. Officer Reports

Brian Lloyd, treasurer, stated that the Special Assessment money from 2005 has already been spent and that line item on the balance sheet needs to be zero’ed out, The money in that account should be placed in the operating account because the work that was approved has been completed and it took even more than the total amount assessed to complete the work. All receipts are in order to prove that more than $155,100 was spent. A bookkeeping error of using operating funds instead of the special assessment account must have transpired. BT motioned to close out the balance sheet account and place that money in operating since the work has been completed and paid for. Barbara Long seconded, all in favor.

The SBA account shows funds of $45,727 available. Brian again stated that this was a bookkeeping error. All the money was spent. The SBA gave a total loan of $438,500 to repair the seawall. Originally it was estimated that 274 ft of seawall needed to be repaired. It turned out to be much more and operating funds were used for that as well. BT motioned to clear that bank account and put the funds in the operating account to be accurate. Brian seconded, all in favor.

The recent 2006 Special Assessment of $500 per unit brought in $117,500. $41,000 of this was used to pay the down payment on one of the new insurance policies and $26K was used to pay for 2005 insurance overruns. It was also used for management costs in 2006, money for a part time maintenance man in 2006 and the reimbursement of $25,379.98 to clear the negative unfunded hurricane account. The balance of $10,322 will be used for pool deck repairs, some handyman costs and a new air conditioner for the office.

Brian stated that the petty cash line on the balance sheet is incorrect. The office has a $1,500 fund which is replenished as needed, based on receipts. Management will change the balance sheet to show this.

Asphalt repair bids were received in early 2006, so management will contact them for current prices. Holes need to be filled and the seal-coating will be done. Moving of cars for the work to be done will be the most difficult challenge.

Pool Deck Repairs: The County has written up both pools for cracks and holes in the decks around the pools. Management stated that Rick is very knowledgeable and may be able to make these repairs and cover with a KoolDeck coating. Rick will be asked if he can do this. If he can’t, bids will be obtained.

Pressure washer: There is a need to have a pressure washer on site for cleaning and removal of mold on walls, sidewalks and pool decks. Rick found an adequately-powered unit at Lowe’s for $250. BT motioned to use up to $500 to purchase a pressure washer for the Association. It will not be available for personal use. Barbara seconded, all in favor.

Because the Association did not have a regular maintenance employee, in the past owners were welcome to hose and scrub their landings and stairs. That is still true. Rick has a lot of work to do and washing down is not the top priority, so if an owner wants to do this, we just ask that you sweep off the standing water. This is a safety issue as well as a breeding ground for mosquitoes.

File cabinets: Sentry turned over 8 boxes of old records to SCPM. Seven years worth of financial records must be kept before destroying. Some Board members felt the need for locking file cabinets. Barbara priced 4-drawer file cabinets at Staples for $160 each. Discussion ensued about fire proof file drawers, which are much more costly, and Janet Klug agreed to check on the availability of used cabinets at a reduced rate.

Maintenance Man: Rick Hatfield does not have a full time job right now, so he is willing to work 20 hours per week at $12/hr as an employee with worker’s comp and taxes reported to the IRS. RDI pays him as an employee and bills the Association for the costs, so he is insured in case he gets hurt on the job. 20 hours of work per week is budgeted for 2007, but there is also a lot of painting work to be done – doors, lightposts, stairways, railings, etc. Painting Reserve money could be used to cover his labor costs and the paint supplies, if the Board approves this. Rick has his own tools to use for sanding and proper prep work before actual painting is started.

Barbara motioned to use him for up to 40 hours per week, with the 20 of regular maintenance coming from operating funds and an additional 20 hours per week from reserves. Rick’s back-up paperwork is very detailed. We will know exactly how many hours are used for painting so he can be paid correctly. Ingrid seconded the motion. Rick told Barbara that he estimates 4 hours per stairway to do the job properly. All in favor.

Landscaping Office Entry: There is a lot of quack grass and weeds at the entrance to the office building. Barbara motioned to use operating funds to spruce it up. Sharon Skaggs seconded. Owners in attendance felt all areas should receive new shrubs where needed. Donna stated that Atlantic Landscaping bid $17K to spruce up the entire property and we don’t have that much money. Donna stated that last years’ Special Assessment earmarked $10K for landscaping and only $3500 of it has been used. BT felt the condemned porches were more important than plants right now. After discussion, it was agreed to place landscaping needs on hold for now. With the new company, US Lawns, starting in January, we can hope they will do some extra work to impress us.

Environmental Testing by EPA: Monitoring Equipment has been installed near the pool by the county and Bill Foster is overseeing the reading of this equipment that monitors the air quality between the two power plants, which is right over Sunrise Landing. He will come to a meeting and speak to the owners about their findings.

Sprinkler Clock:

A new clock is needed and Rick found a Rainbird 18 zone clock for $250 on the internet. Walter said the local companies want over $440 for the same thing. Barbara motioned to approve the cost, with Rick ordering it on line. BT seconded, Walter said currently, many zones on the clock are running 2 valves and this is difficult to maintain. Rick will install the clock when it arrives. The Board gave manager authorization to use a personal credit card to purchase this on line and be reimbursed. Cost will be taken from the sprinkler repair account. All in favor.

Porch Repairs: The county inspector came out last week with the engineer. He inspected a number of porches and found one (a balcony on top and porch on bottom) unsafe and “red-tagged” unit 7430 #204 so the owner cannot go out on her porch right now. The engineer, Byron Evetts, made arrangements with Ulbricht Construction to “shore these up” on Tuesday, with a time and materials price to be given.

The porch that was initially found to be in violation when an owner filed a complaint with the county, is acceptably “shored up” but the county is requiring this repair to be concluded very soon. BT motioned to repair the unsafe and “in violation” porches to completion so that the violation is repaired. She felt a porch committee was needed. Some in attendance felt the engineer did not care about safety when he ripped edge wood off the buildings and left this in the grass with nails sticking up. (The engineer was called about this and stated that all nails were bent over for safety, but the wood needed to be left near the place it was removed from for now.)

Because of this complaint, Donna asked that if owners see something of concern, CALL IMMEDIATELY! We can take care of it before a problem occurs. Don’t wait for a meeting to bring up concerns.

BT asked again about a porch committee. It was stated that the project engineer would not take direction from this committee, but they would oversee it. It was stated that the county does inspect and approve all work when a permit is issued. BT was given approval to find qualified people to start a committee to report to the Board.

Sharon Skaggs motioned to proceed with repairing the four porches in question to correct code now, and to start immediately. It was understood that screen framing may also need to be replaced. Barbara seconded, all in favor.

Annual meeting: Per the governing documents, the meeting should be held on March 21. The church charges $200 to use their room. The library is free but closes at 5:30 and only allows Tuesday or Thursday meetings. We cannot have it at the pool due to inclement weather concerns and the office is too small, since last year there were over one hundred people in attendance. More information will be found and the first notice of meeting will be mailed out before January 21^st.

Adjournment:

There being no further business, the meeting adjourned at 7:55 pm.

Respectfully submitted,

Michelle Dugan

Michelle Dugan, CMCA, AMS, LCAM #17226

Reconcilable Differences, Inc.

SUNRISE LANDING CONDOMINIUM ASSOCIATION

ANNUAL MEETING

March 21, 2007

CALL TO ORDER: The meeting was called to order at the Blessed Sacrament Church at 5135 N. US Hwy 1 in Cocoa at 7:00 p.m. by Donna Zimmerman. Allegiance was pledged.

GUEST SPEAKER: Steve Robertson of SJR Insurance was present to speak to unit owners about Association and Individual Insurance policies and coverage. He informed the owners that the Association’s property insurance is now covered by Citizens Insurance, the state carrier, since no other carriers will currently insure older buildings close to the water. The flood policies renew in August and have a $1,000.00 deductible for rising water damage. These policies should insure for 90-100% of value of Association property. As an example, the flood policies cover $626K of value on an 8-unit building that is valued at $743K. Flood coverage is federal government backed and is the same cost no matter which agent you use. The annual flood insurance cost is currently $41,942.00 and a resident present stated that the buildings are in an AE3 flood zone. As for the property and wind coverage, the initial cost estimate was over $115K and with Donna’s help, wind mitigation credits were received which lowered the cost to $164,355. Since the policy is financed, the credit from Citizen’s was mailed back to the finance company that initially paid the full balance and this in turn lowered the monthly payments we are making on the account by almost $4,000 per month. It was also stated that some personal insurance policies will also give 13% wind mitigation credits due to the hurricane clips used on the roofs. Ask the office for a copy of your building’s mitigation form if needed.

Steve discussed the difference between the Association’s policy and an owner’s policy. The Association is only responsible for the exterior of the building and possibly drywall inside the unit, but nothing else. Finish and paint on the drywall as well as cabinet installations are an owner’s responsibility and as the insurance law reads now, even if the damage is caused from an above unit or a roof blowing off, the damaged unit’s insurance policy pays for repairs unless the responsible party can be proved negligent.

GUEST SPEAKER: Byron Evetts, engineer from Existing Structures was present to discuss the porch and balcony damages needing repair. He stated that the findings were significant and one balcony “set” (top and bottom units) was deemed unsafe and has been repaired. One other has also been repaired, although not deemed unsafe. There were significant findings in 70 units. Handouts were disbursed to those present to discuss costs for repairing only “High Priority” damages, at a cost $288,148 up to “Complete Repairs” which would include repairing all damaged areas and totally re-screening all 236 balcony sets, with a cost of $428,841. The costs were based on five estimates already received from contractors, but he is waiting on one more estimate from a company that residents wanted a price from, so the figures might change slightly. Any new work completed will be done based on the 2004 hurricane codes. All estimates include labor and materials and there are no hidden costs. All bids come with a minimum 10 year warranty. Byron stressed that these balconies were made to “breathe” and should not be permanently covered up. Installing carpet, wood or tile has caused moisture build up in some units and could direct water flow into the units, causing more problems.

Byron stated that is should take about one year to complete the full repair and enclosure installation. They would start at one end of the property and finish one building at a time. Based on estimated extra funds in the operating account right now, voting in favor of “Complete Repairs” would be about $1,500 per unit. If “Complete Repair” is done, any plexiglass or other enclosures would have to be removed and would only be allowed back up if permitted by the county, and at the owner’s expense. The Association could possibly credit the enclosure/screen costs to those who wish to upgrade, but this would be a Board decision.

CERTIFICATION OF PROXIES & ESTABLISHMENT OF A QUORUM OF MEMBERS: The required number of members to hold the Annual Meeting is 119. Alex Durwoody certified that there were 47 proxies and 48 units represented in person, for a total of 95 units represented. This did not constitute a quorum, so this could only be an informational meeting and even last year’s minutes could not be approved.

READING AND APPROVAL OF LAST YEAR’S ANNUAL MEETING MINUTES: Due to a quorum not being present, the reading was waived and not approved.

PRESIDENT’S MESSAGE: Donna expressed appreciation for the Volunteer Support, with special thanks to Walter, Bob, Jim and George. Volunteers have completed landscaping, pool decking and dock work and have saved the Association thousands of dollars.

The seawall replacement and repair is completed, gutter work is completed, and painting of stairways is underway and coming along rapidly.

Termite season is now upon us. Please report any sightings immediately. Without proof of sighting, the termite bond will not be effect and the Association is responsible for repairs.

There is a new lawn service in place as of January and the grounds a re looking better. We will be patching and then sealing the pavement in the next few weeks.

A unit owner gave thanks to the board for their hard work and dedication to the Association.

TREASURER’S REPORT: Outgoing treasurer Brian Lloyd stated that the Association is doing well financially. As of the February 28th financial report, we have $140,000 in the operating account, $146,000 in reserves and $10,600 in damage deposit fees. $9,200 in the reserve account is from a special assessment that has not yet been used for office air conditioner and landscaping work. The parking lot resurfacing and repairs will be covered by Reserves of about $25K. Owners are paying enough now that bills are being paid and we are able to establish some savings. The 2005 Audit was completed last September and the 2006 Audit is currently underway. The porches will be a big expense, with approximately 50% of the cost going to new enclosures. Brian’s recommendation is that all work be completed now and not try to spread it out. The lower insurance costs due to the mitigation credits saved over $30,000 and was all thanks to Donna.

PRESENTATION OF 2007-2008 BOARD MEMBERS: Those who offered to serve are Linda Fisher, Cliff Kott, Barbara Long, Ingrid McKinney, Sharon Skaggs, Beverly Thomas and Donna Zimmerman. Donna stated that Board meetings are held monthly and all are welcome to attend. If you have questions, please let management know ahead of time so answers can be available at the meeting. Brian Lloyd was thanked for his service. He will be missed.

OPEN FORUM: Michelle Dugan of Reconcilable Differences was introduced as the new management company. She was thanked for organizing the financials.

The on site office hours are Monday, Tuesday and Thursday from 10 am to 1 pm. If you have any issues after hours, please call the management office at 321-799-0660.

We have annual fire ant and termite service agreements, so please contact management for re-treatments at no cost.

Patching and re-paving of the parking lots will begin in a few weeks. Letters will be posted so cars can be moved when work in their area is being done.

Donna reminded residents that no trees or large shrubs can be planted without Board approval. Some species will grow out of control in a very short time. Planting of annual flowers is acceptable without permission if they are maintained. If you are not sure about what is acceptable, contact the office or manager.

The pool heater is being turned up too high and causing problems. It cannot go above 85 degrees or the unit freezes up and a service call is required. Someone is reaching through the fence and turning it up, so a locked cover of some kind will be installed. Someone is also getting into the storage room and a new tarp was stolen that will now have to be replaced. All locks have now been changed.

A resident owner thanked all participants in the monthly pool parties. She asked for some kind of stackable chairs to accommodate more people. Donna asked Barbara Long to look into prices and styles of chairs.

Euchre and pinochle games are held at the south pool on Fridays at 1:00 p.m. Beverly Thomas said it is a good way to meet your neighbors and have fun.

The dumpster in front of 7340 has a broken lid. Manager has already called Waste Management twice and will call again for an update on date of change-out.

There was a mugging/robbery at Publix recently. The perpetrator was caught, but residents wanted all to be aware and careful. If you see anything or anyone suspicious on the property, call the police.

There was a company that was recommended by some for window replacements after the hurricanes. That company went out of business and their work was not completed properly. Make sure that any contractor you use is licensed and insured and that they have a permit to do your work. Competitive bids are important.

ADJOURNMENT: Beverly Thomas made a motion to adjourn the meeting at 9:10 p.m.. Ingrid McKinney seconded the motion and all were in favor.

Submitted by:

Tina Lybarger, Reconcilable Differences

Michelle Dugan, CMCA, LCAM #17226

Community Association Manager