Call to Order/Establish Quorum of Directors: President Chuck Zimmerman called the meeting to order at 6:00 pm in the onsite office at 7350 N. Cocoa Blvd, Unit #105, and Vice President Sally Mifflin attended by speakerphone. Other Board Members present were: Treasurer Barbara Long, Secretary Kay Briley, Director Glen Michaels and Beverly Thomas, and RDI manager Lynn Hiott.   A quorum was established. Unit owners in attendance: Rick and Nancy Wilkinson, John Crowell, Ward and Anna Garee, Dave and Gloria Simpson, Paul Neuroh, Pat Schwent, Doris Propheta, Bob Esser, Gerry Cantin, Sharon Skaggs, Jack Landgrover, Donna Zimmerman, Patricia Zimmerman, Vicki Pape, and Rebecca Cardoza.

 Approval of the Member and Board Meeting Minutes of October 27, 2011: Barbara made some corrections to these minutes: Under Financials, she noted that she received a draft version and had not received updated figures yet. The numbers were changed to show the following: In the operating account there is $102,000 exactly. In the Reserve accounts is a total of $382,286. Prepaid assessments have $28,985 and past due accounts are at $60,422.55, which went down $2,270 from August, in part due to receiving a payoff of $8,000 from the bank on one unit, and that another unit is now rented and bringing in  monthly rent. Kay noted that the minutes don’t get changed; they just get updated in the following minutes. Kay reported that she looked up Robert’s Rules of Order on nominations and it stated that it does not require a second, just a motion of action. Kay made the motion to approve the minutes of October 27th with the changes noted above. Beverly seconded the motion and all Board members were in favor.

Financial/Legal Report:
Barbara Long reported that the master association is over budget by $4,059, subdivision SL1 is over budget by $7,836 due to water damaged units, a hot water tank exploding, and legal fees of $1,600. SL2 is over budget by $1,038 with legal fees of $4,193 to date, and SL3 is over budget by $1,487 due to legal fees. One unit in 7330 was able to be rented by the Association and we have received the rent payment for the second month. On December 14th another foreclosure sale is scheduled. The association evicted one resident who had not paid in over a year, after receiving title to the property. 7400-204 is now rented, as of today. Barbara went to the sale of 7180 and the association received title to this one and is getting it ready to rent. There are no new foreclosures, so things look better. Barbara explained that even though the association gets title to the property, the banks will still, eventually, foreclose on the association, but when this happens, they will honor the leases. An owner requested that the office have a foreclosure list available. The Association cannot help a private owner in this endeavor, so they must contact a licensed realtor.

Committee Reports:
Landscaping: There are no volunteers to chair this committee.

Asphalt: There are no volunteers to chair this committee.

Seawall: Patricia Schwent volunteered to chair this committee.

Newsletter: Kay will continue to chair this committee.

Managers Report: Lynn reported:

• Kendall Towing: This is a free service to drive thru the parking lot twice a month to look for vehicles without proper tags/decals. Lynn asked the board if they would consider having a tow company do this at no cost to the Association.  Beverly announced that her step-grandson is the owner and she could not vote on this. Chuck suggested that Lynn write up a proposal showing the positives and negatives of such a service, and present it at the next meeting. It was suggested that if this was to occur, the Association must make sure the owners are told about this service in the next newsletter.
• Fire Marshal Annual Inspection: Overall, the property had no big issues. She did write the association up for electrical panels not being marked with owners’ unit numbers.  Lynn spoke to Robbie about this and he will be marking them. There were no “RF” signs at the pools, so Lynn has ordered these and Robbie will install them. The fire hydrants did not have enough clearance and needed vegetation to be cleared out. Lynn also spoke with the fire marshal about propane tanks on porches. She said that if management sends a letter to remove the tanks and the resident ignores the request, the marshal can be called to fine the owner/tenant for not removing the propane tank.
• Lynn recognized all the volunteers who assisted Kay with calling owners about getting their proxies in for the budget meeting with a certificate of appreciation. Those recognized were: Brenda Landgrover, Sharon Skaggs, Rita McGee, Donna Zimmerman, Kay Briley, and Patty Quandt.

Old Business:
Solar lights and yard art: Kay motioned for this item to be tabled until the next meeting. Management is waiting on a written reply from Paul Wean about what can be allowed in the common area gardens. Glen seconded the motion, and all Board members were in favor of tabling this issue.  Chuck stated that a few years ago, he remembered the board agreeing that the owners could have a personal garden in the back of their units, but the front of the units had to remain uniformed. This will be discussed at the next meeting. An owner asked about items in the stairwells, and since this is a fire code violation management will look for violators and send letters out to these owners.
Dry Sauna Removal: Lynn reported that she is still waiting for the legal amendment ballot from Paul Wean’s office. This will be tabled until the next meeting.
Roof Issues: Barbara reported that there are several roofs that are missing shingles and need soffit repairs. However, Robbie needs a 42 foot ladder and cannot seem to find one. Therefore, these repairs need to be completed by a licensed and insured company. Lynn will obtain contractor proposals.

Budget for 2012: The budget was adopted at the last meeting, with all 3 subdivisions having a monthly assessment of $297 effective January 1, 2012. A discussion ensued over amending the budget if a significant amount of money could be saved with the lawn contractor. Lynn read the attorney’s opinion from the prior meeting minutes.

New Business:
Appoint three new board members: David Simpson and Patricia Schwent nominated themselves for the open positions. Kay made the motion to accept their nominations and appoint David and Patricia as directors for the balance of the term year. All other Board members were in favor. Both owners signed their Candidate Certificates. . Chuck said they were now allowed to vote on the rest of the agenda items.

Rental of 7180-102 and 7400-204: Barbara reported that there was a severe mold problem in unit 7180-102, when the air conditioner leaked inside the unit. She contacted Paul Wean, who informed her that the Association must start mold remediation right away. She contacted Conrad from United Carpets for that work. The a/c unit also needed repairs. Barbara made the motion to ratify the expenses of $2,005. Sally seconded the motion and all approved. Barbara also stated that the Brevard County Sheriff’s office was contacted to possibly file charges for vandalism, but it was determined that this was not the case. The Board agreed that a fair rent in this foreclosed unit would be $600 per month with a $600 security deposit. Barbara reported that she did not have all the combined expenses for 7400-204 yet, and would ratify those amounts at the next board meeting, but it is ready to rent and the association has tenants who have already completed their interview. They will move in December 1st.

Clean out and rental of 7360-106: Barbara reported that an eviction was served on the resident in this unit and he left last week. Upon inspection, the unit was full of personal belongings and the unit itself needed a lot of work to be done. Chuck asked management to get bids for cleaning out the unit and getting it presentable to possibly rent. Barbara did state that she contacted the SPCA and they will come out free of charge to remove bigger items that need to be donated, with a week’s notice. An owner asked if the association had insurance on these rental units and Lynn reported that all the rental units have liability insurance. As of today, 7360 and 7180 had left the electricity on, so the association won’t start service unless needed later.  The association did turn on the power at 7400-204 to verify that the A/C worked and to upgrade the unit. This account will be cancelled when a tenant moves in.

Approval for Engineer for Seawall, Asphalt, and Drainage Issues: Barbara reported that Byron Evetts was the engineer who approved the seawall plans the last time and she contacted him to come back out to the site and look at the new damages. She reported that Byron stated the drainage, asphalt and seawall issues are all inter-related and outside his scope of expertise, and he recommended a civil engineer like Allen Engineering to write up the specifications to fix these problems. Chuck stated that there has not been any luck in contacting Mike Allen and that money needed to be approved for his time and efforts to come out and write the specs and oversee the repairs. An owner asked why the association was not going into litigation on the previous contactor who repaired the seawall. Chuck stated that this issue was looked into last year and the attorney said that the amount of money it would take for litigation would outweigh the price to do the repairs. Chuck asked management to contact different engineers to get estimates on what it would cost to oversee the seawall, asphalt, and drainage repairs. Chuck stated that he went and looked at Sunrise Village’s seawall repairs, and noticed that they are using a concrete cap. He stated that the membrane has to be removed from the seawall due to the wall being vinyl and needs to allow weepage.  Chuck really thinks that various options should be considered before making another repair to the seawall. An engineer needs to oversee these repairs, and the Board needs all information before making a decision.

Asphalt: Chuck reported that he and Barbara  met with William Yates, who supplied a cost of $1,600 to  fill the potholes, pack them down, and  patch the most damaged asphalt areas, He even offered a 2-year guarantee that if any of the asphalt comes up or breaks, he will come back out and repair free of charge. He is expecting to use 8 tons of asphalt to fill in the pot holes. Robbie will be working with him. Other board members were in agreement to accept this bid, but highly suggested getting his warranty in writing. Sally motioned to accept his bid of $1,600 and to start this immediately. Glen seconded the motion and it passed unanimously.

Drainage: Barbara reported that St. John’s Water Management will allow 6 inch drains to be put in without a permit needed. However, if 12 inch drains are considered, they will only allow these to be permitted if an Engineer oversees the project. BT motioned to contract with an engineer to write the specifications for the 12 inch drains to help ease the water pressure on the seawall, with the engineer’s report not to exceed $6,000, and the funds to be taken out of the miscellaneous building component reserve account. Barbara seconded the motion and it passed unanimously. An owner highly suggested that three bids be obtained, at a minimum, and that the drains need to be installed before the seawall is repaired.

Special Assessments: Lynn reported that the estimates for the seawall repair are $40,000, with engineering costs of approximately $3,000. Sod and fill dirt estimates are $11,500 from TC Lawns, irrigation repairs are estimated at $2,000, and dock repairs are estimated at $2,000 for materials, with volunteers being utilized to do the actual work. This comes to approximately $59,000 being needed. This would break down to approximately $300 per unit as a special assessment.  The board suggested tabling this until firmer bids are received and all contractors are bidding “apples to apples” with a statement of work written. Once they have this information, the board will call a special assessment meeting in December to discuss and approve a Special Assessment.  Kay stated that any work over $10,000 requires at least three bids. Barbara contacted her insurance company in regards to the HO6 policy and stated that they only need the special assessment letter to cover their portion of the fee with no deductible. Regarding the insurance for the volunteers doing the dock work, Lynn read an excerpt from the association’s insurance agent and it stated that this type of insurance excludes coverage when using power tools, ladders over 8 feet, etc. It was against his recommendations to have volunteers complete the repairs to the docks. If they are injured, this insurance would only cover after they have exhausted their own medical coverage. In light of this discussion, the board could not approve or deny the volunteers completing the repairs to the docks. Chuck suggested obtaining bids from licensed and insured companies for all the needed work.

Landscape Contract for 2012: Barbara reported that four bids were received, and after careful consideration, the decision came down to TC Lawns and VerdeScape. There were many price negotiations and Barbara confirmed that the bids were for the same services. After all the negotiations, Barbara felt that TC Lawns was the best fit for the association. BT motioned to continue to contract with TC Lawns for 2012.  David seconded the motion and it passed by majority voice vote with Kay opposing. BT stated that this is the time to get a landscaping committee to help write the specifications for the 2013 contract so that bids can be sought and references checked. No one volunteered for the committee at this time. Kay asked for a second time for citronella plants to be installed around the pools to help with the mosquitoes. Barbara stated that if there is money in the plant account that this could be looked into for 2012.

Increase board approval to $500: Barbara reported that the person in charge of the maintenance man should be given the authority to approve up to $500 for expenditures. Sally made the motion to allow the board member in charge of the maintenance man to have purchase approval of up to $500.00, Pat Schwent seconded the motion and it passed unanimously. Barbara is currently the board member in charge of Robbie and meets with him every Monday to discuss his jobs for the week.

Delay in receiving financial reports for September: Lynn reported that RDI owner Michelle had some personal issues and therefore the September financials were received late. Lynn apologized for the delay.

Golf cart pathways: Barbara reported that some owners do not like the fact that maintenance man Robbie takes the golf cart over grassy areas, because they feel this is killing the grass. They suggested that he vary his paths. Another owner stated that Robbie needs to get the muffler repaired on the golf cart, because it is very loud. Robbie will work with management to complete this task, and will try to vary his route to and from his supply area.

Maintenance Oversight: Barbara reported that Robbie meets with her every Monday and usually on a daily basis. They not only go over his job duties for the week, but schedule contractor meetings and go over their expenses together. Kay reported some complaints she received about Robbie. Barbara and Chuck agreed to speak to Robbie.

Owner Input: None

Next Board Meeting:
Sally made the motion to skip having a December board meeting and set the next Board Meeting for Thursday, January 12, 2012 at the Sunrise Landing Office. Chuck seconded the motion and it passed by unanimous voice vote.

 Adjournment:
There being no further business to discuss, the meeting was adjourned at 8:46 pm by Chuck Zimmerman.
 
Respectfully Submitted,

Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.
11/28/11
 

Attorney Paul Wean read some questions that were submitted to him from an un-official members meeting held Monday, October 24, 2011, and they are as follows:
Question: What is the difference between “Fully funding and partially funding”? Can this be explained further?   Answer:   Reserves are like a savings account that is set aside, the statue requires 3 components funded and they are Painting, Paving, and Roofing. Then you take the replacement/repair cost to determine the amount that is put into the funding. Each community can choose to fully fund their reserve or partially fund. If they partially fund then this amount of money that is needed to complete the replacement will not be there and they will require a special assessment to complete the repair. Each community will choose to fully fund their reserve and then the association reserve account will be separately voted on as well.

Question:   If there were to be a special assessment, can the members vote at a meeting to use reserve funding from another account to pay the special assessment or to lower the amount that would be needed?  Example, the seawall needs to be repaired again and we have funds  in the paint reserve, can the money be taken from the paint reserve and used on the seawall reserve and used for the seawall repair?   Is it legal to transfer funds from one reserve account to another with a vote from members or only board members would vote this option?   Answer:   Yes, members can vote to waive fully funding in advance but only for one year at a time.   If it is necessary to take money from one reserve account, this can be voted on.   Each community has their own reserve budget and this is the only money that can be moved from one account to a different account.   You cannot vote on an association expense to be removed from individual community reserve. For example, the seawall is an association expense, a vote cannot occur to take money from the individual communities painting reserve to be used for the seawall expense. It is the board’s decision to levy a special assessment.   Owners have no say in this assessment. To waive or reduce the reserve funding the community must have a quorum of their votes by proxy, for example Community 1 has 88 units, 45 of those must present a proxy or be physically present, then a majority of those (half, plus one) would have to vote to waive or reduce their funding, which would be 23 to waive the funding. For the association reserve, a quorum of votes is needed, 236 units, a quorum is 119, and then majority of these would be 61 votes.

Question:  Regarding a special assessment, if one is thought to happen, can this be split into 12 calendar months to pay the association?  Answer:   Yes, the Board can set the terms of the assessment, but it depends on how quickly the money is needed.

Question:   Is it legal to waive the fully funding every year?   Is there a maximum of years that this can be waived?  Answer:   Yes, it’s legal to waive the fully funding every year and there is no legal maximum to do this. It is voted on every year; however it is not a good idea to continually waive the reserves as you will eventually be required to pay a special assessment to make up the difference in amounts needed. The Florida Statue states on a non-reoccurring item there is no maximum cap, but on a normal occurring item the cap is 15%. The burden shifts to the members to call a meeting within 30 days of the adopted budget if they want to adopt a special budget. The seawall does not count in this 15% increase in reserves. Insurance, landscaping, maintenance items, which are consistent year to year count in this increase. The Florida Statues states 718.112 (2.a.)  If a board adopts in any fiscal year an annual budget which requires assessments against unit owners which exceed 115 percent of assessments for the preceding fiscal year, the board shall conduct a special meeting of the unit owners to consider a substitute budget if the board receives, within 21 days after adoption of the annual budget, a written request for a special meeting from at least 10 percent of all voting interests. The special meeting shall be conducted within 60 days after adoption of the annual budget. At least 14 days prior to such special meeting, the board shall hand deliver to each unit owner, or mail to each unit owner at the address last furnished to the association, a notice of the meeting. An officer or manager of the association, or other person providing notice of such meeting shall execute an affidavit evidencing compliance with this notice requirement, and such affidavit shall be filed among the official records of the association. Unit owners may consider and adopt a substitute budget at the special meeting. A substitute budget is adopted if approved by a majority of all voting interests unless the bylaws require adoption by a greater percentage of voting interests. If there is not a quorum at the special meeting or a substitute budget is not adopted, the annual budget previously adopted by the board shall take effect as scheduled.

Question:   An owner stated that we do not have a “Seawall” the correct wording for this is “bulkhead”. Do you know what the difference is between the two?   Does the insurance change for association or homeowner for stating we have a bulkhead and not a seawall?  Answer:   This takes an engineer to answer; attorney is not able to answer. Beverly Thomas stated that the difference is a “bulkhead” is found in a marina and it is used to keep pressure away from the property and a “seawall” does nothing to keep the pressure away from the property.

Question:   What does the maintenance man do that would cause his hours to increase to 40 hours from 20 hours?   Why can’t we maintain 20 hours of work?   We cannot afford to go to 40 hours for a maintenance man.   Please explain why the additional 20 hours are needed?   Owners would like to know if the association could survive with only 20 hours of a maintenance man.   Answer:   It is within the authority of the board to make this decision, not the members.  Barbara Long stated that he was hired for 32 hours, which is in the May 12th minutes; the board increased his hours to 36 when he took over the cleaning of the pool restrooms and cabanas. Some other reasons for a full time maintenance man are:   There is a preventative maintenance schedule  that has to be checked, he has rebuilt 2 bridges, replaced light poles, repaired downspouts and gutters, he had 42.5 hours of irrigation repairs, which and checks the irrigation water meters daily for leaks.  He found 2 faulty water meters that the association received credits of $4,400.00.  He has been instrumental in dealing with contractors onsite, siding replacement, painted bathrooms at north and south pools, completed pool enclosure at south pool, replaced boards on the flumes, sealed the wood on the seawall, etc.  His timesheets and activity logs are located in the office if an owner wants to read them.

Question from Herb Kreppein:   If there were volunteers to do some of these items, would this not cut his hours needed?  Answer:   It is the board’s fiduciary responsibility to make sure things are maintained by licensed professionals and volunteers are not covered under the insurance.

Question: Project manager: What does this entail?  Who qualifies for this position and why?  If a contract is written and the company is licensed and bonded, why do they have to have a babysitter to oversee this?  We STRONGLY request that this position be eliminated and ask for volunteers to help oversee the projects. These volunteers can work closely with management to oversee these projects. Answer:   The Statues obligate the board to maintain the property in good condition by a licensed contractor; they cannot rely on volunteers to perform skillful projects.   A contractor is covered with liability insurance, which volunteers do not have. The Board has D&O insurance for errors and omissions; however it does not cover them for property damages or persons injured.   Kay Briley asked if the volunteers could sign a waiver or release and this was answered as No there is no relief of liability. Michelle read an email from the association insurance agent who stated: “It is not a good idea in any way shape or form to have volunteers doing construction of ANY KIND! It does not matter the age, training, or experience they have. They can be healthy or on deaths door the reasoning is the same.  If ANYTHING were to go wrong with the item being built/rebuilt, even 5 years down the road, then the association would have a lawsuit on them quickly, primarily for not hiring a licensed contractor to make repairs that deal with safety.  (Think someone falling through a slat that wasn't properly screwed in, or even if it was do you think you can prove it?)” A project manager is designed to oversee a major project like an engineer for the seawall repairs. This consultant should be the one meeting with these identities from other agencies to discuss drainage, repairs, etc. These meetings should not occur with homeowners discussing these items as they do have the professional experience or qualifications. Barbara reported that there was a proposal from Universal Engineering to oversee the asphalt project for $6,000, so this is why this amount is in the budget.

Question:   An owner asked about breaking the accounting apart from the website fees, can this be done?   What benefits would the association have to seek another accounting firm to take over the duties of accounting from RDI?   Answer: This is a board decision and it will not be broken out.

Question:   Irrigation water was extremely high this year and not budgeted properly for this.   All understand that there were several leaks that went undetected and new sod and plants this year, but next year there is no money for new sod and/or plants, therefore the amount should not be this high. In 2010 only $4000 was spent on irrigation water and 2011 it is over $19,000, can we not go between these two and only budget $12,000 at the maximum? Answer: The board has estimated this expense based on actual figures and per the attorney the budget does not need to be under funded.

Question:   Mulch:  Owners felt this is a luxury item and understand that without mulch there will be more weeds to control. There has been discussion that volunteers are willing to help in this area as in a “garden club” that can assist with the gross amount of weeds.   Jim Trussik agreed to ask George with Sunrise Village who they get their mulch from and an estimated price and share with the board. Instead of having $8000 in the budget for mulch, can this be reduced to $2000 or so and we get what we can get this year, concentrating on the front entrances and driving areas mostly. Can the board agree to a color of mulch and state that if homeowners want to mulch their area or surrounding area, specify what type of mulch and color must be used?   Answer:   The burden cannot be shifted to the owners to supply their own mulch. This is a common ground and the association has a fiduciary responsibility to maintain these areas. Barbara reported that for $2500 a truck load of 100 yards of mulch could be purchased and possibly put down by volunteers, however if there are no volunteers that come forward, the budget has enough in it so it will be put down by a contractor.

Question:   Building Supplies and Materials:   Why is this so much more than in the past years?   Lynn explained that there are several building materials that are needed throughout the year to assist with preventative maintenance like siding, wood, nails, caulk, etc., which was never really was budgeted for in the past, as well as tools and such that this person does not have. In the previous 2 years, there was about $6,000-8,000 spent for supplies and materials.   Answer:   The buildings don’t get cheaper as they get older.
Question:   Why not look closer at the landscaping contracts and investigate more thoroughly?   Lynn stated that the two contractors were not really bidding apples to apples and only after negotiations were the bids lowered. The owners would like to assist in re-writing the RFP for the landscapers to bid from and send this out to 5 or 6 companies to get their bids and then investigate the references that they would send in. Can this be accomplished?  Answer:   Yes it can be done, but only by the board appointing the owner on a committee. An owner cannot represent the board unless appointed by the board.

Rental properties from the association:   Why are these amounts of income not shown on the budget? Lynn explained that the purpose of renting these units out was to decrease the amount that is owed on these properties before the bank takes over the property.  We don’t think that the accounts would get to a zero balance and money would be coming in with these properties. The banks will take these back over and try to sell them.  Lynn emphasized that whatever costs were going to these units, they were being charged to these units including legal fees, the objective is to recover the money that is owed the association and reduce the delinquent amount.   Answer:  The associations have an advantage over the banks at this time; the banks cannot act as quickly as the associations can. An association can do a lien foreclosure in approximately 9 months, where the bank will take 1-3 years to foreclose on. The Association can gain title to these units and rent them to decrease the amount owing on this unit. These amounts are shown on the bad debt line item and with the rental of these units; the monies will decrease the bad debt line item before the bank forecloses on the property.

Question: The board meetings were always held in the evenings when working people were able to attend. All of a sudden, the board meetings occur during the day time and working owners cannot attend these.  Can these meetings occur in the evenings so all can attend and voice their opinions? Answer: The board has the authority to conduct business during times that are convenient for them to attend, however as the attorney, I would recommend that some meetings are scheduled in the evening so that owners have a chance to attend.
Question:  The owners feel that the board should postpone their approval of the Budget scheduled for this Thursday so that they would have time to answer these questions in detail and try to change numbers on the Budget to lower the amounts. Can this be done? Would RDI have to mail out new packages to owners with the changes?  Can this be sent electronically and still be legal since a hard copy has already been sent out?  If possible, can the final budget vote be delayed until after the vacant board positions have been filled?   Answer:   Paul Wean recommended that the board to adopt the budget, and it can always be amended with proper notice.  Notices cannot be electronically sent, if this were to occur,  the Bylaws would have to be amended to allow this and owners would have to give permission.

Question:   The posting of vacancies for board positions:  Why have these not been posted?  Two members exited the board in July and this posting should have occurred at the same time?  Lynn replied that the posting would be up in the bulletin boards by the next business day. These postings were stated in the quarterly newsletter as well that was sent electronically and in the “take one boxes”.  Answer: There is no time requirement to fill vacancies on the board. However, in your Bylaws, Article 4 (3D) references vacancies of officers shall be filled at the duly noticed meeting.  There is nothing about vacancies of directors.  To fill these positions, it must be on the agenda, which only officers are on tonight’s agenda.

Question:   Insurance proof:   A letter was sent with the Budget packages that state you must supply the association with a certificate of insurance on your unit.  In 2007-2010 it was in the Florida Statues that an owner was required to have insurance and provide proof, in 2010 that was removed and it referred back to your documents. The association documents state that insurance is required and proof must be provided when requested.  This will cover the loss assessment that is required, which would pay up to $2000 minimum if a casualty loss occurred due to a storm or such.   Management will  supply the board with a list of owners that have not provided a certificate of insurance and  letters will be sent reminding them of this requirement and possible legal action.

Question: Can the board legally go from 7 to 9 member’s midyear?  The board can expand to 9 members, but no less than 3 members. I highly recommend an odd number, but the board can expand or contract in a duly noticed meeting and a vote taken.  A quorum of the board is 5 and takes 3 votes to take action. Board members can attend by speakerphone as long as everyone can hear them and they can hear everything.

Question:   Emails have been on the line of slander, can you explain further?  Paul Wean stated that all of the members are a recognizable group and should be courteous.  It is a qualified privilege and something said could go beyond reasonable privilege. You cannot accuse someone of stealing unless you have the material to back up the accusation. He recommended not being dysfunctional and to be courteous.  Email discussions are approved as this is a communication tool. Things can be discussed, suggested, investigated and informed, but DO NOT COMMIT by email. A decision needs to be made in an open board meeting.  It is not illegal to exclude a board member from emails.

Question:   Who can approve maintenance supplies expenditures?  Answer:  The board members need to vote and set a policy and delegate the person responsible for approving expenditures.   Put this on an agenda and vote on it with a maximum amount.

Paul Wean stated that since there were no more discussions about questions, he would continue on to the voting results.

Vote #1:  CPA audit or CPA Review of the 2011 financial records.  This would be voted upon as an association expense and needed a quorum. Lynn reported that there were 236 units, 147 voted, a quorum was established, 105 voted to waive the audit and have a CPA review of the 2011 financial records.

Vote #2: Fully fund or partially fund reserves for the fiscal year 2012. For the Master association, 147 voted, and 117 voted to partially fund the reserves funding only the asphalt and seawall line items. SL 1 subdivision has 88 units, 48 voted, a quorum was established, 36 voted to partially fund their reserves. SL 2 subdivision has 72 units, 52 voted, a quorum was established, 42 voted to partially fund their reserves. SL 3 subdivision has 76 units, 45 voted, a quorum was established, 39 voted to partially fund their reserves.

Vote #3: Straw vote:  Should the Association permanently remove the dry saunas as an amenity noted in the governing documents to save money on repairing vandalism damage?   If a majority of all owners want these removed, then an official ballot will be mailed to all owners to amend the documents to show these changes. This was voted upon as an association vote and needed a quorum. Lynn reported that there are 236 units, 147 voted, a quorum was established, 132 voted to permanently close the dry saunas.  Paul Wean explained that with this amount of votes, it should be put forth to amend alterations/changes to the dry saunas in the common areas, which would need a 75% vote from owners.

Question from the audience to clarify the subdivisions: Michelle reported that buildings from 7150-7240 are in SL1, buildings 7300-7360 are in SL2, and buildings 7400-7470 are in SL3.
Adjournment:
There being no further business to discuss, the meeting was motioned to adjourn at 8:38 pm by Kay Briley.
 

Appoint Officer Vacancies (President/Vice President) Paul Wean explained that the option of appointing could be done by secret ballot, as no one stated this was desired, he agreed it would be done by open ballot. Barbara Long nominated Chuck Zimmerman as President, which he confirmed that he would be willing to serve if elected. With no other nominations, Beverly seconded the motion and it passed by 4 yes and 1 no. Chuck asked Paul Wean to continue to preside over the meeting in his absence. Beverly nominated Sally Mifflin as Vice President, which she confirmed that she would be willing to serve if elected. With no other nominations, Barbara seconded the motion and it passed by 4 yes and 1 no.

Approval of the Board Meeting Minutes of September 29, 2011: Paul asked if all board members received the distributed minutes, and all agreed. Barbara made a motion to make changes to the time of the upcoming Budget meeting from 6:00 to 6:30 and another change under roofs to say original shingles were a poor quality…. Barbara motioned to approve the corrected minutes as stated. Chuck seconded the motion and it passed by 4 votes with one abstaining due to knowledge.

Financial Report:
Barbara Long reported that there was a balance of $102,579 in the operating account as of September 31st.  Reserves have a total of $383,956. The master association is over budget by $2,536 due to irrigation repairs and irrigation water bills, subdivision SL1 is over budget by $7,706 due to repairs, water damaged units and legal fees; SL2 is over budget by $3,927 due to water bills and legal fees, and SL3 is over budget by $1053 due to water bills and legal fees. Past due assessments are $60,392. Barbara reported that $8,000 was just received from one foreclosure unit being sold and that a board member is closing on another foreclosure unit.

Owner Discussion regarding 2012 Budget: Paul Wean opened the floor for discussion.  Several of the questions were going to be answered in the board discussion of the Budget.
Discussion and Ratification of Member Votes Above:   Barbara Long reported that there were some changes done to the budget regarding lowering amounts. Barbara made a motion to amend the budget line item for the mulch to be decreased from $8000 to $5200, Beverly seconded and it passed by 4 votes, 1 absent.  Barbara made a motion to amend the budget line item for the irrigation water to be decreased from $24,996 to $20,000, Beverly seconded and it passed by 4 votes, 1 absent.  Barbara made a motion to amend the budget line item for the shrubbery, flowers, and sod to be decreased from $4,980 to $4,000, Beverly seconded and it passed by unanimous voice vote. Barbara made a motion to amend the final budget amount be decreased from $299 to $296 per month, per unit, Beverly seconded the motion and it passed by unanimous voice vote.  Paul Wean reported that the new 2012 amended budget was passed with all 3 subdivisions partially funding their reserves and master association partially funding its reserve and the monthly payments would be $297 per unit, per month.

Next Board Meeting:
The next Board meeting is set for Thursday, November 10, 2011 at 6:00 pm at the office of Sunrise Landing.

Kay Briley announced that all submissions needed to be in by November 11th for the upcoming Newsletter.

Adjournment:
There being no further business to discuss, the meeting was motioned to adjourn at 9:20 pm by Paul Wean, seconded by Barbara Long.

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

1. What is the difference between “Fully funding and partially funding”? Can this be explained further?

2. If there were to be a special assessment, can the members vote at a meeting to use reserve funding from another account to pay the special assessment or to lower the amount that would be needed? Example, the seawall needs to be repaired again and we have extra funding in the paint reserve, can the money be taken from the paint reserve and used on the seawall reserve? Is this legal to transfer around with a vote from members or only board would vote this option?

3. Regarding special assessment, if one is thought to happen, can this be split into 12 calendar months to pay the association?

4. Is it legal to waive the fully funding every year? Is there a maximum of years that this can be waived?

5. An owner stated that we do not have a “Seawall” the correct wording for this is “bulkhead”. Do you know what the difference is between the two? Does the insurance change for association or homeowner for stating we have a bulkhead and not a seawall?

6. What does the maintenance man do that would cause his hours to increase to 40 hours from 20 hours? Why can’t we maintain 20 hours of work? We cannot afford to go to 40 hours for a maintenance man. Please explain why the additional 20 hours are needed? Owners would like to know if the association could survive with only 20 hours of a maintenance man?

7. Project manager: What does this entail? Who qualifies for this position and why? If a contract is written and the company is licensed and bonded, why do they have to have a babysitter to oversee this? We STRONGLY request that this position be eliminated and ask for volunteers to help oversee the projects. These volunteers can work closely with management to oversee these projects.

8. An owner asked about breaking the accounting apart from the website fees, can this be done? What benefits would the association have to seek another accounting firm to take over the duties of accounting from RDI?

9. Irrigation water was extremely high this year and not budgeted properly for this. All understand that there were several leaks that went undetected and new sod and plants this year, but next year there is no money for new sod and/or plants, therefore the amount should not be this high. In 2010 only $4000 was spent on irrigation water and 2011 was excessive of $19,000, can we not go in between here and only budget $12,000 at the maximum?

10. Mulch: Owners felt this is a luxury item and understand that without mulch there will be more weeds to control. There has been discussion that volunteers are willing to help in this area as in a “garden club” that can assist with the gross amount of weeds. Jim Trussik agreed to ask George with Sunrise Village who they get their mulch from and an estimated price and share with the board. Instead of having $8000 in the budget for mulch, can this be reduced to $2000 or so and we get what we can get this year, concentrating on the front entrances and driving areas mostly. Can the board agree to a color of mulch and state that if homeowners want to mulch their area or surrounding area, specify what type of mulch and color must be used.

11. Building Supplies and Materials: Why is this so much more than in the past years? Lynn explained that there are several building materials that are needed throughout the year to assist with preventative maintenance like siding, wood, nails, caulk, etc., which never really was budgeted for in the past, as well as tools and such that this person does not have. In the previous 2 years, there was about $6-8,000 spent for supplies and materials. Also the septic enzymes were put against this account as well for the different subdivisions, which was estimated at $600.

12. Why not look closer at the landscaping contracts and investigate more thoroughly? Lynn stated that the two contractors were not really bidding apples to apples and only after negations were the bids lowered. The owners would like to assist in re-writing the RFP for the landscapers to bid from and send this out to 5 or 6 companies to get their bids and then investigate the references that they would send in. Can this be accomplished?

13. Rental properties from the association: Why are these amounts of income not shown on the budget? Lynn explained that the purpose of renting these units out was to decrease the amount that is owed on these properties before the bank takes over the property. We don’t think that the accounts would get to a zero balance and money would be coming in with these properties. The banks will take these back over and try to sell them. Lynn emphasized that whatever costs were going to these units, they were being charged to these units including legal fees. The hope is to recover some of the monies to help reduce the A/R sheets.

14. The board meetings were always held in the evenings when working people were able to attend. All of a sudden, the board meetings occur during the day time and working owners cannot attend these. Can these meetings occur in the evenings so all can attend and voice their opinions?

15. The owners feel that the board should postpone their approval of the budget scheduled for this Thursday so that they would have time to answer these questions in detail and try to change numbers on the budget to lower the amounts. Can this be done? Would RDI have to mail out new packages to owners with the changes? Can this be sent electronically and still be legal since a hard copy has already been sent out? If possible, can the final budget vote be delayed until after the vacant board positions have been filled?

16. The posting of vacancies for board positions: Why have these not been posted? Two members exited the board in July and this posting should have occurred at the same time? Lynn replied that the posting would be up in the bulletin boards by the next business day. These postings were stated in the quarterly newsletter as well that was sent electronically and in the “take one boxes”.

17. There are several volunteers that want to help out in various items, but the board has elected to not call on these volunteers on a regular basis. Then there are personality issues with some board members not getting along with everyone. Can there be a schedule in the office for volunteers to sign up on and if there is someone volunteering, do board members have to show to the office every time it is open? Lynn replied that she would do a signup sheet and have available in the office and if ANYONE wants to volunteer, they could leave their name and number on this sheet and when situations come along that we need volunteers to step up, calls can be made. Some volunteer positions would include: Gardening club; social club; asphalt project; seawall project; landscaping club; office club; mass mailing club; Contract reviewing club; etc…. Can these be implemented and accepted by the board of directors? There were 5 volunteers that agreed to meet at the office on Wednesday to call people to send in their proxy’s for the budget meeting. Ms. Kay volunteered as the board member to open the office and allow them to come in and call. They will be told that the proxy’s can be scanned in and emailed, faxed, and dropped off at the office. Sharon also agreed to drive and pick up any that needed to be picked up.

18. Can the attorney be cancelled for the budget meeting so that there is not more money to have to spend? Lynn reported that this would be hard to cancel as there is no President or Vice President to run the meeting. Besides having the attorney present would help answer some of the questions and concerns that the owners may have towards the budget process and possibly a better understanding of how things should work in regards to the board of directors. Lynn stated that she would ask the board of directors if the attorney could be cancelled for attending this meeting.

The owners at this meeting requested Lynn from RDI to type these up and present to the board members for answering. They would also like these questions and answers to be displayed on the website for other owners to be able to read, is this possible?

Patti Quandt and several owners thanked Lynn for coming out on her off time to help the owners have a better understanding on some of the issues at hand.
Next Board Meeting:
The next Budget meeting for the owners and Board Meeting is set for Thursday, October 27, 2011 at 6:00 pm at the south pool at Sunrise Landing.

 Adjournment:
There being no further business to discuss, the meeting was adjourned at 8:15 pm by Patti Quandt.
 
Respectfully Submitted,
  Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.

Call to Order/Establish Quorum of Directors: President Ken Schmeling called the meeting to order at 6:03 pm in the onsite office at 7350 N. Cocoa Blvd, Unit #105, Vice President Chuck Zimmerman, Director Beverly Thomas, and Sally Mifflin attended by speakerphone. Other Board Members present were: Treasurer Barbara Long, Director Glen Michaels, and RDI management Lynn Hiott and Michelle Davis.  Secretary Kay Briley was absent. A quorum was established.  Unit owners in attendance: Donna Zimmerman, Jean and Patricia Bobka, Terry Skaggs, Sharon Skaggs, Vicki Pape, Jim Johnson, and Jeanine Lemieux.

 Approval of the Board Meeting Minutes of August 25th, 2011: Barbara made some corrections to these minutes of: Under Legal update the board stated that approved to remove the small amounts owing from owners to They will not waive these amounts and the owners will be billed for the shortages. Also the other correction is under the Finance committee that the budget would be mailed out in the middle of October and not the end of October. Lynn stated that she would make these changes to the minutes before posting the website. Barbara made the motion to approve the minutes with those corrections. Glen Michaels seconded the motion and it passed by unanimous voice vote.

Approval of the Board Meeting Minutes of September 8, 2011: Barbara made the motion to approve the minutes as written. Glen seconded the motion and it passed by unanimous voice vote.

Financial Report:
Barbara Long reported that there was a balance of $86,091 in the operating account as of August 31st.  Reserves have a total of $371,531.There is $30,399 in prepaid assessments and past due assessments total $63,195.  The master association is over budget by $1457 due to irrigation repairs and irrigation water bills, subdivision SL1 is over budget by $2158 due to repairs, water damaged units and legal fees; SL2 is over budget due to water bills and legal fees, and SL3 is over budget for water bills and legal fees.

Legal Update: Barbara reported that one owner that is past due was trying to avoid being served, one unit the association is trying to rent out, another unit the bank is trying to sell and is currently taking offers. Another unit sold and we should be recovering past due monies, another unit sale is set for October 5th another unit the owner is giving us the deed in lieu of foreclosure for the association to rent out. The clerk of court misplaced the paperwork for the unit that had the highest amount outstanding and the hearing has been rescheduled for November 9th. The attorney is actively working all these bad debts.

Committee Reports:
Landscaping: Irrigation: Barbara reported that the sprinklers have been off for five weeks. TC Lawns  is trimming the bushes heavily due to all the rain and their growth. Mulch is on hold until the association can see where they are at the end of the year in expenses.

Asphalt: Ken reported that there was not much more information on this subject. All of the plans were pulled from Mike Allen Engineering and given to Byron Evitts, he came out and surveyed the property this month on the drainage issues. He will give us an estimate on costs to repair and is contacting St John’s Water Management to determine if any funds are available.
Newsletter: Ken reported that the newsletter has been printed and placed in the take one boxes.  He encouraged all owners to read as there is important information included in this.

Managers Report: Lynn reported that there was nothing to discuss at this time.

Maintenance Review for June, July, and August: Ken reported on items that Robbie has accomplished in the last few months. He has secured all the downspouts to all the buildings, cleaned out all the AC lines. He oversaw the installation of the mirrors in each of the restrooms in the cabanas, which cost $175 to install. The mirrors were donated by a unit owner. He enclosed the south pool storage area for tools, equipment and miscellaneous items. He has inspected four buildings according to the Preventative Maintenance Plan and has found several issues with the soffit and roofs. Aside from his normal maintenance duties, Robbie has been working extremely hard and continues to do an excellent job on our property.

Old Business:
Entrance ways with large cracks in the concrete: This item will be tabled. Ken reported that when Byron comes to meet with him on the drainage problems, he will also ask him to look at the cracks and determine the cause.

Hand dryers/toilet paper holders: Lynn reported on the hand dryers from American Dryer cost of $159 each and 4 is needed for a total of $636 plus shipping. The toilet paper holders are commercial grade and are locked, each one holds a 9 inch rolls of toilet paper and costs $17.74. There are 8 that are needed for a total of $142. The case of toilet paper for 12 rolls is $38.82, and 2 cases will be ordered at $78 plus shipping. A total cost for everything is $856 plus shipping. Lynn reported the total cost of paper towels and toilet paper purchased through August for both pool areas of $462. This will reduce the amount we are paying for paper products and eliminate waste.  Barbara made the motion to purchase these items and funds will be taken from the pool and cabana cleaning budget line item. Glen seconded the motion and it passed by unanimous voice vote.

New Business:
Porch enclosure for 7310-102 request: This unit owner contacted the board for approval to modify her porch enclosure. Ken reported that it would change the esthetic appearance of limited common element and could not be approved. Ken opened this up for discussion and all the board members felt that this request should be denied. Ken made the motion to deny this homeowners request for the porch enclosure. Chuck seconded the motion and it passed by unanimous voice vote.
 
City of Cocoa Water Credits:  Barbara reported that due to estimated water bills, a faulty meter and the billing was wrong with a meter, the City of Cocoa has approved a credit in the amount f $4,400. Barbara reported that this would use up the associations lifetime credits.

 Rental of 7330-105: Barbara reported that there have been some issues with this unit. The Air conditioner pan is rusted and water leaked and flooded the hallway, kitchen, and bathroom. The association called a company to bring equipment to dry out the unit and an air-conditioning company will repair the rusted pan for $300, this has to be repaired before the unit can be rented. There was a plumbing leak in the laundry room and Robbie removed the drywall to make the repair. The laundry room had black mold growth on the wall and floor. The association will have to make these repairs and treat the mold areas prior to the unit being rented. The rent was lowered to $600 a month due to all the legal paperwork that the tenants would have to deal and the board felt that a lower rental rate would help make up the bad debt expense. We have received a deposit from a potential renter and as soon as the unit is repaired he intends to sign a lease. Ken suggested that management contact United Carpets to get Conrad to come out and treat the unit properly to remove the mold. Glen stated the unit cannot be rented until the mold is eliminated so it will not spread to other units.

 Lawn Bids: Lynn reported that we had four contractors to send in bids for 2012 for grounds maintenance that includes fertilization, pest, and weed control and they are: TC Lawns came in at $72,380; Verdescape came in at $71,017, Marone’s Mowing at $63,200, and Barto’s Lawn Care at $71,990 (excluding fertilization, pest, and weed control). A discussion ensued between the board members and owners. Barbara suggested renewing TC Lawns contract for 2012 as they are familiar with the property and know what is expected. Glen brought some questions and concerns to the table and the board decided to table this until he reviews the statement of work and compares the bids. Glen has volunteered to oversee these contractors and try to clarify these contracts. A homeowner asked if some type of penalties could be included in the contract for work not accomplished.

Miscellaneous Repair to split meter at 7440 (Pool and irrigation): This subject was dismissed as research was done that showed no sewage is being charged on this account, therefore there is no reason to split the meters.

Roofing issues: Ken reported that there are big problems with some of the roofs, Buildings 7160, 7200, 7220, and 7420, has rotted sheathing and needs to be repaired. The buildings were built in 1987 and the shingles were replaced in 1999, giving us approximately 20 years of life. Donna stated the shingles were a poor quality and would not last for the full 20 years. Ken suggested that with repairs this would help extend the life expectancy.

Dry Sauna’s: Barbara reported that water has once again been poured into the dry sauna heating units and they are not working. The heating elements have been replaced at least 3 times due to vandalism and there are a small number of people that use this amenity.  BT motioned to close the dry sauna’s until Paul Wean’s office can write up the language to the owners to change their governing documents to permanently close the dry saunas. Barbara seconded the motion and it passed by unanimous voice vote. For the time being, Robbie will lock these saunas until further notice.

Budget for 2012: Barbara reported that the finance committee had a meeting to discuss the proposed budget and have reduced all the areas that they could. The property insurance premium is expected to increase over $16,000 for the next year.  The premium increased $12,000 for the period from June to December of this year due to the new appraisal.  The termite bond through Terminex will increase by 10%. Maintenance labor is increasing to 40 hours due to the preventative maintenance schedule. The projected maintenance fees will go up to $31 a month with partially funded reserves. There has been no increase in maintenance fees in the prior 3 years. There is $4600 in the seawall reserve since this was used for the two major repairs in 2011 instead of a special assessment. The minimum amount of $20,000 will be put in the seawall reserve. There is $63,000 in unpaid maintenance fees; someone has to pay for this shortage and that is part of the reason for the increased fees. Barbara reported that there is $106,000 in the roads reserve and this cannot be patched any longer, the projection is putting $60,000 in the road reserve, nothing in the porch reserves since SL1, SL2 and SL3 has a little over $15,000 in their reserve accounts. If the owners choose to fully fund the reserves, their fees would go up $50-$60 for each unit. Roof reserves have not been funded correctly in the past and now that there are true numbers for the life span, this is a large increase. The correct way that the State says to fully fund a reserve is the total value, less the life, minus the savings that you have and funding is the difference. Should there be a major expense and the reserve is not adequately funded this could result in a special assessment. A lot of the association expenses are fixed and could not be negotiated.

The proposed budget amounts are:
Fully Funded  Partially Funded
SL1-$318  SL1-$298
SL2-$327  SL2-$298
SL3-$324  SL3-$298

Ken made the motion to mail the proposed budget to all the home owners as written, Barbara seconded the motion and it passed by unanimous voice vote.

Owner Input: None

Next Board Meeting:
The next Budget meeting for the owners and Board Meeting is set for Thursday, October 27, 2011 at 6:00 pm at the south pool at Sunrise Landing.

Adjournment:
There being no further business to discuss, the meeting was adjourned at 7:27 pm by Ken Schmeling.
 
Respectfully Submitted,
Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.

Call to Order/Establish Quorum of Directors: President Ken Schmeling called the meeting to order at 2:35 pm in the onsite office at 7350 N. Cocoa Blvd, Unit #105 Treasurer Barbara Long and Vice President Chuck Zimmerman attended by speakerphone. Other Board Members present were: Secretary Kay Briley, Director Glen Michaels, and RDI management Lynn Hiott and Michelle Davis-Dugan.   A quorum was established.

New Business:

Cancellation of Truly Nolan Contract: Chuck made a motion to approve the 30-day termination letter and end their contract as of September 30, 2011 due to non compliance of weed control. Barbara seconded the motion and it passed by unanimous voice vote.

Discussion of Replacement Contract:  Glen make a motion to approve TC Lawns to take over the remaining contract from Truly Nolan and the balance remaining on the contract would be carried over to TC Lawns. Chuck seconded the motion and it passed by unanimous voice vote.
 
Adjournment:
There being no further business to discuss, the meeting was adjourned at 2:40 pm by Ken Schmeling.
Respectfully Submitted,
 
Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.

Call to Order/Establish Quorum of Directors: President Ken Schmeling called the meeting to order at 2:03 pm in the onsite office at 7350 N. Cocoa Blvd, Unit #105 Treasurer Barbara Long, director Chuck Zimmerman, director Beverly Thomas, and director Sally Mifflin attended by speakerphone. Other Board Members present were: Secretary Kay Briley, Director Glen Michaels, and RDI management Lynn Hiott.   A quorum was established.  Unit owners in attendance: Donna Zimmerman and Kevin Polletti.
 
Approval of the Board Meeting Minutes of June 23, 2011: Kay Briley made a motion to approve the minutes as written. Glen Michaels seconded the motion and it passed by unanimous voice vote.

Appoint Vice President Vacancy: Ken reported that Sharon Skaggs resigned from the board and therefore, the board needed to appoint this vacancy. Barbara made the motion for Chuck Zimmerman for Vice President position, he agreed, and Glen seconded the motion and it passed by unanimous voice vote. It was also noted that Director Terry Skaggs had resigned from the board.

Financial Report:
Barbara Long reported that there was a balance of $97,933 in the operating account as of July 31st.  Reserves have a total of $359,944.There is $30,488 in prepaid assessments and past due assessments total $59,122.  The master association is over budget by $2004 due to irrigation repairs and irrigation water bills, subdivision SL1 is under budget by $488; SL2 is over budget by $2864, due to irrigation bills and legal fees (we did recover $2,600 for a sale in SL2), and SL3 is over budget by $543 for water bills and legal fees. Barbara reported that the CD renewal at Sunrise Bank was automatically renewed on August 14th at 0.65% interest rate. Calls had been made to several banks and the interest rates were as low as 0.20%.  The CD amount was for $126,240. If the board decides to move to another bank, this would have to be approved in the minutes, and management would have to show proof of the minutes to the bank to move this money.

Legal Update: Barbara recommends that they eliminate the late fees for 4 accounts that are small amounts, under $3 each to get these removed from the A/R which totals $8.67. Ken made this motion to approve to eliminate these amounts, BT seconded the motion and it passed by unanimous voice vote.  Barbara also reported that the association collected approximately $5700 from a sale of a unit, which would lower the legal fees for SL 2. Lynn reported on the legal updates: The judge signed a final motion for summary judgment on unit 7180-102, for which they will send us the sale date information. Unit 7330-206 is in the process of serving the heirs to the unit before we can go any further; unit 7360-104 has a sale date of October 5th; unit 7470-204 is up for the judge to sign a final motion for summary judgment and then a sale date will be set, things are moving along. Lynn suggested that the board reconsider the process of association foreclosure with unit 7400-103 due to the amount of damages inside this unit. Chuck motioned to cancel the lien foreclosure and to ask the attorney to move aggressively forward with a status conference for the bank to foreclose on the unit. The association does not have an interest in gaining title to this unit. BT seconded the motion and it passed by unanimous voice vote.

Committee Reports:
Landscaping: Irrigation: Barbara reported that irrigation is currently over budget by $19,000 and at this rate, the association will be over budget by approximately by $43,000 at the end of 2011. Ken reported that Robbie has over the last 2 months put over 42 ½ man hours into the irrigation repairs. As they were doing drains behind 7240, the found pipes that are enclosed with roots that are growing in and around these pipes. These pipes have been in the ground for over 26 years and have never been replaced properly. These repairs and roots are causing major leaks. Ken suggested that we needed to contact vendors to come in and take a look at our irrigation and give their professional opinions. Ken stated that he would see this through. Kevin Polletti volunteered as well to assist Ken on this task. All board members approved this suggestion to gather bids. James with TC Lawns came in and discussed some of these issues. He suggested capping each zone and pressuring test each zone to replace these lines. He also suggested shutting the meters off and only turn on to water while people are present to monitor these lines for major leaks. James did state that the valves are old and the rubber has deteriorated over time and will need to be replaced.

Ken reported that while Robbie was doing these emergency repairs, an owner began harassing him. Ken called the Sherriff’s Department and found that it is a crime with a 2nd degree felony to harass employees. So, he has informed Robbie if there are any more of these issues, the police will be called immediately. No employee or board member should be subject to this harassment.

Asphalt: Ken reported that this subject would be tabled.

Newsletter: Kay reported that there were no submissions received for the upcoming newsletter. She submitted nine items on various subjects. Ken volunteered to submit an article on maintaining water valves and hoses to Kay. Kay also reported that Roberta Kott has volunteered to help with the newsletters. Kay asked Lynn to assist by formatting and adding the clip art into the newsletter after she submits the articles and Lynn agreed to help with this. Ken, Barbara, and Chuck reported that they would not have any issues with this request.  The newsletter should be ready to submit to owners by September 15th.  It was suggested later in the meeting for an article to be submitted in the newsletter about it is a crime and punishable by law for harassing an employee.

Managers Report: Lynn reported that she was asked to get prices for an electrical hand dryer for the restrooms to help with our cost in paper products. Lynn found one for approximately $159 with a timer built in to shut off and commercial toilet paper holders that lock.  The Board decided to forego these purchases at this time. Kevin Polletti suggested consulting the Fort Howard Company when the decision was made to move forward on replacing the toilet paper dispensers. He stated this company provides the dispensers free of charge if the paper is purchased from them.  The cleaning company has stated that they have not been satisfied with the cleaning contract. Ken motioned to cancel the contract with Jan-Pro Cleaning company, Barbara seconded this motion and it pass by unanimous voice vote.  Ken motioned for Robbie to be given an additional 4 hours a week for pool cleaning and office cleaning to replace the cleaning company. Barbara seconded this motion and it passed by unanimous voice vote. Robbie will go from 32 hours a week to 36 hours a week. Ken offered to discuss this with Robbie to see if he is willing to accept this.

Maintenance Review for June, July, and August: Ken reported on items that Robbie has accomplished in the last few months. He has rebuilt the bridges at 7350 and 7310; he has interfaced with the contractors, he has an experienced eye to oversee the professional jobs; he has overseen the installation of the cabana doors; he has replaced the locks, repaired the north dock, secured the downspouts on the buildings, cleaned out the weep holes within the seawall, painted all 4 bathrooms, and has lately been working on installing emergency drains behind 7240. Robbie has been working extremely hard since arriving, and continues to do an excellent job on our property.

Ken reported on the emergency drains that were installed and that he met with representatives from the St. Johns Water Management District. They have inspected the drains and everything that has been done has been legal and approved by them. Nothing can be done with the extra drainage along US1 until the state decides to widen this road, which will not be anytime soon. Ken also reported that he has a meeting scheduled with Byron Everts to discuss our drainage issues and possibly come up with a solution. He will report on this at the next meeting.
 

Old Business:
Entrance ways with large cracks in the concrete: This item will be tabled. Ken reported that when Byron comes to meet with him on the drainage, he will also ask him about the cracks as well.

New Business:

Seawall Repair Approval: According to the May minutes, an allocation of $2,000 was approved for seawall repairs. Additional expenses of $750 have been incurred for equipment rental and other costs. Barbara made the motion to approve an additional amount not-to-exceed $800 from seawall reserves, BT seconded the motion and it passed by unanimous voice vote.

Pool Heater at South Pool:  Chuck made the motion to approve Jeff Stanton to install the new pool heater at the south pool in September/October in the amount of $4100 from the pool reserves. Barbara seconded the motion and it passed by unanimous voice vote. Pool heater will be turned on November 1st.
 
Rental of 7330-105: The board asked management to have Paul Wean’s office write a lease for the rental property that the association has taken title to. Paul Wean’s office wrote a lease and all board members have reviewed this lease. Barbara made the motion to rent this unit at $750 month with security deposit of $750 with good references. The new tenants will be required to pay the association $500 security deposit and the $50 administrative fee. There would be no pets allowed and the association would carry liability insurance on this unit. Ken seconded the motion and it passed by unanimous voice vote. Management would place this rental ad on Craig’s List and if not rented within 2 weeks, the association will place an ad in the newspaper. Barbara reported that the association did get liability insurance on this unit until the bank forecloses on this. Paul Wean will finish this lease once we have tenants and these charges will be placed onto the unit account for when the mortgage forecloses or we have enough in rent to clear the balance on this account.
 
Full-time management: Ken reported that owners have suggested full-time management to take the load off of more board members. Lynn reported that if Reconcilable Differences were to come in for 40 hours a week, this would be at a cost of $6000 each month. If RDI was to come in for an additional day in the week to make this a 3-day work week, there would be an additional $1200 a month for an additional 8 hours. If the board would like to hire per hour, the cost would be $35 per additional hour. Ken asked what the association was paying now for management and this total was $2688 for 18 hours per week with 6 hours of this onsite for office hours. Lynn stated that she is putting in 30-40 hours a week without charging extra. Lynn reported that management is not a security guard and not a police officer, so she was not sure where the hours would come from. Lynn asked if we could get an RFP written and go out for bids from other management companies that would be sealed for the board members. Barbara then reported that they were looking for office personnel to man the office 40 hours a week to be of a convenience for the homeowners; they are not looking for a licensed CAM, just an experienced person to work the office. Barbara stated that Ken is working over 8 hours a day doing association work and is getting burned out. Lynn tried to explain that contractors will work around management schedule to meet with her, but this has not been allowed by board members. Glen stated that there should be more management involvement and board members need to take a step back and allow management to do their jobs even if we get more time in the office with personnel; this still will not stop Ken from being so involved. Barbara stated that the finance committee will discuss these numbers for the upcoming budget. Lynn asked if all board members had received her manager job description. She stated that if she could get approval to do all of these tasks the board would not have so much to do.

Finance Committee: Barbara reported that the finance committee will be meeting to discuss the proposed budget and should have ready to send the unit owners by the end of October. Lynn reminded them that we have to send this out 14 days prior to the budget meeting. Barbara announced the finance committee will consist of herself, Chuck, Bob Esser, and Ken. Barbara reminded everyone that the insurance has increased $12,000 for next year and this will probably result in the monthly fees going up.

Owner Input: None

Next Board Meeting:
The next Board Meeting is set for Thursday, September 22, 2011 at 2:00 pm at the office at Sunrise Landing.
 
Adjournment:
There being no further business to discuss, the meeting was adjourned at 4:10 pm by Ken Schmeling.
 
Respectfully Submitted,
 
Lynn Hiott, CAM #35322
Reconcilable Differences, Inc.