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Minutes of the Meeting of the Board of Directors for the
March 28, 2014

Call to Order: 
The meeting was called to order at 1:00 pm by President Brenda Dowd. Four residents attended. 

Establish Quorum of Directors: 
Board members present: President Brenda Dowd, Vice President Evelyn Bourke, Secretary Betty Conant, Treasurer Dennis Filler. Director David Mark was absent. Michelle Davis and Lynn Hiott represented Reconcilable Differences. 

Guest Speaker: Dave Siperek with Statewide Insurance stated that he was invited to discuss the Association Insurance policies. All owners are encouraged to have an HO6 policy to cover their interior contents, but the association has a master policy which covers from “the drywall out” which means that plumbing and electrical lines that service more than one unit are covered by the Association along with the structure.  Dave noted that foundations are excluded from coverage under the property policy. Only flood policies cover foundations. The owner’s HO6 policy covers from the paint inward, which covers the paint, the baseboards, carpet, tile, cabinets, and all personal contents. American Coastal insures the property with a 3% “per building, per calendar year” hurricane deductible. Should the property be flattened in a “named” storm, the buildings are insured for $7.6 million dollars, so the deductible would be $228,000 or $2200 per unit owner.  Should we have a “no name” storm and it does damage, there is $5,000 deductible. This premium is $42,548 per year. Lloyds of London covers our general liability policy at $3,928.79 per year. Liberty Mutual covers our Directors and Officers policy. It has a $1,000 deductible with a premium of $1,076.82. Continental Casualty offers a worker’s compensation policy for $648. This is not for the handyman; he is covered by the payroll company. This coverage is needed if a contractor or his employees are hurt on the property and their coverage has lapsed. Instead of being sued under the liability policy for millions of dollars, this inexpensive policy covers them as employees. National Surety Corp covers the $5 million umbrella policy for $1,189.32, and Liberty Mutual covers the fidelity bond which insures all the Association funds for a premium of $462.94. The total insurance premium for the year is $49, 853.87.  Dave reported that if a homeowner has high-impact windows or gets hurricane shutters on their units, they are encouraged to get a personal wind mitigation inspection to assist with lowering their personal insurance costs. 

Approval of Prior Minutes: 
Betty motioned to approve the minutes of the Board meeting held November 15, 2013, and the February 28, 2014 Board Organizational meeting as written and posted on the web site. Dennis seconded, all in favor.

Financial Report
Manager Michelle Davis reported that as of February 28, 2014, the Association has $37,653 in the operating account, with $6,000 in prepaid assessments, leaving an actual total of $31,653 in operating funds. There is a total of $248,305 in the various reserve accounts. We show a total of $43,070 in outstanding dues from residents as of the end of last month. The Association has foreclosed on and holds title to four units. We have rented three of them so we are collecting rent to lower the balances due before the banks foreclose on the units. Unit 255 has seen no movement on the bank’s foreclosure, so we have asked the Association attorney to order a case management conference. Units 238 and 122 are behind in their payments and unwilling to make payment arrangements with us. Therefore, Dennis made the motion to send these two units to the attorney to start the collection and foreclosure process.  Betty seconded, all in favor. 

Through the first two months of the year, the Association is $653 over budget, due to legal fees being higher than anticipated. 


  • Exterior Spigot Clarification: Evelyn reported that David found an e-mailed opinion letter from attorney Paul Wean sent on July 17, 2006 regarding spigots. It states that the association is responsible for outside spigots, even though they are individually metered. She will have John look into repairing those that are of concern. 
  • Building 1775, unit 206 back porch repair: Evelyn reported that contractor Paul Layton will complete the repairs on this back porch at a cost of under $1,000. It was noted that the owner ignored the rules about not allowing carpet on the patios. His carpet held moisture on the deck, causing it to rot. Betty motioned to repair the deck with reserve funds, Brenda seconded, all in favor. 
  • Camera at pool and clubhouse: Dennis reported that he saw some vagrants using the Association shower. He requested that cameras be looked into for safety and security. Evelyn reported that she and John did some internet research and found a camera with a sim card which could record for a cost of $150. She priced a DVR online at $120. More information will be gathered and the Board asked management to obtain professional bids to install an infra-red camera system also. This topic was tabled for the next meeting. 
  • Painting of Buildings 1695, 1715, and 1725:  Bids are being obtained, but this issue was tabled until all bids are received.  
  • Roofs of Buildings 1695, 1725, 1785, and 1795: Bids are being obtained, but this issue was tabled until all bids are received. As was noted last month, Alron Construction inspected all the roofs and wrote a detailed report that showed the need for only minor repairs. Bids will be obtained for the needed repairs, and bids will also be obtained for new roofs, even though this report shows that none are in need of immediate replacement.  
  • Amendment Language Discussion: Lynn reported that the attorney did not feel any of the amendments voted on at the Annual Meeting had passed, based on the wording in the declaration.  Evelyn motioned to have the attorney write up a new amendment to be voted on; changing the documents from requiring the affirmative vote of at least 2/3 of all members to requiring at least 2/3 of those members who vote to be sufficient to amend the documents. This would mean that those who care to participate and vote will make the decisions for the community. Evelyn’s motion included making this a “mail away” vote, allowing owners 90 days to respond, with the final meeting in July. Dennis seconded, all were in favor. 
  • Office Computer and Printer: The association office has no computer and no color printer. Board members stated that they have to go home and use their equipment for Board materials. Evelyn made the motion to not exceed the amount of $900 for a new desktop computer, monitor, and color printer/fax/scanner, along with a one-year subscription to Office 365 software.  Lynn agreed to purchase the system and install it in the office. Dennis seconded, all in favor. 
  • Gutter and Downspouts: There was discussion on the need for gutters, but the Board felt they need an attorney opinion on whether this was considered maintenance or if it would have to go to the membership for an owner vote for alteration of common elements. This was tabled for further discussion. 
Owner Input
An owner commented that the south east fence is in poor condition and needs to be repaired or replaced. Board members will try to find the owner of the adjacent land and ask that they repair or replace the fence for safety reasons and to improve the look of the area. 

Set Next Meeting Date: The next meeting date is set for April 25, 2014 at 12:00 pm. 

There being no further business to discuss, the meeting adjourned at 2:50 pm.

Lynn Hiott, LCAM and Michelle Davis, CMCA, AMS, LCAM 
Reconcilable Differences Management