VILLAGE SQUARE OF TITUSVILLE CONDOMINIUM ASSOCIATION, INC
MEMBERS’ BUDGET MEETING and the
BOARD OF DIRECTORS’ BUDGET MEETING held
Wednesday, NOVEMBER 30, 2011
CALL MEETING TO ORDER: The meeting was called to order at 6:30 pm in the clubhouse. Fifteen owners attended.
PRESIDENT’S MESSAGE: Evelyn stated that a group of five owners sent out a letter to the owners with a budget of their own. While this board does not agree with some of the life expectancies and replacement costs shown on the rogue budget, we were able to obtain costs for some services that were less than expected, so have, tonight, brought in a revised budget showing “fully-funded reserves” and still having a monthly fee of $200.00 per unit. A copy of that new budget was handed to all in attendance.
ESTABLISH QUORUM OF MEMBERS: A quorum was not met. Only 16 proxies were returned, but the meeting continued for informational purposes.
MEMBER QUESTIONS ABOUT PROPOSED BUDGET: Some residents asked questions about the changes. Some asked to see actual bills and those will be provided. Some questions modified the budget a bit (i.e. it was confirmed that trash removal will stay at $1,041.18 until September 2012) so line items will have some small changes, but the monthly fee will stay at $200.00 per month and a final revised budget will be mailed to all owners. The votes to move 3 reserve lines to the generic “miscellaneous building components” line did not obtain enough votes, so these line items stay as is.
SPEAKER - INSURANCE AGENT:
He stated that the hurricane deductible is 3% of the value of each building, per calendar year. This means that if we have damage to a building once, and it doesn’t meet the deductible, but then more damage occurs in a second incident, the whole year’s expenses are part of the deductible.
The 3% deductible is only for named hurricanes. An un-named storm, or wind, hail, fire or tornado would have a $5K deductible per occurrence. He did state that gates and fences are not included in the policy
General Liability is for common areas, including pool area rec facilities if someone were to get hurt. Village Square has a $1 million per occurrence, and $2 million aggregate per year. An umbrella policy is purchased to go higher than that. It covers negligence, such as storage of fuel, etc, at $100K per year. It covers any Board member who volunteers to use their own vehicle to run errands with a zero deductible
The Directors & Officers
policy has a $1,000 deductible, also includes the property manager, and
is required for any “negligence” situation where a director might be sued
for a decision they make.
Umbrella Policy: This is a $5 million policy, so the Association has $6 million dollars in coverage for liability and director decisions. This policy is used after the original policies are exhausted. An umbrella policy of $10 million would only cost a few hundred dollars more per year, and Dave recommends this.
The Fidelity Bond or Crime bond: Required by statute to cover all reserves and operating funds held, at any one time.
“If Any” Worker’s Comp policy: Vendors who may have a lapsed worker’s comp policy and have an employee who gets hurt will be covered by this $650 or so per year policy protects the Association from damage claims by these contractors and also covers volunteers (for things like weekend clean up parties). This policy provides coverage if the Association has done “due diligence” in asking for proof of insurance from all vendors. All vendors need to provide a worker’s compensation certificate of insurance, or in some cases, a certificate of exemption for single self- employed contractors. These officers of a company can be exempt, but not their employees. The business person applies for this certificate from the state of Florida, at a nominal fee. If a resident has a non-insured contractor who gets hurt on the property and tries to sue the Association, it would cover that scenario also.
Questions from the Audience:
From “drywall out” to the exterior is the association’s responsibility.
HVAC systems: Again, for perils like fire, lightening, hurricanes, or a car runs into it, the Association’s policy would cover it, less the deductible which can be billed to the owner, and very importantly, owners are responsible to maintain these systems. The Association’s deductible is $5,000.
Code Upgrades: Insurance will pay to put the same window in, but now impact resistant windows are available, which cost more. Owners can possibly be allowed to pay the difference and get a better window, which is an option, but with items such as air conditioning units, where the older units are not compatible with the new non-freon types, if a compressor must be replaced and is not compatible with the interior condenser, a whole new unit would be needed. Dave said the Florida Statutes require the Association to cover up to $10K of upgrades per year.
A resident said the documents say the owner is responsible for these items. Dave said the statutes supersede the governing documents, and this is maintenance versus insurance issue. Things like weather stripping are an owner responsibility.
The statute has changed and the reporting period for a claim is now only 14 days. For things like mold and mildew issues, you cannot come back in the winter and file a claim for damages while you were gone. You need to have a friend check your unit on a regular basis.
Loss assessment policy: The owners are responsible to have their own “HO6” policy and the statute requires all policies to have this coverage, at a minimum $2,000 per occurrence. For any catastrophic “event” – fire, storm, lightning, etc, and for any code upgrades due to a peril – where a special assessment is needed, this coverage will pay the assessment, less a deductible.
Dave stated that the Association’s policy with American Coastal Insurance went up even though there were no hurricanes last year. He is trying to keep us out of being insured by Citizen’s, because as a condo if there are major losses, Citizens can assess up to 45% policy premium as a special assessment, and a FIGA Assessment of 1.5 to 2% is being added to help pay for the FL CAT fund, since there is not enough re-insurance coverage. Dave said he warned his Associations a year ago to fund more to their insurance lines, because the policies are going up 10% to 25%.
VOTING RESULTS TO REMOVE
STUCCO LINE, FENCE LINE AND PLUMBING LINES FROM RESERVES AND ADD ALL OF
THESE TO “MISCELLANEOUS BUILDING COMPONENTS” RESERVE LINE:
VOTING RESULTS TO FULLY FUND OR PARTIALLY FUND RESERVES FOR FISCAL YEAR 2012: Again, due to a non-quorum of owners, a partially-funded budget did not pass, but the Board was able to modify their original budget to keep the monthly fee at $200 per month and fully fund the reserves for 2012.
ADJOURN MEMBERS’ MEETING:
There being no further member business, the meeting adjourned at 7:42 pm.
Board Meeting Called to Order
APPROVAL OF PRIOR MEETING MINUTES: Betty motioned to approve the minutes of the October 12th meeting as written, with the spelling change of Cardone instead of Calderone. Vern seconded all in favor.
Michelle stated that through October 30th, the Operating account has $28,228, and the Reserve account has a total of $198,903. There is a total of $47,813 in receivables, and two more units were sent to the attorney for initial collection action, since they are 90 days overdue. The attorney sends a letter requesting payment in 30 days or a lien will be filed on the unit.
The Association is $948.00 over budget, which is very close and with all that was accomplished this year, a very healthy statement. A resident asked if they could get a copy of the Balance Sheet. All owners are entitled to one if requested, for the cost of copying.
DISCUSSION & RATIFICATION OF MEMBERS’ VOTE ABOVE: As noted, there were not enough member votes to support a “less than fully funded” budget. A resident asked about the reserve analysis supporting the new budget. Michelle stated that she would include that in the final budget mailing.
BOARD APPROVAL OF 2012 BUDGET:
SATELLITE DISH ILLEGALLY INSTALLED: A dish was installed behind unit #139 and the installer and the tenant were told this was not allowed, but ignored the request to remove it. A note was left on the door to remove it within 24 hours or it would be removed from the common grounds. We were told it would be removed the next day and it still was not, so the handyman moved it inside the back porch, where it still remains. It was reiterated that satellite dishes are not prohibited, but MUST be kept on the patios, which are a limited common element, and cannot be attached to the building or grounds.
FIRE ON SIDEWALK: It was noted that the resident at #235 started a fire in a charcoal grill on the patio, added too much lighter fluid, got in her car and went to the store, and the flame had to be put out by neighboring residents. The sidewalks are not to be used for grilling and grills are not to be left alone, nor within 15 feet of any building.
INSTALLATION OF HARDIE BOARD
ON CLUBHOUSE: Vern stated that two bids were received and he is awaiting
a third before making the final decision. The quotes are $2200 and $3800.
HEADER REPAIR AT BUILDING 1745, UNIT #219: Vern stated that the back porch leaked down into the unit below. Maintenance man removed the carpet (which should not have been installed in the first place), but it continued to leak onto 119. He caulked and this was still not adequate, so then removed the hardiboard, and it appears that the new boards were put up over a large gap that was never filled, so rain would come through the screen, sit there and then drip below. John filled the gap with concrete patch, which should help. Vern then looked at the railing, which moved about 1.5 inches and is not holding, so John took a row of siding off and found rotting plywood and the outer layer of header rotting. We may have to cut the concrete back and replace the plywood that is rotting.
A resident attending tonight felt that her unit might have the same issue, so maintenance man and Vern will inspect that on Friday. Evelyn said the big issue is to remove all CARPET from all upper patio floors because the carpet holds the water in and starts the rotting process. Vern agreed that he does see more of this happening, due to age of buildings, the original architecture, and the non-compliant carpetings. He will obtain bids from licensed contractors for these repairs.
CONCRETE ROAD REPAIR BIDS: We received a bid from Mike’s Masonry for a total of $4,810 to patch all the cracked concrete and even take out many areas and re-pour them. This bid was just received, so will be discussed later.
SET NEXT MEETING: The Annual Meeting will be held on Wednesday, January 18, 2012.
Michelle Davis, CMCA, AMS,