DRAFT DRAFT
DRAFT DRAFT
Minutes
Annual Meeting
Association President Robert Stuart called the meeting to order.
It was determined that a quorum was present, i.e, 115 units were represented either in person or by proxy.
Minutes
The minutes of the 2006 Annual meeting including the 5 options (attached) concerning how to pay off the SBA loan were offered for approval. William Hewitt, Unit 353 moved their approval. Julius Cannon unit 371 seconded the motion. They were approved by voice vote without dissent.
Audit Report
The audit report was given by Matt Taylor of Grant, Sander and Taylor. It was unqualified. The Association had $678,000 on hand at the end of 2006. He pointed out that there was a significant increase in the cost of insurance. He also reported that the Association per its reserve study had a reserve funding deficit of $427,000.
Jim Allan in response to a question estimated that it would take $585,000 to paint and waterproof the property. He pointed out that we needed to reset the remaining life of various components set forth in the audit report.
President’s Report
Association President Stuart reported that last year’s meeting extensively debated how long the Association should take to pay off the $1.5 million SBA loan. The membership voted at that 2006 meeting to pay off the loan over its full 20 year term. As a result, Mr. Stuart pointed out to the membership that some of the money collected as the result of the special assessment related to the SBA loan was used for other purposes necessary for the maintenance of the complex. This included paying for painting and waterproofing. As a result, no additional special assessment was necessary. No one in the membership objected to the use of funds in this fashion even though they were originally special assessed to pay the SBA loan. Mr. Stuart pointed out the drainage work on the South end of the building was completed and the drainage problem appeared solved. He stated that work on the North end of the building was yet to be completed. Mr. Stuart also reported that as to painting of the building that was 70% complete. He also reported on the difficulties involved in building the Sugar Shack because of the permits that had to be granted, but those difficulties had been overcome and the Sugar Shack was now open.
Mr. Stuart reported on the three new grills that were installed and were on a concrete pad. He stated that they were very popular and well used. There were questions about cleaning and maintenance. He stated that that had not been a problem. Mr. Stuart stated that the Association had switched to LA Pools for maintenance.
There was a discussion of what color unit doors should be painted as part of building painting. It was thought that a medium blue was picked before hurricane Ivan though no one had any knowledge of precisely what color had been chosen at the time of the meeting.
Mr. Stuart reported that the painting of the build was expected to last the next 6 or 7 years. He also reported that the Association may have to replace all fire doors because of the rain coming in the halls.
There was a question about replacing doors for the storage sheds on unit balconies. These are owned by the condominium and Mr. Stuart reported there was a list of doors to be replaced because of rust and corrosion.
There was an extensive discussion of plumbing leaks that are the result of the use of polybutylene pipes. It was said that some owner’s insurance companies were not honoring claims because of the use of this pipe. One unit had $3500 in damage caused by leaks. Unit 121 wanted this brought up at the meeting. There was a discussion of whether the Association might be able to get a group rate to fix the piping. Unit 275 has had numerous leak problems that the insurance company does not want to cover.
Tony Black, unit 379, thought the Association bylaws say if there are consistent leaks from the unit above which the owner of that unit does not fix, the Association Board had the authority to fix the leaks and assess the owner. Mr. Stuart stated that the Board had not done this in the past though he was willing to testify in any lawsuit brought to recoup costs incurred because a unit owner had not repaired leaks and those leaks had caused damage to adjacent units.
Mr. Black, unit 379, moved that the Association require that owners making repairs in excess of $250 be required to used a licensed contractor, plumber, etc.
The motion was seconded by Luke Harvilchuck, unit 275.
The discussion revolved around whether it was against the law to make assessments and rules about what can be done regarding repairs on the interior of units. It was pointed out that one person does good work at a relatively inexpensive cost and he would not be allowed to do this work if the motion passed.
Mr. Black, unit 379, moved to table his motion pending a legal opinion on how it should be worded. This was seconded and passed.
The owner from Unit 353 did not want the Association to drop the issue of getting a group rate to fix the leaks caused by the polybutylene piping.
Pamela Southworth, a former on-site manager, pointed out that there had been an insurance settlement while she was there for owners who could prove they had leaks and this had resulted in several units being repiped. Tyler Glenn had a memo from that time listing the units that had piping replaced. This memo is attached. He read off a list of 29 qualified units that had been re-plumed in 2002 as a result of Cox vs. Shell Oil class action settlement. Those units were 101, 113, 117, 132, 136, 139, 141, 160, 161, 177, 202, 204, 205, 249, 261, 263, 328, 331, 334, 338, 341, 342, 343, 345E, 346, 348, 356, 362, 369.
Delinquent accounts were also discussed. It was pointed out that under
Tony Black, unit 379, commended Elizabeth Kulman, the on-site manager, for the job she had done.
There was a discussion of the sprinkler system that was partially installed prior to hurricane Ivan but never finished. This is the subject of a lawsuit by the Association.
New Business
Four board positions were up for election. The incumbents, Robert Stuart, Dave Dyer, Don Gantt and Allen Summerlin all agreed to run for reelection to 2 year terms. No nominations for these positions had been received prior to the meeting and there were no nominations from the floor. William Kilgore, unit 371 that the incumbents be election by acclamation. This was seconded by Julius Cannon, unit 354. All were reelected without dissent.
Don Gantt reported the secondary insurance on the complex had been cancelled because an inspection disclosed that the complex had wooden rafters. However the primary insurance amounting to $6 million stayed in effect. Whitehaven Insurance found a 1 year secondary insurance policy that actually was cheaper than the insurance that was cancelled. However the secondary and primary insurance policies now do not come up for renewal at the same time. The primary insurance needs to be renewed at the end of the year. Dave Dyer is handling this issue and trying to get the two policies back in sync.
The complex is insured for is insured for $14 million, ($5 million with the primary carrier, $9.6 million with the excess carrier). We are insured for 100% of the replacement cost. As to renewal, two quotes expected by end of November and we are looking for a 20 to 25% reduction in the rates if there are no storms. This could amount to $80,000 or $90,000. Bylaws indicate we have an all-inclusive policy.
There was a discussion on how to keep insurance costs down by seeking additional bids.
No dues increase was proposed. However, insurance costs will now be completely off budget and funded by a special assessment. William Kilgore, unit 354, made a motion that insurance costs be covered by a special assessment rather than an increase in dues. This was seconded by Julius Cannon, unit 371. It passed by voice vote. There was no dissent.
Allen Summerlin presented the 2008 budget with comments on various line items. It was pointed out that complex maintenance came to approximately $5300 a month not the $800 a month budgeted in 2006. Julius Cannon, unit 371, moved to accept the budget. It was seconded by William Hewitt, unit 353. It passed by voice vote. There was no dissent.
As to the SBA loan, it was reported that while all payments had been timely made on the SBA loan they just covered interest. It was expected that in January 2008, principle would start to be paid down.
Pamela Southworth pointed out the Sugar Shack
lease entered
into in 2007 is good for
Julius Cannon, unit 371, moved to accept the budget. It was seconded by William Hewitt, unit 353. It passed by voice vote. There was no dissent.
It was moved that any excess funds not expended in 2007 be transferred to reserves. Julius Cannon, unit 371 so moved and William Hewitt, unit 353 seconded the motion. It passed by voice vote. There was no dissent.
There was a question about Elizabeth Kulman’s on-site manager contract by Tony Black, unit 379. There was a discussion of some problems but Mr. Stuart stated this was a personnel issue and a Board responsibility.
The next annual meeting will be the 1st
Saturday
in October, 2008, i.e,
There was a motion to adjourn that was duly seconded and passed by voice vote.
There was a brief Board meeting following the annual meeting where Robert Stuart was reelected as President, Tyler Glenn was reelected as Vice President, Don Gantt was reelected as Treasurer, and Andy Strojny was reelected as Secretary.