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Minutes
Annual Meeting
Sugar Beach Condominium Association
October 4, 2008
Association President Robert Stuart called the meeting to order at 10:00 am.
It was determined that a quorum was present.
Board member Don Gantt was not present do to his wife’s illness.
Minutes
The minutes of the 2007 Annual meeting were offered for approval. They were approved by voice vote without dissent.
Audit Report
The audit report was given by Leah Meador of Grant, Sanders and Taylor. The Association had $352,000) on hand in cash and CD’s at the end of 2007. He stated that the Association maintained bank account balances which exceeded FDIC insurance coverage by some $212,000 at Regions Bank but it currently was not a problem. He stated 4 units had been foreclosed upon and some $55,000 had been written off as an uncollectible debt. He stated prepaid insurance costs were down some $200,000. He also stated this was the last year Grant, Sanders, and Taylor would be doing the audit to avoid any conflict since they also kept the accounts.
President’s Report
Association President Stuart reported that the building was looking good and that there was an active Board. He said the good looks were the result of doing continual maintenance rather than any big project. Much original equipment in the complex had been replaced e.g., balcony doors, fire doors, etc. He pointed out that we had gotten a $10,500 bid for landscaping, but would wait until after the storm season to see what addition landscaping should be done. He pointed out that the new BBQ’s are popular with the owners and guests. As a result of work done on the elevators they are up to code. The pools need a cutoff for the pool pumps to meet new drain requirements and the kiddy pool needs to be enclosed. The bid to overhaul the tennis court was $18,500, so it was decided to just fix the cracks and fix faulty caulk. C. Sharp is to do this work. Bids are going to be sought to paint the tennis court.
Mr. Stuart pointed out that only owners of record can have pets in the complex and that pets are not allowed on the beach. He pointed out posters were available to put on unit owner’s front doors to alert people that pets are in the unit.
Mr. Stuart stated there was a need to draft new by-laws and adopt them in the upcoming year. He pointed out that everyone’s involvement was needed.
President Stuart reported that insurance prices are dropping approximately 10% according to Whitehaven Insurance. However, Sugar Beach rates were highbecause it had wood rafters.
Ed Brandon, unit 330, asked if the Board could appeal to owners who rent to keep their units clean. Mr. Stuart pointed out that the Board was only responsible for the complex from the front door out. He pointed out that information about Sugar Beach was available on the internet at www.sugarbeachcondo.org.
There was a question about leaks in the units. Mr. Stuart pointed out that owners were responsible for their own damage unless the person above you and the source of the leak was negligent.
Bob Kincaid, unit 275, asked if we could come up with bids to replace the bad polybutylene pipes. Jim Allen said he had contacted a company in North Carolina however he said the layout of the pipes is not the same in all units. He pointed out if owners are going to work on their units, replacing bad pipes is one of the first items to fix. There was a discussion about the polybutylene pipe problem.
There was a question about whether the Board can mandate that owners fix bad pipes. Mr. Stuart said he would need to check with the Association attorney.
There was a question about whether the Board could assess owners to fix bad pipes in their units. Mr. Stuart said no.
Rene Lauauf, unit 358, thought that the Board had approved venting unit dryers. Mr. Stuart said It had not and probably was not feasible to do so.
Old Business
There was discussion
about seeking methods to replace
polybutylene pipe in owners units. Bob Kincaid, unit 275 agreed
to chair a committee to examine
alternatives. Tyler Glenn, units 161, 279,
345e, and 370 agreed to assist him in his efforts.
Mr. Stuart pointed out that the new drainage system on the north and south sides of the complex worked well.
Jim Allen reported on the recoating of the pool decks with a new product to reduce splintering and it was working well. A second coat would be applied in the fall.
It was reported that one partnership of owners had over $80,000 in delinquencies owned to the Association and rents from their units had been attached. Other legal action was also being explored.
New Business
Elizabeth Kulman, the Sugar Beach manager, reported that Network Neighborhood was now in the complex and wifi (wireless internet) was available for a fee.
Dave Dyar, unit 128, discussed the proposed budget and stated that no dues increase was proposed. He stated there would be a special assessment for insurance.
He discussed delinquent accounts and collection efforts. Mr. Dyer also stated we need to insure that capital expenses are charged to the proper reserve account. He stated it appeared that revenues and expenses should pretty well match up in the next year.
Bob Merritt, unit 218, asked if the next assessment was only for insurance. Mr. Stuart said no, it would also include assessment to cover part of the cost of repainting and resealing the building.
Mr. Dyar discussed a tax provision he discovered that allowed some expenditures to be allocated against tax liabilities. As a result, the Association’s tax liability went from $4500 t0 $1500. He said he would amend previous year tax returns.
Mr. Stuart said an $117,000 capital improvement assessment would be added to the insurance assessment. That would cover some but not all of the cost of repainting and resealing the building. The remainder of the cost, as reported at the last annual meeting, came from money collected to pay the SBA assessment.
Jim Allen and Elizabeth Kulman reported on the balcony door replacement and the fact that the center pool appears to have stopped leaking.
Mr. Yarbro, unit 230, moved to approve the budget, and Mr. Hewitt, unit 353 seconded the motion. It was approved by voice vote without dissent.
Mr. Ortner, unit 131, moved that any surplus funds be carried forward to the next year. Mr. Boes, unit 157, seconded the motion. It was approved by voice vote without dissent.
It was announced that the Board had appointed Valerie McKoon, units 142 and 224, to fill the unexpired term of Alan Summerlin, who resigned due to the sale of his unit.
Three Board positions were up for election. Incumbents Glenn Owen, unit 117, and Andy Strojny, units 243 and 348, agreed to run for reelection. Also nominated were Susan Knight, unit 251; and Art Fry, unit 347. Glenn Owen, Andy Strojny, and Susan Knight were elected Sugar Beach Manager Elizabeth Kulman reported on the need for 2 keys for each storage unit, the available of pet posters for owners staying with pets, and the issuance of new Sugar Beach parking stickers.
It was duly moved and seconded that any excess funds not expended in 2008 be transferred to reserves. It passed by voice vote. There was no dissent.
Dave Dyar said there was a need to do something about the SBA loan. Mr. Brannan, unit 330, stated that the owners had decided to pay it over its 30 year term. There was a discussion of the SBA loan and whether it should be paid earlier.
The next annual meeting will be the 1st Saturday in October, 2009, i.e., October 3, 2009.
There was a motion to adjourn that was duly seconded and passed by voice vote without dissent.