Back to Pelican Point Home Page

THURSDAY, November 17, 2016

The meeting began at 1:00 pm with the pledge of allegiance.

Establish Quorum of Board Members: Board members present were President Randy Malecha, VP Glen Farnum came in at 1:30pm, Treasurer Kathy Mocko, and Secretary Debbie Stanley. Director Jeanette Cullen could not attend. Michelle Davis and Ted Manna attended from Reconcilable Differences and over 50 owners were present.

Approve Minutes from Last Board Meeting:  Debbie motioned to approve the September 22, 2016 minutes as written and posted. Kathy Mocko seconded, all in favor.

Financial Report: Michelle reported that as of October 31, 2016, the Association has $85,051 in the Operating accounts, and $444,908 in the various reserve accounts. Unit owners’ overdue accounts are at $30,318, but it consists of one unit in litigation, 3 units that missed a monthly payment, and 20 units that had not yet paid their pool special assessment. They had all been billed a $25 late fee, but some requested a waiver because they did not remember receiving the notice. Kathy motioned to waive the late fee for those who immediately paid the $200 after the reminder. Randy said those who have still not paid by November 20th will have to pay the late fee, since it was due October 15th and the 2nd reminder notice went out a month ago. Debbie seconded, all in favor.  
For the ten months of this year, the Association is $1,825 UNDER budget. 
One unit owner has passed away with no heirs coming forward. A lien will be filed, and if still no heirs are found, it can be foreclosed and sold.

Discussion and Board Approval of 2017 Budget: No owners had questions. Kathy motioned to accept the proposed budget for 2017, at no increase, with the monthly fee staying at $250.00 per unit. Debbie seconded, all in favor.

Update on Camera Installations: Randy stated that we have had cameras installed for over a year. In July 2015, 91 owners voted to allow cameras for “vandalism and safety issues”. In the last few months, we have had unapproved visitors using the pool for illegal activities. The police are involved and having camera proof for the officers will help. There have also been legal issues at other local pools and having the video proof kept an association from being liable for a child drowning.
A resident spoke on behalf of another who felt adding cameras at the pool are an invasion of privacy. He also felt that anyone who asked could see the video. It was noted that no one has time to watch a video for fun. When an issue arises, we need to know almost exactly when it happened, because finding it on the DVR is slow and time consuming. The consensus of the people attending this meeting was that a large majority are in favor of the cameras being placed on common property to watch common amenities for the safety of the residents. It was also noted that the DVR is in a locked room and is over-written every month.

Update on Pool: Randy said the pool is almost ready to open. The handrail had to be re-ordered and we cannot obtain approval to open the pool until that is installed.

Update on B403 Lawsuit: Michelle stated that in late August, the judge gave the owner 30 days to install new sliders. When he refused, the association attorney told the Board they must install the sliders and then foreclose for non-payment of the maintenance done. We obtained two bids, but then the hurricane hit, and now all contractors are very busy. The board motioned to contract with Brevard Aluminum for the work, and Ted will make sure proper notice is posted on the door of B403 to allow entrance for the final measuring in the near future.

Update on Hurricane Damage & Repairs: Randy stated that early on Saturday, Oct 8th, he and his wife inspected all except 3 units to check for damage. He then contacted the roofer who had originally installed the roofs. The roofer, AJ, came out the same day. Early Monday, they were back with 8 men to protect the building from further damage. That cost $11K. The insurance adjuster came out that week and said with more than 25% of the roof damaged, we must replace. The contract was approved by a majority of the board and signed. Tecta Roofing started the ordering and permitting process, but an owner in “C” building tried to stop the process and caused problems, so Tecta would not order materials until the city approved. On November 3, the permit was issued and the materials were ordered.  They started the job on November 9th. 
In the meantime, Randy took the adjuster and then a drywall contractor into all units that had been damaged. The association is responsible for removing and replacing wet drywall. Texture and paint are owner responsibilities, along with flooring, cabinets and personal items, all of which are covered under the personal H06 condo policy that owners should have.

Some air conditioners were also damaged, so Randy met with IC Services and all were serviced and are now in working order. Some that fell over are beyond their life expectancies, but in a catastrophe, Florida statute says the association must cover replacement. The board felt that it is fair to offer to pay half the cost of replacement for those that were damaged in the hurricane, if the owner pays the other half and the work is completed while the roof is still being replaced and their lift equipment is onsite. Because of the high deductible, all the owners will be covering a lot of the costs associated with the damages, so paying half of up to 4 units seems the fairest. Randy motioned to have the Association pay half the cost of up to 4 air conditioner replacements. Kathy seconded, all in favor.

Regarding drywall, once the roof work is complete, the association will have the drywall replaced. If any owners want to do the work or have it done before that time, they are welcome to do that and we can reimburse after funds are received, but we will only reimburse for the square footage the insurance company noted as needing replacement. If owners want more areas removed and replaced, they will have to cover that cost.

Today, some board members met with a public adjuster team because weeks after the hurricane, it was noticed that the 4th floor ceilings pull away from the walls in the daytime, and then close back down at night. One unit also had floor tile lift and buckle. This company makes sure all hidden damage is found and paid for by the insurance company, and takes 10% of only the proceeds actually received, not including the large deductible that all associations have after hurricanes. They believe there is a structural issue as well as roof and drywall damage and an engineering inspection is needed.  Kathy motioned to hire the public adjuster and structural engineer as long as there is no cost to the association except the 10% of any money re-couped. Ted noted that once hired, the company will need access to all units to do their detailed inspections. Debbie seconded, all in favor. They will also inspect all the other buildings, just to be sure.
An owner asked about the issue that units have if they are below a unit that hasn’t added an enclosure. Because the building was built with only porches, we cannot require owners to add an enclosure. Especially now, the city requires impact glass, so it will cost $9k now, where it used to cost $3k for an enclosure.

Roofer Dave Morrison attended to discuss the Notice to Owner, which will be mailed and sent by certified mail to all owners in “A” building. It is a requirement in Florida Statutes 713.06 that the contractor notify every owner that if the contract is not paid, they have a right to go after the individual owners for payment. After payment is received by Tecta, they will submit a final release of lien when the final 10% is paid to the contractor, after the work is complete and accepted.

Discuss Special Assessment for Hurricane Deductible: As was discussed, the association has a 5% per building value hurricane deductible. The “A” building is valued at $4,030,905. Therefore, the deductible on just that building is $201,545, or $1,539 per unit. There was also other damage that won’t be covered, such as fence repair, a concrete light pole in the parking lot (over $4K for a replacement), many exit signs, and tree removal. 

Florida Statute no longer requires that an owner have insurance, but for those who do, there is a requirement that all policies they have “Loss Assessment Coverage” of at least $2,000. This coverage reimburses the owner for up to the maximum policy coverage, less a deductible, when their association has to have a Special Assessment for catastrophic damage, such as in a hurricane. All owners will share evenly in the costs.

To date, we have $376,507 in expenses. There will be more costs. We expect to receive about $175K from insurance minimum.  A rough estimate is that the special assessment will be about $1,700 per unit.
People asked about using seawall funds towards this cost. Owners would have to vote on that, and it would have to be paid back, so wasn’t really an option.

Due to the need to mail out the agenda for the Special Assessment at least 14 days in advance, the meeting will be held Friday, December 16th at 1pm.

Final Results of Fire Sprinkler Opt-Out Vote: Michelle stated that in August, a written consent form was mailed or hand delivered to all unit owners to vote on “Opting Out” of Retrofitting the Association with Fire Sprinklers. The final totals were 112 votes of yes to Opting Out, and 4 votes to retrofit and add fire sprinklers. The majority of owner votes opted out, so these results will be mailed to the attorney. He will write up the form the be signed and notarized, then recorded with the county and submitted to the state. It will also be posted on the website. Any future buyers have to be given this form.

Set Annual Meeting: The meeting will be held at the Titusville Library on Wednesday, January 25th at 1:00 pm. Notice of that meeting and a request for volunteer board members will be mailed or hand delivered by November 23rd.  

Set Next Meeting: The Special Assessment meeting will be held on Friday, December 16th at 1pm.

Adjournment: Kathy motioned to adjourn the meeting at 2:15. Debbie seconded, all in favor. 

Respectfully Submitted,
Michelle Davis
Michelle Davis, Community Association Manager
Reconcilable Differences, Inc.