|Minutes of the
Whitley Bay Condominium Association,
WEDNESDAY, JANUARY 20, 2016
Call to Order: Stan
Bowers called the meeting to order at 7:04 pm. Nine owners attended.
Establish Quorum of Directors:
Board members in attendance: President Stan Bowers, VP Larry Ramsay, Treasurer
Bob Schrader, Secretary Terry Yates, and Director Richard Isom. Michelle
Davis and Lynn Hiott represented Reconcilable Differences.
Approval of Minutes from
November 18, 2015 meeting minutes to approve the 2016 budget: Larry
motioned to approve these minutes as written and posted on the website.
Richard seconded, all in favor. Larry asked about the enclosure that was
approved in front of the maintenance area. Stan replied that due to weather
delays and holiday decorations needing to be removed, they are working
on getting the enclosure started soon. Larry also asked if there have been
any thank youís received to date from the Christmas bonuses. Only Reconcilable
Differences returned a thank you to the Board.
Bob stated that he was just in receipt of the December financials, but
November was on budget, so he feels that everything is right on budget
Update on Painting of
Building-Contractor Choice: Stan reported that there was a committee
formed in November with Don Verner, Stan, Mike Angel, and Richard Isom.
There were four bids received and Anchor was the lowest. Bids received
were $235K, 250K, 227K, 217K, and 158K. Anchor met with the committee to
walk the property, and then revised their bid to include 2 coats of paint.
Some of the items that were removed from the bid were the east side of
the building under the 3rd floor, the walkway walls, and limited common
elements, such as exterior personal balconies. Michelle reported that with
these limited common elements, the Board has a right to supply the paint
and have owners supply their own labor to get these areas done. Larry asked
about a performance bond. Anchor is able to obtain one, but it would add
8% to the contract cost, which is a lot of money. Several of the committee
members felt that Anchor Painting Company has sufficient funds in their
operating accounts to cover the contract price, should problems arise.
Anchor also agreed to allow a ten percent withholding during the painting
contract, to be paid after all work is completed and approved. An owner
asked how they were planning on painting the buildings and Stan reported
that they would be rappelling from the roofs to paint and this resulted
in their bid prices being lower than the other companies who had swing
stages or lifts included in their costs. Anchor has stated that they will
repair the bubbling paint areas, caulk the leaking areas and will paint
the pool walkway at no extra cost. They will also be rolling the buildings
and not spray painting them. According to the Sherwin Williams specs that
were written, there is a 7 year warranty based upon paint defects through
Sherwin Williams, and Anchor is warranting their labor up to 8 years with
them returning to the property once a year and inspecting the buildings.
Bob voiced a concern about why there was a 35% increase from Anchorís original
bid of $116,745, resulting in an additional $41,980 difference. It was
discovered that Anchor revised their bid to include two coats of paint
on the buildings versus one coat. A discussion ensued over the building
needing one or two coats. A resident stated that with this 150 foot high
building, the two coat system would help the longevity of the waterproofing
paint. Larry motioned to add the additional items that were approved but
only wanted to pay for one coat of paint. Bob seconded. Larry, Bob and
Richard approved that motion. Terry and Stan opposed stating that the building
should have two coats of paint. Majority won, and Anchor will be asked
for another revision to only have one coat of paint.
Approve the use of Reserves
to cover part of the cost of painting: Bob motioned to use most of
the Painting Reserves, $60,000, and then use a portion of the Miscellaneous
Building Component Reserves to bring the owner assessments down to between
$600 and $700 per suite. Larry seconded and all were in favor. Bob made
a motion to send out the special assessment information with the 2nd notice
of Annual Meeting to the owners, and then this assessment could be approved
at the Annual Meeting. Larry seconded this motion, and all were in favor.
Michelle agreed to include the special assessment information with the
2nd notice of annual meeting that will be emailed and mailed out before
the end of January.
Agent and Premium Cost: Larry reported that for the past 9 years we have
been with A Professional Insurance in Melbourne and now they have merged
with Regions Insurance, which has offices in 10 states. As of December
1, 2015, A Professional became Regions Insurance. They are still in Melbourne
with the same employees. We have a new agent, Gillian Justice. We had dealt
with Bill Freeman for 8 years, but he died in February 2015. Premium
Cost: For the policy year 1/15/16-1/15/17, total premiums come to $50,665.00.
This is approximately $8600 under budget. The amount we insure the property
for is based upon our latest appraisal. Larry met with new appraiser Bonnie
Worthy in February and May of 2014 to do a full appraisal of the property.
Insurance appraisal updates of the property are done every 12-18 months.
Therefore, he met with the appraiser in December 2015. The appraisal figures
are based on replacement cost. In October of each year, Larry mails a schedule
of our current values to various insurance agencies for insurance quotes
for the following year.
Deductibles and how they
will affect owners: Larry reported that Property insurance covers hurricanes,
wind, and now tornados. These events come with a 3% deductible, which means
with a building replacement cost of $21,612,000, our deductible for these
three events would be $648,360.00. There are 64 suites, therefore each
suite would have an assessment of $10,130. This is why the extra Loss Assessment
coverage is so important for all owners to have. Check with your personal
insurance agent. Many insurance companies can increase the standard $2K
loss assessment coverage to $10K for approximately $15 more. Larry stated
that if you update anything inside your suite, then you need to carry higher
values for interior replacements also. For other losses such as fire, the
property deductible used to be $5,000, but this policy year our deductible
will be $2,500. Flood Insurance is much higher this year. In 2014 it was
$6,000. In 2015 it increased to $8,500, and now in 2016 it has increased
to $10,000. Larry stated that there is no negotiating on flood insurance.
This premium is set by the Federal Government, and we just have to pay
the 40% increase this year.
Update on Annual Meeting
Details: Michelle reported that Brighthouse has agreed to help sponsor
the annual meeting and they will get in touch with Diane Verner to finalize
those details, since she purchases all the food. Lynn reported that only
four owners submitted their willingness to serve on the Board of Directors
for 2016, so if anyone is interested in serving with them, a written notice
of interest is needed. Then the Board will appoint someone at their organizational
meeting after the annual meeting.
The Annual Meeting is scheduled
for Wednesday, February 17, 2016 at 7 pm. Management will get the 2nd notice
sent out within the next week also explaining the special assessment needed
for the painting project.
being no further business, the meeting adjourned at 8:05 pm.
Lynn Hiott, LCAM and
Michelle Davis, CMCA, AMS, CAM
Community Association Managers,