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Minutes of the
 Whitley Bay Condominium Association, Inc.
 Board Meeting

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. 

Financial Report: 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 as planned. 

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.  

Insurance: Chosen 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. 

Adjournment: There being no further business, the meeting adjourned at 8:05 pm. 

Respectfully submitted,

Lynn Hiott, LCAM and Michelle Davis, CMCA, AMS, CAM
Community Association Managers, Reconcilable Differences