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 Minutes of the 
Whitley Bay Annual Members' Meeting 
Wednesday, February 15, 2017 

Call to Order: Stan Bowers called the meeting together at 7:03 pm in the Whitley Bay Recreation Room. 

Proof of Notice of Meeting: Manager Michelle Davis affirmed that the notice of the annual meeting was posted in the elevators and mailed to all owners on January 23, 2017, more than 14 days in advance of the annual meeting. 

Certification of Proxies & Establishment of a Quorum: Michelle reported that there were 8 owners present by proxy and 30 suites present in person for a total of 38 suites represented. Since thirty-three suites were needed to establish a quorum, the meeting was certified. 

Approval of Minutes from Previous Annual Meeting: Bob Shrader motioned to waive the reading of the minutes and approve the annual minutes from February 17, 2016 as written and posted on the website. A member in the audience seconded the motion, and all were in favor. Two board members were not in attendance due to sickness. 

Reports of Officers: 

President: Stan Bowers thanked the Social Committee for their outstanding work on the dinner prior to the annual meeting. Stan reported that the painting project was finally completed by Anchor Painting; in 8 months, not the 6-8 weeks as was scheduled, but the job turned out well. He thanked all owners and Board members for a very successful past year. Stan closed by saying that it was a good year, and was all due to cooperation and input from volunteers and residents of Whitley Bay. 

Vice President: Margherita Ramsay reported that Larry had resigned earlier in the year due to health reasons and the board elected to have her step into his position. Larry had served the board for 8 years and headed many committees. As of January 2017, he has successfully lowered the hurricane deductible from 3% to 2% of the value of the building. He still oversees employee vacations and benefits, and assists Stan in employee evaluations. Larry asked that all board members get a copy of the 3-ring notebook of employee forms. 

Larry always quoted the following from an unknown author: "Volunteers are seldom paid; not because they are worthless, but because they are priceless". This quote is very true. The board and all the volunteers need to be thanked for making the association a great place to live with a wonderful reputation. We are a good team. Margherita stated that dogs need to be picked up after while outside and more importantly when inside. This is your home, we need to take pride in it. 

Treasurer's Report: Bob Shrader reported that we ended the year about 1% over budget. There were repair bills throughout the year due to the age of the building, including elevator, plumbing and boiler repairs. 

Committee Reports: 

APPRAISAL: Larry and Bob continue to serve on this committee. Margherita stated that Larry did not give her a report to share but reported that the appraisal value was $21,721,708 at the end of the year, which gives a hurricane deductible of $434,434, or $6,788 per unit. Stan noted that Larry is a great negotiator and we all should be grateful to him for all he has done to save the residents money. 
BUDGET: Bob stated he and Michelle start work in the fall to keep expected expenses as low as possible. The fees only increased by $10.00, to $630.00 per suite, for 2017. 

CONTRACTS: Stan stated that since Larry cannot continue on this committee, he would ask Michelle to just handle it. It will be a part of the management duties to help negotiate annual contracts. 

DECORATING: Diane Verner thanked Lindsay, Loretta, Carole, Cametta & Becky for helping decorate both lobbies and the recreation room this year. Roy and Scott helped out again with stringing lights on the balconies. The lights on the hedges have been replaced every year, and the committee decided not to keep wasting money on hedge lights in the future. Instead, it was decided to use the money to have local artist Suzie Fromm design new arrangements for the 1st & 2nd floor lobbies as well as one arrangement for the rec room. She gave such good prices that the potted plants in the first-floor lobby were also replaced. 

ENGINEERING STUDY: Tom Jensen reported that the last study was conducted a few years ago, and is required every 5 years. No major faults were found. The cracks that were found are being monitored and there has been no change in their spacing in two years. We do need to thank Tom for saving several thousand dollars by designing a meter without an engineer’s help. 

EXERCISE ROOM: Frank Sullivan stated treadmills were replaced two years ago, and are being used. 2840 miles have been tread in our fitness room. A survey was conducted last fall. It found that the room is too hot, it is not clean enough, light bulbs and fans need to be repaired, and most comments asked for a new elliptical machine. A new survey is on the bulletin board asking for your vote on either a new elliptical or another choice of equipment. That will be addressed after the roof repairs are completed. 

FIRE DRILL: Tom Jensen reported that there has not been a fire drill in a couple of years. Fire department needs to perform these to stay familiar with the building. Previous drills revealed that the standpipe was not properly installed and it blew up. It has now been repaired and is ready in case of a fire. Roof hose access found that small rocks were in the pipes and those could have clogged sprinkler heads. Should there be an actual emergency, all residents need to meet under the pool in the marina parking area. Make sure to leave your door unlocked in an emergency, or the firemen will just knock it down to ensure no one is left inside. Stairwells are deemed to be a “safe place” to wait for firemen to come and get you if you are unable to walk the stairs. Elevators do not work in an emergency. 

Stan reported that if an alarm goes off, it will only activate the alarms on the floor involved along with the floor above and the floor below. You are deemed to be safe if you are not on one of those three floors. 

FLOOR CAPTAINS: Diane Verner reported the names of the captains for each floor and thanked the past and present captains for their hard work. Floor captains will assist owners on their floors during an emergency, but their initial purpose was to familiarize new owners and tenants with the building and what the rules and regulations are. 

INSURANCE: Larry will continue on this committee and Margherita will co-chair. On 2-9-17 Regions Insurance closed their Melbourne office and moved to St. Petersburg. Ryan Matheson is the new agent in that office and the Ramsays can give you their number. Total cost of all insurance is $53,297.38 which includes $14,894 to drop the deductible to 2%. Total cost is still under budget by $1269. Various companies handle the associations different policies and all companies are A rated. Total property value is $21,721,708. It is strongly suggested that each owner increase their H06 policy deductible. 

LANDSCAPE: Richard Isom was absent due to illness, so Stan reported that we changed landscape companies in 2016. The new company is responsive and it is not costing more money. We did lose 3 palms in the hurricane, and a ground cover is not doing well, so Richard is still working on that. 

MAINTENANCE: At the last meeting, Bob stated that the building is getting older and things are going to need replacing. That is coming true. Valves have broken and chill water had to be shut off to the building. Estimates are being sought and work will have to be coordinated with a number of plumbers, because the entire building must be drained, repairs made, and then water brought back up. Other valves to potable water also need to be replaced, but everything cannot be done at the same time. Regarding the boiler, there have been problems with very hot and cold water due to a leak in one of the holding tank valves. It will be repaired tomorrow. The tank had to be emptied, and that caused the boiler to think it needed to heat more. A resident asked about warranty on them. Stan said they are 15 years old, but plumber will be asked. Roofs: tile and flat were both damaged during the hurricane. There were 75 penetration on flat roofs due to broken tiles. Three companies have been contacted for estimates, 2 have returned estimates and the third company is working on theirs. This is a large project requiring the rental of equipment along with safety issues and finding companies large enough to do 
the work. The insurance company sent engineers and building consultants, and our new agent is working with the claims representative (3rd one since the process started). Stan applied for a FEMA grant and he is going through that process which included the submission of an SBA loan application. SBA wanted tax returns from everyone on the property, so SBA turned down the loan, but we needed that denial in writing to get to the next step with FEMA. Our application is now awaiting FEMA approval. If approved, the FEMA grant would pay 75% of the loss. The state pays an additional 12.5% of the loss, and the association would pay the other 12 ½%. It is a long and difficult process. 

Owners ballots that were gathered showed that it is preferred to replace tiles with metal not terracotta (45 yes votes =70% approval), but finding a roofer to install the metal may be difficult or impossible so terracotta may have to be reinstalled. We are still waiting on a third bid, and on our insurance company, ASI, to tell us what they will pay. Our deductible is $630,000. Stan has spoken with public adjusters and even the original engineer, but we are waiting on the insurance company’s response before taking another step. Stan answered questions concerning the process. Another owner discussed at length the leak in his unit. Patch work is being done to the flat roof to try to alleviate current leaks. The two roof replacement quotes that have been received are $800,000 and a little over $1,000,000. 

NEWSLETTER: Loretta Bowers reported that the newsletter goes out 3 or 4 times a year and includes travel, noteworthy events & suggestions. All input is appreciated. 

PARKING: Diane Verner reported there were no major issues but volunteers are needed. She reminded owners to move to the 1st floor if they are going to be out of town and not take up the prime spaces by lobby doors. 

POOL COMMITTEE: Judy Bartine and Mike Mervis are a newly-formed committee. Judy reported that they are looking for a way to extend the length of time the pool to be usable. They are looking at a pool cover or the liquid film cover that is available. The liner needs to be replaced, bids are about $12K. The liner company said the warrantee would not be honored if temporary steps were added, and the cost of a new liner with permanent steps is between $23,000 - $25,000. Since tiles fell from the roof into the pool, this liner replacement could be considered a hurricane repair, because it wasn’t leaking before the hurricane. 

RESERVES: Bob stated the association saves about $50,000 a year to cover non-annual costs, such as valves, pool liner, etc. Owner asked how much is in roof reserves. Currently, there is $72K in roof reserves, and we will need about $18K to replace the valves. Stan reminded owners that they are asked to vote each year on fully or partially funding the reserves and partially funding keeps fees down, so it is almost unanimous every year to only fund at 50% of need. Therefore, special assessments will be needed. Reserves are not pooled but set up for specific elements and cannot be used for different purposes without an owner vote. 

REVIEW COMMITTEE: Diane Verner reported that all owner requests for approval of items at their door have been approved. Anyone who has not received a written approval from the committee needs to complete the request form and have the committee inspect for approval to assure safety and compliance. 

SECURITY: Wayne Sanders reported there was nothing to report. We are secure. 

SOCIAL: Loretta reported there were 6 events in 2017 and 7 events are planned for 2017. Carol designed a survey, available tonight, that needs owner input. We want to know what you want to do! Participation by owners is so important. 

STORAGE: Don Verner stated that there are only a couple of spaces left on the 1st floor. Please continue to keep all items within your marked space, and below the fire sprinkler pipes. Also, do not store any flammable items. 

Open Forum: 
Water cut offs in units, the valves need replacement throughout the buildings. This is not a simple project but the plumbing has issues due to original design. Lines need to be flushed to reduce sediment. There is a possible need for a filter system. Sand and seashells are coming from the city water. 

Unfinished Business: None. 

New Business: 

Special Assessment: Michelle reported on the process of a special assessment. She reminded owners that Larry has encouraged owners for 8 years to increase their own loss assessment coverage to $10,000 per unit. Insurance companies have been very good about making payment to owners after the hurricane special assessment letter is sent. Owners who do not have this coverage may have to set up a payment plan. A letter will be sent to all owners as soon as total costs are known. There have been about 20 units sold and all are being told about the assessment. Two lawyers have told us that it will be the responsibility of the owner at the time of the assessment to pay, not the owner at the time of the loss. Some disagreed, but the only way to know will be when the assessment is approved and invoices are sent to insurance companies. At least $2,000 in loss assessment coverage is on all policies, and some have a $250 deductible, abut other policies have a zero deductible on loss assessment claims. 

Presentation of New Board for 2017: 

Stan stated that 5 members submitted applications for board positions; Stan Bowers, Margherita Ramsay, Robert Shrader, Richard Isom and Frank Sullivan. Terry Yates declined to serve, so we thank Frank for filling the position. 
Adjournment: There being no further business to discuss, a resident in the audience motioned to adjourn at 8:28 pm. Bob seconded, all in favor. 

Minutes of the Organizational Meeting 
Held immediately after the Annual Meeting 
On Wednesday February 15, 2017 

The meeting was called to order at 8:40 pm. 

All agreed to keep officer positions the same. Stan Bowers will stay as President, Margherita Ramsay will serve as Vice President, Bob Shrader will remain Treasurer. Frank will take over Terry’s Secretary position, and Richard Isom will be Director at Large. 

Electric Vehicles: The kill-o-watt reader didn’t work well, and that owner said he would research something new, but in the meantime, owners need to pay at least an estimate of the power they are using. It was agreed originally that owner would pay quarterly, so current user will be emailed to give us an estimate of power used and make a payment. 

Grills: The most recent fire marshal notice does not allow grills on balconies, even electric grills. Propane heaters are also not allowed. RDI will forward a copy of the fire marshal’s letter to the board. 

Next Meeting: Will be scheduled as soon as the insurance company has new information for the board to discuss. The engineer, Sean Burlingham, can be brought in if the process slows too much. 

Adjournment: Stan Bowers made a motion to adjourn at 9:03 p.m. Bob seconded the motion, all in favor. 

Respectfully submitted, 
Gabrielle Porter, CAM Michelle Davis, CMCA, AMS, CAM 
Community Association Managers 
Reconcilable Differences Team