Call to Order: Stan Bowers called the meeting to order at 7:00pm in the Clubhouse.
Establish Quorum of Directors: Board members in attendance: President Stan Bowers, VP Margherita Ramsay, Treasurer Bob Shrader, Secretary Frank Sullivan, and Director Richard Isom. Michelle Davis from Reconcilable Differences, and 12 unit owners attended.
Approval of Minutes from Previous Annual Meeting: Frank motioned to approve the minutes of the June 12 minutes as posted on the website, with the exception of removing his objection to the meeting adjournment. Michelle agreed to remove the objection. Bob seconded the motion, all were in favor.
Financial Report: Bob stated that through July 2019, the Association has no delinquencies. Bob stated that expenses are on target, even with the ongoing project of rebuilding doors (a cost of $150/door for grinding, bondo, paint, prime, repairing and replacing hinges, etc.). Michelle stated that the transition to the new bank has been smooth.
Approval to Use Paint Reserves for Doors
Bob stated that several months ago, the Board approved using $10,000 to paint doors. The Board has used this allowance and even exceeded it. Margherita made a motion to approve an additional $15,000 from the Painting Reserves to complete painting the doors.
Stairwell Painting Bids & Approval to Use Reserves
The Board is going to table this discussion for now. Stan received 3 estimates for painting and they were vastly different. The approximate bids were $34,000 from Anchor Painting, $15,000 from Wall to Wall, and $24,000 from Top Coat Paint. The Board feels that repainting the doors is a necessity, but painting the stairwells is a cosmetic touchup. The Board is going to revisit this project in January 2020 to allow the funds available in Painting Reserves to rebuild.
Garage & Garage Door Cleaning
Margherita received an estimate from USA Cleaning for $950 to wipe down the garage doors, handwash the garage pipes, vacuum and brush the ventilation screens, wash the garage doors including the common entry doors, wash the garage floors with an automatic scrubber with a focus on the painted lines, and spot treat specific areas as indicated by Bob. It will be a 2-day project with a 2-3 man crew. Bob recommended adding this service to the annual contract, so it doesn’t have to be discussed every year. Margherita will look into this after reviewing their work performance on this project. The Board agreed to move forward with this project.
Engineering Firm Bids – Annual Building Inspection
Michelle stated she received a bid of $8420 from TLC Engineering. She has asked multiple times for an estimate from Existing Structures Engineering but is no longer receiving responses from them. Jim Emory at Keystone said he is unable to take on another project at this time. Don V. asked if a structural inspection can be performed at the bare minimum. Stan stated that it is an annual requirement in the Association documents, but the Board is considering if the inspection requirement can be reduced to every 2-3 years.
Tree Removal for FPL – Document Modification to Not Replace Trees Removed
When the building lost power in mid-August, a tree had to be removed to gain access to the transformers. The only other alternative was to rent a crane, and that would have been a lengthy process before power could be restored. Due to its location and size, the Board would like to get owner approval for a one-time exception to the governing documents and not replace this tree. Margherita made a motion to include this exception on the next proxy ballot. Richard seconded, all were in favor.
Declarations Review Committee
The Board needs a Committee to review the Declarations to find sections that need to be updated to current needs and practices. This will include issues like reducing the frequency of required Building Inspections. Michelle recommended having a Board member stand as Chairman of the Committee with 3-4 owners adding input. Michelle will need the suggested revisions before November to include them in the mailout for the Annual Meeting. Frank will head this project and will search for volunteers by the next Board meeting.
Implementation Committee & Sub-Committee – Design Recommendations
Frank had formed a committee called the Reserves Implementation Committee to ensure that the Reserve Analysis was as complete and refined as it could be but discovered in the Policies and Procedure Manual that a Reserves Committee already exists. Frank found in the Declarations that a vote to create Committees is unnecessary because the President can form and designate members on his own. Frank, Mike, Jim, and Ed will continue to do research and review the numbers on the reports. Anything that costs more than $10,000 must have a Reserve Account that is funded every year for the period of life expectancy. One of the residents is a Realtor and stated that the lobby and front entrances are the first impression on potential Buyers, and those areas sorely need to be modernized. Sheila is going to head a committee with Sandra Tenney #803, Carolina Kripinski #PH3, Jayne Lusk #505, and Christine Kuhn #303, and is still looking for more volunteers and input. The Association has had a Decorating Committee in the past, but this is a new venture that Whitley Bay has not attempted before. Attendees spoke at length about the pros and cons of raising monthly maintenance fees to cover costs that could increase property values, but Margherita mentioned that a high maintenance fee could also make the homes less marketable. Other residents mentioned the need for more owners to get involved and invested into the care of the property.
Mission Statement Approval
The Board has been working on drafting a vision and mission statement. It will be posted on the lobby bulletin board and on the website. Margherita made a motion to approve and post the vision and mission statement. Richard seconded, all in favor.
Pooled vs. Component Reserve Funding Vote
When the Association was formed, the Developer chose to go with Component funding. This means that anything that costs over $10,000 must be funded every month for the duration of its life expectancy. The alternative option would be having a Pooled Reserves, meaning that all money goes into a single Reserves account, and it is used for repairs as needed. The current practice means that if something goes wrong and there isn’t enough money in the individual Reserve account, the Association has to receive permission from the owners to reallocate funds from another Reserve account, or to issue a Special Assessment on the owners. The Reserve Study recommended that the Association change its funding to a Pooled Reserve. Bob pointed out that changing to a pool of funds does not change the fact that each item will still be budgeted to be funded for its life expectancy, it just lessens the possibility of having a Special Assessment because money is easier to access. Stan explained that a proxy will have to be sent to all owners, and 51% of all owners will have to agree to change the funding of Reserves to the Pooled method. Bob made a motion to send out this proxy ballot now, so that the budget can be started. Richard seconded, all were in favor.
Elevator Maintenance Contract
Stan received 2 bids for Elevator Maintenance from OTIS and Premier Elevator. The current 5-year contract with OTIS is expiring at the end of November. Currently, WB pays about $1200/month. OTIS submitted a new bid for $800/month to include all the annual services that are required by the State. Premier Elevator submitted a bid for $800/month that included 2 visits per month, but an additional $552 for annual tests. OTIS stated that they use a computer program that monitors and dictates the frequency of visits based on previous issues. Both companies require a 5-year contract. A resident commented that OTIS has not been providing good customer service lately. Stan commented that Premier Elevator is a relatively new company, but has provided satisfactory service at Michelle’s other properties, and they provide regular service that OTIS is not offering. Richard made a motion to accept Premier’s contract. Frank seconded, all were in favor.
Stan announced that 2 new members of the Landscaping Committee are Christine Kuhn and Sheila Bonvallat. Richard has turned over those duties to them.
Set Next Meetings for Balance of Year: The Preliminary Budget Meeting will be held on Friday, October 18th at 10am, so the draft budget can be mailed to all owners. The Budget Meeting will be Thursday, November 7th at 7pm.
Adjournment: There being no further business to discuss, Bob motioned to adjourn the meeting at 8:30 pm. Richard seconded, all were in favor.
Michelle Davis, CMCA, AMS, LCAM #17226
Community Association Manager
Reconcilable Differences, Inc.