General Document: Board Meeting Minutes May 28 &
29, 2004 ( 11/12/04)
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General Document: Board Meeting Minutes May 28 &
29, 2004 ( 11/12/04) |
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MINUTES OF A MEETING
A Board of Directors meeting was held on Friday and Saturday, May 28 & 29, 2004 The following Board members were in attendance: Jack Cistriano, President Tim Reynolds Walter Oliwa Mary Ann Simensen Dean Apple Jack Belfi Bruce Watson Others Present at times Keith Smith, Manager Joanne Costello John Owcarz
Jack called the meeting to order at 8: 32 am and updated the board on his wife’s progress and thanked the Board for their prayers.
Approval of Minutes Moved to approve the Board minutes of February 17 and 18, 2004. All in favor
Moved to approve the Board Executive Session Minutes of February 17, 2004. All in favor.
Financial Matters Dean discussed the final financial review of 2003 together with the auditor review. We ended the year with $29,000 income in excess of expenses compared to a deficit of $86,000 in 2002 resulting in member’s equity of $21,119. Assets are up $263,000 because of the purchase of the water treatment plant. Jack thanked Dean and the committee for their fine work. Once a few clarifications are completed it will be approved and posted on the web site.
Dean continued with the January – March review of the 2004 results. D-9 and D-4 still have delinquent balances, but are under sales agreements which will be bringing in about $14,000. Unit A-8 still owes $957, which includes a lot of legal fees and parking fines. We did offer to settle at 50 cents on the dollar. He rejected this offer. One of his units is under sales agreement and the fines will be collected entirely at that time. Unit A-7 has paid off most of what is owed. Board discussed the idea of offering to reduce legal cost settlements and decided not to allow this since the Association has incurred the legal fees and the lien fees and other owners should not subsidize late payers. Insurance came in a little over budget figures. Ground and landscaping is working out at about the same when you compare total contracted out amount against lowered employee cost. Electric costs have gone up. Water and sewage is down $11,000 in cost of operation. Waste removal is up even though it is shared with Greg. Interest costs concerning the treatment plant were not budgeted. Water Bay has received 3 payments totaling $22,877.49 toward reducing our past debt to them. A question arose re payment by Greg for outstanding electricity and water amounts owed. A year ago his meter wasn’t working for water so he was only paying $19/month as opposed to an expected cost of $2300. We are working on an agreement with Greg as to what he should owe us because of these past erroneous bills due to an inaccurate meter. Only non Association property tenants are billed directly.
Sale of units – Units B-15, B-22, C-7, C-10, D-23, D-32, D-38, E-3, E-12, & E-15 have recently been sold. Units B-20, B-25, D-2, D-9, D-4, D-22, D-20, D-11, E-9, E-14, and F-10 have recently come under agreement. Unit C-8 is for sale now.
Mail Boxes - John Owcarz came to the Board concerning the installation of mailbox. The Post Office would be responsible for sorting. The cost is $2480 to purchase two 16 unit boxes plus shipping. The boxes could be rented for $100 for the year. The Association could do it or John could do it. He suggested placement by the turn in at the tennis court. PO would change locks when a person moves. They would need to be installed with cement by our staff. John felt that long term tenants should be included. The Board will continue the discussion under Old Business.
Insurance Payments have been made in a timely way for our insurance coverage. Liability insurance has been increasing due to insurance claims. Minor trip and falls have become major issues. We received notification from Colony of a $500,000 settlement for an August of 2000 incident. We have doubts that this was our fault. Another was paid for a person who said they fell on Tim’s property, but actually told someone she fell on Jost. We are refusing to pay our deductible on this claim, since we told them to go to court over it.
Property Report Units B-20, B-21, &B-22 have concrete cracks above the north facing door and the decking has similar problems. Suggestion is to narrow opening by 4 feet and use two 10 foot openings supported by a concrete column in the middle. The load has to be carried to the ground. A bid came in at $70,000. The contractor has done good quality work before. An alternate plan is use columns on the side instead of one in the center. This should be less expensive. The Board wants to see what the two types of repairs look like on previously repaired units before making a choice. The second method would be much less invasive to the units. Questions come that since this may take 2 to 3 months to fix what should happen with the people who live there. If we don’t do the repair they couldn’t rent anyway, so no reimbursement for rental loss or payment for alternate living arrangements. We hope the repairs will not require this. Payment method for accomplishing this repair will be decided in Executive Session.
Moved that the project is approved to move forward and management will determine after consultation with contractor whether to repair as proposed or with metal lollie columns. All in favor.
A-12 repairs - A shower problem in unit above has been the cause of the problem leak. The leak is in a fixture in the wall as it changes the fixture in the shower from bath to shower. We will immediately contact the owner above to get this done within 7 days or we will do it a bill him. A-building roof leaks – The roof has been cleaned off and recoated where the membrane coating had come off. These leak issues seem to be solved. Parking Issues – There are some issues with parking on the hillside with a person with 2 cars. There is also a continual problem with the Sea School. During the day they need to be shuttled by Locke since he is renting the space to him. We will inform Locke and he needs to address this with the Sea School. Landscape Projects- Weekly team comes in and cuts various areas. The stump by the A building is gone. Security – Daytime security may be needed with the rash of break-ins and daytime parking issues. Locke will pay half of the costs. We need to confirm with Locke that he agrees.
Moved to explore with Locke to split the cost of a daytime security person and if he agrees to move forward with this solution. All in favor.
Other repair issues.
Mary Ann was concerned that some of these items that were in the 2003 capital budget have not yet been accomplished. We have had to replace doing the lower pool deck in order to do A building roof. We have done the transformer replacement at the C building and have replaced the worst meters. This needs to be finished. The Board wants to move ahead as soon as possible with budgeted items and prioritize the others.
Old Business SBA – Interbay seems to have sold their interest in our loan. Nothing has changed. Director’s expenses – payment of $50 for each of 3 nights was given to those who were unable to rent their units through the hotel due to attendance at the meeting in February. Board discussed having the next meeting in the Baltimore area. Based on everything that is going on, this may not be the year to do it and the costs were determined to be higher.
Moved that there is a $50 night for all board members for maximum 3 nights to cover loss of revenue or other housing costs for St. Thomas meetings. All in favor.
Board moved into executive session to discuss land purchase and the possibility of an assessment.
Utility Services Contract - We need protection for the means of collection of utility fees from non association users. (Agave, Pleasantries, Locke, etc.) We want to be clear that supply will be cut off if not paid the appropriate amount. Bruce is working on such a document with Dean. Mail Boxes - Board reflected on the earlier presentation and is concerned about headaches involving lost keys, responsibility for security, etc. Until we resolve all the land ownership issues we will postpone this, but are not leaning toward getting involved with mail. Nominating Committee Report – There will be 3 positions expiring: Dean Apple, Jack Cistriano. Neither are planning to run again. We need some key skills to replace these individuals. We need a financial person. Walter Oliwa is the chair of this committee and candidates should contact him with a statement and resume. The Board brainstormed some potential candidates.
New Business Next Board meeting is Friday and Saturday August 27th and 28th.
Moved to recess at 5:30 until Saturday at 8:30. All in favor.
Jack called the meeting back to order at 8:40 on Saturday, May 29,2004
Review of Friday’s Business Jack reviewed a few of the items from Friday to ensure accuracy. This year’s budget has enough funds to do the electrical and the cement work at the C Building. He was concerned re the need for a special assessment to take care of the other matters particularly for the B concrete work and the decks on the units most in need. Last time we did a $1200/studio assessment. Tim indicated a need for a few other items. Signage is in need of upgrading. Signage would be shared with Locke and Agave. Estimate of this cost is $10,000. We also need more golf carts. A used one from the states is about $3500, and we should have 2. Bruce brought up the dangerous level of our paths. Lights are out and steps are irregular. We discussed closing off all paths until one or more can be completed with concrete and the lighting is fixed. Lower high rise path should be closed. Bruce developed a list of items to consider in August: concrete work, roof C 2 and railings, pool furniture, signage, golf carts, site lighting, air conditioner drip pans, painting, cable TV upgrade, path construction.
We will require $70,000 to cover the down payment on the land. The down payment could be worked out of cash flow if the down payment could be spread over 2 years. We may need to stair step the need for funds for the purchase from the funds used for capital improvements. If we can get the contractors to actually schedule the concrete work, we can hold off any decision on an assessment until the August Board meeting when we will have a better cost estimate of the pressing needs. We need funds for capital improvements to fix all the needs of the property since there has never been a reserve. Owners should reflect on how their own interior improvements have raised their values and their rental proceeds. Now the Association will need funds to do our part to the structures and/or the exterior features to complete the upgrades. We need a long range capital plan along with its projected costs.
Walter questioned Tim about the parking going toward the C building being transferred to us. Tim intends to keep this for future potential needs.
The Board discussed what we need for Annual Meeting Materials. The list includes: Post Card reminding people of materials; Minutes of Previous Annual Meeting; Audit Review; Secretary’s Letter; Agenda; Proxy; Budget; and Announcement of Social on Friday Night to be hosted by us, Antilles, and Agave. All will be posted on the web site.
Bylaws and Declaration Mary Ann presented the revisions as summarized from the February meeting. We will give the changes to Linda Tyrell to put into the word processing tracking from her discs. We are waiting for report from attorney Marcia Resnick on some questions. She has not been able to respond for this meeting. We reviewed the revisions questions and decided to refer to a different attorney, Mr. Dunstan, for a response on compliance with VI Law. Mary Ann will email only the questions to him for responses and bring changes to Linda Tyrell for track changes.
There is a missing item from the Declaration that needs to be added. Bruce will get this to Mary Ann. Hard copies with tracked changes will be made for Board members use at the August meeting.
New Business Dean proposed an increase for Amelda due to improvement in her dealing with Association business and our need for her need to assume more responsibility. The Board agreed to give her a $200/month raise.
We need to download all of the material from Keith’s computer and that everything is backed up. Bruce will take care of accomplishing this. Keith has been here 16 months and has not taken any vacation so there will be some funds owed.
Moved to adjourn at 10:45. All in Favor.
Respectfully Submitted
Mary Ann Simensen Secretary
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