Point Pleasant Villas Owners Association

Board of Directors Meeting

Kathan Kamps, Hadley, NY

June 2, 2007

9:00 a.m.

 

Attending:  Lew Wilson, Don Reed, Bob Glover, Brooke McCauley, Bruno Battistoli, Jack Cistriano (non-voting), and Gary Van Oosten (Property Manager)

 

Absent: Tim Reynolds, Bruce Watson (both proxies with Bob Glover)

Karen Price taking minutes

 

Call to order at approximately 9 am

Minutes of last meeting were approved unanimously.

 

Treasurers Report:

 

The PPOA Reserve Account, containing approx. $202,000 currently at E-trade , was transferred to M&I Bank in Wisconsin as additional security for the loan from former owner Manfred Neumann to eliminate the note from First Bank on the water and sewer plants.  The plan is to leave the funds there for 90 days, and then to move them to Community Bank

The First Bank loan has been zeroed out but PPOA has not received a closing statement; Gary stated the PPOA attorney is handling it.  

 

There was some discussion about who set up the E-trade account, Gary stated he was told that Brooke had set it up, Brooke stated he did not.  Bruno also stated he did not set it up. General conclusion is that it was set up by Colony.  It did not have a 2 signature requirement as the new current account does.  The 2 signature M&I account costs $30.00 per month.  Gary stated the main reason to move from the E-trade account – it was not a secure account, was not a two signature account.  The M&I bank acct also pays approximately ½ % more interest.

 

Community Banc – Don presented information about the Community Banc and gave a break-down of benefits and services.  He stated the bank serves homeowners associations and their specific needs.  Pending the Board’s approval, Brooke will set up two accounts at Community Banc – the Capital Reserve account and the operating account will be transferred to Community Banc.  We will also consider a loan with Community Banc to pay off Manfred.

 

Brooke stated the monthly maintenance assessments funds will go to a P.O. Box and will be processed by Community Banc; Amelda won’t have to enter the funds.  Credit cards can still be used to pay maintenance fees, but will cost the homeowner more, as Community Banc charges a processing fee to cover these costs.  The credit card discounts will no longer need to be absorbed by PPOA.

 

The payroll account will be set up at an island bank of Gary’s choosing.

 

            There was some discussion about the two signature account at Community Bank – the bank states they do not look at signatures for checks less than $5,000.00.  For this reason, the checks need to be kept in a secure place.

The following motion was made by Lew Wilson and seconded by Bob Glover.

 

            “The treasurer is authorized to establish such accounts and loans at Community Banc as             shall reasonably be necessary for the conduct of the business of the association.”

 

            The motion passed unanimously.

 

            Brooke asked who would be the ones to sign.  The following were decided:

                        Capital Reserve account – Manager, Treasurer and President (2 of 3)

                        Operating account – Manager, Controller, Treasurer, President (2 of 4)

                        Payroll account – Manager, Controller, Treasurer, President (2 of 4)

 

 

Property Manager’s Report:

• Gary stated the money is going out as fast as it is coming in.
• Gary stated one of the reasons for the shortfall is the repairs on the pool (24k)
• Brooke said he is not receiving financial statements from Larry Kemp
• The Feb ’07 profit and loss report is the most current
• Gary talked to Larry on Wednesday, he stated the ’06 year hasn’t been closed yet
• Bruno asked if we are getting Larry the information he needs; Gary stated that we are up-to-date on supplying him information
• There was a discussion of the production of financial statements; February is the last statement received, so we are just one month behind- it was determined that is reasonable considering it’s tax time.
• Amelda’s is delayed in producing financials because she has to wait until mid-month each month for necessary account information from First Bank; this should improve with our move to community banc.
• Discussion was had as to the amount Richard Locke of Antilles has been contributing to repairs and projects at the resort
• Brooke stated that he will call and talk to Jeanie Brennon
• We do not owe Larry Kemp money
• Don stated we need a current P&L for the loan by the August meeting
• Bob will approach Richard Locke and ask him to contribute to pool repair ( total cost was $24K)
• Gary stated there will be another large expense in repairing concrete cracks in B29 (bathroom), B32 (exterior wall), and E7 (interior wall) and these repairs will deplete annual capital improvement budget line
• There are 4 owners who are 90-days over due; they are being handled with the established procedure, which culminates in turning off the unit utilities.
• Negotiations with Choice cable are ongoing.  Bruno stated the billing is a nightmare.  He also stated we need a person to talk to and asked if Gary can get the name of someone.
• Bruno wanted to know where we are trying to go with the cable service.  Brooke said the goal was still to have one billing for the resort, with a cost reduced to less than $20.00 per unit.
• There was discussion about the possibility of using Dish Network – potential problems with it include poor reception during bad weather, which may also affect internet connection.  It was pointed out that although some services are cable based (like choice) all services on the island receive there signals via satellite, and so are weather-dependant. Discussed that you can have Dish television and still use the Choice hot spot connection for internet. They are separate services..
• Bob stated that we should get someone higher up at choice and tell him we are looking at changing.
• Bruno stated there should be a meeting with the president, and try to fix billing
• Brooke stated it should be Joe Sharp, with Bob to coordinate a lunch meeting around ythe time of the August board meeting and Bruno or Brooke to attend
• Dish Network – up-front costs would be higher – 4 antennas, wire with installation by Gary (with supervision of Dish Network) would cost $25,000.00.

 

 

The railing project was discussed:

• Shipping costs will be about $13,000.00, with 2 containers, from Florida
• The assessment for each owner (studio share) for the common area railings will be $1500.00
• Bruno asked for an exemption for replacing the railing on his unit (B20), as the railings have been recently replaced. After discussion, the motion and was withdrawn .
• Jack stated that, according to the by-laws, the assessment for the common area railings must be split as studio shares; vs. splitting the cost by owner.  It was agreed among the board members that the costs would be split via studio share.
• Lew asked if there was agreement on the board on the product
• Gary stated there needed to be a Purchase Order for 50% of the material costs to order the material and it will take 6 weeks for the material to arrive on the property
• Lew asked how soon the billing could go out
• Gary stated it could go out next week.
• Gary asked if we could get a Line of Credit for back-up through Community Bank if there is a shortfall in getting money from the owners
• Don stated he and Brooke could apply for a loan as a contingency
• Lew stated we need the money as soon as possible
• It was decided the contractor will choose where to start the project and occupancy must be considered.
• There was a motion made by Lew and seconded by Don Reed to accept the style and color of the railing, and to proceed with the railing.  A letter to the owners will describe the standard assessment ($1,500.00) and individual unit billing.   It was determined that the cost per linear foot of railing for individual owner is $36.65.
• August 1st, 2007 will be the deadline for common area assessments and September 15, 2007 for the owner’s portion for railing.
• The motion was passed.

           

• The grounds look good.  Tim and Karen and Antilles advanced the money for the new unit signs.
• There was a severe fire in E14, and it hasn’t been determined how it started.  Everything has to be discarded and replaced.  There is a $5,000.00 deductible on the PPOA policy.  If the content replacement has a deductible, the owner will pay.
• The fire in C8 was caused by a faulty thermostat in the oven
• PPOA accepted the resignation of a  maintenance person last week
• There have been 40 split units air conditioners installed, with 3 more on order
• There was a discussion about using tank less water heaters.  They require a 220  volt service, compared to 110 for the current heaters, which would be difficult to put in each unit.  They must have dedicated circuits.
• Bruno stated there is a rebate on solar powered water heaters by WAPA.
• Units are selling.  B28 sold for $220k, the rest have been in the $265k range.
• Discussion of the resort next door – all of the furniture was sold, and there are supposed to be 90 units open by fall 2008 – they will be timeshares.
• Antilles is still taking care of the beach.
• The shop upstairs is doing well.
• Security is good
• There was a discussion of the employee college scholarship – The board will begin to fund that at the August meeting, and the information will go out to the employees (PPOA and Antilles) in the fall with the paychecks.
• The plants are going well, though new membranes are needed – they cost $5k for 4 – will ask Richard Locke to contribute
• The waste plant – need to clean the membranes, there were 2 gray water leaks, had to switch to fresh water for 2 days.

            There was discussion for Gary to prioritize projects for money from Richard and any            surplus that might come from the assessment. Need to develop a list of projects that must be completed, such as the pool and membranes

            Bruno asked when Antilles contract expires.  At least 1, maybe 2 years.

            Don stated the bank says “Tell us what you need” – they will give a line of credit – think in terms of short, medium and long term goals

 

Budget preparation

            Gary to work with Brooke to  put together 2 or 3 different scenarios for Aug meeting

            Discussion of under-insurance:  We would have to have a $2.6 million loss before an assessment would be needed.

            Can we learn anything from the lower pool for the other 2?  Was it from the construction?  No.  Can we find out if there was an earthquake for insurance?  What would be the deductible?

 

            Bruno gave a wind power generator update – he read a letter from Mark Lichtenstein of the Syracuse Center of Excellence (see attached).  There is supposed to be an on-site visit by Mr. Lichtenstein and an intern.  Discussion of housing the guests – possible L building or other units

            Bruno stated the intern would be down by August.  Mark Lichtenstein can stay in one of Bruno’s units.

 

 

Next meeting

            The litigation from a former employee is being handled by the PPOA attorney.  Don asked for a description of the law suit.

 

            Lew stated he wants to have the board members and any interested owners take a trip to another island following the October ’07 meeting, with each individual paying his/her own way-this was done in the past and many people took part. Gary stated he will check on boat cruises for 35 to 40 people.  He will the have information on this for the August meeting.

 

            Jack stated we need nominating committee members to bring nominees (to the board) for discussion at the August meeting

 

            Bruno stated he had a conversation with Bruce and that Bruce said he has no intention of attending any more meetings, unless the reimbursement guidelines are made clear.

           

            Lew stated if Bruce doesn’t show up for the August meeting, he will ask for his resignation.

 

            It was decided to send a letter out to the owners regarding interest in serving on the board.  Owners should send a letter expressing interest and their area of expertise.

 

            Discussion about the Web-site being out of date.  Don stated there are 2 Web-sites specifically for owners association: Community association network, and Regenerist. Net. Bruno said he would continue to be involved, and Don agreed to send him information on the new sites.

 

            Owners will be asked at the October meeting whether they prefer email vs. regular mail for receiving information, including billing from PPOA.

            Bruno stated he has a concern about the way Point Pleasant is marketed.  He feels PP is a one of a kind facility – a natural setting, with appeal to the new eco-tourism trade but that it is being marketed as a cookie-cutter resort like Windham and Sapphire

 

Prepared by Karen Price

 

Attachments:

            Agenda

            Letter from Mark Lichtenstein

            Proxy letters from Bruce Watson and Tim Reynolds