SUMMERHOUSE BEACH & RACQUET CLUB CONDOMINIUM ASSOCIATION
ANNUAL MEMBERSHIP MEETING
SUMMERHOUSE CLUBHOUSE
8550 A1A SOUTH, ST. AUGUSTINE, FL 32080
SATURDAY, OCTOBER 16, 2010.
The annual meeting of the owners of Summerhouse Beach & Racquet Club Condominium Association was held on Saturday, October 16, 2010 at the offices of the Association. President Bob Mericle called the meeting to order at 9:30 a.m.. Proxies were certified, and a quorum was established by Bob Wheeler. Mr. Wheeler established proof of notice of the meeting. The votes on questions to the membership were announced.
Question 1. If there are surplus funds from fiscal year operations, should the Association use those surplus funds to reduce member assessments for the fiscal year? Votes. Phase I - 43 Yes, 0 No; Phase II - 35 Yes, 3 ; Phase III – 31 Yes, 0 No; Phase IV - 38 Yes, 0 No.
Question 2. May the Board of Directors transfer funds from one reserve category to another reserve fund category within the same Phase if necessary to avoid or reduce a special assessment to fund the other reserve fund category? Votes: Phase I – 42 Yes, 1 No; Phase II – 37 Yes, 1 No; Phase III – 30 Yes, 1 No; Phase IV - 38 Yes, 0.
Directors present were: from Phase I, Maurice Brown and Tom Freeman; from Phase II, Anne Zickus and Dick Harmon; from Phase III, Wendy Crothers and Harry Ballance; from Phase IV, Bob Wheeler, Bob Mericle and Ed Presson. Absent were: from Phase II, Garrett Beck; from Phase III, Bob Ford.
President Bob Mericle welcomed the owners to the meeting and appointed Bob Wheeler to oversee the election.
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A motion was made by Tom Freeman and seconded by Ed Presson to waive the reading of the minutes of the previous owners meeting of October 17, 2009. The motion passed unanimously.
Tom Freeman made a motion to accept the minutes of the last Board meeting. Ed Presson seconded it. All approved.
President’s Report: Bob Mericle said it had been a privilege to serve as President. This year’s audit resulted in no suggestions for improvement, indicating that our finances are being managed well. The concrete restoration project will be our main financial concern for the next few years. Mr. Mericle praised the staff for their professionalism and positive attitudes.
Vice-President’s Report: No report.
Treasurer’s Report: Don Coker thanked owners for paying their association dues on time each month. He also praised Keith Jones and his management team for keeping expenses under tight control. Summerhouse is financially well prepared, Mr. Coker said, and, hopefully, Summerhouse Rentals, Inc. (SRI) will have another banner year.
Secretary’s Report: No Report.
Landscape Committee: Garry Vaneman thanked the Summerhouse personnel for their efforts. He noted progress in on-going projects such as re-planting flower beds around the entrances, spreading mulch, and erecting additional air-conditioner fences.
Insurance Committee: Chairman Ed Presson announced that Summerhouse will be getting a 12 percent rebate on 2010 flood-insurance premiums amounting to about $6,700. We will also benefit from an appraisal (for which we paid $800) that, for insurance purposes, lowers the Association’s property valuation by more than half a million dollars, for an estimated yearly savings in property-insurance premiums of around $3,700. That savings in valuation contributed to the low bid we received from our insurers (Rock Hill Insurance and Max Specialty) of a little less than $197,000 in property insurance premiums for the 14½ months through January 21, 2012―a large amount, to be sure, but one that should reduce our annual property-insurance premiums by more than $30,000. As Bob Mericle noted, insurance constitutes a major element in our budget. He added that an insurance subcommittee is carefully monitoring the uncertain effects of Obamacare on our participation in the health insurance of Summerhouse employees.
General Manager’s Report: Keith Jones said that one of this year’s priorities has been to enhance lawns and grounds and to improve our irrigation system. Those goals have been largely achieved; new sod will fill in remaining bare spots around the complex. We have added a new play area in Phase I, replaced barbeque grills in Phases I and IV, made improvements to the walkovers in Phases III and IV and added WIFI repeaters on all four walkovers. This year we will construct a pavilion in Phase IV grounds and replace the doors to the racquetball courts. In November, all four pools will have minor work done. Also in November, 12, twelve buildings will have repairs performed on their underside beams; those 12 buildings are Numbers 5, 6, 7, 9, 10, 11 ,12 ,13 ,14 ,16, 19, and 20. The work will be coordinated so as to impact rentals in the least possible manner over a six week period. The cost is estimated at $20,000.
Rental Committee Report: Dianna Domitz reported that the rental committee meeting was a useful open question-and-answer forum bearing on the possible impact that the concrete restoration project will have on the renters. Bob Wheeler summarized the history, purpose, and ensuing benefits of the SRI. It was incorporated in 1999 as a for-profit corporation for the purpose of managing, in house, the rental activities of individually owned Summerhouse condominiums.
A recent study of the impact of SRI on the overall financial health of the homeowners association showed a total benefit to the Association of $143,000 a year or $50 every month for every homeowner. SRI is directly accountable to the shareholders (represented by the Association Board of Directors), and its primary mission is to generate income. Thus it has grown to a $2,000,000-a-year business and is going strong.
Long- Range Planning and Finance Committee: Chairman Bob Wheeler explained that this committee is charged by the Board with the responsibility to plan and recommend all aspects of expenditures and future capital projects of Summerhouse Beach and Racquet Club, Inc. In 2010, the Committee recommended that our racquet ball courts be repaired and painted, and that walkover repairs should be carried out in-house and in segments to avoid the need for new building permits. In late 2009, the Committee recommended that an engineering study be performed to determine the extent of concrete deterioration to buildings. Three options for funding the project were presented to the Board, with funding to be monitored to assure adequate reserves after the Board committed to these projects. Preliminary budget work has begun for 2011. It is anticipated that maintenance fees will be increased by $60 a month to fund the restoration project, but all monthly fees should remain below $400 a month. The Long-Range Planning Committee recommended made to both the SRI and the Summerhouse Boards that a separate annual audit be conducted for Summerhouse Rentals activities (approved by the Summerhouse Board). Based on year-end financials, the Committee recommended that the 2009 SRI dividend to the Association be restored to $40,000 (also approved by the Summerhouse Board).
Election of Directors: Bob Wheeler announced the election results:
Phase I ― Beverly Abrams to serve a two-year term; Maurice Brown and Laurie Mitchell to serve one-year terms.
Phase II ― Norm Breen to serve a two-year term; Anne Zickus to serve a one-year term. There was a tie between Dick Harmon and Don Coker, so there will have to be a run-off election. This may not be held less than 21 days or more than 30 days after the election and will involve only Phase II owners.
Phase III ― Wendy Crothers to serve a two-year term; Bob Ford and Harry Ballance to serve one- year terms.
Phase IV ― Bob Wheeler to serve a two-year term; Ed Presson and Jim Lilley to serve one-year terms.
The meeting was adjourned at 11:10 a.m.
Respectfully submitted,
Wendy Crothers, Secretary
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