HERITAGE VILLAGE BOARD MEETING MINUTES
April 27, 2005
Present: Kurt Leckler, President
Dottie Manos, Vice President
David Loder, Secretary
Henry Montenegro, Treasurer
Diana Hussman, Director
The meeting was called to order at 7:07 p.m.
MEETING MINUTES
Dottie Manos made a motion to skip reading of the minutes from the March 23rd Board meeting; Henry seconded. The motion carried 5 – 0.
FINANCE COMMITTEE REPORT
Henry Montenegro stated that 8 residents attended the Finance Committee meeting on April 27, 2005. The financials were reviewed and can be summarized as follows: We are doing well with a net YTD income of $31,388. In the operating account we have $251K, in reserves $313K, in the escrow/insurance trustee $174K and in the DOT funds $86K. We have received $220K in income. Our expenses have been $43K for General & Administrative, $74K for utilities, $7K for maintenance and $33.5K for contract services. All were either at or below budget. We have also put $31K into reserves.
The committee discussed the tree and palm trimming and stump removal contract and decided to include the stump removal as a hurricane expense and the tree and palm trimming under account 9650 called tree trimming.
SBA Loan Status
Henry stated that he had spoken earlier this week with Dick Costello, our SBA Loan Coordinator. Mr. Costello had recommended an SBA loan amount of $1.3 million; however, Mr. Costello chose to back out the first and initial special assessment amount of $600,000 and instead recommend a loan of $730,000 at an interest rate of 2.9%. The Board is currently weighing the pros and cons of whether to take the loan and how to address expenses and the Wachovia line of credit with acceptance of an SBA loan. Further discussion will take place at the May Board meeting.
Lexington Insurance Status
Henry stated that Lexington insurance has opted to split insurance settlement and payments into three parts:
· An initial “advance” of $500,000, already received
· A payment of $417,000 toward expenses incurred from Hurricane France, already received
· A payment of the balance toward expenses incurred from Hurricane Jeanne, not yet received
COMMITTEE REPORTS
Fence Committee
This committee has not met. The committee will meet in the future to research fence stain colors, initial expense, the cost of regular upkeep, and sources of potential financing toward fence staining. Since funds are not currently available, their report is tabled until such time that they have done the research and have a report to give.
Beautification and Landscape Committees
These committees have not met following their formation last month. A Board member will volunteer to kick-start each of these committees and formulate projects to research and execute.
SEACREST SERVICES REPORT
James Mazzeo stated that 40 soffit lights have been replaced since the March Board meeting. Seacrest is now keeping an on-site inventory of soffit light fixtures so that outages reported through the work order process and at Board meetings can be remedied within a short time period. Due to the age of the fixtures, the entire fixture is being replaced, rather than only the bulb.
Duffy’s Landscaping will be conducting stump removal, the hurricane trim of our 400 hardwood trees, and the hurricane trim of our 580 palm trees – in that order – beginning Tuesday, May 3rd. Tree hangers will be addressed at the time of hardwood trimming. James is confident that he can also motivate the contractor to remove downed branches along the Military Trail perimeter, reported by one resident as a hazard, during their trimming process.
POA REPORT
Zane Heidlebaugh stated that there is no POA report this month, as the meeting was cancelled due to lack of quorum.
PENDING BUSINESS
Stump Removal and Hardwood & Palm Trim
Henry reported that the Association has accepted the bid of Duffy’s Landscaping at a cost of $30,402.00. Work will follow soon with stump removal, hardwood “10-to-2” and hurricane trimming, and a “10-to-2” palm tree trimming.
NEW BUSINESS
Interior Restoration Project Manager
Kurt stated that, due to community sentiment at the March 23, 2005 Board meeting to hire a certified project manager for internal restoration, the Board proposes to procure the services of William Kuhlke, a retired general contractor and insurance adjuster to represent the Association at the rate of $25 per hour for a maximum of 30 hours per week through the end of interior restoration. Mr. Kuhlke will provide a pricing guide to the Board, perform pre-inspections, post-inspections, oversee the activities of the chosen general contractor, and offer recommendations to the Board throughout the process. Dottie requested a motion to accept Mr. Kuhlke’s proposal. Henry seconded, and the Board accepted the proposal 5 – 0.
Interior Restoration General Contractor
Kurt stated that ACI has recently declined to general contract HV’s interior repairs. As a result, the Association instituted a search for a general contractor. Terry Graves of Paradise Development, a local, licensed, and seasoned general contractor, has proposed to perform these repairs at a rate of $48 per hour plus materials for drywall demolition and replacement, and cost plus 15% profit and 10% overhead for all other specialty work.
Terry’s proposals and activities will be overseen directly by the project manager and indirectly by the Board. Kurt requested a motion to accept Mr. Graves’ proposal. Dottie made such motion, with Henry seconding. The Board accepted the proposal 5 – 0.
City Water Backflow Preventer Repairs
By City of WPB ordinance, HV needs to have its backflow preventers inspected and, if necessary, repaired on an annual basis. Flamingo Plumbing, our contracted firm for this work, has inspected the backflow preventers and recommended three repairs at a cost of $1,885. A motion was made by Henry to accept Flamingo’s proposal. The motion was seconded by Dottie and passed 5 – 0.
30-Pound Dog Rule
During the 1990s, a past Board promulgated an addition to the Rules and Regulations banning dogs over 30 pounds from the community. The current Board recognizes that this rule has not been enforced, is unenforceable in a townhouse community setting, and serves as an additional and unnecessary liability to the community. Based on this premise, Kurt requested a motion to strike this rule from the Rules and Regulations. Such motion was made by Dave. Henry seconded, and the motion was carried 4 –1 by vote of the Board, with Diana dissenting.
Second Special Assessment
Kurt proposed that the Board call a Special Meeting prior to the next Board meeting to levy the second special assessment, with the amount of the second special assessment to be based upon, and projected from, the results of the first 10 damage assessments by the Association’s project manager, Bill Kuhnle. Kurt further proposed that the letter providing the required 14-day notification be mailed as soon as possible. Spirited discussion followed. A motion was not recommended at this time.
Interior Restoration Policies & Procedures
Kurt stated that the damages incurred by 10 owners who have provided proper documentation, including private insurance paperwork, are currently being attended to toward interior work. Another 29 homeowners, who offered faulty documentation, will be addressed following the provision of proper documentation. To this end, the owners who currently lack proper documentation will shortly receive a mailing designed to put them in legal standing for delivery of Association remediation in the form of a sworn affidavit of private insurance proceeds or prompting them one last time to provide their loss statement from their private insurance. Association action, or lack thereof, is up to the individual homeowner. As Kurt analogized, “No shoes, no service.”
Kurt noted that said owners lacking proper documentation of interior needs and private insurance remediation will not be served by the Association, as defined by the HV governing documents and inherent in the Board’s fiduciary responsibility to the overall community.
The meeting adjourned at 9:00 p.m.