MINUTES OF REGULAR MEETING OF BOARD OF DIRECTORS OF
SUMMERHOUSE BEACH & RACQUET CLUB
CONDOMINIUM ASSOCIATION, INC.
December 9, 2006
The Board of Directors of Summerhouse Beach & Racquet Club Condominium Association, Inc. held their regular meeting on Saturday December 9, 2006 at 9:00 AM at the offices of the Association. President Norm Breen called the meeting to order. Secretary Carol Vaneman took role call and declared a quorum.
Directors present were:
Phase I Bill Helman, Mike Langton, Don Trefry
Phase II Norm Breen, Don Coker
Phase III Mike Crothers, Robert Ford, Harry Balance
Phase IV Bob Mericle, Bob Wheeler, Carol Vaneman
Director Bill Carlson, Phase II, participated by teleconference. A number of owners were present at the meeting.
A motion by Carol Vaneman, seconded by Don Coker, to waive the reading of the October 21, 2006 minutes for the Board of Directors meeting and accept them as submitted passed unanimously.
General Manager/Rental Report. Keith Jones. See attached Manager’s report.
Mr. Jones presented an oral report from the Rental Board meeting held December 8, 2006. He reported that the rental unit evaluations are going well. Approximately 90% of the rental unit photos are now on the Website. The winter rental rates for 2008 will remain the same and weekly winter rental rates will be available on the Internet. The plan is to aggressively market the northeast this year to find new guests. A motion by Mike Langton to appoint Nancy Detwiler to the SRI Board to replace Board member Mike Langton was seconded and passed unanimously.
A motion by Mike Langton, seconded by Harry Balance, to allow Joan Wood until the next Board meeting in February to make full restitution in the amount of $311.56 before charges are filed passed by a majority of votes. Board Members voting yes were Bill Helman, Mike Langton, Don Trefry, Norm Breen, Don Coker, Bill Carlson, Mike Crothers, Harry Balance, Bob Mericle, Bob Wheeler, and Carol Vaneman. Bob Ford voted no. Mr. Jones will follow up on this matter.
Officers’ Reports
President. Norm Breen announced that Paradise Demolition named Summerhouse Condominium Association in a lawsuit with Belfor for not paying their demolition costs. President Breen said Belfor would defend against the suit. Our Attorney, John Geiger, has filed a brief asking for the charges against Summerhouse to be dismissed.
An ad hoc Finance Committee was formed to address the James Moore & Co. audit letter. The members appointed by President Breen are Bob Ford, Chairperson, Don Coker, Bill Carlson and Keith Jones.
Mr. Breen asked Bob Mericle to present an Insurance Report prior to the Treasurer’s Report. Mr. Mericle reported that Summerhouse has received the insurance renewal from Brown & Brown for 2007. A meeting is scheduled with agent Josh Becksmith December 20, 2006. The final total premium amount is unknown but expected to be about $400,000. The windstorm amount is expected to be $332,008. That is increased from $87,757 for 2006. Eighty percent of the total premium must be receive by January 21, 2007. After a lengthy discussion, Don Coker made a motion to call a special Board meeting January 13, 2007 to discuss financing the 2007 insurance premium. The motion was seconded and passed by a majority of yes votes. Casting yes votes were Bill Helman, Don Trefry, Mike Langton, Norm Breen, Bill Carlson, Don Coker, Bob Ford, Harry Balance, Bob Wheeler, Bob Mericle and Carol Vaneman. Mike Crothers voted no. Mr. Breen appointed Bill Carlson, Keith Jones and Don Trefry to work with Mr. Mericle on the Insurance Committee to address the many insurance questions and issues prior to the special Board meeting in January. The Committee will discuss financing the insurance premium; and ways to decrease insurance costs, such as adjusting the property value or increasing the deductible. The Committee will also research other full service insurance carriers. President Breen asked Bill Carlson to discuss insurance financing with Bank of America prior to the January Board meeting.
Vice President. Don Coker. No report.
Treasurer. Bill Carlson. See attached Financial Reports. A motion by Bill Carlson, seconded by Don Coker to accept the financial report for October as submitted passed unanimously. Mr. Carlson discussed the Bank of America accounts. See attached report. He reported he expects the investment accounts to earn approximately $48,000 over eight months, with the earned interest to be reinvested in each accounts. Carlson said a Reserve category has been added with $15,000 for each Phase to fund emergence repairs. Treasurer Carlson made a motion not to accept the professional Reserve Study recommendation for paving for the reason that after visual inspection by Board Members, the study doesn’t adequately reflect the status of the current situation. The motion was seconded and passed unanimously. Review of the Reserve Study will be placed on the agenda for the February Board meeting.
Secretary. Carol Vaneman reminded everyone of the get-together tonight at the Clubhouse to celebrate the end of a good hurricane season.
Committee Reports
Landscape. Keith Jones reported that the $15,000 landscape budget for 2007 will be divided with $5000 used for annuals, changed three times a year; $5000 used to replace shrubs and trees; and $5000 used on new projects. The Committee was asked to look at replacing the railroad tie wall at the southern end to the property. The Board decided not to fund a landscape reserve fund.
Architectural/Structural. Mike Langton. No report.
Bylaws/Documents. Bob Wheeler reported there is a non-conforming storm door in Phase IV. Mr. Jones will discuss this with the owner and see that the problem is corrected.
Welcome. Garry and Carol Vaneman, Steve and Lynette Tate. No report
Personnel. Don Coker. No report.
Clubhouse Update. See General Manager’s report.
Old Business
Action items for the General Manager from the October 21, 2006 Board meeting:
1. Overhang repair work continues using Hardie board and adequate ventilation.
2. French drain estimates not completed to date. Mr. Jones will continue to work on this project.
3. Mr. Jones reported that the project to compare the structural drywall inventory with the original plans for insurance purposes would be completed by the end of the year.
4. The second floor patios will be painted after painting the exterior stucco walls.
5. Mr. Jones is continuing work on obtaining bids for replacing the irrigation system.
6. Bill Helman reported on two Retractable (Phantom) screen doors. A motion by Bob Wheeler, seconded by Mike Crothers, to install the Larson Ultra Breeze screen door on the General Manager’s office door on a trial basis passed unanimously.
7. Rates for the Clubhouse will be investigated by Mr. Jones and be discussed at the February meeting. He will survey clubhouse use and charges at other nearby condominiums.
New Business
Insurance costs will be discussed at the special Board meeting January 13, 2007.
2007 Budget. See attached budget. A motion by Bill Carlson, seconded by Mike Crothers, to accept the proposed 2007 passed unanimously. Mr. Breen instructed Mr. Jones to have the maintenance fee coupon books sent to the owners; and to send a letter explaining the maintenance fees and informing them of the January 13, 2007 special meeting.
Painting bids. See attached report. A motion by Carol Vaneman, seconded by Bob Wheeler, to accept the Taylor Painting bid for $175,000 and to have the work done in the fall of 2007 passed unanimously. The Summerhouse maintenance staff will also paint the first floor patios after the stucco is painted.
Tennis court bids. See attached report. A motion by Bob Ford, seconded by Bob Wheeler, to accept the Stewart bid of $37,610 to refurbish the tennis courts passed unanimously. Mr. Carlson was empowered to make the necessary money transfers to fund the project.
Palm trees in courtyards. Beverly Abrams was present to talk about the placement of the new Washingtonian palms. After a discussion, Bob Ford made a motion to establish a policy that when a landscape feature obstructs the view to the ocean, the owner has the right to demand removal of the obstructing object in a timely manor. The motion was seconded and passed unanimously.
Employee Christmas gifts. The Board agreed by acclamation to give all the Summerhouse employees a $75 Christmas gift certificate.
The next regular Board meeting will be held at 9:00 AM on February 17, 2007. A special Board meeting will be held January 13, 2007.
The meeting was adjourned at 11:50 AM.
Action Items for the General Manager
Three bids for a new irrigation system with remote controls
Continue overhang repairs
French drain bids
Structural drywall inventory
Paint first and second floor patios after the stucco is painted
Barbecue grill policy
Follow-up with Joan Wood restitution
Non-conforming door Phase IV
Trial Larson Ultra Breeze screen door on GM’s Office
Investigate clubhouse rates and uses with other condominiums on the beach
Contract with Taylor Painting to paint stucco wall in the fall of 2007
Contract with Stewart Co. to refurbish the tennis courts.
Send a letter to the owners explaining the maintenance fees and special Board meeting
Maintenance fee coupons to owners
Christmas gift certificate to all employees
Other Action Items
Postpone discussion of a wireless Internet campus until June 2007
Clubhouse rental rates on the February agenda
Finance committee report regarding the James Moore letter
January 13, 2007 special Board meeting to discuss insurance premium financing
Bill Carlson to discuss with Bank of America about financing insurance premium
Reserve study on February agenda
Respectfully submitted,
Carol Vaneman, Secretary