September 23, 2011
Click to download September 23, 2011 Minutes
FOUR WINDS BEACH RESORT CONDOMINIUM ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
SEPTEMBER 23, 2011
A meeting of the Board of Directors of Four Winds Beach Resort Condominium Association, Inc. was held at 10:00 A.M. on September 23, 2011. Present were President, Joe Walsh, Vice-President, Pat Webb, Secretary, Paul Erickson, Treasurer, John Tanner and Directors Del Gorecki and Chuck Govin. Also attending were Nancy Yoder, Four Winds General Manager, Kathleen Rhodes, Four Winds Realtor and Mary Kay Rasmussen, Bookkeeper. Present in the audience were Bobbie Erickson, Yvonne Gorecki, Jackie Walsh, Leo Christian, Garry Smith and Mr. and Mrs. Richard Kotal. Director Cunningham will arrive a little later in the morning. President Walsh called the meeting to order.
APPROVAL OF MINUTES
President Walsh asked the Board to review the minutes of the Board of Directors Meeting held on May 18, 2011. Director Govin moved to accept the minutes. The motion was seconded by Director Gorecki and passed unanimously.
TREASURER’S REPORT
President Walsh asked Treasurer Tanner to review the Treasurer’s Report with the audience. Treasurer Tanner discussed the balances in the Operating and Reserve accounts and also the Property Tax account and stated that overall we are in very good financial shape. His next item of discussion was the Reserve “Other” worksheet. This worksheet would become unnecessary if we put the categories in QuickBooks. We would create line items for each category and be able to post any activity directly to each individual account. There are a few categories that need to be eliminated from “Other” Reserves, i.e.: Landscape Timbers and Concrete Curbs. We also need to add Phone System to this Reserve section. A motion was made by Director Gorecki to remove the Landscape Timbers and Concrete Curbs from “Other” Reserves and add Phone System to ”Other”, discontinue the”Other” worksheet and put each of the “Other” categories as line items in QuickBooks. The Motion was seconded by Director Govin and passed unanimously. Secretary Erickson moved to approve the Treasurer’s Report. Vice-President Webb seconded the motion and it passed unanimously.
UNFINISHED BUSINESS
Amendment XIXB
Nancy explained that a proxy will be included in the October newsletter which will permit the owners to vote on Amendment XIXB of the Condominium Documents as well as to vote for the upcoming Board of Directors election. The Board strongly urges the owners to vote to delete this amendment and to continue ownership of Four Winds Beach Resort as it is now.
Tiki Hut (Pool Bar) Repairs
At one time, the Board discussed replacing the tiki hut. After consideration, it was decided to repair the hut rather than to attempt to get approval from the Town of Longboat Key. Nancy has taken a bid from Ed Stanley for this repair. Ed formerly worked for Four Winds in the Maintenance Department. He can begin the repair in December of this year. President Walsh suggested a cap on the repair at $20,000.00. Secretary Erickson suggested a fiberglass or PVC sink rather than stainless steel, due to the exposure to the salt air. The bid included a granite counter top with T 1-11 covering the counter space. Secretary Erickson stated his preference to cedar shakes for the roof rather than the shingles that were included in the bid. The Board had a brief discussion about the name “tiki-hut”. They all agreed that it should be called a Pool Bar. President Walsh inquired how we were to pay for the project. Treasurer Tanner stated that Operating will have excess money that we can apply to this repair, and we will expense the repair over 15 years in the budget. The excess money in Operating was partially due to refunds Nancy was able to get on Wind Insurance premiums paid this year and last year. Each year we fund operating with money from the Maintenance fees, and this is expensed over a twelve month period. After expenses, we have approximately $85,000.00 left and the Board has agreed to expense this repair out of this balance. We will also take another $30,000.00 from this amount and transfer to Reserves to replace windows, repair plumbing and other projects. Therefore, we can fund this repair from the Operating excess and place the balance in the Miscellaneous Contingency fund. Secretary Erickson moved to schedule the Pool Bar repair, not to exceed $20,000.00. The motion was seconded by Director Govin and passed unanimously.
Hot Tub Repair
Nancy received bids to stabilize the sagging corner of the hot tub and repair the cracks on the deck. A bid of $1,800.00 was received, which the Board felt to be a fair bid. This bid does not include finishing the deck, which will require an additional $3,000.00 when repairs are complete. Treasurer Tanner moved to accept the bid of $1,800.00. The motion was seconded by Secretary Erickson and passed unanimously.
Studio Tile and Vanities
There are 13 studios left to tile and replace the bathroom vanity cabinets. Nancy requested approval from the Board to purchase the tile in advance, as we did with the one bedroom units. By doing this, all the tile in the studios will be the same. The supplier will store the tile in his warehouse as he did in the past. The vanities can be built with drawers, or with cabinets on either end with space in the center for a vanity stool. President Walsh asked Nancy and Kathleen which they preferred. Both responded that they would prefer drawers for storage. A motion was made by Secretary Erickson to purchase the tile and the vanities with a few minor changes. The motion was seconded by Director Gorecki and passed unanimously. Nancy will update the insurance to include the tile storage at the warehouse.
NEW BUSINESS
Treasurer Tanner discussed the need for window replacement. Nancy was able to get bids on this project. The bids were broken out in two phases, one for the center building, and one for the two wings. In the Building Restructure section of Reserves, we will have a total of $120,000.00 as of January, 2012. The condition of the windows is bad as air comes through them. Leo Christian asked if we would get a tax break by purchasing these energy efficient windows. Treasurer Tanner stated that we possibly might get a reduction in the Wind Insurance, but not a tax break. For an additional cost per window, there is an insulated low heat option available with a gas between the window panes. The purpose of this option is to keep out cold, and also keep a bit of heat out. The double pane window is also available with a piece of membrane between the panels of glass. This option makes the glass shatter proof. The Board agreed on the option of two panes of glass, tinted grey, with a membrane between the glass panels. A motion was made by Director Gorecki to accept the bid from Shutter Vue to begin with Phase One as soon as possible. The motion was seconded by Director Govin and passed unanimously.
Furniture Inventory
In order to standardize the units, Nancy worked up an inventory list of items that should be in each unit. People tend to loan items to other units when needed and do not return them. Furniture should never be moved from unit to unit. We do have additional chairs available if extra seating is needed. When we buy new furniture, we will not purchase any extra chairs. The current extras will still be available. In the June, 2012 newsletter, the President of the Board will mention the Board’s decision that furniture may NOT be moved from unit to unit. Nancy and Kathleen will finalize the inventories before the May, 2012 meeting. Leo Christian stated that the soffits are showing wear due to age. Nancy said that she is working with Sutter Roofing and is aware of this problem. Treasurer Tanner pointed out an area of barrel tile on the second story that needs to be painted.
BUDGET
Health Insurance
The Board previously discussed not providing Health Insurance for new employees. Since one of our front desk employees is leaving, the subject has been revisited. The Board discussed deferring this discussion until the May meeting. However, we do have a new employee starting at the front desk, so a decision needs to be made. President Walsh stated that the Health Insurance issue needs to be addressed now, since the new employee will start in November of this year. Nancy stated that the new hire is someone currently working part time for us. Director Govin stated that we need to have something in place now, for the new employee. In the May meeting, a further discussion will be held to set new parameters for employee benefits. Director Tanner suggested that we offer a $300.00 per month reimbursement to cover the cost of the new employee’s insurance. The employee would then be responsible for their own insurance. Treasurer Tanner stated that there are three options: (1) Do not offer any insurance; (2) Continue the current policy that the Company pays 90% and the employee pays 10%; or (3) Offer up to $300.00 reimbursement to all employees and let them secure their own insurance. Director Govin agreed with Treasurer Tanner’s options, and also stated that if the employee chose not to secure insurance, we would still have to offer the $300.00 reimbursement per month to each employee to keep all benefits equal. President Walsh suggested that we break for lunch at 11:45 A.M. and return at 1:00 P.M.
BUDGET (continued)
Treasurer Tanner discussed the Option C Budget for 2012. He stated that we are funding $14,000.00 more in Miscellaneous Contingency in 2012 than we did in 2011. We were able to do this by Nancy’s ability to keep expenses under Budget for the last two years and due to the refunds she was able to obtain from the Wind Insurance Premium. There is enough in Reserves to purchase the additional tile to finish the Studios.
Unit A
The Board briefly discussed the pros and cons of an increase in the rent for Unit A, since it has been three years since the last increase. Treasurer Tanner stated that he would rather have the current rental income than none at all, which could happen. Kathleen suggested a visit with Jose, the owner of the restaurant, to discuss his intentions. Currently the lease is an annual roll over with a 5% increase. Director Govin suggested a roll over every two years with a 5% increase. Treasurer Tanner suggested a conversation with Jose, tell him we appreciate his continued business and that we are not going to increase his rent. Director Govin felt a conversation with Jose might prompt him to ask for additional benefits not included in his lease. After continued discussion, it was decided to send the December invoice to Jose, including a 5% increase, and wait for his reaction.
New Employee
President Walsh inquired when the new Front Desk employee is starting. Nancy stated that she currently works on Sunday evenings and will be replacing Deb on November 5, 2012. President Walsh was concerned that a conclusion was not reached regarding the Health Insurance for the new employee. Nancy stated that the new employee was checking with her current employer about the cost to continue with the coverage they provided.
Replacement Furniture
Samples of bedroom furniture were brought to Four Winds by Sean Baumann of Dubois Furniture. Bobbie Erickson had pictures of the samples that she shared with the Board members. Sean suggested that we purchase one bedroom set and use the furniture in a unit. The price would be higher than if we purchased a large quantity of sets, but a rebate would be issued after we made the larger purchase. If we could get the sample room set up by the November Board meeting, then all Board members would be able to see it. The cost of the furniture is $1393.00, which includes a King headboard, 2 night stands, a six drawer dresser and a mirror and includes a 5 year warranty. Nancy suggested unit 402, since the bedroom furniture needs to be replaced. Treasurer Tanner moved to equip Unit 402 with the new bedroom furniture. The price should not exceed $2,000.00 and should include a 5 year warranty. The motion was seconded by Director Cunningham and passed unanimously.
The Budget has been presented and a motion was made by Director Govin to accept Option C as the Budget for 2012. The motion was seconded by Director Gorecki and passed unanimously.
President Walsh reminded the Board that the Annual Meeting will be held on November 15, 2011.
ADJOURNMENT
A motion was made by Secretary Erickson to adjourn the meeting. The motion was seconded by Director Gorecki and passed unanimously.
Respectfully submitted,
Mary Kay Rasmussen for Secretary Erickson
10/3/11