MINUTES OF KONTIKI CONDOMINIUM PHASE I OWNER’S MEETING
November 13, 2010
Meeting was called to order by Scott Schomburg at 9:09 a.m.
1. Members in attendance:
Chris and Karra Crowley (101, 708)
Ardath Bruner (102)
Dan and Lisa Madsen (105)
Chuck and Sandy Madsen (107)
Alan and Angela Koemel (108)
Larry Biggers (201)
David and Shandra Pastucha (204)
David Schneider (205)
Linda Fehler and Deb Canuteson (209)
Jim and Deb Canuteson (210)
John Chupik (301)
Gerald and Barbara Weiss (303,403,405)
Dave and Hanne Wright (307)
Randy Schulte (308)
Jim and Jeannine Vater (401)
Dale Denton (402)
Wally and Bunnie Montgomery (406)
Maghsoud Tahmoressi (407)
Betty Brooks (502)
Lamar Weiss (503)
Scott Schomburg (504)
Paul and Christine Westburg (505)
Murlin and Pat Tomlinson (506)
Leo and Nancy Chafin (507) *Left early, gave proxy to Larry Biggers
Keith Sanders (508) *Left early and gave proxy to Betty Brooks
Ray and Debbie Luna (601)
Pat Noack (602) *Left early, gave proxy to Larry Biggers
Dustin Martinez (605)
Robert Strait (701)
Jay Lambrecht (704)
Hans, Olaf and Bridget Granheim and Mimi Duprey (707)
Pete and Joyce Velasquez (710)
Steve and Jane Bernhard (711)
Vic Baltov (712)
Proxy held as follows:
Larry Biggers (103, 104, 106, 202, 206, 304, 408, 603, 703)
Scott Schomburg (302, 306, 606, 705)
Karra Crowley (404, 608, 706)
Randy Schulte (305)
Betty Brooks (508)
54 owners were present, representing 52 units out of 62.
Others present: J.R. Gimler (property manager), Christy Aguirre, Tom Sheridan (attorney to Chris and Karra Crowley, Nick Johnson and Garry Cate (Johnson & Cates office)
2. Opening Statement: Scott Schomburg, Association Secretary, introduced the board members in attendance. Karra Crowley, Jim Canuteson, Rob Mabe and Scott Schomburg. Also in attendance was Nick Johnson and Garry Cate from Johnson & Cates office. Scott thanked them for all their hard work in preparing the information packets sent out to the owners prior to the meeting.
3. Conducted roll call: Using a roll call sheet, attendance was taken to establish who was present, represented by a Proxy or absent. It was decided that a unit under contract has the right to vote. 36 owners were present, representing 53 units out of 62.
Minutes from the November 8, 2009 meeting were unanimously accepted.
4. Insurance Discussion: The HOA insurance policy purchased from Angie Ruddock with Commercial Insurance Services was effective in August and will run for one year. No one from CIS was available to attend the owners meeting. The Board will have Angie attend a future meeting to review the insurance details with the owners. After some discussion of the insurance coverages it was proposed by Angela Koemel (unit 108) that the HOA form a committee headed by Gerald Weiss (unit 303) to research insurance options.
Over the years there has been an issue with the collecting of the insurance payments. At one point, the insurance company was collecting payments from individual owners. Currently they are requiring that the HOA pay the full amount in one lump sum. Since the insurance bill comes out so close to the time it is due, it is difficult to collect all monies due from each owner in time to make the payment by the due date. It was proposed to create an insurance escrow account to hold the $75,000 in order to pay the full amount when it is due. Scott proposed that the HOA pool the funds from the three savings accounts that are not being used into the account. It was proposed and approved by a show of hands to add an additional $108 to the monthly maintenance dues to collect the remaining monies needed. $108 per door will be paid over 7 months (January to July) to collect the funds to pay the insurance premium in a lump sum when insurance is due. Once the payment is made, there will be an insurance premium assessment to collect the prepayment for the insurance due the following year.
5. Energy Conservation: With rising energy costs, Scott has looked into ways to conserve energy and improve the energy efficiency of the condos. He recently found an area in his attic that was not insulated and he installed insulation. This has reduced his heat gain significantly.
The board will be establishing a standard for owners to follow when replacing or upgrading windows or sliding glass doors in order to maintain a consistent appearance and energy efficiency.
6. Pier: Due to the loss of the Phase I pier this past summer, there are two options as to what to do to regain the fishing space there was before. As per the GLO contract, Phase I is required to removed the old pier within 90 days of it being destroyed.
Option 1 was to remove and rebuild the old pier. The estimated cost for removal is $10,700. The estimated cost to rebuild is $200K (cost: $10,700 + budget of $200K).
Option 2 is to remove the old pier and enhance the Phase II pier by adding 5 turnouts and 5 new 400 watt lights. The total cost of the enhancement will be split with Phase II 60/40(cost for Phase I is $10,700 + $8,550).
It was asked that Phase I ask Phase II to assist with the removal of the old Phase I pier. Scott explained that would not be an option since that pier is the Phase I owners’ responsibility.
It was approved to remove the old pier at a cost not to exceed $10,700. It was also approved to enhance the Phase II pier by adding 5 new turn outs. There will be 2 on the north side, 3 on the south side and add 5 new 400 watt lights to the south side of the pier.
7. Breakwater: Due to the design of the breakwater it has not been effective in stopping the shoaling of sand in the channel. Repairs have been made to stop any further unraveling of the whalers and shoreguard and additional bolts have been installed through all of the shoreguard to prevent further damage.
It was proposed that Phase I, Phase II and Sea Shell Shores pay a special assessment to hire an engineering firm that specializes in coastal engineering to assess the condition and propose options to slow the migration of sand into channel due to the current breakwater design problem. The estimated cost for Coast and Harbor Engineering out of Austin, TX is $25,000. With the current design of the breakwater, future dredging that will need to be done in the next 2 years will potentially cost $120K to $150K and will continue to need to be done every 2 to 3 years.
It is proposed that if approved, the Phase I HOA Board members will research all the options to have an engineer perform a study of the breakwater at a cost not to exceed $25,000.
The total cost will be divided between Phase I, Phase II and Sea Shell Shores.
The total assessment for Phase I will be $215.52 per door.
8. Discuss option to pay off Crowley Loans: There is a long to-do list of items and small projects around the property that has been put together over time. The price per item or project is fairly low, but at this time the budget is tight and there isn’t enough money available to complete the items on the list. Currently the HOA is paying $4,108 per month to pay off the loans made by Chris and Karra Crowley from 2006 to 2009. The total balance as of this month is $64,187. With the tight budget the HOA has, paying off the loans in full would free up the funds needed to complete some of the work on the to-do list. In order to pay them off in full there would be an assessment of $1,053 per unit. The option to assess only $500 per door was also mentioned. That would bring the balance down to around $30,000. There would be about $2,000 available monthly, but interest would still be paid on the $30,000.
9. WIFI: The demand for WIFI service in rental properties is rising. More and more guests are asking for it and the signal we currently have is very low. There are two bids for WIFI service. The WIFI fee will be paid monthly by the HOA from the operating budget.
Cobianet
$620 per month
3-5 Mbps
30 day notice to discontinue service
Rockport WIFI
$620 per month
4-6 Mbps
Initial payment of $2480 required at installation to be applied to first 4 months of service. No cancellation fee beyond 1st 4 months of service.
Larry Biggers made a motion to select Rockport WIFI. This was seconded and passed unanimously.
10. TV/Cable: The current cable provider is Charter Cable. That company has sold and we are on a month to month contract at our old rate. With the poor picture quality of the current service, the board is looking into other cable providers available in the area. When a new contract is signed, the board will negotiate to have all new cable lines run through all units to update the cable system. Direct TV is an option, but is very costly for the set up and requires additional equipment to be placed in all units.
11. Irrigation System: The midsection of property is fully irrigated, timed and automated. All of the other areas are turned on manually and the system is in poor condition. The estimated cost to get all other areas fully irrigated, timed and automated is $11,000. There was a concern about renters and guests parking in the grassy area across from the 700 building and along the access road. If a new irrigation system is installed in that area, the installer will place the sprinkler heads 12 inches from the HEB fence line set to spray toward the entrance road.
12. Repainting Skirting and Trim: The skirting and railings were not prepped correctly (primed) when they were painted several years ago. Due to this the paint is peeling off at a very fast rate. Paul Westburg gave some additional information on what could be causing the paint to peel and gave his recommendation of what to do. His recommendation is to leave it for two more years and let it wear off on its own. When the time comes to repaint, a paint that is specifically designed for that purpose will be used and a painter that guarantees his work will be hired. If someone were hired now to pressure wash the railings and skirting, all of the loose paint would be removed, but the paint that is not loose will remain. If remaining paint is painted over, it will continue to peel. It is recommended to let the paint come loose on its own over a couple of years and reassess the situation at that time.
With the work done properly, it should last up to 15 years. With the mildew that is forming around the railings it would be good to pressure wash and remove it in-house. There are also some areas around windows that were not sealed properly which is causing moisture to build inside the walls. If the re-paint is to be done in two years, these areas will need to be repaired before the painting is done. This work can be done over time in-house. It was approved to allow the board to do what it will take to maintain and repair the railings and skirting until it is time to repaint.
13. Front Beach Work:
· The front beach erodes quite a bit every year and more sand has to be brought in to refill it. The sand that is eroding is washing into the channel and adding to the shoaling problem. The proposed solution is to install a concrete spillway that will divert the runoff water into the bay instead of the channel.
· It is recommended that the old tie backs along the front beach bulkhead be encased in concrete which will prevent corrosion of the tie backs. They also serve a second purpose by helping slow the water flow and sand movement as to not have as much running off into the bay.
· The concrete cap that runs along the front beach has also been damaged and a large section of it has broken off. It has been recommended to remove the entire cap and have it reinstalled at an estimated cost of $13,300. This would also include the cost of the new spillway at the south end of the beach.
· There is a large post at the end of the old pier that was installed by Rob. The pier has been destroyed, but the post is still in excellent condition and there are lighting fixtures still attached to it. Included in the price to remove the old pier is the removal and replacement of this post to the corner of the channel to put more lighting on the channel. What is not included is some of the electrical work to carry power to the lights on the post. Wiring can be run from the 300 building.
· Due to the condition of the wiring and current lighting at the cabana at the end of the 300 building, it was proposed to update the wiring and install a new light on the cabana to attract more fish and give more light out over the channel.
14. Real Estate Discussion: Scott has spoken with Richy Ethridge about the HOA purchasing the .3 acre piece of property that Richy owns in front of the pier at the north end of the 100 building. As of now, Scott has not heard anything back about a price for the property. It is appraised at around $50,000. The reason for the HOA purchasing this land is to gain control of all properties that are landlocked within Phase I. The downside to that purchase would be that Phase I would be responsible for maintaining the bulkhead and that area of land which would become costly.
15. Audit Committee Report: Last year at the owners meeting an owner suggested to form an Audit Committee to have the financial records reviewed for the past 3 years. A formal audit has not been done in at least 5 years. Alan Koemel went over the committee’s findings. The committee met with the accountant and was provided with the receipts and records for the past 3 years that were available. Some of the bank statements were provided, but some were not available. There is a list of (21) twenty-one recommendations that has been provided to all owners to implement controls in order to assure proper accounting procedures. Some of these recommendations have already been implemented. Scott has been reviewing all invoices before they are being paid. There are several invoices that are recurring costs every month, including garbage service and cable that do not need to be reviewed.
16. Discuss Option of Formal Audit: A formal financial audit has not been performed for many years. David Schneider presented some information and his recommendation. There are different types of audits. There are financial audits and operational audits. A CPA can be hired to conduct an audit, but his recommendation was to implement more controls from this point on. David Schneider would be happy to work with Johnson and Cate’s office to implement those controls. Larry Biggers and Alan Koemel will join David Schneider on the new Audit Committee.
17. Landscape Committee Report: Angela Koemel gave the Landscape Committee report. Angela and Betty Brooks have been working to replace plants in bare areas of the beds in front of the buildings and have planted Honeysuckle that was provided by J.R. A local nursery had a sale and they were able to use their budgeted funds to purchase 21 Dwarf Oleanders and 3 Queen Palms. A long term goal would be to clean up the area around the dumpster area and possibly transplant some plants from around the property. Some of the plants that are beginning to hang out over the sidewalks can be used in this area. Also they would like to incorporate some of the recycled materials from the old pier in the landscaping around the property.
18. Long Range Planning Items:
· Swimming pool-The swimming pool is undersized for the amount of use during the summer. To remove the pool and install a new one that is larger is an estimated $65,000 to $70,000. This is a long term goal just for discussion to see where we may be going in the future.
· On-site Rental Management office-Another long term recommendation would be to open an on-site rental management office to manage the rentals of the Phase I condos. This was done many years ago. At an owners meeting in 1993 it was approved to assess for an office building to be built on the Phase I property to use as the rental office. Before an office was built, it was decided to move a resident manager into unit 704. This benefited both the owners that rent their units and those that do not. The commission on the rentals would be drastically reduced resulting in a better income for renting owners. Since management fees would be covered by the rental income, non-renters would be spared this expense. All owners would benefit from on-site management from a security and operational oversight presence.
· Electronic Access Gate-Due to the investments in our property and the enhancements of our assets we are experiencing an ever increasing number of interlopers. This will only increase as we make Kontiki a more beautiful place. One way to protect our investment is to install an access gate near the front of the road that comes back to Phase I. Here is a brief description of how it could work: During the summer, keep the gate open from 7:00 am to 11:00 pm. During the winter, keep it closed at all times. Give each owner two remotes (garage door opener). The gate would have a key pad to allow access. Owners could be notified of the gate access code on an annual basis for the coming year. Renters use the code to get it.
19. Treasurer’s Report: (Karra Crowley) 2011 Budget Assumptions-
· Salaries and security: Amounts shown reflect 75% of the actual total. Phase II reimburses Phase I for 25%
· Lawn Service: Annual contract with Tony's Lawn Service is $974.00 per month
· Fixed expenses: Trash, Legal & Professional, Property Manager Expense, WIFI, TV/Cable
· Variable Expenses: Water, Sewer, Electricity
Karra presented the two budget options. One with the Crowley loans paid off in January 2011 which would leave a surplus of $15,000 at the end of the year and allow the $4,000 a month of available funds to be used to employ a part time employee to complete maintenance in house and complete some of the projects on the to-do list. The other option is to continue to make monthly payments on the loans until paid off in 2014 which will leave a surplus of $9,800 at the end of the year.
20. Review Dues/Assessments: With the assessment to pay off the Crowley Loans, it will not be necessary to increase monthly dues.
Scott presented a spreadsheet with each item listed showing all projects that have been proposed to show the total cost with each item to be voted on individually or as a whole.
· Coastal Harbor Engineering-$25,000--$215.52 per door
· Enhancement of Pier-$8,550--$145.16 per door
· Removal of Old Pier-$11,000--$177.41 per door
· Pay Off Crowley Loans-$65,000--$1048.38 per door
· Irrigation-$12,000--$193.54 per door
· Bulkhead-$4,000--$64.51 per door
· Build of Spillway-$10,000--$161.29 per door
A motion was made by Larry Biggers to approve a $2,000 assessment per door to pay for all the items listed. There was a 2nd to the motion made by Ray Luna. The motion was approved by a show of hands with the assessment to be billed mid December 2010 and due January 2011.
The total dues that are each month for the first seven months of 2011 will be $378 per month. This amount includes the Monthly Maintenance dues of $270 and the Insurance assessment of $108.
21. Who to call list: Over time there have been some question as to who to call with maintenance problems within the units and outside the units. Owners have been unsure who to call to have repairs done. A current "who to call" list will be sent out with the next billing.
22. Election of New Board: 3 Positions Available
Owners that expressed interest in those positions were:
Ray Luna Unit 601 for position 1-- Accepted by Acclamation
Jeannine Vater Unit 401 for position 2-- Accepted by Acclamation
Pete Velasquez Unit 710 for position 3--Accepted by Acclamation
Butch Porter Unit 206 for position 4 (1 year remaining for this term)
Alan Koemel was nominated from the floor for position 4 (1 year remaining for this term)
A Ballot election was held for position 4 and Alan Koemel won.
23. Other Business: No new business
Meeting Adjourned at 2:12pm.
November 13, 2010
Meeting was called to order by Scott Schomburg at 9:09 a.m.
1. Members in attendance:
Chris and Karra Crowley (101, 708)
Ardath Bruner (102)
Dan and Lisa Madsen (105)
Chuck and Sandy Madsen (107)
Alan and Angela Koemel (108)
Larry Biggers (201)
David and Shandra Pastucha (204)
David Schneider (205)
Linda Fehler and Deb Canuteson (209)
Jim and Deb Canuteson (210)
John Chupik (301)
Gerald and Barbara Weiss (303,403,405)
Dave and Hanne Wright (307)
Randy Schulte (308)
Jim and Jeannine Vater (401)
Dale Denton (402)
Wally and Bunnie Montgomery (406)
Maghsoud Tahmoressi (407)
Betty Brooks (502)
Lamar Weiss (503)
Scott Schomburg (504)
Paul and Christine Westburg (505)
Murlin and Pat Tomlinson (506)
Leo and Nancy Chafin (507) *Left early, gave proxy to Larry Biggers
Keith Sanders (508) *Left early and gave proxy to Betty Brooks
Ray and Debbie Luna (601)
Pat Noack (602) *Left early, gave proxy to Larry Biggers
Dustin Martinez (605)
Robert Strait (701)
Jay Lambrecht (704)
Hans, Olaf and Bridget Granheim and Mimi Duprey (707)
Pete and Joyce Velasquez (710)
Steve and Jane Bernhard (711)
Vic Baltov (712)
Proxy held as follows:
Larry Biggers (103, 104, 106, 202, 206, 304, 408, 603, 703)
Scott Schomburg (302, 306, 606, 705)
Karra Crowley (404, 608, 706)
Randy Schulte (305)
Betty Brooks (508)
54 owners were present, representing 52 units out of 62.
Others present: J.R. Gimler (property manager), Christy Aguirre, Tom Sheridan (attorney to Chris and Karra Crowley, Nick Johnson and Garry Cate (Johnson & Cates office)
2. Opening Statement: Scott Schomburg, Association Secretary, introduced the board members in attendance. Karra Crowley, Jim Canuteson, Rob Mabe and Scott Schomburg. Also in attendance was Nick Johnson and Garry Cate from Johnson & Cates office. Scott thanked them for all their hard work in preparing the information packets sent out to the owners prior to the meeting.
3. Conducted roll call: Using a roll call sheet, attendance was taken to establish who was present, represented by a Proxy or absent. It was decided that a unit under contract has the right to vote. 36 owners were present, representing 53 units out of 62.
Minutes from the November 8, 2009 meeting were unanimously accepted.
4. Insurance Discussion: The HOA insurance policy purchased from Angie Ruddock with Commercial Insurance Services was effective in August and will run for one year. No one from CIS was available to attend the owners meeting. The Board will have Angie attend a future meeting to review the insurance details with the owners. After some discussion of the insurance coverages it was proposed by Angela Koemel (unit 108) that the HOA form a committee headed by Gerald Weiss (unit 303) to research insurance options.
Over the years there has been an issue with the collecting of the insurance payments. At one point, the insurance company was collecting payments from individual owners. Currently they are requiring that the HOA pay the full amount in one lump sum. Since the insurance bill comes out so close to the time it is due, it is difficult to collect all monies due from each owner in time to make the payment by the due date. It was proposed to create an insurance escrow account to hold the $75,000 in order to pay the full amount when it is due. Scott proposed that the HOA pool the funds from the three savings accounts that are not being used into the account. It was proposed and approved by a show of hands to add an additional $108 to the monthly maintenance dues to collect the remaining monies needed. $108 per door will be paid over 7 months (January to July) to collect the funds to pay the insurance premium in a lump sum when insurance is due. Once the payment is made, there will be an insurance premium assessment to collect the prepayment for the insurance due the following year.
5. Energy Conservation: With rising energy costs, Scott has looked into ways to conserve energy and improve the energy efficiency of the condos. He recently found an area in his attic that was not insulated and he installed insulation. This has reduced his heat gain significantly.
The board will be establishing a standard for owners to follow when replacing or upgrading windows or sliding glass doors in order to maintain a consistent appearance and energy efficiency.
6. Pier: Due to the loss of the Phase I pier this past summer, there are two options as to what to do to regain the fishing space there was before. As per the GLO contract, Phase I is required to removed the old pier within 90 days of it being destroyed.
Option 1 was to remove and rebuild the old pier. The estimated cost for removal is $10,700. The estimated cost to rebuild is $200K (cost: $10,700 + budget of $200K).
Option 2 is to remove the old pier and enhance the Phase II pier by adding 5 turnouts and 5 new 400 watt lights. The total cost of the enhancement will be split with Phase II 60/40(cost for Phase I is $10,700 + $8,550).
It was asked that Phase I ask Phase II to assist with the removal of the old Phase I pier. Scott explained that would not be an option since that pier is the Phase I owners’ responsibility.
It was approved to remove the old pier at a cost not to exceed $10,700. It was also approved to enhance the Phase II pier by adding 5 new turn outs. There will be 2 on the north side, 3 on the south side and add 5 new 400 watt lights to the south side of the pier.
7. Breakwater: Due to the design of the breakwater it has not been effective in stopping the shoaling of sand in the channel. Repairs have been made to stop any further unraveling of the whalers and shoreguard and additional bolts have been installed through all of the shoreguard to prevent further damage.
It was proposed that Phase I, Phase II and Sea Shell Shores pay a special assessment to hire an engineering firm that specializes in coastal engineering to assess the condition and propose options to slow the migration of sand into channel due to the current breakwater design problem. The estimated cost for Coast and Harbor Engineering out of Austin, TX is $25,000. With the current design of the breakwater, future dredging that will need to be done in the next 2 years will potentially cost $120K to $150K and will continue to need to be done every 2 to 3 years.
It is proposed that if approved, the Phase I HOA Board members will research all the options to have an engineer perform a study of the breakwater at a cost not to exceed $25,000.
The total cost will be divided between Phase I, Phase II and Sea Shell Shores.
The total assessment for Phase I will be $215.52 per door.
8. Discuss option to pay off Crowley Loans: There is a long to-do list of items and small projects around the property that has been put together over time. The price per item or project is fairly low, but at this time the budget is tight and there isn’t enough money available to complete the items on the list. Currently the HOA is paying $4,108 per month to pay off the loans made by Chris and Karra Crowley from 2006 to 2009. The total balance as of this month is $64,187. With the tight budget the HOA has, paying off the loans in full would free up the funds needed to complete some of the work on the to-do list. In order to pay them off in full there would be an assessment of $1,053 per unit. The option to assess only $500 per door was also mentioned. That would bring the balance down to around $30,000. There would be about $2,000 available monthly, but interest would still be paid on the $30,000.
9. WIFI: The demand for WIFI service in rental properties is rising. More and more guests are asking for it and the signal we currently have is very low. There are two bids for WIFI service. The WIFI fee will be paid monthly by the HOA from the operating budget.
Cobianet
$620 per month
3-5 Mbps
30 day notice to discontinue service
Rockport WIFI
$620 per month
4-6 Mbps
Initial payment of $2480 required at installation to be applied to first 4 months of service. No cancellation fee beyond 1st 4 months of service.
Larry Biggers made a motion to select Rockport WIFI. This was seconded and passed unanimously.
10. TV/Cable: The current cable provider is Charter Cable. That company has sold and we are on a month to month contract at our old rate. With the poor picture quality of the current service, the board is looking into other cable providers available in the area. When a new contract is signed, the board will negotiate to have all new cable lines run through all units to update the cable system. Direct TV is an option, but is very costly for the set up and requires additional equipment to be placed in all units.
11. Irrigation System: The midsection of property is fully irrigated, timed and automated. All of the other areas are turned on manually and the system is in poor condition. The estimated cost to get all other areas fully irrigated, timed and automated is $11,000. There was a concern about renters and guests parking in the grassy area across from the 700 building and along the access road. If a new irrigation system is installed in that area, the installer will place the sprinkler heads 12 inches from the HEB fence line set to spray toward the entrance road.
12. Repainting Skirting and Trim: The skirting and railings were not prepped correctly (primed) when they were painted several years ago. Due to this the paint is peeling off at a very fast rate. Paul Westburg gave some additional information on what could be causing the paint to peel and gave his recommendation of what to do. His recommendation is to leave it for two more years and let it wear off on its own. When the time comes to repaint, a paint that is specifically designed for that purpose will be used and a painter that guarantees his work will be hired. If someone were hired now to pressure wash the railings and skirting, all of the loose paint would be removed, but the paint that is not loose will remain. If remaining paint is painted over, it will continue to peel. It is recommended to let the paint come loose on its own over a couple of years and reassess the situation at that time.
With the work done properly, it should last up to 15 years. With the mildew that is forming around the railings it would be good to pressure wash and remove it in-house. There are also some areas around windows that were not sealed properly which is causing moisture to build inside the walls. If the re-paint is to be done in two years, these areas will need to be repaired before the painting is done. This work can be done over time in-house. It was approved to allow the board to do what it will take to maintain and repair the railings and skirting until it is time to repaint.
13. Front Beach Work:
· The front beach erodes quite a bit every year and more sand has to be brought in to refill it. The sand that is eroding is washing into the channel and adding to the shoaling problem. The proposed solution is to install a concrete spillway that will divert the runoff water into the bay instead of the channel.
· It is recommended that the old tie backs along the front beach bulkhead be encased in concrete which will prevent corrosion of the tie backs. They also serve a second purpose by helping slow the water flow and sand movement as to not have as much running off into the bay.
· The concrete cap that runs along the front beach has also been damaged and a large section of it has broken off. It has been recommended to remove the entire cap and have it reinstalled at an estimated cost of $13,300. This would also include the cost of the new spillway at the south end of the beach.
· There is a large post at the end of the old pier that was installed by Rob. The pier has been destroyed, but the post is still in excellent condition and there are lighting fixtures still attached to it. Included in the price to remove the old pier is the removal and replacement of this post to the corner of the channel to put more lighting on the channel. What is not included is some of the electrical work to carry power to the lights on the post. Wiring can be run from the 300 building.
· Due to the condition of the wiring and current lighting at the cabana at the end of the 300 building, it was proposed to update the wiring and install a new light on the cabana to attract more fish and give more light out over the channel.
14. Real Estate Discussion: Scott has spoken with Richy Ethridge about the HOA purchasing the .3 acre piece of property that Richy owns in front of the pier at the north end of the 100 building. As of now, Scott has not heard anything back about a price for the property. It is appraised at around $50,000. The reason for the HOA purchasing this land is to gain control of all properties that are landlocked within Phase I. The downside to that purchase would be that Phase I would be responsible for maintaining the bulkhead and that area of land which would become costly.
15. Audit Committee Report: Last year at the owners meeting an owner suggested to form an Audit Committee to have the financial records reviewed for the past 3 years. A formal audit has not been done in at least 5 years. Alan Koemel went over the committee’s findings. The committee met with the accountant and was provided with the receipts and records for the past 3 years that were available. Some of the bank statements were provided, but some were not available. There is a list of (21) twenty-one recommendations that has been provided to all owners to implement controls in order to assure proper accounting procedures. Some of these recommendations have already been implemented. Scott has been reviewing all invoices before they are being paid. There are several invoices that are recurring costs every month, including garbage service and cable that do not need to be reviewed.
16. Discuss Option of Formal Audit: A formal financial audit has not been performed for many years. David Schneider presented some information and his recommendation. There are different types of audits. There are financial audits and operational audits. A CPA can be hired to conduct an audit, but his recommendation was to implement more controls from this point on. David Schneider would be happy to work with Johnson and Cate’s office to implement those controls. Larry Biggers and Alan Koemel will join David Schneider on the new Audit Committee.
17. Landscape Committee Report: Angela Koemel gave the Landscape Committee report. Angela and Betty Brooks have been working to replace plants in bare areas of the beds in front of the buildings and have planted Honeysuckle that was provided by J.R. A local nursery had a sale and they were able to use their budgeted funds to purchase 21 Dwarf Oleanders and 3 Queen Palms. A long term goal would be to clean up the area around the dumpster area and possibly transplant some plants from around the property. Some of the plants that are beginning to hang out over the sidewalks can be used in this area. Also they would like to incorporate some of the recycled materials from the old pier in the landscaping around the property.
18. Long Range Planning Items:
· Swimming pool-The swimming pool is undersized for the amount of use during the summer. To remove the pool and install a new one that is larger is an estimated $65,000 to $70,000. This is a long term goal just for discussion to see where we may be going in the future.
· On-site Rental Management office-Another long term recommendation would be to open an on-site rental management office to manage the rentals of the Phase I condos. This was done many years ago. At an owners meeting in 1993 it was approved to assess for an office building to be built on the Phase I property to use as the rental office. Before an office was built, it was decided to move a resident manager into unit 704. This benefited both the owners that rent their units and those that do not. The commission on the rentals would be drastically reduced resulting in a better income for renting owners. Since management fees would be covered by the rental income, non-renters would be spared this expense. All owners would benefit from on-site management from a security and operational oversight presence.
· Electronic Access Gate-Due to the investments in our property and the enhancements of our assets we are experiencing an ever increasing number of interlopers. This will only increase as we make Kontiki a more beautiful place. One way to protect our investment is to install an access gate near the front of the road that comes back to Phase I. Here is a brief description of how it could work: During the summer, keep the gate open from 7:00 am to 11:00 pm. During the winter, keep it closed at all times. Give each owner two remotes (garage door opener). The gate would have a key pad to allow access. Owners could be notified of the gate access code on an annual basis for the coming year. Renters use the code to get it.
19. Treasurer’s Report: (Karra Crowley) 2011 Budget Assumptions-
· Salaries and security: Amounts shown reflect 75% of the actual total. Phase II reimburses Phase I for 25%
· Lawn Service: Annual contract with Tony's Lawn Service is $974.00 per month
· Fixed expenses: Trash, Legal & Professional, Property Manager Expense, WIFI, TV/Cable
· Variable Expenses: Water, Sewer, Electricity
Karra presented the two budget options. One with the Crowley loans paid off in January 2011 which would leave a surplus of $15,000 at the end of the year and allow the $4,000 a month of available funds to be used to employ a part time employee to complete maintenance in house and complete some of the projects on the to-do list. The other option is to continue to make monthly payments on the loans until paid off in 2014 which will leave a surplus of $9,800 at the end of the year.
20. Review Dues/Assessments: With the assessment to pay off the Crowley Loans, it will not be necessary to increase monthly dues.
Scott presented a spreadsheet with each item listed showing all projects that have been proposed to show the total cost with each item to be voted on individually or as a whole.
· Coastal Harbor Engineering-$25,000--$215.52 per door
· Enhancement of Pier-$8,550--$145.16 per door
· Removal of Old Pier-$11,000--$177.41 per door
· Pay Off Crowley Loans-$65,000--$1048.38 per door
· Irrigation-$12,000--$193.54 per door
· Bulkhead-$4,000--$64.51 per door
· Build of Spillway-$10,000--$161.29 per door
A motion was made by Larry Biggers to approve a $2,000 assessment per door to pay for all the items listed. There was a 2nd to the motion made by Ray Luna. The motion was approved by a show of hands with the assessment to be billed mid December 2010 and due January 2011.
The total dues that are each month for the first seven months of 2011 will be $378 per month. This amount includes the Monthly Maintenance dues of $270 and the Insurance assessment of $108.
21. Who to call list: Over time there have been some question as to who to call with maintenance problems within the units and outside the units. Owners have been unsure who to call to have repairs done. A current "who to call" list will be sent out with the next billing.
22. Election of New Board: 3 Positions Available
Owners that expressed interest in those positions were:
Ray Luna Unit 601 for position 1-- Accepted by Acclamation
Jeannine Vater Unit 401 for position 2-- Accepted by Acclamation
Pete Velasquez Unit 710 for position 3--Accepted by Acclamation
Butch Porter Unit 206 for position 4 (1 year remaining for this term)
Alan Koemel was nominated from the floor for position 4 (1 year remaining for this term)
A Ballot election was held for position 4 and Alan Koemel won.
23. Other Business: No new business
Meeting Adjourned at 2:12pm.
posted by Kontiki at 8:43 PM
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