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NASSAU HOUSE ASSOCIATION Board Members Present: Michel Pytlarz, Tom Puntillo, Marge Trani, Joe Hess, Tony DeCesare. 12 Owners present – Office Manager, Doris Michel opened the meeting and had Marge read the minutes of the previous meeting. Correction made on spelling word and minutes approved as read. Treasurer Report: Joe Hess gave the Treasurers report as follows: Checking: $34,060.00 – Savings: $28,233.33 - Special Assessment: $301,000 Report approved. Michel spoke after reading of minutes and stated that the lighting strike on the roof has been repaired and also that he is not satisfied with the sink hole at this point and he feels that the damage is due to the roof drain that inside the building, in the area of the sink hole. Maintenance to keep an eye on this and do further repairs if necessary. Hallway Painting: Contractor has been selected and waiting for a date as when to start. Suggested time to be when most of the owners are here so they can keep an open door to their unit while being painted. Building Insurance: Michel and Doris met with the Insurance Agent, Jim Vaught of Smith Watson and Parker to go over the insurance for this coming year, which starts in November. Michel said that they must leave about 10% amount because Citizens Insurance requires that all appraisals be done on the building within 18 months. The last appraisal was done 2 years ago and we are waiting for the new appraisal to come in. We must leave a least 10% more into the insurance budget in case they raise their quote due to a higher appraisal. Smith Watson and Parker based their quote on the old appraisal two years ago. Wind Insurance is the biggest item. Wind insurance is no longer in with the property insurance as it was in the past. It is a separate item completely. We have been quoted with a 3% deductible with a cost of $138,887 and a 5% deductible- $129,866. The difference would amount to $11.00 to 17.00 per quarter for each owner. With a 3% deductible we would have to come up with the first $450,000 and with a 5% $750,000. Citizens are the only carrier in the state to carry Wind Insurance. The rest of the insurance policy will stay just about the same as last years’ premium. Citizens Insurance requires that we pay them in full now, and not 9 equal payments as we do now. Smith Watson Parker will finance the insurance premium for us with monthly installments to them for 9 months. We have inquired with the bank for a loan and they suggested we stay with Smith, Watson, Parker and they would be just about the same but with closing costs on top of it. We have to come up with $20,833.00 deposit for wind insurance only by the end of the week. This increase was not planned on last year’s budget and now we face a short fall. We are lucky that we have money in our Special Assessment account to borrow this amount for deposit. We will have a 9 month payment due for $7,128.44 for property insurance and a check for $13,591.74 for the wind insurance. Flood Insurance is $8,021.00 for the year a one time payment. Total Annual Insurance Cost will now be $215,335.71. We may in the future to back to QBE Insurance on the wind insurance if the building comes in at a value of over $21,000,000 but their rates will only be about 10% less and they may require that all windows be replace with a high impact windows and/or shutters. Should another carrier become available, Citizens Insurance requires us to go to that carrier, refunding us the balance of our premium. If we Self Insured, we would be required to come up with a bond in the amount of the total amount of the face value of the building, i.e., $20,000,000 and the banks would require that this be ready at all times. Remember, Insurance is the main reason for the increase in maintenance. Specifically, Wind Insurance – However there is a possibility after the new appraisal comes thru it could increase an additional 10%. After a long discussion with the board, the board came to a unanimous vote to go with the 3% deduction. Marge made the motion to take the 3% deduction, seconded by Tony. After discussion, Joe Hess will contact Jim Vaught tomorrow morning and ask a few questions with him and we will give him our deposit. 2007 Budget: Proposal for budget given to each board member. Several items have gone up, apart from insurance, such as sanitation, water & sewer, pool gas, elevator and laundry expenses. Unexpected expenses for the pool heater and washer/dryer machines due to owners vandalism. Also, Michel feels that the board must leave sufficient monies in the budget to make up for this years increase in the insurance to protect us from the next year’s insurance premium due again on Nov. 28th. 2007. Doris looked up the year 1990 for which owners paid their maintenance and it went up from $197 on an A unit and to $275 for a C unit in 16 years, which the board believes is not bad at all. As of this writing the budget maintenance fees for the year 2007 will be the following: A Unit: $680.00 B Unit: $928.00 and a C Unit: $994 per quarter. Resurface of Parking Lot: Michel and the engineer for the parking lot have met again and final areas have been addressed. The final price for the parking lot will be $126,910.00. All car stops will be taken up during the paving and replaced. If any car stop breaks during this process, it will be an extra cost of $26.00 each. This might be an addition $4,000.00. The repaving does not include the area around the front park of the circle in front of the building. Pavers will be placed in that area for a cost of $20,310.40. A new contractor different from the one previously used will be doing the work. The new contractor will repair the damaged area in the rear of the building. Michel stated that he would like to have this work begin as soon as we can. The pavers will not be installed until after the paving is done. Joe made the motion to approve, seconded by Tony. Painting of Hallways: Coastal Painting has been contracted to paint the hallways, which we hope to have start before the end of the year. Marge made a motion to adjourn the meeting, seconded by Joe. |
