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NASSAU HOUSE
ASSOCIATION
Board Members Present: Michel Pytlarz, Sandra DeCesare, Roy Regeski and Patrick Robinson. Board Members Absent: Dawn Jenkins Owners Present: 0 Michel called the meeting to order at 7:40 pm Response to Previous Minutes: Minutes to previous meeting were read and approved. Sandi stated we have been approved for the exemption on the pool drain. The landscaping has been completed. Per Thyssen Krupp, retrofitting of the elevator keys is not required as we have the box outside our building with all keys needed by the fire department. Treasurer’s Report: Michel read Treasurer’s Report:
Motion made and Treasurer’s report approved. Insurance Report: We met with Smith Watson Parker and received the renewal quotes. We are waiting for another agent’s quote but our renewal date is 11/28/09. One other agent said he needs 6-8 weeks and isn’t sure we will get what we want. In past years when we have gone out to bid, we always end up back with Smith Watson Parker. We haven’t had a dramatic increase in the premiums. Citizens required that we have an updated appraisal of our building; it came in at $20,151,600. Our contents coverage is only at $20,000 and Michel felt that needs to be increased; we received quotes for additional coverage amounts. To increase property insurance for contests to $30,000 cost is $125; for $50,000 cost is $250. Michel made motion to go with the $50,000 of coverage, motion seconded and approved. Travelers advised us there is a sub-limit of $25,000 for Law and Ordinance coverage on boiler and machinery policy. This limit can be increased for an additional premium, but they would need a value. Michel will discuss with Jim our insurance agent. Michel asked the board if $25,000 would be sufficient coverage. We have $17-$18,000,000 coverage for boiler and machinery, but they will only allow us $25,000 for costs to bring things up to code. We would need value of replacement cost for elevators, pump house, pool house, generator, etc. and won’t have the figures by our renewal date. We will look into that for next year. Michel made mention that if Citizens has a major payout they can do an assessment with all insureds. Forgery and Alterations quote is $136; motion made and approved to proceed with the quoted coverage. Board discussed whether to go with the 3% or 5% deductible on the wind policy. The premium for a 3% deductible is $147,345; for a 5% deductible the premium is $114,933. If our building is worth $20,000,000 then a 3% deductible would be $600,000 and we would need to come up with that figure by assessing owners. If we go with the 5% deductible, we would have to come up with $1,000,000. Michel broke down what the $147,354 premium would cost: Unit A $189 per quarter, Unit B $258, and Unit C $276. That’s about where we were last year. The $114,933 premium plan would be Unit A $147, Unit B $201 and Unit C $215. The difference per quarter would be Unit A $42, Unit B $57, Unit C $61. Board discussed whether we take a gamble and go with the 5% in order for owners to save $20 per month, meaning we would have to come up with a $1,000,000 deductible. Otherwise we would have to come up with $600,000 with the 3% deductible. This decision would be the determining factor on whether we can keep the maintenance at current amounts, or have to possibly increase it for 2010. Michel said he is on the fence on this and asked for board’s opinion. Sandi stated we are saving money on other items such as $2250 this year on landscaping as we will be planting flowers ourselves, $200 per month on pool maintenance, we saved $1700 for shutting off pool heater four months this summer, and we reduced Waste Management dumpster pickup to four days per week to save $250 per month. If city does the recycling, we may not need to increase our pickup days during the season. Michel made motion to go with the 3% deductible, increase Contents coverage to $50,000, add Forgery and Alterations coverage; motion seconded and approved. Budget – Submissions: Board went over the budget report. Maintenance income category shows the amount invoiced not the amount actually received; we had to set up a separate expense account for Unpaid Maintenance to offset. This year, we have $21,801 in unpaid maintenance; Michel had allowed for $10,600 so we are over budget by $11,000. Unfortunately, Legal Fees are $4500 over budget. Michel asked board to review last years budgeted amounts and compare with actual expenditures to see if they feel any figures need to be adjusted. Michel asked board members to submit their recommendations on budget, so he can then finalize. Michel will try to keep 2010 maintenance amounts as close as possible to current year. Elevators: We received inspection report for the elevators. There are a number of violations listed. We contacted Marcel at Direct TV to change location of his cable equipment. Retrofitting of the elevator keys was not even mentioned during the inspection. Board said most of the violations are covered under our maintenance contract with the elevator company. Landscaping Update: Michel told Sandi that the grounds are looking really good, and has heard a lot of positive comments from owners. Sandi reported we had a credit with Ted Connors for $1125; the original quote was incorrect as they forgot to add in some items so the actual price was $1760. After the credit, this left us at $635, then the $187 monthly flower credit for October, November and December will take care of most of the remaining bill. Sandi said we have a sinkhole and water leak in same area we had fire line problem last year. Michel said we didn’t concrete it last year, we filled in with sand. We will get PCA out here to repair. 902 Termite Problem & PH7 Window: Michel said this is one of the issues we need to bring up with our attorney whether or not we can we go in and force the repairs. Sandi said one of the vacant apartments has mold, and according to information she researched we have the right to enter a vacant or foreclosed apartment get control of an issue. PH7 put a piece of plastic to cover their broken window. Michel wants to find out from attorney if we have the right to get the window replaced and bill the owner for charges, and who will pay for getting rid of mold in a vacant apartment. Apt. 902 still has the termite problem even though the closets have been treated by Bug Off. Collection for the Michael Brewer Foundation We have collected and donated a total of $123.04. New Business: Delinquent Apartments: Roy said we should change our documents to state the board has the right to rent out the delinquent or foreclosed apartments, and use that rent money to pay the maintenance. Michel said you cannot do that as you first need to foreclose on the apartment. Doris’ building has foreclosed on an apartment and spent $3000 on the foreclosure, and went to city and bid on the foreclosure note for access for one year, every year after that they pay $100 to request access to lease the apartment for one more year. They need to paint and take care of the apartment, and have to pay the outstanding maintenance, in order to get the rent for one year. Once you foreclose on one apartment, you need to do it to the others that are delinquent. If we foreclose on the six vacant apartments, we would also have to foreclose on anyone living in the building that is late or short on their maintenance. Doris’ building has a 95 year old couple in another apartment that they need to foreclose on, and need to evict that couple. Even if you get access to the apartment for one year, the bank still has first mortgage. We would need to hire a company to manage the rentals, show the apartments and interview the renters, and that company would get a portion of the rental monies; or the board would have to manage those rentals. There are a lot of rentals available in the neighborhood so it may not be that easy to rent out the apartments. We have only 4% of all apartments in delinquency. Once a bank forecloses, we loose all rights to the apartment. We would need to change the documents to allow the condominium to be owner of the apartment and allow the condominium to rent them out. Roy and Sandi went to a seminar on the foreclosure process and were informed that we need to act quickly when placing a lien on the apartments because whoever places the lien first gets paid first. There could be several liens placed on the owner, for car payments or other loans. Roy wants to cut the attorney out of the scenario, and place the liens ourselves for $20. An apartment cannot be sold until they pay off our lien. Sandi said two apartments that were sent to the attorney have paid up on their maintenance, and the attorney is still charging us to monitor the bank foreclosure process on them. Board will decide whether we want to pay to monitor the bank foreclosure process, and see if we would lose any rights. Michel said he thinks that if we foreclose on the apartments, then the bank no longer owes us the back maintenance and the bank could come in the next day and do a short sale on the apartment. Unit 901: We’ve had complaints that this owner is hanging a mop head over his balcony. Another neighbor complained that he vacuums his balcony at 6:00 am. Board will send registered Cease and Desist letter to owner of unit 901 to appear before the Grievance Committee. Unit 404: We will file a lien on this apartment for non-payment of maintenance. The account will be sent to our attorney. Realtors cannot enter the apartment until we receive notification from owner of intent to sell the apartment. Rear Parking Lot Fence Treatment (On Hold) Procedures for New Owners and Renters: (Ongoing) Window or Shutter for Breezeway: (Ongoing) Hurricane Preparedness – State Requirements: (Ongoing) Fire Alarm System: (Ongoing) Replace Back Entrance Phone System: (Tabled) Permanent Posts for 5 Minute Parking Area: (Tabled) Motion was made to have the meeting adjourned and was seconded. Meeting adjourned at 10:30 P.M. Minutes taken from tape Cheryl Koski, Office Manager |
