(Not yet approved by the full Board.)

 

FOUR WINDS BEACH RESORT CONDOMINIUM ASSOCIATION, INC.

BOARD OF DIRECTORS MEETING

MAY 20 & 21, 2008

 

 

A meeting of the Board of Directors of the Four Winds Beach Resort Condominium

Association, Inc. was held at 10:00 AM, on May 20, 2008 at the resort.  Present were President Joe Walsh, Vice-President Pat Webb, Secretary Paul Erickson, Treasurer John Tanner, Directors Bill Cunningham, Del Gorecki and Chuck Govin, General Manager Nancy Yoder, Assistant Manager Larry Claypool, Four Winds Realtor Kathleen Rhodes, and new bookkeeper Mary Kay Rasmussen.  In the audience were Four Winds owners Mr. & Mrs. Bill Schroeder, Jackie Walsh, Yvonne Gorecki, Karen Tanner, Bobbie Erickson and Garry Smith.

 

President Walsh called the meeting to order.

 

APPROVAL OF MINUTES

After the Board members were introduced to the audience, Larry distributed copies of the minutes for the last Board meeting, November 7, 2007.  President Walsh asked everyone to review the minutes, and then called for approval of the minutes.  Vice-President Webb moved that the minutes be approved and the motion was seconded by Director Govin and carried, with all Board members voting aye except Director Gorecki, who abstained due to his not having been at the November meeting.

 

FINANCIAL BUSINESS

2007 Audit

President Walsh called upon Nancy Yoder to discuss the 2007 audit.  Before discussion, Nancy reminded the Board members that she had previously furnished them each with a copy of the audit.  Nancy stated that the audit was good and that she was happy with the auditor.   It was also pointed out that Resort was running under budget so far this year.  Secretary Erickson moved that the audit be accepted and Director Cunningham seconded the motion.  It was passed unanimously.

 

Treasurer’s Report

Treasurer Tanner presented his report on the status of funds held by the Association.  He drew the Board’s attention to the SunTrust Operating Money Market, which had a balance of $548,000 (at a rate of 2.75% at the end of April), and suggested that we buy two CDs to reduce the balance in the account.  He explained that the interest will not be much, but that the Board will be protecting the money.  Secretary Erickson moved that the Association purchase two 3 month CDs and check with Bank of America and other local banks, perhaps Wachovia.   The motion was seconded by Director Gorecki and carried unanimously.

 

Ratification of Reserve Transfers

Treasurer Tanner made a motion to ratify the changes in Reserve funding built into the 2007 Budget.  Secretary Erickson seconded and it was unanimously approved.

 

Director Govin asked about the Assessment Receivable item ($14,462) on the Treasurer’s Report.  Part of these delinquent fees is from 2007.  It was suggested by President Walsh that the 2007 amounts should be written off.  Mr. Claypool explained that the 2007 and 2008 delinquencies can be separated.  Mrs. Rhodes stated that part of this amount includes two foreclosed units, which have subsequently been sold, and, due to the amount collected in the sale, some of the fees will be have to be considered a loss.

 

UNFINISHED BUSINESS

Furniture/Refurbishing Committee Report

On behalf of the Committee, which consists of Vice President Webb, Director Cunningham, and herself, Nancy reported that the work most needed in the units was replacement of the kitchen cabinets.  She explained that some kitchens have never been redone.  She said that she had full bids on doing the 16 kitchens (8 studios and 8 two-bedrooms) the Committee considered in worst shape.  President Walsh said the studios get the biggest beating in usage and reminded everyone that prior discussion had been concerned with redoing all 14 studio kitchens.  President Walsh asked if the Budget could handle all 14 studios, and Treasurer Tanner acknowledged that it could.  President Walsh asked Nancy specifically what she recommended.  Nancy argued that some 2 bedroom units were in worse shape and needed to be done before some of the studios, and recommended that the Board do the 16 units specified by the Committee.  Treasurer Tanner suggested that the murphy bed cabinet doors and kitchen cabinets be replaced at the same time, so that they would match with the studio kitchen cabinets. Secretary Erickson said the Board should only fix what is broken, and not do all.

 

When the issue of scheduling the work was raised, Nancy recommended doing as much of the work as possible on vacant units, for instance when they are unoccupied due to not having been rented.  One of the contractors said they need two days to complete the work, and would like to do four units per week.

 

Treasurer Tanner explained that the Reserve fund for kitchen remodeling currently has $35,388, while bathtub reserves have $22,436 and shower reserves have $20,000.  He suggested that the Board transfer money from tubs and showers to fund the kitchen work. Nancy asked the Board to approve an expenditure of $70,000.  Director Gorecki made the motion, seconded by Director Govin and carried unanimously, to approve the work proposed in the 16 units for $70,000, stipulating that the additional funds mentioned (from bathtubs and showers) be transferred to kitchen cabinets.

 

The Board discussed Treasurer Tanner’s proposal to fix up the Murphy beds so that they look new.  Treasurer Tanner assured the Board that there was enough money to do both the murphy beds and cabinets.  Director Cunningham moved that we move forward with this project.  The motion was seconded by Director Gorecki and passed unanimously.

Treasurer Tanner suggested that if he were able to confirm the funding for the project, the Board consider doing all of the studio cabinets with the murphy bed cabinets, possibly over a teleconference.  Color of the cabinets and Murphy beds was discussed.  Nancy recommended brown cabinet facing with white tile.  Director Govin made the motion, seconded by Director Gorecki, that, pending approval of the actual cost and funding by teleconference, that the Association move ahead with the replacement of all the murphy bed faces and kitchen cabinets, so that they match.

 

Payroll

Secretary Erickson reported he had nothing final for Board at this time.  Based on longevity of the employees at the resort, he said the current payroll seems very fair.  He would like to do a comparison with surrounding resorts.  It was decided that Secretary Erickson would complete his research and it would be finalized during the aforementioned teleconference.

 

Penthouse TVs

President Walsh re-introduced the subject of replacing the existing large penthouse televisions with HD flat screens.  After discussion it was decided to table the TV replacement.

 

NEW BUSINESS

Fourth Floor Roof Replacement

Nancy explained that she had two bids on replacing the main building’s roof.  Rather than replacing the entire roof, the roofers suggested a Fiber-Tite coating that is placed over the current roof and comes with a ten year warranty.  One bid came in at $41,350 and the other at $36,435.  For more durability, fasteners were suggested, and a bid including those was expected by fax at any time.  The new roof treatment should reduce the cost of windstorm insurance.  The decision was put off until the follow up meeting on May 21.

 

Computer Management Software

Mr. Claypool explained the state of the current resort management software, which he developed and was now outdated and causing trouble.  He recommended that, as he was leaving the resort in August, it would be advisable to replace old system now, so that he would be able to oversee the transition and to help train the staff.  He explained the qualifications of the package he recommended the Board purchase and pointed out that, at $7,000, the software was quite affordable.  He also explained that representatives of the software company would be onsite the following morning.  The Board put off any decisions on the software issue until the meeting the next day.

 

Rental Commissions

President Walsh recommended that the Board increase the commission on rentals paid to the Resales office from 4% to 8%.  During the course of discussion, Director Gorecki suggested 6% this year and 8% next year, then 10% the following year.  Ultimately, Secretary Erickson moved for the immediate increase to 8%.  Director Cunningham seconded the motion, which then carried unanimously.

 

Replacement of Fire Alarm System

Nancy explained that she had bids to replace the current alarm system for $24,000 and $28,000.  She said she had spent $4800 on repairs to date.  President Walsh emphasized that repairs can be done now without further Board authorization.  It was decided to leave the decision on full replacement of the alarm system until the September meeting.

 

Operating Budget & Contingency Fund

Treasurer Tanner explained that Nancy has reported mold and mildew in the ducts, and had already spent $4,800 in repairs.  Treasurer Tanner suggested that the Board use the contingency fund to cover the cost of mildew repairs and the computer software program.

 

Nancy then presented the final bid for the roof fasteners from Manson Roof ($8,247).  The bids were $44,682 (Manson) including the fasteners, and $41,350 (Sutter) without the fasteners.  Nancy explained that she would prefer to give the contract to Manson Roofing.  Director Cunningham made the motion, seconded by Treasurer Tanner and approved unanimously, to accept the Manson Roofing bid.

 

President Walsh adjourned the Board Meeting until 9:30 AM the following day, May 21, 2008, at which time President Walsh called the meeting to order.  All Board Members were present.

 

CONTINUED BUSINESS

Computer Management Software

Greg Swain and Joe LeClaire from Bay Lakes Information Systems were present to discuss their proposal to replace Four Winds’ existing property management software with their own Lodgical Solutions package.  The two gentlemen explained their company’s history and background and answered questions from both the Board and the audience.  They assured Treasurer Tanner that the system will eventually be compatible with QuickBooks, and that there will be no charge for that additional functionality.  At President Walsh’s request, Mr. Claypool explained that he and Nancy had looked at cheaper as well as more expensive systems, none of which had been an improvement over the Four Winds’ current system.  However, the proposed system, in his estimation, was a good package that can be learned easily enough and will more than fit the Resort’s needs.  Treasurer Tanner moved that we purchase the software at the quoted price of $7000.00 and an annual maintenance fee of $1050, with a cost of living increase assumed.  The motion was seconded by Director Cunningham and approved unanimously.

 

Pool Regulations

President Walsh introduced the subject of accidents in the pool by little children.  He asked the Board to consider amending the existing pool regulations and the implementation of fines to prevent, or reduce, these accidents.  During the course of discussion, the Board was resolved that, due to the time it takes to clean the pool and the chemicals needed to bring water back in balance, a charge should be assessed to a Renter or exchanger via their credit card and an owner should be billed immediately.  If unpaid, the charge will be added to annual assessment.  If the bill is still unpaid, an owner would be blocked use of his or her unit either here or through RCI.

 

After passing the gavel to Vice President Webb, President Walsh moved that the sign at the pool listing the rules of use should be amended saying that, “If an accident occurs, a fine of $100.00, plus cost of cleaning will be charged.”  His motion was amended to state that anyone causing the pool to be closed and cleaned will be fined $100.00.  The motion was seconded by Director Gorecki and carried unanimously.  Vice President Webb returned the gavel to President Walsh. 

 

Employee Benefits

Nancy recommended an increase in benefits to the employees.  Due to turnover in the maintenance department, she suggested that all employees be awarded $200 after five years of continuous employment.  Additionally, she suggested that the employees receive $100 each year after five years. The Board considered various ideas regarding incentive bonuses and there was a thorough discussion of the matter.  Eventually, Director Gorecki made the motion to pay a $500 bonus every 5 years, on the employee’s anniversary date.  This bonus will be retroactive for current employees and will be included in the next paycheck.  The motion was seconded by Director Cunningham and passed unanimously.

 

Other Business

Treasurer Tanner told the Board that it had enough money to cover mold and mildew repairs that Nancy referred to earlier.  He made the motion, seconded by Director Cunningham to transfer the necessary funds to cover those repairs and the new software from the Board’s contingency fund. The motion passed unanimously.

 

It was clarified that it would be left to Nancy to decide which vendor to select for the kitchen cabinet work.

 

ADJOURNMENT

A motion was made by Vice President Webb, seconded by Director Gorecki, and passed unanimously to adjourn the meeting.  The next meeting of the Board of Directors will be held on September 9 & 10, 2008.

 

Respectfully submitted,

Mary Kay Rasmussen, for Secretary Erickson

5/28/2008