Minutes

UNapproved Minutes of the Annual Meeting

Annual Meeting Minutes

January 16, 2011, 2:00 – 4:00 PM

1. Call to order

2. Roll Call; quorum achieved

3. Introductions

4. Approve Minutes of 2010 Annual Meeting

Motion to approve the Minutes:	Jörg Mellmann
Second:	Cindy Carswell
Motion Carried.	Minutes approved.

5. President’s Report

6. Treasurer’s Report

• Tricia has worked hard to get everyone current on dues.  There are a few owners who continue to carry a substantial balance on their account, but most of the smaller accounts have been paid up.  She has worked with an attorney on the Sore’s account and made use of small claims court and garnishment of wages when possible.  She has begun a good work that the new Treasurer will surely want to continue.
• Tricia presented a fiscal summary of the year and the current  Accounts Receivables
• There were some questions about the larger accounts receivable, which Tricia addressed.
• For the Sores, there is currently no communication because they are out of the country and do not reply to any attempts to be in contact.  We learn from others present that the Sore’s business manager has quit and is no longer responsible for collecting rent or managing the property.  The Association has a lien on the Sore’s unit, but it is a defacto lien that won’t mean anything to the Association until the Sores try to sell the unit.  At the time of the closing on such a sale they would have to declare the debt to the Association (this is federal legislation) so, before the loan is paid off in the closing, the Association account will be satisfied.  The Sores are renting their unit out.
• The suggestion is offered that we should notify the bank that holds their mortgage that there is a lien on their property.  And that it’s being rented.  Town hall may be a good place to find out who the mortgager is so that we can let them know.  Look at the tax records and see if the property tax has been paid and see if we can find out who holds the mortgage.  Fred and Larry will work together on finding out this information and will communicate this information to the Board.
• Another option for cases like this, depending on our threshold, is foreclosure.  Foreclosure, at this point, is probably not practical given the relatively low amount due (less than $5,000) compared to the value of the property.  This route would be costly in legal fees and time spent and may or may not yield any benefit to the Association.  We have also considered trying to garnish the rent via the bank, but haven’t been successful.  There is likely to be a way to garnish the rent, but it will be through the court, not the bank.  Their insurance may also be interested to know that the property is being rented.
• For the Pouliots, there is a small claims court judgment on a set amount designed to help them pay up on their arrearage.  The amount garnisheed is less than a month’s dues, and there are no payments coming for current dues so their account continues to grow.
• A question was raised about whether or not the budget proposal includes the cost of a management company which it does not.  The Board has begun inquiring into the possibility of hiring a company to handle the day-to-day running of the Association; collect dues, pay bills, collect delinquent accounts, and even get contractor bids for larger projects.  The Board wasn’t prepared to make a presentation because not enough information has become available so far – most of the companies contacted either don’t want the business or simply don’t return calls.  A management company is an investment in our homes.  We need someone local.  If we decide to do this we should have a search committee to define scope and relationship with such a company.
• The general feeling is positive toward looking into a management company.  Slightly over half of those present expressed a willingness to pay a little more in order to hire help.
• Small claims court requires a relentless pursuit and even if there is a court order to pay, it falls on the Board/Treasurer to go after the funds.  Unless it goes to garnishment, getting a judgment is just a piece of paper.
• Thank you to those who have set up payment schedules to cover their debt, and honored this responsibility.   As a courtesy, when people go this route, we have waived interest fees.  If payments are late, we still assess the late fee.
• It is suggested that we set a threshold for where (at what dollar value) we will pursue foreclosure.  There is no further discussion.  This is something we can discuss again next year as we continue to collect as best we can.
• What about changing the rules (Bylaws) so that things don’t get this far out of control?  Tricia explains that the Association has a process for dun letters and small claims and follows due process.  The bylaws support these actions.

The question comes up whether or not we have the right (as a Board) to ask who owner insurance companies are.  Could we have the “declaration page” sent in to the Board as proof of insurance, from each owner?  It is noted that we are not obligated by law to carry such insurance and it is not in the bylaws.  No final decision is made.

Tricia hands out a card that includes the website, PO Box information, and an e-mail address that is “generalized” to the Board.  It goes to the board, not individual recipients, and can easily pass from one Board to the next.  This g-mail account is also where Tricia has begun moving treasurer-related documentation for future Board access.

Debra needs a copy of the Bylaws.  Erika will print a copy for her.

7. Presentation of the Proposed Budget

Motion to approve the Budget:	Tricia Chatary
Second:	Larry Johnson
Motion Carried.	Budget approved.

Discussion: where does the property manager fit into the budget?  The Board did not come prepared to make a presentation, but to open a dialogue about the viability and desirability of having a manager, if this is something that we’re interest in.

Joan: the Board should be policy makers.  The Board, as it is, does not have the time to even get to the policy making place.  They spend all their time doing the everyday work of collecting dues, paying bills, hiring contractors, and listening to owner’s issues; all valid and important parts of the Board’s responsibility, but none are policy-making.

The expense (of a management company) is a concern and shared among many owners…hiring a manager sounds scary.  A clearer picture of what the annual and per unit expense would be is necessary.  There is also concern that hiring a management company would mean giving up some of our control over what we like or don’t like.

Suggested – a facilitator whose job it is to track down contractors.  This could be a paid person or volunteer.

Non-binding vote to show interest in a management company;  a few against even investigating further, more than half of those present are interested in researching this further given the assumed cost of $15-20 per unit per month.  The interest and willingness is there, but more research will be required.

8. Establishment of 2011 Monthly Condominium Fee at $150.00

Motion to approve the Fee:	Sybille Saunders
Second:	Judy Brown
Motion Carried.	Fee approved.

9. Proposal to set aside $7,344.00 ($17/unit/month) for the next fiscal year earmarked “roof”.

Motion to earmark “Roof”:	Cindy Carswell
Second:	Mary Lou Humphries
Motion Carried.	Earmark approved.

10. Nomination and Election of Board Members
1. One-year term

• Fred Barnes volunteers
• Larry Johnson motions to elect Fred to one-year term.
• Connie Billings second.
• Motion carried.  Fred is elected to one-year term.

2. Second year of a two-year term

• Yvon Pouliot volunteers.  He is challenged because it is felt by some that Board members should be owners “ “in good standing” and not those who chronically carry a balance.  Yvon withdraws.
• Maggie Buell is nominated for the remainder of this term by Tricia Chatary and agrees to run.
• Joan Stephens seconds.
• Motion carried.  Maggie is elected to the balance of this two-year term

3. Second year of a two-year term

• Debra Davison volunteers
• Joan motions to elect Debra to the balance of this two-year term.
• Mary Lou seconds.
• Motion carried.  Debra is elected to the balance of this two-year term.

4. Three-year term

• Erika Mellmann volunteers
• Tricia Chatary motions to elect Erika to a three-year term.
• Joan Stephens seconds.
• Motion carried.  Erika is elected to a three-year term.

5. Three-year term

• No one volunteers, and efforts to nominate people were unsuccessful.  This position remains vacant.

11. Other Business
1. Fred would like to revisit the discussion about changing the Bylaws so that new owners cannot buy units to be rental property.  This is because property value goes down with the increased level of renters, and the impact that this has on the ability of borrowers to get conventional mortgages.  There would be a grandfather clause for those who currently own.  The general mood seems to be that this may not be legal or even desirable as it would limit the pool of potential buyers.  There isn’t much interest in this discussion.
2. Fred; revisits the gutter in the front of his unit/building; it was damaged by Gary when he did the roof and repaired, but Fred says it’s too low causing water to rush over the top of the gutter.
3. #3 Woodbridge needs to have her front stoop fixed
4. #26 Woodbridge needs to have her deck inspected (and replaced) since it has fully pulled away from the building.

12. Adjournment

Motion to Adjourn:	Tricia Chatary
Second:	Fred Barnes
Motion Carried.	Meeting adjourned.