Minutes of Aug 24, 09, Board Meeting.

IMPORTANT NOTE: WHILE PROOF READING THIS POST, I STARTED EDITING AND ADDING POINTS THAT I THOUGHT HAD BEEN MISSED. CONSEQUENTLY THIS IS NOT A EXACT COPY OF THE MINUTES. WHERE MAJOR ADDITIONS WERE MADE I TRIED TO NOTE THAT THIS WAS AN ADDITION & NOT IN THE ORIGINAL MINUTES. MISS-SPELLINGS AND GRAMMATICAL CHANGES WERE MADE WITHOUT ANY SPECIAL NOTES.

l. ESTABLISH A QUORUM/ROLL CALL: Drago Kahanu (501W), President/Treasurer, Millie Kelley (402E), Director, Robert Klamo (602W), Director, Joseph Martucci (405W), Vice President and
Carmen Walsh (705W), Secretary.

2. CALL TO ORDER: Meeting was called to order at 6:05 P.M.

3. APPROVAL OF THE AUGUST 7, 2009 MEETING MINUTES: Motion to waive reading made by Millie Kelley and seconded by Joseph Martucci. Motion carried unanimously. Motion to approve minutes made by Millie Kelley and seconded by Joseph Matucci. Motion carried unanimously.

4. FINANCIAL REPORT: Drago Kahanu

a. The July, 2009 financial statements: are complete and available. Master, East and West accounts are under budget for the month and year. The balance in the operational accounts as of the end of July 2009, was: Master -$ 28,167.00 East - $24,630.00 West - $22,085.00 Total - $74882.

If you would like a copy, contact Client Services 727-573-9300 or E-Mail (info@condominiumassociates.com). You can also go to www.condominiumassociates.com and download a copy.

b. Colonial Bank Update: Kahanu stated that for the record he wanted to updated the Board on the history of how ITC’s funds were moved to Schwab, what the current disposition of funds is and what the final disposition of funds will be. Kahanu stated that from Thursday, Aug. 6, 09, to Friday, Aug 7, 09, the information on Colonial’s viability went from bad to terrible. Colonial had lost their prospective buyer, the feds were investigating their mortgage subsidiary for fraud, and they had inform the SEC that they would not be able to file their quarterly financial reports. On Friday, Aug. 7, 09, it was reported that Colonial would have to cease operations as soon as Wednesday, Aug. 12, 09. During the weekend of Aug. 8-9, 09, the Board and Finance Committee were advised of the situation and the need to move ITC’s funds out of Colonial, as quickly as possible. On Sunday, Aug. 9, 09, Condominium Associates (CA) was notified to be ready to transfer funds from Colonial to Charles Schwab, the target date for the transfer was set the Monday, Aug. 10, 09. (NOTE: Kahanu picked Schwab because it was the only financial institute he knew well and felt comfortable with. The Kahanu’s had accounts with Schwab since late 1970’s. Schwab has excellent 24/7 customer service support. Charles Schwab had personally come out of semi-retirement to run the company, and in that process stopped Schwab from getting into the real estate mortgage/derivative market.) On Monday, Schwab establish thirteen new accounts for ITC ( one for every account ITC had at Colonial). Additionally, based on input from CA it was decided NOT to transfer all the funds on Monday. (NOTE: CA was concerned about the following: first, ITC would pay around $780, in CDAR cancellation penalties, CA recommended that ITC let the CDARS mature and then transfer the funds to Schwab. CA stated that the CDARS guaranteed the funds, and therefore there was no risk. Secondly, CA was very concerned about disrupting the maintenance fee payment system, which used coupons and a lock box at Colonial. Finally, they were concerned about the disruption of money transfers between the lock box and the operational accounts. If there was a problem here, ITC’s ability to pay bills might be hampered. Based on CA’s input it was decided to transfer as much of the funds as possible without disturbing the CDARS, or the flow of funds from maintenance fees through the Colonial’s lockbox, & into the ITC’s operational accounts at Colonial.) On Tuesday, approximately, 45% of ITC’s funds actually transferred over to Schwab. The CDARS & the lockbox were not disturbed, and enough money was left in the operational accounts to pay the weekly bills. This left approximately 55% of ITC’s funds at Colonial. Also, on Wednesday, it was announced that the Feds had gotten BB&T to buy Colonial. (NOTE: Per Richardson, 701W, who had been researching banks for the Board, BB&T was the most financially sound bank he had reviewed.) Colonial/BB&T is a viable bank and the pressure to move all ITC’s fund had been minimized. On Thursday, Aug. 13, 09, ITC’s fund disposition was as follows: Colonial/BB&T, 55%, Schwab, 45%, and there were instruction in place to continue to the orderly transfer funds (from matured CDARS) as they became available. The question now became, what does ITC do now that BB&T has purchased Colonial? The answer is a modified plan for the future is as follows:
1) ITC’s funds continue to be diversified between two financial institutes. Currently, this will be Colonial/BB&T, and Charles Schwab. This will spread the risk and reduce the fund exposure at either account. The Colonial funds will be insured by the FDIC for up to $250,000. The Schwab funds will be insured by the SPIC for up to $500,000 ($100,000, cash, and $400,000, securities).
2) ITC will continue to maintain the same number of mirror image accounts at Colonial/BB&T and Charles Schwab. This will allow ITC the flexibility to move funds between the two if we needed to.
3) The fund concentration at each institute will be base on the primary activity performed by each institute. Colonial/BB&T activity will focus around the lock box and operational accounts. All the bill paying and daily financial operations will be performed out of Colonial’s operational accounts. The Charles Schwab activity will focus around the reserves and special assessment accounts. Check writing out of these accounts will be on a minimal as needed basis. Most of the funds will be maintained in CD’s & Treasuries.
4) The current fund split of 45% Schwab, and 55% Colonial. However, this should change over time to 55% Schwab, and 45% Colonial. This is because there are Reserve account CDARS at Colonial. Once they mature, the funds will be transferred to Schwab, and that will cause the fund percentages to change.

Kipka (305E) asked what kind of interest rate we were getting? Kahanu stated that the interest rates in the money market accounts were very low, and CD’s were not much better. Kahanu reminded everyone that ITC was a non-profit entity. Consequently, the primary consideration was the protection of ITC’s principle, not making as high a return as possible. ITC’s funds were entrusted to the Board by the membership, and any risk to that principle was unacceptable. Therefore, the only place the funds should be invested is CD’s & treasuries. Kahanu also stated that the one concern about having Schwab Brokerage accounts was the vast range of available investment products and Schwab’s outstanding 24/7 customer support. These accounts are currently profiled as ultra conservative; however, sometime in the future, when the market is going up and up, a future Board thinking they were “smarter than the average bear” might try to make money for the Association, and put the principle into higher risk, less protected, investments. Klamo (602W) asked how the funds were insured? Kahanu stated the Colonial/BB&T was insured up to $250,000, by the FDIC, and Charles Schwab was insured up to $500,000, $100,000 in cash and $400,000 in securities, by the SPIC (NOTE: Schwab accounts are further insured by Lloyds of London.).

The Association has also received a letter from Rand McNeal, President, Condominium Associates, stating that BB&T Bank is a healthy financial institution.

c. The budget for year 2010: is currently being worked on. The budget must be completed by November, so it may be submitted for approval and maintenance coupon books sent to unit owners in December 2009.

5. PROPERTY MANAGEMENT'S REPORT: Steve Carpenter

a. Installation of the new 3” water main pipe: the project running behind because of problems with leaks. Allen Plumbing, the contractor, noticed leaks at the seams while conducting a pressure test. The system is rated to a water pressure of 150 psi. However, during testing the leaks occurred at around 90 psi. Allen keep the pressure at 90 psi overnight, and found that by morning the water pressure had leaked down to 30 psi. Allen has consulted with the manufacturers of the pipe and the glue. They think the problem is with the glue. Allen and the manufacturers are working on a solution. Someone asked who is paying for the lost water, and Steve said ITC was. Kahanu stated that ITC’s water bills have been higher than they should be, for a complex of ITC’s size, for as long as anyone can remember. Kahanu stated that when the emergency repairs were done on the old 3” pipe, and everyone got a look at the condition of the old pipe, both Allen Plumbing and the Dunedin water supervisor agreed that ITC was probably losing water from cracks all along the old 3” pipe line. Kahanu stated that there was a trough in the grass that parallels the old 3” line, and that is probably is the result of erosion from leaks along the line. Kipka (305E) stated that it was poor workmanship, and walked out. No one bothered to respond to his comment.


b. Landscaping update: Steve and Bob Beck (102W, Chairman of the Lawn Committee) met with landscape contractor (Summit Lawn Care) two weeks ago. Summit had just sent Steve a quote for $1020, to plant new hedges along the shuffle board area, re-mulch and add sod. The quote also include the removal of all the old plants and shrubs. Walsh (705W) asked if we were getting the right type of mulch, because it washes away so quickly around the first floor. Walsh wants us to research on putting in better mulch, and asked if anyone had looked into a mulch called “Never-Wash-Away” mulch? Beck (102W) stated that the product had been removed from the market because of environmental concerns, and that there really were not many options. Klamo (602W) asked about heavier types of mulch like crushed shells or stone. Carpenter stated that first floor problem was a different issue, and was the result of poor drainage on the south side of the first floor. Summit’s quote of $1, 020, was for work around the shuffleboard area where there wasn’t a drainage problem. He said that there should not be any problem with mulch washing away to the degree it does around the first floor units. Beck (102W) stated that the problem on the first floor was the result of poor drainage and settling of the buildings. He said this issue was also discussed with Summit and while there were some initial suggestions, such as building up a cement curb and the installation of more drainage pipe, they were still in the initial phases of looking for a solution. Kahanu stated that the first floor problem has been there for a long time and it would take time to find a solution if there was one at all. And asked that the Board focus on the first issues which was re-landscaping around the shuffleboard and the adjacent east side of the property. Walsh stated that if the mulch wasn’t a problem then she was ready to vote on Summit’s quote. A motion was made by Millie Kelley and seconded by Carmen Walsh to accept Summit Lawn Care's proposal. Motion was carried unanimously.

6. UNFINISHED BUSINESS:

a. Smoke Detector Installation:

McGee Electric is still trying to secure the permits from the City. The person needed to be contacted is still unavailable. He is scheduled to return this week. They will try again.

b. Curbing Installation:

Two issues: one is add curbing in the parking lot, and filling the post with cement. The second was the handicap ramp near the Clubhouse and pool area. The issue had been tabled until a study could be conducted on the impact of cutting the hedges back. Klamo believes that if we cut the hedges back people will be able to park closer to the curb than they currently do, and this will increase the open space in the parking lot and help improve the turning radius. Klamo wants to wait and award the total contract after we get the results of the study. Kahanu asked the Board to consider splitting the quote into two parts, and if the contractor will do the handicapped ramp at the quoted price to go ahead with that part of the quote. Always Reliable Concrete, Inc. submitted a proposal to restore the concrete curbs around the carports at a cost of $1800.00. A handicap ramp $500.00. Fill PVC posts with concrete $800.00. A price of $2800.00 if all is completed at the same time. It was agreed the Handicap ramp should be installed and the other items put on hold for further study. A motion was made by Drago Kahanu and seconded by Millie Kelley to install the Handicap ramps. Motion carried 4-1. Robert Klamo dissents.

c. Unit Baseboard Repair:

Klamo had found a contractor who would do the job for $60/unit, it was based on doing 1-3 at a time. Kahanu asked if there was any chance of getting the contractor to do it for $50/unit. Klamo said no, and re-iterated that $60/unit, for 1-3 at a time was a very good price. Kahanu asked Steve to double check with Blue Chip to see if they’d be will to do 1-3 unit at a time for $50/unit. L. Bradlow (403W) asked if we knew how many more units needed to be repaired. Kahanu said no one knew, and that once we decided on a vendor, we’d have to send out a survey letter to the membership. D. Carson (603W) asked if we could change the name of this issue from “Unit Molding Repair”, to “Unit Baseboard Repair”, so owners wouldn’t think there was a mold problem. The Board agreed to make the change.


d. Sidewalk Repair:

Steve needs guidance on how to proceed with the sidewalk. There seems to be two different plans. One plan shows the side walk next to the seawall and another plan shows a side walk going partway through the grass about equal distance from the seawall and the towers. Phillips (105E) said she sent overhead photos that show the sidewalk running along the seawall. Carmen stated that there was a brochure that showed the sidewalk running through the grass for a short distance. Kahanu stated that the side walk along the seawall was not original, but installed by an older board without approval of the membership. They installed it in response to a threat of a suit by a wheel chair bound owner. Klamo asked if Steve could collect all the information available on the issue and present it at the next meeting of the Board. The rest of the Board agreed that was the way to proceed

7. NEW BUSINESS:

a. Stair Maintenance Proposal:

Complete Property Services, Inc. submitted a proposal to maintain stairs at a cost of $1906.00. This would be an annual event. To replace the stairs would cost an estimated $235,000. It was recommended Complete Property Services, Inc. be hired to perform services during the dry season, March or April, 2010, if they will do so at the price quoted.

b. Downspout Box Proposal:

Tabled until next meeting.

c. East Tower Door Repair Proposal:

Affordable Security Solutions submitted a proposal to repair inside door at a cost of $577.93. Motion was made by Drago Kahanu and seconded by Millie Kelley to hire Affordable Security Solutions. Motion was carried unanimously.

d. Shuffleboard and Horseshoe Court Repair Cost:

Kahanu stated that at the last meeting it was decided to put the matter of restoring the shuffleboard area to a vote of the membership.(because of the $13,000-14,000 price tag for full restoration). Kahanu asked the Board to re-consider the issue and vote for restoring the shuffleboard playing surface this go around and leave the issue of restoring the roof and lights for a later date. T. Mickey McGee Electric Service submitted a proposal to repair the court. Part of the proposal was to paint each court $500.00 - total $1,000.00. A motion was made by Drago Kahanu and seconded by Millie Kelley to paint the courts. Motion was carried unanimously.

It was suggested that light posts around shuffleboard court be removed.

e. Pool Fence:

It was recommended that the fence around the pool be replaced. It was suggested a wrought iron fence, six feet tall, not black, be installed. Steve Carpenter was requested to check code, etc. to insure compliance.

f. 105W Patio:

Patio was inspected and found to be in compliance.

g. 803W Cabinets:

The Board reviewed the problem with the kitchen cabinets being out of alignment. The Board unanimously agreed that there is no evidence to indicate that the alignment problem was the direct result of the work done on the roof. The Board also acknowledged that the roofing contractor did everything they were suppose to do in accordance with the contract. The Board felt that it would be a nice good will gesture to hire someone to attempt to realign the cabinets. However, before this work is done Walsh felt that we should get something in writing, from the owners, recognizing that the Association is only doing this on a best effort basis and if it doesn’t work, or the cost goes beyond $100 dollars, the Association will cease being involved. Carmen felt that we should not proceed until we receive written acknowledgement from the owner that our effort is a good will gesture and should in no way be interpreted as some kind of admission of guilt.


h. Patio Landscaping:

Letter sent to Ben Rabin for legality of planting on Island Towers Property.

Tabled until next meeting.

i. 2010 Board of Directors:

In 2008, Florida law changed the term of board directors to one year. Consequently, a new board must be elected every January, at the General Membership Meeting. The 2009 Board has only four(4) months left. At least three (3) board members (Kahanu, Carmen, & Martucci) will not serve another year. [NOTE NOT INCLUDED IN MINUTES: One member (Kelly ) is uncertain. Only one member (Klamo) wants to serve for a third year.] Kahanu asked that all unit owners, especially our newer owners, to consider serving on the board. [NOTE NOT INCLUDED IN MINUTES: He further stated that all the big projects will have been completed, and Condominium Associates will be in full control of day to day maintenance, contractual, financial operations. The function of the Board will be to provide advice, guidence, review, and consent to Condominium Associates. It was stated that a director does not have to live at ITC year round to be an effective board member, since most the association's business is now conducted by email, and Condominium Associates does all the work. Carmen finally stated that if there are not enough volunteers for the board the state will take over. Kahanu stated that if the state takes over two things will happen: first, the state will appoint a caretaker (usually a lawyer at $275-300/hour), and second, the caretaker will immediately move to fully fund the reserves (the maintenance fees would probably increase 2 to 2.5 times the current level, to $900-1,200/month).]

8. UNIT OWNERS LETTERS AND CONCERNS:

a. Hattie Bradlow, 403W: congratulated Drago Kahanu, President, for outstanding work transferring our funds and keeping them safe.

b. Klamo and Duffy (301W), review of pool heating options: they are reviewing all the possible option for heating the poof, and should be ready to make a presentation at the next meeting.

9. Adjournment:

Motion was made by Drago Kahanu and seconded by Joseph Martucci. Motion carried unanimously. Adjournment was at 7:45 P.M.

The meeting was not taped due to a malfunction of the recording machine.

Respectifully submitted

Carmen Walsh
Secretary