BOD 2020-2021 Meeting Notes/Minutes

Minutes of March 10, 2021 BOD Meeting

Dear WTYC Owners,

Your board of directors met on Wednesday March 10, 2021 to review the results of the voting on several issues affecting our association and several other issues.

The owners voted to approve all three issues.

1) Moving forward with the pavers project on both building was approved 37 to 3.

2) Allowing pickle ball and other sports to be played on the tennis court was also approved 31 to 9.The board will review adding the shuffleboard courts and related equipment. Several owners raised concerns about possible negative effects to the tennis court surface of playing shuffleboard. The board will research the issues brought up prior to moving forward with shuffleboard or other requests the board receives for other uses of the tennis court.

3) Owners also approved raising rental fees to $150 for rentals of four days or less, and $250 for rentals over four days by a margin of 34 to 6.

Each owner and their rental agent will be notified of the increased fee, which will be effective for rentals starting March 10, 2021.

Those owners offering rental of their units need to notify Linda in advance of any rentals and comply with the rental rules of the HOA, including providing parking passes to renters, and suppling Linda with the names of renters, the number of people in the party and the length of stay.

I want to thank the owners that took their time to participate in the special owners meeting and provide their input by voting on these issues.

Now that the pavers projects have been approved for both buildings, we will be moving ahead with scheduling the work, obtaining necessary permits, and working out the logistics of replacing the parking areas in both buildings.  The civil engineer will be scheduling survey work to provide guidance to the paver company to make sure the surface is installed properly, with the desired slope and drainage. Surveying will be completed in approximately 4 weeks. City of Destin permitting of the 240 building should be completed by the time the survey work is completed. We will also be working with the city to obtain a permit for the 200 building. The paver company has been notified we are prepared to move ahead and will put us into their schedule to start work in mid to late April.

Linda provided the board members with an update on our financial position, a copy of the update is attached. We are still workings towards implementing an improved charter of accounts and cleaning up our books to achieving accurate starting balances. We are moving our banking relationship to Hancock Whitney Bank from SunTrust Bank, to enable us to offer additional options for payment of monthly dues by ACH and obtain a credit card in the name of the association instead of using the personal credit card of the former manager. Details on setting up your dues payment by ACH will be provided under a separate letter. In providing required information to the bank for the credit card application, we learned the association tax return for 2019 was never filed. Apparently, this fell between the cracks during covid and will need to be filed now along with the 2020 tax return.

The board also approved moving ahead with a memorial palm tree program for the association as discussed during the owners meeting. Areas to be used for planting of memorial palm trees will be incorporated into our master landscaping plan. Details on how to purchase a memorial tree and the associated costs for the tree, lighting and a memorial plaque will be forthcoming. Anyone wanting to participate in development of the plan details is welcome to join members of the board in outlining the plan.

The initial air quality testing we performed with our new testing equipment indicated the type of mold we discovered was a common variety that is not dangerous or a hazard. The testing equipment is available if you want to test air quality in your unit. The lab we use to analyze the samples provides a confidential comprehensive report on their findings for a fee of $150 per sample. If you want your unit tested, contact Ron for more information and he will work with Vern and Jarrett to get a test setup. The HOA will provide the equipment for free, but the lab cost will be for the account of the owner requesting the test(s).

The board reviewed the attached “2021 HOA Project Initiatives and costs” or our reserve account analysis which Ron Bachman prepared. This analysis is based upon the results of the professional reserve report the association purchases from Sedgwick Valuation Services. The starting reserve cash balances and projected expenses and receipts on page one of the summary have been checked against the bank balances, and the expenditures reflected various projects approved by the board (Committed Projects).  The complete Sedgewick report is available for those interested in reviewing the details contained in the seventy-page report.

I encourage each owner to review this summary to gain a better understanding of the significant expenditures the association will be faced with over the next five years. Some of the itemized expenses on page two reflect a list of suggested improvements requested by owners. The estimated expenses when known are included, with other additional projects that we have not had a chance to obtain estimated cost yet listed on the bottom of page two.

The third and fourth page of the summary include items primarily from the Sedgewick report they forecast will need to be addressed by the organization based on typical life cycles for the items noted. Each of these items will be required eventually and actual costs may differ +/- 10% to 25% depending on timing and actual bids received.

We are currently including $156,600 in additions to our reserve accounts each year. As you can see on page 3, our estimated expenditures for 2022 for the 200-building elevator modernization is $136,790 with another $129,780 expected for our Fire Alarm system updates for both buildings, and replacement of a roof top A/C unit for one of the building. If these expenditures all occur in 2022, and we maintain monthly reserves at the current annual rate, we will be underfunded by approximately $121,956 for these projected 2022 projects. Our anticipated expenditures in 2023, 2024 and 2025 drop significantly to $55,394, $15,878, and $35,350 respectively so our reserves should have a chance to catch up if left at the same funding levels.

When we get to 2026 the report clearly indicates major items of expense totaling $1,231,562 dollars primarily for painting/waterproofing both buildings, waterproofing the Lanai/Balcony Decks off each unit, and replacing the balcony railings on each unit. Each of these items could be deferred or reduced in scope, but it is clear to me, we will experience some significant portion of these costs and should decide if we want to fund thru monthly contributions to our reserves or wait for the expenses to be incurred and fund thru assessments when actual costs are known, and the projects are required for us to continue to operate the building safely.

The Suggested Additional Capital Improvements as detailed on page two amount to $509,870 dollars. These projects are desired by many owners with some being of higher priority than others depending on point of view. The board has asked a small group from the 240 building to come back to the board with these items further developed with refined cost estimates, established priorities and timelines for initiating each project. Most of the projects will require a vote of the ownership since they involve material changes to the common area elements. The board will review the updated information and decide which of the projects should be brought to the full ownership for approval, and funding options if approved.

I understand owners will have different opinions on which projects are nice to have versus required to operate the building and grounds. The board is committed to developing a rational plan to update our property in a cost effective and comprehensive manor that will bring the property up to the luxury standards that were in place when the buildings were first built, and which reflect the value we each have invested within our individual units.

Please reach out to me or the other board members to express your thoughts on development of the plan that balances needs with desires.

Thank you,

Chris Parsonage

President

Waterview Towers Yacht Club HOA

Cell 314-495-5600

E-Mail Chris.parsonage2021@gmail.com