Meeting Facilitator: Pete Kinsella, Keith Collins Co., David Macintosh – President, and Mike Bowen – Secretary representing the Board of Directors
Alex Napier, Mike Bowen, Carol Lott, Joi Wilson, Ryan & Joan Morris, Stacey Wallace, Jim & Stacy Dorris, Christy Hamilton, Mike & Debroah Lutz (represented by daughter, Jenna), Jeff Smith, Marisa (White) Arrioga, Patrick Sirayathorn, Kathy & David MacIntosh
Represented by proxy:
Cindy & Scott Ryan, Barry Shaw, Laura Hollis, Ray Finke
I. Call to order
II. Roll call
III. Welcome by Mike Bowen and David Macintosh
IV. Open issues
a) A quorum of 19 (51% of qualified homeowners/owners who are current in their dues and special assessment payments) was unable to be established. Board of Directors will appoint Laura Hollis for a 3 year term beginning 1-1-13 because we feel we have need to keep this Board together.
b) Mike discussed the “layers of the onion”, that is, all the unfortunate situations the builders have left us to solve. Mainly the condition of water leakage in virtually all units. Gave kudos to David Macintosh for keeping the 6-year battle going to rectify these issues.
There are many reasons behind the delays in the water restoration project:
• lack of agreement of how to proceed by HOA
• lack of funds in HOA budget (on 9/11 2012, 75% of the total construction budget was officially collected)
• lack of qualified bids
• lack of blue prints
• Bray Engineering assessment of water damage
• delay in correct bonding, etc.
The water restoration was officially begun on 11-1-12 by Dan Martin Construction Services Unlimited, (901) 240-7216. Dan began with the worst unit and will proceed accordingly. It was asked that a list and schedule of work to be completed on each unit be posted on website. We will have that up on site by 11- 21.
c) The schedule will be a floating schedule (see downloads page) because of the complexity of custom repair work. The BOD asked for the owners who rent to please send contact info of all renters to Pete at Pkinsella@keithcollinsco.com so Mr. Martin may communicate this schedule in a timely manner.
d) It was discussed at length that we only have $246,863.26 of the $290,844.05 plus required for all units. Certainly the Home Owners that have not paid (see “Unpaid Units” on downloads page) will be omitted from original list, and scheduled at a later time, once payment has been received. All penalties and interest will be applied to those homeowners who have paid after Aug. 1, 2012. It was asked exactly what was recourse for delinquent homeowners. Mike explained his discussion with Wayne Mink, Legal Counsel and on possible foreclosure proceedings taking place by HOA against properties that refuse to pay special assessment or dues. The BOD will certainly explore that possibility with legal counsel in 2013.Of particular note was the fact that this was a bare bones bid to “stop the water leaking and present damage repaired.” The bid did not allow for any major “surprises” or new damage that may occur in the future.
V. New business
a) The BOD emphasized that we will need another special assessment in the future to not just repair but to improve each of our units. Ex: The HOA, because of Downtown Memphis elements and exposure from our elevation on the Bluff should paint and caulk the entire complex at least every 2 to 3 years. Unfortunately at this time, the HOA does not have the funds for this general maintenance.
b) Mike then discussed the example of the HOA not being able to legally or affordably be in the HVAC service business. The BOD questioned this past interpretation of the Master Deed in July. Legal counsel Wayne Mink has stated that indeed the HOA cannot legally service individual homeowners HVAC units, (see downloads page). The HOA recommends that each individual owner use Dan Martin construction services for future HVAC service. If you decide to use another service, the service must first file a hold harmless agreement and proof of bond with Keith Collins Co.
c) Mike then discussed the unfortunate miscalculation of dues by Keith Collins Management co. The Board sent out a notice via the website that we would settle this issue by 1-1-13. Keith Collins Co. sent a letter to each owner stating his or her dues status. The owners that were undercharged were asked to remit payment no later than 1-1-13. The owners that were overcharged will receive refund payment no later than 1-7-13. (See “Analysis of Dues Structure of 10/31/2007 – showing amount over/underpaid per unit” on downloads page). Mike discussed the dire need for a Dues increase of 15 % to each owner beginning 1-1-13, and what that will do to our budget? It will only affect our total budget a total of $15,652.00 a year. We will still be a budget restrained HOA. (see “Dues Structure for 2013” on downloadspage)
d) It was asked that we post latest financial statement and a list of services provided on website. (see “analysis of dues structure” on downloads page)
e) In closing, Mike discussed the need to keep this board together and all the work that of the present team be continued, but that a tremendous amount of work remains to be done. Mike also discussed the BOD discussion on retaining the Keith Collins Co. and Mr. Wayne Mink. It was discussed that past mistakes have been made on all sides of exactly where the Management Company, the legal counsel roles end and the HOA, the BOD roles begin. We have learned a great deal together. At this time, the BOD is not planning any changes.
f) Mike emphasized that www.citycommonssouthend.com , (user name: ccommons, password: tngeorgia), be used by the owners and renters alike. Champion Awards and Apparel donated and will maintain this site for the next 2 years at absolutely no charge to the HOA.
g) We also have a forum page on our website and its time we become a community of owners. If anyone wishes to form an active owner resident committee to engage in the improvement of our neighborhood and grounds, please go to this forum and volunteer. Thank you. Wishes to all for a safe and happy holiday and adjournment.