Holiday Beech Villas—Your Mountain Destination

Board Meeting Minutes

Holiday Beech Villas Homeowners Association
Meeting Date: February 28, 2015   Meeting Place: E317
Beginning Time: 9:10

Members present:  Ed Anthony, Clyde Dill, & Laurie Chilelli
Property Manager: Renee Castiglione

Members present via telephone:  Marlene Rockwell, Jorgene Barton, Mark Deasaro, Janet Parker, and  Carol Robinson

Call to Order:  Ed Anthony called the meeting to order at 9:10 A.M. in Unit E317

In the Minutes of the January 17, 2015, Holiday Beech Villas Board Meeting, the following motion was made and unanimously passed by 7 votes:   
Janet Parker made a motion that $206.40 be assessed each home owner for an Emergency Fund of    $18,164.00.  This would be equally divided among 88 home owners unless the law specifically         specifies otherwise.  Motion seconded by Jorgene Barton. 

It was decided that an addendum be added to those minutes to rescind this Special Assessment action.  Janet Parker motioned to rescind the $206.40 to be assessed each homeowner for an Emergency Fund of $18,164.00.  Jorgene Barton seconded the motion and it was unanimously passed.

Budget Discussion:  Discussion of the 2015/2016 Budget included the following items:
Insurance–projected increase of 10%
Phone–Increase due to conference calls
Web–Decrease because a discount was applied if the account was pre-paid for 5 years.
Water, Sewage, Garbage–increase because of Town of Beech possibly increasing fees.  In addition, we have been running water in each unit this winter due to minus degree temperatures.
Electrical–possible under budget this year.  It will depend on the winter weather.
Office – No change in payroll.  We may possible get our CPA to do our taxes as it has been 2-3 years since we have had an audit.  Doing our taxes may take place as a comprehensive review of our books.
Financial--Our line of credit is near the top of our limit.  We want to reduce it by half.  Every February the loan is due but the bank has been extending it.  If the bank so desired, they could call the loan in at any time. Discussion was held on aggressively paying out line of credit.
Taxes and Payroll–no change.  We are checking on the FUTA and SUTA taxes to assure they are correct.
General Maintenance–Building Maintenance includes paying contract labor and material.  It also covers   important issues that occur.  We haven’t been keeping up general maintenance unless an emergency arises.  Discussion followed and all were in agreement that we need to be more diligent.
Reserve Fund–We should be putting 10% in reserve.  Especially so we can cover the deductible on our insurance policy of approximately $10,000.00.  In addition, our Budget increased $7,000.00 due to yearly revenue loss of $7,000.00.  We have several units that we pay the electric bill and not receiving income due to bank ownership and/or owners not paying.  It is not worth our while to foreclose on a unit with a mortgage.

The Board feels comfortable with the Budget.

Dues Increase:  Discussion was held regarding dues increase and amount of increase.  One important issue is that we have nothing to fall back on in case of emergency.  Our bank loan is at the limit.  Unfortunately, costs are rising and we have to be able to cover them.  Clyde Dills made a motion to increase our homeowner dues 18% effective July 1, 2015.  Laurie Chilelli seconded the motion.  The motion passed with a 7-1 vote in favor of raising the dues.

Contract Proposals:  D building will be completed prior to starting K building by Richard Shell.  The Board would like to do more research into the contractors.  We received bids from Richard Shell, Dacchille Construction, and Pyramid Builders.  We do have enough money to complete the D building.  In addition, Renee is going to check into getting a building loan.

The next Board meeting will be in April, date to be decided.
Ed Anthony adjourned the meeting.