Holiday Beech Villas—Your Mountain Destination

Board Meeting Minutes 
Holiday Beech Villas Homeowners Association
Meeting Date: January 17, 2015   Meeting Place: Holiday Beech Clubhouse
Beginning Time: 9:00 Ending Time: 1:30

Members Present:  Ed Anthony, Clyde Dills, Laura Chilelli, Janet Parker, Jorgene Barton
Property Manager: Renee Castiglione

Members Present via Telephone:  Marc Deasaro, Marlene Rockwell, Carol Robinson

Guests:  Frank and Patty Jenkins, Jeff Hardin, and Ron and Elaine White
Guests present via phone:  Bob Lumpkin, Diane Keasler, and Vesna Huff

Call to Order:  President, Ed Anthony opened the meeting at 9:15 A.M.  Ed reminded all that due to the amount of business to discuss, please be sure to use Robert’s Rules of Order.

Approval of the October 18, 2014 Minutes:  Clyde Dills made the motion to approve; Janet Parker seconded the motion which was passed unanimously.

Committee Reports:
Treasurer Report:  Clyde Dills gave the financial report.  He referred to the Financial Report provided by Renee.  Clyde indicated we could go over budget on our General Repairs.

Maintenance:  Renee gave the Maintenance Report (attached).  She updated us on the Frozen Pipe issue at H132 & 133.  Dolbier Restoration is the company used for the clean-up.  We understand they have a good reputation.  They estimated it would cost $13,000.00 to remove everything down to the studs and to the 2nd sub-floor in H132.  In addition, in H133, the master bedroom, bathroom and flooring will need to be replaced.  In H133, the homeowner would like to upgrade, so he will be responsible for payment of the upgrades.  We are thankful that Jim Brooks, realtor, found the leaks as it could have been much worse!

We are now having issues with skunks under the F Building.   James is trying to find out exactly where they are coming in so they can be trapped and removed.  There also are raccoons that need to be trapped and removed.

Old Business:
Dumpster Update:  The Town of Beech Mt. has had to make an ordinance to enable us to use Republic Garbage services.  This has all been approved.  Now, the issue is between Avery and Watauga Counties usage of dumps.  If Avery Co. will not let Watauga County use their dump, all discussion is over and we will not be able to use Republic.

Chimney Repair Update:  High Country Chimney inspected the wood burning fireplaces and found issues with fire boxes in 11 units.  All were repaired.  Discussion was held.  One homeowner had issues with the inspection.  Laurie Chilelli suggested that when issues were discovered, a picture of such issue should be sent to the homeowner.  All agreed.

Review of the budget constraints and HOA dues:  Ed Anthony, began the discussion stating he would give an overview, then address each board member and guest, individually, for comments/questions.

 We compared the current annual budget with the projected budget for the next 6 months.  The Fixed Budget expense (expenses which are every month and will not go away) for the telephone increased due to the fact that we could not change to the cell phone because of reception issues.  The Satellite TV cost increased because we had to replace some equipment and the DirecTV programming increased.

The Financial and General Maintenance increased due to the $10,000.00 deductible on our insurance having to be paid because of the frozen pipe issue.  Due to these issues, we are $18,000.00 over budget.  Note:  Our monthly delinquents average $4,000-$6,000 per year.

In the 2015-2016 budget, we are going to try to pay half of our Line of Credit, which is now maxed out.  There are several concerns about our budget.  One being that raising dues would be detrimental for condo sales and two would also be the Budget.

Clyde Dills commented now is not the time for raising dues but did suggest a one-time assessment of $250.00 immediately to help with our debt.  He also suggested we need to re-visit our satellite contract.  He suggested that each individual pay for their share of TV.  He also indicated it may be cheaper to hire someone for General Maintenance.

Ed Anthony commented raising dues this July for next fiscal year.

Jorgene Barton commented we should increase dues, if necessary.

Janet Parker commented we need to protect our investment.  She suggested a break-down of the dues per unit and a one-time emergency payment.

Laurie Chilelli commented that we are going to have to raise dues.  She also likes the special one-time assessment.  Laurie also wants our property maintained and prefers the one-time assessment.

Mark Deasaro commented he is not in favor of raising dues or special assessment.

Marlene Rockwell commented she likes the one-time assessment and would agree to raising the dues 15%.

Carol Robinson commented that a breakdown of dues with the comparison of other condo associations should be given to home owners.  Like some associations, we could add a 13th check.  If there is consideration of raising the Special Assessment, then raise the dues 10%.  If not, dues could be raised 15%.

Ed Anthony commented that water/sewer/trash , TV, insurance equaled $128,000.00. We are not budgeting to pay-off the $45,000 line of credit, which is maxed out and we are not putting any monies in to our reserve fund.

Renee Castiglione responded to Clyde’s suggestions regarding the satellite TV and the General Maintenance suggestions.  We cannot individually pay for TV.  In approximately 3 more years, our bill will decrease about $450.00/month. That is when the equipment will be paid off.  We did have a General Maintenance person who charged $30.00/hour.  James does not charge that much and he does a great job.  Renee feels we can get by until July, a one-time assessment would be great, but dues are more important.  If we just do the one-time assessment of $250.00, what are we going to do next year?

Guests all commented they were in favor of an increase in dues and several commented they were in favor of the one-time assessment plus the dues increase.

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 unanimously passed by 7 votes.  (Mark Deasaro and Rosemary Williams were not in attendance for the vote.) This motion was re-addressed in the February 28 closed budget meeting and rescinded. There will be no emergency assessment of this amount.

New Business:
Review of Proposals for the K building from NC Licensed Contractors
Renee Castiglione spoke with four (4) contractors:
Bill Dacchille – to complete D Building, $20,900.00
Andy Porter – to complete D Building, $20,000.00
Richard Shell – K Building proposal, $106,000
Jim Frye – D Building, no proposal received

We only received the 2 estimates.  Laurie Chilelli made a motion to select Andy Porter as the contractor to complete D Building.  Marlene Rockwell seconded the motion and it passed unanimously.  He will begin February 1st.

Janet Parker motioned to table the review of the proposals for K Building, Clyde Dills seconded the motion and it passed unanimously.

Marlene Rockwell commented that the Association needs to get a copy of hired contractor’s license and their insurance.

Adjournment:  There being no further business, the meeting was adjourned at 1:30 P.M.  The next Board Meeting date is:  April 18, 2015 at 9:00 a.m.

In the Minutes of the January 17, 2015, Holiday Beech Villas Board Meeting, the following motion was made and 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 this 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. This would be equally divided among 88 home owners unless the law specifically specifies otherwise.  Jorgene Barton seconded the motion and it was unanimously passed.

Respectfully submitted,

Carol Robinson, Secretary