Holiday Beech Villas Board Meeting
Board Meeting—May 21, 2011
Call to order: Meeting called to order at 0900 present were Jesus Hernandez, Charlie Robinson, Lazara Hurd, Judy Fletcher. By conference call Karen Alexander, Fatima Hicks, Janet Parker. Homeowners Wayne Hurd, Ron White.
Approval of Minutes: September 2010 minutes approved unanimously with correction of 2.600-2,700 of delinquent accounts instated of 26,000.
Long term planning: Report by Charlie and Karen on need to replace roof shingles with hardy board. The cedar shingles are original in most buildings especially on the sides. Since other rotted ones have been gradually replaced in pieces over the years. These are supposed to last 15-20 years and have outlived their lifespan. Some in the front and back have been partially replaced but the sides have not. Replacing the side shingles require scaffolding, so only a couple of sides have been completed in G and H. The worst are other side of G and D building. Reconstructing with hardy board improves the structure since it requires plywood underlayment and has a potential 50 years life span. Completing the project piece meal is more costly because it cannot be submitted for bids since it is a small project. If the entire shingles are completed at once it can reduce the cost of the overall project and eliminate construction equipment on site over a long period of time. Doing the project at one time may be done over a couple of seasons. The cost of bids are now 20-25% less than in years past, due to competition in poor economy. Have bids obtained as separate bids and combined to see what is less expensive. Our current loan is at 41,000 the most we can borrow is 45,000 and interest is 250-300 per month. We need to look at the whole maintenance budget to determine association priorities. After much discussion on other structural and maintenance needs of the association no decision was made on moving forward with this proposal at this time.
Maintenance: Jesus listed several recent projects that were completed. On the list for this year are reinforcing or blocking ceilings of outside closets in middle floors which are an access entry point for raccoons. Shingles must be replaced to back of F321, E318 and sides of G and D, front decking, for G and front stairs for G, plumbing for F, trees for back of K to replace those removed by electric company. Decking is needed on bottom floors of B and D and E to prevent owners form walking on mud and water. A part of D was completed by homeowners and has been successful. The E roof was replaced and is being paid for on installments since there were no funds in the budget for it. Other roofs will also need replacement as they were last replaced in early 90s..
Treasurer report: Decision not to foreclose on delinquent units at this time but maintain lien. Unit in K may be closing and we will be able to obtain past dues owed.
Charter: It looks like we are not in breach of contract and will not be liable to Charter for early termination of the cable contract. Some units have to have their wiring redone at the homeowners cost to upgrade for HD.
Assessment: It appears that an assessment will be needed to be able to meet the fiduciary responsibilities of the association and address building issues. Karen will ask Renee to do a comparison of dues for other associations on the mountain. The board will discuss the proposed budget and assessment electronically for a vote. We will look at the budget for possible cuts to expenditures. Board members discussed the concern of an assessment in our current economic environment. There are several units for sale now at HBV and little is selling at Beech, as in the rest of the country. So far we have not experienced the number of foreclosures or distressed sales as other associations have across the US. Our mission is to protect the value of the association and decisions need to be made that will support this mission in the short and long term. Given the age and location of HBV and the fact that major maintenance and improvements were deferred for so long by previous leadership prior to 2000, the needs for repairs and improvements continue to accumulate and are beyond what can be collected through the current POAs. The association has also experienced significant increases in utility costs due to the water shortage issue experienced at Beech Mountain. HBV continues to provide basic utilities water, sewer, trash plus insurance and now extended digital HD satellite as part of the POA while other associations provide few if any of these services. Finding creative ways to adjust the budget with so many fixed expenditures and limited use of personnel is difficult. HBV continues to have an excellent reputation for fiscal accountability and strives to follow CAI recommendations for managing finances for HOAs. We continue to struggle to develop a fund for long term projects and adequate reserves and our credit line is back at its top amount due to unforeseen expenses and damage from frozen pipes and use of insurance deductibles. Asking owners for POA increases, additional funds through special assessments has always been done after due diligence and with care. The board will spend time reviewing the options with the goal of having a decision reached in early June in order to provide adequate notification to owners.
The next meeting will be after the annual meeting on July 16, 2011 at 10am.