A Place at the Beach III Homeowners Association, Inc.
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1 A Place at the Beach III Homeowners Association, Inc. P.O. Box 1398 N. Myrtle Beach, SC November 23, 2012 Dear A Place at the Beach III Homeowner, Enclosed are the minutes from the 2012 Annual Homeowners Association Meeting, which was held on October 27th at Harry the Hats in Myrtle Beach, and also the minutes from a meeting of the Board of Directors held on September 16, Please take a few minutes to read the minutes as several important issues were discussed. In addition to the minutes of the meeting, also enclosed is the meeting packet and your payment coupons for 2013 if you were not able to attend the meeting in person. We will be sending out the parking passes to everyone in January as we are working on having them supplied to us for free. The passes will not be needed until April 1. Some information which we want to point out from the meeting minutes are: 2013 MONTHLY DUES: Beginning January 1, 2013, the monthly dues at APATB III increase to $275. If you pay through an automatic bill payment system with your bank, please be sure to change the amount in their system. WIRELESS INTERNET: The Association will add wireless internet to the entire complex beginning January 1, There will be no equipment placed inside any unit. We will place a card in each unit on the refrigerator with the instructions on how to connect to the service and also with a technical support number. The system will not be password protected in order to make connection easier for guests. The provider for the service is a company named Anaptyx and the technical support number is When we mail the parking passes in January, included will be a copy of the instruction card that will be placed in all units if you would like to include a copy with your rental information. HO6 POLICY: It was again stated at the meeting that every owner should carry a HO6 Policy which covers the betterments and improvements inside your unit, your personal belongings, and also provides liability coverage inside the unit. If you would like to contact the agent for the Association regarding a HO6 policy, please contact Stephanie Mendenhall or Carswell Insurance Services at INSURANCE ASSESSMENT: You will find more in-depth information in the minutes of the meeting, but the approved assessment in the budget is $1,200 per unit. This will only change if there is an unexpected increase in the insurance renewal. The special assessment will be due March 1, 2012, so please plan accordingly. UNIT IMPROVEMENTS AND ALTERATIONS: All owners are reminded that any alterations to a unit in regards to plumbing, electrical, or structural must be presented to the board in writing and receive written approval from the Board prior to any type of work beginning. This is very important as the Association s insurance carrier is very strict as to the types of items that will be allowed in order to maintain coverage. There were many other issues discussed at the meeting, so please take time to read the minutes in full. As we said at the meeting, White Realty thanks all of the owners and your Board of Directors for allowing White Realty to serve you as Property Manager. Please do not hesitate to contact us if we can be of assistance. You can reach us by phone at or at wayne@white-realty.com. Sincerely, T. Wayne White, Jr., REALTOR Property Supervisor Property Managed By:
2 A Place at the Beach III Homeowners Association, Inc. P.O. Box 1398 N. Myrtle Beach, SC CALL TO ORDER 2012 ANNUAL MEMBERS MEETING MINUTES Pursuant to call, the 2012 Annual Members Meeting of the A Place at the Beach Myrtle Beach III Homeowners Association, Inc. was held on Saturday, October 27, 2012, commencing at 10:05 o clock a.m. at Harry the Hats, located at 351 Lake Arrowhead Road in the Arcadian Dunes Condominium Complex in Myrtle Beach, South Carolina. FORMAL OPENING & OPENING REMARKS Mr. Lavery (1-3-L) formally opened the meeting and welcomed everyone to the 2012 Annual Members Meeting of the A Place at the Beach Myrtle Beach III Homeowners Association, Inc. Mr. Lavery thanked everyone for attending, stating that it was nice to see a large group of owners able to attend with the weather issues. He then introduced the other members of the Board seated at the head table, which included Mr. Herb George (1-2-A), Mrs. Diane Hultzman (2-3-L), Mr. Michael Turk (1-3-B), and Mr. Gil Kaladjian (1-2-B). Mr. Lavery also introduced Wayne White of White Realty, who was also seated at the head table. He thanked Wayne for his hard work on behalf of all owners and stated that with the age of the buildings and continued maintenance that is necessary to maintain the buildings and grounds that he feels that Wayne and his staff do an excellent job for the Association. As the buildings get older, the amount of maintenance has greatly increased. Mr. Lavery reminded all owners that if they see any issues with the buildings to please bring them to the immediate attention of Wayne in order for the Association to take the needed action. Some of these issues are Association related and the Association is responsible for the repairs and the repair of any damage caused. Some of the issues are the owner s responsibility as outlined by the Master Deed. It is important and in the best interest of the owner to contact Wayne first to determine the cause and the responsibility. If an owner makes a repair prior to contacting Wayne, it probably will not be possible to determine the cause and the owner will be responsible for any damage. INTRODUCTION OF NEW OWNERS Mr. Lavery then asked if there were any new owners or owners that were attending an Annual meeting for the first time. Mr. Bob Wilcox (1-2-E) introduced himself as a new owner. Property Managed By:
3 October 27, 2012 Page 2 of 7 IDENTIFICATION Mr. Lavery stated that he would serve as the Chairman of the meeting and that Wayne would serve as the Recording Secretary. Mr. Lavery also announced that Mr. George would serve as the Proxy Agent for certain members of the Association that were not present for voting. VERIFICATION & INSPECTION Mr. Lavery then asked Wayne to continue with the agenda of the meeting. Wayne asked Mr. George for a verification of a quorum for the official and legal holding of the meeting. Mr. George responded that there were 37 units represented in person and 37 units represented by proxy for a total of 74 of the 138 units represented. Mr. George also confirmed that he had inspected the Proof of Mailing of the Official Notice of the meeting and a copy of each will be posted in the minute book of the Association. APPROVAL OF MINUTES The next item on the agenda was to approve the minutes of the 2011 Annual Members Meeting. A copy of the minutes were provided in the packet and were mailed to each owner following the 2011 meeting. Mr. George asked for a motion to dispense the reading of the minutes and approve as presented. Mr. Greg LeClaire (1-3-C) motioned that the minutes be approved as presented, seconded by Mr. Fred Hitchings (1-2-D, 1-2-E) and unanimously approved. MANAGEMENT REPORT Wayne thanked the Board of Directors and all owners for allowing White Realty to continue to work for the Association as its Property Manager. He stated that the Board of A Place at the Beach III works very well together and always has the best interest of all owners at heart when making decisions. Wayne added that White Realty is proud to be a part of continuing to protect and enhance the investment of all 138 owners. He thanked Marie, Lori, Trey and Taylor for all of their hard work throughout the year. Wayne added that Taylor and Trey work hard during the summer on a daily basis to keep the buildings and grounds looking as good and clean as possible. FINANCIAL REPORT Wayne opened the financial reports by presenting the current balances in the accounts and discussing the delinquent accounts. He stated that there is just one owner out of the 138 units at APATB III that is seriously delinquent and the Board and the Association s attorney are addressing that issue. Wayne added that for an Association the size of APATB III, just having one unit delinquent speaks a lot for all of the other owners as the Association can only operate and keep the buildings properly maintained by having the funds available to do so. Wayne then opened the presentation of the 2013 budget and the reserve schedule. Wayne stated that the reserve schedule is constantly being looked at to be sure that the numbers presented are accurate reflections of the replacement cost so that the Association is properly funding each line item for future replacements.
4 October 27, 2012 Page 3 of 7 FINANCIAL REPORT (continued) Mr. Lavery discussed the 2013 budget and the fact that the dues beginning January 1, 2013, will increase to $ per month. This is the first dues increase at APATB III since November The Board reviewed the budget and looked at issues like the age of the buildings and the continued increase in the cost of maintenance and decided that to cover these costs that there needed to be an increase in the dues. In addition to the increased cost of maintenance, Mr. Lavery stated that the Board has heard from many owners over the past year and the Association will be adding wireless internet to the entire complex beginning January 1, The cost per unit is $11.00 per unit per month and is a five-year contract with no increase in the cost. This added expense is covered in the budget. In addition to these expenses, Mr. Lavery added that the replacement of the three roofs has lowered the amount which the Association has in reserves and it is important not only for the replacement of capital items as they come up in the reserve schedule but also to have funds available for the insurance deductible in case of a storm. Mr. Lavery stated that Mr. Turk did an assessment of all of the A Place at the Beach complexes on Shore Drive to assess the monthly dues and also any annual assessments. The finding were that the dues were between $250 and $275 per month with annual assessments ranging from $1,500 to $2,000. Mr. Lavery added that the 2013 budget shows APATB III s assessment to be $1,200 and this will hold true as long as there are no unexpected increases for the insurance renewals. It was pointed out that for the 2013 fiscal year, owners will see no net increase over the past year in dues and assessments as the dues are increasing $600 but the assessment is lowering by the same amount. Wayne informed all owners that the provider for the internet will be a company named Anaptyx and that they will provide magnets with connecting information that will be placed in all units. There will be no equipment placed in any unit and the equipment will be placed in such areas as to ensure proper coverage to all units and around the pool areas. The information card placed on the refrigerators will also have a technical support number. INSURANCE Mr. Lavery presented a discussion on insurance and stated that while it is too early now to get a true indication on the price of the insurance renewal, he has spoken to our agent and, with the age of the buildings and the type of construction, it is thought that we can see a five to seven percent increase. Mr. Lavery also discussed the flood insurance cost and the fact that we could see a 10 to 12 percent increase per year for the next several years as the federal government increases the premiums to meet the exposure. In discussing the annual assessment, he stated that the assessment over the past three years were $1,500 for two years and then $1,800 in This was because of the replacement of the three roofs and also quite a bit of work to the oceanfronts of each building. This coming year, with no unforeseen increase in the premium for the property insurance policy, the assessment will be $1,200. In further discussing the reserves, Mr. Lavery stated that the Association s deductible for a named storm on the property policy is 3% and, while this does not sound like a lot, it adds up to $257,000. So, if there is a major storm, the Association is responsible for the first $257,000 worth of repairs. Mr. Hitchings asked what the Board thought a safe number was to have in reserves. Mr. Lavery stated that it is according to how you look at the reserves but he takes a conservative approach and would say around $400,000. Mrs. Hultzman added that it is also important to have the funds on hand in the case of a major storm in order to get quality contractors to start working quickly on the buildings.
5 October 27, 2012 Page 4 of 7 Mr. Lavery stated that he knows that he states this each year, but each homeowner needs to have a HO6 policy in place. This type of policy will cover an owner s personal belongings, any betterments and improvements in their unit, and also provide liability coverage to the interior of the unit. He added that in the case of a loss where the Association s policy has coverage, that policy will pay to put the unit back as it was when the buildings were constructed. The Association s policy would only put back basic cabinets, formica counter tops, vinyl flooring in the bathrooms and kitchen, basic carpet in the other areas, etc. The HO6 policy would cover any additional improvements (granite counters, custom cabinetry, tile, etc.) assuming the owner has requested and paid for that additional coverage. The standard/basic HO-6 policy does not include adequate coverage for custom improvements. Mr. Richard Schueler (3-1-E) stated that his hot water heater had leaked and he did not have a drain to the outside nor did he have a HO6 policy. This cost him over $6,000. There was a question regarding damage like this and if a unit above you leaks, where does the responsibility lie. Wayne responded that all affected units would contact their own insurance agent to file a claim and that each would send an adjustor. Normally, a HO6 policy contains wording that they are only responsible for their insured s property unless there is negligence on the behalf of their insured. If there is no negligence and it is just something that happened, then each HO6 policy would pay to restore their insured s unit. This is another reason that it is important for all owners to carry a HO6 policy. Mr. Schueler added that all owners should check their hot water heaters and be sure to replace them if there is not a drain to the outside. Mr. Lavery stated that the Association has a standing rule that any hot water heater over 10 years old must be replaced and that the hot water heater must be drained to the outside. Wayne added that any owner that has a hot water heater that is less than 10 years old can retroactively add a pan and drain by contacting a licensed plumber to come out and drain the hot water heater and place a pan under it with a drain through the outside wall. Mr. Lavery again reminded all owners that they must contact Wayne and complete a form in the case of making any renovations to the inside of a unit. This is so that the Board and the Association can be assured that only licensed and insured contractors are doing work in the buildings, especially in regards to plumbers and electricians. Wayne added that he hears from time to time that owners feel that the Board is running as a dictatorship and wants to control everything inside all units. Wayne stated that this is not fair as there are many issues which the Board has to look at because of insurance issues and the fact that the Board wants to be sure that any work done in the building is done properly by licensed contractors. With very few insurance companies in the market that will write the insurance on wooden structures like APATB III, it is very important that everything that can be done is done to protect against losing a carrier that has offered the Association good rates over the years. PROJECTS / MAINTENANCE Mr. Turk presented a list of past and future projects that have been and will be undertaken in the coming months. The largest project completed this past year that owners and guests can see was the work that was completed on the ocean fronts of all three buildings to include sealing the rusted nail heads, painting and the construction of new walkways and shower areas. The roof project was completed and all three roofs have now been replaced. Several of the balconies have been repaired as there have been many issues here and there and there are several more that will be worked on as the Board is prioritizing the balcony stacks which have been noted for repairs.
6 October 27, 2012 Page 5 of 7 PROJECTS / MAINTENANCE (continued) Mr. Turk stated that many of the issues that are arising with the buildings and in units is due to moisture. Some of this is because of decks not being properly waterproofed over the years and in many cases it stems from the type of construction and some changes that have been made inside many units. He stated that all owners should have their electric breaker boxes inspected to be sure they are not showing signs of rust or deterioration. With the moisture that is in some of the walls and made worse by many of the units that have been painted over time, the moisture in the walls will rust the panels from the back side. A licensed electrician should be contacted if you see signs of rust or deterioration. Mr. Turk thanked Wayne for his work with the landscaper in adding some landscaping timbers to outline the walkways on the ocean front sides of the building and toward the pools as this enhanced those areas. He added that the Board is continuing to look at landscaping issues in order to add color to some areas and be sure to keep bushes trimmed in order to not block views from balconies. The carpets were cleaned in all three buildings and the difference was amazing. Mr. Turk stated that he was there when the carpets were cleaned and they went from showing a lot of black from the asphalt in the parking lot and sand when walking down the halls barefooted to showing no signs of dirt at all after being cleaned. He added that it did come back after about three months but the Board is considering doing this annually to try and keep the carpets as clean as possible. Mr. Turk added that the Association also bought some new pool lounges and thanked Wayne for pressure washing the fence along the ocean front of the property as it really brought the wood back to life and looked a lot better. Mr. Turk then stated that this coming year there are several projects that the Association will be undertaking. One is that the interior of both pools will be resurfaced as the bottoms are discolored and stained. During this project, the pool contractor will be working with redirecting the pool returns to move the water around the pools better and also adding a skimmer in the corner where the suntan oils gather due to improper flow dating back to when the pools were built. All of the fire doors will be replaced over the next two years as the Board has budgeted to replace the doors in two buildings this year and in the other building in the following year s budget. There was a question about the magnets that have been installed in some of the other buildings that holds the fire doors open. Mr. Turk responded that Wayne had obtained prices to add the magnets from the fire alarm company as they have to be tied into the fire alarm and the cost was approximately $6,000 per opening. The cost, added with the worry that the doors being open all of the time would invite kids running through the halls more without anything to slow them down, led the Board to not doing this. There are also areas in all buildings, especially building one, where paint is peeling on some doors and railings. Mr. Turk and Wayne have inspected all unit doors and the railings in the buildings and the painting contractor will be coming through to paint these areas. A new roof will be installed on the maintenance storage area.
7 October 27, 2012 Page 6 of 7 ELECTION OF DIRECTORS The next item on the agenda was the election of two members of the Board of Directors. Wayne stated that incumbents Mrs. Hultzman and Mr. Turk had stated that they would serve again if elected by the owners. When the pre-notice of the meeting was mailed to all owners, Mr. Hitchings expressed an interest in serving on the Board. Wayne opened the floor for any further nominations. Hearing none, there was a motion made by Mr. Perry Trinkner (3-2-F) and seconded by Mr. LeClaire to close nominations. Mr. Tucker Irrizary (1-2-J) and Mr. John Murphy (1-1-K) agreed to serve as inspectors of the election. After tabulating the votes, the slate of Mrs. Hultzman and Mr. Turk were elected to the Board. Mr. Lavery thanked Mr. Hitchings for expressing an interest in serving once again. TAX RESOLUTION Upon a motion by Mr. LeClaire, a second by Mr. Hitchings, and unanimous approval by all owners, it was moved to approve a tax resolution permitting any excess income over the membership expenses for the year to be applied toward the subsequent tax year, as provided by IRS Tax Revenue Ruling QUALITY OF RENTERS Mr. Kaladjian presented an overall view of some of the issues that have occurred at APATB III over the past year in regards to renters. The discussion revolved around the amount of trash left around the property, trash bags left in the hallways, children left unattended and running and making noise, people in the pool area after hours disturbing others, etc. It was discussed by the Board at its meeting before the Annual Meeting that all owners should provide their renters with a copy of the Rules and Regulations as part of their rental agreement and that the renter must sign an agreement that acknowledges receiving the Rules. It was also recommended that all owners obtain a significant security deposit of at least $300 to deter people from treating the property or unit in a detrimental way. Wayne added that if anyone has an issue late at night with noise, the police should be notified as there is a noise ordinance in the County. Also, if anyone observes any type of destruction or any of the Rules and Regulations being broken and know which unit the person or persons are staying in, then please alert White Realty immediately. Wayne stated that he would contact the rental company if there is one and the owner. If a person needs to be evicted, the owner (if it is an owner rental) must contact the person and tell them why they are being evicted and that they must leave by a certain time. Wayne then needs to receive an stating the person s name that rented the unit, what the problem is, the fact that the owner has contacted that person and evicted them, and requesting that Wayne assist in being sure that the renter leaves the property. Wayne must have this in writing so that if there are any issues he may contact the police and have documentation that proves that the guests has been asked to vacate the property. OLD/NEW BUSINESS & MEMBER COMMENTS Mr. Irizarry asked all owners to please be sure and inform their renters of the pool times as they are in the Rules and Regulations and clearly marked on the gates of the pool. But, many time during the summer there are people in the pools until well after midnight.
8 October 27, 2012 Page 7 of 7 OLD/NEW BUSINESS & MEMBER COMMENTS (continued) There was a question about the possibility of moving the assessment into the rental season to make it a little easier to pay. Mr. Lavery stated that the assessment needs to be due in March because that is when the insurance renews and it allows the Association to pay off the insurance and not incur financing charges. He added that any owner can pay a little extra each month or send money during the summer when rental income is coming in and Wayne will deposit the funds and it will remain on the account as a credit toward the assessment. Ms. Rachel Feyers (3-2-M) stated that she sees more renters confused each week about what building that they are suppose to be going to. Many of the guests do not know what the building numbers are. Also the signs are not clear for people when they are driving up at night. Mr. Turk stated that owners should be sure to give their renters and guests the address of the building that they are going to as it is clearly marked. The Board will discuss the signage issue before the rental season. Ms. Feyers also stated that there are pizza companies that come through the buildings and leave their advertisements on doors. It was asked that if anyone sees these on any door to please remove them as it is a way for someone to tell if people are in the unit or not if they are looking to break in. Mr. Lavery stated that Wayne will also be on the lookout for companies leaving these advertisements and contact them about not doing so again as there is no solicitation on the property. ADJOURNMENT There being no further business to come before the meeting, a motion was made by Mr. LeClaire, seconded by Mr. Warren Copenhaver (1-3-O), and unanimously approved to adjourn the meeting at 12:30 p.m. Respectfully submitted, T. Wayne White, Jr., REALTOR Property Supervisor
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