SUPERIOR SHORES LAKEHOME ASSOCIATION

Transcription

1 SUPERIOR SHORES LAKEHOME ASSOCIATION BOARD MEETING October 9 R.J. Ahmann Insurance Company, 7555 Market Place Drive, Eden Prairie, MN Subcommittee on Property Management: 5:00 5:30 Present: Keith Anderson, Bill D Amour, Chuck Redepenning, Tom Rerah. Previous to this meeting, this subcommittee spent time interviewing three candidates for property manager. Oliver Corporation and Zenith Management, both of Duluth gave the committee much valuable information, but ultimately did not submit bids because they are companies that handle all the facets of their hospitality properties. Carl Neer, who has worked for both Scenic Shores and Blue Waters, also submitted a proposal, and was interviewed. Additionally, we received proposals from Blue Waters (BW) and Scenic Shores Properties (SSP). After much discussion and a review of s sent by owners commenting on both BW and SSP, the members voted to accept the proposal of Carl Neer to be contracted as Property Manager. A brief summary of the discussion includes the following perspectives: The long-time experience and technical knowledge that Carl has regarding all aspects of the property including sewer lift stations, pool operation and maintenance, underground water lines, as well as landscaping, and including his deep respect for the area as the premier scenic spot on the North Shore. Carl Neer s proposal was very comprehensive. It listed not only the discreet duties that are required, but also a vision for future improvements and enhancements to the buildings and grounds. A recognition that Joe Re and Blue Waters are serious about their desire to work with SSLA in a productive and predictable manner but that the BW proposal was not as visionary and as specific as was Neer s. Both positive and negative testimonials submitted by approximately twelve owners for both Blue Waters and Scenic Shores Properties. A concern that Scenic Shores Properties proposal was simply a three sentence statement requesting that they continue in the same way they have been coupled with a concern that this level of management was not adequate.

2 Executive Session: 5:40 6:30 Present: Keith Anderson, Bill D Amour, Chris Kemp, Chuck Redepenning, Tom Rerah, Chuck Roach, John Strom. The Subcommittee on Property Management recommended to the Board to offer a property management contract to Carl Neer and to begin the process, with legal advice, to develop a contract. Much discussion ensued supporting both the proposals of Blue Waters and that of Carl Neer. The discussion ran over the 6:00 P.M. meeting time by ½ hour. A compromise position was put forth suggesting that we hire Blue Waters with specific stipulations that BW appoint Carl Neer as the person in charge of the lakehome property and specific expectations about Neer s pay and benefits. Ultimately, this was deemed to be unworkable given the time constraints the board was under to make a decision. Neither Carl Neer nor Joe Re was present to help with such a compromise. SSLA Board Meeting: 6:30 same location as above Present: Keith Anderson, Bill D Amour, Chris Kemp, Chuck Redepenning, Tom Rerah, Chuck Roach, John Strom. Attending: Darren Young, of Blue Waters Development Co. (BW), Chad Hepola & Beth Kringle, of Scenic Shores Properties (SSP). Linda Wiecher, Unit 103. Tom Igielski, Unit 25. Ron and Randie Cook, Unit 13. Motion: Kemp/Redepenning. To accept the minutes of the September 11, 2006 Board meeting. Motion approved unanimously. Treasurer s Report: John Strom. John reported that, in addition to the garnishment court order that we received two months ago against funds we pay to Scenic Shores Properties, we now have another third party levy order against SSP to pay Blue Waters. Both garnishments are due to a failed legal action brought by SSP against BW to recover funds from rentals and other amounts SSP felt were due to fractional owners. SSLA will split the property management payment of $5,869 a month between BW and the law firm of Nolan, MacGregor, Thompson & Leighton. Background on this lawsuit. The law firm of Nolan, MacGregor, Thompson & Leighton was hired by Gary Hepola to try to recover various fees from Blue Waters Development Corp. After the case proceeded through discovery stage, it became clear that, with the exception of the parking fees, there was no basis for the claims against Blue Waters. Indeed SSP owed Blue Waters monies. Randy Thompson recommended the case proceed to collect the unilaterally charged $24,000 in parking fees. He felt there was a strong possibility of having these fees overturned. He then wrote a letter outlining the entire case and sent it to the voting member of each SSP Fractional Unit asking for their support. No member notified the law firm recommending the lawsuit be discontinued. Gary Hepola, however, told Mr. Thompson that he received word from a majority of the

3 fractionals saying that they do not want to continue the lawsuit and he released the law firm and made an independent settlement with Joe Re. Mr. Hepola actually had no such communication from a majority of the fractional voting members. Subsequently, SSP failed to carry through with payments to either the law firm of Nolan, MacGregor, Thompson & Leighton or to Blue Waters. BW and the law firm then were awarded the garnishment/levy order. (For a more complete picture of this legal situation, see the letters sent from the Nolan, MacGregor, Thompson & Leighton law firm under Additional Documents in the minutes section of the SSLA website.) 2007 Budget Projection. We may have to raise the monthly dues by approximately $20 per month to meet our increasing utility costs and reserve fund expenditures for staining of buildings 4,5 and 6 as well as foundation and siding repair and road repair. John will fine tune these numbers in the next month and present them at the annual meeting. The 2007 budget will be formally adopted at the December board meeting. Discussion of two fees: The Property Impact fee that is charged to anyone who rents their unit and is meant to provide security and to cover extra wear and tear on property from renters. The Rental Administration Fee that was intended to provide start up and on-going administrative costs for the rental program such as gatehouse renovation and computer hardware, software and licenses and some staffing. John Strom recommended that we drop these fees. There is a prevailing belief that we are not getting any additional hours of security and there is confusion among owners about exactly who to call if there are concerns. Chad Hepola noted that every SSP unit has phone information on the wall near the phone indicating who to call for emergencies and the he has a cell phone and will respond. This led to a discussion of the need to disaggregate the staffing hours. Chad was directed to break out the hours, indicating which hours are for fractional coordination, which for rental, which for additional security and which for property management. It was agreed to take up this discussion further at the next meeting. Motion: Kemp/Roach. To accept the treasurer s report. Motion passed unanimously. Old Business: 1. Tom Rerah is working with Carol Kittleson, Janet Leadholm and SSP to help resolve these owners concerns about past due rental amounts. 2. Blue Waters will be installing 3 new flags on the poles on Hwy 61. Darren requested that SSLA contribute 1/3 ($65.00) to the replacement cost. The board agreed to contribute this amount.

4 Committee Reports: Grounds: Chuck Redepenning Chuck Redepenning will respond to Roger Wahldick s request to have 2 trees removed from the front of his unit. Also, he has received one of two estimates from road contractors, a much-needed large improvement on the property. Tree trimming was satisfactorily accomplished and that new signs on the property directing guests have been installed. Property: Chuck Roach Chuck reported that Peak Roofing has been contracted to finish the lakeside re-roof of Building 4. The skylights and the 18 roof extension will be installed first, and then the re-roof will take another approximately two weeks. Chad Hepola will contract with Starlight Systems for the skylights. Delivery of skylights is expected November 13. Bill D Amour reminded all that it has been agreed that an 18-inch overhang will be added to the lakeside of the building for rain protection. Peak also needs to replace the water runoff baffles over entry doors and to add some gutter or baffle system over the dormer windows. D Amour also reminded Chad Hepola that we need copies of contract for our files. Chris Kemp recommended that in the future, for greater accountability, we include in the minutes the names, addresses, phones, of all companies that we have hired, as well as a judgment of services well-performed, or not. Insurance: Tom Rerah Tom reported that the SSLA insurance for SSLA common property and buildings is paid up through the year. The premium for the expiring policy was $22,419. The renewal policy for 2007 is $23,895 plus we added workers comp coverage for an additional $282. Property Management: Chad Hepola 1. The last fertilization and weed treatment for the year has been done. 2. The pool is now shut down with a winterization and winter cover installation scheduled for October 26. With the exception of the spa being down for two days due to a pump failure, the pool and spa were in operation 100% of the season. Many compliments were received regarding the new furniture and refinishing of the pool. 3. Building #4 will have the remainder of the roof finished beginning November 13. Blue Waters has been informed of the scheduling time. 4. Per the request from Darrin Young of Blue Waters, Building #1 and #2 have had their foundations inspected by a foundation repair specialist. They will be sending a second inspector to re-inspect Building #2. Their initial findings are that Building #1 is fine as the crack in the foundation is only minor settling expected with the age of the building. Building #2 however will probably need repairs in the near future. 5. Building #3 and #4 have had some repairs done to the exterior due to rotting in the siding near some of the units decks. 6. Three units will be getting new decks made of Ipe in the next month. If anyone would like to take a look at this new material please stop by the Scenic Shores office and we will try to arrange a tour for you.

5 Property Management Selection Subcommittee: Bill D Amour Motion: D Amour/Rerah To offer a contract for SSLA property management to Carl Neer. Motion passed: 5 in favor, 2 opposed. See details above from the two meetings that occurred before this meeting. Board members endorsed that they are interesting in building bridges, not walls in the operation of The Lakehomes, and that the choice of Carl Neer as property manager will help in this effort. Carl has worked well with both Blue Waters and with Scenic Shores Properties. He is well known and liked and very knowledgeable and competent. He has on-hands expertise as well as a vision for maintaining and enhancing our North Shore experience. NEW BUSINESS: 1. A letter to the Board from Bob Noble, whole owner of Unit 99, was shared. Bob has requested that the reserved parking spaces be abolished in order to provide as much parking as possible when The Lakehomes are heavily occupied. Chris Kemp suggested as well, that each parking area has a floating, designated handicapped spot, so that guests who are handicapped could be guaranteed a spot as close as possible to the unit in which they are staying. This topic will be taken up in the future. 2. It was suggested that the members of the Board be increased from 7 to 9. This discussion will continue at a later date. Motion to Adjourn: Kemp/Strom. Motion passed unanimously. Meeting adjourned at 8:22 P.M. Respectfully submitted, Bill D Amour, secretary SSLA Annual Membership Meeting Saturday November 11, 2006 Two Harbors Bethlehem Lutheran Church th Ave. 9:30 A.M. 10:00 A.M. Registration, Coffee and Sweet Rolls 10:00 A.M. 11:00 A.M. Panel Discussion 11:00 A.M. 12:00 A.M Annual Meeting December 11 Board Meeting 6:00 P.M. R.J. Ahmann Insurance Company, 7555 Market Place Drive, Eden Prairie, MN 55344