VILLA CAPRIANI HOMEOWNERS ASSOCIATION 2017 Annual Homeowners Meeting 790 New River Inlet Road Saturday October 14, 2017 8:30AM PRESENT: Tim Campbell President Pam Welsh Vice-President Lou Ann Mylott Treasurer Paula Peters Secretary Lucy Kessler Buildings & Grounds Director Diane Wilson Tech Chair George Phillips Director-at-Large ALSO PRESENT: Anita Afify Property Manager, MEA Properties Barbie Sallee - HOA Accounts Manager, MEA Properties Scott Wheeler SFI Group, Inc. Tim Campbell called the meeting to order at 8:41AM Established Quorum: 37 total units in attendance or by proxy - Quorum established. Debbie Johnson motioned to approve the 2016 Annual Meeting Minutes. Seconded by Bill Woody All in favor Motion Carries. President's Remarks (Tim Campbell): Welcome to the new owners 17 new owners since last year Introduction of the Management Team Anita Afify and Barbie Sallee Introduction of the Board Major capital projects tackled this year- Capital - Structural Issues Fire Sprinkler Line Repairs Restaurant and Lobby Flooring replacement Lobby restroom remodel Fire Door Replacement Thank you to the board and management company Property Management Report (Anita Afify): Major Projects: Capital: Fire Sprinkler Line Replacement o All 3+ main sprinkler line piping in 3 rd & 4 th floor units & breezeways replaced due to age and sedimentation in lines (41 total units): o Pipes were removed from existing opening if possible, new penetration holes created where necessary. - 1 -
o 6 units remain to be completed in the Fall o Project postponed due to excessive heat in attic o Villa Maintenance performed ceiling and sheetrock repair work to save additional costs Restaurant & Lobby Flooring o Structural integrity issues made flooring a safety hazard Lobby Restroom Remodel o Hallway and restroom floor integrity identified during flooring project Fire Door Replacement o Replacement due to deterioration and age o 24 double doors, 21 stairwells and door frames o Project estimated without frames-excessive corrosion required frame changeout Other Maintenance: Deck Resurfacing Sand Filter Replacement 7 areas of Roofing required repairs or replacement Painting Doors, Handrails, Lattice, Gates, Door Frames and Trim Ceiling/leaks//balcony repairs 55+ Breezeway repairs 29+ areas Administrative: Wristband Policy-all Homeowners and Guests need to wear while in courtyard New Unit numbers and Signage for the Pool / Courtyard NO Pets NO Glass Containers continues to be an issue with guests Worked with BOD & Restaurant (Inlet 790) to renegotiate additional year s lease. Please visit for dinner, when you are available Restaurant Lease income offsets $36,000 of HOA operating costs or $25.86/unit/month Restaurant Events Offset additional operating costs During events, Homeowners are not allowed No alcohol allowed to be brought into Restaurant or deck area due to alcohol licensing laws Diane Wilson (Technology Chair) Villa Capriani will be doing away with individual phone lines effective the first of the year (2018) Meeting minutes will no longer be emailed after this year Meeting minutes and other important information regarding Villa Capriani Homeowners will be made available on the website Everyone is encouraged to create a login for the website in order to gain access to meeting minutes etc. Please contact Diane Wilson should you have any issues with the Villa Capriani website - 2 -
Future Maintenance Items: Roof Issues George to discuss later in Agenda Financial Overview: Projected YE Net Income $7,845 16/17 Insurance Net Income $4,931 Went into the Insurance Reserve Account Website YE Net Income $2,540 One unit with $521 > 90 days past due 17/18 Insurance (Scott Wheeler) New Insurance package Contact Scott for owner needs and HO6 relationship to master policy. Reviewed current coverage Multiple opportunities to make the package better and more cost effective. $ 28 Million in property coverage Re-shaped policies to increase coverage and lower deductibles $10.5 Million flood coverage (increased from $5.5M). This should reduce additional flood coverage requirements by Mortgage holders Lenders may try to force flood coverage of full value, but the owners can select coverage up to the loan value. Please contact Scott if this occurs and he will help with negotiation All in policy with $10,000 deductible Law and ordinance and business income increased coverages New Fire and Wind Carrier Lexington AIG Company Insurance Information will be on the HOA website in the Insurance Folder Liability the same Scott will check to see if the pool can be added under the property insurance since it is elevated on pilings All Units should have HO6 policies Vendors working inside units need insurance coverage to protect unit owners. Financial Presentation (Lou Ann Mylott): Operating Graph showing income vs Expenses 2014-2018 Graphs showing how expenses are distributed 2017 Operating Budget No Dues Increase to cover operating costs Capital Improvement loan payment Annual Dues and Insurance Average per unit (2013 2018 estimate) - 3 -
Short & Long Term Reserve Planning Capital improvements are tracked separately from operating expenditures Administrative Expenses Property Management fees make up 87% of this category Expected to exceed the 2017 budget in this category by 5.5% for two line items o Legal Fees o Property Tax Repairs & Maintenance Expect to come in under the 2017 budget by 6.5% Major line items include: o General Supplies & Repairs o Fire System Repairs & Maintenance o Elevator Maintenance o Painting Expense 11% of our HOA dues cover this category of expenses Grounds Expenses Expect to come in 6% under the 2017 budget Major expense in this category is the landscaping contract 3% of our HOA dues cover this category of expenses Utility Expenses Expect to come in 4.5% under the 2017 budget by $12,000 Major expenses in this category from high to low include: o Sewer o Water o Direct TV o Electricity - Pool o Internet and others Changing from Direct TV to Spectrum Cable in October, 2017 36% of our HOA dues cover this category of expenses Pool Expenses Expect to exceed the 2017 budget by 15% or $4500 in two categories: o Pool Chemicals o Pool Equipment & Maintenance (6 new Sand filters) Pool decking on the A and B sides were re-surfaced before the 2017 season 5% of our HOA dues cover this category of expenses Reserves Estimated Capital Reserves at end of 2017 is $299,705. o Money Market - $165,145 o CD - $134,560 Moved Money Market account to new bank increasing interest rate from.0033% to 0.3% Purchased 24 month CD rather than 12 month to earn higher interest rate Estimated Insurance Reserves at end of 2017 is $252,091 10% of our HOA dues contribute to capital reserves - 4 -
Roof Replacement George Phillips RFP 4 respondents o 2-vendors chosen to move forward Engineering expert to inspect roofing and building to confirm requirement of replacing the roof Villa is currently paying to make roof repair as well as to repair units affected by the leaks. Asking each vendor to confirm their confidence level they will finish project within the allotted time frame, as well as other key quality, cost and timeframe items. Decra- was selected by all bidders as the best material for our area and geographical location o 50 Year roof Longevity 2010 reserve study showed it should last until 2027 before having a roof replacement but constant repairs demand a review of the situation Decision to be made based on input from Engineering firm and Board in late November with work being started in January if at all possible Looking into Federal tax credits for energy efficient roof optional Roofing board meeting to communicate to homeowners about financial decisions Board to share information with homeowners in order to get a discussion on options and opinions on where we are and where we are headed with the project Call in a special meeting or conference call about roofing status or when a decision has been made Roof Finance Options Lou Ann Mylott Using an estimated number of $800,000 (ESTIMATE ONLY), Lou Ann presented several scenarios for homeowners to consider as options for roof replacement cost: (All options are average cost per unit and will be adjusted based on percentage interest) Option 1: Use money left over from $400,000 capital loan ($120,000) + Capital MM $165,246 Homeowner assessment $2,218.71 made in 2 payments or 1 lump payment of $4,437.51 No loan Option 2: Use money left over from $400,000 capital loan ($120,000) $108 per month per unit for 5 years $80 per month per unit for 7 years $5862.07 pay in full Possible lower payment for homeowners who would like to pay in full upfront Option 3: Use money left over from $400,000 capital loan ($120,000) + Capital MM $165,246 Loan for $514,754 Homeowners pay in full (with possibility of lower lump payment upfront $4,437.54) - 5 -
$82 per month per unit for 5 years $64 per month per unit for 7 years Homeowner Remarks: Homeowners inquired about working with the BOD to relaunch music events at the Villa. Tim Campbell stated that it was not off the table for consideration and that the Board would consider adding a marketing budget for such events as well as needing to coordinate with the restaurant to determine how to work together in shared space for such events. The Capital Loan Special Assessment will be included in the 2018 HOA monthly dues. It was suggested that it be identified seperately A few Homeowners voiced concern around the need for more storage space for bicycles BOD will look into possible solutions It was suggested to post lost and found items on the Villa Capriani website forum Board Elections: Introduction of Pam Welsh was on the board previously Introduction of Lou Ann Mylott - was on the board previously Introduction of Jack Alphin primary resident at Villa Jack Alphin withdrew nomination No one else interested in running for the board Ballots were distributed and collected including proxy votes Welcome to the Board of Directors Lou Ann Mylott and Pam Welsh 2018 Operating Budget has been ratified as presented. Thank you to all the homeowners for attending. Please bring any issues to the attention of the Board of Directors or the management. Motion to Adjourn Motion to adjourn the 2017 annual meeting at 12:22 PM was made by John Mylott and seconded by Andrew Scajlion. Minutes submitted by and Paula Peters, Board Secretary and by Barbie Sallee MEA Properties, HOA Accounts Manager Approved By: - 6 -
Tim Campbell, President Date: THE ABOVE MINUTES ARE AN OBJECTIVE ACCOUNT OF THE BUSINESS CONDUCTED AND ARE USED TO PROVIDE A RECORD OF ACTIONS TAKEN AT THE MEETING. - 7 -