October 2, 2007 Board Meeting

Pinnacle Gardens Board of Directors Meeting

October 2, 2007

The regular monthly meeting was called to order by Ben. Board members present were Erin, Peggy, Ben, Nancy, Joe, and Dan of Ky. Realty. Also attending the meeting was Pat Chambers and Brent Dodson of Quality Lawn.

Since the Quality Lawn contract is up for renewal, they were asked to attend the meeting to explain the contents of the contract, possible alternatives and the cost, and asked for input on what needs to be done. There is to be no increase in the cost for the forthcoming year. They did explain the difference between a power seeding ($1300) and core aeration ($1000)and this is the time of year for it to be done. Question also rose regarding the type of mulch being used. There is a large difference in price, perhaps double, if we changed to Grade A cypress mulch and approximately $3000 if black mulch is used.

Joe asked if fallen tree limbs in the back could be gathered and Quality Lawn carry them off. Quality Lawn agreed to do this at no extra cost. There being no further questions or conversation, Quality Lawn representatives left the meeting.

Minutes to previous meeting were sent out but no one was able to open the attachment. They will be resent.

Treasurer’s report:

Erin gave a detailed treasurer’s report of expenditures and also distributed a list of all Owners in arrears and by the amount owed. Both lists were gone over item for item and discussed at length. It was agreed to send demand letters with 14 day extension before filing a lien on those owners in arrears. This action will be taken on those owing large sums or consistently behind in payments.

A question arose regarding amount paid for pest control. The amount varies because the coverage is done on a building rotation rather than all at the same time. Treasurer’s report was approved.

OLD BUSINESS:

1. A vote was taken earlier via email as to getting an attorney’s opinion on monthly maintenance fee increase. The vote was 3 yes, 2 no, with 2 not voting. Dan will get a letter from an Attorney to answer the questions regarding the adjustment fee being based on the percent of ownership, i.e. square footage of each unit. Discussion followed on terms ‘percent of ownership’, Horizontal Property law, and how PG fee assessment should be based. Joe moved and Peggy seconded to have an Attorney compose a letter addressing the issue of changing fees to be based on percent of ownership to abide by Ky law and our Master Deed. All voted yes in agreement. Dan will get with the Attorney.

Sandy Althanasakes submitted her resignation by email. Sandy was a great worker for the Board and the community and we were all disappointed to see her resign.

2. The valve was stolen again by breaking the case. Dan purchased a valve and some galvanized steel to cover and install in concrete. PG must cover the valve but the molding and welding to cover the valve was done at no cost to PG. Thanks to Dan!

3. The suggestion by Quality Lawn to reseed the lawn this fall was discussed with the decision to wait since we do not have the money. It will be included in the 2008 budget because it is necessary to keep the lawns in good condition. It was agreed to stay with the type of mulch currently being used.

4. Parking violations - A. Redden unit still having cars parking in violation (on lawn, street, etc.). Several letters have been sent so a certified letter will be sent with a warning of towing at the owner’s expense. Stickers can be placed on cars (by Board Members only) that are noted but are new to violating the parking rules.


NEW BUSINESS:
1. Budget for the new year. All line items were read and discussed with the following being noted:

A. The increase in ground maintenance to $17,500 for re-seeding the front lawns in 2008.
B. Water meter separate for irrigation questioned and we have an unused meter that could be used. If Water Company comes in to install a new meter the initial cost could be $2500. Dan to see if lines in back can be used to connect with current irrigation and hook to meter.
C. Ky Realty contract includes 4% increase and request a contract be signed to show the increase and to change the dates to correspond with the calendar year. It was moved, seconded and carried.
D. Pest control is on a rotation basis with only some of the building being done each year.
E. Bad Debt amount of $5000 is a new item included in this budget to offset fees in arrears, delinquent accounts, etc. If this amount is not expended, it can be transferred to the reserve account.
F. Another new item is an annual required Audit and taxes paid by PG.

This year we are expending $12,000 more than we have taken in. Money has been taken from the reserve account to pay bills. Our reserve account is down to $6000 as of this October meeting. The 2008 budget along with the increased fees is an attempt to correct this spiral.

Because a $35 increase was originally voted on and this budget is not based on that increase, Ben relinquished the chair to Erin and moved that the $35 increase vote be rescinded. It was seconded and approved. Ben again took the chair.

Erin moved to accept the budget of $154,015 as proposed. It was seconded and all members approved.

Nancy moved we base the monthly assessment/maintenance fees on percentage of ownership to meet the 2008 budget. Joe moved to table the motion until the next meeting after the letter from the Attorney has been received. Seconded and approved.

It was moved to accept the Quality Lawn contract. Seconded and approved.

Meeting was adjourned.