KACA Annual Association Meeting 2015

KACA Annual Association Meeting 2015

Key Allegro Condo Assoc Annual Meeting June 6, 2015
Allegro House, Rockport, TX

The meeting was called to order at 10:05 am. Attending were Board members Clint Hilton, Jim Stech, Don Sheets, LaRetta Allen

The first order of business was verification of a quorum. LaRetta Allen verified a quorum was met and exceeded and the meeting commenced.

Clint introduced himself and the other Board Members to the audience. Don Sheets gave the report on landscaping/architecture. There has been little change since last year except for replacing mulch in the flower beds with lava rock. Watering restrictions in place by the City hampers changing the landscaping.

Kelly Lough gave a report regarding improvements made to the units over the last fiscal year. A printed handout was available to the members as they walked in. Not on the handout was scheduled restriping of the parking lots in several areas and replacement of the tennis court fence. He announced the code to the pool gate would be changed about a week after the next billing went out to the owners so the owners would have the new combination when they received their statements.

Next to report was Jim Stech, the treasurer. He anticipates total operating expense for 2014-2015 to be $25,000 over the budgeted operating expense due to three things: strapping the a/c’s, new chimney covers and caps and windstorm compliance.

Regarding the 2015-2016 budget, he recommends removing $50,000 from the reserve account and move it into income. Our reserve account at June 2016 will be $46,000. The new budget covers the additional expense of replacing rotten wood. Money is included for repair to finger piers and the tennis courts. He discussed the issue of replacing roofs vs. painting. Jim feels replacing roofs should come before painting but said that will be up to the new Board. An estimate (preliminary) for replacing both the roofs and painting the buildings is $400,000. The proposed budget for operating expense for 2016 calls for an expenditure of $368,000,

Jim took questions from the members. Mike Penrod made a motion to accept the proposed budget and Tom Geren seconded. The motion carried.

Excluding flood insurance, our insurance premiums have increased. $4000 of the increase is attributed to our windstorm insurance. The elevation certificate from last year reduced our flood insurance significantly. Total insurance for 2016 is
$161,000. Of that amount, $128,000 is for flood insurance and windstorm insurance.

Jim noted that owners are responsible for interior insurance on their units. The Association’s insurance rebuilds the shell only.

Clint addressed the clutter on decks and balconies and the problems they cause. It is not only a safety issue as it impedes egress, water from the planters damages the boards and hastens wood rot. He noted the P & P’s have been changed to show owners will be fined if they or their renters don’t pick up after their pets. If owners rent their units they are advised to make sure their leasing agents inform renters their deposits are in jeopardy if they do not pick up after their pets.

An owner asked about replacing some landscaping, which was addressed by Don. An owner complained about the way the palm trees are trimmed, stating the method used actually damages the trees and can cause them to die. Several other owners supported her complaint. Questions continued regarding bikes, paint, etc. Clint told the audience the new Board would certainly consider adding bike racks on all the streets. A member asked if there would be a vote on the colors used when the units are painted and Clint replied there would be two or three palettes to choose from when the time came.

Biographies for the three candidates for the Board were available to the owners when they arrived for the meeting. Clint noted there were four openings for the Board: Clint’s term was expiring, Jim Stech’s term was expiring , LaRetta was resigning with one year left on her term and Dave Covington had resigned. Clint’s, Jim’s and Covington’s positions were 2 year terms. The Board is given the right to appoint a Board member, so to have continuity with so many oncoming new members, prior to the meeting Jim was appointed by the Board to fill LaRetta’s remaining 1 year term.
This left three positions of two year terms to be filled. LaRetta noted all three candidates were highly qualified and motivated and since there were 3 slots, she made a motion, which was seconded by several owners, to vote the three candidates as Board members by acclimation. The new Board members are Paul Stern (unit 810), Richard Beck (unit 804) and Bob Barber (unit 1102). Besides Jim, Don Sheets is the 5th Board member and has one year remaining on his term.

Shortly after 11am the meeting was adjourned and the owners were invited to stay for a light lunch.
Respectfully submitted, LaRetta Allen, Secretary