KACA Annual Association Meeting 2016

KACA Annual Association Meeting 2016

Annual Meeting of Key Allegro Condominium Council of Co-Owners

The meeting was called to order at 10:30AM by the Vice-President Paul Stern. The acting secretary verified there was a quorum present.

Paul welcomed the owners to the meeting and introduced the board members. Board members Paul Stern, Bob Barber, Tom Geren and Mary Jo Lyons were present. He reviewed housekeeping items including an explanation that Richard Beck, Board President was absent due to medical reasons and was listening in via speaker phone.

Paul provided comments from Richard, explaining that it was the desire of the board to be responsive to the needs of the community and behave in a way that was timely, fair and fiscally responsible.

Paul provided a maintenance update on behalf of Kelly Lough the Maintenance Manager / Property Manager. In general, we have been moving forward with replacement of windows, sliding doors, decks and rails as needed. This year we also completed the parking restriping and freshening of the parking space numbers.  We also completed the re-roofing of sloped roofs and some bulk head work.

We began the repaint and repair of the outside skin of the building. The board felt that it was best to solicit bids from a professional paint company. The decision was made to look at companies outside of the Rockport area, with a search for a professional organization with verifiable experiences in other commercial painting projects of a similar scope. S & S contracting was hired; they did the repaint of Whataburger field in Corpus Christi.

We began the project using our own expanded maintenance crew to move along in front of the paint crew completing the wood repair and carpentry work, including replacement of rotten wood and any calking and sealing that needed to be done. This approach proved to be inefficient and costly with extensive budget overruns. The board made the decision to use S & S contracting to complete the remaining work using their own carpentry professionals.

Paul noted that prior re-painting has extended the life of the skin, but we are finding significant rotten wood that has increased time and cost of the project. The scope of work on each building is going to be different. Some taking longer than others. He estimated that each building should take 2-3 weeks with no carpentry, with carpentry it could double that timeline. The weather has been a delay. The board is hopeful that the project will be completed by the end of 2016, however it is conceivable that it could take longer if the weather continues to slow our progress and depending on the condition of the wood and repairs needed on each of the buildings as they progress around the property. Paul described the methodology for progressing around the complex.

Paul went on to discuss the choice of paint colors. The board shared that color choices that have been made and shared with the owners in prior communication. The board’s priority is to get the paint on the buildings as fast as possible to protect the skin and be ascetically pleasing to most unit owners. The board acknowledged that some owners were not in agreement with the color choices but shared that an independent color consultant was hired to make a design decision that was both on trend and in keeping with a coastal theme.

The Board members themselves have no expertise in color selection or design and unanimously voted to retain a consultant to select a color scheme that would be clean, crisp, contemporary, and coastal while not being too bright or outlandish. Steve Aikin of Maison Et Jardin, LLC in Rockport was selected.  He is well known in the area and has done design and interior work on prestigious projects such as, The Islands of Rockport, LaBuena Vida and the Boardwalk, as well as numerous renovation & remodeling projects on Key Allegro Isles. His website is http://maisonrockport.com 

The color theme could be generically described as an alternating (but coordinating with one another) building-by-building scheme of pale coastal green and pale coastal blue, both with off-white trim.

 A color board may be obtained at any Sherwin Williams, by asking for the “Southern Shores and Beaches” collection or the colors can be seen on the Sherwin Williams website by clicking on this link to the collection :(see colors chosen below the website link) http://www.sherwin-williams.com/homeowners/color/find-and-explore-colors/paint-colors-by-collection/exterior-color-schemes/southern-shores-and-beaches/

The wall colors will alternate between buildings:     

  • KOI POND, SW 7727 and/or
  • DOCKSIDE BLUE, SW7601 (depending on the building)

Trim color on all buildings: 




Door Color on all buildings:  

  • NATUREL SW 7542

In addressing Q & A from the floor Paul indicated that all exposed wires would be addressed, light fixtures would be replaced and trim details taken care of before final payment made to the contractors. This provides an incentive to get it right and a final walk through would be completed before final payment made.

Storm shutters on some units that are older and do not meet current wind storm requirements will be removed as previously communicated. Paul said that we will have less visual blight and with complete assurance we will like the final product and be proud of the complex, more so than we are now. Unit, #507 has an issue with his gutter. Paul suggested he put in a maintenance request. The board agreed to look into this as an action items.

Palm tree trimming is on the docket. The style of trimming will be discussed before proceeding. The board is taking this under advisement and will look to consult with an arborist for advice on the pros and cons of each approach. Several of the owners present indicated that the palm trees around the pool area needed to be addressed as soon as possible. They were creating an ongoing maintenance issue in and around the pool due to windblown debris fouling the pool on a daily basis. The board agreed to look into this and make this action item a high priority for the enjoyment of our residents during the peak summer months.

The trash issue was also addressed. The board shared that the decision to move away from trash pickup at individual buildings and switch to a dumpster was done a considerable cost savings to the KACA budget.  We are aware that small dumpster is insufficient for the needs of the community and moved to request multiple pickups per week. This should alleviate any overflow. The placement of the dumpster was also discussed. The current placement near the 100 building was designed to be a temporary solution. It was agreed that the board would look to relocate the dumpster to a less intrusive area near the tennis courts and build a small enclosure if feasible. The other dumpster is for carpentry refuse only. At some point the big dumpster will go away in the next year once we are done with the carpentry repair and deck replacement.

Paul addressed questions from the floor:

Paul indicated that the rails will be building colors. Contrast painting the rails would have driven up the cost of the project. Board agreed to not spend the labor dollars.

One of the owners shared that an inspector mentioned some of the steps are not up to code and we should look into this. Paul indicated this would be addressed as part of the current painting and repair project.

Paul turned the presentation over to Tom Geren, Acting Treasurer who was appointed to fill an incomplete term from the previous treasurer. Tom introduced Mike Johnson from Johnson & Creekmore the accounting firm that has been serving the KACA for many years.

Mike Johnson reviewed the financials and the current balance sheet, acknowledging that his presentation was not near as interesting as the color choices. Mike indicated that the letter included in the packet of materials for owners was standard issue, including the necessary regulatory disclosures they are required to provide.  He indicated that our fiscal year end is June 30th, so we are looking at 10 months of numbers.  He indicated that as an organization we are fortunate with the boards we have had over the last few years. They have tried to address repairs as needed and were much more responsive than previous boards. He reviewed the balance sheet, explaining that accounts payable are accrued during the month but not paid yet. Discussed the two major reserve buckets and described their purpose.

Tom expressed his concern that we do indicate a short fall in our operating budget for the year and this must be addressed immediately.  He shared that the $200k reserve was the special assessment for painting and the $61k in reserve that we voted on in 2012 be set aside for major projects and to cover the deductible for wind storm insurance. We are down to $30k in operating cash.

Tom explained that it was the consensus of the board that due to the cost overages of the current paint and wood replacement project that the board is faced with some tough decisions. The time has come to raise our dues and also request a special assessment from the owners to generate the fund necessary to address the budget shortfall and allow the association to begin to build reserves for future maintenance & repairs such as bulkheads and dock repair.  If we don’t raise our monthly now we are spending more than we are taking in.

Following are the key points regarding the budget discussion:

  • Are we fiscally sound? – not if we don’t have an assessment
  • Most owners were under the assumption that the last assessment was used for the painting, this is true but as discussed we have experienced higher repair costs than anticipated
  • The board acknowledged that multiple years of assessments and dues that are not in line with similar local properties could negatively impact resale value.
  • The wood replaced in the last repaint was superficial and the paint used was proven to be inferior resulting the extensive repaint and repair currently underway. The contractor was sued but filed for bankruptcy protection so the association was unable to recover any damages.
  • Wood if properly cared for has a 15 to 40-year lifespan, we are now at the end of that lifespan.
  • Once we get through this phase we will be in a valley of repairs
  • The board expects that the current paint and repair project will improve the value of the property and resale potential for the units as will a consensus of agreement from the KACA owners.
  • Discussed pros and cons of monthly assessment or raising the dues; Some residents thought raising the dues would be a deterrent to resale, and preferred a special assessment
  • One of the owners indicated that it would be helpful if we understood how the other local condo communities compared with rates and assessments. Tom shared that we are in line with other similar communities
  • Bulkheads, piers and docks are the next big project. We look to get a seawall company to come in and do an estimate and prioritize the repairs in order of need and safety.
  • Suggestion made that we do a review of how we apportion the monthly assessment based on square footage. The board shared that this had been discussed in prior years and that we all have the same legal form of ownership; all own an equal amount of the outside. It’s in our declaration of ownership.
  • Prior suggestion had been made to hire a marine engineer. And if we did that we would have to disclose the results of those estimates for the engineer’s report. And this could create issues at resale. The board stated that we are looking for a no obligation estimate and consult rather than an engineer’s report.

Paul moved to a vote after the floor discussion. Residents proposed the issue of the assessment and dues increase should be voted on as separate issues.

A motion was made by Dave Covington, to raise the special assessment of $750 per unit. The motion was seconded and the vote unanimous.

A motion made by Rick Covington to raise the dues to $350 per month beginning with the August billing cycle. The motion was seconded and the vote unanimous.

Paul shared findings of the many discussions had by the board assured the residents that the board had done their due diligence and exhausted all possibilities. Residents stressed that the owners meeting was the only place for this to be discussed and that they have right to ask a questions. The board was in full agreement with this.

Paul Stern made a motion to vote on the new board members.

Tom Geren was voted in as Treasurer and Mary Jo Lyons as secretary.

Paul opened the floor to any new business and final comments from the floor:

  • When you trim a palm tree you get more growth. Has anyone asked about removing some of the trees. Suggestion moved that we do a carrot top around the pool area. Paul moved that we will get a professional opinion on the best approach.
  • New business – Dave Covington asked that the board review the tennis court issue and believes that we are creating unnecessary expense to maintain the tennis court. Cost to keep it maintained is relatively modest but to make major structure changes is expensive. The board agreed to take this under advisement and discuss possible solutions. A suggestion was made to survey the residences in order to solicit input and suggestions as to the best use of the space. The board agreed to do a survey later in the year but wanted to focus on completion of the current paint and wood replacement project.
  • Not letting people park boat trailers is a negative to both renters and owners. There was mutual agreement on this from the board as well the residents.
  • Knowing that the tennis courts are a topic of discussion we agreed to not spend any money on the tennis court other than ongoing minor maintenance. This is an action item going forward.
  • Any other new business – we have had 2 deaths of people falling into the canals couldn’t get out. Two months ago a 13 yr old boy fell out of his kayak and panicked. Could have been a tragic ending. One resident put in a ladder at his own expense and then it was removed due to regulations.
  • We need to make the current ladders more visible. Board agreed to take the ladder issue under discussion. Question was raised if we had enough ladders. Paul agreed that this was a valid concern. We will price this and get an estimate and research customary standards in this area.
  • Property manager – this is something that we are evaluating. Current manager is part time, if we used a property management company and what this would entail from a cost management perspective? Paul said that the board felt that we need an entity or individual that would be present, responsive and cost effective to address owners concerns and rule violations in a timely manner. The board is aware that there is an issue. This is an action item to be addressed by the board.
  • One of the residents asked about designated parking spaces. She understood that the rules indicate that you can use your own designated spot and one unmarked spot and this is creating a problem. It is the understanding of the board that the unmarked spots are available on a first come basis. The board will take this under advisement and review the current rules proposing changes if needed.
  • One owner stated that she was aware that an owner had approached another owner resulting in a confrontation and this has created a situation where some owners are afraid. The board agreed that owner to owner disputes are not acceptable and that hiring a 3rd party property management company would provide resources to address these ongoing issues.
  • Question was raised if we can call a towing company if there is a violation. The board said that this was an issue for the board to resolve and to please contact a board member with any known violations until a decision is made regarding a property manager.
  • It was brought to the attention of the board that sprinklers were in disrepair and running while it was raining and that this was a needless expense and waste of water. This was another action item for the board to address.

In closing the board would like to share that a few attendees were disruptive and if it re-occurs next year, they will be asked to leave the meeting. We all have a responsibility to keep our emotions in check — not just the Board. This type of behavior is disrespectful to everyone present and not fair to other owners.

A final motion was made to adjourn the meeting. Vote passed, meeting adjourned at 12:20 PM.

Paul invited residents to bring any individual issues to him after the meeting if needed.