Minutes July 16, 2024

Lakeland Harbour Board

Meeting Tuesday, July 16, 2024

6:30 PM EDT Clubhouse and Zoom

Notice for the meeting was posted on the llhacondo.com website, posted at the clubhouse and both mailrooms and sent to owners via email. 

The meeting was called to order at 6:33 PM EDT by President Rick Pekar.  After a brief glitch in the Zoom connection at the clubhouse, a quorum was established with three members (Russ, Philomena and Marge) at the clubhouse and three members on Zoom (Howard, Rick and Lester.).  Six owners were present at the clubhouse and four owners were present on Zoom.

Reading of the minutes for the June 25, 2024 Board meeting was waived and on a motion by Howard and seconded by Rick, the minutes were adopted unanimously.

OWNER INPUT

As done in previous meetings, the non-Board Members were invited to make comments related to the agenda for four minutes per person up to a total of 20 minutes for this meeting. 

Helen Sanders objected to the format used for the meeting, citing Roberts Rules of Order that outlines Old Business, New Business instead of the present format.  She briefly stated that door or wall cameras violated the bylaws by altering the common property.  She objected to power washing one building rather than all four buildings.  She approved trimming palm trees.  Helen read the recent declaration and by-law amendment stating a late fee of 8% and $25 penalty for unpaid assessments.

Petra Sanchez made comments regarding the financial issues of the Association and her questions were tabled for further clarification during that portion of the meeting.  She emphasized that as an owner, she has a right and responsibility to be certain that funds are being spent wisely. 

No other owners wished to be heard.

At 7:00 PM EDT, the regular Board Meeting was resumed.

Board Membership:

President Rick Pekar informed the Board about a recent change in Board Certification.  The State of Florida as of July 1, 2024 now requires four hours of education concerning new condo laws, then one hour per year for the following seven years. Members who are currently serving are not required to obtain the four hours until June 30, 2025.  Any new members would have 90 days to meet the four-hour requirement. 

Mike Buller is resigning as Board Member and Secretary.  This is unfortunate as Mike has contributed countless hours to improving the community.  A motion to accept his resignation was reluctantly made by Rick Pekar and seconded by Philomena.  The vote to accept Mike’s resignation was unanimous.

Rick Pekar discussed the volunteer contributions made by Marlene Gutierrez.  Howard Sands made a motion to appoint Marlene to the Board vacancy which was seconded by Philomena Parker.  The approval of Marlene to the Board was unanimous.  Rick Pekar made a motion to approve Marlene as the new Secretary which was seconded by Russ Frank.  The vote to approve Marlene as the new Board Secretary was unanimous.  Karen Pekar volunteered to assist Marlene.

The next item on the agenda was possible installation of door or doorbell cameras and possible installation of wireless cameras on rear and side window (if end unit) of an owner’s unit at the owner’s expense.  The matter was referred to the Governance Committee for research and recommendations.  Rick Pekar stated currently any owner mounting cameras on their door or wall area is violating bylaws because the door and walls are Association property, not privately owned by the unit owner. 

The matter of power washing Building D was discussed.  As its location is closer to the lake, insects and spiders gather on the screens making the area appear very dirty.  An inspection of the other three buildings did not reveal the same level of dirt.  Russ and Lela Frank obtained four bids for power washing D Building.  Russ made a motion to hire Tidy Terry’s at a one-time cost of $658 for washing only the front portion of the building.  Marge seconded the motion and it was carried unanimously.

The next item on the agenda was trimming of 13 trees and removal of one dying palm tree.  Philomena obtained three bids and moved to accept the bid from Paradise View for $1,100.  Marge seconded the motion and approval was unanimous. The company owner assured Philomena he would flag the irrigation sprinklers and would take care when moving his lift trailer.

The next item discussed was approval of two recurring bills:

Mastermind Management for $500

James Pool for $910 which includes the monthly cleaning fee of $650 plus $200 for the Shepherd’s Crook required by our recent county inspection and $60 to replace the broken pool sign.

Other bills had been preapproved:  TECO $74.14, Gas South $5.00 and Lakeland Electric $1819.20. 

Assessment Arrears:

We are working with Mastermind Management and our attorney regarding overdue assessments.  The attorney has stated that Mastermind needs to send a notice to any owner seriously in arrears that within 30 days the matter will be turned over to our attorney for collection.

FINANCE COMMITTEE REPORT                                                                                            

Kathy Parrish, Assistant Treasurer, has an accounting background and has spent countless hours trying to straighten out our financial records.  Thank you, Kathy. 

Kathy has stated that our reserve funds, both the operating and the capital deferred maintenance funds are seriously underfunded due to accounting errors and unbudgeted expenditures.  Furthermore, the $9000 for termite remediation was not a line item in this year’s budget.  Our previously earmarked $50,000 for storm damage deductible was also spent on other items.

Our current bank balances (as of today 7/16/2024):

Capital (Deferred Maintenance) Reserve Funds are required by the State of Florida for any expense over $10,000.  The Association must contribute each year to ensure funding when, for example, the roof needs to be replaced. Furthermore, the Operating Reserves are a savings account for unexpected expenses like termite remediation and storm damage deductible and large yearly expenses, for example, our large insurance bill in June.  Rick Pekar stated a “prudent man rule” which is a legal principle where a fiduciary needs to use the same care that a reasonable person would when handling others’ money.   This legal principal requires Board Members as fiduciaries to set money aside for unexpected expenses as other responsible parties would do.

These accounts have not been funded in some cases and were underfunded in other cases.

Rick made a motion, seconded by Howard, to move $5400 from Wells Fargo Operating to CFB Capital Deferred Maintenance Reserve. This represents 3 months at $1800 (the current budget 2024) for April, May and June. (3* 1800=5400).  There was no discussion and the motion carried unanimously.

Rick made a motion, seconded by Howard, to move $7650 from Wells Fargo Operating to CFB Capital Deferred Maintenance Reserve.  This represents 6 months (Jan-June) increasing the 2024 budget of $1800 per month to $3075 which had been contributed monthly in 2023.  (6* 1275=7650).  There was no discussion and the motion carried unanimously.

Rick made a motion, seconded by Philomena, to move $3075 from Wells Fargo Operating to CFB Capital Deferred Maintenance Reserve. This represents the July monthly contribution which will continue throughout the remaining year. There was no discussion and the motion carried unanimously.

This totals $16,145 added to our Capital Deferred Maintenance Account. Kathy Parrish has the subcategories for the items but was given an inaccurate starting amount by Management and is reworking her numbers.

Rick made a motion, seconded by Howard, to move $30,000 from Wells Fargo Operating to CFB Operating Reserve.  This is a savings account for unexpected expenses. There was no discussion and the motion carried unanimously.

After these transfers are made the new bank balances are:

Rick reported that our earned interest for three months at Climate First Bank is $124.70 for the Operating Account and $2742 for our Capital Deferred Maintenance Account.

At 7:48PM EDT, Russ Frank made a motion to adjourn which was seconded by Howard Sands.  There was no discussion and the motion was carried unanimously.