OLDE CANAL VILLAGE CONDO TRUST
MINUTES OF CONDO TRUSTEE BOARD MEETING

April 7, 2011


The meeting was opened by Andy Habe at 3:00 P.M.

Members of the board present: Andy Habe, Tom Fermi, Roger Lange, Romeo Berthiaume, Marianne Williams

  1. March Budget Review- The cash flow and the bill approval forms were discussed and approved and signed. Marianne pointed out that the bills for the month of March were greater than the income for that same period. The board was concerned because this has been occurring more and more in the last several months. Marianne pointed out that many of the unit owners are not sending in their fees by the first, but rather waiting until the 15th, or the end of the grace period, to pay their condo fees. This means the condo fees are not considered late and therefore not late fine is assessed. A $15 late fee is assessed if the unit owner is late more than once. This put stress on the paying the bills because most of the bills are due before the 15th. Several of the board members made recommendations to shorten the grace and increase the late fee to $20 with no exception, that is, all late fees will be assessed the extra $20. After much discussion, the board voted to change the grace period to end on the 5th of the month and all late payers, that is any check received after the 5th, would be fined a $20 late fee. This new policy will become effective July 1, 2011. The actual due date of the condo fee is the first of each month.

    Andy was concerned that the reserve fund money is not being utilized to pay bills that are extraordinary. Marianne pointed out that the reserve fund must have a minimum amount in as mandated by HUD. This means that 10% of the budget must be maintained in the reserve fund. Because of this, we re mandated to put $1600 in the reserve fund each month. This fund is allocated for major repairs such as reroofing which must be done in about 12 years. Since we have a number of buildings to reroof, the cost of this project would be over $500,000. At the present time, we have less than $100,000 in reserve funds. Tom then said he had a suggestion to increase this underfunded reserve fund. He proposed several different scenarios. One suggestion would increase condo fees in 2012 $15.00 per unit which would be added to the reserve, Marianne suggested an increase of the condo fee to $20, of which $5.00 would be to offset expenses and $15.00 would be applied to the reserve fund. Tom's suggestion would increase the reserve fund to $464,233 by 2023. Interest applied through the years would also increase the amount of money in fund. All proposals were tabled until Tom is able to get a projected estimate of actual costs for the reroofing. Tom mentioned that the cost of replacing the roofs in 2023 would cost about $515,000, however we would do it, piecemeal or at one time. His presentation was based on "pay a little now, not a lot later."

  2. Tom passed out a summary of the unit leaks due to ice dams. He estimated the repairs might be $1000 per roof; however the contractors that have looked at the roofs seem to believe the damage is more extensive, therefore more expensive. Tom has contacted three contractors to give us a price on the repairs. The three contractors are Scott Chase, Cook's Roofing and Superior Roofing. Tom asked them to submit an estimate as well as a workup of what must be done to each roof. He also checked with them to assure their work is guaranteed. The contractors noted the heating wires on some of the roofs and agreed they are useful if used correctly. They suggested leaving the wires on all the time until the snow has melted one foot above the gutter. They said the low voltage of the wires cannot do the job if they are unplugged after a few hours.
  3. Andy looked into the MA Condo law 183A to determine whether we have the ability to assess homeowners for the cost of the repair of the roofs damaged in the storm by the resulting ice dams. A study of the laws determined that the board has the ability to assess homeowners for the expense of damage to common areas.
  4. Tony Carlino- Tony has indicated to Tom that he will be prepared for snow plowing next winter. He and his partner are planning to purchase equipment that will handle large storms and he will be able to remove the snow in a faster period of time.
  5. Marianne reported that she got an email from Jack McKeon and he reported that he has seen all the condos and will be sending a report shortly.
  6. Richard Viens answered Andy's letter and agreed to abide by the one year lease ruling. He will give his tenant the required 60 day notice to vacate the condo in July.
  7. Open communications- A unit owner has asked permission to change the windows in his condo to Harvey Windows. They are the same window but the quality is better. The board gave its approval provided the windows are an exact match to those currently installed. Roger will repair any broken censor on the garage lights in Romeo's absence. Possible buyers for a unit on sale have asked the board for permission to buy despite the fact that they are only 54 years old. No children are involved. If everything else is in order, the board voted to allow the purchase. Roger noted that the bulkheads will be examined for rust and painted this summer. Unit owners will be called prior to painting because the hatch door must be left unlocked so Wilson can check for rust. Tom asked the board for permission to allow his daughter and her children to reside with him and Marti while their future home is completed. He anticipated this stay will be three months or less. The board gave their approval.
  8. Meeting adjourned at 5:40 P.M.

    Respectively submitted by Marianne William