Minutes of December 1996
BALLENA BAY TOWNHOUSE ASSOCIATION
board OF DIRECTORS MEETING
December 10, 1996

MINUTES

CALL TO ORDER - The meeting was called to order at 7:30 p.m.

ATTENDANCE - Directors Present: Flanigan, Frankel, Manter, Neil and Sullivan. Also present: Manager Rich Noble, homeowners Ray Lillywhite, Mel Schwartz, Ruth Masonek, Phyllis McGrew, Jennifer Flanigan, John and Nancy Moore, Jim and Audrey Ehrlich, Bryan and Toni Leyda, John and Marguerite Sullivan, Archie Stone, Julie Linford, Bob and Willie Flaherty, Corinne Osicki and Phyllis Iacampo.

APPROVAL OF MINUTES

Board Meeting of November 12, 1996 - There were no corrections.

MOTION: It was moved, seconded and passed to accept the November 12, 1996 Board minutes as presented.

INSURANCE AGENT REPORT

Stanley Morrical of Morrical Insurance Agency explained the status of the Association's claim for dock storm damage, noting that there was no benefit to keeping the policy in force during the appeal process. Manager Rich Noble was directed to research the Association's previous coverage through Lloyd's of London. Mr. Morrical agreed to investigate the carrier's position on the distinction between floods and waves, and to research the availability of better coverage.

MOTION: It was moved, seconded and passed to cancel the Association's policy with Scottsdale Insurance covering the docks as soon as possible.

Mr. Noble provided background information regarding the increase in premium and deductible on the Association's current master policy, and Mr. Morrical agreed to investigate alternative coverages and report back in two to six weeks.

PRESIDENT'S REPORT

President Frankel stated that he must resign as President, as his work will keep him away from Northern California too much. He stated that election of a new Director would take place under Old Business.

TREASURER'S REPORT

Gary Flanigan reviewed the financial statements for the period ended November 30, 1996 and provided an overview of budget variances, noting that the Association was on budget overall.

MANAGER'S REPORT

Mr. Noble called the Directors' attention to a copy of the CAI newsletter in their packets which contained articles on relevant insurance issues. He recommended that the Architectural Committee look at the issues surrounding installation of satellite TV dishes and MDS antennas and develop a plan of action and/or guidelines for addressing them.

Mr. Noble called the Directors' attention to the proposal from J. F. Dworkin for roof inspections and preparation of a prioritized maintenance matrix, and a proposal from Excel Roofing for several roofing projects. He noted that bids for ramp, landing and stair repairs would be considered under Old Business. Mr. Noble stated that he was seeking additional bids for painting of the light standards and expected to have them in hand for Board action at the January meeting.

COMMITTEE REPORTS

1. Home Maintenance and Architecture - Lee Manter suggested an article be included in the next newsletter informing homeowners that they need Association approval for installation of antennas or satellite dishes, and stated that he would bring the matter before the committee. He called on Mr. Noble for a report on roofing activity.

MOTION: It was moved, seconded and passed to accept the bid dated December 12, 1996 from Excel Roofing to replace front and back shingle roofs at 443, 447 and 449 Cola Ballena.

Mr. Manter recommended acceptance of the proposal from J. F. Dworkin Associates for surveying and summarizing roofing needs. Mr. Noble responded to questions regarding the need for the new survey.

MOTION: It was moved, seconded and passed to accept the proposal dated December 6, 1996 from J. F. Dworkin to survey roofing needs and prepare a summary, at a cost not to exceed $6,000.

Mr. Manter reported on his research regarding signs for the 300 block of Tideway Drive. It was suggested that a legal opinion be sought before installing the signs.

MOTION: It was moved, seconded and passed to allocate up to $200 for purchase of signage for the 300 block of Tideway Drive to denote "Private Street, Townhouse Parking Only."

2. Waterside Maintenance - Jeff Frankel reported that a survey of existing floats had been started in preparation for implementation of the new float policies. He stated that he would pass the task on to his successor.

3. Finance, Insurance and Legal - Gary Flanigan stated that he doubted the Association's existing insurance would cover storm damage to the docks, and Mr. Noble agreed to research the policy.

4. Neighborhood Communications - Lori Sullivan thanked homeowners for their input for the newsletter, and solicited ideas for additional articles. She noted that the next issue will include information on homeowner websites.

5. Landside Maintenance - Mary Neil reported that there had been lots of tree work to prevent storm damage, as well as removal of one tree in preparation for the next phase of the Ballena Boulevard renovation. She stated that the bid for Ballena Boulevard had been broken into phases, and $1,000 had been added to the total budget for that area. Ms. Neil stated that it was anticipated that the work would be done in January and February.

RESIDENTS' TIME

Ruth Masonek stated that the siding at her place had not been properly sealed after repairs, and that water damage had resulted. Mr. Noble stated that he would investigate.

Willlie Flaherty asked when her unit would be repainted. President Frankel stated that nearly 50% of the homes would be painted this year, depending on the bids received. Mr. Noble stated that, of sixty homes to be painted over the next two years, the Flaherty's home would probably be done in the next phase.

Bob Flaherty asked, in light of the dock problems, whether there were sufficient funds for all the work the Association is planning. President Frankel stated that, depending on cost for the docks, the Association may have to dip into its reserves to complete the work.

Julie Linford suggested that the Association allocate its reserves by asset category, indicating a percentage funded for each asset category. Several current and past Board members made the argument that, since the reserves are currently so underfunded, the exercise would be pointless. Ms. Linford also suggested that the date each asset is placed into service should be accounted for.

WRITTEN CORRESPONDENCE

1. Letter from Attorneys Fong & Fong Regarding Jim & Mary Neil

MOTION: It was moved, seconded and passed to grant the Neils permission to construct their deck based upon the plans and specifications previously submitted to the Association.

Mr. Flanigan stated that he would arrange for a letter from Fong & Fong to be sent to the appropriate City agency.

NEW BUSINESS

1. Summary of Insurance/Claims Procedure - Mr. Noble presented a sample Resolution Re: Administration of Insurance Claims and recommended its adoption by the Board.

MOTION: It was moved, seconded and passed to adopt the Resolution Re: Administration of Insurance Claims, to be made part of the Insurance Summary and mailed to the membership as soon after January 1, 1997 as possible.

2. Professional Reserve Study Bids - Mr. Noble was directed to solicit bids from professional reserve study firms.

3. Selection of CPA for Annual Audit - Mr. Noble recommended acceptance of the proposal from Edward W. Riback, CPA for preparation of the Association's annual tax returns and audit.

MOTION: It was moved, seconded and passed to accept the proposal from Edward W. Riback, CPA, or preparation of the Association's annual tax returns and audit, at a cost of $1,650.

OLD BUSINESS

1. Heavy Duty Equipment Outstanding Issues - President Frankel reported on his research into the situation, referring to his December 4, 1996 memo to the Board. He recommended that the Association pay Mr. Helwig's outstanding invoice and contract with Mr. Helwig to dispose of the old floats.