Date: Tuesday, October 30th, 2018
Time: 7:00 pm
Place: Islander Pool Deck, 7928 West Drive, North Bay Village, FL 33141

1) Call to Order and Quorum

Meeting was called to order at 7:02 pm.
In Attendance: Sachin, Dominique, Cesar, Yasmine, Patrick

2) Ratification of Previous Minutes

The prior minutes from the Board meeting on 7.24.18 and 9.20.18 were ratified.

3) Financials

There was a general discussion of the state of the financials. Sachin, Dominique and Cheri have been having conference calls with Jill -- the association accountant on a semi-monthly basis to work to clean up the financial statements. The Profit / Loss Statement is believed to be accurate once final elevator amortization expenses are included. The Balance sheet is in progress. Work on the 2019 budget will begin in mid November.

It was noted that at the time when the 2018 Budget was being considered, Associa was still managing the Islander Club and there were known mistakes with Associa's financial statements. Jill Rubin took over accounting as of January 2018. The Board maintained the prior year (2017) budget in the presence of inaccurate financial statements. Certain categories such as legal expenses came in much higher than budgeted, however for the concrete loan expense category, the refinancing of the concrete loan brought the association expenses down significantly.

There were many variances in specific sub categories of the budget, however per the latest P/L statement that Jill put together, it seems likely that the association will end the year within a plus or minus 2% variance of the overall budget which is normal.

It was noted that with the P/L sheet cleaned up, and the balance sheet in progress, the 2019 budget is anticipated to have much more accurate modeling for various subcategories. The Board aims to keep the maintenance fees at the same level. Budget workshops where owners can ask more specific questions are anticipated to be held in December.

4) Elevators

Mechanical work and Interior work for the 2nd elevator have been completed. However the inspector made additional requests for the generator to be upgraded. Initially a transformer was replaced, however the generator with new transformer failed inspection, and the association decided to replace the entire transfer switch which interfaces with the elevator electrical system.

The association obtained multiple bids, has decided to continue to work with Austin Electric on replacing the transfer switch, has applied and obtained a permit, and is waiting for FPL to schedule a day when the power lines can be temporarily disconnected while the building completes work on the generator.

Once the FPL comes out, and the transfer switches for the generator are replaced, the association can call for a final inspection again to obtain the final elevator certificates and run both elevators.

5) Smoke Detectors / Fire Alarm System

The Board noted that the fire alarm had been triggered multiple times over the past month. In one case, the heat detector in the trash room was triggered, even though the temperature of the trash room was the same as the ambient air. In another case a pull station on the 6th floor failed.

As a result, in addition to replacing all of the smoke detectors, the Board noted that the heat detector would be replaced as well. Additionally, the Board requested that Cheri bring at least one contractor (Bass United) to come out and look at the pull stations on each floor to avoid any more false alarms.

At the present time, it was noted that all smoke detectors except those on the 9th floor had been replaced with new ones.

Finally the Board will look into obtaining bids to replace the fire hoses on each floor as well.

7) Dock & Seawall

The Board discussed the general state of the dock and seawall. Three companies have come out to quote work for the dock. While obtaining quotes, two of the companies noted that the seawall was damaged, came out and inspected the damage and provided quotes to repair the seawall.

At the high end, one quote involved replacing all rebar costing approximately $200k to repair the seawall. At the low end, another quote primarily involved patching the exposed areas of concrete and cost $35k to repair the seawall. With strongly differing opinions on the necessary scope of work, the Board agreed that it would make sense to obtain more bids to better understand the extent of work necessary to repair the seawall.

It was noted that regardless of whether a dock is rebuilt, the seawall will need to be repaired. Sachin and Patrick discussed that in meetings with contractors, it was clear that a deck with the same overall dimensions as the prior existing one would obtain a faster permit approval process, but that the process was expected to take at least 1 year. It was also noted that it may be possible to obtain a deck that allowed for boat moorings, but that the deck would be shaped very differently, would likely have to extend out in a line at least 10 feet from the seawall to protect various seagrass, and that likely only owners would be permitted to dock boats and that the various government agencies would not permit a fully commercial dock. The second option still may be worth exploring, however it was also noted that push back from government agencies would be stronger, and the time period would be longer.

8) Future Assessment

The Board discussed the necessity of a future assessment to repair the seawall and replace the dock. There was general consensus among the Board and owners present that the dock added value to the building both from livability and financial value for owner investors. The Board also noted that certain infrastructure such as the hot water pipes, trash chutes, and water pressure pumps would also be included, as well as lobby and pool furniture. The majority of the expense of the assessment would come from the dock and seawall. Preliminary numbers based on the lower cost estimate repair of the seawall would put an assessment at roughly $150k -- this is based on bids the association already has for infrastructure work and estimates based on specific lobby and pool furniture. This would amount to roughly $1500 for 1BRs and $2100 for 2BRs. There was some discussion of various payment plans, as only some of the money would be required up front to start work. No assessment will be passed until more bids are gathered for the dock and seawall. More precise numbers are expected at the next board meeting.

9) Collections

A brief discussion ensued over the prior owners of units PH8 and 507. It should be stressed that to the Board's knowledge, the current owners of both units are up to date on all payments. In the case of PH8, unpaid property tax put the unit into foreclosure and onto the auction system run by Miami Dade County. In light of imminent sales, the prior year board (dating back to 2014) decided that as a junior debt holder, it was not worth the expense to pursue a foreclosure. The scheduled auctions for PH8 were continually rescheduled and in each case, a cost benefit analysis -- assuming the sale went through on the scheduled date -- went in favor of the association not pursuing a foreclosure. In light of PH8 finally selling, it was noted that a large amount of prior years' maintenance would need to be written off.

In the case of 507, it was noted that the death of both prior owners of the Kane estate made the collections process significantly more expensive than a typical unit, and that the cost benefit analysis favored not moving forward. Association attorney John Goldstein noted that if the prior year Board's were not properly informed, the Association may be able to pursue a malpractice case against the prior association attorney Mike Halberg. Though the Board has no record of communications from Mike Halberg on these particular units after 2014, the Board voted to explicitly write off these as un-collectable expenses and not pursue action against Halberg in light of a reasonable cost benefit analysis.

On both cases, Cesar Reis disagreed with the Board's decision of writing off those debts by casting a dissenting vote.

10) Rules Enforcement

It was noted that after obtaining an official opinion by association attorney John Goldstein, the Board can fine dog owners for damage to common areas. Also that temporary deposits (such as a move in deposit) are allowable activities by the Association. It was also noted that since the installation of the new camera system, generally less damage to common elements was occurring in the building.

11) Adjournment

The meeting was adjourned at 9:02 pm.