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Calusa Point Homeowners Association, Inc. Board of Directors Meeting

Wednesday, September 16th, 2015

Calusa Point Homeowners Association, Inc. Board of Directors Meeting – Wednesday, September 16th, 2015 1 | P a g e

Board Members: Eric Diaz - President Belen Perez - Treasurer

Melissa Izquierdo - Secretary Ephrat Yovel - Director - Absent

Also present at the meeting were: Natalie Cedeno of Florida Property Management Solutions, Inc., and several homeowners (see attached sign in sheet).

The meeting was held on Wednesday, September 16th, 2015 at 7:00 pm at the Calusa Point HOA poolside cabana.

Call to Order: The meeting was called to order at 7:04pm by Eric Diaz.

Proof of Notice: Notifications were posted on the information board next to the pool, posted on the calendar section of the Association’s Website: www.CalusaPointHOA.com and a sign was placed in front of the guard house as well as posted on the information board located next to the clubhouse.

Minutes of the Previous Meeting: Motion was made to approve the minutes of the previous meeting held Wednesday, August 26th, 2015. Motion by: Belen Perez Seconded: Eric Diaz Status: Approved

New Business Board Vacancy: Motion was made to appoint Bruce Leavitt as the Vice-President of the Board of Directors. Owners were advised that the Association’s attorney, Marisol Basulto, will be conducting additional interviews to fill Board of Directors vacancies; any owner who is interested in participating should contact Management. Motion by: Melissa Izquierdo Seconded: Belen Diaz Status: Approved (All in favor)

Reserve Committee Presentation: By: Frank Griffith, See attached presentation documents, Exhibit A, B & C.

Property Manager Presentation: By Natalie Cedeno, See attached presentation document, exhibit D.

Note: Owners were reminded that October 2nd, 2015 is the deadline to submit comments and suggestions on the 2016 Budget and or the Reserve Study.

Adjourned: 8:45pm Respectfully Submitted, Natalie Cedeno, LCAM, CMCA, AMS Recording Secretary


Exhibit A Additional information Purpose of the reserve study is to slowly accumulate association funds so that when big budget repairs are due, the association has the funds to pay for required maintenance, repair or replacement and ensure that common property is adequately maintained and in usable condition. The costs of the entire reserve need are divided across 30 years so that the full cost of repairs does not need to be paid each and every year. The reserve balance on Jan 1, 2016 should be $1,077,977. On Jan 1, 2016, Calusa will only have $316,494. This is due to insufficient levels of monthly fees over the past 10 years. This is the main reason that the fee hike is so steep. From this year onwards, the reserve study will be updated every 5 years to ensure that the community doesn’t fall back to an insufficient reserve level and that our annual capital improvements cost estimates keep track of changes in service costs and are accurate. The required list of required capital projects is dependent on size of the community and its associated amenities to maintain an acceptable service and safety level. By law a reserve is considered fully funded when all required capital items are considered and a cost is attached to them. The Board is not allowed to defer items or remove them from the required list at will. To change the legal requirements, the community must have an individual vote on removal of each and every item from the list, recognizing that if this occurs the Board must impose a special assessment to cover the full repair cost of each and every item (with up to 3 months’ notice before payment is due).


Required projects for 2016:

Item Projected Cost Need Recommended

Priority for 2016

Asphalt – Resurface $433,000 Asphalt resurfacing has not been done since community was developed in 1982.

Asphalt has a life of 25 years, and we are already beyond that as this project has

been deferred several times due to cost. That is one of the reasons we have

increased ponding and flooding on the property. In addition, because the asphalt

is essentially “rotten” heavy trucks are damaging it (creating potholes) every

time they are on the property and why we have new potholes that need to be

patched after every rain. Furthermore, because community has not resealed

asphalt n past 10 years due to lack of funds, asphalt has deteriorated even faster

and we cannot defer this item again

3

Gazebo – Replace $9,500 The gazebo wood is rotten and needs to be replaced as it is a safety hazard,

however, it is a lower priority than other projects due to limited use

12

Directional/Street Signs

– Replace

$21,000 All street & directional signs that are still on wooden posts or still made of wood

need to be replaced due to rot.

7

Site Pole Lights –

Replace

$130,000 Community street lights are: a) not up to Dade-County code and are a safety

hazard; b) wiring in the community is out of code and shorting out on a regular

basis; c) because of this, our electrical repair costs for 2015 are already at

$17,500, and 15% higher than last year. If we don’t replace the lights then: a)

our repair costs will only increase; and b) the community is liable for safety

hazard caused by insufficient lighting

1

Landscaping - Refurbish $60,000 A) Some of our trees are reaching the end of their life, and we need to start thinking about replacements; and

B) Our insurance doesn’t cover any landscaping and we need to ensure that if a hurricane occurs we can replace damaged trees and repair the damage they will cause if uprooted

Reserve committee suggests splitting this cost into 2, and deferring half to 2017

9



Priority for 2016

(the entire landscaping replacement cost is actually estimated at 120,000 every

10 years (this cost is split into 2 items – one time and recurring, each at 60,000 -

but the one time will cover some basics – i.e., small caliper trees and immediate

damages – if we have a problem). Once we are past this cost, we will only have a

recurring 20,000 amount every 3 years

Barcode Reader –

Replace

$13,400 Manufacturer serviced unit and advised that the laser is not functioning properly

(100% accuracy) and due to decreased performance older labels are not

readable and some vehicles fail verification. The access control panel that feeds

the information from the reader is discontinued and cannot be replaced when

failure occurs. Furthermore, the software doesn’t work with the updated

versions of the operating systems so cannot be updated by the vendor (still on

windows xp) which causes frequent computer failure. Needs to be replaced.

4

Irrigation Pumps –

Partial Replace (5 of 28)

$22,000 There are 28 pumps (and electrical panels) on the property that: a) are not

grounded; b) not up to code; c) are shorting the electricity to several street

‘pods’; and d) are a safety hazard when it rains.

Reserve committee suggests replacing the 5 most urgent ones and then the

balance, so that after 5 years all will be repaired and up to code

2

Golf Cart – Replace $7,500 The one in use now is on loan from the security company as ours broke down 2

years ago, and they will start charging us for its use

6

Pool Deck – Seal/Repair $15,800 Pool deck is cracked and needs to be resealed otherwise pool will be closed for

use

8



Priority for 2016

Pool Deck Lighting –

Replace

$12,500 Pool deck lighting is shorting out and a danger to users in the evenings. Will be

replaced at same time as street lights to save money on work.

1

Pool – Resurface $12,000 Pool has cracks and needs to be resurfaced otherwise pool will be closed for use 11

Pool Heater – Replace $4,500 Pool will not be certified for use by inspectors without updated equipment. 5

Playground Equipment

– Replace

$18,500 Playground equipment is beyond its useful life, and presents a safety hazard 10

Tennis Courts – Re-coat $11,000 Tennis courts need to be recoated due to cracks. This is a safety hazard and if not

done, courts will be closed for use.

13

All other projects (2017 and beyond) listed in the Reserve Study -

Item Projected Cost Need Projected

Replacement Year

Asphalt - Seal/Repair $43,300 Resealing and repair needs to be done every 5 years – after resurfacing.

This is an item that the community stopped doing in the last 10 years due

to lack of funds which has contributed to asphalt deterioration and

inability to further defer the asphalt resurfacing

2020

Site Fencing: Metal -

Replace

$177,000 Fencing on community boundary 2020

Mailboxes - Replace $37,800 All mailboxes in the community 2026



Replacement Year

Sign/Monument -

Refurbish/Replace

$15,000 Calusa (wall) sign at entrance 2030

Landscaping –

Refurbish (Recurring)

20,000 every 3

years

A) Some of our trees are reaching the end of their life, and we need to start thinking about replacements; and

B) Our insurance doesn’t cover any landscaping and we need to ensure that if a hurricane occurs we can replace damaged trees and repair the damage they will cause if uprooted

This is the balance on the entire landscaping replacement cost (entire cost

estimated at 120,000 every 10 years). The recurring cost (60,000) is split

into 3 payments, with a payment of 20,000 every 3 years

2019 / 2022 / 2025

Building/Common

Exteriors - Paint

$500,000 Cost of painting in 2014 was $298,500. All bids received are shown below. 2020

Common Windows &

Doors - Replace

$5,000 These are the windows and doors on the guardhouse and bathroom in

pool.

2022

Roofs (Clubhouse) -

Replace

$13,500 Roof of clubhouse. 2030

Roofs (Guardhouse) -

Replace

$5,000 Roof of guardhouse. 2030

Barrier Arm Operators -

Replace

$13,500 The electrical “brain” for the barrier arm needs to be replaced every xxx

years.

2024

HVAC (Guardhouse) - $3,000 A/c unit for guardhouse 2024



Replacement Year

Replace

Security Cameras -

Upgrade/Replace

$8,500 Guardhouse security cameras 2023

Bathrooms (clubhouse)

- Remodel

$15,000 Updating and/or major renovation to the bathrooms in the pool clubhouse After 2030

Pool Deck – Furniture

Replace

$8,000 Replacement of furniture on the pool deck 2019

Pool Fence - Replace $6,300 Replacement or repair of pool fencing 2018

Pool Equipment -

Maintain/Replace

$2,500 Pool will not be certified for use by inspectors without updated

equipment.

2017

Tennis Courts -

Resurface

$32,000 Tennis court resurfacing must be done every couple of resealing cycles.

Otherwise courts will be closed to further use.

2022

Tennis Court Fencing -

Replace

$11,300 Tennis court fencing will be replaced at the same time as resurfacing

occurs.

2022

Bids received for painting in 2014

Bidder A $329,850

Bidder B $483,839

Bidder C $559,850


Bidder D $435,270

Bidder E $298,500

Bidder F $337,800


Exhibit B Association Budget BACKGROUND INFORMATION FOR DISCUSSION PURPOSES ONLY

Association Budget. Florida law [Chapter 720.302(6)] requires that an association prepare an annual budget that reflects the estimated revenues and expenses for that year. The budget is prepared and adopted on an annual basis and includes operating and reserve accounts for capital expenditures and deferred maintenance for which the Association is responsible for.

The proposed 2016 Calusa Point annual operating budget (based on current expenses, excluding reserves) is $420,040. (This is not the final budget but an estimate only as the Board has not completed its budget discussions).

Monthly Fee. The monthly HOA fee is made of two parts:

An amount to cover current year operations. Part of the monthly fee is designated to pay for current year operations (typically includes landscaping, pool maintenance, insurance, etc.).

An amount that goes into a reserve account. A portion of the monthly fee is placed into a reserve account for long-term repairs and replacements.

The current (2015) monthly fee is $160 per month per unit Reserve account. The purpose of the reserve account (“Reserve”) is to slowly accumulate association funds so that when big budget repairs are due, the association has the funds to pay for required maintenance, repair or replacement. Reserves are part of our investment in our community. Their purpose is to ensure that common property is adequately maintained and in usable condition. A Reserve must be established for any item for which the deferred maintenance expense or replacement cost exceeds $10,000 in any gated community. An association may adjust reserve assessments on an annual basis to take into account any changes in estimates or extension of the useful life of an item caused by deferred maintenance. Improper funding of the Reserve results in the need to levy a special assessment or borrow funds from an outside lender. The Calusa Homeowners Association uses the Pooled (Cash Flow) Funding Method for the Reserves. Costs are calculated by projecting Reserve allocations and disbursements over 30 years. Funds in the pooled Reserve are available for the costs affiliated with any repair or maintenance item in the Reserve pool as detailed in the Reserve schedule. On January 1, 2016 the Reserve account is projected to hold $316,494.

Reserve study. The reserve study gives the Association a better idea of what major expenditures to expect and an estimate of when these expenditures will occur.


Special Assessment. Occasionally, the HOA may need to come up with funds in excess of the money raised by the monthly fees. In that event, the association has the power to levy a special assessment to cover the one-time expense of a major repair or improvement. The special assessment becomes an owner obligation as soon as the resolution is adopted. The adoption of the assessment creates a lien against the homeowner's property. The homeowner is then responsible for immediate payment in full of the special assessment.

The reserve study (available online) recommends a raise in the monthly fee and an additional special assessment of $1,500 per unit for 2016 in addition to the monthly fee. [This is equivalent to a monthly fee of $285]


Based on the details of the 2015 reserve study, the Reserve Committee is listing the basis for discussions on the amount to be collected for the monthly fee:

2015 Option 1

Based on Reserve Study

Option 2 Based on Reserve Committee

recommendation

Option 3 Fully funded

(required by law)

Annual Association operating costs (without Reserve)

409,680 420,040 420,020 420,020

Dedicated Reserve funding (legal requirement) 116,400 157,800 157,800 157,800

Additional requirement for Reserve funding 0 277,060 500,644

Special assessment 411,000 0 0

Total 528,080 988,840 906,620 1,078,464

Total number of units 274 274 274 274

Proposed Monthly Fee 160 285 (equivalent) 260 328

Per unit monthly operating cost 124.6 127.75 127.75 127.75

Per unit monthly reserve 35.4 157.25 132.25 200.25

Required Reserve (per statute) 983,310 983,310 983,310 983,310

Beginning Reserve balance (on Jan 1, 2016) 316,494 316,494 316,494 316,494

Reserve underfunded by (666,816) (666,816) (666,816) (666,816)

2016 Capital improvement & replacement needs (see list)

814,485 814,485 814,485 814,485

Accounts balance for 2016 (549,751) (138,751) (220,951) 2,633

Implications for community due to Reserve balance

Negative balances for next 30 years – Not legally allowed

No additional long-terms repairs can be undertaken without a special assessment for each and every project

Community and homes lose value

Negative balance in 2016 only because Reserve Committee used worst case estimates in its calculations

If HOA fee comes back down to 160 in 2017, we will have negative balances again in 2017 and no capital improvement projects will be completed after 2016

Negative reserve balance for 2016.

HOA will need to prioritize capital improvements and defer some to 2017

From 2018 Reserves will start accruing a positive cash flow


Notes: 1. All repair and replacement expense calculations are made on a worst case basis in terms of cost; 2. All information related to the Reserve is valid until the next periodic reassessment (in 2020);

List of Capital Improvements & Replacement Needed in 2016 Proposed Reserve Committee Prioritization Site & Grounds Asphalt – Resurface $433,000 3 Gazebo – Replace $9,500 12 Directional/Street Signs – Replace $21,000 7 Site Pole Lights – Replace $130,000 1 Landscaping - Refurbish $60,000 9 (suggest splitting this cost into 2, and defer half to 2017) MEP Barcode Reader – Replace $13,400 4 Irrigation Pumps – Partial Replace (5 of 28) $22,000 2 Golf Cart – Replace $7,500 6 (the one in use now is on loan from the security company as

ours broke down 2 years ago, and they will start charging us for its use)

Interiors and Amenities Pool Deck – Seal/Repair $15,800 8 Pool Deck Lighting – Replace $12,500 1 Pool – Resurface $12,000 11 Pool Heater – Replace $4,500 5 Playground Equipment – Replace $18,500 10 Tennis Courts – Re-coat $11,000 13 Criteria use to determine prioritization: 1 – Safety of whole community and overall contribution to value 2 – Need 3 – % use by community


Special Request – Roof Due to complaints by homeowners about the visual impact of roof replacement at different times, the request was made that the Association consider taking up the responsibility for roof replacement. In the supplement to the Reserve Study, calculations for roof replacement costs were based on the assumption that 50% of units have roofs that average 5 years old and 50% of units have roofs that average 15 years. An average roof size of approximately 1,200 GSF was used for calculations, and a cost range of $7-9/GSF. The assumption is that first community-wide roof replacement would occur in 10 years (2025), after which it would occur on a 25 year schedule. The immediate implication for the monthly fee is that it would need to rise to $577 in 2016, and rise by another 20% in every one of the initial three years (2017 – 2020), followed by a 5% increase in every subsequent year. The Reserve Committee does not recommend this course of action


Exhibit C

Good evening,

My name is Bryan Nemeroff. I have lived here with my wife since October, 1982. That's 33 years. We moved here after

we got married and fell in love with Calusa Point. We bought our townhouse as a starter home and as it turned out, we

never left. We have raised our children here, we've had made many beautiful memories. I have served as a past

President of the Homeowners’ Association for many years, and I am currently serving on the Reserve Budget

Committee. Some things are happening now and there are some discrepancies that are causing some people to be very

upset. I would like to take this opportunity to express my thoughts.

Please do not be fooled or misled by any inaccurate information or exaggerations. Our community is at a critical

crossroads regarding its now delicate infrastructure. We can choose to tend to the necessary matters now that need

attention and fund those efforts by raising our monthly dues, or we can ignore them and pay substantially more in the

future. No one likes the idea of an increased HOA dues structure, but we have now reached the time to prepare and act

in a smart and prudent manner as homeowners. I strongly urge each of you to realize and understand the state of

affairs as they now stand. Please support the efforts of your board, the Reserve Budget Committee and the Property

Management Team.

The board has emphasized that there are a large number of projects on the property that now need our serious

attention. We have gone for many, many years without a maintenance fee increase, however it has come to the point

that the free ride is over. There are many people here who have opinions, yet they have things to say that are not are

not based on actual facts and this creates an environment of misinformation. We live in a wonderful community. We

have all the amenities we could ask for with everything at our doorsteps. We have a great board and property

management team that works tirelessly to try to maintain and improve what we have. There are those who think

everything is fine, but you now need to look beyond the esthetics and see the guts of the matter and know that Calusa

Point’s reserve budget is dangerously low. You can no longer live here and pay $160 a month and expect the

maintenance of the infrastructure and the amenities such as the pool and tennis courts to be maintained at these

current rates. Without these amenities your property value will suffer. Everything has gone up and it is time that our

dues are increased as well. Our homeowners need to take an active part in bringing our community back to the beauty

and standards that it once was. For those of you who may be new residents here, you will not be able to relate to the

pride we took when we told people we lived at Calusa Point, but if things get any worse, we will no longer warrant the

respect we once garnered in the West Kendall real estate market. I know we are all spoiled by our lower maintenance

fee, but you can't have things both ways, that is live in a beautiful, safe community and not pay for it. We all love living

in a gated community with 24 hour security, a place where you feel safe walking your dogs after dark, a swimming pool,

playground, tennis courts, manicured lawns, tree service, painting of buildings, sealing of roads, lighted streets. You

can't get all of this without paying for it. So please my friends and neighbors, I implore you to realize that your biggest

financial asset is your home and property and to maintain it at its highest level, one must support an increase in our

maintenance fees.


Exhibit D

Reserve Study Supplemental Analysis, # 29086-0

Calusa Point Association

September 15, 2015

This supplemental Reserve Analysis was prepared at the request of the Board of Directors or Management

Agent. It is not a Reserve Study, but is a document prepared to provide additional information to assist our

client in the decision-making process. This analysis contains assumptions about future events that were

provided to Association Reserves by the Board of Directors or Managing Agent. The results presented within

do not necessarily represent the views and recommendations of Association Reserves relative to the current

status of the association or the future Reserve Funding requirements of the association

Overview:

At the request of the Association Manager, we have prepared this supplemental analysis to illustrate the potential changes in the Reserve Study outcome if the following changes were to be made to the component list:

1. Component #2123 Asphalt - Seal/Repair: Extend RUL to 4

2. Component #2125 Asphalt - Resurface: Extend RUL to 3, reduce cost range to $333,000 -

$399,600 ($10-12/GSY)

3. Component #2185 Landscaping – Refurbish (One-Time): Remove from study

4. Component #2343 Building/Common Exteriors – Paint: Extend RUL to 6, reduce cost range to $325,000-$400,000

5. Components #2585 Irrigation Pumps – Replace (2016-2020): Reduce annual cost range to

$10,000-14,000 ($12,000 average cost)

6. Component #2767 Pool Deck – Seal/Repair: Extend RUL to 3

7. Component #2772 Pool Deck Lighting – Replace: Extend RUL to 3

8. Component #2781 Pool Heater – Replace: Remove from study (for non-existent Jacuzzi


Hypothetical Results/Outcome:

After adjusting the component line items and financial analysis as noted above, the following changes to the

funding plan would occur, as compared to our official Reserve Study dated August 25, 2015:

o Percent-funded would increase from 29% to 39.6%.

o The current Monthly Reserve Contribution recommendation is:

$13,150 in the initial fiscal year (2016), with 3% increases for the next 30 years

o The current Special Assessment recommendation is:

$411,000 to be collected in 2016

o The new Monthly Reserve Contribution recommendation would be:

$15,000 in the initial fiscal year (2016), with 1.5% annual increases for the next

30 years

o The new Special Assessment recommendation would be:

$0

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