Annual Meeting November 13, 2010 Galveston Country Club, Galveston TX 1

Pirates Landing Townhouse Association

Annual MeetingNovember 13, 2010

Galveston Country Club, Galveston TX

1

Agenda

Minutes of 2009 Annual Meeting

Submit and Verify Proxies

Hurricane Ike Recovery Program–Flood Insurance Claim–Windstorm Insurance Claim

Financial Report

2

Agenda (Cont.)

Committee Reports–Landscaping– Insurance–Maintenance–Painting

PLTA website

Election of Board Members

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Pirates Landing Townhouse Minutes from 2009 Meeting

PLTA Board Secretary:Victoria Staff

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Pirates Landing Townhouse Hurricane

Ike Recovery

Recovery Task Force Leader and Board Member:

Kevin Foley

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Hurricane Ike Recovery

Review of 2010 Milestones and Objectives

Returned Townhouses to Living Conditions

Restored Utility Services

Cleaned Out Storm Debris

Hired General Contractor

Filed all Insurance Claims6

Hurricane Ike Recovery

Distributed Funds

Completed External Repairs

Completed Internal Repairs

Long Term Issues of InterestDead Trees & Bushes removed

Planted FM 3005 Sound Barrier

Lawn Replenishment

Repaired sprinkler systems7

Hurricane Ike Recovery

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Recovered Depreciation

Consulted with Attorney Firm to make sure we received everything from the insurance companies.

Total Funds received - $ ???

Total Funds distributed - $ ???

Pirates Landing Townhouse Financial

Report

Association Bookkeeper:Donna Foley

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Financial Status and Update

Status of Current Account – Income Statement–Balance Sheet

Anticipated Expenditures

Accounts Receivable

Escrow for Insurance

Audit Results10

Pirates Landing Townhouse

Landscaping

Board Members:Victoria Staff and Sallie Waters

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Landscaping

Current Contract – Renewed at 2008 cost.

Common areas onlyPersonal Gardens – Responsibility of the owner

Contract TermsCutting grass 43 times per year• Weekly March 1st to October 31st

• Twice per Month November through February

Trim palms and sound fence twice per year

Weed driveways

Other Miscellaneous Activities12

Landscaping

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Special Thanks to Randy Stillwell

His crews dug the ditches, prepped the area, and planted the bushes for the sound barrier.

Replaced the dead bushes on his own time, effort, and cost.

Special Thanks to Victoria Staff, Sallie Waters, Hank Merry

The sound barrier was their project!

Landscaping

Sprinklers–We spent $ 2,000 to repair the sprinkler

systems–To keep in good repair:

• Don’t drive on grass (cars, golf carts, …)• Don’t park on the grass• Don’t leave large objects on grass (pools…)

– If you see problems contact a board member.

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Pirates Landing Townhouse Insurance

Board Members:Kevin Foley and Mike Callahan

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Insurance

Square Footage Implication PLTA home owners are assessed insurance costs based on the original square footage of each unit.

The square footage is from the original 1970’s design of the units.

Each Home Owner should check their current square footage as assessed by www.galvestoncad.org– Click “Appraisal” and “Real Property” then enter

your address. 16

Square Footage Implication

Additional square footage of the unit is the responsibility of the owner.

Each unit that increases the original square footage by adding or extending a room should provide the new measurements to GCAD to maintain records of the unit size and value.

Insurance

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Current Insurance Package–Flood Insurance–Windstorm Insurance–Fire Insurance–Umbrella Insurances–Insurance Provider

• Galveston Insurance Associates (GIA)• (409) 740-1251 or (281) 442-1892

www.tiny.cc/PLTA

Insurance

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Written in Homeowner’s name.

Written in PLTA’s name for each homeowner.

Insurance

Unit Coverage PLTA Bylaws Section 13.03 Indicate the Association will Insure the following: (There is no reference to cause of damage)– Texture and painted walls - Counter Tops*– Cabinets (kitchen and bathrooms)*

$18.00/sq yd for floor coverings* The issue of Quality is usually predicated on the extent of damage to the ENTIRE complex. If one or a few units are damaged then replacement will PROBABLY be of “like quality.” Where as if the complex experiences wide spread damage replacement will be of “construction quality” similar to the original 1975 build out. This would be based on $X per sq ft building cost up to the limit of PLTA insurance. ($x could change every year based on costs of construction). 19

Insurance

Unit CoverageOther “Fixed Items” Covered–Light fixtures - Ceiling Fans–Sinks & Faucets - Toilets and Tubs–Fixed Mirrors - Medicine Cabinets–A/C and Heating Units

“Non-Fixed” Items NOT Covered–Refrigerators - Microwave Ovens

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Insurance

Owner’s ResponsibilityFlood &Wind is vague about who covers what.

To Assure replacement, each owner should consider “Build Out” or “Alterations and Improvements” coverage in addition to contents coverage.

Coverage for items not normally moved upon selling:– Instant Hot Water appliances - Wine Coolers– Extensive Tile Coverings - Fireplaces– Built-in Bookshelves/Cabinets– Tub/Shower Fixtures of Higher than Normal Pricing– Intercom or Sound System and Security Systems

GIA Insurance Representatives consider such items to be “Alterations and Improvements “ or “Build Out Items for definition of coverage .

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Insurance

Owner ResponsibilityAdditional Structural Features Typically NOT Covered

– Ground Floor unit and content• Hot water heater, refrigerators, electronics, …

– Privacy Fencing– Outside Shower, Sink, and Cabinets– Outside Special Lighting and Ceiling Fans– Built-in Benches– Porch Swings – Plants and Shrubbery

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Owner ResponsibilityWhen the Townhouse is a primary residence, supplemental insurance should be specified to pay for temporary living quarters while the unit is under restoration.

If Townhouse is a rental unit, a “Loss of Income” rider may be requested. (Difficult to obtain).

Golf Carts are rarely covered under a Home Owner Contents policy. Discuss the options regarding insurance on golf carts with your insurance agent.

Insurance

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Insurance

Record KeepingFor improved coverage and recovery of loss, the homeowner should maintain a written inventory of contents and attributes. An online Home Inventory “worksheet” can be found on the Insurance Information Institute (III) website; www.III.org– The Home Inventory Worksheet provides for descriptions,

serial numbers, costs and photos of items and features covered by the supplemental policy.

– A copy of the inventory details should be stored offsite in a secure place.

Dealing with the insurance company is easier and faster when you have detailed information on

covered items. 24

Pirates Landing Townhouse

Maintenance Committee

Maintenance & Repair Committee: Kevin Foley, Hank Merry,Coote Wright-Broughton

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Exterior Maintenance Process

Current policy is that Association contracts for all maintenance.

Covenants require owners get HOA permission before ANY modifications are made. (5.01)

Request form – on website soon

Prioritization of projects1. Structural2. Safety3. Cosmetic 26

Exterior Maintenance 2010

Approximately $50,000 spent last year (November to November)

Major repair program placed on hold during summer months

If you have repairs get them to the Board to enable planning, scheduling and budget allocation in the coming year.

Spend maintenance money at a rate of approximately $4,800 per month

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Pirates Landing Townhouse

Painting

Board Members:Sallie Waters, Victoria Staff, John

McNamara, and Hank Merry

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Painting the Buildings

Building or unit colors

Color choices

Cost

Voting

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Painting the Buildings

The current Maintenance Fees do not support a timely completion of painting of the entire complex.

At the present rate of expenditure of the maintenance fee, the plan is anticipated to take up to three years. 

All proposals will require an additional or special assessment to complete the painting. 30

Painting the Buildings

The proposal –To have a special assessment for labor and paint to expedite the painting of the buildings

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Painting the Buildings

Color choice palette:–See samples on table

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Painting the Buildings

Building or unit colors–Option # 1 – Paint each unit a

different pastel color in the series–Option # 2 – Paint a Group of 4

units the same pastel color–Option # 3 – Repaint all units one

color33

Painting the Buildings

Estimated cost to paint the whole complex (labor and paint) based on Preliminary Quotes from 3 Painters plus 20% contingency:

• Option # 1 = $204,000 (10.8% more)• Option # 2 = $192,000 (4.9% more)• Option # 3 = $180,000 (Base cost)

Anticipated start date for Painting Contractor would be January 2011 with a projected schedule of completing at least one building a month. However, this will be determined by the availability of funds. 34

Painting the Buildings

What we currently have–Cash flow over 3 or 6 months–Start with half of our reserves

~$50,000–Use half of our available monthly

maintenance dues ~$3,500 per month

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Painting the Buildings

Assessment needed from the Homeowners:

Option # 1• $3,053 ($1,018 per month for 3 months)• $2,830 ($472 per month for 6 months)

Option # 2• $2,799 ($933 per month for 3 months)• $2,574 ($429 per month for 6 months)

Option # 3 (Base cost)• $2,544 ($848 per month for 3 months)• $2,322 ($387 per month for 6 months) 36

Painting the Buildings

Notes:

Quotes will be updated and finalized when the Association members:– Select one of the three paint options.– Agree to one of the proposed assessment

proposals which in turn will set the project start/complete schedule.

Painting of owner installed lattice work and louvers, located mostly at ground level, is not included in the painting scope.

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Painting the Buildings

Voting options for labor and paint:– Option # 1 – Paint each unit a different

pastel color in the series - $3,053 to $2,830 – Option # 2 – Paint a Group of 4 units the

same pastel color - $2,799 to $2,574 – Option # 3 – Repaint all units one color -

$2,544 to $2,322 – None of the above

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Painting the Buildings

Voting process:1. Vote to have an assessment –

Yes/No

2. Vote on Color scheme

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Voting Rights

Section 3.01 (c) – all members have the right to vote except those “in default of any provision of this Declaration.”

Unit not eligible to vote for non-payment of association dues:

101 305 604 803

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Painting Election Results

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Pirates Landing Townhouse Website

Board President: Mike Callahan

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PLTA Website

www.tiny.cc/PLTA–Make sure the PLTA is in ALL CAPS

You will find:– Insurance policies–The covenants–The By-Laws–PLTA rules and regulations

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Pirates Landing Townhouse Old and

New Business

Board President: Mike Callahan

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Association Business

Old Business–Trash Pickup–PPOA Membership

New Business–Elections

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Trash Pickup

Galveston City is still not picking up trash

Galveston City Water Bill – Do Not pay any trash pickup fee on your water bill. Contact the Galveston City Service and have the fee removed.

Dumpster – ALL trash must be put into the dumpster. If it is full, DO NOT place the trash next to the dumpster. 46

PPOA Membership

Membership has been discontinued.

PPOA threatened a lawsuit for non-payment of back dues.

We responded asking for proof of dues and how the amount was calculated.

PPOA has never replied.47

Pirates Landing Townhouse

Elections

Three Board Positions

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Elections

Three open positions

Nominees:–Mike McDonald - Sallie Waters–Victoria Staff - From the floor

Guidelines for voting–Three (3) Vote per Unit –Per the covenants (2.02), A voter MUST

be the owner of record or proxy holder.49

Board Election Results

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Special Thanks

Special thanks to John McNamara (Daddy Mc) for his tireless work for

the PLTA!

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Discussion/Questions?

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Pirates Landing Townhouse

Annual Meeting

Adjournment:Thank you for coming!

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