Pebble Beach Minutes 8/22/09

Pebble Beach Homeowner's Association, Inc.
Board of Directors Meeting
Conference Room - Bluewater Associates
August 22, 2009

MINUTES

I.CALL TO ORDER AND ATTENDANCE:

The meeting of the Board of Directors of the Pebble Beach Homeowner's Association, Inc.
was called to order on August 22, 2009 at 8:40 a.m. by President, Andy Gauzza.

The following board members were present: Don Barnes, Carol Osika, Kurt Svendsen, Doug Bare, and Leon Conover. Board member Shawn Barakat was absent.

Also present were: Rebecca Smith and Larry Smart of Bluewater GMAC Real Estate.

Andy Gauzza stated that a quorum was established and started the meeting. Attached is a copy of the Agenda for the meeting.

II.APPROVAL OF MINUTES:

Andy Gauzza asked for a motion to approve the minutes as written of the May 16, 2009
Board of Directors Meeting. Doug Bare made a motion to accept the minutes of the May 16, 2009 meeting. Leon Conover seconded the motion and it was unanimously carried.

III.GROUNDS REPORT:

Rebecca Smith read the Grounds Report as submitted by Gail Miller and Janet Geisler. See
attached Grounds Report. Larry Smart stated that the fires that had occurred had been at buildings A-E. Mr. Smart also stated that most of the condominiums at Pebble Beach were non-smoking and that owners should provide sand buckets on the balconies for smokers in the hopes that they would not throw the butts off the balconies.

The board discussed the need to find possible alternatives to the mulch material that is currently being used around the buildings. Andy Gauzza informed the board that a homeowner had suggested placing designated emergency water hoses on the buildings to aide in putting out fires. The board tabled this discussion for a later meeting.

Larry Smart discussed landscaping issues with the board. Mr. Smart stated that landscaping had always taken a back seat with the fall and winter projects that the staff had to do and that by spring, the landscaping was out of control. Mr. Smart asked if the board wanted one staff member to concentrate solely on landscaping but felt that one person could not keep the weeds under control or the shrubs trimmed. Mr. Smart stated that through the years, the appearance of the grounds had declined but there were not enough staff members to get the landscaping to a level that would please the board and/or homeowners. Kurt Svendsen stated that he felt a landscaping professional/company needed to come in and get the property back to a maintenance level for the staff. This would include weed removal, pine straw distribution and trimming of shrubs. The board asked Rebecca Smith to contact three landscaping companies for quotes on these items.

Don Barnes made a motion to accept the Grounds Report. Carol Osika seconded the motion and it was unanimously carried.

IV.FINANCIAL REPORT:

Don Barnes presented the Financial Report. See attached Financial Report. Mr. Barnes also
presented a "draft" copy of the annual audit for the board of directors to review. Mr. Barnes informed the board that the audit was "Unqualified". The board discussed the reserve schedule and the line items that were included. The audit identified a budget shortfall for the reserve. President Andy Gauzza informed the members that most of the line items on the reserve schedule had been addressed via insurance or special assessment.

Kurt Svendsen made a motion to accept the Financial Report. Carol Osika seconded the motion and it was unanimously carried.

Don Barnes presented to the board a "draft" of the year 2010 Budget for review and approval. Mr. Barnes stated that the proposed budget kept the dues at the same rate for year 2010 but stated that the monthly reserve funding was reduced in order to have no dues increase. Rebecca Smith informed the board that the year 2010 budget was a maintenance budget and did not allow for any special projects. The board discussed at length the pending replacement of the wastewater treatment plant and the financial impact it would have on the owners at Pebble Beach. Kurt Svendsen made a motion to accept the proposed year 2010 Budget with no increase in dues. Leon Conover seconded the motion and it was unanimously carried.

V.REPAIR/RENOVATION PROJECT UPDATE:

The board discussed the completed and pending items under the repair/renovation project.
See attached expense breakdown.

Larry Smart informed the board that he would like to begin the wood repairs to Building G at the end of September 2009 and upon completion, the staff would move to Building H. The board reviewed three painting quotes that had been received for the buildings. The board had questions regarding the quotes and asked Rebecca Smith to clarify certain items before the board awards the painting contract for Buildings G & H to a vendor.

Rebecca Smith asked the board if the oceanfront showers were part of the overlook/steps/walkway project as the homeowner of I205 had a recommendation for decking material to be used that had been successful at Hammocks Beach State Park. Mrs. Smith asked that the board review the material provided. Kurt Svendsen stated that the shower area would be incorporated during Phase III of the project. Larry Smart stated that there is significant sand build-up at the showers and that the decking stays slippery from water. Kurt Svendsen made a motion for $2500 to be approved for the repair to the shower area at the oceanfront decking to be completed by Memorial Day 2010. Andy Gauzza seconded the motion and it was unanimously carried.

Kurt Svendsen informed the board that Phase I of the ocean overlook/steps/walkway project had come in slightly under the approved budget of $20,000. Mr. Svendsen stated that the other phases of the project were:Phase II - handicap ramp from walkway to the beach
Phase III - separate beach access/walkway by gazebo area

Mr. Svendsen reminded the board that the CAMA permit was good for three years and that all phases needed to be complete prior to the expiration of the permit. Mr. Svendsen stated he would like Phase III to be the next phase to be started as the staffs schedule allows. Carol Osika asked if the handicap ramp (Phase II) could be done first as she felt it was more important to provide handicap access versus a second standard access (Phase III). Mr. Svendsen stated that Phase III allows for the beach access to remain open during construction while the handicap ramp (Phase II) will require that the main beach walkway be shut down and that by doing Phase III first, there will always be beach access available during construction. Kurt Svendsen made a motion for the board to approve $20,000 to proceed with Phase III of the overlook/steps/walkway project with a completion date prior to Memorial Day 2010. Doug Bare seconded the motion. Don Barnes, Andy Gauzza, Doug Bare and Kurt Svendsen voted in favor of the motion. Board members Carol Osika and Leon Conover voted against the motion. The motion carried.

Doug Bare asked the board if landscaping could be addressed by the overlook area closest to the grills (gable end of "D" building). Larry Smart indicated that the fence at the dune area needed to remain in place. Andy Gauzza asked that Mr. Bare talk to the Landscaping Committee regarding his ideas.

VI.MAINTENANCE/OTHER ITEMS:

1.Wireless Internet - The board discussed the complaints that had been received regarding
the wireless internet at the complex. Bruce Hedreen of CTEC provided the board a report on his findings during the July 4th Holiday. See attached report. The board will continue to evaluate the level of internet service at Pebble Beach Condominiums.

2. Compressor Movement "B" Building - Homeowner/board member provided a letter to the
board regarding his concerns about HVAC compressors being moved at building "B". See attached letter. Kurt Svendsen stated that he would like to address this issue when Dr. Barakat (homeowner/board member) was available to attend the board meeting. Mr. Svendsen stated that the board of directors had passed a resolution regarding the location that compressors could be moved and the board felt that locations decided upon were the best locations. The board tabled this discussion until the next board meeting that Dr. Barakat could attend.

3. Outdoor Lighting - Quad - Don Barnes informed the board that Shawn Pratt of Yardworks had installed temporary lighting at building "F" for the board to look at for possible installation at the complex. The Board discussed that the present lighting at the complex was inadequate but the lights installed by Yardworks did not meet the needs of the complex. The board discussed with Larry Smart installing a test light at building "H" that was a 7 watt fluorescent light that was the same as the balcony lights of building A-E. Mr. Smart stated he would complete the task immediately for the board to consider.

4. Staff Projects - In progress & completed - The board discussed the staff projects that had been completed since the last board meeting. They are as follows:
•Ocean overlook
•Benches built for overlook
•Shrubs and mulch completed - interior of Quad - other landscaping projects
•Repair to steps at beach
•Repair to well at building B
•Stairwells cleaned - A-E - all buildings are in need again
•Plumbing to oceanfront showers repaired
•50 work orders - as reported by owners, rental agents, etc.

The board discussed the projects that were in progress. They are as follows:
•Repair to indoor/outdoor pool tile from vandalism
•Painting of indoor/outdoor pool while the pool is drained
•Repair/Replacement of window at indoor pool
•Bathroom renovations at indoor/outdoor pool
•Old Maintenance Shed renovation/siding replacement
•Rebuild of all garbage gates
•Block wall repairs
•20 work orders - as reported by owners, rental agents, etc.

Kurt Svendsen stated that the indoor/outdoor pool needed to be reopened as quickly as
possible and would like it reopened no later than Labor Day. The board discussed the need for the building repairs to Buildings "G" and "H" to be completed as quickly as possible. Larry Smart informed the board that building "G" appeared to need a significant amount repair. Mr. Smart asked if the board would consider overtime for the staff. Mr. Smart stated that the rental of the "lift" (that is needed to access the buildings) is quite expensive and that equipment sits idle on the weekends, as there is not adequate staff for this type of work on the weekend and it is also when there are more guests and owners visiting. Kurt Svendsen made a motion to approve 100 total overtime hours for the building repairs in the fall. Carol Osika seconded the motion and it was unanimously carried.

Leon Conover stated that he was concerned about the oceanfront decking by the clubhouse as the deck boards had become a safety issue. Larry Smart stated that he thought the main walkway was original construction. The deck boards and nails are popping up and need replacing and some of the stringers needed to be replaced as well. Mr. Smart informed the board that he felt confident he could do in stages so that the walkway could remain open for beach access. Leon Conover made a motion to replace the oceanfront decking in three (3) phases with the first phase being the main thoroughfare to be completed by Memorial Day 2010 with an initial budget of $15,000.00. Kurt Svendsen seconded the motion and it was unanimously carried.

Rebecca Smith informed the board that she had received three quotes for the painting of buildings "G" and "H". After reviewing the contracts, the board asked Mrs. Smith to clarify points in the contracts and to report back to the board prior to making a decision. Mrs. Smith stated she would do so.

Rebecca Smith informed the board that she had received complaints about the boat/trailer parking at the complex. She stated the complaints varied from boats not having the proper identification to owners desiring not to have to move their boats and trailers off the property each year. Mrs. Smith stated that the initial reason the board required boats to be removed from the property each year from November - February was that there were boats and trailers that the Association could not identify the owners and that the complex was have the asphalt sealed. Mrs. Smith informed the board that she had not been as vigilant in year 2009 as in previous years regarding towing as the number of boats and trailers at the complex was much lower and parking in general had not been a problem. Mrs. Smith also stated that a majority of the items that did not have the proper parking passes were items that belonged to rental guests and either the rental agents or the owner had not given instructions to the guests on how to obtain the passes. Mrs. Smith also stated that she would like to board to consider amending the rules and regulations. The board asked Mrs. Smith to prepare recommended changes and submit to the board for review and approval. Mrs. Smith indicated she would have the changes to the board for review within a few weeks. Carol Osika made a motion to allow boats, trailers, campers, jet skis, and campers to remain on the property with the purchase of an annual permit from the management company and should congested parking become an issue, the board reserves the right to enforce removal of all items each fall/winter. Kurt Svendsen seconded the motion. Doug Bare, Leon Conover, Andy Gauzza, Carol Osika and Kurt Svendsen voted in favor of the motion. Don Barnes voted against the motion. The motion carried.

VII.WASTEWATER TREATMENT PLANT REPLACEMENT:

President Andy Gauzza informed the board that the Wastewater Treatment Plant Committee,
Plant operator, and engineer have made a recommendation to replacing the current failing plant with the Fluidyne ISAM SBR Batch system. See attached recommendation and estimated project schedule.

After extensive discussion related to the wastewater treatment plant issues and upgrade, the board is scheduled to finalize pricing and vendor negotiations in September 2009. At such time, the board will be requesting homeowner approval of the wastewater treatment plant special assessment. The proposed estimate is $1,350,000. Upon homeowner approval, the board expects the special assessment invoice to be sent to the homeowners in December 2009 with an anticipated due date of spring 2010. The board is currently discussing what portion of the wastewater treatment plant replacement project will be funded by reserves.

Andy Gauzza made a motion to approve the contract services of Diehl & Phillips engineering firm for the replacement of the wastewater treatment plant. Carol Osika seconded the motion and it was unanimously approved.

Andy Gauzza made a motion to proceed with the replacement of the wastewater treatment plant with the ISAM SBR system. Carol Osika seconded the motion and it was unanimously carried.

VIII.SCHEDULE OF NEXT MEETING:

The next board of directors meeting is scheduled for November 13, 2009 at 4:00 p.m. at the
oceanfront clubhouse.

IX.ADJOURNMENT:

There being no further business to come before the meeting, Andy Gauzza asked for a motion
to adjourn. Carol Osika made a motion to adjourn the meeting. Kurt Svendsen seconded the motion and it was unanimously carried. The meeting adjourned at 3:40 p.m.

__________________________________________
Carol Osika, Secretary

__________________________________________
Rebecca Smith, Recording Secretary

APPROVED:

__________________________________________
President