Crescent Sands. at Crescent Beach. P.O. Box 1004 North Myrtle Beach, SC Phone: Fax:
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1 Crescent Sands at Crescent Beach Condominium Owners Association Inc. P.O. Box 1004 North Myrtle Beach, SC Phone: Fax: Dear Crescent Sands at Crescent Beach Homeowner, November 12, 2008 Enclosed are the minutes from the 2008 Annual Members Meeting held on October 18, If you were unable to attend the meeting, you will also find enclosed a copy of the packet provided to the Members. First, I would like to again thank the Board of Directors and all owners of Crescent Sands at Crescent Beach for allowing White Realty to serve you as Property Managers. Please do not hesitate to contact myself or Marie Williamson if we can be of any service to you. There were several items discussed at the Annual Members Meeting that need to be brought to your attention. The Board has asked that I continue to post information about how you can get in touch with everyone on the Board. You can send an to cscb@white-realty.com and this will be forwarded to each of the members of the Board and to Wayne White. If you would like to just me as the Property Manager, you can send that to wayne@white-realty.com. You can reach me via telephone at We also have a night emergency number for building emergencies only which is The Association will hire a plumber to go through all units and determine the age of the hot water heater, the operation of the water shutoff valve, inspect the washing machine hoses and to check and see if a pan is located under the washing machine. Once this process is complete, the Association will contact all owners with the results. It was discussed at the meeting that all hot water heaters over 10 years of age must be replaced. There was a conversation about raising the thresholds of the oceanfront sliders. Unit A-6, which is having quite a bit of issues with water intrusion, is going to have this work completed on their unit and then the Association will have a better idea of the cost and work involved. All owners were reminded that the Association has a contract with Martin Heat and Air and this is the only air conditioning company allowed on the roof at Crescent Sands. Owners were asked to contact their rental agent to be sure that they only call Martin s Heat and Air as no other company will be allowed access to the roof. Property Managed By:
2 There was also a discussion about a few owners that are behind in their dues. The Association takes this matter seriously and assesses late fees of $ per month per late assessment. The Board has set a policy to write a letter when the dues are 30 days late and send a certified letter when this reaches 45 days late. At that time, the owner will be given 15 days to pay all fees due or the Association will be forced to file a lien against the property. The Board has stressed fairness to all owners and will work with owners in special situations but has also stressed the importance for owners to pay their dues on time. There was also a discussion about the insurance of the Association. Following the meeting, a mistake in the meeting packet was found that incorrectly stated that the premium amount for the Commercial Auto policy of $3, The correct premium for this policy is $ Harleysville is the carrier for the Association s Commercial Auto, Umbrella, and General Liability and the amount shown in the packet at the meeting was the total for all of these policies instead of the amount just for the Commercial Auto policy. The Board held a teleconference following the meeting with Mrs. Kim Gore of Associated Insurors to discuss the need and coverage of a Commercial Auto policy. Mrs. Gore stated that this policy is not required but many mortgage companies ask about this policy and the Umbrella policy. These policies give the Association added protection with broader coverage. The Commercial Auto policy protects the Association in the case that anyone doing business for the Association is in an accident. If there was a law suit and it was known that the person was doing work on behalf of the Association, then the Association would very likely be named in the lawsuit. This policy will portect the Association in this situation. At the 2008 Annual Meeting, there was a vote for three vacant positions on the Board of Directors. Mr. Amos Locklear, Mr. Benny McCall and Mr. Don Hubert were elected to the Board. Mr. McCall, who accepted the position earlier this year on the Board to fill the position left vacant by the resignation of Mr. Nick Durham, will serve a one-year term. The Directors then held a brief organizational meeting following the Annual Meeting and the following positions were set for : Mr. Amos Locklear, President Mr. David Johnson, Vice President Mr. Benny McCall, Treasurer Ms. Jan Runyan, Secretary Mr. Don Hubert, Director at Large These are some brief highlights from the 2008 Annual Meeting. These issues as well as many others are detailed in the minutes of the meeting that are included in this mailing. We are also enclosing an invoice for the HOA dues for the first quarter of We will be sending quarterly bills instead of sending all four out in advance. Remeber that all quarterly dues are due on the first day of the month of each quarter (i.e. January 1, April 1, July 1, and October 1). Dues received in the office of White Realty after the 20th day of the month in which they are due will be considered late and a $100 per month per assessment fine will be assessed. We have also enclosed a calendar of events for 2009 which will give you some important dates of events in the North Myrtle Beach area. The dates on the calendar include the 2009 Annual Members Meeting which will be held on October 17th. Sincerely, T. Wayne White, Jr., REALTOR Property Supervisor
3 Crescent Sands at Crescent Beach Condominium Owners Association Inc. P.O. Box 1004 North Myrtle Beach, SC Phone: Fax: ANNUAL MEMBERS MEETING M I N U T E S Pursuant to call, the 2008 Annual Members Meeting of the Crescent Sands at Crescent Beach Homeowners Association, Inc. was held on Saturday, October 18, 2008, commencing at 9:15 o clock a.m. in Hussey Hall at The Surf Golf and Beach Club, 1701 Springland Lane, North Myrtle Beach, South Carolina. Mr. Amos Locklear (K-4), President of the Association, served as Chairman of the meeting. Mr. David Johnson (F-1), the Association s Vice President, served as the Proxy Agent, Ms. Jan Runyan (L-3) served as Secretary of the meeting, and Mr. Wayne White, Property Supervisor for White Realty, served as the Recording Secretary of the meeting. Chairman Locklear opened the meeting by welcoming and thanking all owners for attending the Annual Members Meeting and introducing those seated at the head table. Introduced from the head table were Vice President Johnson (F-1), Secretary Runyan, Treasurer Tom Kissinger (I-4) and Director at Large Benny McCall (G-4). Also seated at the head table was Mr. White of White Realty, the Property Manager of the Association. Chairman Locklear asked Mr. White to verify that the roll was taken at the door and to determine if a quorum was present in order for the Association to conduct an official meeting. Mr. White responded that the roll was taken as the members entered the room and that a quorum had been met with 34.8 percent of the units represented in person and 33.5 percent of the units represented by proxy for a total of 68.3 percent. Chairman Locklear then asked Ms. Runyan to verify the proof of mailing of the notice of the 2008 Annual Meeting. She stated that she has witnessed a copy of the Notice, Proxy and a notarized proof of mailing that a copy of each was sent to each owner. The next item on the agenda was the approval of the minutes from the 2007 Annual Members Meeting. Chairman Locklear stated that the minutes were mailed to each owner following last year s meeting and a copy is also provided in the member s packet. He asked for a motion to approve the minutes. Mr. Larry Rappaport (A-6) motioned to accept the minutes as presented and Mr. Gerald McCabe (A-3) seconded the motion. The motion carried unanimously. Chairman Locklear then presented a report on the building and grounds. He stated that a coating was placed on the roof that came with a 10-year warranty. The Board had received bids in excess of $100,000 for the total replacement of the roof, but minor repairs were made and the coating placed on the roof for approximately $36,000. Property Managed By:
4 Crescent Sands at Crescent Beach Homeowners Association, Inc Annual Members Meeting Minutes Page 2 of 5 Some of the he columns underneath the building were strengthened and repaired to ensure a solid foundation for the building. Chairman Locklear discussed that at the 2007 Annual Meeting, there was a discussion concerning the carpet in front of the elevators being stained. He stated that the Board had looked at several options before deciding to place a contrasting color carpet in front of the elevators on each floor. This will allow for that carpet to be replaced every couple of years without having to try and match the rest of the carpet on the walkway. Chairman Locklear stated that a light had been placed on the flag pole as discussed at the 2007 meeting. Chairman Locklear informed the members that the parking lot across the street from Crescent Sands, which had been used by the City of North Myrtle Beach as a public parking lot through an agreement with the Association, has been fenced, seal coated, striped, bumpers placed in parking spaces to keep cars from hitting the fence, and signs posted that parking is for owners and guests of Crescent Sands only. The Board had discussed placing mechanical arms with a coded gate at the entrances of the parking lot but the signage seemed to work and the Board decided not to go through the $6,500 to $7,000 expense for the gates. The Board will continue to monitor the parking lot. The pool was resurfaced with a fiberglass covering that gives the Association a 20-year warranty. The old plaster had air pockets behind it and had to be chipped out and repaired before the final fiberglass coating could be installed. Chairman Locklear stated that the City of NMB had done a great job on the street end at the North end of Crescent Sands and all owners in attendance felt that the improvements also enhanced Crescent Sands. Chairman Locklear added that the City closed the front entrance into the North street end, but opened another entrance for the Association on that end onto Ocean Boulevard. Chairman Locklear stated that the lobby was also renovated, with new tile, paint, curtains, furniture, and a central air conditioning unit being added. There was a discussion about why the bulletin boards were painted and the ash trays. Chairman Locklear responded that the bulletin boards were not supposed to be painted and will be cleaned off. He added that there were a few additional small items which need o be completed but time ran out before the start of the Summer season and then the issues with the elevator came up. The Association removed the lattice around the storage area on the beach side as the wood was rotten. It was replaced with a block wall and stucco to match the rest of the exterior of the building. Chairman Locklear discussed the elevators and stated that the work on replacing the jacks had gone extremely smooth and that the final inspection would be made on the Wednesday after the meeting. He added that the company did not have to drill out the hole, saving the Association an additional assessment. Also, Thyssenkrupp was able to place the protective sleeve to give the Association a 25-year warranty on the sleeve. Chairman Locklear added that the Board had worked extremely hard on cutting the price of the repair as it was initially $85,000 for just the North elevator and then $155,000 for both. The Board got Thyssenkrupp to agree to $125,000. Mr. Rappaport stated that $318,000 had been spent on the elevators in the past eight years, including the current $125,000 job. He stated that the Board needs to look at a total replacement before spending any additional monies on the old elevators. Mr. Rives Eggleston (I-2) stated that the jacks now had a 25-year warranty but wanted to know what the warranty is on the controls. Chairman Locklear stated that he would contact Thyssenkrupp to get an answer to that question.
5 Crescent Sands at Crescent Beach Homeowners Association, Inc Annual Members Meeting Minutes Page 3 of 5 Mr. White stated that he wanted to make all owners aware that in the case of heavy rains and winds that the elevators would be shut down and run up to the 6th floor until the inclement weather had passed. The reason for this is that the controls for the elevators are on top of the cars and when rain blows in under the elevator doors on the walkway and falls onto the top of the cars, the controls are shorted out. This is costly to the Association as water damage is not covered by the maintenance agreement. Chairman Locklear continued listing the changes over the past year with the addition of a pergola and grills on the North side of the building. Chairman Locklear stated that Rob and James are currently scraping, priming, and painting the meter bases. New meter bases would cost approximately $60,000 but this action should lengthen the life of the current meters. Chairman Locklear discussed the front parking lot and stated that it will be seal coated and striped as soon as the elevator work is completed and it can be scheduled. Mr. White added that the drains in the front parking lot will be raised during this work so that there will no longer be a big dip around the drains. Mr. Eggleston asked why the drains did not work and caused the flood of water under the building. Chairman Locklear stated that the drains had been inspected and the pipe that runs between the drains is about 3/4 full of sand. The problem is that there is not a company in the area with the right kind of equipment to get underneath the building to clean out the pipes. He added that Thyssenkrupp elevator is assisting in finding a company that can do this and that the pipes would be cleaned out as soon as possible. Chairman Locklear then discussed the air conditioning contract that the Association has with Ricky Martin and Martin Heat and Air. He stated that following the 2007 Annual Members Meeting that there were several owners who went onto the roof and saw units that were not tied down, heat pump units that were wired for straight cool, debris laying all over the roof, and electric disconnects that were falling apart and hanging loose. The owners also observed the damage to the carpet on the sixth floor due to companies replacing units and the compressor s leaking all over the carpet and inside the elevators. By having one air conditioning company, the Association has control over who is on the roof and knows who to speak with if there are any problems. Chairman Locklear introduced Mr. Martin and asked him to say a few words and answer questions. After giving away a few prizes to randomly selected owners, Mr. Martin stated that he was pleased that the Association entrusted this contract with his company. He asked all owners to be sure that their rental company knows that they are only to call Martin s Heat and Air. White realty has made contact with all rental companies, but an added contact will assure that there is no confusion. It was discussed that the prices negotiated by Mr. Locklear for the Association are much lower than other companies charge. The Association pays for two tune-ups a year for all units at Crescent Sands. One owner stood up and stated that he purchased a new unit and was very thankful to Mr. Martin for the high quality job and price. Mr. Robert Foushee (G-5) stated that he had not received a bill or warranty information on the unit that he purchased. Mr. Martin responded that any owner that has not received everything that they were suppose to should just call his office and teh information would be mailed immediately. Mr. Angelo Bertolozzi (F-4) stated that his new unit did not have room for the air filter between the unit and the hot water heater and the filter had to be placed in the door. He stated that all owners should make sure that their unit had a filter.
6 Crescent Sands at Crescent Beach Homeowners Association, Inc Annual Members Meeting Minutes Page 4 of 5 There was a discussion about hot water heaters. Chairman Locklear stated that the Board had discussed this issue with White Realty and Wayne said that plumbers along the coast strongly recommend that hot water heaters be replaced at least every 10 years. He informed the members that the Association was going to have a plumber go through all units and determine the age of the hot water heater. All owners will be contacted after the inspection. Mr. McCabe stated that they should also check for a pan under the washing machines. Wayne added that it is very important for all owners to cut the water off in their unit when it is not being used. There was a discussion about where the shutoff valves were located in the unit. Wayne stated that the shutoff valves are located in the same area as the hot water heater in each unit. It was discussed that some owners knew that their shutoff valve did not work. Wayne stated that he would have the plumber inspect these as well. Chairman Locklear stated that the Association was better protected and the owners had saved money by signing an agreement that just one air conditioning company be allowed on property. He asked the owners present how they felt about having just one plumber and one electrician for the property. All owners in attendance were in favor of this. Mr. Baxter Harrill (H-3) asked if the Board would accept recommendations from owners for plumbers or electricians to contact for bids. Chairman Locklear responded that any suggestions would be appreciated, just as they were with the air conditioning companies. There was then a lengthy discussion concerning the oceanfront sliding glass doors. Chairman Locklear stated that raising the thresholds would protect against water coming into the unit and also protect the integrity of the building as the drip edges of the doors are failing and allowing water into the walls beside the doors. Mr. Johnson reminded everyone that noone knew exactly how many units were being affected. Chairman Locklear stated that he had been in all units several times and would say that every door has some type of issue. Mr. Harrill motioned to raise all thresholds in the building at a cap of $3,000 per unit. Mr. Rappaport seconded the motion. In further discussion, Mr. Monroe stated that he could not vote for the motion without knowing a more exact cost. Mr. Johnson asked that if the thresholds were raised and there was damage to the walls, who would be responsible for the damage. Chairman Locklear stated that each owner would be responsible for any damage and added that a couple of units have repaired this damage for about $300. Mr. Don Hubert (J-2) asked how this work would be funded and the response was through a special assessment. After further discussion, Chairman Locklear asked the members if they would agree to raise the threshhold in unit A-6 since this was one unit that is having a more serious issue with water and that will be an indication of the expense. All owners agreed and Mr. Harrill rescinded his motion. Mr. Harrill thanked the current Board of Directors and stated that everything that has been done to the building by this Board has been completed properly and at the best price available. Mr. Kissinger presented the financial information of the Association. He stated that the Board has worked hard in the past few years to not only improve the building but also the financial standing of the Association. In 2005, the Association had $76,000 in reserves. That increased to $97,000 in 2006 and $136,000 in He added that the Board devoted a lot of time to the reserve schedule during a Board meeting in August and reallocated money based on elevator needs and replacement cost obtained. Mr. Kissinger went over all financial information presented in the meeting packet and discussed the fact that there are a couple of owners that are currently delinquent in their dues. He stated that the Board looks at these situations monthly and works with owners as much as possible before filing a lien against the property to protect the Association.
7 Crescent Sands at Crescent Beach Homeowners Association, Inc Annual Members Meeting Minutes Page 5 of 5 There was a discussion concerning insurance. Mr. McCabe asked about the Commercial Auto policy and why the policies did not renew at the same time annually. Wayne stated that the flood policy had always renewed in March. The other policies all renewed in November until two years ago when the company that had the property and wind coverage went out of business and the policy had to be rewritten in July. Wayne stated that there was really no reason for the policies to be moved and, based on the type of minimum earned clause in the policies, the Association could lose money. As for the Commercial Auto, the policy protects the Association when the Board or any employee working for the Association are doing work for the Association in their own vehicle. Chairman Locklear stated that the Board would obtain the exact coverage information for this policy and report it through an upcoming newsletter. Mr. White presented the management report and thanked all owners and the Board of Directors for allowing White Realty to continue serving the Association as Property Manager. He stated that the Board of Directors is very active and always looking out for the best interest of the Association. He also thanked Rob and James for their daily efforts in keeping Crescent sands looking its best and also introduced and thanked Ms. Marie Williamson who works at White Realty as an assistant in property management. The next agenda item for the meeting was the election of two directors as the terms were expiring for Mr. Kissinger and Mr. McCall. Mr. White stated that the proxy that was sent out listed three owners -- Mr. Kissinger, Mr. McCall and Mr. Hubert -- as the candidates. Mr. Kissinger should not have been listed as he had rescinded his nomination. Mr. White asked if there were any other nominations from the floor. After hearing none, there was a motion from the floor to close nominations and elect the slate of nominees as presented. The motion was seconded and passed unanimously. Mr. White thanked Mr. Kissinger for his four years as a member of the Board of Directors and stated that he had been a great leader in looking over the financial information of the Association. The Board presented Mr. Kissinger with a plaque thanking him for his service. Mr. Kissinger stated that he never intended to be a long-term Board member and stated that he was happy that the Association is on stable financial ground now. Mr. White then presented the tax resolution, Appendix 5C-1, which allows the Association to carry money remaining from one operating year to the next. There was a motion, second and unanimous vote to pass this resolution for the year ending December 31, Chairman Locklear stated that he wanted to thank White Realty and Wayne White for his hard work on behalf of all owners. There being no further business to come before the Association, Mr. White asked for and received a motion and unanimous approval at 12:15 o clock a.m. that the meeting be adjourned. In a brief meeting of the Board of Directors, the following positions on the Board were set -- President: Amos Locklear, Vice President: David Johnson, Secretary: Jan Runyan, Treasurer: Benny McCall, Director at Large: Donald Hubert. Respectfully submitted, T. Wayne White, Jr., REALTOR Property Supervisor
Crescent Sands. at Crescent Beach. P.O. Box 1004 North Myrtle Beach, SC Phone: Fax:
Crescent Sands at Crescent Beach Condominium Owners Association Inc. P.O. Box 1004 North Myrtle Beach, SC 29598 Phone: 843-272-6115 Fax: 843-272-7662 Dear Crescent Sands at Crescent Beach Homeowner, November
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