Pirates Landing Townhouse Association

1. Pirates Landing Townhouse Association Annual Meeting November 12, 2011 Galveston Country Club, Galveston TX

2. Submission and Verification of Proxies • Submit all proxies to the secretary at the registration table to receive all of your ballots and ballots for your proxies.

3. Agenda • Minutes of 2010 Annual Meeting • Submit and Verify Proxies • Financial Report • Committee Reports • Landscaping - Insurance • Maintenance - Painting • Old Business • TWIA lawsuit - PLTA website status • PPOA update • New Business • Election of Board Members

4. Pirates Landing Townhouse Minutes from 2010 Meeting PLTA Board Secretary: Victoria Staff

5. Pirates Landing Townhouse Financial Report Board Treasurer: Kevin Foley

6. Financial Status and Update • Current Status • Plan at previous homeowner’s meeting • Status of monies to spend • Accounts Receivable • Expenses during year-to-date 2011 • Plan for 2012

7. Plan at Previous Homeowner’s Meeting • Spend $18k or less per month • Spend $9,165 of monthly assessment • About $3k for operating expenses; remainder for maintenance & repair • Spend $5k to $9k from reserves left over from the hurricane • Paint as each building is completed

8. Current Financial Status

9. Accounts Receivable

10. Expenses during 2011

11. Plan for Remainder of 2011 and 2012 • Replenish insurance reserve • Slow spending to match assessments • Paint buildings to protect the wood as work is complete • Pray for settlement funds

12. Pirates Landing Townhouse Landscaping and Beautification Board Members: Sallie Waters

13. Landscaping • Current Contract – Good through 2012. • Common areas only • Responsibility of the owners • Personal gardens, decks and driveways • Contract Terms • Cutting 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 and feed two times a year

14. Beautification • Brian Beck - Landscape architect • Scope • Cost

15. Pirates Landing Townhouse Insurance Board Members: Kevin Foley and Mike Callahan

16. 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

17. Insurance • Current Insurance Package • Flood Insurance • Windstorm Insurance • Fire Insurance • Umbrella Insurances • Insurance Provider • Galveston Insurance Associates (GIA) • (409) 740-1251 or (281) 442-1892 Written in Homeowner’s name. Written in PLTA’s name for each homeowner.

18. Insurance • New Content Insurance Requirements • One policy per address • Has to be written through GIA

19. Insurance • Owner’s Responsibility • Flood &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 .

20. Insurance • Owner Responsibility • Additional 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

21. Insurance • Owner Responsibility • When 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.

22. Insurance • Record Keeping • For 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.

23. Pirates Landing TownhouseMaintenance Committee Maintenance & Repair Committee: Kevin Foley and Mike Callahan

24. Exterior Maintenance 2011 • Approximately $200,000 spent last year (November to November) • Most of the major repairs have been completed • Beams, bolts, trim, warped siding, and window boxes are now priorities • Pray for settlement funds

25. 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 pltagalveston.org • Prioritization of projects • Structural • Safety • Cosmetic

26. Owner/Renter Responsibility • Maintaining quality of the community and property value. • Owner is ultimately responsible for infractions of rules stated in our covenants and by-laws even if property is occupied by renter

27. Pirates Landing TownhousePainting Board Members: Mike McDonald

28. Painting the Buildings • Immaculate Paint   • $248,000 • Metro Paint  • $150,000 • NVJ Construction • $130,000

29. Painting the Buildings • What the painters will do? • What will the owners need to do? • How long will it take? • When will it start?

30. Pirates Landing Townhouse Old Business Insurance Settlement, PLTA new website, PPOA information, New laws affecting HOAs Board President: Mike Callahan

31. THE Settlement • The settlement includes a confidentiality clause prohibiting us from disclosing the amount and terms of the settlement.

32. THE Settlement • See handout

33. PLTA Website • www.pltagalveston.org • You will find: • Insurance policies • The covenants • The By-Laws • PLTA rules and regulations • Forms

34. PPOA Membership • Membership has been discontinued as of January 1, 2010. • We offered by attorney’s letter in June, 2011, to donate $2,500 per year for the good works PPOA does if PPOA drops all claims. • PPOA has never responded.

35. New Laws Affecting HOAs • See handout

36. Pirates Landing Townhouse New Business Election of board members Board President: Mike Callahan

37. Elections • Two open positions • Nominees: • Michael Callahan - From the floor • Tom Koval - From the floor • Guidelines for voting • One vote per unit per position. • Per the covenants (2.02), A voter MUST be the owner of record or proxy holder.

38. Board Election Results

39. From the Floor

40. Discussion/Questions?

41. Pirates Landing Townhouse Annual Meeting Adjournment: Thank you for coming!