Minutes of the Board of Trustees Meeting

Thursday, January 28, 2010

5:00 P.M.

Mike Gravitz called the meeting, convened in the Community Room, to order at 5:00 p.m.

Residential Trustees present and participating: Mike Gravitz, Janet Fisher, Bret Marshall.

Commercial Trustees present and participating: Donna Boes, Heather Bowen.

Excused: Steve Campbell, Taymour Semnani

Election of Officers

Upon motion duly made and seconded, Janet Fisher was unanimously elected by the Board as President, Mike Gravitz was elected as Residential Vice President and Donna Boes was elected as Commercial Vice President. Heather Bowen was welcomed to the Board as a Commercial Trustee replacing Jon Dunn who is no longer with Commercial.

Approval of Previous Minutes

The Minutes of the December 10, 2009 Board of Trustees Meeting, upon motion duly made and seconded were unanimously approved.

Finance Committee

The Financial Statements from December 31, 2009 were reviewed. The Association reported an unaudited operating surplus of $41,587 Year-to-Date as of December 31, 2009. The Common Reserve Fund has an unaudited balance of $400,932 and the Residential Reserve Fund has an unaudited balance of $430,375 as of December 31, 2009. The Board also reviewed the delinquency report. The Board also reviewed the final 2009 audit report which, upon motion duly made and seconded, was unanimously approved.

Upon motion duly made and seconded, Trustee Bret Marshall was appointed as the chairman of the Finance Committee and Melyn Campbell was appointed as a member of the Finance Committee.

The Committee reported that it has received and is reviewing the first draft of a new reserve study for our reserve funds. Work has also begun on our 2010-2011 fiscal year operating budget and that they will be reviewing and revising the budget over the next few weeks.

Building Improvement Committee

The Building Improvement Committee reported that the domestic hot water boilers have recently had several breakdowns. A leak followed by a failed gas regulator required substantial repairs. Although the boilers can be repaired this time with most of the costs covered by our boiler insurance policy, some of the other components of the boilers have received their final refurbishment and will no longer be able to be repaired or replaced in the future. Our service contractor who performed the repairs, Carrier, has provided us with a proposal and estimate for full replacement with new boilers. The Board requested that our Consulting Mechanical Engineer John Frank review the proposal to add his own specifications and engineering drawings and also obtain at least two other bids in addition to that already provided by Carrier.

It was reported that the safety modifications to the spas and swimming pool required by the Health Department have been completed and the pool and spas will be re-opened for use within a week. The Board briefly reviewed alternatives to our current chlorine sanitization system and concluded that the alternatives, while using alternate means, produce the same chlorine chemical in the water and that our existing system is generally regarded as the best and easiest to handle for larger commercial applications as opposed to backyard pools.

Mike Gravitz reviewed his research and efforts in search of a solution to the water supply lines for vanities and toilets that have been widely installed here and for which we have also experienced a major failure and flood recently. He has installed rigid copper supply lines in his condo, but discovered that the enterprise is extremely labor intensive and will likely not be inexpensive if installed by plumbers. He plans to solicit firm cost estimates from one or more plumbers for this proposed solution.

Comcast Contract

After investigating alternatives, the Board recently concluded that the latest offer from Comcast, even at a higher rate remains the best alternative. Our previous eight year flat rate contract with Comcast has now expired. It had a per Unit cost of $19.75 and included the HBO channel. The new contract offer is for a rate of $22.85 per Unit and includes many additional High Definition channels but does not include HBO. Owners who wish to receive HBO will still be able to do so by subscribing individually to one of the upgrade packages offered by Comcast that include the HBO Channel. In addition, the proposed contract is not a flat rate contract as our old one was, but will likely have annual increases with a cap of 6% per year. Upon motion duly made and seconded, the Board unanimously approved the proposed Comcast contract.

American Plaza Parking Meeting Minutes

The Board reviewed the minutes of the American Plaza Parking Board meeting of December 1, 2009.

The Parking Board recently requested feedback from American Towers regarding raising the overnight weekend rate from $1 to $2 and for shortening the time frame for the rate. Based upon the response from the Owners present at our recent Board Meeting, we agreed that the $2 rate would not be a problem but that we needed additional information on the time frame. The Parking Board then voted to raise the overnight weekend rate to $2 but withheld action on changing the timeframe pending further information about the exact need.

Recently there has been some discussion regarding our annual payment to APP for capital expenditures. Last summer we had questioned and disputed some portions of the invoice but have not been able to elicit much of a response recently regarding the disputed items. The Board recommended and approved partial payment of the invoice, to pay all of the invoice except the disputed portions in order to clear this liability from our reserve fund and to help stimulate final resolution of the disputed items.

Lobby Refurbishment

The Board reviewed progress on the redecorating and refurbishing. The south lobby and the second floor are now largely complete and the feedback from owners has been very positive. The south elevator doors, interior elevator walls and installation of the mailboxes in the north and south lobby still remains to be done. Final placement of the furniture in the south lobby will be the last to be done. The Board wished to remind owners that new mailbox keys will be issued and that they will likely not be compatible with the condo door key. The Board also reported that the old funiture and furnishings will be sold to interested parties under a yet to be decided form of auction. Further information will be forthcoming.

Smoking Issue

A longtime ongoing dispute with an owner in the south tower whose drifting tobacco smoke caused severe odor and fumes problems in the common area hallway appears to have finally been resolved with the sudden and unexpected death of the owner who was smoking. The remaining owner of the condo has requested that, with their written promise to henceforth keep the condo smoke free, the Board to waive the fines that have accumulated over the many months of the problem. The Board agreed to accept the promise, to waive the fines and also requested management to have the odors and fumes cleaned and removed from the affected hallway. The Board approved the expense of the cleanup estimated to be approximately $1,300 to be paid by the Association this time only. The Board also requested the minutes to reflect the Boards determination to aggressively pursue with fines and legal action those who allow drifting tobacco smoke to drift into the common area hallways and other condos so that similar expensive clean up efforts will not be necessary in the future, and that if necessary, any future required cleanup costs will be charged back to the offending parties.

Next Meeting Schedule

The next meeting was scheduled for Thursday, February 25, 2010 at 5:00 p.m.


The meeting adjourned at 6:00 p.m.