June 22, 2010
Notes taken by Vicki Ross- my unofficial summary
Board Members Present: Michael Roefaro, Martha Lee,jenny Jones, Elisabeth Gori, Ann Mckay,Eugene Christopherson,Parker Reid, and Howard Erskine
And Keith Gornick on speaker phone
EC- read the special assessment and asked the board for questions
PR- asked why do we have to replenish the fund?
EG- explained that we were in non compliance of accounting rules by our accountants
- Replenish the irrigation Reserve Fund$22,821.99-that the irrigation they previously did ran over by 22,821.99- it was previously classified as a different expense but this is not proper- it is an over run- the project cost more than the “deficit reserve”
- Hurricane Impact Window Reserve Fund-$102,291.95-the hurricane fund should have had a reserve or an assessment and that too was underfunded
we have been on a collision course the last couple of years
we would move forward and be more fiscal managing
3.Funding of Concrete restoration, waterproofing, and exterior painting project.- $126,851;99-
She said the contract price should be $175,000 because of 4 elements
a.When restoring the concrete they might find more breakdown
That they can see before they start. Might have to add another $23,000 as a buffer and overridexterior painting
b.water proofing and sealing
c.staging and mobilization of the scaffolding
at this point KG called in
she mentioned we have less money coming in by the slowing of the economy.
she ended by saying if there was any monies left we can pay our selves back or keep in reserve
we are also required by law to have an additional 7% buffer for monies
not collected from owners and if everyone pays then we have 7% back or returned
PR- stated we have no contract signed with Daniel (the contractor) –the project was started by hiring a man named Taurinski, an engineer
Who was recommended by Dan, our manager who is no longer here, and he called for a second opinion before we sign this contract.
He also felt that Taurinski would be supervising the work going forward.
He suggested hiring someone who has no stack in the project as our second opinion
EC-that there was a contract and he had sent it to the lawyer and he was ready to sign it the next day
PR- said he never saw the contract and wanted to read before it was signed
KG-he said there was an important issue here that since we are not a sole proprietorship we have to go the extra length to assure visibility of the connection of the engineer to the contractors. It creates a gray area.
AM- said that Dan, the ex manager, called 3 or 4 engineers and the engineer suggested 3 or 4 contactors and the board had chosen the lowest bid – by $50,000
MR-questioned what were the gray areas?
KG- emphasized the question of the connection of the engineer and the construction company picked
MR- said the engineer got a flat fee
KG- asked if they could find out whether there was a kickback to the engineer
MR- argued that the board picked the contractor
KG- emphasized that this is a crucial crossroad of our building and ther board has a fiduciary duty.
MR- said that he thought it was foolish to spend another $5000-$10,000 on a second opinion.
He also mentioned that apt #12 12 has many leaks and we have to do this every 7 years.
Taurinski, the engineer charged $4300.00
PR: advocated spending another $4300 for a second opinion
AM- she worked for an engineering firm and they did get second opinions
GC- suggested another meeting for hiring a second opinion
KG- reiterated fiduciary duty and that they were being railroaded- need a second opinion and that he was ready to send a check for the second opinion immediately
MR- objected to a second opinion and that we needed to paint and seal the building.
PR- asked do we have to do it now?
KG-he said he wanted the highest quality at the lowest cost
PR- emphasized the actual contract must be reviewed by the whole board before signing
Then EC called for a vote and the audience asked for a discussion from the floor
Brian West- who said he has built and managed other condos asked the board some questions:
How they picked the bidders
Had the structural engineer scoped- yes
Is he insured-yes
When did the bids come in- a year ago
Prices are down about 20% and should be renegotiated down-no
He seemed to be good with how the board answered and would help if they asked him.
His last statement was to never go with an open ended contract!!
Vicki Ross- questioned if the board would go back to the contractor and renegotiate the price of their bid?- no answer
She also asked to hear the current balances of bank accounts.
George Carlin– mentioned that he received a notice to pay his maintenance just 14 days
after the first of the month- the board said this was a mistake
But mentioned that you are delinquent as of the 10th
Eleanor McNamara– said to refer to previous minutes of board meetings
Robbie Leifer- tried to speak about all monies spent and mentioned the carpet expense and was told this was not on the agenda tonight.
EG- mentioned be have $88,000 in reserve – last year the board decided to put $50,000 was put on maintenance.(not so sure about this point) – the cost of water has skyrocketed
Maura Stevens– asked if the $22,000 goes back to the reserve?
Then EC called for a vote on the assessments and the vote was 7 in favor and 2 opposed (PR and KG)- assessment passed Meeting ended.