PLAZA EAST ASSOCIATION
MINUTES OF MEETING OF THE BOARD OF DIRECTORS
May 30, 2007


Mr. Tim Smith, President called to order a duly constituted meeting of the Plaza East Board of Directors on Wednesday, May 30, 2007 at 7:40 p.m. in the Recreation Room.

Present were: James Brady, Donald Galczak, Terry Marcum, Richard Madey, Charles Packard, Allen Pell, DiAnne Shumard and Tim Smith. Absent: Rafick Henein, John Toklucu. Also present David Beswick, Manager and Helene Pasternak, Secretary. A quorum was established.

APPROVAL OF MINUTES
Charles Packard made a motion seconded by DiAnne Shumard to approve the minutes of the Board Meeting of April 25, 2007 with a change regarding Don Galczak’s remark about the cooling tower. All voted Aye except for Richard Madey who advised he did not get a copy of the April Minutes.

TREASURER’S REPORT
Ted Perrella, accountant from Perrella & Associates, went over the Treasurer’s Report for April and May. He carefully explained the Reserve accounts. John Toklucu has resigned as Treasurer. Tim asked owners to volunteer for the position.
Questions as to why the semi-annual maintenance fee comes from the Roof Reserve. It was explained by Mr. Perrella that the Association has a long history of doing it this way, as the Maintenance preserves the life of the roof.
A motion was made by Tim Smith, seconded by Charles Packard to approve the transfer of Reserve funds to the Operating Account. All voted aye.

PRESIDENT’S REPORT
Tim Smith introduced our new Manager, David Beswick. Dave brought with him purchasing guidelines, which he will institute to continue to insure our financial records are above reproach. It is very helpful that Dave has such a good understanding of accounting practices. All financial duties are segregated. The Manager approves the checks to be written and codes which account they belong to. All checks to be written have backup documents which the signers (President, Vice President, and Treasurer) review before signing the checks. The Accounting firm produces the checks. The Accounting Firm does the monthly statement and certified Annual Audit.

Bank United now offers more services than they have in the past. We are receiving a proposal from them so we can move our Money Market accounts to Bank United, where we will receive more interest than we currently do. It will also make the transferring of monies easier. Bank United is making another proposal on their “Lock Box Service”. Owners’ maintenance would be paid to the bank with a coupon book, and the bank will keep the records and update us.

It is a State Law that any purchase over $50,000.00 requires 3 bids.

Over 21 owners owe more than $1000.00. There is a written policy in place for late payments. We will discuss it next meeting, and put into Rules. We will check our documents to see what they say concerning late payments.

MANAGER’S REPORT
The complete Manager’s report is attached.
Dave thanked everyone for helping to accumulate all the necessary information he will need to complete projects and tasks.
The Manager is working with George Gazzana from Human Resources to set up a system of performing employee evaluations, a Drug & Alcohol Screening program, and a set of formal orders for Security. The Drug & Alcohol Program will comply with all State and Federal guidelines and can result in a savings in insurance premiums.
He met with DeRose Design Consultants who assured him that our building structure can hold the load of the cooling towers.

He also met with Mike Davis of Thornton Tomasetti regarding the installation of galvanized beams that will allow for the attachment of our common element shutters. Mr. Davis will meet with Murphy Construction to determine what will be necessary to properly mount the shutters.

Dave met with Bob Kuenzler regarding the use of a new security sticker with bar codes for the owners’ vehicles. Proposals have been given to the Board of Directors.

He also met with Florida Fish and Wildlife regarding protection of sea turtles. They will loan us covers for light fixtures on the east side of our property, and advised where we can purchase shades to redirect the light from fixtures on the upper floors at a cost of $0.15 each.

Dave met with RTI regarding on-going concrete repairs.

Dave had meetings with DiAnne Shumard, George Gazzana and Lenny Carman and the Security Shift Supervisors regarding improving the parking situation in the garage. In order to be in compliance with our documents and the upcoming garage restoration, we will strictly enforce garage parking. Only one vehicle per apartment will be allowed, and employees and caregivers will not be allowed to park inside the garage. Improperly parked vehicles will be moved. Helene Pasternak and the Manager will write a rule for cars in the garage that are being left for the season. At this time, all seasonal cars are being moved to remote locations once Security speaks with the owners.

Dave is doing a data base of all owners. He would like Owners’ email addresses. This way he could send out information to everyone quickly. He can advise owners of general interest, meeting schedules, beach warnings, etc. He can also forward invoices and statements directly to owners, especially when out of town. This email program is not mandatory and owners may state a preference regarding any aspect of it, but Dave feels everyone will find it most convenient. Dave’s email address is David@plazaeast.info.

The shutters, most likely, will not be completed in time for this hurricane season. The fix for the new shutters needs to be permitted, fabricated and installed. We do not know how long this will take. The shutters will then have to be installed. We do not have a plan if there is a hurricane other than using the old shutters where they still exist.

REQUEST FOR SLIDING GLASS DOORS
 Theo Vagionis (8H) has requested permission to install anodized aluminum windows and sliding doors. Terry Marcum, after looking at the plans, advised they meet both Dade County and Broward County code requirements. The plans show that these sliding doors will not change the appearance of the exterior of the building. Tim Smith spoke with our Attorney who has approved the package as well saying that if the doors meet all codes and do not change the appearance, than the Board would have no reason to deny the requested. A motion was made to approve the installation of doors and windows for 8H as requested once we received a written letter from the Attorney that this approval is not inconsistent with our condo documents. All approved.

John Damsell (9B) explained that he had given his request for sliding doors to the office two different times. He was told the Board would approve them. After months of not hearing anything, he assumed all was approved. He had permits and plans and all met with code. Unfortunately, the Board never received this request.

HOUSE AND MAINTENANCE COMMITTEE
Mr. Packard, Chairman discussed his Committee’s report. The complete report is attached.
After Tim Smith, Dave Beswick, Mark Haykov, Don Galczak walked the area of the garage, it is decided that we need other engineering reports before we commit to a plan. It is agreed we will get 2 more engineers to give us repair options, estimates of costs, etc.

The Committee requests that we have inspection, engineering oversight and legal approval before we sign off on any project. They would like funds withheld and paid in stages as work is completed.

The Committee feels security in the garage area needs improvement. The Committee would like the Association to work with Plaza South regarding a fence between the 2 properties. The Manager will meet with employees on their responsibilities and follow up to make sure they are doing their jobs.

The Fire Marshall has not completed his inspection or approval of the Fire Alarm System. The Manager advised that there are still items that need to be completed.

Handles are being installed on replacement fire doors. These do not have locks, except on the G-H tower. Tim Smith asked the Manager to ask the Fire Marshall if we can have locked doors.

RTI had damaged the Recreation Room roof. The Committee feels the repairs are unacceptable. Tim Smith asked the Manager to have our roofing company do proper repairs and bill RTI.

The Committee feels the Flamingo Road flooding problem should be taken care of by Lauderdale-by-the-Sea. Jim Brady suggested we contact Fort Lauderdale and ask them to do local agreement with Lauderdale-by-the-Sea, and see if this can be fixed and the costs split.

LANDSCAPE COMMITTEE
The complete Landscaping Committee Report is attached.
Marion Packard, Chairperson, gave her committee report. We will not be replacing any dead plants at this time due to the water shortage. We will replace after the hurricane season.
They have contacted the University of Florida to get recommendations for plants like the sea oats we have at the beach. We need to plant more in order to get rid of the weeds in that area.
The committee has been looking at outdoor up-lighting and possible ponds/fountains.
All bushes and trees must be pruned.

SCREENING COMMITTEE
Charles Packard, Chairman, gave the screening committee report. Raul Reyes has purchased Apt. 2F for $260,000.00 partially furnished.
James Brady made a motion seconded by Alex Soufrine to approve the Screening Committee Report. All voted aye.
A discussion ensued regarding approving applicants before they close. We can not ask for approval of the Board by email, as it is against Florida Statute 718. Therefore, if necessary, we will hold a special meeting for approvals.

Helene Pasternak advised that Charles Gedeon (PH-M) is purchasing 10P. Since Mr. Gedeon is already an owner, he does not need a formal screening. However, approval must be given so he can receive his Certificate of Approval which is necessary for closing. Mr. Gedeon is purchasing 10P for $650,000.00, partially furnished.
A motion was made by Jim Brady, seconded by Charles Packard to approve Mr. Gedeon’s purchase of 10P for the purpose of issuing the Certificate of Approval. All voted Aye.

EXERCISE COMMITTEE
Stan Rothenberg, Chairman, advised that his Committee is not satisfied with the Mr. Condi’s design of the Recreation Room. It does not solve the problem of dividing the exercise room from the balance of the space. The
Committee recommends using the back 1000 feet of the large room for the exercise room enclosing it with a soundproof wall. Tim will have David Weisman discuss this option with Cesar Condi.

KEY FOB COMMITTEE
Alex Soufrine, Chairman, would like to hold meetings again in June for the purpose of informing owners about the key fob proposal. He was concerned about the newsletter that is being circulated filled with misinformation regarding the key fob project. He will post a response.

INSURANCE
Last year’s insurance for property, windstorm, boiler & machinery, directors & officers, and umbrella was $581,453. This year it is $573,622 and our budget is for $350,000. Therefore we are under budget by $223,621.
We have an insurance equity account of $75,000.00 which we can use and this will lower what is due to $148,621 which we will have to assess. When we use the insurance equity account money, it is suggested we do not replenish it. As the insurance is due by June 30th, we will have only collected $175,000 of the $350,000 budgeted for insurance, so we will have to borrow the difference. We will borrow for short term, $323,625.00. We will assess for $148,621 plus interest on the full amount borrowed.
Can we borrow the money from our Reserve Funds? Mr. Perrella advised that monies borrowed from Reserve Funds must be paid back within 30 day, therefore we can not.

A motion was made by Tim Smith, seconded by James Brady to accept the recommendation of the Insurance Committee to enter into Insurance Policies at a cost of $473,622.00. We will use the $75,000.00 in our Insurance Equity Fund, and the fund will not be replenished. All voted Aye.

A motion was made by Allen Pell seconded by Charles Packard to hold a Special Meeting for the purpose of assessing $160,000 for insurance deficiency. All voted Aye. The meeting will be held on Monday, June 18, 2007 at 7:30 pm.

CORRESPONDENCE
 Tim Smith advised that all correspondence will be answered as our documents require.

MOTION TO AMEND DOCUMENTS
Richard Madey wishes to propose the following motion, to be voted upon by the membership to reduce the requirement to approve subsequent amendments to the Plaza East documents; By-Laws, Articles of Incorporation and Declaration:

Motion: The Plaza East Governing Documents (Declaration, By-Laws and Articles of Incorporation) may be amended by not less than 75% of the entire membership of the Board of Directors and by a majority of the weighted votes of the membership at a meeting of the membership.

All voted Aye except Mr. Galczak and Mr. Brady who voted Nay. The motion did not pass, as 75% of the Board must approve (8.25 members).

A motion was made at 11 pm to adjourn.

Respectfully submitted,


Helene Pasternak,
Recording Secretary