PLAZA EAST ASSOCIATION
MINUTES OF MEETING OF THE BOARD OF DIRECTORS
April 26, 2006


Mr. Richard Loarie, President called to order a duly constituted meeting of the Plaza East Board of Directors on Wednesday, April 26, 2006 at 7:30 p.m. in the Recreation Room.

Present were: Ismet Baker, James Brady, Rafick Henein, Richard Loarie, Allen Pell DiAnne Shumard, Tim Smith, Alex Soufrine and John Toklucu. Also present Willy Lopez, Manager and Helene Pasternak, Secretary. A quorum was established.
Absent: Terry Marcum, Charles Packard

Randall Rogers, our Attorney, was present at the meeting to answer questions from the owners. The first question concerned voting for assessments. Mr. Rogers explained that some items are the fiduciary responsible of the Board and the Board must be concerned with “life-safety” issues. The elevators are considered a life-safety issue; however the cab of the elevator is an aesthetic issue. Our alarm system was non-functioning and not meeting code requirements, therefore is a life-safety issue. Several cases like this, not withstanding, supersedes our documents.

Do we need a new generator? FPL has installed new generators for water supply. Therefore, our generator should function properly. When we lost water during Hurricane Wilma, it was an FPL problem. If we should ever have to replace the generator, it will be considered a life-safety assessment,

The Association has a responsibility to replace all common elements due to the Hurricane and restore the building and its surrounds.

During a catastrophic event (a hurricane), if windows are damaged, it is the Association’s responsibility to repair or replace.

Florida Statute 718.113, Hurricane Shutters. This statute supersedes our documents. A majority vote can mandate all owners have shutters. The law states that owners with shutters do not have to pay for the shutters of those without. The question is do required shutters become an Association responsibility as to the upkeep of the shutters. We could have a vote making owners responsible for their own property. Therefore each and every individual would be responsible for the upkeep of the unit. Impact glass would exempt the need for hurricane shutters.

APPROVAL OF MINUTES
John Toklucu made a motion, seconded by Alex Soufrine to approve the minutes of the Special Meeting on 3/22/06 and the Board Meeting minutes of 3/29/06, as well as the Special Meeting of 4/18/06. All approved.

PRESIDENT’S REPORT
A disc of Florida Statutes 718 I for 2005 is available.

Three units had work stopped in their apartments because they did not have permits.

New window replacements now must have flashing in order to conform to building code section 1403.

All unit owners are advised to consider installing AFCI to protect from arcing circuits, which is the leading cause of fires in buildings.

We will need future assessments for Lobbies, Mechanical HVAC cooling tower to replace our current well which is failing and deck and garage structural repairs.

A regrettable incident of April 21, 2006 in the Manger’s office occurred concerning statements about our Manager receiving a $20,000 payoff regarding the pending shutter contract from the low bidder. Witnesses confirmed the conversation. Police were required to intervene due to false charges and violence by the owner in 7F in the presence of our Manager and President.

The complete President’s report is attached to these minutes.


BUILDING PERMITS
Owners need permits for work done when costs exceed $1500.00 and for any alterations to pipes or electrical.

INSURANCE
A meeting of the Insurance Committee was held on April 24, 2006 with Jeff Samas, Willy Lopez, Ismet Baker, John Toklucu and Richard Loarie.

We are insured with QBE (and have been for 15 years). If they come back to reinsure us, they will insist that buildings be 100% shuttered or 100% impact glass. We will have to get our wind storm insurance through Citizens and they will have a deductible of 3% instead of our current 2%. Because of rate increases, we will probably have premiums of $ 250,000 with QBE (as compared to $188,000.00 last year), and $237,000 with Citizens for just windstorm. If the entire building is shuttered, Citizens would give a 19% reduction.

However, if Citizens requires a re-appraisal of the building, our insurance for windstorm could be as high as $300,000.

Mr. Samas advised that living costs in Florida have increased dramatically in the past five years, and will continue to do so. If Plaza East completes shutter installation in the entire building in the next 6 months, we could expect a roll back in insurance rates. Best hope is for completing all shutters in all units and common areas by June 2007. We would then hope that QBE would take us back if the entire building is shuttered, and reduce our insurance costs.

SHUTTER CONTRACT
Terry Tavis, Shutter Tech, has to use a qualifying agent and is not a registered entity. We have requested a letter from supplier stating we would have delivery of shutters as promised and have given Terry Tavis one week to get all in order.
Alex Soufrine made a motion, seconded by James Brady that if Shutter Tech doesn’t have all proper corporate paper work to acquire permits by Friday, May 5th, we will hire Crystal Shutter. All voted aye.

MANAGER’S REPORT
We may have to assess for insurance, if the appraiser reassessment of the building has increased and if Citizen’s charged us $200,000 more than we are now paying.

The concrete restoration of the garages and pool deck was be a $2.5 million project, 2 ½ years ago. Costs are probably up. The Board must start discussing this repair because the leaking and damage to cars is increasing.

SK Roofing repaired a section of the roof over PH B. This work was done pursuant to the annual maintenance contract we have with them. They are coordinating with Gammon Electric on installation of brackets to support the new electric conduits for the seven elevator rooms. This work is being paid from the elevator assessment.

Glass America has finished replacement of all glass broken by Wilma. Any remaining windows covered with plywood had frame damage and will be repaired/replaced with the money from the Hurricane Wilma assessment.

Gem Resources are removing dead palms, resetting others, weeding and trimming hedges, ground cover, etc. Replacement of exit signs damaged by the Hurricane and installation of exit signs required by the Fire code are being done. General Electric (EST) is working on fire alarm installation in Tower N-P and when finished will move to Tower G and the common areas.
The complete Manager’s Report is attached to these minutes.

Tim Smith requested we get the Engineer in to assess the deterioration of the decks and garages and then get some bids to see actual current costs. A motion was made by Richard Loarie, seconded by Alan Pell to have Miller Engineering come and do an assessment of concrete restoration for garage and deck. All voted Aye, except for Alex Soufrine, who voted Nay.

SCREENING COMMITTEE
Jerry Marchial gave his report. Gary Rubinstein transferred his apartment 7C to his mother, Doreen Winston and Mrs. Winston was interviewed on March 31, 2006.
Mr. Vincent G. Byrnes purchased apartment PH-G from John and Anne Walker for $615,000 furnished. He was screened on April 25, 2006.
Richard Loarie made a motion seconded by John Toklucu to approve the Screening Committee’s report, all voted aye.

CORRESPONDENCE
15 M, Paula Lippen has requested that she be allowed to rent her apartment for one year. Jeff Samas, our insurance agent, advises a rental building pays more insurance. Board members requested that she show hardship before they would consider the request.

NEW BUSINESS
A motion was made by Richard Loarie, seconded by John Toklucu to have a meeting to propose an amendment to change our voting requirements in our Declaration of Condominium, Articles of Incorporation and By-Laws from 75% of membership to 75% of those who vote with a minimum of a quorum of 50%+1. All voted aye.

A motion was made at 9:30pm to adjourn.

Respectfully submitted,


Helene Pasternak
Recording Secretary