BOARD OF DIRECTORS MEETING

PLAZA EAST ASSOCIATION

DATE: APRIL 29, 2009 TIME: 7:00P M


PRESENT:
Robert Buehler
Jane Coffman
Marilyn Capozzi
Rafick Henein
Ira Litzenblatt
Armando Namis
Jeanne Poore Departed 10:15 PM
DiAnne Shumard Arrived 7:19 PM
Tim Smith
Alex Soufrine

ABSENT: Carll Jacobs


David Beswick, Manager
Helene Pasternak, Secretary

Mr. President, a Quorum is present.

TREASURER’S REPORT
1) Treasurer Armando Namis reported. Since this is the first report of the year, his report is covering the period Jan-March 2009. The Association has no medium or long term debts, and its short term debts are totally covered by the 3 major sources of income: The Operation Budget, the Reserve Budget and Special Assessments, a total of income of $1,402,000. Plaza East enjoys a healthy financial situation. There is a 4
th component of income which isinterest earned from CDs and Savings Accounts. This interest amounts to $18,428.00 The Association’s resources are fully insured by the FDIC. Total arrears account is $134,629. This is not bad debt. This money is actively pursued for recovery on a continuing basis. This amount in arrears is of minimum impact to our total income and does not put the Association at risk. This amount varies from month to month
The Operating expenses are within the normal limits of our 2009 Budget. Reserve expenses to be approved by the BOD is Building Concrete Restoration $19,850, Plumbing $6070.00, Roofing $5280., (Repairs) and Security $665.00. (Security cameras burned out)
The Board hired Mr. Friedman and Associates to review the accounting processes and financial reports for the fiscal years 2004-2008. The final report concludes: Nothing came to our attention that would suggest any improprieties. This result confirms that the administration’s methods and procedures used by the Association to conduct business are correct and satisfactorily managed.
Recommendations:
1) The Treasurer has followed up on the recommendations that the Auditor issued in regards to bank statements, banks reconciliation, expenses and filing and proposes that it be implemented.
2) Treasurer suggests we use the $300,000 accumulated in the Painting Reserves be used to refurbish the Lobby including the bathrooms and kitchen. Maintain the Painting Reserve so we can replenish it within the next 3 years to have enough to paint the building. 3) Treasurer finally recommends that the Administration reactivate the selling of the Shutters in an effort to recuperate needed resources.
Questions: How much is in collections with the Attorney? $88,082. How much bad debt? None.

The complete Treasurer’s Report is attached.

PRESIDENT’S REPORT
Thanked the owners for signing up for the committees.
Committee Committee Head
Budget A. Namis
Exercise Room/Pool M. Capozzi
House Maintenance D. Galczak
Human Resources J. Coffman
Insurance R. Kuh
Landscape M. Packard
Library D. Halsbank
Lobby/Ocean Room R. Henein
Rules H. Pasternak
Screening H. Pasternak
Security J. Toklucu
Social/Entertainment D.Shumard
Will have meeting with all Committee heads the 3
rd Tuesday of the month and will post these meetings.
Discussion ensued regarding the proper method to replace spalling concrete.

MANAGER’S REPORT
In 2008, Legislation enacted by the State required that condominiums that wished to retain 2 year staggered terms had to vote to continue this practice and mandated that a simple majority was all that was required. Plaza East had received 279 affirmative votes and 34 negative votes using the weighted voting process, and this measure has carried.

After being informed by prior Treasurer Richard Madey that he would no longer be signing any Association checks on March 4, 2009, the Manager prepared a Business Clearance Memo that would add Director Armando Namis to the list of those Directors allowed to sign checks on behalf of the Association. This measure was approved by Tim Smith, John Toklucu, Armando Namis, Don Galczak, Rafick Henein, DiAnne Shumard, Jeanne Poore and Alex Soufrine.

On March 16, 2009, the Manager prepared a Business Clearance Memo to approve a change order to the cooling tower project. The change was necessary in order to secure a building permit to begin the project. There would be an additional charge of $61,137.00 for labor and materials. This change was required by the City of Fort Lauderdale. The Memo was signed by Don Galczak, James Brady, DiAnne Shumard, John Toklucu, Alex Soufrine and Jeanne Poore. President Tim Smith signed the Change Order on March 27, 2009.
Bob Buehler advised he has not received notifications regarding these Memos. The Manager will make sure he has Mr. Buehler’s correct e-mail address.

At the request of past Treasurer Richard Madey, the Manager prepared Business Clearance memos for the approval of the October and November 2008 Treasurers reports. To date, the Manager only collected 5 signatures, 4 approving (Tim Smith, Armando Namis, Alex Soufrine and Richard Madey) and one disapproving (John Toklucu). The Manager has distributed corrected Treasurer’s reports for December 2008 and January 2009 with this month’s Board packages.

Window project is 99% finished. Fort Lauderdale Building Inspectors who have been monitoring this installation on a daily basis and they have all stated the work is being done properly in in complete compliance with all codes, specifications and plans.

We have just received a garage and deck restoration report from The Shiff Group which completes Phase 1 of the project. The Manager has just given copies to the Board. The total estimated cost is $2,144,323.85. This does not include the deck portion of the project. We will have a meeting to go over all the material received.

On Monday, April 20, 2009 Maintenance Employee Pablo Velez was exposed to chemicals that have caused an injury to his lungs. As this time, Pablo is in serious but stable condition and is being monitored constantly.

Mr. Armando Cabarcas from OSHA performed an inspection of the building. He had many recommendations which we will follow.
The Workmen’s Compensation Insurance Carrier’s inspector Robert Feehrer is investigating the matter of Pablo Velez for the insurance company and will have a complete report for us.

LEASING
A petition received to rent apartments at Plaza East. 71 signatures were received. We also received a letter from an owner to request seasonal owners and small pets.
Attorney’s opinion: It appears that we have amended language that says renting is allowed with exceptional circumstances, but that needs to be determined.
There was much discussion pro and con.
We will form a Committee to further explore leasing. The Committee will report at next month’s meeting.

DECORATING COMMITTEE
Rafick Henein advised that to redo the bathrooms in the Ocean Room will have to meet code as well as other items in the lobbies and kitchen. Mr. Henein would really like to look at the actual work that needs to be done properly which is not a simple task. We need to be realistic and look at the actual costs. The first meeting of the Committee will be next Tuesday.

CORRESPONDENCE
Hussein Shehata sent a letter to the Board regarding his comments made at the Organizational month meeting and would like to include them in the minutes. Please see attached letters.

NEW BUSINESS
Proposal to log and track correspondence.
This proposal made by Armando Namis because we receive a large quantity of requests and would like to handle all correspondence on a timely manner. Mr. Buehler and Mr. Soufrine agreed that we need to log and track correspondence but do not agree with all of the proponents of it according to Florida Statute. We should redo this to meet the current requirements of the law. Board members will assist.

SCREENING: Mr. and Mrs. Chris Rabold have sold 5F for $265,000. The unit is to be purchased by Mr. Andre Chalem.

The May meeting will be changed to May 20, 2009 at 7:00 PM

MOTIONS MADE

Motion: Approval of Minutes – April 1, 2009. All approved.

MADE BY: Alex Soufrine SECONDED BY: Rafick Henein

Motion: to transfer $19,850 from Concrete Restoration Reserves to Operating. All Approved

MADE BY: Armando Namis SECONDED BY: Tim Smith

Motion: to transfer $6,070 from Plumbing Reserves, $5,280 from Roofing Reserves and $665.00 from the Security Reserves to the Operating Budget. All voted Aye.

MADE BY: Armando Namis SECONDED BY: Tim Smith.

Motion: made to refurbish the kitchen, the baths in the recreation room and the lobbies using the $300,000 from Painting Reserve and stay within the budget. Discussion followed. Bob Buehler made a motion to table Marilyn Capozzi’s motion until the Lobby Committee has met and can give us a ballpark figure. Ms. Capozzi retracts her motion.

MADE BY: Marilyn Capozzi SECONDED BY: Jeanne Poore
Motion withdrawn.

Motion: we use the $300,000 accumulated in the Painting Reserves to refurbish the Lobby including the bathrooms in Ocean Room Area and kitchen. Maintain the Painting Reserve so we can replenish it within the next 3 years to have enough to paint the building. Capozzi, Coffman, Litzenblatt, Namis, Poore, Shumard, Smith voted yes. Buehler, Henein, Soufrine voted nay. The motion passed.

MADE BY: Armando Namis SECONDED BY: DiAnne Shumard

Motion: was made to approve the October and November 2008 Treasurer’s reports as well as the Treasurer’s reports for December 2008 and January 2009. All approved.

MADE BY: Robert Buehler SECONDED BY: Jeanne Poore


Motion: was made to form an ad hoc committee to investigate procedures to allow renting in the building. All voted aye except for Jeanne Poore, Ira Litzenblatt and Rafick Henein who voted nay. The motion passed.

MADE BY: Marilyn Capozzi SECONDED BY Armando Namis

MEETING ADJOURNED AT: 10:15PM

Respectfully submitted,

Helene Pasternak
Secretary