DAYTONA BEACH OCEAN TOWERS
BOARD MEETING
February 25, 2009
A meeting of the Board of Directors of the Daytona Beach Ocean Towers, Inc., was called to order on February 25, 2009 at 7:30 p.m. by President Bob Wood. Board members present were Mr. Wood, Tom Roam, Bea Atkins, Edna Weeks, Charles Mohler, Tom Moore, and Ron Godlewski. There were also 34 owners in attendance.
Mr. Wood introduced the board and advised the owners not to hesitate to contact him with any questions or concerns. One alternate way to communicate is to go to the new Towers web site, www.towersowners.com. There is a link for questions or concerns contained therein, along with other information relating to the Towers.
Mr. Wood then advised the board has worked very hard during the past six weeks. His goal is to make sure the Towers owners are kept informed and represented responsibly. One primary agenda is to oversee the finances of the organization. With concern over the present economic situation, there is much work being done in relation to budgets, projections, etc. The Board is aware our income may decrease as there may be more bankruptcies or foreclosures in the next year.
Minutes of the Previous Meeting: A motion to approve the minutes of the previous board meeting as published was made by Tom Roam and seconded by Ron Godlewski. The motion carried unanimously. A motion to approve the minutes of the Special Meeting on January 15, 2009 relating to the demand of monies by the attorneys regarding the hurricane settlement ($28,348) as published, was made by Rod Godlewski, seconded by Charles Mohler, and approved unanimously.
Manager’s Report: Tim Sandblom reported on the following projects: (a) the dripping in the garage is fixed; the drainage systems were rerouted and the fans were reversed; someone is manipulating the fans and such behavior should be stopped immediately (b) the fire pump test was passed (c) painting of stairwells is still continuing and (d) we have a new clubhouse door.
Administrative Items:
1. Discussion ensued regarding the Administrative and Owners Handbooks being revised and, when completed, the revised Owners Handbooks will be distributed to owners free of charge.
2. Meetings are to be attended by owners or their legal representatives only.
3. Formation of the Selection Committee is on hold; it is being determined what other condos are doing in this regard and what state and federal laws allow.
4. Nothing further has been heard from the hurricane settlement attorneys, however, when/if communication is made, the Board feels we have significant evidence to protest their demands.
5. There was an anonymous report made to the Fire Department regarding the hole installed in the double garage doors leading from the lower lobby, which was created to improve air flow, which hole has since been repaired.
6. Someone is in possession of an elevator key and is using said key to hold the elevator on certain floors for no reason. This person is not authorized to have an elevator key. This action is jeopardizing the safety of all Towers residents and impeding emergency traffic as needed. If anyone has information regarding this misuse, please contact the manager or any board member. If need be, we will have to have the locks changed, which affects the condo, the fire department, and the police department. This is a very grave offense and, as such, should be taken with utmost seriousness.
7. We have a new bookkeeper (contract employee) named Barbara who works every Monday and sometimes on Sundays. We also have a new housekeeper (payroll employee) named Faith.
8. Our new phone system will be installed 2/26/09; we are back on the digital system, but need new digital phones.
9. The hurricane insurance settlement ($500,000) was originally put into Bank of America, however, due to the apparent financial instability of BOA, those monies were transferred with half going to SunTrust and half to Wachovia in order to maintain FDIC coverage.
10. The Towers budget reflects we are an $800,000 per year operation.
11. Our water usage has been extremely heavy. It costs one cent per gallon for sewer and water which doesn’t sound like a lot of money. However, a dripping sink or running toilet can cause a huge waste of water and, therefore, money If any owner has a plumbing problem which is causing an overage of water usage, please notify the manager so appropriate steps can be taken to alleviate the situation.
12. Lastly, Mr. Wood advised, except in this immediate instance, he would like to make it a goal for each meeting not to exceed one hour. It is understood that in the beginning of this board’s term, many items need to be addressed, however, meetings should be streamlined in the future.
Financial Report: Ms. Weeks gave a line-by-line summary of her Profit & Loss Statement and also of her Balance Sheet, with the key points as follows:
Profit and Loss Statement - Due to irregularities in past accounting procedures, these sheets cover only a four-month period. Owner Charges – charge set rate for our employees fixing leaks, which is still cheaper than outside help; Finance Charges – overdue owners charges; Reimbursable Expenses – our employees were making major repairs which they should not have been doing on Towers time – the owners should have hired outside people or hired our maintenance personnel on their own time; Owners Supplies - Keys, garage door openers, document preparation, etc.; (It is noted Maintenance should only be for supplies and outside vendors – our labor should be part of our overall payroll.) Office Related – Liens Filed – Our lawyer used to file the liens for $250 each, however, Mr. Wood is presently handling the filing of the liens himself; to date, Mr. Wood has filed five liens at a total cost of $92.50, which is obviously a considerable savings to the Towers. Insurance – we always pay insurance a year ahead of time; Accounting/Bookkeeping of $2,532.53 should have been included in payroll; Special Repair of $1,275 was for wall repair (leak) in dental lab for which the Towers is responsible.
Balance Sheet – Payroll and operating expenses should always be kept in separate accounts. It is noted the Towers is in the process of receiving money from the courts from two Mr. Aberman properties. No more credits will be given to owners who are in arrears to the Towers. In fact, telephone calls will be made to delinquent owners; if this proves futile, statements will be sent to those who are in arrears with finance charges included. Sales tax payable – the Towers is responsible for paying sales taxes on our commercial units.
The Towers bookkeeping system has been basically overhauled by Ms. Weeks. Accepted accounting practices had not previously been utilized. A motion was then generated to hire an Auditor/CPA to review our accounts and develop a handbook of standard operating procedures. Mr. Mohler asked how much this would cost the Towers and it was decided this would cost between $4,000 and $6,000. Discussion was held and it was decided that this is a much-needed expense so that the Towers finances are always in line with standard procedures. This motion was made by Tom Roam, seconded by Tom Moore, and unanimously approved.
Mr. Wood then referred to the $111,000 plus in Accounts Receivable. That reflects money that is owed to us by Towers owners. Mr. Aberman owes about $56,000 of that amount. Mr. Wood advised that the Board would do everything in their power to collect all monies owed to us by all delinquent owners.
Ms. Weeks then stated that in the past, our annual audit costs $5,400 for the CPA to take the figures given him and try to make an income tax return out of it. The reason the charges were so high was because our bookkeeping system was so convoluted.
Mr. Wood stated he is presently working on hiring a new attorney for the Towers. Once hired, Mr. Wood will ask for recommendations from the lawyer for an Auditor/CPA in regards to the above motion and also to calculate our income taxes. He explained that when you retain an Auditor/CPA, they will electronically have access to our accounting system with our permission and with our new administrative password, which will be created for general journal access. They will not physically be in the office. They will go back about four years and analyze all of our accounts. It takes quite some time. They will gradually bring our system up to date. At that time, they will provide an accounting system for the bookkeeper. It is a one-time process to establish continuity and accuracy. The owners will be advised of this progress.
Safety and Security: Mr. Moore synopsized his committee meeting and then the following motions were addressed: A motion was made by Tom Moore to have hallway lights on full-power from 7 a.m. to 11 p.m., seconded by Charles Mohler, and passed unanimously. A motion was made by Edna Weeks to have the main lobby office staffed 24/7, seconded by Bea Atkins, and passed unanimously.
Laundry: A motion was made by Mrs. Atkins to study costs of the washers/dryers to determine if the present costs are appropriate, seconded by Charles Mohler, and passed unanimously.
There will also be attention given to a location in the Towers for a commercial washer/dryer.
Building & Grounds: Mr. Roam synopsized his meeting minutes. The following topics were then discussed:
A motion was made by Tom Moore to repair the domestic water pumps, seconded by Charles Mohler, and passed unanimously.
The fire pump will be serviced quarterly.
Bids are not yet available for heating system boiler repair or cooling-heating tower pump.
A motion was made by Ron Godlewski to repair fire emergency door on trash chute, seconded by Edna Weeks, and passed unanimously.
A motion was made by Charles Mohler to have Tom Roam train our employees and schedule cooling-heating tower cleaning, seconded by Ron Godlewski, and passed unanimously.
A motion was made by Tom Moore to set a schedule for the staff to blow and flush individual units’ air conditioning units, seconded by Charles Mohler, and passed unanimously. (**It should be noted this service does not take the place of periodic maintenance performed by an outside company which is the responsibility of the individual unit’s owner.)
A motion was made by Ron Godlewski to secure bids for a parking garage sweeper, seconded by Charles Mohler, and passed unanimously.
A motion was made by Ron Godlewski to discard the old pool covers, seconded by Edna Weeks, and passed unanimously.
A motion was made by Ron Godlewski to discard our carpet cleaner, seconded by Edna Weeks, and passed unanimously.
Discussion ensued regarding having a company service our carpets for cleaning. This will be addressed in the near future.
A motion was made by Edna Weeks to purchase a commercial grade vacuum cleaner for $800, seconded by Charles Mohler, and passed unanimously.
Open Discussion:
1. Balcony repairs were addressed. A survey/questionnaire will be provided to owners at a later date.
2. Solar panels were addressed. Re-installation of panels to heat the pool will be considered at a later date. It was also mentioned that solar panels could also be utilized to reduce energy usage.
3. Mr. Wood stated that Karen Tweedie has spent many hours creating the Towers web site (www.towersowner.com or www.towersowners.com). It is an excellent site and has many links; It can be used to ask questions, see notices of meetings, read minutes, etc. All owners are encouraged to check it out.
Adjournment:
At this time, a motion to adjourn was made by Edna Weeks, seconded by Ron Godlewski, and passed unanimously. The meeting adjourned at 9:17 p.m.
S/S_____________________________ S/S______________________________
Bob Wood, President Tom Moore, Secretary