Minutes SBCW BOD Meeting

March 17, 2004 – 10 AM (AST)

SBCW Office

 

President Steve Kerschner called the meeting to Order at 10:02 AM

The Secretary announced that due to issues being discussed and accuracy required, the meeting would be recorded. See Response

Secretary Edie Rohrman gave Roll Call: Present were President Steve Kerschner, Vice President George "Bud" Wood, Secretary, Edie Rohrman, Members, Steve Sokolow, Jack Donahue, Treasurer Kay Wood, and Manager Frank Barry.

Thirty Owners signed in for the meeting. A list of attendees is attached on a Sign-Up Sheet.

Minutes: The reading of the Minutes of the January 13, 2004 was waived. There were no comments. "Bud" Wood made a Motion, Seconded by Steve Sokolow that the Minutes be approved as written. Vote was unanimous.

Proof of Notice of Meeting of this meeting was sent to the Board of Directors on March 6 and posted by Manager Frank Barry prior to March 4.

President Steve Kerschner stated that the Board of Directors would deviate from the published Agenda. Steve Sokolow introduced a letter and information as follows,

To the Board of SBCW: See Response

It is the responsibility of an owner to understand the bylaws, rules and regulations of the association, and familiarize themselves with the document and its meaning before proceeding with alterations to their unit. Logic would dictate that a new or prospective owner would do this before closing on a unit. These documents are readily available in the manager’s office. See Response

Occasionally, or I should say rarely, a new owner purchases an apartment in the Condo who chooses or wishes not to conform to the rules and regulations and the bylaws of the association, or chooses to use them for their own purposes and selectively. We are faced with such a situation now. See Response

Mr. George Simpson, in spite of every attempt by various Board members and the Manager to explain that his request was rejected and why, has not listened to the explanation. I might add that this was done verbally, and in writing, by a Board member who in the letter to him used the term "vote" improperly and later corrected it in a conversation. Mr. Simpson refuses to accept this fact . See Response

He has out and out rejected all logic, up to and including a number of letters from the association’s attorney, advising him not to proceed with the work. See Response

He insists that he has been given approval and that the Board is "a bunch of thugs, and liars, the association lawyer is a liar and should be disbarred, the manager is part of a conspiracy." He continues the harassment of certain Board members. See Response

This vitriolic and uncalled for action is not in keeping with someone who has agreed to become part of a community organization (SBCW). Because his request was rejected by the board, he has gone on a campaign to verbally assassinate the board, the condo association’s attorney and the manager. He refers to a conspiracy between the board and its manager. In spite of written confirmation from the association’s attorney as to the legality of the board’s action and insisting that the individual cease and desist from directing his comments and letters to the board members, Mr. Simpson continues to ignore these facts. See Response

The board, correctly so, evaluated the request in keeping with the bylaws and regulations of the association. The board rejected his request because of the fact that his request would not conform to the look of the buildings. See Response

Mr. Simpson selectively requests permission when it suits his purpose and ignores the rules when its suits his purpose. He, without requesting permission, removed the interior wall of his apartment. More significantly, he has impacted the structural integrity of the building, which the board will insist he restore. See Response

In a condo association, we would expect that the individual owners would understand that the board’s job is to ensure, among other things, that we maintain a consistent look to our buildings. When an individual has become so obsessed with the board’s action, it is time for him to think that he may be in the wrong place. See Response

The board is an elected body by the owners and serves at their will, and is expected to protect the good of all. Mr. Simpson, by his actions of refusing to accept an honest evaluation of his request, is costing the owners of the condo association money by having to constantly have the association’s attorney involved in this dispute. See Response

S. Sokolow

Board Members

In addition to above statement, copies of Mr. Simpson’s, letter sent CMRR to the Board of Directors, dated February 17, 2004 and Mr. Simpson’s e-mails to Edith Rohrman, Secretary, dated January 27 and 29, 2004 with her response to Mr. Simpson dated January 27, 2004 are attached as part of this meeting. See Response

It was also noted that on February 4, 2004, the Law Offices of Andrew Capdeville advised Mr. Simpson to "cease and desist from further communication with the individual board members, effective immediately regarding the window issue. Specifically, you are hereby directed to cease and desist from communicating with Edith Rohrman at her e-mail address." See Response

The Board then directed that an engineering report from Udo Penthur dated March 11, 2004 be incorporated as part of the Minutes. See Response

A Motion was made by Steve Sokolow that Owner George Simpson immediately restore interior walls to restore the structural integrity of the "C" building. The staff cannot work on the roof. "Bud Wood" seconded the Motion. After discussion, the vote was unanimous. The Motion was amended by Steve Sokolow to insure a 30-60 day repair. Bud Wood added that a structural engineer must approve plans and final results. Vote was unanimous and Motion was carried. See Response

The next issue was to address 7 points in a letter that Mr. Simpson had directed to the Board on March 15, 2004 and summarized as follows (Copy attached) -- (Note: It was not attached)

  1. Steve Kerschner is not entitled to be a SBCW Board Member or President of the Board. Steve Kerschner addressed the first point in the letter in detail with documents. He is now a full owner of the apartment but had been half with his mother, Barbara. See Response See Question
  2. Uninsured Funds Problem Must Be Fixed:
  3. Investing SBCW Funds in Marketable Securities Must Stop.
  4. The Present Signature Authority Resolutions are Unnecessary and Risky: These issues concerned "uninsured CDs and monies at the brokerage firm as well as signature power for SBCW by a non-board member. Bud and Kay Wood addressed these items. The CD’s were split months ago when they identified concerns of more than $100,000 in one financial institution. The BOD is comfortable with the stability of Banco Popular. The BOD has Liability Insurance to cover actions for just such situations. Owners are more concerned than in the past and the BOD is looking at moving to First Bank and Scotia Bank. The BOD is leaving the Operating Account and a small CD in Banco Popular. There is little more than $100,000 in each one. There is a need for more liquid CD’s and the BOD should consider what do as far as the length of terms on CDs. Bud Wood then addressed issue #3; investing in marketable securities. He read a letter from Keith Heller of Merrill Lynch investment firm who handles the SBCW funds. Keith commented that SBCW is in pretty good shape with investments despite the economics times we are experiences. Bud Wood noted that he had experience as a stockbroker and felt we were doing well. Steve Sokolow added that he felt the BOD and SBCW were well protected. The money is not sitting without security. Kay Wood addressed Item #4 concerning signature authority. She stated that the Manager must have the level of authority to sign checks as our BOD has given Frank Barry. Concerning the matter of having another person with signature authority, is necessary to have a full time resident as the second signature power. The BOD has no concern about the people presently authorized. (Note: There is no way to figure hou what they are saying here -- see question)
  5. Frank Barry’s Credit Card is Used to Pay for SBCW Expenses: Steve Sokolow addressed this item concerning the use of Manager Frank Barry’s credit card for certain SBCW expenses. All expenses are, and have been, reviewed and signed off then audited by our CPA. Steve cited the number of times in business that this type of use of an employee’s card is common practice for emergency purchases. Employees can and do charge to personal credit card. The matter has been reviewed in depth. The question about mileage earned by use of a card shows the gain is pitifully small; 5,000 miles. This outweighs the Condo Association owning and controlling a card. Jack Donahue also explained his experience with similar practice.
  6. Frank Barry’s Vacation: Steve Sokolow responded to this issue. He had been asked by the BOD to put together Policies and Practices a number of years ago. He reviewed and advised the BOD of policies for Manager’s hours. It was in the best interest of the Condo Association and Manager to give Compensation time as opposed to time and half pay. The Policy has been reviewed periodically and remains in the best interest of the SBCW Association. See Response
  7. The Illegal Alien we Hire "Off the Books": Temporary employee, paid by check not cash. The employee is question was a part-time member of the staff. He was effective in his work. A Social Security Number and paperwork were requested from him to enable a W-2 and proper forms to be executed. When he was unable to produce the information, he was terminated. (Note: This is untrue, they knew they had an illegal alien on the books along, the bookkeeper knew it)

Bud Wood addressed the matter that a set of each owner’s apartment keys needs to be available for the office. C-4 has provided no keys to the Manager. By-Laws Art. 5, Sec. 15 states keys must be provided to the Manager for emergencies. A Motion was made by Bud Wood, seconded by Steve Sokolow that a set of keys for Apartment C-4 were to be delivered to the Manager by the end of business day Thursday, March 18, 2004. Vote was unanimous. See Response

Steve Sokolow requested that the Minutes should relect the stupidity that has required the BOD of SBCW to spend extensive time on these matters rather than address Condo issues. The BOD has been harassed by will stand firm. Charter by all Owners. See Response

Bud Wood addressed a letter from new Owner Avna Cassinnelli. She has asked the BOD to check into the feasibility of having stand-by generators for all buildings in the event of loss of power for an extended period of time. Steve Sokolow will chair a committee to look into this request. He will work with the Manager and present periodic reports. It was suggested that Bill Blessy could review and offer suggestions for action. A copy of the letter is made an attachment to the Minutes.

Treasurer’s. Report: Kay Wood noted a variance in staff expense on the budget. This is due o the extreme wet weather we experienced in November. She also stated that CD’s are due to roll over. Discussion was held on the best terms; 6 months or 1 year? She asked for direction from the BOD. Steve Kerschner said he would like Kay as Treasurer and Frank as Manager to look and seek best rates. It would be prudent to extend the time if in the best interest of SBCW. Steve Sokolow suggested that the BOD should keep one CD in relatively short term for liquidity purposes. Steve Sokolow thanked Kay for her efforts.

President’s Report: Steve Kerschner again emphasized that the BOD has been involved a lot in the issues with Apartment C-4. Steve stated that he hoped to move on after this meeting to better times and a more progressive environment. He expressed his thanks to Frank Barry for his time and efforts for SBCW. See Response

Manager’s Report: Frank reported that all systems are A-OK, up and on line. We have installed a second ozonator in the pump room in an effort to completely eliminate the occasional sulphur odor occurring in the water when the cistern falls below six feet. He recommended that the BOD purchase all new membranes for the plant. They will furnish SBCW with better quality water and meet the EPA standards. A second new storm drainage pump has been installed to speed up rainwater removal from the parking lot. He also noted that in the last two months SBCW has billed more than $3,000 in general work orders. Current billings exceed $40,000. In addition the staff was scheduled to complete the power washing and resealing of the roof of "C" Building but that project has been put on hold due to a structural problem. The staff will also attempt to repair and repaint rear privacy fences as time permits. Plans are being made to reroute the roof water runoff from the parking lot directly into the pond. This has been surveyed for elevation and inspected the plumbing with Owner Pat Gilbertie, who approves the plans. Frank commented that as occupancy slows during May and June new topsoil, mulch and plantings will be installed in the islands behind "C" Building. He reported no problems with the staff and advised them of his entitled vacation and compensatory time plans beginning March 19 and returning March 30. Concerning the Resort, Frank noted that it continues to appear run down and there are no changes. He was asked about Pelican Beach development and noted there have been no changes at that location either.

Ageing Report: There are presently two liens on file for delinquent payments.

In a special note, Frank advised the BOD that the office had not been given a key to Unit C-4. He addressed the potential insurance, emergency, water heater and fire problems. After discussion, the BOD resolved that the Owner of C-4, Mr. Simpson, shall provide the SBCW Manager with keys to the apartment by the end of the business day on Thursday, March 18, 2004.

Investments: Bud Wood reported on the status of the Association’s investments. Presently there is Windstorm and Hurricane coverage in the amount of $969,977. The Capital Replacement account has $218,847 for a total of $1,188,824.

Edie Rohrman expressed condolences on behalf of BOD to the Hechinger and Amende families for the recent loss of John Heckinger and Louis Amende.

A request was made from Buddy Prensky, Owner D-35, to speak. It is inoorporated into the Minutes as follows:

"What I have to say is coming from the unique perspective of being an original owner and past Board Member.

During the past 34 years our condominium has had at least 8 Managers including Frank’s 14-year tenure.

While Board Members have a thankless job, the Manager has the most difficult attempting to satisfy 111 bosses while facing them on a daily basis.

Taking into consideration the age of the property, its original problematic construction and two major hurricanes, the condominium is better today than ever before.

It is my opinion that Frank Barry has been the best Manager that we ever have had."

Old Business:

The issues concerning Unit C-4 were on the Agenda. Steve Kerschner noted there will be no further discussion and the BOD considers the matter closed.

The matter of telephone wiring for "D" Building was addressed. After discussion it was requested that the BOD give Steve Sokolow, Frank Barry and Bill Blessey authority to look into the matter. The issue must be resolved. Motion made by Bud Wood, second. Edie Rohrman. Vote Unanimous.

New Business: Quotes for work on the parking lot were distributed to the BOD. Frank Barry explained the work to be performed. He said that Betterroads is top of the line in their work. Frank suggested the repairs could possibly wait another year. He feels drainage to the parking lot should be improved first. Island Roads bid for only 1" of re-surfacing. Steve Kerschner noted the bids received were different. Allan Shultz commented that both bids are about re-surfacing and that flooding is a problem. Discussion was held on what is foundation; is re-milling an option. The Contractors have both said the base is fine. The BOD agreed to have the engineer, Udo Penther, look at the situation and comment. Steve Sokolow noted that the BOD should put in drainage first then look at paving. The matter will be reviewed at the next meeting. More information is needed before the BOD spends money.

Insurance: Frank Barry reported that Property Insurance all goes through London brokers and it does not pay to "shop". Presently the quote is $10,000 less than last year; and based on insured value of $13,053,880 the premium will be $88,553.56 for all risks of direct physical loss or damage including earthquake, fire, theft but excluding windstorm and flood. Windstorm insurance has a limit of $1 Million and the premium would be $201,650. Bud Wood noted that we are better to continue as we are with self-insuring and build the reserves. Bud Wood made a Motion to accept the quote for coverage, second by Jack Donahue. Vote unanimous. Authorization was given to Frank Barry to obtain and sign for the coverage.

Roof Drainage: Plans would let water run from 55,000 sq. ft. of roof space into the pond. Par Gilbertie has shown our crew how to accomplish the work and it can probably be done in a week. Our staff may need extra laborers and backhoe. Steve Sokolow asked if the BOD can assume there are no environmental issues with re-routing roof water into pond. None are known. Frank Barry noted that we have permits allowing discharge of water from RO, roofs, etc. into pond. We can’t pump into ocean. Steve Kerschner authorized Frank Barry to proceed. Motion was made by Steve Sokolow, second Bud Wood. Vote was unanimous.

Nominating Committee: President Steve Kerschner announced that Selbra Hayes, Ellen Yost, and Roz Luger had volunteered to serve. He asked if there were any questions or discussion. There was none. Bud Wood made Motion, second by Steve Sokolow to appoint them as the Nominating Committee. Vote was unanimous. Positions open for BOD this year are Edie Rohrman, Steve Kerschner and Steve Sokolow. Rohrman and Kerschner are completing their second terms and are not eligible to run.

The BOD discussed various dates and set the next Meeting for May 20th (Thursday) at 9AM

At this time questions from Owners were addressed:

Geri Gilbertie talked about denying an owner changes in windows. She said the rules and the BOD must be consistent for all owners. What is done for one must be done for all. Steve Kerschner asked that she take this up with Frank Barry and the BOD will address the issue. Geri would also like to see Frank verify work and that pricing is fair to owners. Frank explained that during high season, SBCW needs all its employees. As a benefit to Owners, the BOD established a level of charge for employees for Work Orders when the time is available (Off season). This is a win-win situation for all. Charge and jobs not always equal. With major renovations Permits, Inspections, and Insurance are required. (Note: No permits of inspections -- at SBCW for at least 10 years, this is untrue and the Directors knew it.) Geri asked if our staff is qualified? Steve Kerschner said he believes they are. Steve Sokolow noted that with any renovations, owners have an option to go to other contractors but it is beneficial to SBCW if owners use our staff. The Income is better than the Expense. Compared to outside, owners are getting a good deal and so is SBCW. Kay Wood suggested that when Owners think about renovations, they should consider the staff. People familiar with the property who know what can and cannot be done safely are doing the work. Consequently when the staff does the work, they know how to fix any problems. This is a point well taken. Geri expressed concern about work being done properly. There are things that could pose problems due to lack of knowledge. Permits should be taken for these jobs to verify work is done in accordance with specs. (Note: See Permit Violations)

Ted Newman addressed his concerns about hurricane insurance. He commends the BOD for its efforts in this difficult area. Steve Kerschner requested that the Minutes remind owners that aluminum hurricane shutters are required. Orders due early May for a bulk purchase by June. Sybil Lisansky asked if Owners needed to sign up for shutters. They must contact Frank Barry. Buddy Prensky said the issue is ambiguous and asked if aluminum shutters are mandatory or voluntary? Steve Kerschner stated that the BOD adopted a resolution at the September 2003 BOD Meeting requiring the shutters. They are not only beneficial to the units but to our Insurance coverage.

Carol Jeglic noted that the fences look atrocious. She suggested checking items at the newly opened Home Depot and asked about using plastic to eliminate the repair issue. Frank Barry said he tends to agree that wood is outdated and difficult to maintain. Steve Sokolow directed Frank to look into ideas and prices at Home Depot.

Jack Golden requested that Minutes be sent out in a more timely manner. It was explained to him that the Minutes couldn’t be distributed until after approval at the next meeting of the Board.

Owner Barbara Burkley expressed her thanks to all the BOD members and Frank Barry for their efforts. Ruby Vaughn thanked the BOD for addressing the telephone problem in "D" Building.

There being no further business, a Motion was made by Steve Sokolow, second by Bud Wood to adjourn the meeting at 11:15 AM. Vote was unanimous.

Respectfully submitted,

 

 

Edith A. Rohrman

Secretary