Finance & Legal minutes: 2011-07-11

Minutes:

F&L Minutes 7-11-11



Present: Becky, Amy





1. Becky to present CH Flooring Proposal at 7/18 community meeting



Becky will present a proposal to spend more from the Reserve Fund on
flooring in 2011 than was included in the 2011 Reserve Study. F&L supports
this proposal.



The Reserve Study indicates that we will replace 1508 sq ft of CH carpet in
2011. The four rooms that CH Com wants to do now total 1128 sq ft (Sitting,
Media, Kids, Guest). In addition, CH wants to do the Game Room floor with
bamboo or wood; this adds up to about 2500 ft, more than the Reserve Fund
indicated.



The Reserve Study does not include replacement of flooring in the 3 offices
or the exercise room. Becky thinks that there was an intention to stagger
two phases of flooring replacement over time, but that one phase
accidentally wasn’t included as a line item.


The Reserve Fund planned for $2.50/sq ft of carpet x 1508 sq ft = $3770.



But the quotes CH Com is getting for carpet plus padding is $4/sq ft, plus
installation. And this doesn’t include the bamboo for the GR. A rough
estimate for the carpet in 4 rooms plus the bamboo would be $6,763, with
professional carpet installation but GO labor for bamboo flooring.



MONKEY: Amy will create a document in which we track changes that need to be
made in the next Reserve study, including:



• Add replacement of wood floor in GR – replace in 15 to 20 years

• Carpet in MR, KR, SR, GuestR – replace about 10 years from now (Becky will
report on life expectancy once final choice of carpet is made)

•Carpet in 3 offices and ExerciseR – CH will think about what kind of
flooring

should be in those rooms. We may not want carpet in every room.



So on 7/18 Becky will be asking the community to approve $3000 more than was
scheduled in the Reserve Fund. Within the scope of the Reserve Fund, this
is a very small amount.



2. Reserve Fund Spending Policy



Becky will present a draft Reserve Fund Spending Policy at an upcoming
community meeting. Buildings has a current issue that relates to this. They
would like to spend more on painting porches this year than was planned in
the Reserve Study.



Following is the plan for painting as shown in the current Reserve Study:



2011 - Flats - $4,644

2012 – Painting Phase I siding (includes garages, WS and CH) - $88,225

2016 - Painting Phase II siding (includes garages, WS and CH) - $49,842



F&L recommends that Buildings focus on how the estimate for “flats” is too
low for our intention to paint the porches in 2011, and not think of it as
borrowing from the line item for 2012. We will need that money for its
intended purpose when the time comes.



We found the painting line items to be confusingly terse. We recommend that
Buildings revisit our long-term plan for painting, to find out whether the
way we have divided the phases is complete. We need to include more
definition in the Reserve spreadsheet to include definitions that anyone can
remember in five years.



Buildings needs to figure out how much is needed this year for the porches.
>From the sound of it, it will be significantly more than $4,644. This will
require making a special request to the community at a community meeting.



MONKEY: Amy will communicate to Buildings about this.



Aaron successfully arranged to have the final 2010 Reserve Study pdf posted
on the WiKI.



MONKEY: Now we need someone technical to take just the spreadsheet out of
the Reserve document so it’s not so massive and hard to manipulate. It is
titled “Reserve Expenditures and Reserve Fund Planning,” and includes the
years into the future. It is located near the end of the document. It’s
Page R of the Addendums.





3. Debbi’s leak, possible insurance claim



Debbi had a significant fire suppression leak in her unit that has damaged
the ceiling, her closet floor, and some of her belongings. The leak in the
system has been repaired, but the ceiling and flooring still need to be
repaired.



There is a threshold of cost below which we should pay from the operating
budget rather than make an insurance claim because our rates will go up when
we make a claim. Elph remembers that this is $2500, but to make sure, Amy
will call State Farm to ask.



MONKEY: Amy will call Barb Young to ask about the insurance threshold. She
will also ask questions that Malcolm later posed about why insurance doesn’t
cover repairs to a system that is failing and/or whether insurance would
cover building-wide replacement of the system.



F&L recommends that Buildings:

- ask Rob Marshall or Jeff Clark to estimate the cost of repairs ASAP

- ask TriStar to estimate the cost of building-wide replacement so we
know what that is – at the rate we re spending on repairs, we will surely
soon approach that amount, whatever it is!



Becky called Debbi to urge her to photograph everything.





4. Work survey



F&L’s regular jobs have been checked and are all seet, pre-assignments are
complete.



5. Special Work discussion at 7/18 meeting



Mary is slated to present F&L’s items at the 7/18 community meeting.



MONKEY: Amy will give her the written document supporting this.



Aaron suggested increasing the work hours allocated to the Convener and
Counted Member jobs to reflect the actual amount of time we are working. Aaron
did not realize that we had already increased the Convener’s hours by one in
Fall 2010.



MONKEY: Amy will encourage Mary to share that F&L has been talking about
increasing the hours for its committee work assignments because we often
spend more time than is recognized on work that is very important to the
community’s well-being. We didn’t make the increase for the current work
survey because we knew that the 7/18 discussion is coming and it could be
brought up then.





6. Budget clean up.



Does Carl have all the information he needs? Carl recently asked questions
on e-mail about the Tech budget, which Adi seems to have cleared up for him.




Carl also asked questions about the Reserve Fund budget, and we don’t know
the status of these questions and can’t ask him tonight as he’s not
here. Becky
and Amy both wrote to Carl with information and questions about what else he
might need.





7. Tabled

Aaron re: Master Deed communications with Keast (nothing done on this yet)

Becky - start investment strategy draft

Mary- re: unit in arrears possibly doing special project to work down debt

Upcoming budget process

Buildings would like us to ask Keast’s opinion about the Fire Suppression
problems to find out whether there is any chance we could have legal
recourse and what this would entail.
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