Fairlington Glen Council Of Co-Owners

Board Of Directors Meeting Minutes

June 7, 2005 (Draft)

Attendees: Mike Hahn, President; Paul Greenfield, Vice President; Bob Patrician, Treasurer; John Fuller, Secretary ; Charlie Robbins, Buildings & Grounds Liaison. Absent: none.

Also present: Sara Jones, Property Manager; Ricardo Solares, Facility Manager; Lee Henry, Jim Hewitt, Margaret Windus (Ct. 1); Bill Boswinkle, Doug Miller, Hal Vorhies (Ct. 3); Sandy Heaton (Ct. 6); Dan Shapiro (Ct. 7); Willard Smith (Ct. 9); Tevis Smith (Ct. 10); Matt Abrams, Dale May, Bill McShea (Ct. 11); Liz Finos, Bill Worsley (Ct. 16); and Pamela Sand, recording secretary.

Call to order: Mr. Hahn, President, called the meeting to order at 7:30 p.m.

Approval of Minutes

07.06.05.1 Motion It was moved and seconded to approve the May 3, 2005 Board meeting minutes. The motion carried (3-0-0).

Pool Party

The Board thanked the Pool Subcommittee Chair and members for their work on the lovely pool party, which had a great turnout.

At 7:34 p.m. Paul Greenfield and Bob Patrician entered the meeting.

Fairlington Glen Replacement Reserves

Bill Worsley of the Reserves Subgroup of the Glen Budget Work Group gave a presentation based on the Subgroup’s report dated May 31, 2005. Two handouts presented budget and reserve projections for 15 years using different scenarios (one would grow the reserves fast, and the other would not). Some of the points raised included the following:

The purpose of the analysis was to determine the Glen’s reserve funding ratio.
Based on the Subgroups research, at the end of 2005 the full funding figure is expected to be $5,478,836, with reserves at $460,781, making the Glen’s reserve funding ratio at 8.4%. One notable reserve consultant recommends that reserve funding ratios fall between 30-70%.
It is proposed that the Glen, in addition to a cash flow study, consider setting a reserve funding goal and incorporate full-funding analysis as a regular feature of its reserve budgeting to keep its progress on track.
Better sharing of data and careful record keeping is needed for a more accurate annual study.
A long term plan is needed to catch up. Policy guidance is needed from the Board before steps can be taken to improve the Glen’s position.

The Board expressed its appreciation for the work of the Reserves Subgroup. Time was given to questions from those present, and the next steps in the 2006 budget process were reviewed.

At 8:24 p.m. several co-owners left the meeting.

Buildings & Grounds (B&G)

C. Robbins reported on items in the May 2005 B&G minutes, including the need for some gutters to be repaired or replaced.

Roof Replacements

07.06.05.2 Motion. It was moved and seconded to approve the May 2, 2005 proposal from James R. Walls Contracting Co. to replace roofs in Court 1 at 3527 - 3529 S. Stafford at a cost of $64,022.00. The motion carried. (5-0-0) The only additional costs would be to replace deteriorated wood, if found.

Annual Audit

07.06.05.3 Motion. It was moved and seconded to accept the 2004 Annual Audit Report of the auditors, Goldklang, Cavanaugh & Associates, P.C. dated March 15, 2005. (5-0-0)

Tax Basis Letter

The Board asked that S. Jones summarize for the July Glen newsletter information contained in a May 24, 2005 letter from Goldklang, Cavanaugh & Associates, P.C. regarding a unit owner’s tax basis.

Drainage between Courts 9 and 10

Proposals from three contractors were discussed ranging from adding top soil to installing a drain costing $6,805. The Board asked that another company or two be asked to bid on the proposed drain solution before further consideration.

Investments

The Board asked that B. Patrician and S. Jones consider two other financial consultants and report back before a decision is made about whether to continue with the services of Michael Hern, formerly of Merrill Lynch, who is now working for Smith Barney.

Insurance Broker

S. Jones reported that Teresa Swan, insurance broker for USI, will be at the July 5^th Board meeting to discuss general insurance coverage as it relates to the needs of the Glen.

B-Unit Painting and Carpeting

Since S. Jones and R. Solares agree that all B-Units are in need of new paint and carpeting, the Board asked that D. Shapiro, Chairman of the Buildings and Grounds Committee, do an informal survey of B-unit co-owners to determine their level of interest in or preferences regarding paint color and carpeting, and report back.

Next Board Meeting

The next Board meeting will be held on Tuesday, July 5, 2005.

Adjourn

07.06.05.4 Motion. It was moved and seconded that the Board adjourn at 9:12 p.m. The motion carried. (5-0-0)