Budget & Finance Committee
Minutes of meeting held Monday, September 24, 2007
9:30 a.m. in The Overlook Party Room
Pursuant to notice previously given, a meeting of the Budget & Finance
Committee was held on Monday, September 24, 2007 at 9:30 a.m. in the Party Room.
Committee members present: Jerry Page, Vice Chairperson; Jesse Kaiser; Gordon
Calvert; Cecil Uyehara; Sumner Katz; Barry Tossman; Edward Alexander.
Committee members absent: Bob Moreland, Chairperson; Allyn Rickman; Paul Amyot.
Also present: Bernard Silverstein, Board of Directors Treasurer; Beverly
Chaconas, Property Manager; Barry Lubin, Board of Directors President.
1. Call to Order Mr. Page called the meeting to order at 9:30 a.m.
2. Sign In All visitors were asked to sign in.
3. Approval of Agenda The agenda was approved as amended: New Business d.
Approval of DeLeon and Stang to perform the 2007 audit.
4. Approval of Budget & Finance Committee meeting minutes of August 20, 2007
The minutes of the August 20, 2007 meeting were approved as amended: Revised
paragraph B. New Business to read as presented at meeting.
5. Old Business
a. Laddering Smith Barney Investments The committee discussed with the Board
of Directors Treasurer, Bernard Silverstein, the investment laddering with Smith
and Barney. Mr. Page addressed his concern with maturity dates being past a 10
year range. Mr. Silverstein explained that the maturity dates on some of the
investments coincides with the year the expenditure is needed, according to the
Replacement Reserve Study; otherwise, the maturity dates are short term. The
committee agreed to discuss this item in greater detail at the October Budget &
Finance meeting.
6. New Business
a. Financial update on Transitional Warranty Negotiations Barry Lubin, Board
of Directors President, updated the committee on the financial warranty
negotiations with IDI. He noted that some large items are still under
negotiation and the Engineering Committee is hoping the issues can be resolved
at the November 6, 2007 meeting. He explained that one of these items may impact
The Overlook 2008 budget.
b. 2008 Budget Recommendation of draft to Board of Directors The committee
discussed, in great length, their recommendation to reduce the unit owners
contribution to the Replacement Reserve in 2008 to $132,000 and include
approximately $26,800 interest expected on our reserve investments in 2008. The
total contribution will satisfy the recommendation of Property Diagnostics, the
Engineering firm who performed the Replacement Reserve Study in 2007.
In addition, Mr. Uyehara made a motion to include an expense in the 2008 budget
of $15,000 for Property Insurance Deductible. This item will be used only for
exposure to Insurance deductible amounts of $5,000 if necessary. There was no
second to this motion, the motion died.
The committee also agreed to use the $35,480 of the Contingency Reserve to cover
any deficits from previous years and any that may occur at the end of 2007.
c. Review of Financials Period Ending August 31, 2007 The financials period
ending August 31, 2007 was approved as presented.
7. Open Forum There were no open forum comments.
8. Adjournment There being no further business to come before the committee,
the meeting adjourned at 11:15 a.m.
_________________________________
Jerry Page, Vice Chairperson
Budget & Finance Committee