BEDFORDSHIRE CONDOMINIUM TRUST

TRUSTEES MEETING MINUTES — JANUARY 10, 2002

Trustees present: Aufiero, Bonz, DiNapoli, Gartland, Dini, Griffin, Vineburgh.

Unit owners present: E. Zolnay, B. Kort, J. Scanlon, W. Sharpe, R. Koundakjian, L. DeMartino, V. Ippolito.

Alpine representative: Cindy Green

Jim Vineburgh called the Meeting to order at 7:03 PM.

Unit Owners Forum: Sharpe reported on his conversations with the Bedford Board of Assessors on behalf of the Bedfordshire community because the new assessed values have substantial discrepancies between and among similar size and situated units.

The Board of Assessors re-assesses one-sixth of all properties each year. This past year, Bedfordshire was the only condominium complex to be re-assessed. The Board re-assessed each unit separately. They targeted units with finished basements, because they consider a finished basement to provide more square footage of livable space.

The Board of Assessors next meeting is scheduled for January 23, 2002 at 7:30 PM. Bedfordshire will have a group of unit owners in attendance at that meeting to ask about the discrepancies in the assessed values of the complex. It is recommended that unit owners intending to file for an abatement pay their current real estate bill in full, and at the same time, request an abatement. Anyone seeking an abatement MUST file a request no later than February 1, 2002.

Sharpe inquired about insurance coverage for the vendors who will be utilized for the Long Range Plan roofing, trim, painting, roadway projects. Vineburgh: We have spoken with our insurance agent and they have written us a letter assuring us that our coverages are more than sufficient.

 

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Sharpe opined that it is important to have either a Professional Engineer or a Certified Architect review the specifications of the project in order to take any liability off of the Board; and that it is also helpful in the event of any future litigation. The Trustees agreed. Bonz: If we get a bank loan to fund part or all of the project, the bank will require that we utilize one of their approved professional engineers. In addition, they would most likely require a professional engineer to visit the project at least every other week (to approve the work to date and payment of the bills) for the duration of the project. He estimated that having a professional engineer or architect would add approximately $25,000 to the overall cost of the project. DiNapoli recommended hiring a professional engineer in addition to a project manager, or clerk-of-the works, because a project manager is not likely to have the necessary certifications to sign off on specs, etc. and to employ an engineer to perform the daily project management would be cost-prohibitive. The Trustees endorsed this recommendation unanimously.

December 13, 2001 Minutes: Motion to accept: Griffin; Second: Bonz; Vote: All in favor.

Treasurer’s Report (Aufiero): Noted that the Landscaping line item included some landscaping improvements that should have been included in a different line item. Alpine noted and will correct for next month’s report. Motion to accept: Bonz; Second: Dini; Vote: All in favor.

Recreation (Vineburgh): Golf Subcommittee bank balance as of 1/10/02 is $85.41. The golf committee has paid $1000 to the Association for its annual contribution for Golf Course maintenance. This is separate from the amount contributed annually by the committee to offset golf course maintenance expenses above the amount contained in the Association’s budget.

 

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Maintenance (DiNapoli): Recommended accepting the proposals from Waverly Landscaping to (a) repair the patios and/or walkway paver problems at 1M, 3M and 20M, and (b) to have the work done as soon as possible as they represent potential safety hazards. He recommended and the Trustees approved paying for these repairs from the current Reserve Fund.

The Waverly proposal for removal of sumac on the hillside was deferred until the Spring. V. Ippolito’s request to perform preventative maintenance on the drainage system outside of his unit was declined. He was advised to contact Alpine in the event he does get water in his basement this winter.

Garden & Social Committees (Griffin): No report.

Old Business: Vineburgh reported on the horse and black poodle issues. He has identified the name of the owner of the black poodle and is composing a positive letter requesting that the owners refrain from allowing their dog to trespass on Bedfordshire property.

He also spoke with the owner of the horse, Mike Ceppi, who admitted that he rides it on our property but only on the perimeter of the land and never when he sees golfers playing. In a candid and gentlemanly conversation, Ceppi (whose property abuts the entire length of the 1st and 9th holes) noted that he has always tried to be a good neighbor and therefore has never raised the following points: (1) he never rides on the course when there are golfers present; (2) the stone wall near the ninth tee (next to which carts are parked when teeing off on #9) is actually his property; (3) the walking paths behind the stone wall abutting the 9th tee are on his property and he has never complained about our residents utilizing them; and (4) that "hundreds" of errant golf balls land on his property during the season. He has not complained about these in an effort to be a "good neighbor" and he hoped that Bedfordshire’s posture would reflect his and thus allow him to ride his horse on the periphery of the golf course. He also claimed that his horse has

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never defecated on Bedfordshire property and that it has not caused any damage to the turf. Finally, in a nice but equally clear manner, he made it clear that if we were not so disposed, he could insist that we erect a 70 foot high net along the entire property line to prevent golf balls from landing on his property. The Board unanimously agreed that we should continue to act as a "good neighbor" with the understanding that Ceppi agree to repair any damage to the turf that his horse might cause in the future. This has been communicated to and agreed upon by Ceppi.

New Business: Dick Mazow had called Vineburgh noting that there was a Christmas stocking hung on one of the mailboxes, presumably for collecting money as a bonus for the mail carrier. The Board requested that whoever hung the stocking on the mailbox, please refrain from doing so next year.

Mazow also had noted that there were people playing golf despite the fact that the flags had been removed (which has historically signaled that the course is closed). The Board felt that people could play without flags as long as we had Waverly’s assurance that the greens would not be damaged by such play. Post meeting note: Cindy Green spoke with Waverly Landscaping and they assured her that the course and the greens would not be damaged by winter play as long as golfers stayed off the greens if they were wet or covered with frost. The Trustees also reaffirmed the policy that once the course is closed, carts are prohibited until a notice to the contrary is posted in the Spring.

Long Range Plan (Bonz): The specifications for the Roofing/ Painting/ Trim/ Paving project have been revised since the last Board meeting. Letters will be going out to all prospective bidders to submit their best bids according to the revised specs. The LRP Committee will meet with all bidders by the second week of February. The LRP Committee recommended retaining professionals to review all the specifications (an engineer or architect) and all contracts before they are signed (an attorney). This will protect the Board from liability. Due to his travel commitments, Bonz is going to have to decrease and limit his involvement going forward.

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Joe Dini and Tim Gartland, both of whom have applicable experience, will be brought up to speed on this project, as well as all of our long-term plans, so they can become actively involved.

Aufiero spoke with two different banks about financing the Roofing/Trim/ Painting/Paving projects — Warren Bank and Brookline Savings Bank. Both specialize in lending to condominium associations and both seem to have similar terms (no prepayment penalties unless the loan were transferred to another bank) and requirements (deposit of some of our Reserve Fund; assignment of all condo fees until loan repaid). The financing plan would be to negotiate an interest only loan (similar to a home equity line) during the period that the work is being done. It would then be converted to an amortizing term loan.

Dini opined that if the association were to take out a loan to cover the construction period only, we should consider a variable rate; however if we were considering a longer-term loan, then we should opt for a fixed rate.

The Board then discussed and voted on four important issues:

    1. What is the optimal period over which to do the work?
    2. Are we in favor of obtaining some sort of bank financing?
    3. If yes, over what time frame?
    4. What portion of the current reserve fund should be used to fund the project?

The discussion and voting went as follows:

  1. Time Period: Bonz and DiNapoli urged the Board to do the construction in one year as long as the financing can accommodate that. There would be less disruption to the community and it would also cost less. There is not a quality reduction risk and all of the vendors being considered are able to perform the work in one year (excepting one vendor who has too
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    much other recurring work). Bonz moved and Griffin seconded the motion to select a contractor who can do the work in one year. Vote: All in favor.

  3. Construction Period Financing: Dini recommended carrying a variable rate loan during the construction phase; paying it off at the conclusion of the construction; and then obtaining a fixed rate term loan at that point. Dini moved and Bonz seconded a motion to "(a) negotiate with a bank to secure a loan to finance the construction period of the roofing/trim/ painting and paving project as detailed at the October 1, 2001 Special Meeting and (b) to authorize the Treasurer to negotiate to get the best rate and terms available and to pay the necessary application fees." Vote: All in favor.
  4. Post Construction Period Financing: Dini moved and Bonz seconded a motion "to authorize the Treasurer to negotiate rates and terms on a term loan for no less than one year nor more than 3 years; having flexibility on pre-payment; and for an amount not to exceed the outstanding balance of the loan at the end of the construction period loan, plus any directly related loan costs." Vote: All in favor.
  5. Use of Current Reserve Fund: Aufiero recommended not utilizing any of the reserve fund for the construction project because a solid reserve fund indicates to a potential lender that the association’s finances are in strong condition. Bonz concurred, adding that the long range planning study undertaken by the Board last year includes a number of other repairs that will need to be undertaken over time (some in the not-too-distant future) and that we need to have sufficient reserves in place to pay for those repairs. DiNapoli suggested that the Reserve be used to pay for the Clerk of The Works (approximately $50,000). Vineburgh mentioned that he had been leaning toward DiNapoli’s position but that he was swayed by the arguments presented at this meeting, especially Gartland’s observation that prospective buyers expect to see a solid reserve fund for

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the future. Gartland also noted that his data was that the local realtor community seems to have the impression that our pending assessment is evidence that we have not known what we have been doing and that we have to take steps to reverse that impression. Depleting the Reserve Fund would undermine that effort. Griffin opined that the Reserve Fund should be left intact as did Dini.

Gartland moved and Aufiero seconded the motion "to not use any of the current reserve fund to fund the roofing/trim/painting and paving projects with the exception that should it be financially advantageous to borrow from the reserve fund during the construction phase, the Trustees should have the discretion to do so, and must fully repay whatever is borrowed from the reserve fund at the completion of the construction phase." Vote: All in favor.

Gartland recommended sending out a letter to the realtor community at the conclusion of the construction project to spread the word that Bedfordshire has taken care of needed improvements to the property and that we will continue to do so. The Trustees agreed.

Joe Dini moved and Dick Bonz seconded the motion to adjourn the meeting at 9:40 PM. Vote: All in favor.

 

Alpine was instructed to:

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Tickler Note:

Call the Town of Bedford in March of 2002 to have the hydrants flushed in a more timely manner.

 

 

Respectfully submitted by, Attested:

 

____________________________ ___________________________

Cynthia L. Green, Property Manager Karen Griffin, Secretary

Alpine Property Management Bedfordshire Condominium Trust