As a way of introduction, we are self managed. In our decision process, we have periodic workshops. Attendance at the workshop is composed of the board of directors, the building manager (employee, almost always attends), the superintendent (employee, usually attends), our in-house attorney (most often), our outside attorney (occasionally), guest invitees, e.g.: a resident with a particular skill, a tax specialist, a banker, etc.

The frequency of workshops is about one a month or one every six weeks. The duration is typicallyractor 60 to 90 minutes.

At recent workshop meetings, we discussed such items as:
• The underlying rationale for the 2008 maintenance increase and the 2008 assessment; and how we would explain it to the residents.
• The final agenda and format for the annual “open” board of directors meeting.
• The status of arrears in general (we hardly have any), and the status of one shareholders.
• The purchase of a billy-goat to clean our sidewalks.
• The need for some additional furniture in our lobby.
• The status of our outside security firm’s performance.
• The final steps in our acquisition of a larger credit line.
• The Christmas holiday luncheon for our staff of employees and contractors and vendors.
• Shareholders (a married couple) who purchased, who did not move into the apartment but in turn allowed their daughter to occupy the apartment, e.g.: illegal sublet.
• Discussion of capital improvements completed this year and those planned for next year.
• A suggested elevator cab improvement.
• Any pending legislation that might affect The Twin Rivers (Hightstown, NJ) case.
• The status of our pool services company and its contract.
• Letters to the board and the proper response.
• Planned meetings (one-on-one, really two on one) with shareholders.
• Results of requests for proposals and thence selection of a vendor.
• Results of engineering studies.
• Superintendents report on the status of the mechanical plant.
• Discussion of other property conditions.

Quite frankly, our property is in an excellent financial and management position, e.g.: no mortgage, a large capital reserve fund, extremely minimal arrears, board longevity, formal reporting of our financials monthly, weekly management reports from the building manager (including all letters from shareholders), mechanical plant in excellent condition, building in excellent condition, etc.

Thus, we do not have a need for very frequent multi hour board meetings with much anguish and weeping to discuss what will be paid, what will held, where we have issues, etc. As we have a building manager as an employee, most issues are resolved before they come to any board member. In some cases, the building manager will consult with a board member when making a decision, e.g.: switching vendors, responding to a shareholder who is a pest, etc. Kindly note, not all board members need to be consulted. The board member responsible for the landscape committee is somewhat autonomous. Likewise, the board member responsible for the security committee operates somewhat autonomously. The board member responsible for capital improvements operates somewhat autonomously. In point of fact once the outside engineer approves an invoice submitted by the vendor, the responsible board member approves the invoice and allows the building manager to issue a check in the next cycle. Kindly do not opine that we do not seek competitive bids, we do.

Note that we have two payment cycles each month for invoices. All that arrive by the 25th of the prior month are paid by the fifth of the current month. Special payments are issued during the last week of the month. All our vendors are aware of the policy and conform to our requirements for invoice submission.

Thus the fall (year end) open board of directors meeting to which all shareholders are invited by letter covers a narrow range of voting topics, e.g.: approval of the budget for the next year, approval of the maintenance changes (it increases every year in the range of 2.5a% to 4.5%) and assessment (we have an assessment every year), authorization for the board to enter into contracts that might be required per the budget and the capital improvement plan, and approval of the plan to accumulate capital reserves.

As a consequence entering into contacts during the next year becomes a procedural formality that does not require full board of director’s ratification as we have preapproved the authority of the board to enter into contracts. But do note, the bid, the proposals from the vendors and the selection of the vendor is discussed in the workshop.