The 2008/2009 Board of Directors concluded their term with the Annual Shareholders meeting on Wednesday, June 17, at which time finances and accomplishments were discussed.
North Shore Towers attorney Errol Brett began the meeting by saying that American Arbitration Association certified that there was due mailing of the notice of the meeting and the ballots. They also certified that there was a quorum present.
Brett then corrected previous information he gave regarding opening ballots. He explained that the first wave of ballots received are opened to verify that the shareholder is the same person who signed the ballot. In addition, he said that, if a signature is missing, it gets mailed back to the shareholder.
“The only way that we can establish quorum is simply that – opening those envelops,” explained Maria Gonzalez of the American Arbitration Association, adding that they do not look at how the person voted.
Board member and Treasurer Mort Gitter gave a financial report. In reporting the financial condition as of December 31, 2008, Gitter said that it was in “very good shape.” He added that “our 2008 revenues and expenses were each within one percent of what we had projected for the year.”
“Our cash position and working capital, which exceed $3,300,000 as of December 31, remains strong,” he said.
The financial condition of the Country Club was also stable, Gitter said.
As of December 31, 2008, the reserve funds totaled $9,880,000.
Gitter also detailed the 2009 operating results as of the meeting.
“I’m pleased to report that, for the first five months of 2009, we are ahead of budget,” Gitter said. “Our 2009 revenues have exceeded expenditures by over $1,347,000 and this amount is significantly more than what we had projected at the end of last year.”
Gitter explained that there has been a “modest decline” in revenues because of decreases in electricity income, transfer fees and investment income. However, he added that there has been a “significant overall reduction” in expenditures for labor, insurance, repairs, maintenance and fuel costs.
He said that the results for the rest of 2009 will be difficult to predict due in part to changes in fuel prices and an increase in real estate taxes. Along with the assessed value of North Shore Towers being increased, Gitter said the city may also increase the actual real estate tax. Gitter said the assessment is being contested and a reduction is anticipated.
Gitter concluded his remarks by talking about the Country Club.
“As a result of the mandatory Country Club membership for new residents and our newly sponsored membership program, the Towers Country Club has been able to adequately fund its 2009 operations,” he said.
John Hasselbauer, partner with the independent auditing firm PFK, spoke about their work at North Shore Towers. He explained that the audit began in late 2008 and was completely in the early part of 2009, with the opinion being issued last March.
“Our report concluded that, in our opinion, the corporation’s financial statements were fairly stated in accordance with generally accepted accounting principals,” he said. “In addition, we found the corporation’s system of internal accounting controls were operating effectively.”
Bob Ricken then gave the President’s report.
“As your outgoing President, I’d like to thank every Board member for their dedication and the manner in which they contributed their individual opinions on every agenda item,” he said. “Our Board meetings were extremely productive, as evidence by our many accomplishments.”
Some of the accomplishments Ricken detailed were:
-Having greater transparency
-Passing the extension of the length of the propriety lease
-Replacing roofs above the indoor pool and VIP Room
-New sliding doors in the buildings
-Completing the Building One garage ramp and starting Building Two
-Upgrading the fire system
-Redoing the movie theatre carpeting and refurbishing the waiting room
-Upgrading the website
-Modernizing the gym
-Creating sponsored golf membership
-Completing negotiations with Continental Communications that resulted in $200,000 of annual revenue while ensuring the safety of residents
-Ensuring that Q1MA bus service would remain
There are also several ongoing items that Ricken mentioned. They included further investigation of reverse mortgages, west gate paving, negotiations with Time Warner and Verizon, and the debate over using Consolidated Edison or continuing to generate power on-site.
To conclude his presentation, Ricken recognized Board member Chuck Robbins, who retired as a director.
Board member Claire Levitan also presented General Manager Glen Kotowski with a memento in recognition of his work with the House and Grounds subcommittee for design. She explained that he attended all of their meetings and helped in numerous areas.
“Glen, we respect and honor your professionalism and this is a reminder for you of our gratitude,” she said, also describing Kotowski as “our hero.”
Before concluding the meeting, shareholders were able to bring up new business. Resident Ellis Roeder asked if the Towers still had secret ballot.
“It’s a secret ballot because nobody from the Board, management or the building gets to see the votes,” Brett explained. “The only people who do get to see the votes are American Arbitration and their personnel.”
