Budget & Finance Meeting June 20

Budget & Finance Committee

June 20, 2012


1. Meeting was called to order at 7:00 pm.

2. Committee Attendees:  Wes Elliott (Vice Chair), Dale Urbanek, Ken Walsh, Robin Kinkead, Schalyn Sohn.

3. Non Committee Attendees: Wendy Taylor (General Manager), Scott Fisher (SRP Treasurer), Suzanne Allen (Armstrong Management).

4. There were no public comments / Issues.

5. No one electronically recorded the meeting.

6. The committee reviewed and discussed the April 2012 financial statements prepared by Armstrong Management.  Ken Walsh made a motion to accept the financial statements as presented.  The motion was seconded by Robin Kinkead.  The motion passed unanimously. 

7. The committee reviewed and discussed the May 2012 financial statements prepared by Armstrong Management.  Ken Walsh made a motion to accept the financial statements as presented.  The motion was seconded by Schalyn Sohn.  The motion passed unanimously. 

8. The Committee reviewed and discussed investments:

a. The Budget & Finance Committee made a recommendation that the SR Board reinvest the $150,000 Replacement Reserve CD with Banco Bilbao-Argentina and $90,000 currently in the Morgan Stanley Smith Barney Money Market account into a 7 month CD offering through Morgan Stanley Smith Barney with Banco Popular CD Hato Rey PR.

9. The committee reviewed and discussed the 2012 funding of the General Operating Reserve.  Dale Urbanek made a motion to ‘Transfer the calculated General Operating Reserve funding for 2012 to the Morgan Stanley Smith Barney Operating Money Market Account.  The motion was seconded by Robin Kinkead.  The motion passed unanimously. 

10. The committee reviewed and discussed the recommendation of Proprietary Management to exercise renewal options with Clippers.  The committee considered the need to request additional proposals, but were told that the option renewal terms were better than other proposals received the last time the contract was put to bid (for the fully ‘built out’ community), and that option renewals did not necessarily require additional bids for comparison. 

a. Ken Walsh made a motion to ‘Recommend that the Board of Directors exercise the 2 one year options (one at a time), at rates presented with the letter from Clippers President John D DeBell, Jr., dated 06/13/2012.

11. The committee reviewed and discussed the proposals to acquire fitness equipment.  The committee was curious why there was no recommendation from the Rec & Grounds Committee, and was surprised when they found out that the Rec & Grounds Committee hadn’t been presented the proposals.  The committee also felt strongly that 6 pieces of equipment was insufficient for a community the size of South Riding, and wondered why the equipment was being put in a corner of the community instead of somewhere more centrally located (to be more accessible to everyone). 

a. With that said, the committee agreed that fitness equipment was an appropriate (and needed) acquisition, and that the bid process had been followed.  The committee hopes that there are additional proposals of this nature in the future, to better serve the community as a whole.

b. Ken Walsh made a motion to ‘Recommend that the Board of Directors accept the Leisure Fitness bid for fitness equipment in an amount not to exceed $21,000.  The motion was seconded by Robin Kinkead.  The motion passed unanimously.

12. The committee reviewed and discussed the proposals to acquire security equipment in regards to the proposed fitness facility at Riding Center.  Robin Kinkead made a motion to “Recommend that the Board of Directors approve the acquisition of the South Riding Center Security System from Design Tech, to be used for the new fitness facility, with an expense not to exceed $5,000.”  The motion was seconded by Ken Walsh.  The motion passed unanimously.

13. The committee discussed with the General Manager the plan to put SRP Management Company RFP out for bids.

14. The Meeting was adjourned at 8:34 p.m.

15. The next meeting of the Budget and Finance Committee is Wednesday, July 18, 2012 at 7:00 p.m. at Town Hall.