MINUTES OF REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.
MINUTES of a Regular Meeting of the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), held on May 12, 2009 in the Party Room of the Condominium pursuant to notice in accordance with the Bylaws. Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller.
The President called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the minutes of the Regular Meeting conducted on April 21, 2009 was made by Judi Barth with a second by Alexandra Kielty. The minutes were approved with all in favor except for Charles Bressler, who abstained.
PRESIDENT’S REPORT:
President Cunningham addressed the Annual Meeting proposal to remove him, which obtained only 3.4 % of the vote at the meeting. He emphasized that he holds no grudge against any proponent of the motion. President Cunningham also stated that he supports application of the Bylaws. He stated that despite contention, if and when the Board passes a motion, the Board works together to implement the motion.
After the Treasurer’s Report, President Cunningham reminded everyone of the forthcoming presentation by Legum and Norman on May 20 regarding a management contract and said an open Board meeting will be scheduled thereafter to consider and vote on a management contract.
President Cunningham expressed his concern about pinhole pipe leaks and asked that management be notified immediately if any resident observes a pinhole leak, day or night.
President Cunningham said that the tier 06 work continues but the jackhammer noise may be finished.
Alexandra Kielty and Carolyn Farrell discussed efforts made to use equipment to limit drainage leaks. Woody Cunningham returned to the pinhole leaks and said that the total issue will be examined.
Woody Cunningham invited Alexandra Kielty to express herself in light of her re-election to the Board. She thanked the owners (as did Monique Fridell during her report) and commented that the entire Board has shown itself to be concerned about residents’ opinions and have the welfare of all in mind
Charles Bressler said that he wants to thank his supporters, and that he wants the Board to work in harmony. He proposed that residents have 10 minutes to express themselves immediately after the President’s and Treasurer’s report in addition to 10 minutes later and wants to hear a report from management at each meeting.
TREASURER’S REPORT:
Asset Allocation
As of 4/30 we had $2.75 MM in cash and investments, 12 % higher YOY. We have $2.16 million in reserves, 15% higher balances YOY.
Monthly Performance
April financial statements reflect net income of almost $62K. This is understated due the fact that we have not received billing for a number of items, such as electricity, legal and engineering consulting services. Personnel was over budget as there were three pay periods last month. We will be revising downward the final month end income once we receive all our billing. In April we transferred almost $44K to reserves and spent almost $32K on garage repairs and an initial payment for the emergency generator.
FY 2009 Year to Date (YTD) Results
The Treasurer did not review the YTD results, since they would not be meaningful given the timing distortion of the April figures.
MANAGEMENT REPORT:
A copy of the Management Report (Regular Session Agenda), dated May 12, 2009 is available at the office
COMMITTEE REPORTS:
Energy Committee:
David Drazin relinquished the chair back to Joan Rosenbach. The next meeting will be Wednesday, May 13. She recommended that the Board move ahead to install the energy saving fixtures in the garage. The committee is investigating procuring new windows and invited any resident to share information with the committee.
Exercise Committee:
Alexandra Kielty presented discussion of committee recommendations for new [exercise] equipment and invited Jim Jones to comment. The committee will meet in two weeks.
Refurbishment Committee:
Judy Gann reported that the contract with Hartman has been signed and work has commenced on the design phase. The liaison committee that will meet with Hartman consists of Alexandra Kielty, Judi Barth and Judy Gann. The advisory committee which will advise the liaison committee consists of Sharon Bobb, Barbara Smith, Jerry Feldman and Joan Rosenbach. The Refurbishment Committee will meet with Hartman soon. Woody Cunningham commented that major decisions will be made by the Board.
Security:
Al Muller reported that: 1) additional money has been placed in next year’s budget for enhanced security surveillance, and 2) a specific section has been added to the draft contract being negotiated with Legum & Norman Management which will require a comprehensive evaluation of security operations and its staffing. After this report is obtained the issues will be brought to the Board and shared with residents for their input. Charles Bressler commented that when the garage is left open during move-ins/move-outs, for a period of hours, the driver should be asked to leave his driver’s license at the front desk.
Social Committee:
Judi Barth discussed the forthcoming All American Barbeque scheduled for June 14th, starting at 5:30 PM. The Committee is working on supplementing delicious food prepared by Lia’s chef, with really great entertainment. She thanked Marsha Feldman and Millie Silverman for their exceptional efforts in support of friendly social events.
OLD BUSINESS:
Contracts
Woody Cunningham explained that the reason for moving the meeting up a week is the necessity of having to approve ECA’s master insurance policies before our current policy expires on May 15. John Manougian Insurance/Fireman’s Fund was reported to have done a fine job of keeping our costs down. The cost of the current policy is approximately 1% higher than last year’s. A motion to approve the new master insurance policy was made by Al Muller and seconded by Judi Barth. This motion passed unanimously.
Under the new Maryland condo law, unit owners are responsible for the first $5000 deductible. . Also, the fidelity bond insurance increased as a result of new state requirements that associations insure three months’ worth of assessments and 100% of reserve funds. Carolyn Farrell proposed that Management send a reminder to owners regarding changes in this insurance deductible
Ratification of a contract to install drain pan in Unit 06, costing $6,000 with Structural Preservation Systems was discussed. A motion to approve was made by Alexandra Kielty and seconded by Al Muller. This motion was passed unanimously.
Woody Cunningham reported that the garage repairs in progress involve almost three times the physical area than was anticipated. He asked approval to extend the contract to include the additional work, estimated to increase the cost by approximately $30,000, although it could cost more. Woody Cunningham requested approval of a $30,000 increase at this time. A motion to approve was made by Jeffrey Axelrad and seconded by Charles Bressler. This motion was passed unanimously.
Budget
Monique Fridell discussed some of the proposed increases in 2010 budget categories. Discussion ensued as to the budget anticipating televisions in the exercise facility and whether this is what the users desire.
Woody Cunningham commented that there will be changes in individual items in the budget but the Board’s commitment is not to exceed the budget except in extraordinary circumstances.
A resident asked about the basis for condo fee increases. Monique Fridell responded that they are generally based on estimates of replacement costs for common elements from the Reserve Study, the first conducted since the 1970s, but that they were at the discretion of the Board. Woody Cunningham mentioned that the Five Year Plan which the Board will consider in the near future will be important. A motion to approve the FY 2010 budget was made by Al Muller and seconded by Monique Fridell. This motion was passed unanimously.
Additional Contracts
TrashAway’s proposed contract was the next order of business that WC raised. This contract is for $33,000, a 3% increase over last year. After discussion initiated by Al Muller, a motion to approve was made by Judi Barth and seconded by Charles Bressler. This motion was passed unanimously.
Complete Building Services, the company that services McQuay units, contract was the next contract considered. WC mentioned that prior contracts charged time and one-half for weekend work arranged by residents but this contract bars weekend work in order to manage costs. The contract price represents a 5% increase over last year. WC asked that management prepare a note on CBS’ services to send to residents. A motion to approve was made by Alexandra Kielty and seconded by Judi Barth. This motion passed unanimously.
Alexandra Kielty mentioned that she has heard from several residents that they want to keep Aquafit, our pool contractor, and solicited comments.
Discussion ensued by several Board members on the topic of obtaining competing bids on other contracts, including Aquafit, the auditors, and landscaping.
Judi Barth asked Carolyn Farrell whether the landscaping contract will include changes or modification (design) as well as maintenance of plants and landscape. Carolyn Farrell says the contract solicitation will be in the latter category.
COMMENTS FROM THE FLOOR:
A resident commented that lifeguards do not attend to business. The resident also says that there is not a pen available to sign in. Axelrad commented that if not for the legal requirement he would dispense with lifeguards and doesn’t see the harm of lifeguards doing more than staring blankly at the water. Many residents shouted their disagreement with this position.
A resident [Sharon Bobb] then commented on the absence of fire horns in the arcade offices. This resident also commented that ECA’s sample rental contract is not in accord with Montgomery County law and should be updated. Also, the resident commented that there is not a consolidated resident information data base to control data although we have lots of lists for particular purposes and the lists are inaccurate. She also complained of pets having accidents in the arcades. She mentioned the surveillance camera point that Al Muller commented upon and urged that board members again address pets and what is the definition of a “small” dog. She recommends that the Board look into the categorization used by the American Kennel Club and incorporate it into the Bylaws. She also said she had learned that arcade owners are under the impression that there are limits on whom owners can send to Board meetings in their stead and questioned whether there is, or should be a limit. She also addressed old toilets and leakage and recommended that the Board send a notice to residents that old toilets can break, find out the interest in replacing toilets and find a bulk price for replacement of toilets. She further said that ECA should retain an exercise physiologist to advise us on appropriate equipment for the exercise room.
A resident commented that she loves dogs, however, she recently encountered a very serious and dangerous situation. While dressed for a formal event on Saturday night, she entered an elevator which had liquid on the floor that she believed to be from dog urine. She complained that owners should take care of cleaning after their pets. She supported the idea of having effective surveillance cameras in elevators. She said our cleaning company is first rate and the cleaners are superb.
A resident identified himself as Jim Rich and said owners should take care of their dogs but noted that dripping swimsuits sometimes also leave puddles in elevators.
A resident commented about the voting process as a nominating committee member and voting judge. He handed written comments on the process to each Board member.
A resident commented on the previous comment concerning dogs, and restated the fact that some dog owners are not attending to their dogs. She expressed her concern.
Jeffrey Axelrad commented that he believes that we should definitely apply the enforcement policy to dog owner offenders.
A resident commented that some buildings do not allow renters to possess dogs. Al Muller commented that the rule is the same for renters as owners on the advice of a former counsel.
Monique Fridell commented that Sharon Bobb has done considerable work on the nominating process. Ms. Bobb prepared a document on the process that should be considered and implemented by the next election.
A resident commented that owners need to cleanup their pet accidents immediately.
Another resident suggested a reminder letter to registered pet owners. There was further general discussion of pet accidents.
Window replacement tax credits were mentioned by a resident. Woody Cunningham asked that information be shared with the Board.
A resident asked if the sales tax issue has been resolved. Carolyn Farrell commented that Pepco has agreed not to charge taxes in the future and we are being sent a form to confirm exemption from the tax and that may permit a refund to be obtained for some past payments. Washington Gas asked for an email and will remove the tax upon confirmation; we will need to complete a form to confirm exemption and receive a refund. Another resident asked if it had been the proposed management company, Legum and Norman, that alerted us to this cost saving; Woody Cunningham responded in the affirmative.
A resident suggested that our cleaners be asked to clean the party room. There were numerous comments of support for this proposal.
There were no additional comments from the floor.
The meeting was adjourned at 9:20 p.m.
Respectfully submitted,
Jeffrey Axelrad
Secretary
[These minutes were prepared Jeffrey Axelrad, Secretary of the ECA, and Karren Alenier posted these minutes to this blog. Alenier has bolded some of the issues for ease of locating specific topics. The ECA Board Meeting Minutes is a public document and available in paper copy at the ECA Management office.]
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