THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting June 16, 2009
Board
Present: Woody Cunningham .......President (late)
Alexandria Kielty .........................Vice President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Jeffrey Axelrad ............................Secretary
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present: Carolyn Farrell ........Manager
Patty Dubuque .......Executive Vice President, Community
................................Management, Legum & Norman
John Algner ............Community Manager, Legum & Norman
Judy Brantover .......Regional Vice President, Legum & Norman
Martha Morris ........Recording Secretary
Call to Order: Ms. Fridell called the meeting to order at 7:34 pm.
Approval of Minutes
MOTION Dr. Muller moved to approve the minutes of the May 12 and May 26, 2009 Board meetings as corrected. Ms. Kielty seconded the motion.
MOTION Dr. Muller moved to amend his motion to add Ms. Bath’s written statement as an addendum to the corrected minutes. Ms. Fridell seconded the motion. The vote was 5 in favor, Mr. Axelrad opposed. The motion carried.
The Board then voted on the original motion as amended. The vote to approve was unanimous among the members present.
Ms. Fridell asked that Board members please submit their corrections to the minutes at least one week before the next meeting.
Treasurer’s Report
Ms. Fridell reported that reserves as of May 31, 2009 were $2.1 million, 13.6% higher than last year. She has shortened the terms of some investments to ensure liquidity for upcoming projects. With regard to performance versus budget, the Association’s net operating income is almost exactly on budget for the 11 months ended May 31, 2009.
Old Business
Update on leak in Unit 06 – Ms. Farrell reported that staff is working hard to ensure the leaking has stopped. Mr. Axelrad asked about another leak in Unit 214. Ms. Farrell responded that she investigated that unit with Engineer Ken Costeva and discovered the window was constructed differently from others in the building, which is probably the cause of the problem. The engineer suggests that this repair be made at that time when the next façade work is performed. The bids will be sent out soon. She added that Unit 215 will be included as well in the RFP since that unit also had a non-standard window.
Roof – In response to a question from Ms. Kielty, Ms. Farrell reported that the roof work has not been completed due to the rainy weather.
New Business – Legum & Norman
Ms. Fridell introduced Patty Dubuque of Legum & Norman, who oversees all community management functions. Ms. Dubuque introduced John Algner, who will act as Community Manager and liaison between the L&N site staff and the L&N staff in Alexandria, and Judy Brantover, who oversees properties in Maryland and Washington, DC, including the Somerset and the Carleton condominiums. Ms. Dubuque referred to the letters of introduction that had been sent to all Elizabeth owners. Owners on direct debit need to pay by check and coupon for one month (July 2009) during the transition and sign up for direct debit service with L&N by filling out the form included in the introduction packet. After July, all owners will have the option of paying by check, direct debit, or online bill-paying service. In addition, Legum & Norman has submitted to the Board the Merchant Agreement which would allow for an additional option, for owners to pay by credit card. This would cost the Association $8 per month; each owner would be charged 5% of the condo fee amount as a convenience fee. Ms. Dubuque concluded by saying that Legum & Norman is ready to begin on July 1 and that staff is looking forward to working with the Board, residents and staff of The Elizabeth.
Committee Reports
Energy Conservation – Joan Rosenbach
• Major activity has been the review and analysis of the consultants’ reports as requested by the Board: 1) Preliminary Energy Audit, conducted by American Renovators; and 2) Precision 20/20 Full Reserve Study, conducted by Reserve Advisors, Inc.
• The Energy Audit consultants addressed several key issues:
o fluorescent lighting in garage
o windows and doors
o heating and air conditioning units
o electric metering options
• Energy Audit consultants recommended two steps:
o retrofit fluorescent light fixtures in garage – major savings, fast payback
o undertake further study to address other issues before any steps are taken
• Committee recommends:
o proceed with retrofitting fluorescent fixtures in garage
o within 60-90 days retain services of consulting electrical and mechanical engineers to further study issues related to windows and doors; heating and air conditioning; and electric metering options.
Ms. Farrell noted that as soon as the current garage work is completed, she will be obtaining bids for replacement of all the long fluorescent tubes in the garage, stairwells and other areas.
Exercise Committee – Alexandria Kielty
Ms. Kielty reported that the committee met and distributed a survey to all residents for them to fill out and provide their feedback on Exercise Room usage and recommendations. Blank copies of the survey are still available at the front desk for residents to complete before the June 22 deadline.
Refurbishing Committee – Judith Barth
Ms. Barth reported that the process is going well. The committee met with Hartman Design Group on May 27 and reviewed preliminary designs, with three different color palettes for carpeting, wall coverings and fabric. The committee was very pleased with the preliminary designs. Ms Barth said that, after the meeting on May 27th with the Hartman Design Group, the committee had a meeting with the resident advisory committee which also was very pleased with the preliminary plans that were presented. The first step will be to propose options to the Board. Once Hartman has been given the go-ahead, it will be six months before the work will commence and another 6 to 7 months for the first phase to be completed. When the carpet and fabric are selected, samples will be placed on boards for presentation to the residents. Ms. Kielty added that Ms. Hartman and her firm are very professional and have extensive experience with high-rises. Ms. Fridell asked that the committee provide an estimate of timing and amount of monthly cash outlays so that she can structure the reserve investment portfolio to meet those expected payments.
Security Committee – Dr. Alfred Muller
Dr. Muller stated that Legum & Norman will review the present security situation and will provide the Board with a written report with any recommendations for change. He reported there had been a security incident in one of the units and the committee is awaiting the police report. Mr. Bressler expressed concern about the garage door which is left open by movers and other delivery vehicles entering the building.
MOTION Mr. Bressler moved to require vendors entering the building to surrender their drivers licenses at the front desk which they may retrieve when departing the building, at which time, an attendant will check to make sure the garage door is closed and the elevator unlocked. Mr. Axelrad seconded the motion. The vote to approve was unanimous among the members present.
Social Committee – Judith Barth
Ms. Barth reported that a very successful party had been held on Sunday with 107 guests in attendance. She thanked the committee and the volunteers who were tremendously helpful. A resident thanked Ms. Barth for her work as Chair of the Social Committee.
Floor Representatives Committee – Dr. Alfred Muller
Dr. Muller reported that the committee is working on preparing welcome packets which they will send to the floor representatives to distribute to new residents. Mr. Cunningham has suggested that an event be held to thank them for their efforts.
[Mr. Cunningham arrived at 8:25 pm]
Discussion Items – Contracts
Chiller – Mr. Cunningham reported on the meeting he and Ms. Farrell had today with Densel Company about the work being performed on the chiller. Densel explained that the chiller should have been examined and evaluated every five years and that it had been 10 years since it was last examined. Densel recommends replacing the bearings ($10,257), replacing the linear float ($1,777), and replenishing 250 pounds of refrigerant ($1,879). Mr. Cunningham asked the Board to ratify an amendment to the contract.
MOTION Mr. Axelrad moved to ratify an amendment to the Densel Company contract to replace the bearings and linear float and replenish refrigerant in the large chiller at a total cost of $13,913. Dr. Muller seconded the motion. The vote to approve was unanimous.
Structural Preservation Contract -- Change Order – Ms. Farrell reported that in the course of the contract work on a portion of the extended roof, it was observed that the flat roof eventually drained but there is still a puddle in the center. The electric room is directly underneath, so if a new drain is installed in the roof, this will need to be factored into the location of the drain. Mr. Cunningham recommended that management proceed with this repair, with the understanding that protecting the electric room will need to be a priority.
MOTION Mr. Bressler moved to amend the contract to allow the installation of a new drain in a portion of the lower level flat roof at a cost of $850. Ms. Barth seconded the motion. The vote to approve was unanimous.
Securitas –The cost for services will remain unchanged for this year.
Cleaning Contract – Ms. Farrell has received two bids. The Board feels that the present company is doing a good job; cleaning staff has agreed to add several new items to their work list, such as the Party Room, at no extra charge. Ms. Barth asked if they could polish the residents’ door hardware; Mr. Cunningham said that task would probably be better handled by the company that polishes the elevator hardware.
MOTION Mr. Axelrad moved to approve a two-year contract with the current cleaning contractor, with no increase in price. Mr. Bressler seconded the motion. The vote to approve was unanimous.
Horizontal Pipes – Ms. Farrell submitted a $486 thousand proposal to the Board for horizontal pipe replacement on the lobby level for the Board to review and discuss for a later vote. Mr. Cunningham noted that pipe replacement is already part of the five-year plan, which the Board will review in July. There was a discussion about the need to complete this work before the refurbishment project begins. Ms. Farrell added there is additional work to be done besides the pipes, which will be handled by a plumbing contractor. The Board directed Ms. Farrell to follow up with the consulting engineers for more details on the scope of work.
Landscaping Contract
Ms. Farrell obtained one new bid, but has not yet received a proposed renewal contract from the current contractor. The current contractor is working on a month to month basis and the Company’s services are not entirely satisfactory. This item was deferred until the July meeting.
President’s Report
• The Board is working closely with Legum & Norman to have an orderly transition. The new contract will begin July 1 and it is hoped the transition will be complete by August 1. Staff members Carolyn Farrell, Ed Polite and Diane Robinson will work through the transition period until July 31, 2009. Mr. Cunningham would like to have a celebratory event in July for the community to show its appreciation for their service. Other Elizabeth staff will stay on after the transition period as Association employees.
• Mr. Cunningham referred to the letter of introduction sent to the residents by Legum & Norman which specified payment instructions for condo fees.
Residents’ Comments
• A resident asked for assistance in completing her Legum & Norman information form. Ms. Brantover said she would be happy to help her after the meeting.
• A resident stated that the piping work that needs to be done should be straightforward. Mr. Cunningham noted that the Board needs more information to determine the scope of work and the costs.
• A resident expressed concern over the appearance of the grounds and recommended changing landscaping contractors.
• A resident asked for specific details on the cost of engaging Legum & Norman. Mr. Cunningham replied that the base cost of the management contract is $89,000 which represents a $67,000 net increase in cost. In addition, there is a menu of variable costs, the total cost of which will depend on the extent of services used. He emphasized that residents will be kept fully informed. Mr. Cunningham also stated that the signed L&N contract will be placed in the management office, as are all other contracts, for resident review.
• A resident expressed her opinion that the owners did not have sufficient input into the decision to select an outside management company. Mr. Cunningham responded that there had been a series of meetings at which residents had had an opportunity to speak.
• A resident asked for details about the employees’ exit packages. Mr. Cunningham explained that detailed personnel information cannot be shared in open session.
• A member of the Energy Conservation Committee expressed frustration that a decision on replacing doors and windows has not been made. The Board asked for time to review the recommendations of the committee, which were submitted this evening.
• A resident suggested that the Association present engraved plaques to the departing employees to show its appreciation for the fine work they have done.
Next Meeting
The next meeting of the Board of Directors will be held on July 21, 2009.
There being no further business brought before the Board, the President adjourned the meeting at about 9:20pm.
The initial draft of the minutes, upon which these minutes are based, was prepared by Martha Morris.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
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