The Elizabeth Condominium
Board of Directors’ Meeting – Monday, July 19, 2010
Minutes submitted by: Lauren Powers, Recording Secretary, On the Record
CALL TO ORDER: 7:34 p.m.
ATTENDEES
Present: Alexandra Kielty (President), Dr. Al Muller (Vice President), Molly Frantz (Assistant Treasurer), Charles Bressler (Secretary), Monique Fridell (Treasurer), Seth Levine (Director), Judy Barth (Director), Scott Murdoch (Community Manager), James Santos (Property Manager)
APPROVAL OF PREVIOUS MEETING MINUTES
Motion: Dr. Muller moved to approve the June 21, 2010, minutes as amended. Ms. Fridell seconded the motion. The motion passed (6-0-1) with Ms. Barth abstaining.
Ms. Kielty noted that a copy of the May 5, 2010 Board of Directors’ meeting minutes have not yet been received. Dr. Muller asked that the meeting minutes be corrected before the Board of Directors meeting so that the Board can review it prior to the meeting. Ms. Frantz requested that when the management report is sent to the Board of Directors, that the draft of the final minutes be attached as well.
PRESIDENT’S REPORT
Ms. Kielty thanked Mr. Murdoch for sharing the space at the Carleton for the Board of Directors’ meeting. The refurbishment is moving forward, but there has been some delay for additional electrical outlets and other electronic issues that need to be verified with experts, the need for an air handler in the party room, and issues with the doors. A meeting took place with the design group to review the furnishing proposals. A meeting also took place with the advisory committee. The county has approved the generator. A meeting took placed on July 6, 2010, to review the recommendations of the Mendoza engineering report with the intention to move forward and include some of the projects in the update to the five-year plan.
TREASURER’S REPORT
Ms. Fridell commented that the fiscal year ended on June 30, 2010. The Board has the preliminary fiscal year end statements, which will be refined over the next couple of months once all of the final invoices are received as the auditors review the draft and trial balances. The audited statement will be available in the fall. Based on the preliminary statements, there is a surplus of $110,000.
OLD BUSINESS
Lobby Renovation
Mr. Murdoch reported that the lobby renovation has been delayed to determine how the front and side doors should operate. Additional door operators were added for the ease of access out of the building and into and out of the East and West Towers. This required research in terms of hardware and modification of the entry door design. As a result, the cost increased by $39,000. At this point, the construction project is two weeks behind schedule. Instead of a completion date of August 6, 2010, a completion date of August 20, 2010 has now been set. Mr. Murdoch noted that the Board set a $1.2 million dollar budget withfurnishing/fixtures for the lobby as the final budget item. Therefore, asother expenses grew, that amount available for furnishings would reduce to hold the same budget. Mr. Murdoch requested that the Board advise how to proceed with the furnishing/fixture budget, because only $232,000 was now available.
Motion: Ms. Frantz made a motion to set the furniture budget to $350,000 and that the artificial cap of $1.2 million for refurbishment be dispensed with. Mr. Levine seconded the motion. Following extensive discussion provided below, and an amendment to the motion made by Dr. Muller, the motion passed (6-1-0).
Ms. Frantz requested that the property managers provide an account of all refurbishment costs so that the Board knows exactly how much money has been spent. A discussion ensued regarding the amount of money planned to be spent on furniture and fixtures. Ms. Frantz indicated that the figure of $350,000 was the amount she understood to be the HDG working budget for furniture and fixtures as expressed at a recent meeting with HDG staff. Ms. Fridell noted that on pages 2 to 4 of the Year-to-Date Financial report those figures are reported and $1.1 million has been spent already. Monique stated that no matter how expenditure items are moved around, the fact is that all of the money will still be coming out of the reserve fund. Ms. Fridell reported that if $300,000 is spent on furniture, then the total will come to $1.207 million, and the refurbishment would be $7,000 over budget. Ms. Kielty commented that at this point a meeting has taken place with the design group, the designers have worked hard to put together cost effective pieces, and it is not fair to the designers or those involved in working on the lobby to have an unclear budget, when the budget had previously been established for $300,000. Ms. Fridell expressed her belief that ECA ought to stay within the allocated budget in order to have money available for other projects, for example, those recommended in the Mendoza report. Ms. Barth recommended that the money received from the sales of the old furniture be moved into the furniture budget. Ms. Kielty acknowledged that, despite the increased budgeted amount for furniture, every effort will be made to spend $300,000 or less on the furnishings.
Motion: Dr. Muller moved to amend Ms. Frantz motion to move the security upgrades out of the refurbishment budget and place that amount, $39,427.50, in a separate category called “security upgrades” to restore availability of contingency funds in the refurbishing budget. He also moved that the money to be spent on doors (FOBS, frames), $7,533.75, be moved out of the refurbishment budget. The total amount to be moved out of the refurbishment budget would be $46,961.25. Mr. Levine seconded the motion. The motion passed (4-3-0).
Motion: Ms. Barth made a motion to increase the furniture budget by $3,276.00, the same amount received from the sales of the old furniture. Dr. Muller seconded the motion. The motion passed unanimously (7-0-0).
Access Control Project
Mr. Santos has been overseeing the Access Control project and provided Board members with a comparison of all bids received to date for this project. Ms. Kielty noted that this project relates to changing from access keys to a FOB system. Mr. Santos and the Board reviewed terms of each proposed contract and individual contractor specifications. It was noted that all of the contractors need 2-4 weeks after the contract approval to order materials, and each contractor has a time frame of 4 weeks to install all of the equipment. Mr. Murdoch noted that ESSI is the contractor used by the Carleton for its camera and FOB system, stating that the Carleton Association has been satisfied with the service provided by ESSI.
Motion: Dr. Muller moved to accept the ESSI (Electronic Security Services, Inc. of Upper Marlboro, MD) contract door access control of common area doors. The contract is in the amount of $73,994.00. It includes all equipment, software, installation, training and two-year warranty. Mr. Bressler seconded the motion. The motion passed unanimously (7-0-0).
Engineering Study
Mr. Murdoch reported that he and Mr. Santos attended a meeting on July 6, 2010, with the structural engineer which performed the structural analysis of the building for the Mendoza report. During the meeting they discussed two immediate projects, the refrigerant recovery system for the boiler/chiller room and the winterizing of the cooling towers to utilize the heating and cooling system to its fullest capacity. It was recommended that a company open up the boilers to examine their condition. A more detailed comprehensive report on structural issues will be available soon.
Emergency Generator
Mr. Murdoch reported that the permit was awarded and the project started July 19. A second organizational meeting will take place on July 21. There were a number of changes that the County required which added an additional $20,000 to the cost of the project. Mr. Murdoch noted that there is still the construction of the fuel tank enclosure and structural features that will add to the cost of the project but those costs have not been finalized yet.
Website
Mr. Murdoch recommended that the Board consider using athome.net to host the Association’s website. He reported that athome.net offers more features, and has the same or better capability than other products/software he and Mr. Levine analyzed. He also noted that other communities he manages use Association Voice and he considered that athome.net is more user-friendly. Mr. Murdoch asked the Board members to submit pictures to be posted on the website.
Motion: Mr. Levine moved to use athome.net to host the website at a cost/month of $65.00 and a one-time cost of $125.00. Ms. Frantz seconded the motion. The motion passed unanimously (7-0-0).
HDG Contract Addendum
Ms. Kielty reported that an addendum to the current contract has been received from the Hartman Design Group. She stated that the addendum identifies different areas for future renovation consideration (i.e., resident corridors, east/west towers, fitness center, courtroom adjacent to the pool, garage lobbies, fitness center bathrooms) and provides the legal framework for an agreement agreement for the second phase of the refurbishment project which will be ready whenever the Board is ready to move forward with the next phase of the project. The scope of the work, timing, and commencement of each phase would be determined by the Board of Directors.
NEW BUSINESS
Party Room Air Handler
Mr. Murdoch reported that the party room air handler needs to be replaced. This will involve some demolition and reconstruction of the hallway walls. A bid from HBW has been received to replace the air handler for $27,000. Mr. Santos is working to get a second proposal. It was noted that the project requires a five week lead time. Mr. Murdoch recommended expediting a decision because the work will impact other projects such as the renovation of the hallway.
Motion: Ms. Frantz made a motion to give Scott Murdoch and James Santos the discretion to select a vendor, based on a pre-authorized budget limit of $28,000. Ms. Barth seconded the motion. The motion passed unanimously (7-0-0).
Dr. Muller asked that Mr. Murdoch and Mr. Santos report to the Board if the air handler cost turns out to be more expensive. Mr. Murdoch noted that there is a possibility that a larger unit would be needed and that would therefore be more expensive. He assured the Board that he would communicate to them if another approval is required.
In-Unit Contractor Issues
Mr. Santos askedthe Board for support in recommending a policy to issue to residents that each resident submit the name of their contractor and proof of that contractor’s insurance and license when work is performed in the building.
Motion: Dr. Muller made a motion that Mr. Santos draft a policy to be reviewed by the legal counsel and copied to the Board. Ms. Barth seconded the motion. The motion passed unanimously (7-0-0).
Other New Business
Dr. Muller noted that four of the trees outside the lobby have died. Mr. Santos acknowledged that the evergreens that were in the planter box had outgrown the planter box and died as a result of not being watered enough.
Dr. Muller noted that there may be leasing or renting occurring within the building that is in violation of the By-Laws and House Rules. Mr. Santos reported that there was indeed an apartment which appeared to be in violation due to over-occupation of the living space.
Ms. Frantz discussed the energy management and monitoring software system recommended by Mendoza and L&N management and whether that ought to be taken into consideration during the refurbishment of the lobby level. Mr. Santos responded that the renovation is already taking this monitoring system into account. For example, thermostats will be installed in the lobby that have the ability and flexibility to communicate with any future energy management system. However, the latter will not be considered until the boiler/chiller status is resolved.
Ms. Frantz inquired about the status of the pool contract. Mr. Santos stated that he is consulting with other pool companies to obtain a contract/service comparison. The current pool contractor has already proposed a contract for the next season with no cost increase. Ms. Frantz also asked about the pool filtration system. Mr. Santos reported that the current filter system is 20 years old and should be replaced in the near term, but it is currently functioning fine.
Ms. Barth asked if there was any report back regarding window leaks after severe rain. Mr. Santos said that he will receive an update at the next construction meeting regarding the exterior of the building. All three canopies on the glass atrium need to be resealed to prevent leaks.
Dr. Muller noted the proposal for the elevators (replacing hoist way motors on passenger cars-4 and upgrades to the mechanical equipment of the passenger car doors). Mr. Santos responded that it does not require an action item for tonight’s Board meeting; however, these proposed projects are for improving elevator operation and eliminating potential equipment failures due to age of the equipment. This could be added to the long-term capital improvement budget.
Ms. Barth asked whether a firm has inspected the premises for environmental hazards such as mold and mildew. Mr. Santos responded that there is no mold, but some mildew. HBW, at the Board’s request, subcontracted this task to Environmental Science, which will perform air quality tests in the party room and areas in the west lobby. However, those tests cannot be performed until the renovation is finished because of open windows and construction debris. The cost will be discussed at the construction meeting.
Mr. Santos also discussed the need for the fire extinguishers to be replaced because their technology expired and building code required them to be eliminated. He also suggested that management perform mailings to residents updating them on a regular basis. Mr. Santos requested approval of the lease agreement for the postal metering machine, costing $596.00 a year.
Motion: Ms. Barth moved to approve the lease agreement from Pitney Bowes for postal machine in Management Office for $596.00 annually. Mr. Frantz seconded the motion. The motion passed unanimously (7-0-0).
Mr. Santos also recommended the cleaning of the kitchen drain lines by hydro-jet machine from roof vents for $3,550.00. The contractor selected is J.P. Seworooter.
Motion: Dr. Muller moved to approve the cleaning of kitchen drain lines for $3,550.00 made payable to J.P. Seworooter. Ms. Barth seconded the motion. The motion passed unanimously (7-0-0).
COMMITTEE REPORTS
Landscape Committee
Ms. Kielty thanked Mr. Jim Rich for volunteering to lead the landscape committee. Mr. Rich asked for additional volunteers for that committee.
Energy Conservation Committee
Joan Rosenbach reported that the Energy Conservation Committee met on July 15. Mr. Santos also attended the meeting. The group reviewed a chart which prioritized the findings of the Mendoza report, ranking the condition of mechanical and structural components of the condominium from very poor to very good working condition. The Mendoza report acknowledged the need to conduct an environmental inspection due to existing mold and mildew problems. Individual owners have impacted energy conservation and cost savings through the installation of toilets that use less water per flush, showerheads that have flow restrictors, and aerators in faucets. The Committee will continue to post energy-saving suggestions in the elevators. Suggestions for future activities include tracking degree-days, resident education activities, a recycling workshop, energy conservation messages in the newsletter, and another energy fair. Bethesda Magazine requested submissions for its Green Awards. Following approval from the Board, Joan submitted an entry form on the Association’s accomplishments as of July 16.
Refurbishment Committee
Ms. Barth reported that the Refurbishment Committee and Advisory Committee had two excellent meetings to preview the furniture with the Hartman Design Group. The furniture will be custom made and is very attractive. Ms. Barth stated that there are many beautiful fabrics, woods, and finishes that have been selected for the furniture. The refurbishment committee hopes to have within six weeks a board posted in the lobby comprised of pictures of the new furniture and fabrics. Ms. Kielty read a description of the new furnishings written by Sharon Bobb (Member of the Advisory Committee), stating how much she liked the new furniture and furnishings.
Social Committee
Ms. Barth reported that due to the renovation, no social events have been sponsored during the summer. The committee will try to plan a holiday event and a housewarming party so that everyone can toast the new renovation and lobby once it is completed.
Fitness Committee
Ms. Kielty reported that the fitness committee meeting has been postponed.
COMMENTS FROM THE FLOOR
One resident commended ECA Engineer Earl Kelly for his superb performance in a recent event that involved a resident who entered the garage without a code and tried to follow someone into the garage unsuccessfully. Mr. Kelly responded immediately to find the vehicle and the police came and addressed the issue.
A resident asked whether the keys to the front entrance and the fitness room would remain the same. Mr. Santos responded that the access control project will eliminate all of the common area keys; a FOB will replace common area keys.
Another resident asked whether there would still be an automatic door opener in the front of the building. Ms. Santos reported that in order to gain access with the handicapped button, the FOB key will be used to unlock the door and then the button can be pressed to be open the doors.
The meeting was adjourned at 10:05 p.m.
Respectfully submitted,
_____________________________________
Charles Bressler, Board Secretary
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