November 29, 2010
Dear Owners/Residents:
A petition is currently being circulated within the Elizabeth that contains a number of erroneous statements to which, as President of the Board, I feel compelled to respond. The petition opens by stating that the Elizabeth Condominium Association (ECA) “faces a dire financial situation". This statement is not only a complete mischaracterization of the Association’s financial position, but also an attack on the integrity of the Board of Directors in fulfilling its fiduciary responsibility.
In every Board meeting, an update is provided on the overall financial status of ECA, as well as on all major project costs, including refurbishment. The petition erroneously states that “…. an additional large sum will …be required for furniture and artwork” in addition to estimated refurbishment costs of $1.3 million. Let me clarify again that the estimated total of $1.3 million is inclusive of furniture, fixtures and artwork, and no additional costs are anticipated. Further, total costs include a number of change orders for structural enhancements (e.g., new windows and doors throughout the lobby area, and a new air handling unit for the party room) that are part of the necessary rehabilitation of our aging structure and considered advisable to replace while construction was underway.
Regarding the refurbishment process referenced in the petition, residents should not forget that a three-person Refurbishment Committee and a four-person Advisory Committee were appointed by then President, Woody Cunningham. In addition, all current Board Directors are part of the refurbishment decision-making process. No major decisions have been or will be made without input from all of these individuals. The established practice of holding meetings and briefings throughout each stage of the refurbishment and this practice will continue.
The petition also implies that the Board is not giving adequate attention and priority to critical infrastructure work. Quite the contrary, the Board recognizes that the Elizabeth is over 35 years of age and has many infrastructure and mechanical issues. In 2008, for the first time in memory, your Board hired an independent firm, Reserve Advisors, to review replacement costs for various components of common elements and advise us on a recommended amount of reserve funds needed for both short and long-term projects. As a result of their recommendations, we raised condo fees to meet the recommended funding requirement of $712,500, which was included in the 2010 budget. The Board then went one step further by hiring Mendoza, Ribas, Farinas & Associates to analyze the current condition of equipment slated for replacement in the next five years.
The replacement of the emergency generator was undertaken by the Board and is an example of a substantial contribution to the revitalization of the infrastructure which increases the safety of our residents. The refurbishment of the lobby level of the Elizabeth is another important visible step forward as we go about updating our homes, our most significant asset, and the foundation of our day-to-day living. Nevertheless, though the financial condition of the Association is strong, there will be difficult decisions in the months and years ahead to address additional major replacement needs. Specifically, these include the replacement of windows and balcony doors, heat and air handlers (McQuay units), and refurbishment of East and West tower hallways.
All discussions of ECA business are held in open meetings and the Board will continue its practice of transparency with regard to the budgeting, planning, and prioritizing of “reserve projects”. As you know, the Five Year Plan is the primary planning tool for all reserve funded projects and incorporates all the various needs identified in the Reserve Study, the Mendoza Report, and the Energy Audit. Currently, your Board is working with Management to obtain specific cost estimates of major future projects in time for a January 2011 working session of the Board that will be open to all residents. That open meeting will enable us to review again the Five Year Plan and determine/update the order, priorities, and funding of specific projects.
It is a given that not everyone will agree with every decision of the Board. The Board itself is not always unanimous in its decisions. This is to be expected in a diverse and interesting community such as the Elizabeth. Nevertheless, because the Board is a body elected by ECA members, it behooves Board members to listen to a variety of points of view before making difficult decisions that involve significant expenditures, and to do so while showing respect for those who may disagree.
If you have any concerns or questions regarding the issues raised in the petition, please do not hesitate to contact me. You may also contact the Board by registering and sending an e-mail on the new Elizabeth website at: www.elizabethcondo.com.
Sincerely,
Alexandra Kielty
President of the Elizabeth Condominium Association
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