THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting August 15, 2011
Board Present:
Charles Bressler ...................Vice President
Molly Frantz ........................Treasurer
Ilo-Mai Harding ...................Secretary
Judith Barth .........................Director
Alfred Muller ........................Director
Board Absent:
Seth Levine ..........................President
Others Present:
Lisa Kelly ...................Legum & Norman
James M. Santos .........ECA General Manager
Jana Bowcut ...............ECA Recording Secretary, On the Record
Call to Order: Mr. Bressler called the meeting to order at 7:31 p.m.
Approval of Minutes:
The following motions were made with regard to the June 23, 2011 regular meeting minutes:
MOTION Dr. Muller moved, Ms. Barth seconded to approve a change on page 5 regarding workman’s compensation. The motion should state that the proposal from the John Manougian Insurance Agency was accepted at a cost of $7989. The other insurance proposal considered was for $7960. The motion passed unanimously (5-0-0).
MOTION Ms. Frantz moved, Dr. Muller seconded to amend the motion concerning APPI to authorize Legum and Norman to share electricity information with APPI. The motion passed unanimously (5-0-0).
MOTION Ms. Frantz moved, Dr. Muller seconded to amend a motion regarding document shredding and should read: “Dr. Cockburn moved, Mr. Bressler seconded to accept the proposal from GMR for $686 to shred outdated ECA documents as identified by Mr. Santos.” The motion passed unanimously (5-0-0).
MOTION Ms. Frantz moved, Dr. Muller seconded to amend a motion on page 6 to read: “Ms. Frantz moved to reaffirm the e-mail approval of the replacement of the high and low zone circulating pumps for domestic hot water by the Denzel Company at a cost of $9,326.00.” The motion passed unanimously (5-0-0).
MOTION Ms. Frantz moved, Dr. Muller seconded to include the cost of $929.96 to Odyssey Restoration. The motion passed unanimously (5-0-0).
MOTION Dr. Muller moved, Mr. Bressler seconded to approve the June 23, 2011 regular meeting minutes. The motion passed unanimously (5-0-0).
The following changes were made with regard to the July 18, 2011 regular meeting minutes:
Dr. Muller inquired about the accuracy of the treasurer’s report with regard to the budget being exceeded by $61,000. Ms. Frantz stated that she would review this.
MOTION Ms. Frantz moved, Dr. Muller seconded to amend a motion to read: ”Ms. Frantz moved, Dr. Muller seconded to approve the DeLeon and Stang proposal to develop a cost basis adjustment letter at a maximum cost of $2000.” The motion passed unanimously.
MOTION Ms. Frantz moved, Mr. Bressler seconded to include the names of the two terminated contracts, and to include the name of the Unifirst Uniform company. The motion passed with one objection by Dr. Muller (4-0-1)
MOTION Dr. Muller moved, Mr. Bressler seconded to approve the July 18, 2011 regular meeting minutes as amended. The motion passed unanimously (5-0-0).
Mr. Santos stated that he will make all corrections to the two sets of meeting minutes and will then give to the Secretary for signature.
President’s Report:
No Report.
Treasurer’s Report: Ms. Frantz read the following report:
I do not have any expenditure data to share with you tonight, as the preliminary July financials will not be prepared and shared by L&N until the FY 2011 financials are finalized. They are expected to be finalized this month.
DeLeon & Stang, our auditor, will initiate the FY 2011 Audit with three days at the Elizabeth starting Monday, September 19, 2011.
The end is in sight regarding our biggest outstanding delinquency. The property went to auction this month. There is a 60 to 90 day build-in delay for settlement to allow the delinquent owner the opportunity to settle his account with the bank. Once settlement occurs, we will know if the Association will recoup any of the debt owed and how much we will have to write off. The “current” amount owed the ECA is $36,275.88. This amount constitutes 52% of the amount owed the Elizabeth by delinquent owners as of August 9, 2011.
Our General Manager and Assistant General Manager are to be commended for their continuing success in collecting outstanding work order delinquencies. The current outstanding balance is $607.50, down from $830.50 last month.
In July I asked L&N to prepare a report indicating who received delinquency late notices. Over the past two fiscal years, L&N has sent out 649 late notices, 357 end-of-month balance due notices, and 21 demand for payment of delinquent account letters with a billed expense to the Elizabeth that appears to be $10,104. This topic will be addressed under New Business tonight.
L&N failed to increase the amount of assessments to be transferred into the Reserve Fund account in July beyond the FY 2011 monthly amount of $82,655. A second payment of $36,350.83 was transferred on August 1 and the August transfer of $119,195.83 was received on August 5. I just discovered that the sum of the two payments for July exceeds the amount of the August payment and have asked Lisa Kelly to look into this.
Ms. Frantz also indicated that she has submitted a resignation letter to board president, Seth Levine. Ms. Frantz read the letter to all meeting attendees, which indicated that her resignation was effective at the close of the board meeting.
Comments from Floor:
-Lisa Kelly introduced herself as the new community manager from Legum and Norman. She stated that she brings 13 years of property management experience and is looking forward to working with the Elizabeth Condominium Association.
-A resident stated that she is not in favor of renewing the contract for website management. She added that the current website is difficult to use and does not provide a mechanism for handling packages.
-A resident read statements from Greg Pearson of Harkins Builders and Lester Hunckley, a licensed engineer, regarding deteriorating concrete in the garage. The G1 level ceiling and some concrete on the G4 level have structural deficiencies. Mr. Santos responded that the concrete is failing due to the storing of salt combined with moisture in the eastern section of the garage. Loose concrete has been removed and some preliminary investigations have been done to see the extent of the damage. Mr. Santos is in the process of getting proposals to have the work done. He has involved both Harkins Builders and HBW.
-The same resident expressed concern that focusing on the windows and doors without understanding the possible effects on the HVAC system could be problematic. The resident asked the Board to delay replacing the windows and doors until an integrated plan is in place and the funds are available to do the project.
-Another resident requested that all construction be delayed until an in-depth study of the building’s infrastructure is conducted. The previous Mendoza report was cursory and the Association needs a prioritized list of items to address. Architects and engineers should also be involved in the process. Ms. Barth stated that the Board met with the attorney from Lerch Early, who advised hiring an engineering and architectural firm before the Association goes any further with bank loans and assessments. The Board agrees that work cannot be done until a complete study is conducted and a design is put in place by an architect and engineers. Another resident, who is an economist, stated that any plan should include possible alternatives to know what the trade-offs are.
-A resident suggested that an industrial hygienist also be involved in the planning. She is aware that there is mold in the building, which will have to be addressed.
-Ms. Frantz reminded residents that funds will need to be collected to these future projects. She also suggested that a multi-disciplinary firm be considered, that would include architects and engineers and would be able to address environmental concerns.
MOTION Dr. Muller moved, Mr. Bressler seconded to request Mr. Santos to work with Mr. Ariev, an experienced Elizabeth resident to devise an RFP to be used in developing a comprehensive plan. The motion passed unanimously.
-A resident stated that the proposed contractor guidelines are wordy and difficult to understand. Instead, the resident suggested sending a notice to owners that all contracts with outside contractors must include certain requirements and must be submitted to management before beginning construction. Residents would not be allowed to reserve the elevator until this is submitted.
-Another resident stated that the Association is need of a policy that addresses incidents where neighbors refuse to pay for damage they cause on the property of another neighbor.
-A question was raised about when the board vacancies will be filled. Dr. Muller stated that it will be discussed in the subsequent executive session. Four candidates have submitted desires to serve on the Board.
-A resident inquired if there have been any changes in the percentages required to amend by-laws. Management stated that there are no changes.
Old Business:
1) Contractor guidelines- Ms. Barth stated that management and the insurance company have discussed the need for this document. She added that the original document was written by the Association’s legal counsel in a way to best protect the Association and its owners.
Dr. Muller reviewed some of the feedback received on the guidelines. Issues discussed were:
-The definition of a contractor, and who is covered should be more specific
-Restricting work to 8:00am to 5:00pm should be for only noise-related work
-Concerns about noxious odors
-Changing the term “residents” to “owners”
-Perception that the document was geared more to owners than contractors
-Charging a fee for management’s assistance with building logistics
-Treating all contractors the same regardless of the scope of work
-Owners who are delinquent in their fees should not be given approval to reserve elevators
Management will incorporate all comments from owners and board members by the next meeting.
2) General Manager’s Report-
-Mr. Santos stated that a condominium suffered damage to its kitchen after a February main drain back-up. All bills were submitted and the insurance carrier offered to cover $5200, and given the $5000 deductible, the Board agreed to not submit a claim. Mr. Santos asked that the Board consider a $1200 allowance to the owner to replace the kitchen floor because of damage caused by the staff and plumbing company when snaking the drain. The total cost of the work will be $1500, but only a $1200 allowance is being asked for.
MOTION Mr. Bressler moved, Ms. Barth seconded to accept the $1200 allowance to the owner of Unit #911. The motion was approved unanimously (5-0-0).
-Mr. Santos stated that the current website does have some limitations and would be more user-friendly if management could communicate with residents about packages. The current site also does not archive or track work orders. Mr. Levine was involved in this process. Mr. Santos stated that he will start researching companies.
Mr. Bressler suggested that a slip be placed in residents mailboxes to notify them that they have a package waiting. Ms. Kelly suggested a system of using blank keys in mailboxes to notify residents. Mr. Santos stated that he is wary of touching mailboxes due to Federal restrictions against anyone other than the postal carrier or resident may access the mailbox. Ms. Kelly also suggested using a website and bar code scanner that would send e-mails to owners about packages. However, this requires owners to register on the website. Mr. Santos stated that the office and front desk are now sharing an Outlook calendar for better coordination, and agreed that perhaps a different website might be helpful.
MOTION Dr. Muller moved, Mr. Bressler seconded to approve the resolution on speaking as presented by the Association’s legal counsel, which requires all owner comments to be limited to three minutes, unless the president allows otherwise. The motion passed unanimously.
Committee Reports:
Energy Conservation Committee: The committee solicited and received proposals for determining the extent of mold in the Elizabeth. However, given the discussions about developing a comprehensive plan for the building, the committee will wait on this. This work will also need to be timed correctly with when mold is present in the building, mostly in July and August.
Landscape Committee: The committee is considering some signs to alert dog owners to keep pets off of the landscaping. By next month’s meeting, the committee should have further news about the landscaping master plan. There are a number of plants that need to be replaced, but cannot be done in the summer, and will therefore wait until fall.
Dr. Muller inquired about a notification from Legum and Norman regarding providing written notice to residents, and posting signs with new smoking laws in common areas. Ms. Kelly stated that these are specific to exterior areas, such as playgrounds and pool areas. Mr. Santos stated that some signs are already posted and a sign has been ordered to be placed closer to the swimming pool. Management will identify other areas in need of signs.
Newsletter Committee: Mr. Santos recently met with owners involved with the newsletter, and they are committed to launch it by September 1.
Making a Difference (MAD): Mr. Santos stated that regular pick-up of donations is occurring.
Exercise Committee: Mr. Santos reported that new equipment is on the way. However, with Verizon technicians on strike, cables cannot be installed on the monitors for some of the equipment. Once the equipment is in place, there will be an orientation by trainers to teach residents how to use it.
New Business:
Ms. Frantz stated that she recently received data from Legum and Norman regarding the number of letters sent regarding delinquencies. A demand notice, which warns an owner that the matter will be turned over to legal counsel has a $50 charge, which is charged to the delinquent owner.
However, late notices and end-of-month letters to remind owners that they have not paid, have a $9 charge for each, which the Association pays. Mr. Frantz suggested possibly changing fee procedures and when appropriate, charging these fees to the delinquent owners.
MOTION Ms. Frantz moved, Mr. Bressler seconded for management to research and develop a proposal on how to best collect these fees. The motion passed unanimously.
Adjournment:
The Vice-President adjourned the meeting at 9:24 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.
Respectfully submitted,
Ilo-Mai Harding, Board Secretary
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