Monday, July 30, 2012

Minutes of June 2012 ECA Board Mtg.


THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815

Minutes of Board of Directors Meeting  June 26, 2012

Board Present:
Ted Ariev                               President
David Robinson...............Vice-President
John McNerney ............Treasurer
Ilo-Mai Harding................Secretary
Charles Bressler                  Director
Steven Schattman ............Director

Absent:           
Herman Stekler .............Asst. Treasurer..................

Others Present:
Bill Perry                   Regional Director, Legum & Norman
Gregory Roby ............ Senior Community Manager, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman
Jana Bowcut ...............ECA Recording Secretary, On the Record

On May 30, 2012, in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board met in executive session.

Call to OrderMr. Ariev called the meeting to order at 7:35 p.m.

Approval of Meeting Minutes:

MOTION         Dr. Robinson moved that the minutes of the meeting of the BOD on May 30, 2012 be approved as presented. Mr. Schattman seconded the motion. The motion passed unanimously (6-0-0). 

President’s Report: Mr. Ariev reported that Mr. Santos has turned off key fob access to the guest parking access in order to better secure the building. Some residents were giving key fobs to visitors, which was limiting the availability of visitor parking in the garage. Management has again adopted the procedure outlined in the by-laws; guests must get an access code from the front desk in order to drive into the garage.

Mr. Ariev also stated that residents cannot have a visitor come into the building unless the concierge knows that the person in the apartment is ready and present to receive them. Management recognizes that residents’ communication with the front desk can be improved, and will be within the next one to two years. 

Management responded to the Board’s request to have trash removed from the garage. Management has worked on this and communicated the issues to residents in violation. There is currently a serious violation in space 335, and management has developed a plan with the residents about how it will be removed. The residents are moving out of the building by the end of next week. They communicated to management that they knew this was a violation, and tried to put their boxes in storage, but there was not adequate storage space for all residents.

Mr. Ariev reported that the Board is working to prepare a personnel manual so that rules remain constant even after there are staff changes. Sharon Bobb and David Robinson have been asked to put the manual together to define the obligations of the Elizabeth to its employees and vice versa. Ms. Bobb has a great deal of experience, and the Board will be looking for other talented residents in the building to help with various projects.  

Mr. Ariev explained that in order to better define and archive actions taken in board meetings, motions will be taken in detail and put in writing. Committee reports will also be put in writing and archived.

Treasurer’s Report: Mr. McNerney provided the following report:
The amounts included herein are rounded to the nearest $1,000.

As of 31 May, the Association has $2,352,000 in cash and investments, an increase of $59,000 from the prior month.

The Replacement Reserve Fund at the end of April was $1,874,000, an increase of $40,000 from the prior month. Net increase of the Reserve Fund (contributions plus interest minus expenditures) for the 11 months ending 31 May is $956,000.

Delinquencies through the end of April increased by $7,000 to $51,000 total. Five accounts are in collection.

Homeowners may adjust the cost basis of their homes using some of the Reserve expenditures incurred by the Association. This could result in limiting tax liability upon sale of the home. In January, our accountants prepared a cost basis adjustment letter for the ECA. Copies of that letter are available at the management office.

In February, our auditors prepared a letter concerning our internal controls. They did not identify any deficiencies in internal control considered to be material weaknesses. Copies of that letter are also available at the management office.

Copies of the Balance Sheet and Statement of Income and Expenses as of 31 May are available at the front desk.  

Management Report: Mr. Perry stated that as of May 31, 2012, the Association had an operating deficit of $9,699, with a surplus of $10, 974 projected; this gives an unfavorable variance of $23,673. Year to date, there is an operating deficit of $19,995, against a projected budget surplus of $34,381, giving an unfavorable variance of $54,286. The variance is 1.3% of the budget, which is not considered significant.

Mr. Ariev provided an update on the maintenance repair project. The field work is almost complete, except for further water piping testing, scheduled to be done June 17. Pepco also needs to be involved to check the electric switch gear. Dr. Robinson, Mr. Santos and Mr. Ariev have met with engineers and the architect many times. Reports have been received, but were much more detailed than anticipated. The engineers will make a thorough and complete executive summary and will prepare a Powerpoint presentation. The reports will be distributed and available by July 16th. The Board will receive full reports, and residents can access them in the management office. 

MOTION        In order to better inform the residents, Mr. Ariev moved to authorize additional services be provided by Wiss, Janney, Elstner Associates, Inc., to include the preparation of an Executive Summary for distribution to the residents, and a “Power Point” presentation before the Board and residents. Compensation for these services will be on a time and expense basis not to exceed $5,000, in accordance with the terms of the agreement to prepare a Condition Assessment dated January 12, 2012.  Mr. Bressler seconded the motion. Residents were invited to comment.

A resident inquired why the engineering company, who already prepared a report, could not present the findings free of charge. Mr. Schattman also inquired why the engineering company should be paid again, as he should have done a summary already. Mr. Ariev responded that the Board has been careful in defining the scope of the work, and this is not excessive. This summary will be put in a format that is useful to residents.

The motion passed, with Mr. McNerney and Mr. Schattman opposed (4-2-0).

Mr. Santos provided the following management report:
·       Elevator hoist motors will be replaced in July, which will require some elevator down time.
·       Pressure washing will be done in the garage, and a schedule will be posted in the elevators.
·       The current work order delinquency totals $774.50, of which $436.00 is over 60 days. Ms. Powell works diligently on lowering this. The architect has been looking at other projects such as the swimming pool, which is on the schedule for renovation.
·       Management will assist with the plan and procedure of writing resolutions in advance of board meetings.
·       2013 coupons have been distributed. Direct debit will adjust itself in July to incorporate the 3% increase in assessments. Legum and Norman accepts credit card payments online.
·       The ECA website is now running and was rebuilt, with Associa as the host. Stock photos were used, so any photos residents could contribute would be appreciated.  

Committee reports:

Personnel Manual: Dr. Robinson stated that he has been supporting Ms. Bobb with position description review for developing the personnel manual. Once complete, the manual will be provided to individual employees to make certain that they reflect their job description. The manual is not meant to be a description of current employees, but a roadmap of what is needed in the future. The manual will conform to the appropriate Maryland wage and labor acts, and should take several months to complete.  
Social Committee: Mr. Ariev stated that Judith Barth has agreed to chair the committee. Upcoming events are: October 21, Sunday kick-off brunch; October 31, Halloween party; December 16, holiday party.

By-Law Amendment Committee: Mr. Bressler stated that working to obtain a 75% vote to change the by-laws from a required vote of 75% to 66 2/3% will not be easy. Karren Alenier will assist Mr. Bressler in this effort.

Floor Reps: Floor representative are present on each floor to welcome residents, and be helpful and monitor trash rooms. With residents from around the world, it would be helpful to know what languages people speak, in order to reach out and help others.

Landscape Committee: The committee met last Thursday and took a tour of all garden areas to see how plantings are thriving. The committee noticed that plants on the east terrace have not been watered for 2 weeks, and the automatic irrigation should be turned on. Many cigarette butts are discarded in the garden area on the east side, and the committee is contemplating how to address it. The committee also discussed the mission statement and will work on drafting one. Furniture for the terrace areas was also discussed, and the committee asked the Board to consider using the $10,000 of remaining funds for furniture.   

Energy Committee: The committee has investigated a new program under the Empower Maryland Act, where the Association could obtain free services from a Pepco contractor. On June 15, the committee met with EcoBeco who would install energy saving devices in each condominium. There are other contractors, and the committee is researching the different ones. The Elizabeth could incur substantial savings from each unit installing CFLs, smart power strips and aerators.  

Residents Comments:
-Rita Miller, Unit 607, expressed concern about cigarette smoke coming through her windows when she opens them. She would like the Elizabeth to be a smoke free building and would like the Board to discuss this in the future.  

-Molly Frantz, Unit 1007, asked if a letter about new condominium fees will be sent to those residents who use automatic withdrawal. Mr. Roby responded that he will inquire about this. Those residents who are not on the direct debit plan receive coupon books.

-Maurice Trebach, Unit 1407, inquired if more research had been done on installing solar panels on the roof. Mr. Santos responded that this has been discussed with the engineers and should be explored more. Mr. Santos will continue to pursue contractor alternatives.  

-Tobi Esler, Unit 1206, asked if it would be possible to have a bell at the front desk in case a concierge is busy in the package room. Ms. Esler also stated that requiring the front desk person to buzz in visitors will be problematic since sometimes staff is away from the desk. Mr. Ariev responded that the Board recognizes this issue, but thinks this is needed for additional security. He added that the Board is looking for someone who can work with management to devise a plan for moving people efficiently through the building.

-Helen Davis, Unit 1207, stated that the floor of her balcony is in deplorable condition. She spoke with Mr. Santos last fall and he did see it. The water does not flow out properly because of uneven payment, and puddles in front of the screen doors. Mr. Ariev responded that there are other residents who have a similar problem, and this is a major structural problem. The engineers have reviewed this and will be addressed.  

-Judy Gann, Unit 711, described a loud honking noise on the G2 parking level, possibly coming through the vent. Mr. Santos will try to determine the source.

-Al Muller, Unit 411, thanked the new board for a positive start to their new term. He also expressed appreciation for the new feature where packages are announced by e-mail, and for the work of the landscape committee. He also suggested that the social committee consider two inexpensive wine and cheese activities, which are popular and not very costly. 

-A resident asked about how she should handle cars following in closely behind her through the garage door. Mr. Santos requested that she report the time of the incident to Mr. Santos so he can look at the video to track down the vehicle. Also, cars can stop just inside the door as it comes down to prevent tailing cars.

-Adrienne Vanasco, Unit 1609, expressed concern about cars speeding through the garage and not driving with their lights on. She recommended that management send out an explanation of the rules. Another resident suggested that those individuals who are renting out spaces in the garage should also be notified of the rules.  Ms. Vanasco also asked if management could let residents know about the outcome of fire incidents in the building. Mr. Santos stated that a fire alarm several nights ago was due to a resident leaving something on the stove, and tried to ventilate it by opening the front door of their apartment, which set the alarm off. Management will try to notify residents after such incidents occur.

-Joan Snyder, Unit 1120, expressed concern over the departure of employee, Cynthia Edwards, and how the Elizabeth will treat employees in the future. Mr. Ariev declared that the Elizabeth will always treat employees with respect.  

-A resident stated that it would be helpful to know when a fire alarm, particularly for those residents who have to walk down many flights of stairs. Mr. Ariev stated that upgrades to the system will alert residents to false alarms. When the fire alarm is shut off by the fire department, residents can return to their units.  

Adjournment:
The President adjourned the meeting at 9:02 p.m., with the Board to meet immediately after for an executive session, in concordance with section 11.109.1 of the Maryland Condominium Act.

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

No comments: