November 27, 2013 ECA Board Meeting

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting   November 27, 2012

Board Present:

Ted Ariev                        President

David Robinson..............Vice-President

John McNerney ............  Treasurer

Herman Stekler .............  Asst. Treasurer..................

Ilo-Mai Harding............... Secretary

Steven Schattman ............Director

Board Absent:
Charles Bressler                Director

Others Present:

Bill Perry ..........     .....OutgoingRegional Director, Legum & Norman
Robert Craig ..........     Regional Director, Legum & Norman
Gregory Roby.........    Senior Vice President, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman

Jana Bowcut ...............ECA Recording Secretary, On the Record

On October 23, 2012, in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board met in executive session.

Call to Order:  Mr. Ariev called the meeting to order at 7:33 p.m.

Approval of Meeting Minutes:

MOTION         Mr. Stekler moved, Mr. Schattman seconded that the amended minutes of the meeting of the board of directors on October 23, 2012 be approved.  The motion passed unanimously (6-0-0).  

President’s Report: No Board meeting will be held in December. The next meeting will be held on January 22, 2013. Residents are needed to assist with setting up an employee holiday fund. A successful Halloween party was held, as well as a reception for new residents.  Mr. Ariev thanked Ms. Powell for her assistance with the party.  

The Board previously approved a proposal from Virginia Sprinkler Company, but will need to be voted on in open session.  Mr. Santos will address this further in his report.  

Treasurer’s Report: The following report was provided by Mr. McNerney:

The amounts included herein are rounded to the nearest $1,000. As of 31 October, the Association had $2,877,000 in cash and investments, an increase of $70,000 from the prior month.

The Replacement Reserve Fund at the end of October was $2,400,000, an increase of $106,000 from the prior month.

Expenditures from the Reserve Fund in October totaled $18,000. The amount expended from that fund so far this fiscal year is $75,000.

Delinquencies through the end of October were $62,000. Seven accounts are in collection, including two that are in bankruptcy.

Copies of the balance sheet and statement of income and expenses as of 31 October are available at the front desk.

Old Business:

MOTION        Ms. Harding moved, Mr. Schattman seconded to approve the proposal from Virginia Sprinkler Company for $7,118. The motion passed unanimously (6-0-0).  

New Business:

1) Investment of maturing CDs: There are two CDs that need to be renewed by November 30: one for $200,000 and another for $125,000.  Given that ECA may need the funds in the near future, the CDs should be for a short time period. Morgan Stanley offers short term CDs for about the same interest rate. There are also funds in the operating reserve that exceed the FDIC standard by $390,000, which should also be moved.

MOTION        Mr. Ariev moved, Mr. Stekler seconded to reinvest the funds into four separate six month CDs in the amounts of: $250,000, $200,000, $125,000 and $140,000. The motion passed unanimously (6-0-0). 

2) Contract renewal with Otis Elevator: The motor work has been suspended until after the holidays. The contract was up for renewal in March 2012, but Otis gave ECA until March 2013 to renew. Otis is offering a discount of more than 10 percent the face value of the contract. Mr. Roby stated that it is preferable to have the manufacturer of the elevator equipment be the service provider. Mr. Ariev opened the floor for discussion; Dr. Muller expressed concern about whether Otis has done an adequate job in the past.

MOTION        Mr. Ariev moved, Mr. Stekler seconded to approve a contract renewal with Otis Elevator for elevator maintenance at a cost of $32,000 per year for five years. The motion passed unanimously (6-0-0).

3) Wiss Janney, Elstner design/supervision services:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Wiss, Janney and Elstner to perform design services and construction supervision services for installation of roof anchor system, for the amount of $15,000, which includes reimbursable expenses. The motion passed unanimously (6-0-0).

MOTION        Mr. Schattman moved, Mr. Stekler seconded to authorize Wiss, Janney & Elstner to perform design services and construction supervision services for condominium window replacement, sliding glass door replacement, balcony deck modifications and limited façade maintenance in accordance with tier proposal dated November 9, 2012 for $315,000 which includes allowance for reimbursable expenses at each phase of contract and an estimate for construction period services. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize Wiss, Janney and Elstner to perform general design services and construction supervision services for any future projects relating to the July 2012 condition assessment or issues encountered during annual operations. All services will be provided on a time and expense basis using the standard rate schedule for WJE professional staff . The motion passed unanimously (6-0-0).

4) Mendoza services:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas and Associates Consulting Engineers to provide mechanical, plumbing and electrical engineering services as requested by the Board or Management as needed. All services will be provided on a time and expense basis using the standard rate schedule for MRF&A professional staff. The motion passed unanimously (6-0-0).  

MOTION        Mr. Ariev, moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for New Garage Ventilation Fans and Carbon Monoxide Detection System for the amount of $17,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of all existing roof fan assemblies, in the amount of $16,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of existing York Chiller with associated condenser and chilled water pumps, in the amount of $35,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Ms. Harding seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of low zone water pumps and hot water recirculating pumps, in the amount of $13,000. The motion passed unanimously (6-0-0).   

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of a sump pump and sewage ejector pump, in the amount of $8,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of existing fire alarm control panel, annuciator panel, and all devices as well as integration with Arcade business spaces, for the amount of $31,000. The motion passed unanimously (6-0-0).

MOTION         Mr. Ariev moved, Mr. Stekler seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for installation of refrigerant evacuation system, new compressor controls and ventilation for penthouse mechanical room, for the amount of $7,000. The motion passed unanimously (6-0-0).

5) Roof repairs:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Weatherproofing Technologies, inc. to perform roof repairs indentified from engineer condition assessment and management inspection for the amount of $9,650. The motion passed unanimously (6-0-0).  

6) Sign Installation: One of the condominium commercial owners in the building, ASAM, has requested the installation of a small directional sign to hang on common area wall on the first floor to direct visitors. This would be done at their own expense.

MOTION        Mr. Ariev moved, Mr. Schattman seconded
 tabling the issue until board members could survey the exact area before voting. The motion passed unanimously (6-0-0).

7)  Fund Authorization for Social Committee:

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize the social committee to use $6000 for the annual holiday party on December 16, 2012. This falls within the approved annual budget for this activity. The motion passed unanimously (6-0-0).  

8) Travel Expenses: Mr. Santos read the following new policy:

It is the policy of the Elizabeth Condominium Association that, effective November 27, 2102, residents and staff who incur transportation costs on behalf of the Elizabeth shall be reimbursed. Public transportation will be reimbursed on the basis of the actual cost incurred. Reimbursement for the use of personal vehicles will be at the current adjusted Federal vehicle mileage rate, in addition to actual parking, tolls and other costs.

To receive reimbursement, residents and staff will submit a completed Expense Report form, available at the Management office, to the General Manager.

9) Other Items: Mr. Santos stated that management contacted the Public Service Commission (PSC) regarding management’s rebuttal letter. PSC is to contact Washington Gas for a response. A project involving securing Verizon fiber optic cables is completed. If there are any Ecobeco needs, residents should inform Mr. Santos or Ms. Powell.  

Community Manager’s Report: Mr. Roby complimented the Board and the Association on the approval of so many projects. Mr. Roby also announced that Mr. Perry will be leaving Legum and Norman, and Mr. Robert Craig will be replacing him. He also thanked Mr. Santos for his work. Mr. McNerney thanked Mr. Perry, as he has been his contact for financial reports, and he has been very responsive and helpful.

Committee Reports:

Making a Difference: Peg Downey reported that the wrapping paper party with the children was a success. She invited residents to come on Saturday for the box party to help fill and wrap boxes.  

Personnel Handbooks: Dr. Robinson stated that the position descriptions have been approved by the Board. An employee handbook is in progress. 

Social committee: The recent Halloween party was a great success with about 40 children in attendance along with their parents. A wine and cheese party for new residents was held on November 11.  The holiday party will be held on Dec. 16, which is for residents only. 2013events are in the planning stages.

Resident Comments:

-Judy Gann asked when the red hair salon signs will be addressed. Mr. Ariev responded that the Board will be discussing the more general sign issue.  

-Molly Frantz inquired about damage done to the building from the hurricane. Mr. Santos stated that one apartment on the 18^th floor had the most damage. Sandbags were used to prevent water damage, and about 2 dozen apartments had water intrusion around their windows.  

-A resident expressed concern about the change in by-laws. Mr. Ariev stated that Mr. Bressler held a gathering, with less than 10 non-resident owners attending. Early in the spring, there will be a special meeting to address the by-law amendments.  

-Dr. Muller congratulated the Board on its success. However, he expressed concern about the need for a bank loan, and asked Mr. Roby what he has advised other condominium associations with regard to a minimum of reserves to have on hand. Mr. Roby stated that it varies on the building, but an association should have enough money in the bank to cover complete replacement of major systems. Typically, for a $6 million operational budget, treasurers aim to keep reserves above $1.2 million. Dr. Muller expressed concern that according to the financial summary that reserves dipped way below that amount, in future years, and that the Board needs to ensure a good safety net.  

-Maurice Trebach stated that proxies cannot be accepted in changing the by-laws. Mr. Ariev stated that the attorney has advised ECA that proxies will be acceptable, but he will check with the attorney again.  

-A resident recommended that the budget of every committee should be widely known, and she was opposed to having signs up in the hallways.

Adjournment:

The President adjourned the meeting at 9:00 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