ECA Board Minutes January 22, 2013

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting   January 22, 2013

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:

Robert Craig ..........     Regional Director, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman

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

On November 27, 2012, in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board met in executive session to conduct personnel and legal issues.

Call to Order:  Mr. Ariev called the meeting to order at 7:38 p.m.

Approval of Meeting Minutes:

MOTION        Dr. Robinson moved, Ms. Harding seconded that the amended minutes of the meeting of the board of directors on November 27, 2012 be approved.  The motion passed unanimously (6-0-0). 

 

President’s Report:

Mr. Ariev noted that on December 4, 2012, the Board approved by unanimous email assent, a proposal from Sandler Occupational Medicine Associates, inc. (SOMA), dated December 3, 2012, to provide potential mold contamination evaluation of the bedroom and living room in Unit 1812 for a total cost not to exceed $4,380.

Mr. Ariev thanked the social committee and management for a successful holiday party. An informal gathering of about 25-30 residents was also held to watch the inauguration ceremonies. 

On January 8, the Board held a workshop to discuss various issues. On January 13, residents met in the party room for an informal forum to discuss issues raised by residents. The issue of smoking was raised during the workshop, which will be discussed later in this meeting.

Mr. Ariev provided an update of the Maintenance, Repair and Replacement Program. So far, design contracts have been awarded worth about $5-6 million. Over the next 2 months, construction contracts will be awarded worth about $1.5 million, which are mostly for mechanical issues. Wiss, Janney & Elstner  is moving forward with work on the windows, doors and anchoring systems; the work will move quickly over the next 3-4 months, and bids to do the work will be put out in June/July this year. The last outstanding issue in the FY 2013 report is garage repairs. Structural preservation work is needed and more details will be given at the next meeting. The Board is still working on a general reporting system for reporting the status of the work on a continual basis, with regard to schedule and budget. Schedules and status reports will be posted on boards and placed in the lobbies.

The annual meeting and elections will be held on May 1. The Board will be talking with residents to solicit interest about acting as election officials and positions on the Board.  

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 December, the Association had $3,101,000 in cash and investments, an increase of $87,000 from the prior month.

The Replacement Reserve Fund at the end of December was $2,607,000, an increase of $91,000 from the prior month.

Expenditures from the Reserve Fund in December totaled $35,000. The amount expended from that Fund so far this fiscal year is $122,000.

Delinquencies through the end of December were $56,000, an increase of $3,000 from the prior month. 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 December will be available at the front desk.

A finance committee has been formed, consisting of myself as chairman, with Joe Salcetti and Peg Downey as members. We begin preparation of the operating and capital budgets next month, to be presented for a vote of the Board at the April meeting.

The Association will begin bank borrowing this summer to pay for the Maintenance, Repair and replacement Program. Interest on the loan will be at an approximate 4% interest rate.

A supplemental approach to financing could involve financing by owners of the Association, either in the form of pre-paying condominium fees at a lower amount, or by direct loans to the Association at a fixed interest rate. A survey will be distributed to all owners to determine the level of interest in either of these programs.

Management Report:

Mr. Craig noted that in regard to the December financials, there were additional incurred expenses due to Hurricane Sandy repairs, gas accrual was inflated for 46 days and the elevator maintenance contract renewal.

Mr. Santos reported that current work order delinquency totals $1,409.00 of which $870.50 is at or greater than 60 days. He also stated the Board contracted the services of a certified industrial hygienist from Sandler Occupational Medicine Association (SOMA) to investigate air quality in a condominium unit. Lab results are pending.  

Old Business:

MOTION        Mr. Ariev moved, Dr. Robinson seconded to remove from the table a motion from November 27, 2012 to permit ASAM to install a directional sign on common wall area in the first floor elevator lobby of the east tower to direct visitors to their unit. The motion passed unanimously (6-0-0).

  

MOTION        Mr. Ariev moved, Dr. Robinson seconded that ASAM be permitted to provide at their own expense, a directional sign on the corridor wall of the Trash Room in the elevator lobby of the first floor in the east tower. The sign is to be of brass finish, similar in size to the signs presently in the corridor, approximately 14 ¾ inches by 9 ½ inches, with lettering approximately one inch in height. The motion passed unanimously (6-0-0).

Mr. McNerney noted that $100,000 from the operating fund was moved into a short-term CD, to mature 4/8/13 in order to not exceed the $250,000 FDIC insured amount.

New Business:

MOTION        Ms. Harding moved, Mr. Schattman seconded to authorize Wiss Janney and Elstner to address water abatement issues in unit 1812, not to exceed $7,500. The motion passed unanimously (6-0-0). 

MOTION        Mr. Ariev moved, Ms. Harding seconded to authorize LLCTA Professional Restorations to remove and replace commercial grade carpet in the Arcade at a cost of $3,098.03 plus applicable tax. Mr. Santos stated that the work will be done after 5 p.m. so it does not interfere with the business of commercial owners. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Ms. Harding seconded to authorize Safe Net Securing Inc. to provide telephone system upgrades at a cost of $1,920 and a 1-year service agreement.  Mr. Santos stated that the current system is at least 5 years old and needs software updates. The motion passed unanimously (6-0-0).

Mr. Ariev stated that the issue of smoking has been discussed among board members. In September of 2012 the Board consulted its attorney, who advised that smoking can be prohibited in house rules. Dr. Muller prepared an e-mail to the Board citing the risks of second hand smoke and that it should be considered noxious. Dr. Muller further suggested that the Board can decide to change house laws, and could implement a house rule to prohibit smoking on the balconies. Mr. Ariev also shared the response from the attorney, who stated that no court has upheld the concept about the risk free level of second hand smoke. No action that the Board takes can go without legal challenge. Smoking is best addressed by by-laws and any rule is subject to challenge and would not prevail in court. Mr. Ariev also inquired about the issue of writing prohibitions into leases to prohibit renters from smoking. The Association does not have the authority to impose different smoking laws for renters vs. tenants. Mr. Ariev then invited residents to comment on the smoking issue.

Dr. Muller further explained that second hand smoke is dangerous and the spread cannot be controlled. He noted that the by-laws state “no noxious or offensive activity should be carried on in any unit”, which applies to smoking.

Another resident stated that she often has cigarette smoke coming into her apartment and balcony, which causes discomfort and potential illness. She added that people smoke in areas near the building, such as the alcove near the restaurant, and smoke comes into the swimming pool area. The Board should consider having signs posted.  

MOTION        Mr. Ariev moved, Ms. Harding seconded to amend the house rules to prohibit smoking on the unit balconies, which are considered limited common elements with restricted use. The motion did not pass with all board members voting against the motion, except for Ms. Harding (1-5-0). The Board will receive further comments from the residents for a period of 30 days.

Committee Reports:

Social Committee: The committee thanked Rita Miller for her help with the inauguration party. A Super Bowl party is being planned. A Food Fest is being planned where residents will bring dishes representing their country of origin or a favorite family dish. A committee meeting will be held in February.  

Resident Comments:

-Resident Mr. Shayegan, Unit 1815, expressed concern about the red hair salon sign. He also expressed frustration with the frequent elevator closings. He also asked when the air handler that was shut down will be fixed. Mr. Ariev responded that the Board is working on having the red sign removed. Mr. Santos stated that he regrets the inconvenience of the elevator work, but it has to be done and he cannot improve the out-of-service time frame. The hoist motors of the passenger cars are being replaced, and the cars have to be out of commission for 30 days. After one car on the east side is done, then we will move to the west side for one car. The plan is to then move back to the East in March. Mr. Santos stated that one exhaust fan on the roof was shut down because the bearings were bad and it has been replaced.  The other exhaust fans on the roof are being replaced over the next 7-8 months.

-Resident Dr. Tang, Unit 06, complained about water coming into her apartment. She has sent emails and letters to the board. She also stated that when workmen came into her unit to make repairs, they broke a small console table. She reported it to management, but did not hear back. She stated that water comes up through a drain into her living room every year. Mr. Santos stated that he would discuss these issues with her.  

-Ms. Franz, Unit 1007 stated that despite the Board’s efforts to be more clear and informative, she had a number of questions about what had been discussed in this meeting. Mr. Ariev encouraged her to speak to Mr. Santos about management items and to email himself about other questions.

Adjournment:

The President adjourned the meeting at 8:57 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 next meeting will be held on February 26, 2013.  

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