THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting April 23, 2013
Board Present:
Ted Ariev President
David Robinson..............Vice-President
Herman Stekler ............. Asst. Treasurer..................
Ilo-Mai Harding...............Secretary
Steven Schattman ............Director
Charles Bressler Director
All members were in attendance.
Gregory Roby .............. Senior Vice President, Legum & Norman
James M. Santos ..............ECA General Manager, Legum & Norman
James M. Santos ..............ECA General Manager, Legum & Norman
Kenneth A. Kosteva ....... PE WJE Engineers, Architects, Materials Scientists
Annie Geralis ....................ECA Recording Secretary, On the Record
Gail Shultie ........................ECA Recording Secretary, On the Record
Call to Order:
Ariev called the meeting to order at 7:34 p.m.
Approval of Meeting Minutes:
MOTION: Harding moved that the minutes from the March 19, 2013 Board of Directors meeting be approved as submitted. McNerney seconded the motion. The motion passed (5-0-2); two abstentions from Harding and Bressler who were not in attendance for the March meeting.
President’s Report:
1) Executive Session, March 19, 2013
An executive session of the Board of Directors was held on March 19, 2013 to discuss legal matters.
2) Annual meeting notice mailed
The 2013 Annual Meeting will be held on May 1, 2013 at 7:30 pm. Ariev urged residents to attend or if unable to be present, to submit their proxy votes which will assist the Association in achieving Quorum and allow the meeting to be held.
Treasurer’s Report:
A copy of the Treasurer’s report is attached to the Minutes as Addendum #1. McNerney provided a detailed report that encompassed the following subjects:
1) Operating and capital budget update
2) Audit update
3) Loan Survey results
Specialty Report by Ken Kosteva of Wiss, Janney, Elstner Associations regarding Sliding Door and Window replacement:
Robinson introduced Kosteva and noted that the mission of the Board of Directors was to ensure that the task (Door and Window Replacements) be completed with the least disturbance and best value and complement the existing architectural design.
Kosteva provided a status update for the exterior restoration program and noted that it primarily focuses on windows and doors although balcony repairs will be incorporated to stabilize structures using more durable products. Kosteva presented ten slides depicting the design features and materials. Residents asked numerous questions about the design and construction timetable.
Kosteva will be preparing a presentation board for display which will enable residents to see the design and material details.
Management Report:
General Manager’s Report
Jim Santos provided Board Members with a summary of the management report, a copy of which is included with the Minutes, Addendum #2.
a) HVAC update (refrigerant leak, AHU sensor replace).
b) Elevator motor replacement project update
c) Insurance update.
d) Maintenance, Repair and Replacement Program.
e) Fire Alarm System upgrade.
f) Resolution for Insurance.
Other Committee Reports:
Making a Difference Committee
Ms. McNerney updated residents on progress in replacing the two plastic bins on G1 with a closed, secured collection bin for clothing donations.
They are looking for Floor Captain volunteers to assist in coordinating move-ins/move-outs.
They are considering another clothing drive this Fall, similar to the one done in March 2013.
Social Committee
Deborah Ariev reported for the Social Committee and announced two pending events both scheduled in May. Brian Murphy will offer a program on the rule of law in Afghanistan and Iraq on May 5, 2013. A wine and cheese will follow the lecture. On May 19, 2013 there will be a piano recital by Nino Mkheidze; this event will also be followed with a wine and cheese.
The Cookbook from food fest chefs is in the final stages and will soon go to print.
Storage committee
Jim Jones encouraged residents to revisit their storage areas, take inventory and maintain in good condition. Management is working on a process that will enable residents to discard items in the storage vicinity. The committee is also performing an inventory of items that were left behind when people vacated the property or passed away. Once the information is gathered the committee will research the legal protocol prior to discarding any items.
Old Business:
There was no old business presented for discussion.
New Business:
Financial Investments
John Fell (Morgan Stanley) met with management and the treasurer to discuss options for maximizing interest on the Association’s investments; the recommendation is $400,000 investment for a 90 day period.
MOTION: Stekler moved and McNerney seconded a motion instructing Morgan Stanley to invest $400,000 for a 90 day period. The motion passed with a unanimous vote. 7-0-0
There was also a recommendation to invest $100,000 at 2.35% for a 10 year period.
MOTION: Bressler moved that the aforementioned investment be made; McNerney seconded the motion. The motion was defeated. 3-4-0
MOTION: Stekler moved that $100,000 be invested with Morgan Stanley for a 12 month period at a current rate. Schattman seconded the motion. The motion passed with a 6-0-1 vote; Harding abstained.
Roof Anchor Proposal
MOTION: Schattman moved that the proposal from ProBel Enterprises to install 68 roof anchors at a cost of $88,261 be accepted. Harding seconded the motion. The motion was approved with a vote of 6-1-0; Stekler opposed.
Canopy Bid Approval
Santos presented a proposal for repair and restoration of the Arcade entrance canopy and removal of the west garage canopy. This issue was researched in detail by the Design Control Committee and the proposal is based on their recommendations. Discussion followed and resident comments were received.
MOTION: Stekler moved and Schattman seconded for approval of the proposal from Exterior Concepts, Inc. to perform the work on the Arcade entrance canopy and remove the West garage canopy pursuant to recommendations received from the Design Control Committee for the amount $30,183 (which includes upgrading the Arcade lighting to LED). The motion passed unanimously. 7-0-0
Auditor Selection
Bids to perform the Audit were received and evaluated. Treasurer notes it is common business practice to change contractor periodically and recommends selection of Weyrich, Cronin and Sorra.
MOTION: Schattman moved and McNerney seconded a motion to accept a contract with Weyrich, Cronin and Sorra to perform the FY2013 Audit for $7,650 and tax services for $1,100. The motion passes unanimously. 7-0-0
Replacement of Benches
Santos provided costs for replacing the two benches at the front of the building with two galvanized steel powder-coated benches.
MOTION: Robinson moved and Harding seconded a motion to approve the purchase of the benches in the amount of $1,836.80. The motion passed with a 6-1-0 vote; Stekler opposed.
Insurance Renewal
Santos submitted the proposed insurance policies from Greater New York for $118,263 (including Worker’s Compensation), obtained by Manougian Insurance on behalf of the Association, for approval. There is an increase of 5.6 percent.
MOTION: Schattman moved and McNerney seconded that the Greater New York policies be accepted or the 2014 fiscal year. The Board of Directors approved the motion with a unanimous vote. 7-0-0
FY 2014 Budget Review/Adoption
The 2014 Fiscal Year Draft Budget was mailed to owners for review and comment and is before the Board of Directors for final approval.
MOTION: Stekler moved that the budget be approved with a three (3%) increase. Schattman seconded the motion and discussion was held.
McNerney made a statement supporting an increase of three (3%) percent. A copy of his statement is Attachment #3 to these Minutes.
Ariev presented an argument for a five (5%) percent increase. A copy of his statement is Attachment #4 to these Minutes.
MOTION: Ariev moved and Robinson seconded a motion to amend the motion on the table to reflect a five (5%) percent increase.
Discussion continued with homeowners interjecting their concern that the budget is being adopted without them having received notification of the proposed changes. Stekler called “Point of Order” that owners were not provided with a 30-day opportunity to review and comment on the revised budget (although everyone agreed there were no changes in the expenditures).
MOTION: Stekler moved and Schattman that a vote on the 2014 Fiscal Year Budget be tabled to the May 28, 2013 Board of Directors meeting allowing owners an opportunity to review the three and five percent options and consider the impact each will have on the operating budget and reserve contributions. The motion was approved. 4-3-0
It was noted that a motion to table takes precedence over the two previous motions left on the floor with no vote being taken.
PA System
Schattman requested and Board Members agreed that Santos should proceed with the purchase of a new PA system and if possible have it functional prior to the Annual Meeting in May.
Resident Comments:
Molly Frantz - #1007
Expressed concern that there is no Audit even though the Association is ten months into the current fiscal year. How can a 5% increase be justified when there are no audited numbers for use in budgeting preparation? Resident further suggested that financial management be performed in-house by Association personnel.
Dr. Ruby Tang - #6
Concerned with window leaks that need repair and asked when she can expect action; was reminded of prior communications from Management and Board President. The renovations identified in the report from Kosteva of WJE will correct the problem. A timetable for the project is not available at this time.
Joan Rosenbach - #1517 and # 1516
Expressed concern about mold issues and asked if these conditions are being addressed. It is understood the HVAC units are the responsibility of the owners however they are looking to the Board and Management for guidance; specifications, contractors, etc. Rosenbach also asked if a savings would be realized if several owners participated simultaneously. Management has prepared a list of resources and has specifications available for owners to reference.
Molly Frantz - #1007
Asked if it is possible as part of the ten year refurbishing plan, if consultants can evaluate the HVAC units and make suggestions for replacements; take a building-wide approach to finding a solution to the common problem. Management has Engineer Mendoza information available for owners to use as a reference source.
Elin Winthrop - #1114
Expressed concern with the budget and proposed increases; changes in budget done too quickly and many homeowners would be unaware of the changes. Suggested that important matters such as this be discussed early in the meeting so all residents can participate; she noted that many people had left the meeting without having the opportunity to hear or participate in budget discussions.
Joan Snyder - #1120
Questioned if the proposed improvements will result in significant savings once installed: chillers, windows, doors, fans, etc. McNerney responded that because they are energy compliant and efficient there will be a substantial savings however that savings will not be appreciated until 2015/2016.
Dr. Muller - #411
Expressed gratitude to McNerney (Treasurer) and Ariev (President) for their work on behalf of the community. He noted that with regard to the proposed budget, there are no new facts incorporated, only a new analysis offered.
Judi Barth #209
Resident has issues with HVAC units and contacted Densel Company for an inspection and replacement pricing; estimated at $10,000-$12,000 per unit. She stressed that there must be leadership provided to owners pursuing replacement(s) from the Board of Directors and Management. Management will put together package plan and provide information to owners.
*NOTE: Ilo-Mai Harding, Secretary left the meeting at 10:47 pm.
Peter Latt - #521
Expressed concern that alcohol counseling is not readily available to those who need help.
Jean Sebeok - #419
Prior to purchasing her unit, she met with the Board President who explained the 20-year repair plan and advised that the budget would only increase an anticipated 3%. Resident suggested that management send a memo to owners and assist in gathering names of those who want to replace HVAC units. Owners can then collectively meet and coordinate a replacement project; stressed that communication and information are essential.
Molly Frantz - #1007
Offered comments on the proposed budget and the three and five percent options. She noted that the Board of Directors previously agreed to a maximum 3% increase over the next several years and it seems that they are not honoring that commitment.
Pam Dillon - #718
HVAC costs are way up due in part to the four-pipe system operating year round.
Mark Day #419
Noted that a four pipe system is much more valuable and useful than a two pipe system.
Jim Jones
Explained that a reserve study was never done at the Elizabeth during the first thirty-five years. A full reserve study was done in 2008 in which the need to build reserves was noted. As a result of the study, revenues/fees increased. He added that there are serious infrastructure problems that need attention and gave credit to the Board of Directors for taking on this task.
MOTION: McNerney moved that Version 14 of the 2014 Fiscal Year Draft Budget be mailed to homeowners. Schattman seconded the motion. The motion was approved. 5-1-0; Bressler opposed.
Adjournment: The meeting was adjourned without objection by President Ariev at 11:17 p.m.
Respectfully submitted,
_____________________________________
Ilo-Mai Harding, Board Secretary
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