Summary of ECA Board Meeting November 27, 2018

Board Present: Zlatan Beca, Monique Fridell, Al Muller, Lyle Schwartz, Rhonda Taller, Christopher Wemple

Absent: Makarand (Mak) Dehejia

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, and Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer

Highlights of the meeting:

President’s Report

·      Noted the unexpected deaths of long-time resident owners Alexandra Kielty and Sally Hart.

·      Described dissatisfaction with NFC, the concierge service we currently employ.

·      Mentioned Thomas Downey engineer ongoing investigation of noise issue affecting West side tiers 01 and 10 as well as common areas that include mail corridor and West side lobby areas.

Legal Report

·      Reviewed details related to the Larry Hirschman embezzlement with some new information:

o   Letter with the summary of findings helpful but not complete.

o   Accounting firm Burdette, Smith & Bish did the forensic audit. They only furnished the ECA with the portion that dealt with the Elizabeth.

o   Questions remain:

§  What analytic procedures were used by forensic accountants?

§  Was anyone else involved in the embezzlement?

§  Can we see the paper trail on the analytic work?

·      Look for a mailing on the proposed bylaw on new smoking restrictions at the Elizabeth. This is a draft for comment. There will be a town hall meeting January 16, 2019.

Financial

·      Loan payment—Motion to approve a $75,000 loan pay down per the 2018-19 budget passes with attending 6 directors unanimous.

·      The General Manager is monitoring when ECA needs to refinance the loan.

·      The ECA annual financial audit was delayed by waiting for the forensic audit results but will move forward with new information provided.

Management Report

·      Garage Project

o   Work is being completed on the incoming side of the guest parking entrance. The FOB reader will be moved back to the incoming side around Dec 3. Work will then proceed around Dec 5 on the outgoing side of guest parking.

o   Estimated total completion of the garage project is now set for August 2019.

·      Garage Door Replacement

o   On Dec 4 the resident entrance of the garage will have its door replaced due to numerous people hitting the door with their vehicles.

o   Exiting and entering the garage will be difficult on that day from 9 am to 3 pm. If it is at all possible it is advised to leave the garage before 9 am and return after 3 pm. Instructions for that day, including how to re-enter the garage have been put under resident doors.

·      Plumbing

o   Septic pits in the garage have been cleaned and pipes replaced as needed.

o   In meeting with several plumbing contractors, the ECA GM has determined that main lines should be cleaned quarterly on the lobby, first, and second levels where most of the clogs occur. Additional plans have been discussed.

o   If backups from these lines continue to occur than all drain lines will require replacement which will run into millions of dollars

·      Noise

o   Steve Johnston, Ph.D. from Thomas Downey Limited (consulting engineers) have been onsite to investigate the noise in the building as described in the ECA President’s Report above,

o   The report will be shared with the residents.

·      Landscaping—fall flowers have been installed

·      General maintenance

o   Apartment inspections are proceeding on the East Tower; West Tower is done.

o   Window Cleaning—is completed and went better than last time.

o   Metal and Stone Cleaning—was done on Nov 7, 2018.

·      Roof—Temco Roofing inspected the roof without major issues. Roof inspections are scheduled for every six months.

New Business

·      Concierge Companies were considered:

o   NFC—current, not meeting their contract specifications.

o   S.P. Jones Enterprises—used by the Carleton

o   NVT Staffing—more for temporary staffing

o   Jeffrey Scott Concierge

§  24/7 staffing without extra cost.

§  Pays employees more than minimum wage with built in bonus program.

§  Trains employees in a 40-hour program with exam, includes conflict resolution.

·      Motion to hire Jeffrey Scott Concierge as new concierge passes with attending 6 directors unanimous.

Committee Reports

·      Fire & Safety

o   The committee completed a draft evacuation plan but needs information from the Fire Department to complete the document.

o   General Manager MaryAnn Hall said she has someone working on evacuation instructions which will be posted on each floor since the Fire Department is requiring immediate compliance.

·      Merv Filter for HVACs

o   Molly Frantz brought used filters of various Merv ratings to show how much dust was collected.

o   ECA GM said she would get additional information on pricing. The Board will decide at the next board meeting in January.

·      Social Committee—there will be a holiday potluck on Saturday December 29, 2018 from 6-9 pm.

Summary of ECA Board Meeting October 23, 2018

Board Present: Zlatan Beca, Makarand (Mak) Dehejia, Monique Fridell, Al Muller, Lyle Schwartz, Rhonda Taller, Christopher Wemple

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer), and from The Goldklang Group CPAs: Howard Goldklang, President,  and Jeremy Powell, Associate Principal,

Highlights of the meeting:

·      First on the agenda was the presentation by Howard Goldklang & Jeremy Powell.  The presentation explained the difference between a financial statement audit and a forensic audit, and commented on the recent fraud. Gates Hudson has agreed to provide the ECA a copy of the forensic audit report, i.e., the part that deals specifically with the Elizabeth. The report is expected shortly.

·      Treasurer Lyle Schwartz noted that interest rates on our line of credit are scheduled to be adjusted in 2021 and will likely go up. He suggested that it may be advantageous to refinance the load at a fixed rate. The Board will investigate this and report at the November meeting.

·      Garage repairs continue but some of the areas needing repair are requiring more work than expected, which means the overall time for the project may increase.

·      Given the recent drain line pipe break in the 06 tier in September which also knocked out phone service in the management office and the conce, our general manager has contacted a company which drops a camera down such pipes to determine if they are cracked or crumbling. Look for a report at the next board meeting.

·      Molly Frantz reported findings and recommendations regarding MERV filters. The ECA has enough filters to complete the semi-annual in-unit maintenance, which begins in the West Tower on Monday, November 5, beginning on floors 1 and 2. No decision on MERV filters was made.

·      A question was asked about release of the Management Letters prepared by our auditor for the Board of Directors. Following is the ECA policy, found in the BuildingLink Library.

“Release of Audits and Related Information to Residents”

“The conduct of audits is a routine annual step in assuring competent financial management of any condominium. However, while audits themselves are released to owners when adopted, other related documents such as management letters are not. This is in accord with AICPA AU-C Section 905.5, through which CPA firms restrict such documents to review by the Board and management. These documents are reviewed by the Treasurer and General Manager, and management company, and if warranted, a corrective action plan is developed which is also presented to the Board. The Board may decide to provide summary information about management letters, related documents and corrective action plans to owners. The Elizabeth Condominium will continue to release audits, summaries of management letters and corrective action plans when adopted by the Board for owner information.” 

Beginning with the Transition Audit (July 1, 2015 – January 31, 2016), and at the request of the Board President, a summary of Goldklang’s findings) and recommended corrective actions was sent out to owners and placed on BuildingLink. Additionally, a special meeting was held for owners at which these documents were explained by the auditor. 

This same process was followed in the case of all subsequent audits and Jeremy Powell said he is happy to do this again this year.  In addition, he pointed out that Goldklang provides this service to none of its clients except the Elizabeth Condominium Association.

·      General Manager, MaryAnn Hall, announced that Rakeem’s last day would be November 1. He is moving to North Carolina. Rakeem was an employee of the concierge company and not the Association. We wish him well!

·      GM MaryAnn Hall also announced that the elevators passed inspection and we are awaiting new certificates; the roof anchors passed inspection and the next weight-testing of anchors is not due for five years; and the boilers passed the annual inspection. Additionally, window washing will take place November 1 & 2; and the fall landscaping will occur October 24.