The Elizabeth Board held a special meeting of the Board (as opposed to the usual monthly Board meeting) on January 14, 2009, to vote on the next step in its process of exploring the procurement of services from an outside management company. In attendance were all seven board members and about 60 people of the Elizabeth Condominium Association (ECA).
Based on various reports from those who attended, here are some of the highlights of what our Board president, Woody Cunningham, said:
• He outlined the process that the Board has been engaged in for the past six months. This has included talking to neighboring condo associations, meeting with representatives from several management companies, both here in the Elizabeth and at their offices, issuing writing a Request for Proposal, receiving and analyzing proposals (with help from experts), entertaining a bidders’ conference at the Elizabeth, receiving bids based on what the responding management companies learned in the bidders’ conference, and generally learning about the new advances in the field of large building management.
• In the area of financial management, an outside management company could offer significant savings to the ECA because of state of the art software, a centralized system, and their handling of large sums of money through the banking system.
• In the area of personnel, a centralized Human Resource Department would help realize benefits associated with health insurance and pension plans.
• Building operations, maintenance & repair: a new approach would allow for refocusing the General Manager’s duties, allowing for better building functioning as well as back up resources should our usual operations personnel, including engineers, fall ill or have some other kind of emergency.
• Utilities: ECA might realize a cost-saving through the larger reach of a management firm.
• Communications: ECA would benefit from already established options for websites, electronic messaging, and news dissemination.
• Building insurance: possibility of getting lower rates because of large-scale operations
• Cost: this is complicated, because the expectation is that while there would be a significant five-figure outlay to hire a management company, there will also be significant savings that could balance out the cost of hiring a management company over the long term. The cost depends on many choices that will be considered. The bottom line assumption is that the cost of an outside management company will fit our budget, but no one has any hard and fast numbers at this time.
• Cost/Benefit Determination is required to make the best decision.
Some of the issues around moving forward with a management company involve:
• The cost.
• The long-time employees who currently work for the ECA.
The Board voted 4 to 3 to move ahead with discussion with an outside management company, and voted for discussions to be held with Legum and Norman. How this will play out is yet to be determined.
Some of the things I believe we need to keep in mind:
• As all property owners know, you must continually invest in your property to maintain and enhance its value as well as keep ahead of repairs, assure proper preventive maintenance, and make the necessary improvements. Failure to continually invest in, maintain, and improve the property will result in erosion of property value.
• Key personnel on our current staff represent valuable institutional knowledge and, despite the problems, the Board appreciates what the current staff has been able to contribute. The Board is considering all options: full self-management, full professional property management, and a hybrid of both.
• The business of running an enterprise like the Elizabeth Condominium has come a long way. We need to move into the 21st Century with our management approach. There is no reason why we should allow our communal home to fall into disrepair.
• In this time of economic downturn, we need to be mindful that property investment requires money for maintenance and upkeep. It’s that old adage about penny-wise and pound-foolish. We need to make sure we spend what’s necessary without going overboard so that our investment will increase in value -- not decrease in value because we did not properly maintain and improve it.
Constructive comments are welcomed.
Thursday, January 22, 2009
Tuesday, January 20, 2009
Watching the Inauguration of Barack Obama
An enthusiastic crowd of Elizabethans gathered on January 20, 2009, some coming as early as the decoration committee to watch our big screen television to see the events leading up to the inauguration of Barack Obama, our 44th president of the United States. Here is the photo gallery. Kudos to our tireless social committee for their good work!!
After the swearing in of Barack Obama and the delivery of his speech, poet Elizabeth Alexander (in red) presented a poem written for the occasion of this inauguration!
Sunday, December 28, 2008
Skins Versus the 49ers
Just before half time of a so far winning Red Skins game, I took these photos of the party in the Elizabeth lobby. Many thanks to the social committee for good time. Pass the popcorn!
Thursday, December 18, 2008
Summary of December 2008 Elizabeth Condo Board Meeting
The December meeting of Elizabeth Condo Board was very important to the overall “health” of the building and its owners and renters. Here is a thumbnail list of what took place.
The Treasurer Monique Fridell gave a report on the contracted Reserve Study and the main point to know about this engineering and financial map of our future is that the report said we should be spending over $3 million to refurbish The Elizabeth. While we will not be spending more than the $1.2 million budgeted for the current refurbishing, the study supports the selection of Phyllis Hartman as our design company manager. Visit her website at http://www.hartmandesigngroup.com/index.php.
The Board, after considerable work and deliberation, is considering the Hartman Design Group after determining that none of the other designers came close to offering the kind of quality and support required to make The Elizabeth competitive with other condos in Chevy Chase and Bethesda. The bad news is that of the 5 areas for refurbishment, our budget will only be able to address at best three of the areas. Hartman recommended we refurbish, the corridors, the entrance lobby, and the party room. This would leave the west lobby and the bathrooms in the mail corridor as is. Several people mentioned that the priority should be to refurbish the west lobby over the party room.
Another big item decided is that there will no longer have a doorman. Many Board members (as well as Elizabeth owners) were frustrated with the personnel supplied by Securitas. Too often the doorman did not perform the services (opening the door, keeping the driveway clear, helping residents with packages, greeting people) expected. The decision was to eliminate one shift (saving $50,000) and keep two shifts of roving security personnel. Sharon Bobb pointed out that our management should have been more proactive in calling Securitas to say send us a different person to do the job, that the person sent was failing to meet our requirements.
Another significant bit of news is that condo fees will go up because the challenge to conserve energy by residents has not been successful. In all fairness, use of energy-saving light bulbs is a drop in the bucket versus replacing our old air-leaking windows. Does anyone besides me have big problems with daily layers of dust in their apartments? The Board President Woody Cunningham said the upcoming energy audit should address the issue of window and balcony door replacement.
There is a new sign for the commercial section of The Elizabeth. To put in the sign they had to dig up the landscaping planter, which means there will be additional plants installed. Also, a significantly large tree died and that space needs to be addressed as well. I understand that one of the problems with our planters is that because they are fairly shallow, this limits what plants and trees can be selected. I would like to suggest that now is the time to rethink the roses that now stand forlornly in the boxes along the right side of our walkway as you face the building.
One other issue that went unnoticed in the meeting but was reported in the management report involves two incidents with dogs. An unleashed dog bit a person in our building and two dogs had a fight on the first floor. The management report did not say what follow up actions were taken. The condo house rules say something to the effect that pets can be removed if they are deemed a nuisance. Both my husband and I who grew up with pets have experienced bad behavior by dogs living here in The Elizabeth. I have said before in the meeting comment periods that I advocate that dog owners should bring their pets in through our side doors and not through our lobby. I would also like it made clear that pets are not allowed on our common area furniture and that pets should not be spending time in our lobbies in any case.
The next social events will involve two TV events (the presidential inauguration and a final Redskins football game) and a possible wine-tasting party led by a knowledgeable resident.
The Board promised me timely receipt of the November meeting minutes in electronic format and delivered on that promise. In case anyone is wondering, minutes are not made public until they receive approval one month after the meeting being documented.
The Treasurer Monique Fridell gave a report on the contracted Reserve Study and the main point to know about this engineering and financial map of our future is that the report said we should be spending over $3 million to refurbish The Elizabeth. While we will not be spending more than the $1.2 million budgeted for the current refurbishing, the study supports the selection of Phyllis Hartman as our design company manager. Visit her website at http://www.hartmandesigngroup.com/index.php.
The Board, after considerable work and deliberation, is considering the Hartman Design Group after determining that none of the other designers came close to offering the kind of quality and support required to make The Elizabeth competitive with other condos in Chevy Chase and Bethesda. The bad news is that of the 5 areas for refurbishment, our budget will only be able to address at best three of the areas. Hartman recommended we refurbish, the corridors, the entrance lobby, and the party room. This would leave the west lobby and the bathrooms in the mail corridor as is. Several people mentioned that the priority should be to refurbish the west lobby over the party room.
Another big item decided is that there will no longer have a doorman. Many Board members (as well as Elizabeth owners) were frustrated with the personnel supplied by Securitas. Too often the doorman did not perform the services (opening the door, keeping the driveway clear, helping residents with packages, greeting people) expected. The decision was to eliminate one shift (saving $50,000) and keep two shifts of roving security personnel. Sharon Bobb pointed out that our management should have been more proactive in calling Securitas to say send us a different person to do the job, that the person sent was failing to meet our requirements.
Another significant bit of news is that condo fees will go up because the challenge to conserve energy by residents has not been successful. In all fairness, use of energy-saving light bulbs is a drop in the bucket versus replacing our old air-leaking windows. Does anyone besides me have big problems with daily layers of dust in their apartments? The Board President Woody Cunningham said the upcoming energy audit should address the issue of window and balcony door replacement.
There is a new sign for the commercial section of The Elizabeth. To put in the sign they had to dig up the landscaping planter, which means there will be additional plants installed. Also, a significantly large tree died and that space needs to be addressed as well. I understand that one of the problems with our planters is that because they are fairly shallow, this limits what plants and trees can be selected. I would like to suggest that now is the time to rethink the roses that now stand forlornly in the boxes along the right side of our walkway as you face the building.
One other issue that went unnoticed in the meeting but was reported in the management report involves two incidents with dogs. An unleashed dog bit a person in our building and two dogs had a fight on the first floor. The management report did not say what follow up actions were taken. The condo house rules say something to the effect that pets can be removed if they are deemed a nuisance. Both my husband and I who grew up with pets have experienced bad behavior by dogs living here in The Elizabeth. I have said before in the meeting comment periods that I advocate that dog owners should bring their pets in through our side doors and not through our lobby. I would also like it made clear that pets are not allowed on our common area furniture and that pets should not be spending time in our lobbies in any case.
The next social events will involve two TV events (the presidential inauguration and a final Redskins football game) and a possible wine-tasting party led by a knowledgeable resident.
The Board promised me timely receipt of the November meeting minutes in electronic format and delivered on that promise. In case anyone is wondering, minutes are not made public until they receive approval one month after the meeting being documented.
Wednesday, December 17, 2008
November 2008 Minutes of ECA Board Meeting
MINUTES of a Regular Meeting of the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), held on November 18, 2008 in the Party Room of the Condominium pursuant to notice in accordance with the Bylaws. Present were: George (Woody) Cunningham, Monique Fridell, Alexandra Kielty, Judith Barth, Jeffrey Axelrad and Alfred Muller. Judith Gann arrived late. Ms. Carolyn Farrell and Mr. Ed Polite represented Management.
The President, Mr. Cunningham, called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the Minutes of the Regular Meeting conducted on October 14, 2008 was made by Dr. Muller with a second by Ms. Kielty. Mr. Axelrad abstained since he was absent from the meeting. Ms. Gann was absent and did not vote. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of accepting the minutes. The minutes were approved.
PRESIDENT’S REPORT:
Mr. Cunningham informed the residents that the Board is currently assessing three major issues. He noted that the country is in a difficult financial environment at this time. However, he noted that the Board has a fiduciary responsibility to see that residents’ investment in this condominium must not deteriorate due to lack of maintenance, repairs or other factors. Therefore, the Board has contracted for a reserve study and energy audit and will base future decisions on the results of these studies.
The first major issue is the refurbishment project. The Board will be voting at December’s meeting on selection of a designer with whom the Board will negotiate a contract and set priorities.
The next major issue involves consideration of bringing in an outside management firm, rather than continuing our present self-management. There are financial considerations relating to this decision. More important, such a firm can provide resources not currently available to the Elizabeth. A Request for Proposal (RFP) has been issued to two firms: Legum & Norman and Associa. All have responded to the RFP. All firms have toured our facilities, and the Board is currently evaluating the proposals with due diligence. When the Board has completed the evaluations and has made a decision on the next step to be taken, an informational meeting will be held for all residents to attend.
The third issue is the increase of condominium fees. It is likely that there will be an increase in the near future, but the Board wants to base the fees on realistic needs. The plan is to complete the reserve study and the energy audit and then to use that data to evaluate the Elizabeth’s needs for the next five years prior to setting new fees. There are several factors impacting this potential raise including inflation, repair and maintenance increases and utility rate increases.
On another note, House Rules will be distributed to residents this week with a deadline for comments. The deadline to receive residents’ comments is thirty days from the date of receipt of the House Rules by residents.
TREASURER’S REPORT:
News
The Treasurer reported that delinquencies are down to 1.55% of receivables. This compares very favorably to those of many associations across the country, which are having significant problems as a result of the mortgage and financial crises. In October, ECA filed a lien against the property of a delinquent owner.
Copies of the utility usage chart, which is tracking performance under our 10% cost reduction challenge, have been distributed. For the month of September and YTD we were 10% above our cost reduction target.
Ms. Fridell shares the concerns expressed by Mr. Bason in his 11/14/08 letter to the Board regarding taking on large expenditures at a time of severe economic distress. She has expressed similar concerns to the Board on several occasions. In response to some specific comments in Mr. Bason's letter, the Treasurer reviewed Board’s financial analysis and reasoning for 1) Utility Challenge, and 2) Decision to delay condo fee increase decision if utility costs were reduced by 10% of 2007-2008 actual figure.
To date, we are not achieving the 10% utility expense reduction goal, and we may be required to raise condo fees anyway. Nevertheless, we felt it was worth a try since we know many of our neighbors are on fixed incomes. Increasing condo fees every year, and particularly this year, may impose hardship on them.
As stated at the 2008 Annual Meeting, we will review condo fees at the end of the year and, if necessary, make adjustments accordingly. We expect to have the results of the Reserve Study and the Energy Audit in a few months. These studies are expected to give us the firmest financial basis of all for whatever action we take regarding condo fees.
Asset Allocation
As of 10/31 ECA had $2.6 MM in cash and investments, roughly even YOY as growth in operating cash balances offsets a 3.2% decline in reserves due to FY 2008 capital expenditures of almost $653K.
The environment for investing in bank CDs remains challenging. In the absence of pending large reserve expenditures, we are investing in slightly longer maturities to take advantage of relatively higher rates and to boost interest income.
Monthly Performance
At the October Board Meeting, Ms. Fridell reported $17K net income for the month of September. This was understated due to non-receipt of the water bill and several other payables. The final net income figure for September 2008 was approximately $5K. For the month of October, net income was almost $7K. This was understated due to non-receipt of the water bill and expenses for recent community events. It is likely that once the latter are taken into account, we will report a loss for the month.
There were a number of items, which exceeded budget:
• Printing due to printing of Resident Directory
• Taxes due to timing of quarterly payments due
• Personnel due to timing of three pay periods within the month
• Electricity bill over budget (ECA is not doing well on controlling usage)
• Repairs & Maintenance as a category was over budget due to maintenance on boiler
• Trash removal due to bulk trash removal (every time residents leave unauthorized bulk items in trash area, we all have to pay to have these items removed)
• Insurance due to higher than expected insurance claims relating to problems around the building
In September, we transferred almost $44K to reserves and spent about $30K from reserves on façade repairs and the down payment on the Reserve Study.
FY 2009 Year to Date (YTD) Results
For the four months ending 10/31, net income was $62K. We have transferred $175K to reserves this year to date and spent $154K from reserves mostly on façade repairs, fire horn installation and correction of electrical system deficiencies.
A YOY comparison of growth in actual expenses reveals:
• Interest income lower by 36% and 12%, respectively, for operating and Reserve investments
• Admin expenses almost 10% lower, reflecting good expense control by Management
• Utilities flat, per challenge (we need them to be 10% lower)
• Association activities higher due to social activities Board has sponsored that were not in budget
OLD BUSINESS:
Management Report.
See attached report.
NEW BUSINESS:
Mr. Axelrad moved that the House Rules, as amended, be distributed to residents for comment. Dr. Muller seconded the motion. The residents will have thirty days from date of distribution to comment on the House Rules. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion. Ms. Farrell was asked to distribute the House Rules as soon as possible.
Contracts:
Regarding the issue of spiders and/or bugs in the garage, Mr. Axelrad made a motion (see attached) for removal of said insects. Ms. Barth seconded the motion. Dr. Muller asked if residents were required to approve the extermination of the bugs and was told that management was responsible for the removal. Management is responsible for informing parkers prior to extermination. Dr. Cunningham assured residents that the ceilings would not be sprayed as the spray could flake off.
The estimated cost for an immediate extermination of the spiders/bugs on G2 by Home Paramount Services level is $300. Dr. Muller made a motion to approve this extermination contract of the spiders/bugs on G2. Ms. Fridell seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
A contract has been received from J.P. Sewerooter to power clean the kitchen drains for 18 of the 21 tiers of the building since several of the main drains have clogged up. Tiers 19, 7 and 8 have already been cleaned with this method and the results have been good. Dr. Muller made a motion to approve the contract with Sewerooter for $3850 and Ms. Gann seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Proposals for providing a new telephone system have been received from Clear Connections, STBS Communications and Certified Techs Company. Management recommended Certified Techs Company. Ms. Fridell asked if the hardware complements the Verizon telephone system and uses the new phones. In answer to a question from a resident, Ms. Barth said that the old system couldn’t be repaired. Ms. Fridell made a motion to accept the proposal of Certified Techs Company for $5930.70. Mr. Axelrad seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Ms. Fridell discussed the proposed Reserve Study. She said a proposal has been received from DeLeon & Stang to perform a quantitative analysis of three proposals. Ms. Fridell made a motion to accept DeLeon & Stang’s proposal. Mr. Cunningham seconded the motion. After discussion, a vote was taken. Mr. Cunningham, Ms. Fridell, Ms. Kielty and Ms. Gann voted in favor of the motion. Mr. Axelrad, Ms. Barth and Dr. Muller voted against the motion. The motion passed.
Regarding the façade, a leak has been detected, but the extent of the leak cannot be determined at this time. The recommendation is to wait for six months and then evaluate the situation and determine if additional work should be done. Mr. Axelrad asked if an RFP could be drafted now so it is ready to go when needed. No decision was made. Currently, proposed work on the 06 tier is out for contract. Dr. Muller made a motion to give authority to management to go ahead with the work at a proposed cost of $1,000. Mr. Axelrad seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
COMMITTEE REPORTS:
Energy Conservation Committee: Ms. Joan Rosenbach presented her report, which is attached.
Refurbishment Committee: Ms. Gann reported that the Board would meet with the two companies it has selected and will present information at the December Board Meeting. Ms. Gann said that work would be done within a budget established under the Five Year Plan.
Social Committee: Ms. Barth said that the three social events already held were very successful. There will be two events in December. December 6: Peg Downey will work with residents to prepare packages for So Others May Eat from 1-5 in the Party Room. Residents are welcome to donate items and/or prepare packages. A notice will be put in all residents’ boxes at the front desk. On December 14th the Annual Holiday Party will take place from 7-9 p.m. in the West Lobby. Hollis and Trevor (who performed at the Caribbean Night) will perform again.
Friendship Heights Village Meeting: Dr. Muller reported that rehabilitation of the streets of the Village has begun and should be completed by the Holidays.
He also noted that two armed robberies had occurred recently within the Friendship Heights neighborhood. Ms. Fridell said that if ECA had a website, this kind of notices could be broadcast via e-mail immediately. Mr. Axelrad emphasized that such notices should be posted in the elevators immediately.
COMMENTS FROM THE FLOOR:
Jerry Feldman, #1819: He has met with several realtors, who reported that the Elizabeth does not show well at all and compares unfavorably with the other condominiums in the Friendship Heights area. He said that one’s home is one’s greatest asset and residents should be prepared to work with the Board to bring the Elizabeth up to a more comparable standing in the community. He urged that repairs and improvements be addressed as soon as feasible.
Peg Downey, #615: She asked if the Board would sponsor her program to assist So Others May Eat charity for the Holiday season. Dr. Muller made a motion to support the program. Ms. Barth seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Ms. Downey also said she has heard many comments about personal financial concerns throughout the building. She offered to arrange an informational seminar regarding reverse mortgages. She will work with Ms. Barth to set up a meeting in January for resident to meet with an AARP representative and an expert on reverse mortgages.
Karren Alenier, #301: Notices of Board Meetings placed in the elevators should have the time of the meeting included. The Crime Notice from the Village should have been posted in a timelier manner.
Ms. Alenier said she has set up a blog and would like Board endorsement. Mr. Axelrad said he did not feel that Board endorsement was appropriate.
Warren Aaronson, #201 asked if there would be entertainment at the Holiday Party. Ms. Barth said Hollis and Trevor would entertain.
Diana Brosnan, #1402: She asked if others had Verizon problems. She also noted that with regard to the Library, those residents working in the Library try very hard to keep things alphabetized and neat. The committee would appreciate it if residents were more careful when using the Library.
Jim Jones, #307: He is appreciative of Mr. Bason’s efforts to bring issues to the Board. He also asked about the maintenance of the exercise rooms and what the status is of leasing/owning equipment. Ms. Kielty is organizing an Exercise Room Committee and will meet and discuss the exercise room and pool area within the next two weeks. Dr. Muller noted that all the design firms said the exercise/pool areas should be competitive with other condominium buildings but would be very expensive to bring up to this standard under present budgetary restrictions.
Hans Rosenbach, #1517: He asked that guards ask landscaping trucks not doing work at the Elizabeth to leave the premises.
Esadvaster Bamji, #707: There should be a concave/convex mirror at the driveway exit to facilitate drivers exiting the garage.
Tobi Esler, #1206: She noted that the doorman, who is on duty in the mornings, spends his time at the front desk rather than opening/closing the door.
The meeting was adjourned at 9:35 p.m.
[These minutes were prepared by Judith Gann, Secretary of the ECA, and Karren Alenier posted these minutes to this blog. Alenier has bolded some of the issues for ease of locating specific topics. The ECA Board Meeting Minutes is a public document and available in paper copy at the ECA Management office.]
The President, Mr. Cunningham, called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the Minutes of the Regular Meeting conducted on October 14, 2008 was made by Dr. Muller with a second by Ms. Kielty. Mr. Axelrad abstained since he was absent from the meeting. Ms. Gann was absent and did not vote. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of accepting the minutes. The minutes were approved.
PRESIDENT’S REPORT:
Mr. Cunningham informed the residents that the Board is currently assessing three major issues. He noted that the country is in a difficult financial environment at this time. However, he noted that the Board has a fiduciary responsibility to see that residents’ investment in this condominium must not deteriorate due to lack of maintenance, repairs or other factors. Therefore, the Board has contracted for a reserve study and energy audit and will base future decisions on the results of these studies.
The first major issue is the refurbishment project. The Board will be voting at December’s meeting on selection of a designer with whom the Board will negotiate a contract and set priorities.
The next major issue involves consideration of bringing in an outside management firm, rather than continuing our present self-management. There are financial considerations relating to this decision. More important, such a firm can provide resources not currently available to the Elizabeth. A Request for Proposal (RFP) has been issued to two firms: Legum & Norman and Associa. All have responded to the RFP. All firms have toured our facilities, and the Board is currently evaluating the proposals with due diligence. When the Board has completed the evaluations and has made a decision on the next step to be taken, an informational meeting will be held for all residents to attend.
The third issue is the increase of condominium fees. It is likely that there will be an increase in the near future, but the Board wants to base the fees on realistic needs. The plan is to complete the reserve study and the energy audit and then to use that data to evaluate the Elizabeth’s needs for the next five years prior to setting new fees. There are several factors impacting this potential raise including inflation, repair and maintenance increases and utility rate increases.
On another note, House Rules will be distributed to residents this week with a deadline for comments. The deadline to receive residents’ comments is thirty days from the date of receipt of the House Rules by residents.
TREASURER’S REPORT:
News
The Treasurer reported that delinquencies are down to 1.55% of receivables. This compares very favorably to those of many associations across the country, which are having significant problems as a result of the mortgage and financial crises. In October, ECA filed a lien against the property of a delinquent owner.
Copies of the utility usage chart, which is tracking performance under our 10% cost reduction challenge, have been distributed. For the month of September and YTD we were 10% above our cost reduction target.
Ms. Fridell shares the concerns expressed by Mr. Bason in his 11/14/08 letter to the Board regarding taking on large expenditures at a time of severe economic distress. She has expressed similar concerns to the Board on several occasions. In response to some specific comments in Mr. Bason's letter, the Treasurer reviewed Board’s financial analysis and reasoning for 1) Utility Challenge, and 2) Decision to delay condo fee increase decision if utility costs were reduced by 10% of 2007-2008 actual figure.
To date, we are not achieving the 10% utility expense reduction goal, and we may be required to raise condo fees anyway. Nevertheless, we felt it was worth a try since we know many of our neighbors are on fixed incomes. Increasing condo fees every year, and particularly this year, may impose hardship on them.
As stated at the 2008 Annual Meeting, we will review condo fees at the end of the year and, if necessary, make adjustments accordingly. We expect to have the results of the Reserve Study and the Energy Audit in a few months. These studies are expected to give us the firmest financial basis of all for whatever action we take regarding condo fees.
Asset Allocation
As of 10/31 ECA had $2.6 MM in cash and investments, roughly even YOY as growth in operating cash balances offsets a 3.2% decline in reserves due to FY 2008 capital expenditures of almost $653K.
The environment for investing in bank CDs remains challenging. In the absence of pending large reserve expenditures, we are investing in slightly longer maturities to take advantage of relatively higher rates and to boost interest income.
Monthly Performance
At the October Board Meeting, Ms. Fridell reported $17K net income for the month of September. This was understated due to non-receipt of the water bill and several other payables. The final net income figure for September 2008 was approximately $5K. For the month of October, net income was almost $7K. This was understated due to non-receipt of the water bill and expenses for recent community events. It is likely that once the latter are taken into account, we will report a loss for the month.
There were a number of items, which exceeded budget:
• Printing due to printing of Resident Directory
• Taxes due to timing of quarterly payments due
• Personnel due to timing of three pay periods within the month
• Electricity bill over budget (ECA is not doing well on controlling usage)
• Repairs & Maintenance as a category was over budget due to maintenance on boiler
• Trash removal due to bulk trash removal (every time residents leave unauthorized bulk items in trash area, we all have to pay to have these items removed)
• Insurance due to higher than expected insurance claims relating to problems around the building
In September, we transferred almost $44K to reserves and spent about $30K from reserves on façade repairs and the down payment on the Reserve Study.
FY 2009 Year to Date (YTD) Results
For the four months ending 10/31, net income was $62K. We have transferred $175K to reserves this year to date and spent $154K from reserves mostly on façade repairs, fire horn installation and correction of electrical system deficiencies.
A YOY comparison of growth in actual expenses reveals:
• Interest income lower by 36% and 12%, respectively, for operating and Reserve investments
• Admin expenses almost 10% lower, reflecting good expense control by Management
• Utilities flat, per challenge (we need them to be 10% lower)
• Association activities higher due to social activities Board has sponsored that were not in budget
OLD BUSINESS:
Management Report.
See attached report.
NEW BUSINESS:
Mr. Axelrad moved that the House Rules, as amended, be distributed to residents for comment. Dr. Muller seconded the motion. The residents will have thirty days from date of distribution to comment on the House Rules. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion. Ms. Farrell was asked to distribute the House Rules as soon as possible.
Contracts:
Regarding the issue of spiders and/or bugs in the garage, Mr. Axelrad made a motion (see attached) for removal of said insects. Ms. Barth seconded the motion. Dr. Muller asked if residents were required to approve the extermination of the bugs and was told that management was responsible for the removal. Management is responsible for informing parkers prior to extermination. Dr. Cunningham assured residents that the ceilings would not be sprayed as the spray could flake off.
The estimated cost for an immediate extermination of the spiders/bugs on G2 by Home Paramount Services level is $300. Dr. Muller made a motion to approve this extermination contract of the spiders/bugs on G2. Ms. Fridell seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
A contract has been received from J.P. Sewerooter to power clean the kitchen drains for 18 of the 21 tiers of the building since several of the main drains have clogged up. Tiers 19, 7 and 8 have already been cleaned with this method and the results have been good. Dr. Muller made a motion to approve the contract with Sewerooter for $3850 and Ms. Gann seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Proposals for providing a new telephone system have been received from Clear Connections, STBS Communications and Certified Techs Company. Management recommended Certified Techs Company. Ms. Fridell asked if the hardware complements the Verizon telephone system and uses the new phones. In answer to a question from a resident, Ms. Barth said that the old system couldn’t be repaired. Ms. Fridell made a motion to accept the proposal of Certified Techs Company for $5930.70. Mr. Axelrad seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Ms. Fridell discussed the proposed Reserve Study. She said a proposal has been received from DeLeon & Stang to perform a quantitative analysis of three proposals. Ms. Fridell made a motion to accept DeLeon & Stang’s proposal. Mr. Cunningham seconded the motion. After discussion, a vote was taken. Mr. Cunningham, Ms. Fridell, Ms. Kielty and Ms. Gann voted in favor of the motion. Mr. Axelrad, Ms. Barth and Dr. Muller voted against the motion. The motion passed.
Regarding the façade, a leak has been detected, but the extent of the leak cannot be determined at this time. The recommendation is to wait for six months and then evaluate the situation and determine if additional work should be done. Mr. Axelrad asked if an RFP could be drafted now so it is ready to go when needed. No decision was made. Currently, proposed work on the 06 tier is out for contract. Dr. Muller made a motion to give authority to management to go ahead with the work at a proposed cost of $1,000. Mr. Axelrad seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
COMMITTEE REPORTS:
Energy Conservation Committee: Ms. Joan Rosenbach presented her report, which is attached.
Refurbishment Committee: Ms. Gann reported that the Board would meet with the two companies it has selected and will present information at the December Board Meeting. Ms. Gann said that work would be done within a budget established under the Five Year Plan.
Social Committee: Ms. Barth said that the three social events already held were very successful. There will be two events in December. December 6: Peg Downey will work with residents to prepare packages for So Others May Eat from 1-5 in the Party Room. Residents are welcome to donate items and/or prepare packages. A notice will be put in all residents’ boxes at the front desk. On December 14th the Annual Holiday Party will take place from 7-9 p.m. in the West Lobby. Hollis and Trevor (who performed at the Caribbean Night) will perform again.
Friendship Heights Village Meeting: Dr. Muller reported that rehabilitation of the streets of the Village has begun and should be completed by the Holidays.
He also noted that two armed robberies had occurred recently within the Friendship Heights neighborhood. Ms. Fridell said that if ECA had a website, this kind of notices could be broadcast via e-mail immediately. Mr. Axelrad emphasized that such notices should be posted in the elevators immediately.
COMMENTS FROM THE FLOOR:
Jerry Feldman, #1819: He has met with several realtors, who reported that the Elizabeth does not show well at all and compares unfavorably with the other condominiums in the Friendship Heights area. He said that one’s home is one’s greatest asset and residents should be prepared to work with the Board to bring the Elizabeth up to a more comparable standing in the community. He urged that repairs and improvements be addressed as soon as feasible.
Peg Downey, #615: She asked if the Board would sponsor her program to assist So Others May Eat charity for the Holiday season. Dr. Muller made a motion to support the program. Ms. Barth seconded the motion. Mr. Cunningham, Ms. Fridell, Ms. Kielty, Ms. Barth, Dr. Muller, Mr. Axelrad and Ms. Gann voted in favor of the motion.
Ms. Downey also said she has heard many comments about personal financial concerns throughout the building. She offered to arrange an informational seminar regarding reverse mortgages. She will work with Ms. Barth to set up a meeting in January for resident to meet with an AARP representative and an expert on reverse mortgages.
Karren Alenier, #301: Notices of Board Meetings placed in the elevators should have the time of the meeting included. The Crime Notice from the Village should have been posted in a timelier manner.
Ms. Alenier said she has set up a blog and would like Board endorsement. Mr. Axelrad said he did not feel that Board endorsement was appropriate.
Warren Aaronson, #201 asked if there would be entertainment at the Holiday Party. Ms. Barth said Hollis and Trevor would entertain.
Diana Brosnan, #1402: She asked if others had Verizon problems. She also noted that with regard to the Library, those residents working in the Library try very hard to keep things alphabetized and neat. The committee would appreciate it if residents were more careful when using the Library.
Jim Jones, #307: He is appreciative of Mr. Bason’s efforts to bring issues to the Board. He also asked about the maintenance of the exercise rooms and what the status is of leasing/owning equipment. Ms. Kielty is organizing an Exercise Room Committee and will meet and discuss the exercise room and pool area within the next two weeks. Dr. Muller noted that all the design firms said the exercise/pool areas should be competitive with other condominium buildings but would be very expensive to bring up to this standard under present budgetary restrictions.
Hans Rosenbach, #1517: He asked that guards ask landscaping trucks not doing work at the Elizabeth to leave the premises.
Esadvaster Bamji, #707: There should be a concave/convex mirror at the driveway exit to facilitate drivers exiting the garage.
Tobi Esler, #1206: She noted that the doorman, who is on duty in the mornings, spends his time at the front desk rather than opening/closing the door.
The meeting was adjourned at 9:35 p.m.
[These minutes were prepared by Judith Gann, Secretary of the ECA, and Karren Alenier posted these minutes to this blog. Alenier has bolded some of the issues for ease of locating specific topics. The ECA Board Meeting Minutes is a public document and available in paper copy at the ECA Management office.]
Sunday, December 14, 2008
Holiday Party
Here are a few photos from a very well attended holiday party. 
Hollis and Trevor played Christmas tunes in the Caribbean style. Elizabethans enjoyed hand carved beef, platters of shrimp, fruit, cheese and tempting creme puffs, brownies, rugala. And of course libations -- egg nog, wine, soft drinks. 
There was lots of engaged conversations and swaying to the music!
Happy Holidays to all!
Wednesday, December 3, 2008
Elizabeth Owners Bill of Rights
Be it known that several concerned owners and residents at the condominium known as The Elizabeth in Chevy Chase, Maryland have come together to make known their wishes and expectations for the improvement and upgrade of said facility in both physical stature and general reputation in the community by virtue of radically improved management, structural modernization and updated appearance.
We respect the existing method of function wherein the elected Board of Directors is charged with the responsibility of planning and directing and execution is vested in management with oversight and review maintained by the Board. However, we adamantly endorse the concept of third party, outside, certified professional management.
We recognize that The Elizabeth has suffered years of benign neglect that has resulted in a substantial number of problems that can be rectified only by serious capital re-investment. Innovative financial management can significantly alleviate the stress and strain of such costs.
In recognition of the broad range of problems that the Board is expected to consider, research and act upon, we, The Quiet Majority, offer our services as an adjunct arm which can be employed to save valuable time and effort. Within our ranks are skilled talents with extensive histories in engineering, architecture, business management, finance, communications, design and concept marketing. By objectively assessing each problem area, we would hope to provide the Board with valuable insights and information critical to the Board’s decision- making process.
The objective of these few proposals is two fold: (1) to create an environment that will give daily joy, pride and enrichment to all residents and (2) in keeping with its outstanding location and abetted by said improvements, owners will benefit from a dramatic revival of The Elizabeth’s asset VALUE!
The Quiet Majority
We respect the existing method of function wherein the elected Board of Directors is charged with the responsibility of planning and directing and execution is vested in management with oversight and review maintained by the Board. However, we adamantly endorse the concept of third party, outside, certified professional management.
We recognize that The Elizabeth has suffered years of benign neglect that has resulted in a substantial number of problems that can be rectified only by serious capital re-investment. Innovative financial management can significantly alleviate the stress and strain of such costs.
In recognition of the broad range of problems that the Board is expected to consider, research and act upon, we, The Quiet Majority, offer our services as an adjunct arm which can be employed to save valuable time and effort. Within our ranks are skilled talents with extensive histories in engineering, architecture, business management, finance, communications, design and concept marketing. By objectively assessing each problem area, we would hope to provide the Board with valuable insights and information critical to the Board’s decision- making process.
The objective of these few proposals is two fold: (1) to create an environment that will give daily joy, pride and enrichment to all residents and (2) in keeping with its outstanding location and abetted by said improvements, owners will benefit from a dramatic revival of The Elizabeth’s asset VALUE!
The Quiet Majority