MINUTES OF THE BOARD OF DIRECTORS
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.’S
JULY 9, 2009 OPEN WORKSHOP
MINUTES of a Workshop held by the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), on July 9, 2009 in the Party Room of the Condominium pursuant to notice.
Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller. Also, Site Manager Michael Horan was present.
Woody Cunningham called the Workshop, which was open to all residents of The Elizabeth, to order at about 7:30 p.m.
The Board reviewed and discussed the proposed five-year plan for the Elizabeth Condominium and revisions to the plan. In its discussion, the Board was aided by Monique Fridell’s visual spreadsheet, which was displayed on a screen. After extensive discussion, the Board received a number of comments from residents who attended the meeting. No decisions were made and no votes were taken at the meeting.
Woody Cunningham adjourned the meeting not long after 9:30pm.
Respectfully submitted,
Jeffrey Axelrad
Secretary
Thursday, July 23, 2009
Wednesday, June 24, 2009
Summary of June 2009 Elizabeth Condo Board Meeting
Highlighted in the June meeting of the Elizabeth Condo Board were: transitioning of building management to Legum & Norman including methods of paying condo fees, energy issues including hiring consultant to assess requirements for new windows and balcony doors, and need to fix plumbing/pipe issues before renovation can move forward.
Present at the meeting were the following Legum & Norman representatives:
Patricia DuBuque, Executive Vice President, Community Management
Judy Branthover, Vice President (Regional Manager who will oversee the ECA Community Manager and the transition)
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
L&N also offers the flexibility to charge condo fees. If the ECA Board votes to permit charging of condo fees to credit cards, there will be an $8.00 convenience fee charged to the Association and a $3.00 charge to the user of the card. Electric Funds Transfer (automatic deduction) is the most cost-effective way for the ECA to have condo fees sent to L&N. Personal checks always incur a service charge to the Association.
Energy issues not only include replacement of leaky windows and balcony doors but assessment of the heating and cooling units (McQuay units) and whether it would be possible to meter energy use on a unit-by-unit basis. Currently utility costs are rolled into condo fees. Metering the use of electricity and water within owner units would significantly encourage energy conservation because owners would be able to see the cause and effect of use within their units. Also separate metering would reduce condo fees. While windows, balcony doors, and the old heating and cooling systems must be attended to, retrofitting utility meters for individual units may not be a financially viable option.
While the committee overseeing the renovation by the Hartman Design Group is pleased with the palettes of color and materials, the ECA cannot move ahead until a number of plumbing and pipe issues are corrected. Fixing these problems is a sizeable expense but must be done. To move ahead without fixing these things would jeopardize the investment in new carpet, wall coverings, furniture, etc. For example, the lobby level has a number of water leakage problem areas. However, what is clear is that the entire building needs to be assessed for structural, mechanical, and plumbing issues (there may be other categories too) BEFORE any renovations can safely be implemented.
Securitas reported that an apartment on the East side was broken into but nothing was reported missing though a glass table was broken.
Contracts: The Board approved repair to the big chiller used on high temperature days. Board voted to renew contract for Clean inc. Landscaping contract was put on hold as was the Aqua Fit contract.
The Social Committee reported that over 100 people attended the BBQ party.
Present at the meeting were the following Legum & Norman representatives:
Patricia DuBuque, Executive Vice President, Community Management
Judy Branthover, Vice President (Regional Manager who will oversee the ECA Community Manager and the transition)
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
L&N also offers the flexibility to charge condo fees. If the ECA Board votes to permit charging of condo fees to credit cards, there will be an $8.00 convenience fee charged to the Association and a $3.00 charge to the user of the card. Electric Funds Transfer (automatic deduction) is the most cost-effective way for the ECA to have condo fees sent to L&N. Personal checks always incur a service charge to the Association.
Energy issues not only include replacement of leaky windows and balcony doors but assessment of the heating and cooling units (McQuay units) and whether it would be possible to meter energy use on a unit-by-unit basis. Currently utility costs are rolled into condo fees. Metering the use of electricity and water within owner units would significantly encourage energy conservation because owners would be able to see the cause and effect of use within their units. Also separate metering would reduce condo fees. While windows, balcony doors, and the old heating and cooling systems must be attended to, retrofitting utility meters for individual units may not be a financially viable option.
While the committee overseeing the renovation by the Hartman Design Group is pleased with the palettes of color and materials, the ECA cannot move ahead until a number of plumbing and pipe issues are corrected. Fixing these problems is a sizeable expense but must be done. To move ahead without fixing these things would jeopardize the investment in new carpet, wall coverings, furniture, etc. For example, the lobby level has a number of water leakage problem areas. However, what is clear is that the entire building needs to be assessed for structural, mechanical, and plumbing issues (there may be other categories too) BEFORE any renovations can safely be implemented.
Securitas reported that an apartment on the East side was broken into but nothing was reported missing though a glass table was broken.
Contracts: The Board approved repair to the big chiller used on high temperature days. Board voted to renew contract for Clean inc. Landscaping contract was put on hold as was the Aqua Fit contract.
The Social Committee reported that over 100 people attended the BBQ party.
Wednesday, June 17, 2009
Special ECA Board Meeting on Professional Management Vote
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 26, 2009
Board
Present: Woody Cunningham President
Alexandria Kielty Vice President
Monique Fridell Treasurer
Judith Barth Assistant Treasurer
Jeffrey Axelrad Secretary
Charles Bressler Director
Dr. Alfred Muller Director
Also present: Jason Fisher Lerch Early and Brewer Chartered
Martha Morris Recording Secretary
Call to Order: President Cunningham called the meeting to order at 7:30 pm.
President’s Report
Mr. Cunningham stated that the meeting had one agenda item, to vote on a proposed contract with Legum and Norman Inc. to provide management services to the Elizabeth Condominium Association. He stated that the Elizabeth needs a major restructuring of its management system and that it may be internal or external. He added that the Board will have in place a good five-year plan later this year. He then opened the floor for discussion.
Residents’ Comments
Jim Rich #301 reminded the residents that Board members are unpaid volunteers and should be addressed courteously.
Jim Jones #307 West Tower asked each Board member to state his/her position on the issue with their reasons. Mr. Cunningham responded that such discussion is on the agenda.
Alicex Robinson #917 noted that in the last election, the three Board members who are in favor of approving the management contract received 33% of the vote. She asked that the Board defer this decision for one year and to give owners the opportunity to vote.
Pam Dillon #718 referred to a spreadsheet of costs that the Board had distributed and expressed concern that the Association will be subject to annually rising personnel costs. She also expressed concern that Legum and Norman has been purchased by Associa, and that losses in other Associa companies could trigger increased fees charged by Legum and Norman. She further expressed concern about the possibility of losing current Elizabeth staff. Lastly, she noted some numbers in the spread sheet that appeared to be in error.
Wally Mannheimer #1109 and #1110 recalled that when Ms. Dillon was on the Board, she recommended that the Association consider outside management. Ms. Dillon responded that she recommended a consultant-type role for the outside company.
Ellen Winthrop #1114 stated that in her opinion the current staff has been exemplary. She reminded the Board that the staff possesses a large reservoir of knowledge and asked if the decision could be delayed for six months. She also expressed concern about the amount of Legum and Norman’s insurance bond.
Judy Gann #711 noted her participation when she was on the Board in the deliberations on changing to outside management. She spoke favorably of current staff but said that outside management can provide backup, which is important in light of the repairs that need to be carried out prior to the refurbishing project.
Mary Andreresen #1107 agreed with the comments on the insurance bond. She suggested that the rating of Associa’s insurance ratingprovider be investigated.
David Dreisen #517 East Tower asked that if the Board votes to approve, they create benchmarks to evaluate if the company is meeting the community’s expectations.
Kevin Barker #101 asked that the Board wait one year before making a decision.
Sanford Meracle #1405 expressed his need for more specific cost information on the contract, such as hidden fees, asked whether resident satisfaction levels were included in the analysis, questioned the company’s proposed role in the refurbishment project, and feels the Board spends too much time on legal matters. He asked the Board to postpone the decision.
Pat Larson #1619 East Tower moved in in 1997 specifically because the building was individually managed. She has concernss about the Associa acquisitionbuyout and is worried costs will rise. She emphasized the family-like atmosphere of the Elizabeth.
Keith Burrell visiting #501 noted that he is a Board member of a condominium in downtown Washington DC. He reported that a good management company can help an Association reduce costs such as energy; however, he was not favorable about L&N, feeling they are too large.
Angela Richardelli, 26-year resident and 12-year owner, stated that it is difficult to achieve an outcome which achieves speed, quality and contentment. She suggested the Board develop a counter-contractproposal to the L&N contract which limits increases in assessments and ensures performance reviews.
Karen Alenier, owner since 1978, acknowledged that change is difficult but urged residents to consider the need for change in order to protect their investments. She commended the Board for taking action.
Stephanie Olshan #1014, 10-year owner, thanked the Board for their hard work on the owners’ behalf. She stated there is misinformation circulating about the relative authority of the Board and of the management company over the determination of the assessment.
Barbara Sandler #211, owner since the building opened, expressed her fondness for the community. She has attended as many Board meetings as possible and complimented the Board on its work. She reminded the residents that it is they who elect the Board members and it is the residents’ responsibility to respect the Board and to allow them to do their job. The Bylaws give authority to the Board to make certain decisions. She asked that the community try to work together, knowing that everything will not be perfect.
Clay Nettles #508 introduced a vote of no confidence two meetings ago but it did not pass. He appreciated the Board letting the residents speak their opinion tonight.
Linda Kotner #919 was dismayed that the Board was voting the same night as the residents’ comments and asked that in the future, the Board build in extra time to consider owners’ input.
Board Discussion
Mr. Cunningham asked each Board member to make a statement before voting. He asked if there were any questions for Mr. Fisher regarding the proposed contract.
MOTION
Mr. Axelrad moved to accept the final version of the proposed contract with Legum and Norman Inc. to provide management services to the Association. Ms. Barth seconded the motion.
Discussion
Mr Axelrad – stated that the decision on whether to move to Legum and Norman’s professional management relates to effective management of our building, not to personalities. We do not have the breath and depth of support that Legum & Norman can provide. In short, we need professional management’s knowledge and support. Our building’s physical structure is no longer new or even close to new. For example, our pipes leak and have even spewed filth into apartments, the latter being a failure on our part until now to know that our pipes need to be cleaned. While we have excellent personnel running and overseeing our finances, our system is antiquated. In short, we need professional management’s knowledge and support.. Legum & Norman has already, without compensation, pointed us to a very substantial savings: We have needlessly been paying sales tax on costs such as electricity and gas. We need to accept the virtue of delegating day-to-day management (with Board oversight) to professionals rather than seeking to maintain the dead hand of control over a haphazard, poorly organized and insufficiently functioning support operation. Past Boards have had plenty of time to match the advantages of professional management; they did not! It’s a fantasy to think that our current deterioration, including in the value of our property, compared to other condominiums in our neighborhood, will change without professional management. We have many fine employees; professional management will enable us to maximize their efforts for all our benefit.
Mr. Axelrad – had several preliminary points: 1) when he ran for the Board, he made it clear that he had an open mind regarding the issue; 2) the building is in deteriorating condition; and 3) it is now clear to him that the Association needs to move to professional management. He feels that the current staff does an excellent job on financial operations but the Association needs more depth and breadth, knowledge and support. Legum and Norman has already pointed out certain savings that could be achieved on energy bills totaling tens of thousands of dollars. He feels it is the responsibility of the Board to vote for the change.
Ms. Fridell – stated she is voting against the proposal. During the due diligence process, she asked that the Board consider an internal restructuring of the current management system; however, they, which was rejected this possibilitynot done. She would feel much more comfortable moving to outside management if the Board had at least made a good faith effort to effect change based on specific measurable operating performance criteria, and had reached the conclusion that we simply were unable to meet our goals for improvement on our own. She would like to have seen the Board execute an internal restructuring and make wholehearted efforts to improve our operational issues on our own before moving to outside management.
She expressed the need for specific operating goals with measurable outcomes. She feels the Board should work harder with the current situation.
Mr. Bressler – noted that this is an important decision. He reviewed the presentation made last Wednesday night from Legum and Norman company representatives. Due to financial concerns, Hhe asked that the decision be postponed until after the refurbishment project is completed. He noted that communication has not been good the past several years but that any changes that need to be made can be done internally. He asked that if the motion passes, the Board furnish realistic estimateds contract and other of costs to the Association relating to the move to an outside management company. owners.
Ms. Barth – stated that the Elizabeth has been declining in property values and in quality of life. During careful study by the Board over the past year, three companies in the DC area were considered and Legum and Norman was the finalist. Benefits of engaging Legum and Norman include resources not available to individually managed properties and high levels of staff education and training. Legum and Norman’s engineering department can address the Elizabeth’s structural and mechanical problems. She has lived at the property for 30 years and cares about the community. Her fiduciary responsibility is to vote for outside management. Lastly, she noted that the Bylaws confirm her right to vote on the Board.
Dr. Muller – noted that legal counsel advised against discussing personnel in the meeting. He emphasized the Board’s responsibility to keep the Elizabeth competitive in today’s market and the increasing complaints about deteriorating conditions and services. He reminded residents that an open meeting was held four months ago to solicit residents’ input; the biggest concerns were cost and possible staff changes. These concerns have been addressed in the negotiations with Legum and Norman. He noted the cost-savings advantages of a large and experienced company and the access to backup. He is in favor of voting for the contract.
Ms. Kielty – had questions for Mr. Fisher regarding clauses in the proposed contract relating to who has the authority over employee hiring and firing. In all Board discussions it has been consistently stated that only the Board has the right to let go or fire staff, but the contract states that the Site Managers has the authority to discharge employees. Ms. Kielty also mentioned that during the L & N briefing, John stated that they would prefer that their management staff have the right to let staff go and that this issue was still not resolved. She pointed out that should the Association wish to convert to a a “financial managements only” only contract at some point in the future, having certain employees report to the outside company might make the switch difficult since it would also mean letting go of the site manager and the resident service coordinator, as well as any other new staff that are hired as L & N employees. She asked whether L&N would perform legal activities relating to collection services. Mr. Fisher confirmed that Lerch Early and Brewer would continue to provide collections this services. She was involved early on the decision-making process but has decided to vote against the proposal over the issue of hiring personnel. She also noted that the recent vote for new ECA board members was, in a sense, a referendum on outside management which suggested the vast majority of residents did not agree with the Board’s action on this issue. However, should the motion pass, she will work hard to implement the contract effectively.
Mr. Cunningham wrapped up by noting that the Board gives up none of its responsibilities by moving to an outside management company. He originally thought the problems could be solved by revamping the existing management structure but as a result of his day-to-day involvement, he now recognizes the advantages an outside company would bring.
Prepared statements read at the Board Meeting and provided after the meeting by the Board Members who delivered the statements are attached.
VOTE
Axelrad – FOR
Fridell – AGAINST
Bressler – AGAINST
Barth – FOR
Muller – FOR
Kielty – AGAINST
Cunningham – FOR
The motion passed, 4-3.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 pm.
Original draft prepared by Martha Morris, Recording Secretary
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
[This set of minutes were sent to me with Draft written at the top and does contain spelling errors on names. Alenier has bolded the purpose of this meeting.]
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 26, 2009
Board
Present: Woody Cunningham President
Alexandria Kielty Vice President
Monique Fridell Treasurer
Judith Barth Assistant Treasurer
Jeffrey Axelrad Secretary
Charles Bressler Director
Dr. Alfred Muller Director
Also present: Jason Fisher Lerch Early and Brewer Chartered
Martha Morris Recording Secretary
Call to Order: President Cunningham called the meeting to order at 7:30 pm.
President’s Report
Mr. Cunningham stated that the meeting had one agenda item, to vote on a proposed contract with Legum and Norman Inc. to provide management services to the Elizabeth Condominium Association. He stated that the Elizabeth needs a major restructuring of its management system and that it may be internal or external. He added that the Board will have in place a good five-year plan later this year. He then opened the floor for discussion.
Residents’ Comments
Jim Rich #301 reminded the residents that Board members are unpaid volunteers and should be addressed courteously.
Jim Jones #307 West Tower asked each Board member to state his/her position on the issue with their reasons. Mr. Cunningham responded that such discussion is on the agenda.
Alicex Robinson #917 noted that in the last election, the three Board members who are in favor of approving the management contract received 33% of the vote. She asked that the Board defer this decision for one year and to give owners the opportunity to vote.
Pam Dillon #718 referred to a spreadsheet of costs that the Board had distributed and expressed concern that the Association will be subject to annually rising personnel costs. She also expressed concern that Legum and Norman has been purchased by Associa, and that losses in other Associa companies could trigger increased fees charged by Legum and Norman. She further expressed concern about the possibility of losing current Elizabeth staff. Lastly, she noted some numbers in the spread sheet that appeared to be in error.
Wally Mannheimer #1109 and #1110 recalled that when Ms. Dillon was on the Board, she recommended that the Association consider outside management. Ms. Dillon responded that she recommended a consultant-type role for the outside company.
Ellen Winthrop #1114 stated that in her opinion the current staff has been exemplary. She reminded the Board that the staff possesses a large reservoir of knowledge and asked if the decision could be delayed for six months. She also expressed concern about the amount of Legum and Norman’s insurance bond.
Judy Gann #711 noted her participation when she was on the Board in the deliberations on changing to outside management. She spoke favorably of current staff but said that outside management can provide backup, which is important in light of the repairs that need to be carried out prior to the refurbishing project.
Mary Andreresen #1107 agreed with the comments on the insurance bond. She suggested that the rating of Associa’s insurance ratingprovider be investigated.
David Dreisen #517 East Tower asked that if the Board votes to approve, they create benchmarks to evaluate if the company is meeting the community’s expectations.
Kevin Barker #101 asked that the Board wait one year before making a decision.
Sanford Meracle #1405 expressed his need for more specific cost information on the contract, such as hidden fees, asked whether resident satisfaction levels were included in the analysis, questioned the company’s proposed role in the refurbishment project, and feels the Board spends too much time on legal matters. He asked the Board to postpone the decision.
Pat Larson #1619 East Tower moved in in 1997 specifically because the building was individually managed. She has concernss about the Associa acquisitionbuyout and is worried costs will rise. She emphasized the family-like atmosphere of the Elizabeth.
Keith Burrell visiting #501 noted that he is a Board member of a condominium in downtown Washington DC. He reported that a good management company can help an Association reduce costs such as energy; however, he was not favorable about L&N, feeling they are too large.
Angela Richardelli, 26-year resident and 12-year owner, stated that it is difficult to achieve an outcome which achieves speed, quality and contentment. She suggested the Board develop a counter-contractproposal to the L&N contract which limits increases in assessments and ensures performance reviews.
Karen Alenier, owner since 1978, acknowledged that change is difficult but urged residents to consider the need for change in order to protect their investments. She commended the Board for taking action.
Stephanie Olshan #1014, 10-year owner, thanked the Board for their hard work on the owners’ behalf. She stated there is misinformation circulating about the relative authority of the Board and of the management company over the determination of the assessment.
Barbara Sandler #211, owner since the building opened, expressed her fondness for the community. She has attended as many Board meetings as possible and complimented the Board on its work. She reminded the residents that it is they who elect the Board members and it is the residents’ responsibility to respect the Board and to allow them to do their job. The Bylaws give authority to the Board to make certain decisions. She asked that the community try to work together, knowing that everything will not be perfect.
Clay Nettles #508 introduced a vote of no confidence two meetings ago but it did not pass. He appreciated the Board letting the residents speak their opinion tonight.
Linda Kotner #919 was dismayed that the Board was voting the same night as the residents’ comments and asked that in the future, the Board build in extra time to consider owners’ input.
Board Discussion
Mr. Cunningham asked each Board member to make a statement before voting. He asked if there were any questions for Mr. Fisher regarding the proposed contract.
MOTION
Mr. Axelrad moved to accept the final version of the proposed contract with Legum and Norman Inc. to provide management services to the Association. Ms. Barth seconded the motion.
Discussion
Mr Axelrad – stated that the decision on whether to move to Legum and Norman’s professional management relates to effective management of our building, not to personalities. We do not have the breath and depth of support that Legum & Norman can provide. In short, we need professional management’s knowledge and support. Our building’s physical structure is no longer new or even close to new. For example, our pipes leak and have even spewed filth into apartments, the latter being a failure on our part until now to know that our pipes need to be cleaned. While we have excellent personnel running and overseeing our finances, our system is antiquated. In short, we need professional management’s knowledge and support.. Legum & Norman has already, without compensation, pointed us to a very substantial savings: We have needlessly been paying sales tax on costs such as electricity and gas. We need to accept the virtue of delegating day-to-day management (with Board oversight) to professionals rather than seeking to maintain the dead hand of control over a haphazard, poorly organized and insufficiently functioning support operation. Past Boards have had plenty of time to match the advantages of professional management; they did not! It’s a fantasy to think that our current deterioration, including in the value of our property, compared to other condominiums in our neighborhood, will change without professional management. We have many fine employees; professional management will enable us to maximize their efforts for all our benefit.
Mr. Axelrad – had several preliminary points: 1) when he ran for the Board, he made it clear that he had an open mind regarding the issue; 2) the building is in deteriorating condition; and 3) it is now clear to him that the Association needs to move to professional management. He feels that the current staff does an excellent job on financial operations but the Association needs more depth and breadth, knowledge and support. Legum and Norman has already pointed out certain savings that could be achieved on energy bills totaling tens of thousands of dollars. He feels it is the responsibility of the Board to vote for the change.
Ms. Fridell – stated she is voting against the proposal. During the due diligence process, she asked that the Board consider an internal restructuring of the current management system; however, they, which was rejected this possibilitynot done. She would feel much more comfortable moving to outside management if the Board had at least made a good faith effort to effect change based on specific measurable operating performance criteria, and had reached the conclusion that we simply were unable to meet our goals for improvement on our own. She would like to have seen the Board execute an internal restructuring and make wholehearted efforts to improve our operational issues on our own before moving to outside management.
She expressed the need for specific operating goals with measurable outcomes. She feels the Board should work harder with the current situation.
Mr. Bressler – noted that this is an important decision. He reviewed the presentation made last Wednesday night from Legum and Norman company representatives. Due to financial concerns, Hhe asked that the decision be postponed until after the refurbishment project is completed. He noted that communication has not been good the past several years but that any changes that need to be made can be done internally. He asked that if the motion passes, the Board furnish realistic estimateds contract and other of costs to the Association relating to the move to an outside management company. owners.
Ms. Barth – stated that the Elizabeth has been declining in property values and in quality of life. During careful study by the Board over the past year, three companies in the DC area were considered and Legum and Norman was the finalist. Benefits of engaging Legum and Norman include resources not available to individually managed properties and high levels of staff education and training. Legum and Norman’s engineering department can address the Elizabeth’s structural and mechanical problems. She has lived at the property for 30 years and cares about the community. Her fiduciary responsibility is to vote for outside management. Lastly, she noted that the Bylaws confirm her right to vote on the Board.
Dr. Muller – noted that legal counsel advised against discussing personnel in the meeting. He emphasized the Board’s responsibility to keep the Elizabeth competitive in today’s market and the increasing complaints about deteriorating conditions and services. He reminded residents that an open meeting was held four months ago to solicit residents’ input; the biggest concerns were cost and possible staff changes. These concerns have been addressed in the negotiations with Legum and Norman. He noted the cost-savings advantages of a large and experienced company and the access to backup. He is in favor of voting for the contract.
Ms. Kielty – had questions for Mr. Fisher regarding clauses in the proposed contract relating to who has the authority over employee hiring and firing. In all Board discussions it has been consistently stated that only the Board has the right to let go or fire staff, but the contract states that the Site Managers has the authority to discharge employees. Ms. Kielty also mentioned that during the L & N briefing, John stated that they would prefer that their management staff have the right to let staff go and that this issue was still not resolved. She pointed out that should the Association wish to convert to a a “financial managements only” only contract at some point in the future, having certain employees report to the outside company might make the switch difficult since it would also mean letting go of the site manager and the resident service coordinator, as well as any other new staff that are hired as L & N employees. She asked whether L&N would perform legal activities relating to collection services. Mr. Fisher confirmed that Lerch Early and Brewer would continue to provide collections this services. She was involved early on the decision-making process but has decided to vote against the proposal over the issue of hiring personnel. She also noted that the recent vote for new ECA board members was, in a sense, a referendum on outside management which suggested the vast majority of residents did not agree with the Board’s action on this issue. However, should the motion pass, she will work hard to implement the contract effectively.
Mr. Cunningham wrapped up by noting that the Board gives up none of its responsibilities by moving to an outside management company. He originally thought the problems could be solved by revamping the existing management structure but as a result of his day-to-day involvement, he now recognizes the advantages an outside company would bring.
Prepared statements read at the Board Meeting and provided after the meeting by the Board Members who delivered the statements are attached.
VOTE
Axelrad – FOR
Fridell – AGAINST
Bressler – AGAINST
Barth – FOR
Muller – FOR
Kielty – AGAINST
Cunningham – FOR
The motion passed, 4-3.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 pm.
Original draft prepared by Martha Morris, Recording Secretary
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
[This set of minutes were sent to me with Draft written at the top and does contain spelling errors on names. Alenier has bolded the purpose of this meeting.]
May 2009 Minutes of ECA Board Meeting
MINUTES OF REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.
MINUTES of a Regular Meeting of the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), held on May 12, 2009 in the Party Room of the Condominium pursuant to notice in accordance with the Bylaws. Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller.
The President called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the minutes of the Regular Meeting conducted on April 21, 2009 was made by Judi Barth with a second by Alexandra Kielty. The minutes were approved with all in favor except for Charles Bressler, who abstained.
PRESIDENT’S REPORT:
President Cunningham addressed the Annual Meeting proposal to remove him, which obtained only 3.4 % of the vote at the meeting. He emphasized that he holds no grudge against any proponent of the motion. President Cunningham also stated that he supports application of the Bylaws. He stated that despite contention, if and when the Board passes a motion, the Board works together to implement the motion.
After the Treasurer’s Report, President Cunningham reminded everyone of the forthcoming presentation by Legum and Norman on May 20 regarding a management contract and said an open Board meeting will be scheduled thereafter to consider and vote on a management contract.
President Cunningham expressed his concern about pinhole pipe leaks and asked that management be notified immediately if any resident observes a pinhole leak, day or night.
President Cunningham said that the tier 06 work continues but the jackhammer noise may be finished.
Alexandra Kielty and Carolyn Farrell discussed efforts made to use equipment to limit drainage leaks. Woody Cunningham returned to the pinhole leaks and said that the total issue will be examined.
Woody Cunningham invited Alexandra Kielty to express herself in light of her re-election to the Board. She thanked the owners (as did Monique Fridell during her report) and commented that the entire Board has shown itself to be concerned about residents’ opinions and have the welfare of all in mind
Charles Bressler said that he wants to thank his supporters, and that he wants the Board to work in harmony. He proposed that residents have 10 minutes to express themselves immediately after the President’s and Treasurer’s report in addition to 10 minutes later and wants to hear a report from management at each meeting.
TREASURER’S REPORT:
Asset Allocation
As of 4/30 we had $2.75 MM in cash and investments, 12 % higher YOY. We have $2.16 million in reserves, 15% higher balances YOY.
Monthly Performance
April financial statements reflect net income of almost $62K. This is understated due the fact that we have not received billing for a number of items, such as electricity, legal and engineering consulting services. Personnel was over budget as there were three pay periods last month. We will be revising downward the final month end income once we receive all our billing. In April we transferred almost $44K to reserves and spent almost $32K on garage repairs and an initial payment for the emergency generator.
FY 2009 Year to Date (YTD) Results
The Treasurer did not review the YTD results, since they would not be meaningful given the timing distortion of the April figures.
MANAGEMENT REPORT:
A copy of the Management Report (Regular Session Agenda), dated May 12, 2009 is available at the office
COMMITTEE REPORTS:
Energy Committee:
David Drazin relinquished the chair back to Joan Rosenbach. The next meeting will be Wednesday, May 13. She recommended that the Board move ahead to install the energy saving fixtures in the garage. The committee is investigating procuring new windows and invited any resident to share information with the committee.
Exercise Committee:
Alexandra Kielty presented discussion of committee recommendations for new [exercise] equipment and invited Jim Jones to comment. The committee will meet in two weeks.
Refurbishment Committee:
Judy Gann reported that the contract with Hartman has been signed and work has commenced on the design phase. The liaison committee that will meet with Hartman consists of Alexandra Kielty, Judi Barth and Judy Gann. The advisory committee which will advise the liaison committee consists of Sharon Bobb, Barbara Smith, Jerry Feldman and Joan Rosenbach. The Refurbishment Committee will meet with Hartman soon. Woody Cunningham commented that major decisions will be made by the Board.
Security:
Al Muller reported that: 1) additional money has been placed in next year’s budget for enhanced security surveillance, and 2) a specific section has been added to the draft contract being negotiated with Legum & Norman Management which will require a comprehensive evaluation of security operations and its staffing. After this report is obtained the issues will be brought to the Board and shared with residents for their input. Charles Bressler commented that when the garage is left open during move-ins/move-outs, for a period of hours, the driver should be asked to leave his driver’s license at the front desk.
Social Committee:
Judi Barth discussed the forthcoming All American Barbeque scheduled for June 14th, starting at 5:30 PM. The Committee is working on supplementing delicious food prepared by Lia’s chef, with really great entertainment. She thanked Marsha Feldman and Millie Silverman for their exceptional efforts in support of friendly social events.
OLD BUSINESS:
Contracts
Woody Cunningham explained that the reason for moving the meeting up a week is the necessity of having to approve ECA’s master insurance policies before our current policy expires on May 15. John Manougian Insurance/Fireman’s Fund was reported to have done a fine job of keeping our costs down. The cost of the current policy is approximately 1% higher than last year’s. A motion to approve the new master insurance policy was made by Al Muller and seconded by Judi Barth. This motion passed unanimously.
Under the new Maryland condo law, unit owners are responsible for the first $5000 deductible. . Also, the fidelity bond insurance increased as a result of new state requirements that associations insure three months’ worth of assessments and 100% of reserve funds. Carolyn Farrell proposed that Management send a reminder to owners regarding changes in this insurance deductible
Ratification of a contract to install drain pan in Unit 06, costing $6,000 with Structural Preservation Systems was discussed. A motion to approve was made by Alexandra Kielty and seconded by Al Muller. This motion was passed unanimously.
Woody Cunningham reported that the garage repairs in progress involve almost three times the physical area than was anticipated. He asked approval to extend the contract to include the additional work, estimated to increase the cost by approximately $30,000, although it could cost more. Woody Cunningham requested approval of a $30,000 increase at this time. A motion to approve was made by Jeffrey Axelrad and seconded by Charles Bressler. This motion was passed unanimously.
Budget
Monique Fridell discussed some of the proposed increases in 2010 budget categories. Discussion ensued as to the budget anticipating televisions in the exercise facility and whether this is what the users desire.
Woody Cunningham commented that there will be changes in individual items in the budget but the Board’s commitment is not to exceed the budget except in extraordinary circumstances.
A resident asked about the basis for condo fee increases. Monique Fridell responded that they are generally based on estimates of replacement costs for common elements from the Reserve Study, the first conducted since the 1970s, but that they were at the discretion of the Board. Woody Cunningham mentioned that the Five Year Plan which the Board will consider in the near future will be important. A motion to approve the FY 2010 budget was made by Al Muller and seconded by Monique Fridell. This motion was passed unanimously.
Additional Contracts
TrashAway’s proposed contract was the next order of business that WC raised. This contract is for $33,000, a 3% increase over last year. After discussion initiated by Al Muller, a motion to approve was made by Judi Barth and seconded by Charles Bressler. This motion was passed unanimously.
Complete Building Services, the company that services McQuay units, contract was the next contract considered. WC mentioned that prior contracts charged time and one-half for weekend work arranged by residents but this contract bars weekend work in order to manage costs. The contract price represents a 5% increase over last year. WC asked that management prepare a note on CBS’ services to send to residents. A motion to approve was made by Alexandra Kielty and seconded by Judi Barth. This motion passed unanimously.
Alexandra Kielty mentioned that she has heard from several residents that they want to keep Aquafit, our pool contractor, and solicited comments.
Discussion ensued by several Board members on the topic of obtaining competing bids on other contracts, including Aquafit, the auditors, and landscaping.
Judi Barth asked Carolyn Farrell whether the landscaping contract will include changes or modification (design) as well as maintenance of plants and landscape. Carolyn Farrell says the contract solicitation will be in the latter category.
COMMENTS FROM THE FLOOR:
A resident commented that lifeguards do not attend to business. The resident also says that there is not a pen available to sign in. Axelrad commented that if not for the legal requirement he would dispense with lifeguards and doesn’t see the harm of lifeguards doing more than staring blankly at the water. Many residents shouted their disagreement with this position.
A resident [Sharon Bobb] then commented on the absence of fire horns in the arcade offices. This resident also commented that ECA’s sample rental contract is not in accord with Montgomery County law and should be updated. Also, the resident commented that there is not a consolidated resident information data base to control data although we have lots of lists for particular purposes and the lists are inaccurate. She also complained of pets having accidents in the arcades. She mentioned the surveillance camera point that Al Muller commented upon and urged that board members again address pets and what is the definition of a “small” dog. She recommends that the Board look into the categorization used by the American Kennel Club and incorporate it into the Bylaws. She also said she had learned that arcade owners are under the impression that there are limits on whom owners can send to Board meetings in their stead and questioned whether there is, or should be a limit. She also addressed old toilets and leakage and recommended that the Board send a notice to residents that old toilets can break, find out the interest in replacing toilets and find a bulk price for replacement of toilets. She further said that ECA should retain an exercise physiologist to advise us on appropriate equipment for the exercise room.
A resident commented that she loves dogs, however, she recently encountered a very serious and dangerous situation. While dressed for a formal event on Saturday night, she entered an elevator which had liquid on the floor that she believed to be from dog urine. She complained that owners should take care of cleaning after their pets. She supported the idea of having effective surveillance cameras in elevators. She said our cleaning company is first rate and the cleaners are superb.
A resident identified himself as Jim Rich and said owners should take care of their dogs but noted that dripping swimsuits sometimes also leave puddles in elevators.
A resident commented about the voting process as a nominating committee member and voting judge. He handed written comments on the process to each Board member.
A resident commented on the previous comment concerning dogs, and restated the fact that some dog owners are not attending to their dogs. She expressed her concern.
Jeffrey Axelrad commented that he believes that we should definitely apply the enforcement policy to dog owner offenders.
A resident commented that some buildings do not allow renters to possess dogs. Al Muller commented that the rule is the same for renters as owners on the advice of a former counsel.
Monique Fridell commented that Sharon Bobb has done considerable work on the nominating process. Ms. Bobb prepared a document on the process that should be considered and implemented by the next election.
A resident commented that owners need to cleanup their pet accidents immediately.
Another resident suggested a reminder letter to registered pet owners. There was further general discussion of pet accidents.
Window replacement tax credits were mentioned by a resident. Woody Cunningham asked that information be shared with the Board.
A resident asked if the sales tax issue has been resolved. Carolyn Farrell commented that Pepco has agreed not to charge taxes in the future and we are being sent a form to confirm exemption from the tax and that may permit a refund to be obtained for some past payments. Washington Gas asked for an email and will remove the tax upon confirmation; we will need to complete a form to confirm exemption and receive a refund. Another resident asked if it had been the proposed management company, Legum and Norman, that alerted us to this cost saving; Woody Cunningham responded in the affirmative.
A resident suggested that our cleaners be asked to clean the party room. There were numerous comments of support for this proposal.
There were no additional comments from the floor.
The meeting was adjourned at 9:20 p.m.
Respectfully submitted,
Jeffrey Axelrad
Secretary
[These minutes were prepared Jeffrey Axelrad, 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.]
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.
MINUTES of a Regular Meeting of the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), held on May 12, 2009 in the Party Room of the Condominium pursuant to notice in accordance with the Bylaws. Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller.
The President called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the minutes of the Regular Meeting conducted on April 21, 2009 was made by Judi Barth with a second by Alexandra Kielty. The minutes were approved with all in favor except for Charles Bressler, who abstained.
PRESIDENT’S REPORT:
President Cunningham addressed the Annual Meeting proposal to remove him, which obtained only 3.4 % of the vote at the meeting. He emphasized that he holds no grudge against any proponent of the motion. President Cunningham also stated that he supports application of the Bylaws. He stated that despite contention, if and when the Board passes a motion, the Board works together to implement the motion.
After the Treasurer’s Report, President Cunningham reminded everyone of the forthcoming presentation by Legum and Norman on May 20 regarding a management contract and said an open Board meeting will be scheduled thereafter to consider and vote on a management contract.
President Cunningham expressed his concern about pinhole pipe leaks and asked that management be notified immediately if any resident observes a pinhole leak, day or night.
President Cunningham said that the tier 06 work continues but the jackhammer noise may be finished.
Alexandra Kielty and Carolyn Farrell discussed efforts made to use equipment to limit drainage leaks. Woody Cunningham returned to the pinhole leaks and said that the total issue will be examined.
Woody Cunningham invited Alexandra Kielty to express herself in light of her re-election to the Board. She thanked the owners (as did Monique Fridell during her report) and commented that the entire Board has shown itself to be concerned about residents’ opinions and have the welfare of all in mind
Charles Bressler said that he wants to thank his supporters, and that he wants the Board to work in harmony. He proposed that residents have 10 minutes to express themselves immediately after the President’s and Treasurer’s report in addition to 10 minutes later and wants to hear a report from management at each meeting.
TREASURER’S REPORT:
Asset Allocation
As of 4/30 we had $2.75 MM in cash and investments, 12 % higher YOY. We have $2.16 million in reserves, 15% higher balances YOY.
Monthly Performance
April financial statements reflect net income of almost $62K. This is understated due the fact that we have not received billing for a number of items, such as electricity, legal and engineering consulting services. Personnel was over budget as there were three pay periods last month. We will be revising downward the final month end income once we receive all our billing. In April we transferred almost $44K to reserves and spent almost $32K on garage repairs and an initial payment for the emergency generator.
FY 2009 Year to Date (YTD) Results
The Treasurer did not review the YTD results, since they would not be meaningful given the timing distortion of the April figures.
MANAGEMENT REPORT:
A copy of the Management Report (Regular Session Agenda), dated May 12, 2009 is available at the office
COMMITTEE REPORTS:
Energy Committee:
David Drazin relinquished the chair back to Joan Rosenbach. The next meeting will be Wednesday, May 13. She recommended that the Board move ahead to install the energy saving fixtures in the garage. The committee is investigating procuring new windows and invited any resident to share information with the committee.
Exercise Committee:
Alexandra Kielty presented discussion of committee recommendations for new [exercise] equipment and invited Jim Jones to comment. The committee will meet in two weeks.
Refurbishment Committee:
Judy Gann reported that the contract with Hartman has been signed and work has commenced on the design phase. The liaison committee that will meet with Hartman consists of Alexandra Kielty, Judi Barth and Judy Gann. The advisory committee which will advise the liaison committee consists of Sharon Bobb, Barbara Smith, Jerry Feldman and Joan Rosenbach. The Refurbishment Committee will meet with Hartman soon. Woody Cunningham commented that major decisions will be made by the Board.
Security:
Al Muller reported that: 1) additional money has been placed in next year’s budget for enhanced security surveillance, and 2) a specific section has been added to the draft contract being negotiated with Legum & Norman Management which will require a comprehensive evaluation of security operations and its staffing. After this report is obtained the issues will be brought to the Board and shared with residents for their input. Charles Bressler commented that when the garage is left open during move-ins/move-outs, for a period of hours, the driver should be asked to leave his driver’s license at the front desk.
Social Committee:
Judi Barth discussed the forthcoming All American Barbeque scheduled for June 14th, starting at 5:30 PM. The Committee is working on supplementing delicious food prepared by Lia’s chef, with really great entertainment. She thanked Marsha Feldman and Millie Silverman for their exceptional efforts in support of friendly social events.
OLD BUSINESS:
Contracts
Woody Cunningham explained that the reason for moving the meeting up a week is the necessity of having to approve ECA’s master insurance policies before our current policy expires on May 15. John Manougian Insurance/Fireman’s Fund was reported to have done a fine job of keeping our costs down. The cost of the current policy is approximately 1% higher than last year’s. A motion to approve the new master insurance policy was made by Al Muller and seconded by Judi Barth. This motion passed unanimously.
Under the new Maryland condo law, unit owners are responsible for the first $5000 deductible. . Also, the fidelity bond insurance increased as a result of new state requirements that associations insure three months’ worth of assessments and 100% of reserve funds. Carolyn Farrell proposed that Management send a reminder to owners regarding changes in this insurance deductible
Ratification of a contract to install drain pan in Unit 06, costing $6,000 with Structural Preservation Systems was discussed. A motion to approve was made by Alexandra Kielty and seconded by Al Muller. This motion was passed unanimously.
Woody Cunningham reported that the garage repairs in progress involve almost three times the physical area than was anticipated. He asked approval to extend the contract to include the additional work, estimated to increase the cost by approximately $30,000, although it could cost more. Woody Cunningham requested approval of a $30,000 increase at this time. A motion to approve was made by Jeffrey Axelrad and seconded by Charles Bressler. This motion was passed unanimously.
Budget
Monique Fridell discussed some of the proposed increases in 2010 budget categories. Discussion ensued as to the budget anticipating televisions in the exercise facility and whether this is what the users desire.
Woody Cunningham commented that there will be changes in individual items in the budget but the Board’s commitment is not to exceed the budget except in extraordinary circumstances.
A resident asked about the basis for condo fee increases. Monique Fridell responded that they are generally based on estimates of replacement costs for common elements from the Reserve Study, the first conducted since the 1970s, but that they were at the discretion of the Board. Woody Cunningham mentioned that the Five Year Plan which the Board will consider in the near future will be important. A motion to approve the FY 2010 budget was made by Al Muller and seconded by Monique Fridell. This motion was passed unanimously.
Additional Contracts
TrashAway’s proposed contract was the next order of business that WC raised. This contract is for $33,000, a 3% increase over last year. After discussion initiated by Al Muller, a motion to approve was made by Judi Barth and seconded by Charles Bressler. This motion was passed unanimously.
Complete Building Services, the company that services McQuay units, contract was the next contract considered. WC mentioned that prior contracts charged time and one-half for weekend work arranged by residents but this contract bars weekend work in order to manage costs. The contract price represents a 5% increase over last year. WC asked that management prepare a note on CBS’ services to send to residents. A motion to approve was made by Alexandra Kielty and seconded by Judi Barth. This motion passed unanimously.
Alexandra Kielty mentioned that she has heard from several residents that they want to keep Aquafit, our pool contractor, and solicited comments.
Discussion ensued by several Board members on the topic of obtaining competing bids on other contracts, including Aquafit, the auditors, and landscaping.
Judi Barth asked Carolyn Farrell whether the landscaping contract will include changes or modification (design) as well as maintenance of plants and landscape. Carolyn Farrell says the contract solicitation will be in the latter category.
COMMENTS FROM THE FLOOR:
A resident commented that lifeguards do not attend to business. The resident also says that there is not a pen available to sign in. Axelrad commented that if not for the legal requirement he would dispense with lifeguards and doesn’t see the harm of lifeguards doing more than staring blankly at the water. Many residents shouted their disagreement with this position.
A resident [Sharon Bobb] then commented on the absence of fire horns in the arcade offices. This resident also commented that ECA’s sample rental contract is not in accord with Montgomery County law and should be updated. Also, the resident commented that there is not a consolidated resident information data base to control data although we have lots of lists for particular purposes and the lists are inaccurate. She also complained of pets having accidents in the arcades. She mentioned the surveillance camera point that Al Muller commented upon and urged that board members again address pets and what is the definition of a “small” dog. She recommends that the Board look into the categorization used by the American Kennel Club and incorporate it into the Bylaws. She also said she had learned that arcade owners are under the impression that there are limits on whom owners can send to Board meetings in their stead and questioned whether there is, or should be a limit. She also addressed old toilets and leakage and recommended that the Board send a notice to residents that old toilets can break, find out the interest in replacing toilets and find a bulk price for replacement of toilets. She further said that ECA should retain an exercise physiologist to advise us on appropriate equipment for the exercise room.
A resident commented that she loves dogs, however, she recently encountered a very serious and dangerous situation. While dressed for a formal event on Saturday night, she entered an elevator which had liquid on the floor that she believed to be from dog urine. She complained that owners should take care of cleaning after their pets. She supported the idea of having effective surveillance cameras in elevators. She said our cleaning company is first rate and the cleaners are superb.
A resident identified himself as Jim Rich and said owners should take care of their dogs but noted that dripping swimsuits sometimes also leave puddles in elevators.
A resident commented about the voting process as a nominating committee member and voting judge. He handed written comments on the process to each Board member.
A resident commented on the previous comment concerning dogs, and restated the fact that some dog owners are not attending to their dogs. She expressed her concern.
Jeffrey Axelrad commented that he believes that we should definitely apply the enforcement policy to dog owner offenders.
A resident commented that some buildings do not allow renters to possess dogs. Al Muller commented that the rule is the same for renters as owners on the advice of a former counsel.
Monique Fridell commented that Sharon Bobb has done considerable work on the nominating process. Ms. Bobb prepared a document on the process that should be considered and implemented by the next election.
A resident commented that owners need to cleanup their pet accidents immediately.
Another resident suggested a reminder letter to registered pet owners. There was further general discussion of pet accidents.
Window replacement tax credits were mentioned by a resident. Woody Cunningham asked that information be shared with the Board.
A resident asked if the sales tax issue has been resolved. Carolyn Farrell commented that Pepco has agreed not to charge taxes in the future and we are being sent a form to confirm exemption from the tax and that may permit a refund to be obtained for some past payments. Washington Gas asked for an email and will remove the tax upon confirmation; we will need to complete a form to confirm exemption and receive a refund. Another resident asked if it had been the proposed management company, Legum and Norman, that alerted us to this cost saving; Woody Cunningham responded in the affirmative.
A resident suggested that our cleaners be asked to clean the party room. There were numerous comments of support for this proposal.
There were no additional comments from the floor.
The meeting was adjourned at 9:20 p.m.
Respectfully submitted,
Jeffrey Axelrad
Secretary
[These minutes were prepared Jeffrey Axelrad, 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.]
An Easy $3,430 Savings For the Elizabeth Condominium
Fellow Elizabethans --
Below is a memo I just sent the Board suggesting a way they can save us $3,430. If you think this is a worthy action for them to take, you might want to let them know your feelings. Thanks. Molly
June 17, 2009
To: Board of Directors
Elizabeth Condominium
From: Molly Frantz
Apartment #1007
Subject: An Easy $3,430 Savings For the Elizabeth Condominium
Recommendation: The Board of Directors Require All Owners to Pay Their Condominium Fees via EFT
About 170 owners already use electronic funds transfer (EFT) to pay their condominium fee. It is fair to assumed that they will want to immediately continue using this condo fee payment method, thereby saving the Elizabeth Condominium $2,975. A timely decision by the Board requiring all Elizabeth owners to begin paying their condominium fees via EFT will result in an additional $3,430 in savings to the Condominium. Overall, the Elizabeth Condominium would save $6,405.
I base this statement on comments by Ms. Patricia DuBuque, L&N’s Executive VP for Community Management. Ms. DuBuque, at last night’s Board meeting, indicated that L&N would waive the $17.50 EFT set-up fee for any EFT established in the first three months of the contract. Each EFT established after this time period will obligate the Elizabeth Condominium to pay L&N $17.50. As the Elizabeth Condominium has 353 residential and 13 commercial paying owners, the potential savings from requiring all condominium fee payments via EFT is $6,405 (or 366 paying owners times $17.50). The Elizabeth Condominium will realize $2,975 (170 paying owners times $17.50) without the Board taking any action. It could save an addition $3,430 with Board action.
Paying Condominium fees via EFT has many advantages. I.e., payments to the Elizabeth are assured of both being made and being timely; there would be fewer delinquencies and associated collection costs; there would be less bank fees involved; the opportunity for accounting errors would be reduced; and individuals would not have to pay for postage each month. Drawing from Mr. Axelrad’s "Comments on Professional Management", one of the reasons for going to outside management was to replace our "antiquated" financial system. "Legum & Norman can operate our financial systems in a more modern manner that actually costs less than our present system." Certainly replacing the processing of condominium fee checks by hand with an electronic system would be a case in point. I expect that this Board (or a successor Board) will make this change at some point in time. I would argue "Why not now?" when we can realize savings.
I think it is safe to say that most -- if not all -- owners would like to keep their condominium fees as low as possible. These are real -- not paper -- savings. Money that would otherwise be paid to L&N will be freed up for other necessary and unavoidable Condominium expenses. For instance, $3,430 would pay for nearly a quarter of the $13,913 unbudgeted, but necessary expenditure the Board approved last night to pay the Densel Company to repair the main chiller.
Below is a memo I just sent the Board suggesting a way they can save us $3,430. If you think this is a worthy action for them to take, you might want to let them know your feelings. Thanks. Molly
June 17, 2009
To: Board of Directors
Elizabeth Condominium
From: Molly Frantz
Apartment #1007
Subject: An Easy $3,430 Savings For the Elizabeth Condominium
Recommendation: The Board of Directors Require All Owners to Pay Their Condominium Fees via EFT
About 170 owners already use electronic funds transfer (EFT) to pay their condominium fee. It is fair to assumed that they will want to immediately continue using this condo fee payment method, thereby saving the Elizabeth Condominium $2,975. A timely decision by the Board requiring all Elizabeth owners to begin paying their condominium fees via EFT will result in an additional $3,430 in savings to the Condominium. Overall, the Elizabeth Condominium would save $6,405.
I base this statement on comments by Ms. Patricia DuBuque, L&N’s Executive VP for Community Management. Ms. DuBuque, at last night’s Board meeting, indicated that L&N would waive the $17.50 EFT set-up fee for any EFT established in the first three months of the contract. Each EFT established after this time period will obligate the Elizabeth Condominium to pay L&N $17.50. As the Elizabeth Condominium has 353 residential and 13 commercial paying owners, the potential savings from requiring all condominium fee payments via EFT is $6,405 (or 366 paying owners times $17.50). The Elizabeth Condominium will realize $2,975 (170 paying owners times $17.50) without the Board taking any action. It could save an addition $3,430 with Board action.
Paying Condominium fees via EFT has many advantages. I.e., payments to the Elizabeth are assured of both being made and being timely; there would be fewer delinquencies and associated collection costs; there would be less bank fees involved; the opportunity for accounting errors would be reduced; and individuals would not have to pay for postage each month. Drawing from Mr. Axelrad’s "Comments on Professional Management", one of the reasons for going to outside management was to replace our "antiquated" financial system. "Legum & Norman can operate our financial systems in a more modern manner that actually costs less than our present system." Certainly replacing the processing of condominium fee checks by hand with an electronic system would be a case in point. I expect that this Board (or a successor Board) will make this change at some point in time. I would argue "Why not now?" when we can realize savings.
I think it is safe to say that most -- if not all -- owners would like to keep their condominium fees as low as possible. These are real -- not paper -- savings. Money that would otherwise be paid to L&N will be freed up for other necessary and unavoidable Condominium expenses. For instance, $3,430 would pay for nearly a quarter of the $13,913 unbudgeted, but necessary expenditure the Board approved last night to pay the Densel Company to repair the main chiller.
BBQ -- Excellent Food, Friendship, Weather!
Someone at the Elizabeth (kudos to Judi Barth) really knows how to put on a good party and whoever watches over gave us the most picture perfect evening. Judi got her friends from Lia's Restaurant to manage the cooking of the food and lots of Elizabeth volunteers to help decorate and assemble the "fixins." The patio looked beautiful and the music added spirit. It was a well attended event with all ages represented.
Friday, June 5, 2009
Update from the Refurbishment Committee
On June 4, 2009, the Refurbishment Committee including the steering group (Judi Barth, Judy Gann—absent, and Alexandra Kielty) and advisory group (Sharon Bobb—absent, Jerry Feldman, Joan Rosenbach, Barbara March Smith) met to discuss the options that were presented to the steering group by Phyllis Hartman. The Hartman Group has prepared CAD drawings to map out the areas of work. Fabrics and carpet samples were shown to the steering group.
In order to ensure the integrity of any refurbishment work, President Woody Cunningham has told the Refurbishment Committee that he will pursue calling in outside engineers to evaluate and recommend repairs to any problems areas of the building that might potentially cause problems.
The process is off to a good start that the joint committee feels excited about. The steering group will brief the ECA Board on the status of the project at the June 16 Board meeting.
In order to ensure the integrity of any refurbishment work, President Woody Cunningham has told the Refurbishment Committee that he will pursue calling in outside engineers to evaluate and recommend repairs to any problems areas of the building that might potentially cause problems.
The process is off to a good start that the joint committee feels excited about. The steering group will brief the ECA Board on the status of the project at the June 16 Board meeting.