Present at the meeting: Woody Cunningham, Jeffrey Axelrad, Judi Barth, Charles Bressler, Monique Fridell, Alexandra Kielty, Al Muller, Scott Murdoch, Tracy ? (DeLeon & Stang auditor).
Election committee announced: Karren Alenier, Peg Downey, Sharon Bobb, Jerry Feldman. This committee will evaluate an automated voting system now used at the Carleton. The Committee will also search for and vet candidates for next Board election.
Expected to have new pet registration forms ready but due to the weather that is still forthcoming.
Monique Fridell will schedule a meeting in January to go over the financials. She has done this in other years.
Discussion of the audit. Delinquencies went up a little bit but not much and that’s impressive given the economic climate. Operating equity is good based on percent of income. Electricity over budget. It increased about 19%. On target for natural gas and a little under budget for water and sewage. The equity account is in good shape.
MOTION: Audit approved.
Copies will be available now that the Board has approved the audit.
Transitioning to Morgan Stanley accounts. Ongoing.
Establishing a line of credit: in the event of an unplanned expense. Gives us back up liquidity. Monique has looked into 5 banks and has 3 quotes. Some banks charge a commitment fee. BB&T and Community Bank charge fees. Al Muller suggested using Morgan Stanley since we already have a relationship with them and there is no fee. Monique Fridell did an analysis and she agrees Morgan Stanley is the best choice.
MOTION: Approved establishing a line of credit with Morgan Stanley.
Piping project will be completed by 2nd or 3rd week of January. Emergency generator will be delivered soon.
MOTION: TO hire NSA architects. Approved.
Lighting: good results in garage and want to do additional work in stairwell and offices. About $12,500 additional funds needed.
MOTION: Extend the lighting contract. Approved.
Water detectors one per apartment. Need more info before Board decides to go ahead. Unit owners could buy additional detectors if they choose.
$2600 added last meeting to renovation contract relative to the exercise room. Drawings would be made. Would deal with spacing of equipment. Woody voiced concerned about distracting from the larger renovation contract.
MOTION: approved add-on contract for exercise room.
Landscaping: nothing has been done.
Problem with our snow removal. Contractor was not given instruction to clear our driveway.
Energy Committee looking into new Government program called Cash for Caulkers. This is suppose to address window and door replacement.
248 homeless people received gift boxes from Elizabeth residents. Project was spearheaded by Peg Downey.
Last week met with Hartman Design Group. First meeting since October. Architect needs to draw up plans and take it to the County for approval. Need about one month for turnaround. February when plans come back, plans will go out for bid to hire contractors. Maybe by March the Board will be voting on the general contractor. Renovation won’t start until beginning of April if all goes well. It will take 6 months for the work to get done on the first floor.
Friday, December 25, 2009
Wednesday, December 23, 2009
November 2009 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting November 16, 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:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan .............Property Manager, Legum & Norman
Jana Bowcut ...............Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:30 pm.
Approval of Minutes:
MOTION
Dr. Muller moved, Ms. Fridell seconded, to approve the October 13, 2009, meeting minutes. The motion passed unanimously.
President’s Report
Mr. Cunningham stated that the heat will be shut off for three days for the ongoing piping work. He added that most projects are progressing as planned, with the exception of the emergency generator project, which has fallen behind schedule. Meetings will be held in the coming week to discuss ways to accelerate the project.
A committee is being formed to oversee the nomination and election process, which includes recruiting well-qualified residents to serve as board members. Mr. Murdoch described an electronic balloting system available from Legum & Norman; each unit is issued a ballot with a barcode and when scanned, results are quickly calculated based on the weighted vote, quorum and individual votes. The cost of the system is $2 per unit and the results are immediate.
A communications committee is also needed to develop an effective e-mail system and official website for the Association. Mr. Cunningham requested that owners interested in serving on the committee, or nominating a resident to serve on a committee, notify the Board.
Treasurer’s Report:
Ms. Fridell reported that the Association’s accountant, DeLeon & Stang, provided a draft of the FY 2009 audited financial statements. Mr. Murdoch and Ms. Fridell will discuss their comments with DeLeon & Stang. Other board members are welcome to attend. The audit manager will attend the December board meeting to formally present the financial statements to residents and the Board.
A brokerage account has been opened at Morgan Stanley. Ms. Fridell will meet with the account officer in the coming week to make an initial deposit and begin transferring maturing investments to the account.
It was noted that the Association’s financial statements are still not accurate, despite the diligent work of Ms. Fridell and Mr. Murdoch. There are many types of errors including accounting classification errors. Ms. Fridell noted that she does not see any benefit to outsourcing financial management compared to self-management with regard to investments, accounting or delinquency management. She asked that Legum & Norman commit to having these statements entirely correct by December, which is half-way through the Association’s fiscal year.
Mr. Murdoch agreed that previous financial statements have shown areas that need to be addressed such as allocation of expenses. He will review the October statement with Ms. Fridell and expressed his commitment to making all of the necessary corrections.
Delinquencies currently total $34,000. Legum & Norman has effectively cleared out those delinquencies that resulted from confusion about the new lock box.
Ms. Fridell has received two proposals for a line of credit and three other banks are waiting for financial information from the Association. Therefore, all financial statements need to be corrected before providing the information to the banks. Ms. Fridell will then review the five proposals and make a recommendation to the Board.
Ms. Fridell asked that the following resolutions be considered by the board: (1) obtain a written opinion from legal counsel, Lerch Early, to ensure that borrowings are not prohibited by the Association’s by-laws; and (2) authorize
Legum & Norman to transfer the approximately $90,000 tax refund from the operating to the reserve funds, which intention was stated by the Board President in September 2009.
Mr. Axelrad stated that according to amendments made to the open meeting act, discussion of consultation with legal counsel should occur in Executive Session. Mr. Cunningham deferred this issue to Executive Session.
MOTION:
Mr. Bressler moved, Ms. Barth seconded, to approve the transfer of approximately $90,000 from the operating to the reserve funds. The motion passed unanimously.
Old Business:
a. Lighting- Mr. Cunningham stated that he received positive feedback about the lighting changes in the basement, noting that the changes have also proven to be cost effective. Mr. Horan affirmed that there has been a noticeable decrease in energy usage. He is awaiting a proposal for additional lighting upgrades to the pool, exercise room and some stairwells.
b. Asbestos abatement- Mr. Cunningham reported that the asbestos abatement project has been completed.
c. Lobby horizontal piping- The horizontal piping is approximately 50 percent completed. Both residents and board members reported that the workmen have been considerate and the workmanship is of good quality.
d. Emergency generator- The new generator has not been delivered and cannot be installed until some decisions are made about elements in the electrical room. Ms. Horan and Mr. Murdoch are working on this and will bring in another consulting engineer to speed up the work if necessary.
e. Façade work- The work will be completed by early December. Mr. Horan apologized for the dust that has resulted from the project and will assist in getting balconies cleaned off.
f. Pet policy- Mr. Cunningham thanked the Pet Policy Committee who presented a report at the October 13, 2009, meeting; the report has been made available to all residents. Dr. Muller provided a three-page analysis of the committee’s report, which included some additional information not available to the committee. This analysis is attached to the meeting minutes and summarized below:
Dr. Muller commended the committee’s report, stating that it was well-researched, provided useful comparisons of pet policies of other condominium buildings and made apt reference to the Association’s by-laws and house rules. He added that the report identified two problems with pets in the building: (1) some dog owners have allowed pets to eliminate in public areas without cleaning up after them, and (2) owners violating pet policies have not been reported to management. Since the committee was formed, the Board approved the following to resolve these problems: (1) notices were hung in public areas to remind pet owners about their responsibilities, and (2) management has had new security cameras installed in public areas and the arcades to identify those owners and dogs in violation. According to management, incidents have decreased. Dr. Muller added that the suggestion made by the committee about a referendum to change the by-laws is not feasible, given the 66% ownership favorable vote requirement. He added that detailing the weight of a dog would not be helpful since small dogs have been responsible for many of the incidents. The weight limits imposed at other condominium buildings vary widely, ranging from 25 to 70 pounds. The committee’s report did mention that the Carleton views pet allowance as a financial benefit to the building by increasing resale value. Not mentioned in the committee’s report was that the assisted living building is pet friendly, with owners feeling that there is therapeutic value in allowing pets on the property.
One issue that was not raised in the report was that some residents and staff are afraid of dogs. Dr. Muller stated that although the pet policy was known before they came to live or work on the property both sides need to be tolerant and courteous to each other. He added that elevators are intended to transport people with and without dogs, and that controversy can be avoided by waiting for the next elevator or kindly asking a dog owner to board the next elevator.
Dr. Muller made the following recommendations:
1) Adopt the committee’s suggestions about an updated registration form, which should include a photo of the dog.
2) Post notices in the elevator to remind residents to report transgressions
3) Enforce the recently approved House Rules, which calls for penalizing repeat offenders
4) Encourage dog owners and non-dog owners to treat each other with respect
Charles Bressler suggested that a limit of 35lbs be instituted by the Board after stating that the present dog community
in the Elizabeth was weighing 35 pounds or under. The Board did not adopt this suggestion.
Ms. Fridell suggested having a picture of the dog owner included on the registration form to help with enforcement.
Mr. Axelrad expressed sadness at the lack of understanding of the tolerance and friendliness values that dogs bring to a community, including to non-pet owners, and regret that the committee’s report did not include any suggestions of how to make the building more dog-friendly.
Ms. Barth suggested that because of the new lobby renovation, dogs be taken in and out of the building through a side entrance to prevent any accidents on the new furnishings. Dr. Muller responded that the lobby entrance and pathways to the elevators will not be carpeted and animals do not typically eliminate on the carpeted areas. This would pose an inconvenience to those dog owners bringing in groceries or picking up mail. Ms. Kielty added that the refurbishment is being done to create a better environment for residents, and that it shouldn’t make the building less welcoming by not allowing dogs to walk through the lobby.
Ms. Barth expressed concerns about safety, referring to past incidents of residents being bitten and pet urine on the marble floor causing a danger of slipping. Ms. Kielty argued that the number of incidents does not warrant dogs and owners using other exits. Dr. Muller stated that he has witnessed dog owners cleaning up after their dogs on the lobby floor, and that water dripped from pool users is just as dangerous.
Some board members stated that there should be a weight limit on dogs. Dr. Muller stated that imposing weight restrictions do not address the defined problems and that the original by-laws did not define a weight limit.
Dr. Muller moved, Ms. Kielty seconded, to approve and adopt the recommendations put forth by
Dr. Muller. The motion passed unanimously.
Ms. Fridell suggested some additions to the registration form: the responsibilities of the pet owner should be better explained, a picture of the dog and owner should be included, the tag number should specify the Montgomery County License Number, and vaccination dates should be provided to management. She added that a fine should be assessed if a pet owner fails to register his or her pet within a specified time, management should develop a system for managing this information and wording should be included to indicate the weight of the dog for identification purposes.
MOTION:
Ms. Fridell moved, Ms. Kielty seconded, to approve the suggested additions to the pet registration form. The motion passed with one abstention by Mr. Axelrad (6-0-1).
.
Mr. Cunningham asked Ms. Fridell to work with management to update the form.
New Business:
a. Radios- Mr. Horan stated that the staff’s current two-way radios are old and in need of replacement; proposals have been received from several companies. Teltronic, the only company who visited on-site, conducted tests on the roof and basement to assess what equipment would be needed. They recommend placing a repeater in the management office to boost the signal of the radios being used in the building. This would enable engineers to use the radios within two to three miles of the building. Teltronic quoted a price of $5,600, but would be decreased by $2,300 if a repeater is not included. There is a three-year warranty on the system. The system could be set up within 30 days.
Ms. Fridell stated that the previous management recommended obtaining new radios and this proposal is in line with their recommendation. Board members inquired whether it would be more cost effective to have cell phones for staff instead of radios. Ms. Barth stated that there are places in the building where service is not possible.
Ms. Kielty moved, Ms. Barth seconded, to approve the $5,600 Teltronic proposal for new radios. The motion passed unanimously by acclamation.
b. Front mats- Mr. Horan recommended replacing the weather mats, which are laid during inclement weather to prevent slipping. The new mats would be heavy gauge and could be stored in a room on the West side by the elevator. Ms. Fridell proposed waiting until after the construction is finished, but Mr. Horan responded that the mats could be put away if they got in the way of the renovation. The decorating committee should select the color of the mats.
MOTION:
Ms. Barth moved, Mr. Axelrad seconded, to approve replacing the lobby mats. The motion passed, with Ms. Fridell opposing (6-1-0).
c. Water detectors- Mr. Horan reported that he had begun looking into the cost of water detectors, noting that prices range from $10 to $30. Mr. Cunningham asked that the Board consider providing one unit for each condominium to be placed near the washer and dryer and make another one available for residents to purchase. Mr. Horan will gather additional information.
d. Lobby renovation project- Mr. Cunningham stated that the lobby renovation project is at the point where permits are needed from the County. In preparation for this, an architect and mechanical/electrical subcontractors are needed to review and approve the drawings. An architect, recommended by the Hartman Design Group, has provided the Board with a proposal. The Board was concerned that the quoted rates are hourly and asked Mr. Murdoch to negotiate a fixed price.
Mr. Cunningham asked for approval from the Board for Mr. Murdoch to negotiate a contract within the range of $11,700. Mr. Murdoch stated that in addition to the architect’s time, estimated at 120 hours at $80 per hour, there is a fixed contract between him and a mechanical or electrical contractor’s time of $11,750. He stated that the cost may be less depending on the scope of the work needed.
Mr. Bressler expressed concern that the Board is being asked to approve large expenditures, but has still not seen drawings and illustrations. Board members expressed their struggle to understand how permits can be obtained for areas that may ultimately not be renovated. Ms. Barth clarified that documents are being prepared to complete renovations for the entire first floor lobby. After the permits are obtained, the construction bids will dictate how much of the work the Association can afford to complete. Ms. Barth stated that drawings and illustrations will be available in January. Documents will be completed in December and then a bidding process will take place in January to secure a general contractor. In February, there will be boards with furnishing options to view.
Ms. Fridell stated that she needs a specific timeline when major expenditures are expected in order to ensure that there are reserve funds available at the right time. Ms. Barth stated that she would provide that.
Ms. Fridell also inquired about the expenditures chart in the Management Report, Section D, which lists $70,000 for Hartman Design Group. Ms. Barth clarified that that amount is for the design work only.
Mr. Axelrad emphasized that the Association should ensure that the architect provides a fixed fee for obtaining the necessary permits. Mr. Cunningham stated that the architect was new to the project and didn’t have a clear sense of what was needed yet. It is also difficult to guarantee a price on the whole process since the County may go back and forth with the Association with various requests. Mr. Axelrad stated that the architect would be aware of this and could still incorporate it into a fixed price. Ms. Barth clarified that the money for the architect and the electrical engineer should come out of the construction budget, not the design budget.
Dr. Muller moved, Ms. Kielty seconded, to authorize Mr. Murdoch to negotiate a possible fixed-price contract, starting at a minimum of $10,000. The motion passed, with one abstention by
Mr. Axelrad (6-0-1).
Ms. Fridell expressed concern about the way this motion was presented, in that the Board should be provided with an actual proposal. Auditors have cited the Board about being lax on documenting contract decision-making and therefore a vote should have been taken only on the final contract. Board members stated that they had to grant authorization for the contract to be negotiated.
Ms. Kielty inquired about having some superficial work done such as painting the doors of the arcade and exercise areas. Mr. Bressler added that the awning also needs to be repaired. Mr. Horan stated that the doors can be painted at any time. The awning has been previously addressed, but continues to leak.
e. Future meeting dates-
MOTION:
Ms. Barth moved, Ms. Kielty seconded, to move the regular board meetings to the third Monday of each month. The motion passed unanimously by acclamation.
The Board agreed to hold its next meeting on December 21, 2009.
Committee Reports:
-Exercise Committee: Ms. Kielty reported that the exercise committee met in late October. The committee developed a strategy about proceeding with procuring new exercise equipment and utilizing the budget that has been approved for the exercise area. The committee envisions a redesign of the area and will obtain information from the Hartman Design Group about what equipment should be purchased and a space design to be included in a RFP to go out to vendors.
Ms. Kielty met with Elise Moore at the Hartman Design Group, who provided an estimated planning cost. The quoted price was $2,600, which includes drawings for $180, site measurement and verification for $700, a second site measurement and verification for $600, and space planning of the area for $1,120. Ms. Kielty feels that this is a conservative approach and will ensure that the rest of the funds budgeted for this area will be utilized effectively.
Ms. Barth stated that the Hartman Group recently conducted a walkthrough of the pool and exercise areas to take photographs and make recommendations. They will send a narrative of information and the committee will make a decision about whether to proceed with the recommendations. Ms. Kielty stated that she did receive the narrative, but did not understand the context when she received it. She stated that she will forward the narrative to Ms. Barth and members of the committee. The narrative included suggestions such as replacing ceiling tiles, making the stairwell and bathrooms code compliant, and removing the rug-like material on the walls and repainting or wallpapering.
Mr. Cunningham stated that these costs should not be integrated with the renovation costs of the first floor. The Board briefly discussed the accounts from which these funds should be taken.
Ms. Fridell stated $17,947 is budgeted for exercise equipment in 2010, and then in years 2011-2012, $75,000 is budgeted for renovations. Any expenditures now would be have to be taken from funds allocated for future years and would need to be reflected in next year’s budget. Ms. Fridell stated that there needs to be a hard-copy proposal presented to the Board. Ms. Kielty stated that she would have Hartman Design Group prepare a written estimate.
Dr. Muller asked the Committee to reconsider leasing a blood pressure machine for three months. Ms. Kielty stated that many Committee members did not support leasing the machine because they were unclear where the funds would come from, and did not want the funds taken from the exercise room budget. They also felt that individuals should purchase their own machine or utilize other avenues if they had a concern about their blood pressure. Dr. Muller assured the Board that his intent was to charge the “other amenities” line item, and not take from the exercise room budget. He also emphasized that the $450 cost he estimated was not an expensive item, especially when compared with the many more expensive items just approved. Dr. Muller stated that, in his view, the machine would provide residents with a 24/7 additional amenity, and be more convenient than travelling to the Community Center, drug store, or physician’s office. Dr. Muller put forth a motion to approve leasing a blood pressure machine, but the motion failed for lack of a second.
Mr. Cunningham asked Mr. Horan about the compatibility of the security screen size at the front desk after the renovations. Mr. Horan will discuss the issue with the security company.
Dr. Muller stated that a resident expressed concern about the use of the engineers at the front desk. He explained that they are not scheduled to be at the front desk, but all members of the Elizabeth staff do occasionally cover the front desk so that staff can take necessary breaks. The night security guard covers the desk while that staff person takes her dinner break.
-Social Committee: Ms. Barth reported that the Halloween party was a success and thanked all those who helped. Upcoming activities include:
• November 22, 2009- a brunch in the West lobby with the omelet chef. A few seats remain.
• December 5, 2009- the community box event to provide toiletries and hats for the homeless.
• December 13 or 20, 2009- the annual holiday party. A RSVP is required to attend and residents should look for invitations in their boxes.
Dr. Muller stated that the jack hammering going on at a nearby building will continue for the next two weeks between 5pm and 9pm. He also reported that a new County recreation center is now open on Friendship Boulevard, within a short walking distance, and those individuals older than 55 can use the weight rooms free of charge from 9am to 2pm.
Comments from the floor:
-A resident expressed appreciation for the management company and the workmen who completed the pipe work. She added that she has observed pet owners being more considerate since the discussion began on the pet policy. She suggested that small signs be posted to remind owners that dogs should not be allowed to urinate on the landscaped areas.
-A resident asked about the status of delinquencies. Ms. Fridell stated that the $34,000 comprises over 1% of the annual condominium fee receivables and 12% of the monthly receivables. She added that the number is low, but continues to increase. There are currently nine (9) unit delinquencies and 9 parking space delinquencies.
- A resident asked whether the Board has considered painting the pillars and walls in the garage. He added that there have also been long delays for a working elevator. He also asked about the status of changing the door locks. Mr. Horan stated that the price on the locks is reasonable, and 89 residents have signed up. He is aware of the elevator delays and is working to address the issue.
-A question was posed by a resident about when and what type of equipment will be installed in the exercise room. He expressed concern that some of the equipment is broken and added that there was a need for another recumbent bicycle and elliptical trainer. Ms. Kielty answered that the committee is working to develop a clear, long-range plan about the change in equipment. The committee did not meet over the summer, which delayed the decision-making process.
-A resident expressed concern about the pipe work in the lobby and elevator area, specifically questioning whether the pipes will be insulated one from another. Mr. Cunningham assured the resident that there is oversight to ensure that the work is being done correctly.
Adjournment: The President adjourned the meeting at 9:55 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting November 16, 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:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan .............Property Manager, Legum & Norman
Jana Bowcut ...............Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:30 pm.
Approval of Minutes:
MOTION
Dr. Muller moved, Ms. Fridell seconded, to approve the October 13, 2009, meeting minutes. The motion passed unanimously.
President’s Report
Mr. Cunningham stated that the heat will be shut off for three days for the ongoing piping work. He added that most projects are progressing as planned, with the exception of the emergency generator project, which has fallen behind schedule. Meetings will be held in the coming week to discuss ways to accelerate the project.
A committee is being formed to oversee the nomination and election process, which includes recruiting well-qualified residents to serve as board members. Mr. Murdoch described an electronic balloting system available from Legum & Norman; each unit is issued a ballot with a barcode and when scanned, results are quickly calculated based on the weighted vote, quorum and individual votes. The cost of the system is $2 per unit and the results are immediate.
A communications committee is also needed to develop an effective e-mail system and official website for the Association. Mr. Cunningham requested that owners interested in serving on the committee, or nominating a resident to serve on a committee, notify the Board.
Treasurer’s Report:
Ms. Fridell reported that the Association’s accountant, DeLeon & Stang, provided a draft of the FY 2009 audited financial statements. Mr. Murdoch and Ms. Fridell will discuss their comments with DeLeon & Stang. Other board members are welcome to attend. The audit manager will attend the December board meeting to formally present the financial statements to residents and the Board.
A brokerage account has been opened at Morgan Stanley. Ms. Fridell will meet with the account officer in the coming week to make an initial deposit and begin transferring maturing investments to the account.
It was noted that the Association’s financial statements are still not accurate, despite the diligent work of Ms. Fridell and Mr. Murdoch. There are many types of errors including accounting classification errors. Ms. Fridell noted that she does not see any benefit to outsourcing financial management compared to self-management with regard to investments, accounting or delinquency management. She asked that Legum & Norman commit to having these statements entirely correct by December, which is half-way through the Association’s fiscal year.
Mr. Murdoch agreed that previous financial statements have shown areas that need to be addressed such as allocation of expenses. He will review the October statement with Ms. Fridell and expressed his commitment to making all of the necessary corrections.
Delinquencies currently total $34,000. Legum & Norman has effectively cleared out those delinquencies that resulted from confusion about the new lock box.
Ms. Fridell has received two proposals for a line of credit and three other banks are waiting for financial information from the Association. Therefore, all financial statements need to be corrected before providing the information to the banks. Ms. Fridell will then review the five proposals and make a recommendation to the Board.
Ms. Fridell asked that the following resolutions be considered by the board: (1) obtain a written opinion from legal counsel, Lerch Early, to ensure that borrowings are not prohibited by the Association’s by-laws; and (2) authorize
Legum & Norman to transfer the approximately $90,000 tax refund from the operating to the reserve funds, which intention was stated by the Board President in September 2009.
Mr. Axelrad stated that according to amendments made to the open meeting act, discussion of consultation with legal counsel should occur in Executive Session. Mr. Cunningham deferred this issue to Executive Session.
MOTION:
Mr. Bressler moved, Ms. Barth seconded, to approve the transfer of approximately $90,000 from the operating to the reserve funds. The motion passed unanimously.
Old Business:
a. Lighting- Mr. Cunningham stated that he received positive feedback about the lighting changes in the basement, noting that the changes have also proven to be cost effective. Mr. Horan affirmed that there has been a noticeable decrease in energy usage. He is awaiting a proposal for additional lighting upgrades to the pool, exercise room and some stairwells.
b. Asbestos abatement- Mr. Cunningham reported that the asbestos abatement project has been completed.
c. Lobby horizontal piping- The horizontal piping is approximately 50 percent completed. Both residents and board members reported that the workmen have been considerate and the workmanship is of good quality.
d. Emergency generator- The new generator has not been delivered and cannot be installed until some decisions are made about elements in the electrical room. Ms. Horan and Mr. Murdoch are working on this and will bring in another consulting engineer to speed up the work if necessary.
e. Façade work- The work will be completed by early December. Mr. Horan apologized for the dust that has resulted from the project and will assist in getting balconies cleaned off.
f. Pet policy- Mr. Cunningham thanked the Pet Policy Committee who presented a report at the October 13, 2009, meeting; the report has been made available to all residents. Dr. Muller provided a three-page analysis of the committee’s report, which included some additional information not available to the committee. This analysis is attached to the meeting minutes and summarized below:
Dr. Muller commended the committee’s report, stating that it was well-researched, provided useful comparisons of pet policies of other condominium buildings and made apt reference to the Association’s by-laws and house rules. He added that the report identified two problems with pets in the building: (1) some dog owners have allowed pets to eliminate in public areas without cleaning up after them, and (2) owners violating pet policies have not been reported to management. Since the committee was formed, the Board approved the following to resolve these problems: (1) notices were hung in public areas to remind pet owners about their responsibilities, and (2) management has had new security cameras installed in public areas and the arcades to identify those owners and dogs in violation. According to management, incidents have decreased. Dr. Muller added that the suggestion made by the committee about a referendum to change the by-laws is not feasible, given the 66% ownership favorable vote requirement. He added that detailing the weight of a dog would not be helpful since small dogs have been responsible for many of the incidents. The weight limits imposed at other condominium buildings vary widely, ranging from 25 to 70 pounds. The committee’s report did mention that the Carleton views pet allowance as a financial benefit to the building by increasing resale value. Not mentioned in the committee’s report was that the assisted living building is pet friendly, with owners feeling that there is therapeutic value in allowing pets on the property.
One issue that was not raised in the report was that some residents and staff are afraid of dogs. Dr. Muller stated that although the pet policy was known before they came to live or work on the property both sides need to be tolerant and courteous to each other. He added that elevators are intended to transport people with and without dogs, and that controversy can be avoided by waiting for the next elevator or kindly asking a dog owner to board the next elevator.
Dr. Muller made the following recommendations:
1) Adopt the committee’s suggestions about an updated registration form, which should include a photo of the dog.
2) Post notices in the elevator to remind residents to report transgressions
3) Enforce the recently approved House Rules, which calls for penalizing repeat offenders
4) Encourage dog owners and non-dog owners to treat each other with respect
Charles Bressler suggested that a limit of 35lbs be instituted by the Board after stating that the present dog community
in the Elizabeth was weighing 35 pounds or under. The Board did not adopt this suggestion.
Ms. Fridell suggested having a picture of the dog owner included on the registration form to help with enforcement.
Mr. Axelrad expressed sadness at the lack of understanding of the tolerance and friendliness values that dogs bring to a community, including to non-pet owners, and regret that the committee’s report did not include any suggestions of how to make the building more dog-friendly.
Ms. Barth suggested that because of the new lobby renovation, dogs be taken in and out of the building through a side entrance to prevent any accidents on the new furnishings. Dr. Muller responded that the lobby entrance and pathways to the elevators will not be carpeted and animals do not typically eliminate on the carpeted areas. This would pose an inconvenience to those dog owners bringing in groceries or picking up mail. Ms. Kielty added that the refurbishment is being done to create a better environment for residents, and that it shouldn’t make the building less welcoming by not allowing dogs to walk through the lobby.
Ms. Barth expressed concerns about safety, referring to past incidents of residents being bitten and pet urine on the marble floor causing a danger of slipping. Ms. Kielty argued that the number of incidents does not warrant dogs and owners using other exits. Dr. Muller stated that he has witnessed dog owners cleaning up after their dogs on the lobby floor, and that water dripped from pool users is just as dangerous.
Some board members stated that there should be a weight limit on dogs. Dr. Muller stated that imposing weight restrictions do not address the defined problems and that the original by-laws did not define a weight limit.
Dr. Muller moved, Ms. Kielty seconded, to approve and adopt the recommendations put forth by
Dr. Muller. The motion passed unanimously.
Ms. Fridell suggested some additions to the registration form: the responsibilities of the pet owner should be better explained, a picture of the dog and owner should be included, the tag number should specify the Montgomery County License Number, and vaccination dates should be provided to management. She added that a fine should be assessed if a pet owner fails to register his or her pet within a specified time, management should develop a system for managing this information and wording should be included to indicate the weight of the dog for identification purposes.
MOTION:
Ms. Fridell moved, Ms. Kielty seconded, to approve the suggested additions to the pet registration form. The motion passed with one abstention by Mr. Axelrad (6-0-1).
.
Mr. Cunningham asked Ms. Fridell to work with management to update the form.
New Business:
a. Radios- Mr. Horan stated that the staff’s current two-way radios are old and in need of replacement; proposals have been received from several companies. Teltronic, the only company who visited on-site, conducted tests on the roof and basement to assess what equipment would be needed. They recommend placing a repeater in the management office to boost the signal of the radios being used in the building. This would enable engineers to use the radios within two to three miles of the building. Teltronic quoted a price of $5,600, but would be decreased by $2,300 if a repeater is not included. There is a three-year warranty on the system. The system could be set up within 30 days.
Ms. Fridell stated that the previous management recommended obtaining new radios and this proposal is in line with their recommendation. Board members inquired whether it would be more cost effective to have cell phones for staff instead of radios. Ms. Barth stated that there are places in the building where service is not possible.
Ms. Kielty moved, Ms. Barth seconded, to approve the $5,600 Teltronic proposal for new radios. The motion passed unanimously by acclamation.
b. Front mats- Mr. Horan recommended replacing the weather mats, which are laid during inclement weather to prevent slipping. The new mats would be heavy gauge and could be stored in a room on the West side by the elevator. Ms. Fridell proposed waiting until after the construction is finished, but Mr. Horan responded that the mats could be put away if they got in the way of the renovation. The decorating committee should select the color of the mats.
MOTION:
Ms. Barth moved, Mr. Axelrad seconded, to approve replacing the lobby mats. The motion passed, with Ms. Fridell opposing (6-1-0).
c. Water detectors- Mr. Horan reported that he had begun looking into the cost of water detectors, noting that prices range from $10 to $30. Mr. Cunningham asked that the Board consider providing one unit for each condominium to be placed near the washer and dryer and make another one available for residents to purchase. Mr. Horan will gather additional information.
d. Lobby renovation project- Mr. Cunningham stated that the lobby renovation project is at the point where permits are needed from the County. In preparation for this, an architect and mechanical/electrical subcontractors are needed to review and approve the drawings. An architect, recommended by the Hartman Design Group, has provided the Board with a proposal. The Board was concerned that the quoted rates are hourly and asked Mr. Murdoch to negotiate a fixed price.
Mr. Cunningham asked for approval from the Board for Mr. Murdoch to negotiate a contract within the range of $11,700. Mr. Murdoch stated that in addition to the architect’s time, estimated at 120 hours at $80 per hour, there is a fixed contract between him and a mechanical or electrical contractor’s time of $11,750. He stated that the cost may be less depending on the scope of the work needed.
Mr. Bressler expressed concern that the Board is being asked to approve large expenditures, but has still not seen drawings and illustrations. Board members expressed their struggle to understand how permits can be obtained for areas that may ultimately not be renovated. Ms. Barth clarified that documents are being prepared to complete renovations for the entire first floor lobby. After the permits are obtained, the construction bids will dictate how much of the work the Association can afford to complete. Ms. Barth stated that drawings and illustrations will be available in January. Documents will be completed in December and then a bidding process will take place in January to secure a general contractor. In February, there will be boards with furnishing options to view.
Ms. Fridell stated that she needs a specific timeline when major expenditures are expected in order to ensure that there are reserve funds available at the right time. Ms. Barth stated that she would provide that.
Ms. Fridell also inquired about the expenditures chart in the Management Report, Section D, which lists $70,000 for Hartman Design Group. Ms. Barth clarified that that amount is for the design work only.
Mr. Axelrad emphasized that the Association should ensure that the architect provides a fixed fee for obtaining the necessary permits. Mr. Cunningham stated that the architect was new to the project and didn’t have a clear sense of what was needed yet. It is also difficult to guarantee a price on the whole process since the County may go back and forth with the Association with various requests. Mr. Axelrad stated that the architect would be aware of this and could still incorporate it into a fixed price. Ms. Barth clarified that the money for the architect and the electrical engineer should come out of the construction budget, not the design budget.
Dr. Muller moved, Ms. Kielty seconded, to authorize Mr. Murdoch to negotiate a possible fixed-price contract, starting at a minimum of $10,000. The motion passed, with one abstention by
Mr. Axelrad (6-0-1).
Ms. Fridell expressed concern about the way this motion was presented, in that the Board should be provided with an actual proposal. Auditors have cited the Board about being lax on documenting contract decision-making and therefore a vote should have been taken only on the final contract. Board members stated that they had to grant authorization for the contract to be negotiated.
Ms. Kielty inquired about having some superficial work done such as painting the doors of the arcade and exercise areas. Mr. Bressler added that the awning also needs to be repaired. Mr. Horan stated that the doors can be painted at any time. The awning has been previously addressed, but continues to leak.
e. Future meeting dates-
MOTION:
Ms. Barth moved, Ms. Kielty seconded, to move the regular board meetings to the third Monday of each month. The motion passed unanimously by acclamation.
The Board agreed to hold its next meeting on December 21, 2009.
Committee Reports:
-Exercise Committee: Ms. Kielty reported that the exercise committee met in late October. The committee developed a strategy about proceeding with procuring new exercise equipment and utilizing the budget that has been approved for the exercise area. The committee envisions a redesign of the area and will obtain information from the Hartman Design Group about what equipment should be purchased and a space design to be included in a RFP to go out to vendors.
Ms. Kielty met with Elise Moore at the Hartman Design Group, who provided an estimated planning cost. The quoted price was $2,600, which includes drawings for $180, site measurement and verification for $700, a second site measurement and verification for $600, and space planning of the area for $1,120. Ms. Kielty feels that this is a conservative approach and will ensure that the rest of the funds budgeted for this area will be utilized effectively.
Ms. Barth stated that the Hartman Group recently conducted a walkthrough of the pool and exercise areas to take photographs and make recommendations. They will send a narrative of information and the committee will make a decision about whether to proceed with the recommendations. Ms. Kielty stated that she did receive the narrative, but did not understand the context when she received it. She stated that she will forward the narrative to Ms. Barth and members of the committee. The narrative included suggestions such as replacing ceiling tiles, making the stairwell and bathrooms code compliant, and removing the rug-like material on the walls and repainting or wallpapering.
Mr. Cunningham stated that these costs should not be integrated with the renovation costs of the first floor. The Board briefly discussed the accounts from which these funds should be taken.
Ms. Fridell stated $17,947 is budgeted for exercise equipment in 2010, and then in years 2011-2012, $75,000 is budgeted for renovations. Any expenditures now would be have to be taken from funds allocated for future years and would need to be reflected in next year’s budget. Ms. Fridell stated that there needs to be a hard-copy proposal presented to the Board. Ms. Kielty stated that she would have Hartman Design Group prepare a written estimate.
Dr. Muller asked the Committee to reconsider leasing a blood pressure machine for three months. Ms. Kielty stated that many Committee members did not support leasing the machine because they were unclear where the funds would come from, and did not want the funds taken from the exercise room budget. They also felt that individuals should purchase their own machine or utilize other avenues if they had a concern about their blood pressure. Dr. Muller assured the Board that his intent was to charge the “other amenities” line item, and not take from the exercise room budget. He also emphasized that the $450 cost he estimated was not an expensive item, especially when compared with the many more expensive items just approved. Dr. Muller stated that, in his view, the machine would provide residents with a 24/7 additional amenity, and be more convenient than travelling to the Community Center, drug store, or physician’s office. Dr. Muller put forth a motion to approve leasing a blood pressure machine, but the motion failed for lack of a second.
Mr. Cunningham asked Mr. Horan about the compatibility of the security screen size at the front desk after the renovations. Mr. Horan will discuss the issue with the security company.
Dr. Muller stated that a resident expressed concern about the use of the engineers at the front desk. He explained that they are not scheduled to be at the front desk, but all members of the Elizabeth staff do occasionally cover the front desk so that staff can take necessary breaks. The night security guard covers the desk while that staff person takes her dinner break.
-Social Committee: Ms. Barth reported that the Halloween party was a success and thanked all those who helped. Upcoming activities include:
• November 22, 2009- a brunch in the West lobby with the omelet chef. A few seats remain.
• December 5, 2009- the community box event to provide toiletries and hats for the homeless.
• December 13 or 20, 2009- the annual holiday party. A RSVP is required to attend and residents should look for invitations in their boxes.
Dr. Muller stated that the jack hammering going on at a nearby building will continue for the next two weeks between 5pm and 9pm. He also reported that a new County recreation center is now open on Friendship Boulevard, within a short walking distance, and those individuals older than 55 can use the weight rooms free of charge from 9am to 2pm.
Comments from the floor:
-A resident expressed appreciation for the management company and the workmen who completed the pipe work. She added that she has observed pet owners being more considerate since the discussion began on the pet policy. She suggested that small signs be posted to remind owners that dogs should not be allowed to urinate on the landscaped areas.
-A resident asked about the status of delinquencies. Ms. Fridell stated that the $34,000 comprises over 1% of the annual condominium fee receivables and 12% of the monthly receivables. She added that the number is low, but continues to increase. There are currently nine (9) unit delinquencies and 9 parking space delinquencies.
- A resident asked whether the Board has considered painting the pillars and walls in the garage. He added that there have also been long delays for a working elevator. He also asked about the status of changing the door locks. Mr. Horan stated that the price on the locks is reasonable, and 89 residents have signed up. He is aware of the elevator delays and is working to address the issue.
-A question was posed by a resident about when and what type of equipment will be installed in the exercise room. He expressed concern that some of the equipment is broken and added that there was a need for another recumbent bicycle and elliptical trainer. Ms. Kielty answered that the committee is working to develop a clear, long-range plan about the change in equipment. The committee did not meet over the summer, which delayed the decision-making process.
-A resident expressed concern about the pipe work in the lobby and elevator area, specifically questioning whether the pipes will be insulated one from another. Mr. Cunningham assured the resident that there is oversight to ensure that the work is being done correctly.
Adjournment: The President adjourned the meeting at 9:55 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Thursday, December 10, 2009
Summary of November 2009 Elizabeth Condo Board Meeting
Woody Cunningham, Board President, called the meeting to order at 7:30 p.m.
Mr. Cunningham reminded residents that heat would be turned off the period November 17 - 19, but hot water would not be affected. This is required because of work being done on the horizontal piping.
Work on emergency generator project is still behind schedule. There will be a meeting this week to try to get this back on track.
Mr. Cunningham suggested that two potential committees would be helpful: (1) Nominating and election committee to improve the process of both the election of Board members and the actual balloting system; (2) Communications committee that would be responsible for setting up a website for The Elizabeth, enabling residents to learn of events and getting communications from the Board. Residents without email access would get written communication as before. Scott Murdoch noted that L&N has a simplified process involving a ballot for each unit where a bar code is scanned. This enables the quorum quickly to be signaled, the unit number to be recorded and the percentage of ownership to be duly noted. The cost is $2.00 per unit.
Minutes of October 13 Board Meeting were approved.
Treasurer's Report:
Treasurer Monique Fridell said FY 09 audit should be available for December meeting. Ms. Fridell stated she is very dismayed that L&N financial statements still are not accurate and that she sees no benefit to outsourcing what previously was a self-managed operation. Ms. Fridell asked for 100% accuracy by December. Delinquencies are at $34,000.
Two proposals for a line of credit are in hand, and three more are expected shortly. She requested two motions -- one for opinion of Counsel to assure that there is no prohibition for borrowings and the other that the $90,000 sales tax refund be put into the Reserve fund rather than kept in the Operations account. Jeffrey Axelrad said that legally the second matter should be discussed in Executive Session.
Old business:
Lighting in the garage is much better, and electricity bills already indicate cost savings.
Asbestos abatement project has been completed, and there were no problems.
Lobby piping is almost 50% complete.
Scott Murdoch and Mike Horan are working to speed up delivery of emergency generator, which is behind schedule because of construction work. A consulting engineer may be needed.
Work on the facade of tiers 14 and 15 should be completed by December. Mr. Horan apologized for dust on balconies and suggested residents could contact him for possible assistance by maintenance staff.
Pet policy: Dr. Muller asked that his three-page critique be included in the official minutes of the meeting. Among other things, he said the matter of a referendum was moot, since at the annual meeting only 55-56 percent representation is ever achieved, and a bylaws change would necessitate 66 percent. The Board's conclusion was that a new registration form should be produced. This would include license number, weight of dog, photo of dog owner(s)/pet(s) and date of pet inoculation.
Mike Horan is expecting a proposal in the near future for new lighting to be installed in pool and exercise areas as well as stairwells.
Management requested that new two-way radios be purchased for use by staff to replace the current older models. Board approved expenditure of $5,600 for the new radios that come with a three-year warranty.
Management requested approval to buy new mats for front lobby area used during inclement weather. Board approved.
Board requested Management to explore cost of water detectors for each unit. These would be placed in the area behind the washer/dryer, which is where most water leaks occur. Mike Horan indicated the cost would be between $10 and $30 for each detector, but he cannot make a recommendation until he does more research of the several companies that supply detectors. The detectors might also be useful in the McQuay units.
An architect for the decorator must put together some plans for the lobby renovation to submit to Montgomery County for approval. Scott Murdoch wants to review the proposal and add an addendum because it is too open-ended in terms of cost.
The lobby renovation will not begin until March 2010. Easels showing the design for the lobby will be put up right after the holidays.
The Holiday Party will be held either on Sunday, December 13th, or Sunday, December 20th.
The Exercise Committee is putting together a plan for updating of the exercise equipment.
The next Board Meeting will be held on Monday, December 21st. The Board approved a plan to meet the third Monday of each month unless it falls on a holiday, in which case the date will be moved.
Meeting adjourned at 9:15 p.m.
Mr. Cunningham reminded residents that heat would be turned off the period November 17 - 19, but hot water would not be affected. This is required because of work being done on the horizontal piping.
Work on emergency generator project is still behind schedule. There will be a meeting this week to try to get this back on track.
Mr. Cunningham suggested that two potential committees would be helpful: (1) Nominating and election committee to improve the process of both the election of Board members and the actual balloting system; (2) Communications committee that would be responsible for setting up a website for The Elizabeth, enabling residents to learn of events and getting communications from the Board. Residents without email access would get written communication as before. Scott Murdoch noted that L&N has a simplified process involving a ballot for each unit where a bar code is scanned. This enables the quorum quickly to be signaled, the unit number to be recorded and the percentage of ownership to be duly noted. The cost is $2.00 per unit.
Minutes of October 13 Board Meeting were approved.
Treasurer's Report:
Treasurer Monique Fridell said FY 09 audit should be available for December meeting. Ms. Fridell stated she is very dismayed that L&N financial statements still are not accurate and that she sees no benefit to outsourcing what previously was a self-managed operation. Ms. Fridell asked for 100% accuracy by December. Delinquencies are at $34,000.
Two proposals for a line of credit are in hand, and three more are expected shortly. She requested two motions -- one for opinion of Counsel to assure that there is no prohibition for borrowings and the other that the $90,000 sales tax refund be put into the Reserve fund rather than kept in the Operations account. Jeffrey Axelrad said that legally the second matter should be discussed in Executive Session.
Old business:
Lighting in the garage is much better, and electricity bills already indicate cost savings.
Asbestos abatement project has been completed, and there were no problems.
Lobby piping is almost 50% complete.
Scott Murdoch and Mike Horan are working to speed up delivery of emergency generator, which is behind schedule because of construction work. A consulting engineer may be needed.
Work on the facade of tiers 14 and 15 should be completed by December. Mr. Horan apologized for dust on balconies and suggested residents could contact him for possible assistance by maintenance staff.
Pet policy: Dr. Muller asked that his three-page critique be included in the official minutes of the meeting. Among other things, he said the matter of a referendum was moot, since at the annual meeting only 55-56 percent representation is ever achieved, and a bylaws change would necessitate 66 percent. The Board's conclusion was that a new registration form should be produced. This would include license number, weight of dog, photo of dog owner(s)/pet(s) and date of pet inoculation.
Mike Horan is expecting a proposal in the near future for new lighting to be installed in pool and exercise areas as well as stairwells.
Management requested that new two-way radios be purchased for use by staff to replace the current older models. Board approved expenditure of $5,600 for the new radios that come with a three-year warranty.
Management requested approval to buy new mats for front lobby area used during inclement weather. Board approved.
Board requested Management to explore cost of water detectors for each unit. These would be placed in the area behind the washer/dryer, which is where most water leaks occur. Mike Horan indicated the cost would be between $10 and $30 for each detector, but he cannot make a recommendation until he does more research of the several companies that supply detectors. The detectors might also be useful in the McQuay units.
An architect for the decorator must put together some plans for the lobby renovation to submit to Montgomery County for approval. Scott Murdoch wants to review the proposal and add an addendum because it is too open-ended in terms of cost.
The lobby renovation will not begin until March 2010. Easels showing the design for the lobby will be put up right after the holidays.
The Holiday Party will be held either on Sunday, December 13th, or Sunday, December 20th.
The Exercise Committee is putting together a plan for updating of the exercise equipment.
The next Board Meeting will be held on Monday, December 21st. The Board approved a plan to meet the third Monday of each month unless it falls on a holiday, in which case the date will be moved.
Meeting adjourned at 9:15 p.m.
October 2009 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting October 13, 2009
Board Present:
Woody Cunningham ....................President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan .............Property Manager, Legum & Norman
Jana Bowcut ...............Recording Secretary, On the Record
Absent:
Alexandria Kielty .........................Vice President
Jeffrey Axelrad ............................Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:33 pm.
Approval of Minutes:
MOTION
Dr. Muller moved, Ms. Barth seconded, to approve the September 15, 2009, meeting Minutes. The motion passed unanimously.
President’s Report
Mr. Cunningham welcomed Scott Murdoch, the new Community Manager from Legum and Norman, and mentioned that he also works with other condominium associations nearby.
Mr. Cunningham noted that the work in the lobby was progressing and praised contractor A.D. Heath for its work. Mr. Cunningham also provided an overview of new business items that would be discussed during the meeting.
Treasurer’s Report:
Ms. Fridell reported that the Association’s accountant, DeLeon & Stang, is finalizing the first draft of the FY 2009 financial statements through June 30, 2009. Suggestions made by DeLeon & Stang include:
• Purchase a scanner for the office to reduce paper files ($350).
• Meeting minutes should be more precise, particularly when contract decisions are made.
• The income statement should separate Legum & Norman fees out into flat annual fees and ad hoc fees for various services
• The Treasurer should handle payment of reserve expenditures from reserve accounts differently.
Ms. Fridell stated that she is working on outstanding financial issues that remain from the prior Community Manager, but those issues should be resolved in the next month. She is also working with L&N to refine the financial statements to make them more accurate and understandable. ECA financial policies and procedures need to be revised, and will be completed in conjunction with Legum & Norman.
Delinquencies are currently at $43,000, and have doubled since June 30, 2009. Many of these could be related to confusion about where to send condominium fee payments. Legum & Norman is contacting owners to clarify the process, which hopefully will bring the delinquency figure down.
Ms. Fridell investigated establishing a line of credit, previously requested by the Board, for back up liquidity purposes. Chevy Chase Bank, National Capital, and Wachovia were contacted because they offered line of credit proposals to the ECA in the past. However, none of the banks is currently willing to extend a line of credit.
Ms. Fridell stated that she has requested a term sheet proposal from BB&T for a $1 million LOC and is currently awaiting feedback from the loan officer. A term sheet proposal has also been received from Community Association Banc for a $1 million LOC; however, this loan must be related to a specific project. In order to pursue either of these loans, the current fiscal year financial statements must be refined and delinquencies made accurate. Ms. Fridell also suggested that the Association’s attorney be consulted to ensure that the by-laws do not prohibit borrowings.
A new brokerage account with Morgan Stanley was proposed to the Board to gradually transfer all reserve investments. Due to some discomfort among Board members with the Wachovia certificate of deposit account registry account service (CDARS) and investing directly into bank CDs, Ms. Fridell stated that she thought the aforementioned option, suggested by L&N and supported by several Board members, would be a good alternative. Opening a brokerage account with Morgan Stanley would also alleviate some of the burden on the Treasurer, particularly now that Diane Robinson is no longer with the Association. However, Morgan Stanley charges a $150 annual fee and other ad hoc transaction costs and does offer lower interest rates than investing directly into CDs. It was noted that savvy investing in the future may compensate for this earning difference.
Mr. Bressler inquired whether Ms. Robinson’s replacement could take on some of the financial responsibilities. Ms. Fridell responded that although Aisha Gardner is a very responsive and diligent employee, she has no accounting background as Ms. Robinson did. Ms. Barth also asked Mr. Murdoch about the experience of other condominium associations using brokerage firms. He answered that although it is slightly more costly, it is considerably more convenient. Also, in the event that the Association has a treasurer less knowledgeable than Ms. Fridell in the future, the finances would still be manageable.
MOTION
Ms. Barth moved, Dr. Muller seconded, to approve opening a new brokerage account with Morgan Stanley. The motion passed unanimously.
Old Business:
Mr. Bressler requested that payment be made to Merrifield Landscape on an existing $725 invoice to have a landscaping proposal drafted. Dr. Muller recommended soliciting a second proposal, not to exceed $750, which the Board supported. Ms. Barth suggested posting both proposals together in the lobby for residents to review. She also noted that she is still seeing trash thrown into the planters in the front of the building.
MOTION
Mr. Bressler moved, Dr. Muller seconded, to approve payment to Merrifield Landscaping of the $725 invoice for a landscaping proposal. The motion passed unanimously.
New Business:
A. Contracts for Abatement- Mr. Cunningham stated that asbestos has been discovered in the packing around a number of pipes in the lobby. This is not a health problem; since the asbestos is of the non friable kind it does not create dust. An asbestos abatement program is required and will be done in full compliance with EPA and state regulations.
Two drastically different bids have been received for abatement. Mr. Murdoch stated that A.D. Heath, who subcontracts with Gibbins, proposed a cost of $62,383. The second bid was for $34,800 from LVI Services. After asking A.D. Heath to reconsider its proposal, the company gave a revised cost of $39,600. Mr. Murdoch stated that even though A.D. Heath is slightly more expensive, it might make the project move faster since it will be easier to coordinate the work with the rest of the construction in the lobby.
MOTION
Dr. Muller moved, Ms. Barth seconded, to approve the $39,600 A.D. Heath proposal. The motion passed unanimously.
Dr. Muller inquired about possible errors in renewal dates on the contract list, and Mr. Horan stated that he would address the discrepancies.
B. Future meeting dates- Mr. Cunningham stated that the regular Board of Directors meetings need to be changed so that Mr. Murdoch can attend the meetings. Meetings have been held on the third Tuesday of each month to provide enough time after month-end to ensure more complete financial reports. The third Monday and the third Thursday of each month were proposed as possible meeting times. Mr. Cunningham stated that the next meeting will occur on Monday, November 16, 2009, and a permanent, monthly date will be established after consulting the absent board members.
C. Façade work- Mr. Horan stated that work on the 14th and 15th tiers is progressing with continuing work mostly in the 15th and 16th tiers. No complications or issues have surfaced, though some residents may have noticed some dust from the work. The work will continue through mid-November.
D. Security cameras- Mr. Horan stated that the DVR system is now in place for security recording. Two cameras were replaced that are sharper in color. Twenty black and white cameras are still currently in place, and should be replaced with digital color cameras, and two cameras should be added at the arcade. The cost of this work is $4,808.38.Larger monitors have also been recommended, and would cost an additional $2,000. Board members inquired if additional cameras or changing the locations of cameras is needed. Mr. Horan added that the number and location of the cameras is fine, and new cameras will have more capabilities such as zooming and swiveling. Board members expressed concern about having new cameras installed in the lobby before the construction is completed. Mr. Horan responded that the construction schedule can be accommodated.
MOTION
Mr. Bressler moved, and Dr. Muller seconded, to approve the $4,808.38 proposal from See View Security to purchase an install 22 new security cameras and the two new monitors for $2,000. The motion passed unanimously.
Mr. Bressler inquired what the monthly costs for L&N site personnel are now that ECA is being managed by Legum & Norman. Mr. Murdoch responded that the first three months are direct operating expenses, which include management fees of $22,464, reimbursable services of $6,662, and direct payroll expenses of $29,698. These expenses total $58,824.00. Payroll costs are $56,416 for a three-month period. These expenses are $2,400 higher than comparable expenses were under self-management. Dr. Muller pointed out the reason for a $90,000 surplus is the result of a sales tax refund sought and received at the suggestion of Legum & Norman.
Mr. Bressler inquired when the garage lighting work would begin. Mr. Horan stated that the work would begin next week and there is no need to move cars. In response to Mr. Cunningham’s inquiry regarding the estimated payback period, it was noted that the payback period will be five years and six months.
Dr. Muller raised the issue of cars in the garage that are abandoned or leaking. Space in the garage is at a premium particularly during winter months, and guests to the building will not have parking spaces. Mr. Horan stated that one “junked” car has been removed, and violators have been issued as many as three violations. He asked if he could begin towing, but Dr. Muller suggested first consulting legal counsel. Board members expressed concern that visitor passes were being given out without enough scrutiny.. Mr. Horan said that he would work with the front desk staff to identify repeat offenders.
Ms. Barth inquired whether Mr. Horan has looked into a FOB keyless entry system yet, to which he responded he has not. Also, following up on a safety issue raised by a resident at the September 2009 Board Meeting, a sign-up sheet will be available for residents who would like to have their locks replaced by Federal Lock and Safe. If at least 20 people sign up, the price will be dropped from $325 to $265 per door. Mr. Horan stated that he would also distribute a flier with the pricing and other information.
E. Committee Reports
Social Committee: An invitation has been sent out for the Halloween party, which is for all children in the building and grandchildren of all residents. Mr. Horan will be decorating the party room, and costumes are encouraged. There is no charge for this event.
The committee is organizing a brunch for November 22, 2009. Menus are still being considered, but fliers will be posted and notices will go in boxes once plans are finalized. There will be a nominal charge for this event.
Other upcoming events include a “Box Party,” a service project for the charity So Others Might Eat (SOME) to be held on December 5, 2009. The holiday party is planned for December 13, 2009.
Renovations Committee: Ms. Barth reported that plans are moving along as scheduled. On September 22, 2009 the committee met with Hartman Design group to see finishes for the first level of the lobby and plans for Phase 2 of the renovations, which include: the east and west lobbies; front desk; party room; and modernizing restrooms. The County has approved plans for the bathroom work.
The advisory committee met and also approved the plans. The Hartman Design Group has started Phase 3 plans, and the timing of the refurbishment is dependent upon the horizontal piping and asbestos work’s being completed in the lobby. Ms. Barth added that the lobby design is elegant and inviting, and creates space for residents and guests to meet. Drawings and samples of the finishes should be available in January, which will be presented at a wine and cheese reception.
Pet Committee: The committee has completed a report that includes recommendations on how pet ownership rules should be amended and strengthened. A summary of the report was read by a member of the Board Committee and included the following suggestions:
1) Owners should always carry clean up materials for their pets;
2) Dog weight should not exceed 25 pounds at maturity, with the exception of service animals;
3) Guest dogs should meet the same weight requirements and can stay for a maximum of two weeks;
4) A registration form for each dog should be kept on file in the management office, which would include a photo, size of the dog and vaccination record;
5) Only one pet should be allowed on the elevator at a time, and pet owners should give residents without pets the right of way;
6) In May, a referendum should be put forth at the annual meeting to decide whether pets should still be allowed to reside in the building; and
7) The same rules and privileges regarding pet ownership should not be extended to renters.
The chair of the committee reportedly conducted extensive research, which included reviewing pet policies and interviewing residents from other Legum and Norman managed buildings. The committee would like to adopt the pet registration form used by the Carlton. Every building has different policies, one not allowing pets at all, and others requiring substantial financial arrangements to have pets. Mr. Murdoch stated that legal counsel has advised not to discriminate between owners and renters with regard to pets. The committee reported that warning letters sent to pet owners sometimes gave incorrect information and that there are discrepancies on the current list of pet owners that is kept in the Management Office. Two pet owners participated in discussions with the committee to offer their perspective.
Some residents in the past have expressed concern about a significant number of renters having pets. Dr. Muller stated that only 5 of 22 dogs in the building belong to renters. He added that although he appreciated the committee's hard work, they went beyond addressing the two problems of 1) uncooperative pet owners not being reported to management and 2) the mess caused by pets in public areas not being cleaned up by their owners. The other suggestions concerning weight and rentals did not offer solutions for the two problems in question. Addressing these additional items would require changing the ByLaws, which would require approval of 2/3 of the ownership voting in favor of the change. Mr. Cunningham responded that the Board never limited the scope of the committee investigation and that this will be discussed more in November.
Energy Committee: Although the committee did not meet last month, a subcommittee was formed to help identify engineering consulting firms with expertise in energy conservation to help with future projects such as window and door replacement. These firms will be presented at the next meeting for the Board’s consideration. The committee is looking into compact fluorescent lights for the elevators and establishing contacts with energy conscious organizations.
Dr/ Muller presented a proposal to buy or lease a blood pressure machine for the exercise room. The cost of the machine is $5,000 or could be leased for $150 per month for a minimum of three months. Ms. Barth mentioned that a nurse at Friendship Heights Center will do a blood pressure check for any member of Chevy Chase Village on Tuesday afternoons. Dr. Muller stated that it is his understanding that there is no liability for having this machine available, but this question should be raised with the Association's attorney. Mr. Cunningham stated that this issue should be deferred to the exercise committee which can report next month.
Comments from the Floor
• Mr. Bressler noted that there have been several incidents of toilet bowls breaking and causing significant water damage. He inquired whether a group rate could be available in changing some of the toilet bowls as was made available for locks. Mr. Horan stated that he would investigate.
• A resident recommended the use of water sensors in units to detect early water leaks. She stated that sensors alerted her to a water leak caused by the HVAC unit. Mr. Horan stated that he would look into a bulk deal for these units.
• A concern was expressed about ensuring that the new security cameras in the elevators have a 360 degree scope.
• A resident inquired about what would happen to dogs over 25 pounds that currently reside in the building, if the new pet guidelines were adopted. Mr. Cunningham stated that those dogs would be “grand-fathered”.
• A resident reported watching a car sneak into G1 parking by following closely behind a resident entering the garage. Mr. Horan suggested one solution could be shortening the time the garage door stays open, but concerns were voiced about those residents who need the longer time to get their cars through the garage door.
• A question was posed about whether violent crime has ever occurred in the garage. Residents stated that there have been incidents of vandalism and one attack, which occurred ten years ago.
• A resident complained that some owners allow their dogs to urinate on the flower beds. Ms. Barth added that there are some odors in the arcade area, particularly around the doors between the east lobby and arcade and should be cleaned. Possible ways to deter dogs from the beds may be powder, fencing, or signs in the beds to remind owners.
• A suggestion was made to survey residents about amenities and activities and that the Board should describe its vision for the building. Ms. Fridell responded that Board members regularly discuss these issues and have a common vision for the building and what will enhance its value.
• A question was raised about having a defibrillator present in the building, given that they are inexpensive and have been shown to save lives. Dr. Muller stated that a change in the Maryland and District laws requires a licensed physician to take responsibility.The Association does not currently have such an arrangement and he does not believe the current security company employees would have the appropriate expertise to use the defibrillator.
Adjournment
The President adjourned the meeting at 9:32 p.m.
The initial draft of the Minutes, upon which these Minutes are based, was prepared by Jana Bowcut of On the Record, Inc.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting October 13, 2009
Board Present:
Woody Cunningham ....................President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan .............Property Manager, Legum & Norman
Jana Bowcut ...............Recording Secretary, On the Record
Absent:
Alexandria Kielty .........................Vice President
Jeffrey Axelrad ............................Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:33 pm.
Approval of Minutes:
MOTION
Dr. Muller moved, Ms. Barth seconded, to approve the September 15, 2009, meeting Minutes. The motion passed unanimously.
President’s Report
Mr. Cunningham welcomed Scott Murdoch, the new Community Manager from Legum and Norman, and mentioned that he also works with other condominium associations nearby.
Mr. Cunningham noted that the work in the lobby was progressing and praised contractor A.D. Heath for its work. Mr. Cunningham also provided an overview of new business items that would be discussed during the meeting.
Treasurer’s Report:
Ms. Fridell reported that the Association’s accountant, DeLeon & Stang, is finalizing the first draft of the FY 2009 financial statements through June 30, 2009. Suggestions made by DeLeon & Stang include:
• Purchase a scanner for the office to reduce paper files ($350).
• Meeting minutes should be more precise, particularly when contract decisions are made.
• The income statement should separate Legum & Norman fees out into flat annual fees and ad hoc fees for various services
• The Treasurer should handle payment of reserve expenditures from reserve accounts differently.
Ms. Fridell stated that she is working on outstanding financial issues that remain from the prior Community Manager, but those issues should be resolved in the next month. She is also working with L&N to refine the financial statements to make them more accurate and understandable. ECA financial policies and procedures need to be revised, and will be completed in conjunction with Legum & Norman.
Delinquencies are currently at $43,000, and have doubled since June 30, 2009. Many of these could be related to confusion about where to send condominium fee payments. Legum & Norman is contacting owners to clarify the process, which hopefully will bring the delinquency figure down.
Ms. Fridell investigated establishing a line of credit, previously requested by the Board, for back up liquidity purposes. Chevy Chase Bank, National Capital, and Wachovia were contacted because they offered line of credit proposals to the ECA in the past. However, none of the banks is currently willing to extend a line of credit.
Ms. Fridell stated that she has requested a term sheet proposal from BB&T for a $1 million LOC and is currently awaiting feedback from the loan officer. A term sheet proposal has also been received from Community Association Banc for a $1 million LOC; however, this loan must be related to a specific project. In order to pursue either of these loans, the current fiscal year financial statements must be refined and delinquencies made accurate. Ms. Fridell also suggested that the Association’s attorney be consulted to ensure that the by-laws do not prohibit borrowings.
A new brokerage account with Morgan Stanley was proposed to the Board to gradually transfer all reserve investments. Due to some discomfort among Board members with the Wachovia certificate of deposit account registry account service (CDARS) and investing directly into bank CDs, Ms. Fridell stated that she thought the aforementioned option, suggested by L&N and supported by several Board members, would be a good alternative. Opening a brokerage account with Morgan Stanley would also alleviate some of the burden on the Treasurer, particularly now that Diane Robinson is no longer with the Association. However, Morgan Stanley charges a $150 annual fee and other ad hoc transaction costs and does offer lower interest rates than investing directly into CDs. It was noted that savvy investing in the future may compensate for this earning difference.
Mr. Bressler inquired whether Ms. Robinson’s replacement could take on some of the financial responsibilities. Ms. Fridell responded that although Aisha Gardner is a very responsive and diligent employee, she has no accounting background as Ms. Robinson did. Ms. Barth also asked Mr. Murdoch about the experience of other condominium associations using brokerage firms. He answered that although it is slightly more costly, it is considerably more convenient. Also, in the event that the Association has a treasurer less knowledgeable than Ms. Fridell in the future, the finances would still be manageable.
MOTION
Ms. Barth moved, Dr. Muller seconded, to approve opening a new brokerage account with Morgan Stanley. The motion passed unanimously.
Old Business:
Mr. Bressler requested that payment be made to Merrifield Landscape on an existing $725 invoice to have a landscaping proposal drafted. Dr. Muller recommended soliciting a second proposal, not to exceed $750, which the Board supported. Ms. Barth suggested posting both proposals together in the lobby for residents to review. She also noted that she is still seeing trash thrown into the planters in the front of the building.
MOTION
Mr. Bressler moved, Dr. Muller seconded, to approve payment to Merrifield Landscaping of the $725 invoice for a landscaping proposal. The motion passed unanimously.
New Business:
A. Contracts for Abatement- Mr. Cunningham stated that asbestos has been discovered in the packing around a number of pipes in the lobby. This is not a health problem; since the asbestos is of the non friable kind it does not create dust. An asbestos abatement program is required and will be done in full compliance with EPA and state regulations.
Two drastically different bids have been received for abatement. Mr. Murdoch stated that A.D. Heath, who subcontracts with Gibbins, proposed a cost of $62,383. The second bid was for $34,800 from LVI Services. After asking A.D. Heath to reconsider its proposal, the company gave a revised cost of $39,600. Mr. Murdoch stated that even though A.D. Heath is slightly more expensive, it might make the project move faster since it will be easier to coordinate the work with the rest of the construction in the lobby.
MOTION
Dr. Muller moved, Ms. Barth seconded, to approve the $39,600 A.D. Heath proposal. The motion passed unanimously.
Dr. Muller inquired about possible errors in renewal dates on the contract list, and Mr. Horan stated that he would address the discrepancies.
B. Future meeting dates- Mr. Cunningham stated that the regular Board of Directors meetings need to be changed so that Mr. Murdoch can attend the meetings. Meetings have been held on the third Tuesday of each month to provide enough time after month-end to ensure more complete financial reports. The third Monday and the third Thursday of each month were proposed as possible meeting times. Mr. Cunningham stated that the next meeting will occur on Monday, November 16, 2009, and a permanent, monthly date will be established after consulting the absent board members.
C. Façade work- Mr. Horan stated that work on the 14th and 15th tiers is progressing with continuing work mostly in the 15th and 16th tiers. No complications or issues have surfaced, though some residents may have noticed some dust from the work. The work will continue through mid-November.
D. Security cameras- Mr. Horan stated that the DVR system is now in place for security recording. Two cameras were replaced that are sharper in color. Twenty black and white cameras are still currently in place, and should be replaced with digital color cameras, and two cameras should be added at the arcade. The cost of this work is $4,808.38.Larger monitors have also been recommended, and would cost an additional $2,000. Board members inquired if additional cameras or changing the locations of cameras is needed. Mr. Horan added that the number and location of the cameras is fine, and new cameras will have more capabilities such as zooming and swiveling. Board members expressed concern about having new cameras installed in the lobby before the construction is completed. Mr. Horan responded that the construction schedule can be accommodated.
MOTION
Mr. Bressler moved, and Dr. Muller seconded, to approve the $4,808.38 proposal from See View Security to purchase an install 22 new security cameras and the two new monitors for $2,000. The motion passed unanimously.
Mr. Bressler inquired what the monthly costs for L&N site personnel are now that ECA is being managed by Legum & Norman. Mr. Murdoch responded that the first three months are direct operating expenses, which include management fees of $22,464, reimbursable services of $6,662, and direct payroll expenses of $29,698. These expenses total $58,824.00. Payroll costs are $56,416 for a three-month period. These expenses are $2,400 higher than comparable expenses were under self-management. Dr. Muller pointed out the reason for a $90,000 surplus is the result of a sales tax refund sought and received at the suggestion of Legum & Norman.
Mr. Bressler inquired when the garage lighting work would begin. Mr. Horan stated that the work would begin next week and there is no need to move cars. In response to Mr. Cunningham’s inquiry regarding the estimated payback period, it was noted that the payback period will be five years and six months.
Dr. Muller raised the issue of cars in the garage that are abandoned or leaking. Space in the garage is at a premium particularly during winter months, and guests to the building will not have parking spaces. Mr. Horan stated that one “junked” car has been removed, and violators have been issued as many as three violations. He asked if he could begin towing, but Dr. Muller suggested first consulting legal counsel. Board members expressed concern that visitor passes were being given out without enough scrutiny.. Mr. Horan said that he would work with the front desk staff to identify repeat offenders.
Ms. Barth inquired whether Mr. Horan has looked into a FOB keyless entry system yet, to which he responded he has not. Also, following up on a safety issue raised by a resident at the September 2009 Board Meeting, a sign-up sheet will be available for residents who would like to have their locks replaced by Federal Lock and Safe. If at least 20 people sign up, the price will be dropped from $325 to $265 per door. Mr. Horan stated that he would also distribute a flier with the pricing and other information.
E. Committee Reports
Social Committee: An invitation has been sent out for the Halloween party, which is for all children in the building and grandchildren of all residents. Mr. Horan will be decorating the party room, and costumes are encouraged. There is no charge for this event.
The committee is organizing a brunch for November 22, 2009. Menus are still being considered, but fliers will be posted and notices will go in boxes once plans are finalized. There will be a nominal charge for this event.
Other upcoming events include a “Box Party,” a service project for the charity So Others Might Eat (SOME) to be held on December 5, 2009. The holiday party is planned for December 13, 2009.
Renovations Committee: Ms. Barth reported that plans are moving along as scheduled. On September 22, 2009 the committee met with Hartman Design group to see finishes for the first level of the lobby and plans for Phase 2 of the renovations, which include: the east and west lobbies; front desk; party room; and modernizing restrooms. The County has approved plans for the bathroom work.
The advisory committee met and also approved the plans. The Hartman Design Group has started Phase 3 plans, and the timing of the refurbishment is dependent upon the horizontal piping and asbestos work’s being completed in the lobby. Ms. Barth added that the lobby design is elegant and inviting, and creates space for residents and guests to meet. Drawings and samples of the finishes should be available in January, which will be presented at a wine and cheese reception.
Pet Committee: The committee has completed a report that includes recommendations on how pet ownership rules should be amended and strengthened. A summary of the report was read by a member of the Board Committee and included the following suggestions:
1) Owners should always carry clean up materials for their pets;
2) Dog weight should not exceed 25 pounds at maturity, with the exception of service animals;
3) Guest dogs should meet the same weight requirements and can stay for a maximum of two weeks;
4) A registration form for each dog should be kept on file in the management office, which would include a photo, size of the dog and vaccination record;
5) Only one pet should be allowed on the elevator at a time, and pet owners should give residents without pets the right of way;
6) In May, a referendum should be put forth at the annual meeting to decide whether pets should still be allowed to reside in the building; and
7) The same rules and privileges regarding pet ownership should not be extended to renters.
The chair of the committee reportedly conducted extensive research, which included reviewing pet policies and interviewing residents from other Legum and Norman managed buildings. The committee would like to adopt the pet registration form used by the Carlton. Every building has different policies, one not allowing pets at all, and others requiring substantial financial arrangements to have pets. Mr. Murdoch stated that legal counsel has advised not to discriminate between owners and renters with regard to pets. The committee reported that warning letters sent to pet owners sometimes gave incorrect information and that there are discrepancies on the current list of pet owners that is kept in the Management Office. Two pet owners participated in discussions with the committee to offer their perspective.
Some residents in the past have expressed concern about a significant number of renters having pets. Dr. Muller stated that only 5 of 22 dogs in the building belong to renters. He added that although he appreciated the committee's hard work, they went beyond addressing the two problems of 1) uncooperative pet owners not being reported to management and 2) the mess caused by pets in public areas not being cleaned up by their owners. The other suggestions concerning weight and rentals did not offer solutions for the two problems in question. Addressing these additional items would require changing the ByLaws, which would require approval of 2/3 of the ownership voting in favor of the change. Mr. Cunningham responded that the Board never limited the scope of the committee investigation and that this will be discussed more in November.
Energy Committee: Although the committee did not meet last month, a subcommittee was formed to help identify engineering consulting firms with expertise in energy conservation to help with future projects such as window and door replacement. These firms will be presented at the next meeting for the Board’s consideration. The committee is looking into compact fluorescent lights for the elevators and establishing contacts with energy conscious organizations.
Dr/ Muller presented a proposal to buy or lease a blood pressure machine for the exercise room. The cost of the machine is $5,000 or could be leased for $150 per month for a minimum of three months. Ms. Barth mentioned that a nurse at Friendship Heights Center will do a blood pressure check for any member of Chevy Chase Village on Tuesday afternoons. Dr. Muller stated that it is his understanding that there is no liability for having this machine available, but this question should be raised with the Association's attorney. Mr. Cunningham stated that this issue should be deferred to the exercise committee which can report next month.
Comments from the Floor
• Mr. Bressler noted that there have been several incidents of toilet bowls breaking and causing significant water damage. He inquired whether a group rate could be available in changing some of the toilet bowls as was made available for locks. Mr. Horan stated that he would investigate.
• A resident recommended the use of water sensors in units to detect early water leaks. She stated that sensors alerted her to a water leak caused by the HVAC unit. Mr. Horan stated that he would look into a bulk deal for these units.
• A concern was expressed about ensuring that the new security cameras in the elevators have a 360 degree scope.
• A resident inquired about what would happen to dogs over 25 pounds that currently reside in the building, if the new pet guidelines were adopted. Mr. Cunningham stated that those dogs would be “grand-fathered”.
• A resident reported watching a car sneak into G1 parking by following closely behind a resident entering the garage. Mr. Horan suggested one solution could be shortening the time the garage door stays open, but concerns were voiced about those residents who need the longer time to get their cars through the garage door.
• A question was posed about whether violent crime has ever occurred in the garage. Residents stated that there have been incidents of vandalism and one attack, which occurred ten years ago.
• A resident complained that some owners allow their dogs to urinate on the flower beds. Ms. Barth added that there are some odors in the arcade area, particularly around the doors between the east lobby and arcade and should be cleaned. Possible ways to deter dogs from the beds may be powder, fencing, or signs in the beds to remind owners.
• A suggestion was made to survey residents about amenities and activities and that the Board should describe its vision for the building. Ms. Fridell responded that Board members regularly discuss these issues and have a common vision for the building and what will enhance its value.
• A question was raised about having a defibrillator present in the building, given that they are inexpensive and have been shown to save lives. Dr. Muller stated that a change in the Maryland and District laws requires a licensed physician to take responsibility.The Association does not currently have such an arrangement and he does not believe the current security company employees would have the appropriate expertise to use the defibrillator.
Adjournment
The President adjourned the meeting at 9:32 p.m.
The initial draft of the Minutes, upon which these Minutes are based, was prepared by Jana Bowcut of On the Record, Inc.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Friday, October 30, 2009
Halloween at the Elizabeth 2009
On October 30, 2009, the Elizabeth social committee in partnership with Mr. and Mrs. Mike Horan threw a Halloween party for the children of the Elizabeth and some of the grandchildren of residents. 
One resident who has lived here a couple of times and is now back again said this was the best Halloween party she and her son had ever attended. Mike Horan, our new site manager and his wife, brought their collection of Halloween decorations for everyone to enjoy. There was a bubble machine, a remote controlled gnome, 
a moving spider, and many other wonderful and scary things to examine.
Elizabeth staff Hollis and Marcel applied tattoos to the hands and arms of those who wanted them.Games were played.
And the children and the adults were invited to partake of cupcakes and ice-cream as well as what makes the American Halloween what it is -- CANDY. Trick or Treat!
Wednesday, October 28, 2009
September 2009 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting September 15, 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:
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Property Manager, Legum & Norman
Martha Morris .........Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:35 pm.
President’s Report
• Mr. Cunningham welcomed everyone and noted there are several significant projects now underway.
• Staff is available for residents’ comments and concerns.
• There were some glitches in the transition to the new financial system but they are being resolved.
• The Association is already seeing some cost savings from obtaining competitive bids on contracts.
• Management has changed procedures for major contracts and developed an addendum process that will protect the Association.
• Several major contracts are underway:
o AD Heath Company is conducting an evaluation of the horizontal piping replacement work that will be done on the lobby level
o Refurbishing Committee will make a report tonight
o We are about to start on the façade improvements approved at last meeting
o emergency generator contract; Legum & Norman can help speed this along
• Urged residents to get involved in committee work
Approval of Minutes
MOTION Dr. Muller moved to approve the minutes of the August 11, 2009 meeting as presented. Ms. Barth seconded the motion. The vote to approve was unanimous.
Treasurer’s Report
• Will no longer provide analysis of monthly and YTD results as Legum & Norman provides this in its monthly report.
• Noted a doubling in amount of delinquencies; it is hoped this is due to residents’ sending their payments to the old lockbox; asked Management to research this.
• Repeated her requests that L&N restate income statement presentation by adding a line item to for one-time extraordinary expenses related to the transition to outside management;and reclassifying transition expenses, including legal fees and severance costs.
• Prepared written Investment Procedures, revised as a result of transition to L&N, to be presented to Board for approval tonight.
• Dr. Muller inquired about the status of an application for a $1 million line of credit requested at an earlier Board meeting. The Treasurer indicated that she has not yet researched this project.
Old Business
Mr. Horan reported on three major contracts:
o AD Heath Company is evaluating the horizontal piping project. Notices will be sent out with the project start date.
o The façade work will begin at the end of September on Tiers 14 and 15.
o He and Mr. Algner are working with engineer Robert Faas to facilitate upgrading the emergency generator.
Mr. Algner reported on the following:
o There will be a pre-mobilization meeting at 1:00 pm on September 23 to discuss the façade work.
o After discussion with legal counsel on the draft AIA contract, he recommends that the references to arbitration be removed, which is standard at other associations. He recommends that the Board accept the contract as revised.
New Business
Garage Lighting — Mr. Horan reported that he has received two proposals for replacement of the lighting in the garage and stairwells with a third anticipated. He recommends Derick Associates because they will pass on an $11,000 Pepco rebate to the Association, they were able to provide a cost per fixture, and they estimate that the Association will save $37,315 in five years ($7,463 per year). He expects the brightness with the new fixtures to be the same or slightly better.
MOTION Dr. Muller moved to accept the proposal from Derick Associates for replacement of the lighting in the garage and stairwells with more energy-efficient fixtures at a cost not to exceed $28,100. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
Residents’ Door Locks — Mr. Horan reported that a resident was unable to access his unit due to failure of the door lock. This represented a dangerous situation as the resident on separate occasions was locked outside then locked inside his apartment. Due to the age of the locks, they cannot be replaced nor are parts available for repair. Federal Lock and Safe has determined that the current door lock can be disabled and a new dead bolt can be added at a cost of $351. As a safety precaution, Management would like to inform residents of the options available and give them contact information for Federal Lock and Safe to allow residents to correct the problem individually, as door locks are the responsibility of unit owners. The new hardware will look similar to the existing materials. Ms. Barth said she would arrange for Mr. Horan to receive the information on the door hardware being considered by HDG so the new locks and new hardware are matching.Ms. Barth added that the Refurbishment Committee has looked into the possibility of replacing doors and locks; doors appear to be out of budget range but new hardware is being considered. Mr. Horan also offered to find a reliable, reasonable after-hours locksmith and place contact information at the front desk in case other residents also encounter a lock-out.
Landscaping Presentation – Mr. Bressler
Mr. Bressler arranged for a representative from Merrifield Garden Center to address the Board and community with ideas for a new landscaping design. Mr. Tom Wallerich distributed drawings to the Board and presented his various ideas for plantings in gardens around the building. . After his presentation, the Board agreed that they will need to place his proposal into the context of the current year budget. Mr. Horan distributed the specific proposal to Board members for consideration at a future Board meeting Also, it was mentioned that Landscape Maintenance was previously approved, with the contract awarded to Valley Crest.
Security System — Dr. Muller
• Door to lobby keeps jamming open; Mr. Horan is working on a resolution. The refurbishment may include new electronic doors.
• Some residents have reported that their visitors are still not always being announced. Mr. Horan will be meeting with all Front Desk staff to review procedures.
• Security Patrol – Mr. Horan and Mr. Cunningham have established an 8 pm – 4 am night shift schedule. This will ensure that residents will have an escort available to storage bins and from the garage at night and that the front desk position will be filled while the clerk is on dinner break.
• A resident had submitted a written report to the Board concerning a vehicle in the garage that the resident reported was leaking gasoline. Mr. Horan resolved this particular incident, but Dr. Muller has asked the security guard to note any vehicles in violation of the rules and report them to Mr. Horan for action.
• Mr. Horan is reviewing the Association’s security system, beginning with cameras. Mr. Horan reported that See View Security analyzed the security cameras and recording system. They are suggesting replacing the outdated tape system with a digital (DVR) system. As a second step, they recommend changing the cameras if the recording quality does not improve. They will upgrade one camera as a test. Mr. Horan will obtain at least one more bid for this work.
Committee Reports
Exercise Committee – Alexandra Kielty
Ms. Kielty reported that a summary of the results from the survey was distributed to residents today. 85 responses were received. The committee will hold another open meeting. The committee will obtain proposals for equipment replacement. The budget allows for replacement of pieces of equipment but not for refurbishing the exercise room. The committee hopes to have Hartman Design Group review the exercise area but expects a full renovation would not be feasible for 2-4 years.
Refurbishment Committee – Judith Barth
Ms. Barth noted that while the committee did not meet this past month, Hartman Design continues to work on the design plan for The Elizabeth. Next week the firm will present choices for fabrics and other design elements. The committee will then meet with the Advisory Committee for their review and evaluation. Ms. Barth expects that she will have design boards to present at the October Board Meeting.
Energy Conservation – Joan Rosenbach
The committee met on August 27.
• A new subcommittee was established to recommend an engineering contractor to the Board to provide recommendations for energy-saving measures and estimated payback.
• The committee welcomes additional members.
• The Association will sell Compact Fluorescent Light bulbs to residents at a discounted bulk price. Notices will be posted in elevators.
• Received an estimate of $3.2 million for new windows and doors. No action is required on this; the committee is just gathering information.
• Board Treasurer Fridell met with the committee and made a presentation on issues and options related to financing the purchase of energy-saving equipment.
Pet Committee – Tobi Esler
Ms. Esler reported that the committee had met twice and is focusing on House Rule 15B, which requires that pets be registered with management. The committee recommends that a new form be distributed to residents to ensure the list is up to date and complete. The committee asked management for copies of sample pet rules from other properties for their review and plans to have recommendations for the Board’s October meeting. The committee had asked management to place a notice in the elevators reminding pet owners of their responsibilities and plans to distribute more such reminders in the future.
Other New Business
Floor Reps – Tobi Esler
Ms. Esler reported that she and Stephanie Olshan are Co-Chairs. They met with Mr. Horan on September 10 and explained the purpose of the committee, which is: 1) to welcome new residents; 2) to keep management informed of resident concerns; and 3) to collect proxy votes for the Association’s annual meeting. The committee is working on adding items to the welcome packets. Also, they asked management to post bilingual signs in the trash rooms reminding residents and others who use them about proper bagging and disposal procedures.
Other
Ms. Kielty asked about the status of the pool area plants. Mr. Horan recommends removing them. Ms. Gann noted that these plants belong to residents and should be offered to them before disposing of them.
Ms. Kielty asked about the status of the fan blower in the pool area. Mr. Horan will look into it.
Ms. Fridell reviewed a memo she had distributed to the Board regarding investment procedures for Reserves. The current account is at Wachovia Bank in “brokered CDs” in a program called “CDAR.” Legum & Norman and the auditors are recommending that all investments be consolidated under one roof and Ms. Fridell is recommending that as the several non-Wachovia CDs come due over the next 7 months, that they be transferred to the Wachovia program. She recommends against cashing in any CDs prior to maturity due to penalties that would be imposed. By April 2010 all investments will then be consolidated. At that time, if the Board wishes to consider moving the entire investment portfolio, they can do so.
MOTION Mr. Bressler moved to adopt Ms. Fridell’s recommended Investment Procedures. Mr. Axelrad seconded the motion.
Discussion. Mr. Algner noted that John Rhodes, president of Legum & Norman, had proposed investment procedures and that he is in agreement with the Board’s actions. Mr. Cunningham added that he also recommends this procedure and that the Board is welcome to discuss if it wants to change brokerage firms once the investments are consolidated by April 2010. The vote to approve was unanimous.
Residents’ Comments
• A resident complimented Mr. Horan on the job he is doing so far. She noted that some residents have already replaced their door locks. She also noted that some of the original toilets are breaking and flooding, and asked management to obtain a bulk rate for owners to replace this item. She asked if the leases that are presently used by owners comply with Maryland and county laws. The Board confirmed that they do. The resident also asked that Legum & Norman research tax credits available from the federal and county governments for energy conservation measures and how to finance such expensive projects.
• Two residents debated the first speaker’scomplaint that the second speaker did not relinquish the exercise machine he was using to her after 20 minutes as required by the rules. The second speaker said he offered the machine to a resident in a wheelchair and disputed the facts recited by the first speaker, who thereafter reiterated her statements.
• A resident commented that the tax credits for window replacement will expire in 2010. He also asked about the positioning of the cameras in the elevators and noted that a vendor had been in the exercise room today repairing some of the equipment.
• Mr. Cunningham stated that House Rules should be followed and that if residents have complaints, they should bring them to the attention of management. Secondly, he noted that the Association has established procedures for resolving disputes between residents that can be invoked if necessary.
• A resident reported that an individual on a walker or in a wheelchair cannot get past the first piece of equipment in the exercise room because the equipment is too close together.
• A resident who is new to the community suggested that the Association might consider forming a Finance Committee.
• A resident cautioned that the responses of the exercise facilities survey should be divided into two groups: those who use the facility and those who do not. Residents who do not use the facility might not be as willing to spend funds on amenities such as televisions when those who do use the facility might be in favor of such an option. Secondly, the resident said that dog owners are entitled to respect. Thirdly, she noted the need to follow the pet rules in light of the upcoming refurbishment project.
• A resident agreed that residents should clean up after their dogs but that residents should also be polite to pet owners.
• A resident passed on a compliment to Ms. Fridell.
Next Meeting
The next meeting of the Board of Directors will be held on October 20, 2009.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:50 pm.
Martha Morris, Recording Secretary, prepared the initial draft of these Minutes.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting September 15, 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:
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Property Manager, Legum & Norman
Martha Morris .........Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:35 pm.
President’s Report
• Mr. Cunningham welcomed everyone and noted there are several significant projects now underway.
• Staff is available for residents’ comments and concerns.
• There were some glitches in the transition to the new financial system but they are being resolved.
• The Association is already seeing some cost savings from obtaining competitive bids on contracts.
• Management has changed procedures for major contracts and developed an addendum process that will protect the Association.
• Several major contracts are underway:
o AD Heath Company is conducting an evaluation of the horizontal piping replacement work that will be done on the lobby level
o Refurbishing Committee will make a report tonight
o We are about to start on the façade improvements approved at last meeting
o emergency generator contract; Legum & Norman can help speed this along
• Urged residents to get involved in committee work
Approval of Minutes
MOTION Dr. Muller moved to approve the minutes of the August 11, 2009 meeting as presented. Ms. Barth seconded the motion. The vote to approve was unanimous.
Treasurer’s Report
• Will no longer provide analysis of monthly and YTD results as Legum & Norman provides this in its monthly report.
• Noted a doubling in amount of delinquencies; it is hoped this is due to residents’ sending their payments to the old lockbox; asked Management to research this.
• Repeated her requests that L&N restate income statement presentation by adding a line item to for one-time extraordinary expenses related to the transition to outside management;and reclassifying transition expenses, including legal fees and severance costs.
• Prepared written Investment Procedures, revised as a result of transition to L&N, to be presented to Board for approval tonight.
• Dr. Muller inquired about the status of an application for a $1 million line of credit requested at an earlier Board meeting. The Treasurer indicated that she has not yet researched this project.
Old Business
Mr. Horan reported on three major contracts:
o AD Heath Company is evaluating the horizontal piping project. Notices will be sent out with the project start date.
o The façade work will begin at the end of September on Tiers 14 and 15.
o He and Mr. Algner are working with engineer Robert Faas to facilitate upgrading the emergency generator.
Mr. Algner reported on the following:
o There will be a pre-mobilization meeting at 1:00 pm on September 23 to discuss the façade work.
o After discussion with legal counsel on the draft AIA contract, he recommends that the references to arbitration be removed, which is standard at other associations. He recommends that the Board accept the contract as revised.
New Business
Garage Lighting — Mr. Horan reported that he has received two proposals for replacement of the lighting in the garage and stairwells with a third anticipated. He recommends Derick Associates because they will pass on an $11,000 Pepco rebate to the Association, they were able to provide a cost per fixture, and they estimate that the Association will save $37,315 in five years ($7,463 per year). He expects the brightness with the new fixtures to be the same or slightly better.
MOTION Dr. Muller moved to accept the proposal from Derick Associates for replacement of the lighting in the garage and stairwells with more energy-efficient fixtures at a cost not to exceed $28,100. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
Residents’ Door Locks — Mr. Horan reported that a resident was unable to access his unit due to failure of the door lock. This represented a dangerous situation as the resident on separate occasions was locked outside then locked inside his apartment. Due to the age of the locks, they cannot be replaced nor are parts available for repair. Federal Lock and Safe has determined that the current door lock can be disabled and a new dead bolt can be added at a cost of $351. As a safety precaution, Management would like to inform residents of the options available and give them contact information for Federal Lock and Safe to allow residents to correct the problem individually, as door locks are the responsibility of unit owners. The new hardware will look similar to the existing materials. Ms. Barth said she would arrange for Mr. Horan to receive the information on the door hardware being considered by HDG so the new locks and new hardware are matching.Ms. Barth added that the Refurbishment Committee has looked into the possibility of replacing doors and locks; doors appear to be out of budget range but new hardware is being considered. Mr. Horan also offered to find a reliable, reasonable after-hours locksmith and place contact information at the front desk in case other residents also encounter a lock-out.
Landscaping Presentation – Mr. Bressler
Mr. Bressler arranged for a representative from Merrifield Garden Center to address the Board and community with ideas for a new landscaping design. Mr. Tom Wallerich distributed drawings to the Board and presented his various ideas for plantings in gardens around the building. . After his presentation, the Board agreed that they will need to place his proposal into the context of the current year budget. Mr. Horan distributed the specific proposal to Board members for consideration at a future Board meeting Also, it was mentioned that Landscape Maintenance was previously approved, with the contract awarded to Valley Crest.
Security System — Dr. Muller
• Door to lobby keeps jamming open; Mr. Horan is working on a resolution. The refurbishment may include new electronic doors.
• Some residents have reported that their visitors are still not always being announced. Mr. Horan will be meeting with all Front Desk staff to review procedures.
• Security Patrol – Mr. Horan and Mr. Cunningham have established an 8 pm – 4 am night shift schedule. This will ensure that residents will have an escort available to storage bins and from the garage at night and that the front desk position will be filled while the clerk is on dinner break.
• A resident had submitted a written report to the Board concerning a vehicle in the garage that the resident reported was leaking gasoline. Mr. Horan resolved this particular incident, but Dr. Muller has asked the security guard to note any vehicles in violation of the rules and report them to Mr. Horan for action.
• Mr. Horan is reviewing the Association’s security system, beginning with cameras. Mr. Horan reported that See View Security analyzed the security cameras and recording system. They are suggesting replacing the outdated tape system with a digital (DVR) system. As a second step, they recommend changing the cameras if the recording quality does not improve. They will upgrade one camera as a test. Mr. Horan will obtain at least one more bid for this work.
Committee Reports
Exercise Committee – Alexandra Kielty
Ms. Kielty reported that a summary of the results from the survey was distributed to residents today. 85 responses were received. The committee will hold another open meeting. The committee will obtain proposals for equipment replacement. The budget allows for replacement of pieces of equipment but not for refurbishing the exercise room. The committee hopes to have Hartman Design Group review the exercise area but expects a full renovation would not be feasible for 2-4 years.
Refurbishment Committee – Judith Barth
Ms. Barth noted that while the committee did not meet this past month, Hartman Design continues to work on the design plan for The Elizabeth. Next week the firm will present choices for fabrics and other design elements. The committee will then meet with the Advisory Committee for their review and evaluation. Ms. Barth expects that she will have design boards to present at the October Board Meeting.
Energy Conservation – Joan Rosenbach
The committee met on August 27.
• A new subcommittee was established to recommend an engineering contractor to the Board to provide recommendations for energy-saving measures and estimated payback.
• The committee welcomes additional members.
• The Association will sell Compact Fluorescent Light bulbs to residents at a discounted bulk price. Notices will be posted in elevators.
• Received an estimate of $3.2 million for new windows and doors. No action is required on this; the committee is just gathering information.
• Board Treasurer Fridell met with the committee and made a presentation on issues and options related to financing the purchase of energy-saving equipment.
Pet Committee – Tobi Esler
Ms. Esler reported that the committee had met twice and is focusing on House Rule 15B, which requires that pets be registered with management. The committee recommends that a new form be distributed to residents to ensure the list is up to date and complete. The committee asked management for copies of sample pet rules from other properties for their review and plans to have recommendations for the Board’s October meeting. The committee had asked management to place a notice in the elevators reminding pet owners of their responsibilities and plans to distribute more such reminders in the future.
Other New Business
Floor Reps – Tobi Esler
Ms. Esler reported that she and Stephanie Olshan are Co-Chairs. They met with Mr. Horan on September 10 and explained the purpose of the committee, which is: 1) to welcome new residents; 2) to keep management informed of resident concerns; and 3) to collect proxy votes for the Association’s annual meeting. The committee is working on adding items to the welcome packets. Also, they asked management to post bilingual signs in the trash rooms reminding residents and others who use them about proper bagging and disposal procedures.
Other
Ms. Kielty asked about the status of the pool area plants. Mr. Horan recommends removing them. Ms. Gann noted that these plants belong to residents and should be offered to them before disposing of them.
Ms. Kielty asked about the status of the fan blower in the pool area. Mr. Horan will look into it.
Ms. Fridell reviewed a memo she had distributed to the Board regarding investment procedures for Reserves. The current account is at Wachovia Bank in “brokered CDs” in a program called “CDAR.” Legum & Norman and the auditors are recommending that all investments be consolidated under one roof and Ms. Fridell is recommending that as the several non-Wachovia CDs come due over the next 7 months, that they be transferred to the Wachovia program. She recommends against cashing in any CDs prior to maturity due to penalties that would be imposed. By April 2010 all investments will then be consolidated. At that time, if the Board wishes to consider moving the entire investment portfolio, they can do so.
MOTION Mr. Bressler moved to adopt Ms. Fridell’s recommended Investment Procedures. Mr. Axelrad seconded the motion.
Discussion. Mr. Algner noted that John Rhodes, president of Legum & Norman, had proposed investment procedures and that he is in agreement with the Board’s actions. Mr. Cunningham added that he also recommends this procedure and that the Board is welcome to discuss if it wants to change brokerage firms once the investments are consolidated by April 2010. The vote to approve was unanimous.
Residents’ Comments
• A resident complimented Mr. Horan on the job he is doing so far. She noted that some residents have already replaced their door locks. She also noted that some of the original toilets are breaking and flooding, and asked management to obtain a bulk rate for owners to replace this item. She asked if the leases that are presently used by owners comply with Maryland and county laws. The Board confirmed that they do. The resident also asked that Legum & Norman research tax credits available from the federal and county governments for energy conservation measures and how to finance such expensive projects.
• Two residents debated the first speaker’scomplaint that the second speaker did not relinquish the exercise machine he was using to her after 20 minutes as required by the rules. The second speaker said he offered the machine to a resident in a wheelchair and disputed the facts recited by the first speaker, who thereafter reiterated her statements.
• A resident commented that the tax credits for window replacement will expire in 2010. He also asked about the positioning of the cameras in the elevators and noted that a vendor had been in the exercise room today repairing some of the equipment.
• Mr. Cunningham stated that House Rules should be followed and that if residents have complaints, they should bring them to the attention of management. Secondly, he noted that the Association has established procedures for resolving disputes between residents that can be invoked if necessary.
• A resident reported that an individual on a walker or in a wheelchair cannot get past the first piece of equipment in the exercise room because the equipment is too close together.
• A resident who is new to the community suggested that the Association might consider forming a Finance Committee.
• A resident cautioned that the responses of the exercise facilities survey should be divided into two groups: those who use the facility and those who do not. Residents who do not use the facility might not be as willing to spend funds on amenities such as televisions when those who do use the facility might be in favor of such an option. Secondly, the resident said that dog owners are entitled to respect. Thirdly, she noted the need to follow the pet rules in light of the upcoming refurbishment project.
• A resident agreed that residents should clean up after their dogs but that residents should also be polite to pet owners.
• A resident passed on a compliment to Ms. Fridell.
Next Meeting
The next meeting of the Board of Directors will be held on October 20, 2009.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:50 pm.
Martha Morris, Recording Secretary, prepared the initial draft of these Minutes.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Sunday, October 18, 2009
ECA Reserve Study: Remarks of Concern
[This paper, dated October 10, 2009, comes from Ted Ariev. Text in bold is strictly the author's emphasis. Mr. Ariev is a long time resident owner at the Elizabeth and has a strong background in engineering, architecture, and construction.]
In January 2009, Reserve Advisors, Inc. submitted a Full Reserve Study of The Elizabeth to the Board of Directors. This Reserve Study was based on a visual, noninvasive inspection conducted in November 2008. The study included an assessment of the condition of the building structure, systems and equipment; and the estimated useful life, remaining useful life and the replacement cost of these items.
The purpose of the Reserve Study is to provide a budget planning tool to address anticipated future major expenditures. This Study does address most of the major building elements and equipment. However, either at the direction of the Board or through oversight the Study did not address the exterior concrete and balcony issue or the replacement of the McQuay fan-coil units. Further, due to limited observation of existing exterior conditions only, Reserve Advisors, Inc. did not fully appreciate the necessity for replacement of the windows and sliding doors.
The following addresses these issues with the intent that funding be added to the Five Year Plan in order to accomplish the work necessary to assure an adequate environment and life style for the residents of The Elizabeth.
EXTERIOR CONCRETE AND BALCONIES
Recently, the noise and disruption at the Willoughby brought to mind a long standing and potentially very serious problem. In the 1970’s, the concrete used in buildings incorporated a type of cement that caused deterioration of the concrete when exposed to moisture and subsequent rusting of the reinforcing steel. This problem is endemic. It is only necessary to look at the Willoughby and our own experience in the garage. Prohibiting the use of floor coverings, and painting the concrete on the balconies will not prevent this problem from occurring. There are simply too many chips and cracks that allow the concrete to be exposed to moisture. The exterior concrete on our building, most of which are the balconies, will deteriorate and will require extensive repair, similar to that implemented in the garage and at the Willoughby.
A significant number of the balconies in the building were built with the slope of the balcony floor either flat or sloping towards the sliding doors, rather than away from the building. This causes wind driven rain on the balcony to either stand on the balcony slab, or much more seriously, pond against the door. Occupants presently sweep the standing water off the balcony causing staining on the brick and a great deal of dirt and refuse on the balconies below. The water allowed to stand against the door will eventually migrate through the sealant into the concrete slab (please see previous paragraph), and into the unit damaging any finish flooring, wood, carpet, etc. A few years ago, this problem was acknowledged and remedial work was included in the Five Year plan. It was not implemented, nor is it included in the present Five Year Plan.
It is essential that funds be provided in the Five Year plan to address the exterior concrete and balcony issues without further delay.
REPLACEMENT OF THE McQUAY UNITS
The age of the building and the condition of the McQuay fan-coil units indicate that the units will fail at an ever increasing rate and require replacement. The drain pans are rusting, and the coils, valves and piping in the units are subject to leaking. The humidification system was turned off years ago to prevent damage within the apartment units.
Apparently the issue is not whether the fan-coil units need to be replaced, but by whom and how it will be paid for. The Board of Directors believing the replacement of the fan-coil units a direct responsibility of the owners; choose not to include the cost of replacement in the Reserve Study. This is disingenuous. The owners will pay for replacement of the fan-coil units, whether it is included as part of an overall building maintenance program, or done individually and at different times by the owners. The issue then becomes what is the most cost effective and technically prudent way to proceed with this work.
Recognizing that the units do require replacement, accomplishing this work as a coordinated effort would certainly be more cost-effective (the bigger the contract, the less expensive it will be), but would also permit providing an upgraded system consistent with present technology. It would permit the new system to address heating, cooling, and ventilating requirements that replacing the units on an individual basis would not.
There is no question that replacing the units on an individual basis is possible, and has in fact been the process for accomplishing this work to date. However, continuing this process will result, when all the units have been replaced, with essentially having exactly the same heating and cooling system we have now, a 1970’s system.
We would be seriously remiss if we did not take the opportunity to address the ventilating, humidification and controls systems that we are presently lacking. We would also be able to better coordinate the new fan-coil units with an upgraded and more efficient overall building system. Lastly, approaching this issue on an integrated and overall basis would also be much less expensive than replacing the fan-coil units individually. We should start this effort now.
WINDOWS AND SLIDING DOORS
The existing windows and balcony doors are original to the construction of the building, and although they appear to be in fair to good condition, are nearing the end of their expected useful lives. The Reserve Study addressed the issue of window and sliding glass door replacement. They concluded that the windows and doors would need to be replaced starting in 12 years. This conclusion was based on a limited observation of existing conditions.
Although they are not about to fall from their frames, a significant number of sliding window units are presently inoperable. There are occupants of the building who cannot presently open their windows, or choose to cover them (making them inoperable) in order to control cold, wind and rain infiltration. The failure of the windows in this manner will increase. The inability to open windows combined with the absence of any ventilating system in the units has an extremely negative impact on health and environment issues for occupants. The mold issues are a prime example of this problem. There is also the less critical, but nevertheless, significant issue of aesthetics. The condition of the window and door frames appreciably diminishes the appearance of the building and thus the property value of our units.
The Reserve Study estimated an escalated cost of $8,138,460 for replacement of the windows and doors. More significantly, they note the current cost for the replacement at $5,641,600. This amount, $5,641,600 apparently compares to a cost of $2,394,800 estimated by the Energy Audit consultants.
Maurice Trebach has met with two window subcontractors to gather additional information. These meetings have resulted in confirmation that high-quality; double-pane, insulated, aluminum frame replacement windows and sliding glass doors with thermal breaks are available and would be effective. The subcontractors have offered estimates of the costs, but they are based on different products, and incomplete available information. However, based on his conversations, it is reasonable to assume the cost for replacing the windows and sliding glass doors now would be approximately 3.5 to 4 million dollars. This is consistent with the estimate included in the Reserve Study. It is somewhat lower than that provided in the Reserve Study, but is based on better information and experience.
Based on the present condition of the windows and doors, improved heating and cooling system effectiveness, energy cost savings, reduced noise transmission, proper ventilation system balancing, and improved property values, a program to replace the windows and doors should be implemented without further delay.
Funds to retain an architect to assist the Board in developing an implementation program; there are a number of ways to proceed, and then to prepare bid documents, should be authorized now.
FUNDING AND SCHEDULE
In a building of this age and condition, there are innumerable calls for funding for long-term maintenance issues. The Reserve Study generally addressed them. The three issues noted above were either not addressed in the Study or not assigned adequate urgency. “Deferred maintenance” is the most expensive and least desirable way to approach maintenance issues.
The issues of repair of the exterior concrete and balconies, the replacement of the McQuay units, and the replacement of the windows and doors must be addressed in the Five Year Plan.
Sooner is always less expensive than later, and funding will never again be cheaper.
If a resident of The Elizabeth were living in a single-family house, there would be equally significant financial issues to be addressed. After 35 years, the house would have had a couple of roof replacements, the siding, if not masonry, would likely have been replaced, there would have been some structural repairs, the heating and cooling system would have been replaced or upgraded, the windows and doors would have been replaced or this work would be imminent in addition to whole series of expensive maintenance projects. There would be little question of funding. This work would be done or the resident would be living in squalor.
Do the residents of The Elizabeth want to live in squalor?
In January 2009, Reserve Advisors, Inc. submitted a Full Reserve Study of The Elizabeth to the Board of Directors. This Reserve Study was based on a visual, noninvasive inspection conducted in November 2008. The study included an assessment of the condition of the building structure, systems and equipment; and the estimated useful life, remaining useful life and the replacement cost of these items.
The purpose of the Reserve Study is to provide a budget planning tool to address anticipated future major expenditures. This Study does address most of the major building elements and equipment. However, either at the direction of the Board or through oversight the Study did not address the exterior concrete and balcony issue or the replacement of the McQuay fan-coil units. Further, due to limited observation of existing exterior conditions only, Reserve Advisors, Inc. did not fully appreciate the necessity for replacement of the windows and sliding doors.
The following addresses these issues with the intent that funding be added to the Five Year Plan in order to accomplish the work necessary to assure an adequate environment and life style for the residents of The Elizabeth.
EXTERIOR CONCRETE AND BALCONIES
Recently, the noise and disruption at the Willoughby brought to mind a long standing and potentially very serious problem. In the 1970’s, the concrete used in buildings incorporated a type of cement that caused deterioration of the concrete when exposed to moisture and subsequent rusting of the reinforcing steel. This problem is endemic. It is only necessary to look at the Willoughby and our own experience in the garage. Prohibiting the use of floor coverings, and painting the concrete on the balconies will not prevent this problem from occurring. There are simply too many chips and cracks that allow the concrete to be exposed to moisture. The exterior concrete on our building, most of which are the balconies, will deteriorate and will require extensive repair, similar to that implemented in the garage and at the Willoughby.
A significant number of the balconies in the building were built with the slope of the balcony floor either flat or sloping towards the sliding doors, rather than away from the building. This causes wind driven rain on the balcony to either stand on the balcony slab, or much more seriously, pond against the door. Occupants presently sweep the standing water off the balcony causing staining on the brick and a great deal of dirt and refuse on the balconies below. The water allowed to stand against the door will eventually migrate through the sealant into the concrete slab (please see previous paragraph), and into the unit damaging any finish flooring, wood, carpet, etc. A few years ago, this problem was acknowledged and remedial work was included in the Five Year plan. It was not implemented, nor is it included in the present Five Year Plan.
It is essential that funds be provided in the Five Year plan to address the exterior concrete and balcony issues without further delay.
REPLACEMENT OF THE McQUAY UNITS
The age of the building and the condition of the McQuay fan-coil units indicate that the units will fail at an ever increasing rate and require replacement. The drain pans are rusting, and the coils, valves and piping in the units are subject to leaking. The humidification system was turned off years ago to prevent damage within the apartment units.
Apparently the issue is not whether the fan-coil units need to be replaced, but by whom and how it will be paid for. The Board of Directors believing the replacement of the fan-coil units a direct responsibility of the owners; choose not to include the cost of replacement in the Reserve Study. This is disingenuous. The owners will pay for replacement of the fan-coil units, whether it is included as part of an overall building maintenance program, or done individually and at different times by the owners. The issue then becomes what is the most cost effective and technically prudent way to proceed with this work.
Recognizing that the units do require replacement, accomplishing this work as a coordinated effort would certainly be more cost-effective (the bigger the contract, the less expensive it will be), but would also permit providing an upgraded system consistent with present technology. It would permit the new system to address heating, cooling, and ventilating requirements that replacing the units on an individual basis would not.
There is no question that replacing the units on an individual basis is possible, and has in fact been the process for accomplishing this work to date. However, continuing this process will result, when all the units have been replaced, with essentially having exactly the same heating and cooling system we have now, a 1970’s system.
We would be seriously remiss if we did not take the opportunity to address the ventilating, humidification and controls systems that we are presently lacking. We would also be able to better coordinate the new fan-coil units with an upgraded and more efficient overall building system. Lastly, approaching this issue on an integrated and overall basis would also be much less expensive than replacing the fan-coil units individually. We should start this effort now.
WINDOWS AND SLIDING DOORS
The existing windows and balcony doors are original to the construction of the building, and although they appear to be in fair to good condition, are nearing the end of their expected useful lives. The Reserve Study addressed the issue of window and sliding glass door replacement. They concluded that the windows and doors would need to be replaced starting in 12 years. This conclusion was based on a limited observation of existing conditions.
Although they are not about to fall from their frames, a significant number of sliding window units are presently inoperable. There are occupants of the building who cannot presently open their windows, or choose to cover them (making them inoperable) in order to control cold, wind and rain infiltration. The failure of the windows in this manner will increase. The inability to open windows combined with the absence of any ventilating system in the units has an extremely negative impact on health and environment issues for occupants. The mold issues are a prime example of this problem. There is also the less critical, but nevertheless, significant issue of aesthetics. The condition of the window and door frames appreciably diminishes the appearance of the building and thus the property value of our units.
The Reserve Study estimated an escalated cost of $8,138,460 for replacement of the windows and doors. More significantly, they note the current cost for the replacement at $5,641,600. This amount, $5,641,600 apparently compares to a cost of $2,394,800 estimated by the Energy Audit consultants.
Maurice Trebach has met with two window subcontractors to gather additional information. These meetings have resulted in confirmation that high-quality; double-pane, insulated, aluminum frame replacement windows and sliding glass doors with thermal breaks are available and would be effective. The subcontractors have offered estimates of the costs, but they are based on different products, and incomplete available information. However, based on his conversations, it is reasonable to assume the cost for replacing the windows and sliding glass doors now would be approximately 3.5 to 4 million dollars. This is consistent with the estimate included in the Reserve Study. It is somewhat lower than that provided in the Reserve Study, but is based on better information and experience.
Based on the present condition of the windows and doors, improved heating and cooling system effectiveness, energy cost savings, reduced noise transmission, proper ventilation system balancing, and improved property values, a program to replace the windows and doors should be implemented without further delay.
Funds to retain an architect to assist the Board in developing an implementation program; there are a number of ways to proceed, and then to prepare bid documents, should be authorized now.
FUNDING AND SCHEDULE
In a building of this age and condition, there are innumerable calls for funding for long-term maintenance issues. The Reserve Study generally addressed them. The three issues noted above were either not addressed in the Study or not assigned adequate urgency. “Deferred maintenance” is the most expensive and least desirable way to approach maintenance issues.
The issues of repair of the exterior concrete and balconies, the replacement of the McQuay units, and the replacement of the windows and doors must be addressed in the Five Year Plan.
Sooner is always less expensive than later, and funding will never again be cheaper.
If a resident of The Elizabeth were living in a single-family house, there would be equally significant financial issues to be addressed. After 35 years, the house would have had a couple of roof replacements, the siding, if not masonry, would likely have been replaced, there would have been some structural repairs, the heating and cooling system would have been replaced or upgraded, the windows and doors would have been replaced or this work would be imminent in addition to whole series of expensive maintenance projects. There would be little question of funding. This work would be done or the resident would be living in squalor.
Do the residents of The Elizabeth want to live in squalor?