March 2012 Minutes of the ECA Board Meeting

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting  March 26  , 2012

Board Present:

Seth Levine .....................President

Charles Bressler ...................Vice President

Alfred Muller ........................Treasurer

Alexandra Kielty ...................Asst. Treasurer

Ilo-Mai Harding..................... Secretary

Judith Barth ............................Director

David Robinson..................... Director

Others Present:

Gregory Roby ............Senior Community Manager, Legum & Norman

James M. Santos .........ECA General Manager, Legum & Norman

Jana Bowcut ...............ECA Recording Secretary, On the Record

On February 27, 2012, in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board met in executive session.

Call to Order: 

Mr. Levine called the meeting to order at 7:33 p.m.

President’s Report:

Mr. Levine thanked residents for attending the reception to honor the Library Committee.  He stated that applications and nominations for Board elections should be received by 5:00 p.m., April 6, 2012. 

Approval of Minutes:

MOTION Dr. Muller moved, Ms. Barth seconded, to approve the February 27, 2012, regular meeting minutes as amended.  The motion passed with one abstention by Mr. Bressler (6-0-1).

Treasurer’s Report:

Dr. Muller stated that the independent auditor’s report for FY2011, approved by the Board February 27, 2012, has been mailed to owners. The five-year reserve plan, approved on October 24, 2011, will also be mailed to owners.

Dr. Muller reported on the budget working session held Monday March 19, 2012.  He stated that the President has approved the appointment of four residents to be on an ad hoc finance committee:  Mary Catherine Curran, Sally Hart, Steven Schattman and Herman Stekler. The treasurer will meet with the committee, which will serve as an independent reviewer.

Dr. Muller said that a final vote on the FY2013 operating budget and the monthly condominium fees, starting July 1, 2012, will be taken Monday, April 30, 2012.  Written comments should be received before that date.  Three-minute verbal comments will also be heard April 30, 2012.

The Board discussed the party room rental fee.  Some members felt that it is an amenity and should not be charged for; others felt that the current $75 fee should be kept for regular wear and tear.

MOTION Dr. Muller moved, Ms. Harding seconded, to send a proposed rule change to residents to make the party room fee 100% refundable instead of 50% refundable.  The motion passed with Ms. Kielty, Mr. Bressler and Ms. Barth opposed (4-3-0). 

Maintenance, Repair and Replacement Program Update:

Mr. Ariev stated that the mechanical equipment review and analysis is about 90% complete.  A proposal was received for the inspection of the closed loop piping for the HVAC system and examination of the piping for domestic water.  Fan coil units were discussed with the engineer; it is the owners’ responsibility to repair and replace. The engineer will prepare a full study of implications, addressing the issue in terms of maintenance, efficiency, building systems, etc.  Plumbing testing and examining garage drainage systems is moving ahead.  The fire alarm system is a critical issue.

A meeting with the mechanical, electrical and plumbing engineers will be held April 3, 2012. Their study is scheduled to be completed by the end of April, then coordinated with other engineers and consultants, and finished in May.

A roof inspection was done to test moisture infiltration.  It may not be necessary to address windows and sliding doors as one problem.  A meeting with the structural engineers will be held April 17, 2012.  Their reports will be completed in June.  Coordinating meetings between the mechanical and structural engineers can then be held.  Mr. Santos has met with the architect to review the canopy, who will give an estimate of the cost and timing.

Work needs to be done to the exercise room and management office.  Mr. Santos will meet with the architect for an estimate of cost and timing.  Mr. Santos has also talked to vendors regarding the communication and security systems.  Consultant meetings with the Board will begin in June.

Ms. Kielty stated that Hartman Design has renderings of possible work for the fitness area. Ms. Barth asked whether the pool was being examined.  Mr. Ariev responded in the affirmative.  Ms. Barth also stated that renovation of garage lobbies should be instituted.

Mr. Santos stated that a contract is still in place with Complete Building Systems until the end of April for repair of fan coil units, and he is trying to negotiate some labor out of the remaining time.  He is considering the purchase of valves, and stated that cleaning of coils would be helpful.

A resident inquired who will collate all the information from the consultants.  Mr. Ariev stated that consultants will recommend a timeframe for the projects to the Board and Mr. Ariev.

Old Business:

General Manager’s Report: Mr. Santos stated that the new owner of the hair salon wishes to put up a new sign.  They will pay for the cost, but are requesting permission because it is on ECA property.

MOTION Ms. Kielty moved, Ms. Barth seconded, to allow Mr. Santos to work with the salon to develop a sign.  The salon will pay for the sign.  The motion passed unanimously (7-0-0).

A resident inquired about the status of the stairwell signage.  Mr. Santos stated that it will likely cost about $3,000.  The Board can approve by e-mail.

The website is still outstanding.  The Legum and Norman management contract does not have the same language as the Associa contract.  Associa will provide additional language.

Community Manager’s Report:  Mr. Roby stated that the January and February financial reports are being reconciled in tandem, and are not yet available due to a software transition.

Refurbishment: Ms. Kielty reported the results of the corridor design survey:  option 1 (green branches) 67 in favor; option 2, 27 in favor; 30 did not like either one; 124 responded.

The chest/lamp option with chairs:  48 said yes and 29 said no.  The bench and sconce option:  63 said yes, 24 said no.  95 said there should be a mirror.  Hartman has provided options to protect the wallpaper damaged by luggage carts.  Recommendations will be developed for Board consideration.   Ms. Kielty recommended additional renderings for hallways.  Dr. Muller noted that hallway work cannot be done until the fire and safety issues are addressed.

MOTION  Ms. Kielty moved, Dr. Muller seconded, to ask Hartman Design to give one to two more options for hallways, with costs, and information about all purchased furnishings. The motion passed with objections from Mr. Bressler and Ms. Barth (5-2-0).

Committee Reports:

Landscape: The committee met last week to review the landscaping, and proposes to upgrade/update some plants at a cost of  $2,215.  Additional annuals will be added for $462, for a total cost of $2,677.

MOTION  Ms. Kielty moved, Ms. Barth seconded, to accept the proposal from Ruppert Landscape to add new annuals and shrubs at a cost of $2,677.  The motion passed unanimously (7-0-0).

Library:  No Report.

Floor Representatives:  Trash containers are not being rinsed out and large boxes are being put into trash rooms that should go to G1. Some changes should be considered such as emptying trash rooms more frequently or putting in larger containers. Wanda Powell has put together some excellent welcoming packets for new residents.

Fitness:  Mr. Santos has been made aware of some issues, which are being corrected.

Making a Difference (MAD):  An event is planned for May 8, 2012, for which the committee will be collecting new and used baby items.  New brochures will be distributed on recycling useable items. This will be advertised in the newsletter.

Newsletter:  A committee is producing a publication that contains news of the building and intends to foster greater communication among residents.  A Board member questioned what the format will be and where it will be printed. This is still to be determined.

Comments from the Floor:

• A resident inquired about the utility costs in the draft budget.  Costs have increased in past years, but the budget shows costs decreasing.  Mr. Roby stated that contracts were negotiated that provided savings.  Mr. Santos added that devices will be installed that will affect usage. 
• A resident asked about doors opening that are not hooked up to the key fob system.  Mr. Santos stated that those doors will unlock.  Exterior doors will not unlock.
• A resident stated that the designers should provide several different carpet types.  Ms. Barth stated that the carpet samples have to be individually manufactured.  Mr. Roby added that these have to go to a custom weaver to be woven in the required length and width.  
• A resident thanked Ms. Barth for her involvement in the lobby renovation.
• A resident noted that the figures in the budget are not consistent with the audit.  The treasurer explained that the two reports were completed at different times, and the audit report is the official, and accurate, summary.
• A resident thanked Mr. Santos for the wastebasket in the exercise room, which has disappeared.
• A resident recommended stopping hallway renovation work until a construction schedule is determined. 

Adjournment:

The President adjourned the meeting at 10:00 p.m., with the Board to meet immediately after for an executive session, in concordance with section 11.109.1 of the Maryland Condominium Act.

The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.

DATE APPROVED: ______________________________________________________

ATTESTED BY:   Ilo-Mai Harding,  Secretary
                                  (Name)                  (Title)

Summary of April 2012 ECA Board Meeting

Present: Directors:  Charles Bressler, Judi Barth, Ilo-Mai Harding, Alexandra Kielty, Alfred Muller, David Robinson, ECA General Manager Jim Santos, ECA Assistant Manager Wanda Powell, Legum & Norman Community Manager Greg Roby, recording secretary

Absent: Seth Levine

In Memoriam: David Drazin suffered a massive stroke April 27 and died April 30, 2012. He had been working with Ted Ariev on the improvement project and had been a long volunteer on the Energy  Committee.

Improvement Projects Report by Ted Ariev:

--Phase 1 of this complex project is nearing an end—the consultants are currently working on their reports which are due June 1.

--The construction consultant will come back for inspection of the pool which he will include in his June 1 report.

--The Montgomery County Fire Marshall has agreed to waive two requirements: pressurization of the stairwells and establishment of a fire control room on the condition that we commit on paper to update our equipment. The Fire Marshall has agreed that we can do these costly updates over a period of time.

--Other things mentioned as desirable and are only being looked into are the establishment of communication system (a visual board for hallways that would, among other things, say if a fire alarm is a false alarm) and solar panels for the roof that might help us save money on heating water for example.

--Once the reports come in from the consultants, the Association needs to have a clear financial plan for how to execute our various projects.

Party Room Rental:

The ECA was polled about whether to do away with a fee for use of the party room. 44 owners responded and 27 opposed removing the use fee. The house rule stands unchanged.

Report from the Finance Committee:

The one-page recommendations report from the Finance Committee caused an uproar among ECA board members concerning how the committee selected and handled data. In the end, the Board voted for a 3% increase in condo fees just as the Finance Committee recommended. Other recommendations concern the desire to have options from the Improvement Project and to reduce the cost of the hallway refurbishment.

Among the complaints were:

--the Committee made recommendations based on the budget that the Board had been discussing when at least one of the Board members expected recommendations to be about future budgets.

--the Committee did not provide enough detail to make the report credible.

--the Board president made the mistake of allowing the Committee to go public with the report before the Board had been give the report to review.

--the Board led by the Treasurer failed to layout  a charter for the Committee that was known to everyone on the Board.

--Some of the Board felt there was a political agenda behind the early release of the report since two of the members are running for the board.

Board Action:

----Approved expense to produce a schematic diagram which maps the location of critical valves associated with heating and cooling system.

----Approved website with Associa.

Management Actions:

--Looking into a new key control system to enhance security and accountability of owner keys left at the desk.

--New email address at the front desk – ECAmanagement.com which is being used to announce package deliveries and for work orders.

--24 parking spaces have house rule violations and letters will be sent to owners with a deadline for cleaning up. Parking spaces can only contain vehicle and shopping cart, nothing else.

--Complete Building Services contract under review and greatly affects problems associated with McQuay units, especially air-conditioning.

Landscape Committee:

New plants have been installed out front with annuals to be planted middle of May. David Robinson said the landscaping has greatly improved.

Bylaw Committee:

Jason Fisher issued a clarification of the language used in the bylaw amendments now up for vote in our annual meeting. Greg Roby read that clarification and led discussion about the prospect of getting these bylaws approved. Education of the Association members is vital but was not done in advance of this week’s annual meeting. If 25% vote against the bylaw amendments, the next board will have to tackle these amendments again.

Understanding What’s in your ECA 2012 Annual Meeting Package

Elizabeth Condominium Association members should now have the Annual Meeting correspondence that includes:

--The cover letter of explanation from the ECA Board of Directors,

--Agenda for the May 2 meeting,

--A Proxy/Ballot,

--Statements by the seven candidates running for the five Board Director positions, and

--The proposed Amendments to the Bylaws. 

If you do not have this package, contact our management office and Jim Santos immediately.

This is a critically important meeting. Why?

#1 We are electing five (5) board members (normally this year we would elect 4).

#2 We will be voting on two bylaw amendments which will put us into conformance with recommendations consistent with Maryland Condominium law and which will potentially help us manage our resources better if these two amendments are approved by ECA Association members.

There has been some concern among a number of Association members that the amendment pertaining to lowering the percent of membership voting power (this is based on square footage of ownership) required to change other bylaws in the future from the current 75% to 66 2/3% is flawed because it substituted the original word ‘value’ with a the new word ‘votes.’ Therefore, our condominium lawyer Jason Fisher has issued the following clarification in which he concludes that there is no significant difference in meaning between ‘value’ and ‘votes.’

Clarification of Language in Proposed Bylaw Amendment #2

(from Association Counsel)

The modification of the language is made to have the amendment language consistent with the Maryland Condominium Act as well as the defined provisions of the documents. Specifically, Section 11-104(e)(2) of the Condominium Act provides:

(e) Amendments. --
   (2) (i) Except as provided in subparagraph (ii) of this paragraph, unless a higher percentage is required in the bylaws, the bylaws may be amended by the affirmative vote of unit owners having at least 66 2/3 percent of the votes in the council of unit owners.

The effect of the proposed amendment is to lower the percentage required to amend the bylaws from 75% to 66 2/3%, which is consistent with the Act as well as a most condominiums.  The vote required is still 66 2/3 of all owners of the Condominium (not just 66 2/3% of those present at a meeting). 

With respect to the use of the word “value” in the later sentence, it could also be changed to “vote” but in essence has no different meaning in this context.  The word “value” was used in the original version because it is referring to a petition of the owners, and the minimum number of owners who must sign the petition to initiate the action to call for an amendment.  In a petition, the owners signing are really not “voting” per se at that point, but are merely requesting a meeting be called to vote on a specific issue. As such, the signing of the petition in itself is not a “vote” but the percentage of 20% referenced merely refers to the percentage of owners required to sign the petition who represent 20% of the total owners of the association. The 20% is calculated based upon the equivalent voting interest of those who sign it.

It may be a bit confusing to some and really only a semantic difference, but the language has no significant difference in meaning.

Also, in case you are wondering, Jeremy M. Tucker, the attorney of record on our amendment changes, is a colleague of Jason Fisher, our lead attorney. They are both in the same legal firm, a firm that specializes in Maryland condominium law. Mr. Tucker has worked on other legal matters for The Elizabeth with Mr. Fisher. These are the most qualified attorneys that The Elizabeth has ever retained because they specialize in condominium law and are active with the association that supports condo laws.

Approving these new amendments is vitally important to the future health, safety, and quality of life at The Elizabeth. We need 75% of the Association votes (again, this means the votes are based on square footage of ownership value) in order to pass these bylaw changes. 

Be a good citizen by attending the annual meeting and voting then or by turning in your completed proxy to our management office. Also please encourage your neighbors to do the same. Every year those of us who attend the annual meeting are subject to the possibility that because not enough of the membership (what is required is 51%) will have filed their proxies or shown up at the annual meeting that we will not be able to conduct the annual meeting as scheduled. This year we need  75% of the membership to participate. 

If you have questions, I will do my best to help answer them. 

Successful 2012 Meet the Candidates Night

Based on a well-run and highly professional exchange between candidates and attending audience at the 2012 Meet the Candidates night, the Elizabeth Condominium Association is now positioned to elect the most qualified candidates to handle our investment in many years. We personally endorse:

Ted Ariev

John McNerney

David Robinson

Herman Stekler

Each of these candidates has the leadership experience and expertise to help us through the complex problems we are now facing. While they are open to getting training as needed to run our Association business, we believe these candidates know how to work strategically and tactically with our daunting projects as well as work successfully with all sorts of people and communities. It appears from their presentations and resumes, they also know how to put personalities aside and get the job done. In the recent past, we have had good-hearted people working for us but approaching our problems on a tactical level, detail by detail. We need directors who have the big picture in mind, the savvy, and the competencies to take us to the next level in restoring our building and our community.

We suggest each voting member of the Association take a careful look at all the candidates qualifications and talk to them one on one if possible.

There are five candidates that will be elected. We have given careful consideration to whom our fifth choice will be and we hope each Association member will do the same. Meanwhile, we are excited that with this election there is a solid opportunity to elect a board that will bring a new level of professionalism and expertise to us at a critical time in the management of our investment in the Elizabeth.

About 80 people attended the program. Jim Santos deserves credit for establishing the rules up front and keeping the program moving along.

Karren Alenier & Jim Rich

Typical Questions to Ask Candidates Running for the ECA Board of Directors

2012 Roster of Candidates Running for ECA Board of Directors

Ted Ariev

Molly Frantz

John McNerney

Al Muller

David Robinson

Steven Schattman

Herman Stekler

At the Annual Meeting May 2^nd, you will vote for five (5) of these candidates. Sitting candidates not up for election are Charles Bresler and Ilo-Mai Harding.

Monday April 16 you can meet these candidates and ask questions.

What should you ask?
[PRINT THIS OUT AND TAKE IT TO THE MEETING.]

All candidates should be asked:

Do you have your personal finances in order? – Have you always paid your condominium fees on time? Have you ever suffered bankruptcy? Have you ever failed to settle your financial debts?

Why are you running and what three things do you hope to accomplish?

What is your availability for ECA board meetings? Do you plan to attend 100 percent?, 80 percent? 50 percent?

How do you rate yourself in your ability to handle financial matters for the Association? Average, Above average, Outstanding? If you rate yourself above average or outstanding, what experience supports this rating?

What is your experience in working as a board member?

Are you willing to:

• ·    —Compromise?
• ·      --Research & seek more information, particularly from other Association members?
• ·      --Hire expects when necessary?
• ·      --Get advice from our Legum & Norman managers?

What is the likelihood that you will quit if elected?

What is your position on allowing board member to hold proxies for non-attending Association members? Should board members ethically be allowed to hold proxies and influence the outcome of the election or major issue?

It costs the Association significant money to get a board member up to speed. Are you willing to go through professional training to become a better performing board member?

If elected, would you be willing to serve as president of the ECA Board and what would you do to ensure efficiently run meetings? 

Are you familiar with Robert’s Rules of Order and if not, are you willing to be trained on these rules?

Summary of ECA Board Meeting March 26 2012

Present: Directors: Seth Levine, Charles Bressler, Judi Barth, Ilo-Mai Harding, Alexandra Kielty, Alfred Muller, David Robinson, ECA General Manager Jim Santos, ECA Assistant Manager Wanda Powell, Legum & Norman Community Manager Greg Roby, recording secretary

Party Room Rental: Treasurer Al Muller wants to do away with the rental fee. The Board decided to get input from Association. Issues include abuse of the furniture and physical aspects of the room, bookings that are not kept that keep others from using the room.

Finance Committee Appointments: Al Muller organized this committee that includes Mary Catherine Curran, Sally Hart, Steven Schattman, and Herman Stekler. What is unclear is what the responsibilities of this committee are and whether this committee should be an oversight entity and independent of Board interaction.

Minutes: passed with one change related to correction about unqualified audit.

Improvement Projects Report by Ted Ariev: Mechanical inspection almost done. Fan coil units issue: will prepare implications of this. Issues about panels & switchboard. Fire alarm system out of date. Structural work restrained by weather. Roof inspection: report coming on moisture penetration. Separation of window & sliding door replacement. Canopies can be repaired. No need to replace. Start work June or July. Replacement of sliding glass door also involves balcony repair & it requires no scaffolding. Fire alarm system 37 yrs old--code problems, parts no longer available. Can system be done in phases? Will look at moisture issues in pool area. From the floor, Pam Dillon said the fire system was upgraded.

Board action on adding new hairdresser shop to commercial outdoor sign.

Allowed but at the expense of the commercial side.

Website not approved yet. Contractual issue.

Refurbishment Survey: over choice between green and brown carpet, people preferred the green option. Preferred bench option. 124 responses.