Minutes of April 2012 ECA Board Meeting

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting  April 30, 2012

Board Present:

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

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

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

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

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

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

Absent:           

Seth Levine                              President

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 March 26, 2012, in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board met in executive session.

Call to Order:  Mr. Bressler called the meeting to order at 7:30 p.m.

Approval of Meeting Minutes:

MOTION         Dr. Muller moved, Dr. Robinson seconded to approve the March 26, 2012 regular meeting minutes as amended. The motion passed (6-0-0).

Project update from Ted Ariev:  Mr. Ariev regretfully announced that resident owner, David Drazin, had passed away, and expressed appreciation for his many contributions to the ECA. 

Mr. Ariev stated that the end of the first phase of proposals for needed refurbishments is almost complete. There will ultimately be an overall plan addressing all of the needs of the building, which will require a clear financing plan.  Copies of the initial presentation regarding refurbishment needs are available in the management office.  

Treasurer’s Report:    Dr. Muller provided a report, which is provided as an addendum  to the minutes and is available in the management office.

Financial Committee:   Mr. Herman Stekler spoke for the committee. The committee coordinated with Dr. Muller to obtain all information about ECA’s finances that included the operating budget, the five year plan, and a planning model EXCEL spreadsheet developed by a prior treasurer.

The committee made the following three recommendations to the Board:

11)    The Board should increase the condominium fee for FY 2013 by 3%, and if this generates an operating budget surplus, it should be moved to the capital reserve.

22)    The board should ask consultants working with Ted Ariev to provide options for any deficiencies that they might discover.

33)    Options should be provided for reducing the refurbishment costs by 10 or 20 percent.

Discussion:

-A resident stated that it is taking too long to go forward with improvements in the building.  Dr. Muller stated that the budget as presented will replace windows, doors and corridors, and will cover all known expenses.  Under this budget the work could be completed in the next four years.

-A resident suggested that a charter should be drafted to set guidelines for committees.

-A resident expressed concern that emergency medical technicians were not correctly directed by staff to the right part of the building.

-A resident stated that  year-end statements should state what portion of  condominium fees go to taxes.  She added that her condominium fees are often mishandled by management.

-A resident expressed concern about a front desk employee leaving. 

  

-A resident expressed concern about Board comments regarding the finance committee. She stated that the committee fulfilled its charge as it was understood.  

-A resident stated that until Mr. Ariev’s report is completed, the costs of improvements are unknown, and the present Board should just approve an interim budget.

MOTION        Dr. Muller moved, Ms. Barth seconded to approve the FY 2013 budget. The motion passed unanimously (6-0-0).

The following votes were made in regards to the FY 2013 budget:

MOTION        Dr. Muller moved, Ms. Barth seconded to approve to increase the projected income generated from the party room from $1500 to $2000. The motion passed unanimously (6-0-0).

MOTION        Mr. Robinson moved, Dr. Muller seconded to approve other income totaling $38,068. The motion passed unanimously (6-0-0).

MOTION        Dr. Muller moved, Ms. Kielty seconded to approve $329,396 in administrative expenses. The motion passed unanimously (6-0-0).  

MOTION        Dr. Muller moved, Mr. Robinson seconded to approve $843,421 in payroll expenses. The motion passed unanimously (6-0-0).

 MOTION       Mr. Robinson moved, Mr. Bressler seconded to approve $804,208 for utilities. The motion passed unanimously (6-0-0).

MOTION        Dr. Muller moved, Ms. Harding seconded to approve $116,600 for repairs and maintenance. The motion passed unanimously (6-0-0).

MOTION        Mr. Robinson moved, Ms. Barth seconded to approve $355,710 for in service agreements. The motion passed unanimously (6-0-0).

MOTION        Ms. Barth moved, Mr. Bressler seconded to approve $22,000 for taxes and licenses. The motion passed unanimously (6-0-0).

Mr. Roby confirmed that the Board had approved the FY 2013 budget with operating expenses for $2,471,335.

MOTION        Dr. Muller moved, Ms. Barth seconded to set aside $1,437,544 for contributions to the reserve fund, which reflects a 2 percent increase in condominium fees. The motion passed unanimously (6-0-0).

MOTION        Mr. Bressler moved, Dr. Muller seconded to increase the condominium fees to 3 percent to cover future expenses and put surpluses into the reserve fund.  The motion passed unanimously (6-0-0).

MOTION        Dr. Muller moved, Ms. Barth seconded to amend and increase the reserve contribution by 1.02% to $1,471,174.  The motion passed unanimously (6-0-0). Management recommends motion to amend minutes to reflect exact contribution to reserves based on the approved assessment increase in 2012-2013 budget (amount $1,482,343).  Treasurer Muller agrees with management.

Management Report:  Mr. Roby reported on the period ending March 2012.

 General Manager’s report:

 -Current work order delinquency totals are $1,022.50, of which $306.00 is at or greater than 60 days. Those residents have had their in-unit maintenance privileges suspended.

-The pool has passed inspection and the underwater lights have been replaced. 

-There have recent been service interruption with the elevators. A technician has been on-site every day over the last week, and there has been continuous operation since last Friday.

-Management recommends paying for a schematic diagram to map the location of all valves and to identify replacements at a cost of $3,750.

MOTION        Ms. Barth moved, Mr. Bressler seconded to approve the production of a schematic valve diagram at a cost of $3,750. The motion passed unanimously (6-0-0).

MOTION        Dr. Muller moved, Mr. Bressler seconded to execute proxy ballots for the Association-owned condominiums (Units #10 and 12). The motion passed unanimously (6-0-0).

MOTION        Mr. Bressler moved, Dr. Muller seconded to cast the Association’s ballots in favor of the by-law amendments. The motion passed unanimously (6-0-0). 

-A new e-mail address,  ECAmanagement@elizabethcondo.com will be used at the front desk for communicating with residents regarding package deliveries, work orders, etc.

-Management has held multiple meetings with the vice president of Complete Building Services.  CBS has agreed to replace some valves up to the value of the current contract, which is about $3000/month. This would cover the cost of ten (10) valves.  The contract terminates June 30.

MOTION        Dr. Muller moved, Ms. Barth seconded to approve the proposal for the current carrier, with a cost not to exceed $117,487, with the understanding that management will ensure that it is their final offer, and that there are limits and liability for water and sewage backup. The motion passed unanimously (6-0-0).

MOTION        Ms. Kielty moved, Ms. Barth seconded to accept and approve the addendum to the website management contract, which attaches the framework of the web hosting service to the management contract. The motion passed unanimously (6-0-0).

Committee Reports:

Landscape: The committee reported that a number of plants have been moved , and summer annuals will be planted at the east terrace. Any feedback from residents is welcome.

By-law Committee: Ms. Kielty stated that there are two by-law amendments to be voted on at the next annual meeting on Wednesday.  

Adjournment:

The Vice President adjourned the meeting at 10:30 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.

Respectfully submitted,

Ilo-Mai Harding, Board Secretary

Summary Highlights of 2012 ECA Annual Meeting

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

Absent: Seth Levine

Quorum Report: The meeting began after it was determined that we had 53% of the Association membership represented either by in-person registration or proxy receipt.

Election Inspectors: Linda Kontnier & Jim Vuko

Bylaw Amendments: after Jason Fisher reviewed the bylaw amendments, both amendments were tabled for 180 days in an effort to reach a larger percentage of the Association. While the bylaw amendment pertaining to the requirement of unit owners to have individual condo insurance needs only 51 percent of the Association to pass (mandated by a recent Montgomery County Condo Law), the bylaw addressing the ECA requirement to have 75 percent of the membership approval on all bylaw changes had no possibility of passing with only 53% of the membership participating.

Election of New Board Members:

2 year terms: Ted Ariev,
 John McNerney, David Robinson,
 Steven Shattman,
 and Herman Stekler
 (1 year term). The newly elected board members, except for Steven Shattman who was absent from the meeting, went into to an executive session with legal counsel Jason Fisher after the annual meeting concluded the public portion of its agenda.

New Business: One disturbing item of information announced is that in 2012 the rental percentage in the Elizabeth has jumped from 21 percent to 29 percent. A rising rate of rented units has implications for selling and financing units as well as affecting the quality of life for residents.

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.