THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting January 22, 2013
Board Present:
Ted Ariev President
David Robinson..............Vice-President
Herman Stekler ............. Asst. Treasurer..................
Ilo-Mai Harding...............Secretary
Steven Schattman ............DirectorBoard Absent:
Charles Bressler Director
Others Present:
Robert Craig .......... Regional Director, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman
Jana Bowcut ...............ECA Recording Secretary, On the Record
On November 27, 2012, in accordance with
Section 11.109.1 of the Maryland Condominium Act, the Board met in executive
session to conduct personnel and legal issues.
Call
to Order: Mr. Ariev called the meeting to order at
7:38 p.m.
Approval
of Meeting Minutes:
MOTION Dr. Robinson moved,
Ms. Harding seconded that the amended minutes of the meeting of the board of
directors on November 27, 2012 be approved.
The motion passed unanimously (6-0-0).
President’s Report:
Mr. Ariev noted
that on December 4, 2012, the Board approved by unanimous email assent, a
proposal from Sandler Occupational Medicine Associates, inc. (SOMA), dated
December 3, 2012, to provide potential mold contamination evaluation of the
bedroom and living room in Unit 1812 for a total cost not to exceed $4,380.
Mr. Ariev
thanked the social committee and management for a successful holiday party. An
informal gathering of about 25-30 residents was also held to watch the
inauguration ceremonies.
On January 8,
the Board held a workshop to discuss various issues. On January 13, residents
met in the party room for an informal forum to discuss issues raised by
residents. The issue of smoking was raised during the workshop, which will be
discussed later in this meeting.
Mr. Ariev
provided an update of the Maintenance, Repair and Replacement Program. So far,
design contracts have been awarded worth about $5-6 million. Over the next 2
months, construction contracts will be awarded worth about $1.5 million, which
are mostly for mechanical issues. Wiss, Janney & Elstner is moving forward with work on the windows, doors
and anchoring systems; the work will move quickly over the next 3-4 months, and
bids to do the work will be put out in June/July this year. The last
outstanding issue in the FY 2013 report is garage repairs. Structural
preservation work is needed and more details will be given at the next meeting.
The Board is still working on a general reporting system for reporting the
status of the work on a continual basis, with regard to schedule and budget. Schedules
and status reports will be posted on boards and placed in the lobbies.
The annual
meeting and elections will be held on May 1. The Board will be talking with
residents to solicit interest about acting as election officials and positions
on the Board.
Treasurer’s Report: The following report was provided by Mr.
McNerney:
The amounts
included herein are rounded to the nearest $1,000.
As of 31
December, the Association had $3,101,000 in cash and investments, an increase
of $87,000 from the prior month.
The Replacement
Reserve Fund at the end of December was $2,607,000, an increase of $91,000 from
the prior month.
Expenditures
from the Reserve Fund in December totaled $35,000. The amount expended from
that Fund so far this fiscal year is $122,000.
Delinquencies
through the end of December were $56,000, an increase of $3,000 from the prior
month. Seven accounts are in collection, including two that are in bankruptcy.
Copies of the
Balance Sheet and Statement of Income and Expenses as of 31 December will be available
at the front desk.
A finance
committee has been formed, consisting of myself as chairman, with Joe Salcetti
and Peg Downey as members. We begin preparation of the operating and capital
budgets next month, to be presented for a vote of the Board at the April
meeting.
The Association
will begin bank borrowing this summer to pay for the Maintenance, Repair and
replacement Program. Interest on the loan will be at an approximate 4% interest
rate.
A supplemental
approach to financing could involve financing by owners of the Association,
either in the form of pre-paying condominium fees at a lower amount, or by
direct loans to the Association at a fixed interest rate. A survey will be
distributed to all owners to determine the level of interest in either of these
programs.
Management Report:
Mr. Craig noted
that in regard to the December financials, there were additional incurred
expenses due to Hurricane Sandy repairs, gas accrual was inflated for 46 days
and the elevator maintenance contract renewal.
Mr. Santos
reported that current work order delinquency totals $1,409.00 of which $870.50
is at or greater than 60 days. He also stated the Board contracted the services
of a certified industrial hygienist from Sandler Occupational Medicine
Association (SOMA) to investigate air quality in a condominium unit. Lab
results are pending.
Old Business:
MOTION Mr. Ariev
moved, Dr. Robinson seconded to remove from the table a motion from November
27, 2012 to permit ASAM to install a directional sign on common wall area in
the first floor elevator lobby of the east tower to direct visitors to their
unit. The motion passed unanimously (6-0-0).
MOTION Mr. Ariev moved, Dr. Robinson seconded
that ASAM be permitted to provide at their own expense, a directional sign on
the corridor wall of the Trash Room in the elevator lobby of the first floor in
the east tower. The sign is to be of brass finish, similar in size to the signs
presently in the corridor, approximately 14 ¾ inches by 9 ½ inches, with
lettering approximately one inch in height. The motion passed unanimously
(6-0-0).
Mr. McNerney
noted that $100,000 from the operating fund was moved into a short-term CD, to
mature 4/8/13 in order to not exceed the $250,000 FDIC insured amount.
New Business:
MOTION Ms. Harding moved, Mr. Schattman seconded
to authorize Wiss Janney and Elstner to address water abatement issues in unit
1812, not to exceed $7,500. The motion passed unanimously (6-0-0).
MOTION Mr. Ariev moved, Ms. Harding seconded to
authorize LLCTA Professional Restorations to remove and replace commercial
grade carpet in the Arcade at a cost of $3,098.03 plus applicable tax. Mr.
Santos stated that the work will be done after 5 p.m. so it does not interfere
with the business of commercial owners. The motion passed unanimously (6-0-0).
MOTION Mr. Ariev moved, Ms. Harding seconded to authorize
Safe Net Securing Inc. to provide telephone system upgrades at a cost of $1,920
and a 1-year service agreement. Mr.
Santos stated that the current system is at least 5 years old and needs
software updates. The motion passed unanimously (6-0-0).
Mr. Ariev stated
that the issue of smoking has been discussed among board members. In September
of 2012 the Board consulted its attorney, who advised that smoking can be prohibited
in house rules. Dr. Muller prepared an e-mail to the Board citing the risks of
second hand smoke and that it should be considered noxious. Dr. Muller further
suggested that the Board can decide to change house laws, and could implement a
house rule to prohibit smoking on the balconies. Mr. Ariev also shared the
response from the attorney, who stated that no court has upheld the concept
about the risk free level of second hand smoke. No action that the Board takes
can go without legal challenge. Smoking is best addressed by by-laws and any
rule is subject to challenge and would not prevail in court. Mr. Ariev also
inquired about the issue of writing prohibitions into leases to prohibit
renters from smoking. The Association does not have the authority to impose
different smoking laws for renters vs. tenants. Mr. Ariev then invited
residents to comment on the smoking issue.
Dr. Muller
further explained that second hand smoke is dangerous and the spread cannot be
controlled. He noted that the by-laws state “no noxious or offensive activity
should be carried on in any unit”, which applies to smoking.
Another resident
stated that she often has cigarette smoke coming into her apartment and
balcony, which causes discomfort and potential illness. She added that people
smoke in areas near the building, such as the alcove near the restaurant, and
smoke comes into the swimming pool area. The Board should consider having signs
posted.
MOTION Mr. Ariev moved, Ms. Harding seconded to
amend the house rules to prohibit smoking on the unit balconies, which are
considered limited common elements with restricted use. The motion did not pass
with all board members voting against the motion, except for Ms. Harding
(1-5-0). The Board will receive further comments from the residents for a
period of 30 days.
Committee Reports:
Social Committee: The
committee thanked Rita Miller for her help with the inauguration party. A Super
Bowl party is being planned. A Food Fest is being planned where residents will
bring dishes representing their country of origin or a favorite family dish. A
committee meeting will be held in February.
Resident Comments:
-Resident Mr. Shayegan,
Unit 1815, expressed concern about the red hair salon sign. He also expressed
frustration with the frequent elevator closings. He also asked when the air
handler that was shut down will be fixed. Mr. Ariev responded that the Board is
working on having the red sign removed. Mr. Santos stated that he regrets the
inconvenience of the elevator work, but it has to be done and he cannot improve
the out-of-service time frame. The hoist motors of the passenger cars are being
replaced, and the cars have to be out of commission for 30 days. After one car
on the east side is done, then we will move to the west side for one car. The
plan is to then move back to the East in March. Mr. Santos stated that one
exhaust fan on the roof was shut down because the bearings were bad and it has
been replaced. The other exhaust fans on
the roof are being replaced over the next 7-8 months.
-Resident Dr.
Tang, Unit 06, complained about water coming into her apartment. She has sent
emails and letters to the board. She also stated that when workmen came into
her unit to make repairs, they broke a small console table. She reported it to management,
but did not hear back. She stated that water comes up through a drain into her
living room every year. Mr. Santos stated that he would discuss these issues
with her.
-Ms. Franz, Unit
1007 stated that despite the Board’s efforts to be more clear and informative,
she had a number of questions about what had been discussed in this meeting.
Mr. Ariev encouraged her to speak to Mr. Santos about management items and to
email himself about other questions.
Adjournment:
The President
adjourned the meeting at 8:57 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 next meeting will be held on February 26, 2013.
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
