Jana Bowcut
...............ECA Recording Secretary, On the Record
On
January 22, 2013, 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 7:37 p.m.
Approval of Meeting Minutes:
MOTION Mr. Schattman moved, Dr. Robinson
seconded that the amended minutes of the meeting of the Board of Directors on January
22, 2013 be approved. The motion passed unanimously
(6-0-0).
President’s
Report:
Mr. Ariev reported that the fire protection agreement was
signed by the Board secretary and Mr. Ariev, and has been sent back to the
County for the Fire Marshall’s signature.
In this Board meeting, approval will be sought for the first
of six upcoming renovation packages in progress, which is approval of the
replacement of roof ventilators and cleaning of main exhaust ducts. Two
additional packages are due in the next week, the chillers and pumps, and then
the remaining three will be due over the next six weeks. A pre-bid meeting will
be held for the roof anchor system on March 5, and then bids will be accepted
on March 19.
The Board is working on the best way to convey work progress
to residents. A status report chart will be displayed on an easel in the lobby.
The Board encourages residents to provide feedback regarding the amount of
information being provided. All projects are to be done over the next 10 years,
with the active ones highlighted on the chart.
The candidate search continues in light of the Annual
Meeting to be held on May 1. In mid-March management will send out a statement seeking
candidates for 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 January, the Association had $3,008,000 in cash and
investments, a decrease of $92,000 from the prior month.
The Replacement Reserve Fund at the end of January was
$2,635,000, an increase of $29,000 from the prior month.
Expenditures from the Reserve Fund in January totaled
$97,000. The amount expended from that Fund so far this fiscal year is
$219,000.
Delinquencies through the end of January were $63,000, an
increase of $7,000 from the prior month. Five accounts are in collection,
including one that is in bankruptcy.
Copies of the Balance Sheet and Statement of Income and
Expenses as of 31 January will be available at the front desk.
Management has prepared a draft operating budget for fiscal
year 2014, which begins on 1 July this year. The finance committee is reviewing
it, and is making adjustments as it deems necessary. There will be a board work
session on that draft budget on 12 March. All owners and residents of the
Elizabeth are invited to attend.
As the operating budget is finalized, the finance committee,
with management assistance, will finish preparing the capital budget for next
year. That details the projected expenditure from the Reserve Fund for Fiscal
2014.
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 survey will be distributed to all owners to determine the
level of interest in participating in financing part of the cost of this
program, with the goal of reducing overall interest costs. Copies of that
survey are available at the management office.
Respectfully submitted:
John C. McNerney
Treasurer
Special
Report: Dr. Robinson introduced Ken Kosteva, from Wiss, Janney,
Elstner Associates to discuss exterior remedial work including sliding door and
window replacement.
Mr. Kosteva stated that there are three remediation projects
proposed on the building envelope:
1) Roof
anchor installation: these anchors would allow workers to safely access the
outside of the building for window washing and repairs. The anchors are made of
stainless steel and installed into the structural slab. This work has been
communicated to 4 prospective bidders. Installation will be about a three month
process.
2) Balcony
slabs remediation: This work is to correct negatively-sloped balconies, and to
extend the life span of existing concrete. A urethane pedestrian grade membrane
will be installed on top of the concrete. This is typically fairly invasive
work in since it involves scouring the concrete. This was completed last week
in Unit 1812. This work should start in late 2013 and into 2014. This will be
done in unison with the window and door replacement program since the new concrete
work interfaces with the threshold of the balcony doors.
3) Window
and door replacement: the building’s doors and windows are original, meaning
they are about 40 years old. Some windows have leaks and internal seals have
deteriorated. All windows and doors will be replaced with modern, thermally-improved
systems and complete rough
opening detailing to address air and
water intrusion and condensation on interior surfaces. This work will begin in
late 2013 and will proceed through 2014-15.
The floor was then opened for questions:
-How long will each
unit be affected? This is dependent on the number of windows and doors of
each unit.
-How
will this effect interior design modifications?
This not yet known. There will be an increase in the glazing area, which will
change the appearance in the unit, and there will be drywall work needed.
Wallpaper will need to be cut back, and then hopefully the finishes can be done
to that point. Mr. Stekler requested that options other than floor to ceiling
windows are included in the projections.
-Will
the windows be larger or smaller? This has not yet been answered.
-Will
this be done by floor/tier? This is unknown until a contractor is
selected. The most economical way is typically working vertically, by tiers.
-Will
the windows be replaced from the exterior or interior or both? Both--This
is why the roof anchors are needed in order to have exterior access.
-Will
everyone who has a balcony have the repair to the membrane? Yes—the
hope is that the membrane will extend the life of the balcony. Every balcony
will be inspected for needed repairs.
-How
will weather conditions affect the work? Replacement can occur
in only good to moderately inclement weather. Contractors will only remove windows
on days when they can put something back in.
-Will
the glaze be heavier than what is there now? No--the double pane
glass weighs less than brick.
-How
many windows are in the building? Around 800.
-There
is a metal panel under the windows—what will go there? This
is not yet known.
-Will
scaffolding be up the whole time? Yes—in discrete locations over a 12
month period.
-Is there insurance
protection for damage done in units? The Condominium Association has bonding
from an insurance company and will have a certificate of insurance.
-What are the costs
of the three projects? Mr. Ariev stated that these will be posted on the
board in the lobby after the meeting.
-Is
asbestos abatement included in the costs? Yes- Asbestos is
incredibly well understood and provisions are explicitly outlined by the EPA. Affected
areas will be sealed off completely from the units.
-Will
balcony ceiling repairs be part of the project?
Yes.
-Have
there been noticeable improvements in Unit 1812 after the work was completed?
It is difficult to tell since the work was done only within the last week.
-How
high is the lip for the balcony door? When the concrete repairs are made,
the threshold may need to be adjusted slightly. It will be made shorter if
possible.
-Can
residents select the type of finish/color they would like on the inside of the
windows and doors, even if they have to pay extra?
No. From a construction standpoint it is not practical to have each owner
select colors.
-Hardware
will of course need to be removed for the work—will it then be replaced? Any
existing treatments will be removed as part of the project, but the contractor
will not take on that liability. An independent party hired by the Board will
be needed. This cost is accounted for as part of the interior dry wall repairs.
-How
does this relate to the timing of the McQuay units? Mr.
Ariev stated that if any resident requires a new unit now, Mr. Santos has the
manufacturer and model number for a new unit. He can recommend contractors to
get a competitive price. There is not currently a group rate.
Management
Report:
Mr. Craig reported that Associa underwent another software
conversion to handle accounting. There is a new electronic bill pay system that
will be on line in the next couple of months.
Mr. Santos reported on the following:
a) In
reference to the grievance recorded with the Public Service Commission
regarding Washington Gas, a new meter was replaced with Mendoza supervising the
testing process. Mr. Santos is now working on the administrative piece about the
billing of gas consumption.
b) The
report from Sandler Occupational Medicine Assoc. (SOMA) was received and no
adverse conditions affect the habitability of unit 1812.
c) The
audit report will be coming to board members in the next week.
d) Once
the weather improves, carpet replacement in the arcade can begin. The work will
be done in the evening hours so as not to affect businesses.
e) The
package tracking system has been upgraded, which emails residents automatically
when their package is scanned into the database.
f) The
elevator work on the west side has been completed, but the inspection will not
occur until next week. The east elevator will be out of commission starting
tomorrow and there may be work noise on Thursday, Friday, Monday and Tuesday.
Ms. Powell has sent out a memo to advise residents.
Committee
Reports:
Storage
Issues: Jim Jones reported that he has surveyed the storage areas
in the Elizabeth, which are very disorganized. There are items that belong to
people who no longer live in the building or are deceased, and some items are
there in violation of the house rules. A recommendation has been made to
management for addressing this.
Social Committee: The Food Fest held on Feb.
17th was a success. The committee appreciated everyone who
contributed dishes and attended.
Making
a Difference: The new committee chair is Marge McNerney. On March 12 a
professional clothing drive will be held with donations going to A Wider Circle.
Donation tables will be set up in both elevator lobbies. Interfaith Works will
pick up household items, and any breakable items should be wrapped carefully in
newspapers. Residents should consider donating items in storage.
New
Business:
Architectural
Control Committee: Mr. Robinson stated that the committee
has reviewed the condition and usefulness of the east and west canopies. The
costs of repairing versus demolishing each of the canopies were estimated: West
resident garage entrance canopy: $12,000 to repair and $10,000 to demolish;
East Arcade entrance canopy: $12,000 to repair and $8,000 to demolish.
The
committee recommended that the west canopy be demolished and the east canopy be
repaired. The issue was opened up to the floor for discussion.
Mr.
Schattman asked for clarification on the east side, given that there are two
canopies. Dr. Robinson stated this concerns only the canopy that covers the
stairwells and leads into the arcade. A resident voiced that there is no need
for a canopy on the west side. Another resident noted that the canopy on the
east side directs attention into the arcade, rather than the trash area.
Board
members opinions were as follows:
-Mr.
Stekler: tear both canopies down.
-Mr.
Schattman: tear both down.
-Mr.
McNerney: the west canopy should be demolished, but the east needs repairing as
it does serve a useful purpose.
-Mr.
Ariev: Did not feel strongly on the west canopy, but does think the east one
should be fixed.
-Ms.
Harding: Repair the east and tear down the west.
Mr.Ariev noted that the consensus of the Board was that the
west canopy be demolished and that the east canopy be repaired, which should
also include the removal of the skylight.
Mr. Santos will pursue the canopy work.
MOTION Mr. McNerney moved, Mr. Schattman seconded
to authorize management, on behalf of the Elizabeth Condominium Association,
Inc., to exercise Paragraph 14 of the landlord-tenant agreement (monthly rent
adjustment) with the resident of the Association-owned condominium #10. Rent to
be increased by 3% to a monthly amount of $1,442.00 effective May 1, 2013. The motion passed unanimously (6-0-0).
MOTION Dr. Robinson moved, Mr. McNerney
seconded to authorize PowerServices, Inc. to install customized electrical
panel replacing original which controls some exterior lighting and Arcade
commercial walkway for $6,500.00. The work will take about 10 business days.
The motion passed unanimously (6-0-0).
MOTION Mr. Schattman moved, Mr. McNerney
seconded to authorize Noyes Air Conditioning, Inc. to replace all original
roof-mounted ventilators for the kitchens, bathrooms and dryer exhausts. This
project includes the cleaning of the main exhaust ducts for a total cost of
$143,447.00.
This bid was distributed to multiple vendors. Although this
was not the low bid, management felt that the lowest bidder could not
adequately answer all questions and had not visited the site. A resident
inquired if this expense was included in the budget. Mr. Santos stated that it
was included in the long term maintenance repair program, with a projected
expense of $159,000. From the time the contract is ratified, the work will
start in about 60 days (but design work and procurement will be in progress), then
it will take about 160 consecutive working days. The motion passed unanimously
(6-0-0).
Mr. McNerney stated that the Board is considering
alternative ways of borrowing money to avoid some of the 3.9% investment rates
imposed by banks. One possibility was to offer residents lower condo fee rates
if they prepay a year in advance. However, this contravenes the bylaws .
Another possibility would be for residents to voluntarily lend money to
association at 3% interest, which is lower than what ECA would pay to a bank
and is a better return than what residents could get from CDs. A survey
regarding this issue will be mailed out with the call for candidates notice.
Mr. Schattman asked if the attorney has been consulted about this plan. Mr.
McNerney explained that it had, and he confirmed that the second option was
possible.
MOTION Mr. Schattman moved,
Ms. Harding seconded to authorize management to add a “lending survey”,
authored by Treasurer McNerney, as an additional document to the general “call
for candidates/annual meeting notice” mass mailing to all owners. The motion
passed unanimously (6-0-0).
Mr. Santos asked board members to review and comment on the
calendar tool included in their Management Reports by the next meeting.
Mr. Schattman raised concern about the possibility of
installing floor to ceiling windows and felt that the board should provide Wiss,
Janney with direction. He expressed concern about the costs associated with
them and the costs that residents will bear in having to change window
treatments and repairs. Mr. Ariev stated that the engineer was hired to look at
all the options available and present back to the board. He stressed that the
Board should wait until the options are presented. Mr. Stekler stated that he
is concerned that the engineer is predisposed to floor to ceiling windows, and
that they should adhere to the instructions to replace windows, not enhance.
Ms. Harding stated that anything that is put it will be an enhancement, and
there was nothing in his report that discussed floor to ceiling windows. Mr.
McNerney stated that the board should wait until the full range of options is
presented.
Resident
Comments:
-David Harrison, attorney for the beauty shop in the arcade,
expressed concern about the parking issue for the shop’s customers. Mr. Ariev
stated that this issue should be addressed by the Board and asked him to stay
to meet with the Board in executive session.
-Karren Alenier, Unit 301, requested a building-wide notice
about taking incorrectly placed mail to the front desk instead of leaving it on
the mailbox ledge by the trash.
-Dr. Ruby Tang, Unit 06, last month raised issues about her
balcony, water leaking, A/C drain water in her living room and furniture damaged
by staff, was concerned that only one of her issues is being addressed. Mr.
Santos stated that he has been responding to the issues and he is taking care
of them as quickly as he can.
-Pam Dillon, Unit 718 asked about why the utilities are
already over budget after seven months. Mr. Santos stated that management is analyzing
the electrical and water costs as part of the budget process. He suggested some
over-budget variance is due to the cooling tower and chillers are now on a
year-round operation; FY2013 budget was completed before that operational
decision. Ms. Dillon also expressed concern about the increase in condo fees.
Mr. McNerney stated that according to the ten-year plan, there is a 3% increase
laid out for the next eight years. The July 1 increase still needs to be voted
on.
-Jim Jones, Unit 307 said that he is unable to pay
condominium fees online without having to pay a convenience fee. Mr. Roby
stated that now that the Association has switched to Union Bank, there is a fee
to transfer your money to the association. Residents can still pay by check or
sign up for direct debit to avoid the fee.
-Lynn Thayer, Unit 1512, who is on the architectural
committee, has spoken with Wiss, Janney and that they are promoting floor to
ceiling windows. They do know that the Association wants options. Ms. Thayer
stated that the presentation today was very different than what has been
presented before.
Adjournment:
The President adjourned the meeting at 10:15 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
March 19, 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
