Budget Workshop (March 19, 2015)
I attended the workshop
meeting that included:
Board members: Steven Schattman, Sharon Bobb, Jim Jones, John McNerney, Alfred
Muller, Jim Vuko. (Patricia Batey was absent.)
Others
Present: ECA General Manager Terry Lee, Legum & Norman Regional Manager James Santos, and various members of the ECA
Budget Committee.
Given that we are currently
using our line of credit to fund the replacement of window and balcony doors
and that the work was slowed considerably by adverse weather, the ECA is doing
pretty well with the budget. Therefore, ECA did not borrow as much money as was
originally planned for. In fact ECA borrowed over $1 million less than
originally planned. The expected debt payoff is anticipated to be in 2019.
One issue that was brought
up of critical concern is the increasing number of pinhole leaks throughout the building. This means that as our
copper pipes age, they are springing leaks which are causing damage in
individual apartment units and in common areas throughout the Elizabeth.
Can something be done about
these pinholes leaks? Yes, pipes can be sealed to prevent future leaks.
Recently this was done at the Carlton with success and is currently being
tested at the Sommerset. Both buildings are much younger than the Elizabeth.
Is this procedure in our
budget and what does it cost? Yes, $1.7 million is our projected budget for
this project, but not until the Fiscal Year of 2021. Should we wait 5 years to
fix this problem? How many more apartments will be damaged by pinhole leaks by
FY 2021?
Given that problems with
pinholes leaks in the ECA are increasing and we are poised to refurbish our
hallways with new carpets, we are looking at the alarming possibility of
additional remedial repairs that go well beyond the cost of stopping our pipes
from leaking.
If you attended the February
Board meeting, you probably know that approximately $200,000 in claims against our master insurance policy
were made in 2014, primarily due to sewage backup. As a result the master
insurance deductible is estimated to double from $5,000 to $10,000 for sewage
backups and the cost for insurance will go up for the next five years. This
does not take into account a unit owner’s out-of-pocket costs for pinhole
leaks, or additional claims against the unit owner’s household insurance policy
should he or she be unlucky enough to suffer such a problem.
The Upcoming ECA Board Meeting (March 24, 2015)
On the agenda now posted in
our elevators is renewal of the Legum
& Norman contract which has been going month to month since July. The
contract involves a considerable amount of money.
Has the ECA Board conducted
a performance evaluation of Legum & Norman? I do not know of one and think
this is overdue. Yes, in the years they have worked for us some very good
things have been accomplished.
Personally I would like to
encourage that we go out for competitive bids to see what other companies can
offer us. Given the concern about budgets and watching our money, I think it is
imperative that we get our financial
data on time for monthly board meetings. Consistently Legum & Norman
has been unable to do this.
Those who live on the West
side, have you heard the water pump
noise in the elevator lobby? It has been going on for over a year without
L&N finding a viable solution to the problem. It was caused by the
installation of a new water pump in November 2013. Unfixed machine room noise
heard in a lobby diminishes our property values.
These are just two areas of
concern but, having spoken to a number of owners, these L&N management issues
are not the only ones.
This sitting Board meets
only one more time before the Annual Meeting on May 6. The decision for
management of the Elizabeth should be addressed by the new board. This is a
logical and expected strategy to ensure we have the best management solution by
the board that will have to enact it.
If you feel strongly about
this issue, write to the ECA Board now and ask that a Request for Proposal be
written so that we can compare what management companies can offer us.
President Steven Schattman: sschattman@verizon.net
Vice-President Sharon Bobb: sbobb.sb@verizon.net
Treasurer John McNerney: strachasher@verizon.net
Secretary Jim Vuko: jvuko@conference.com
At-Large:
Patricia Batey: pat.batey512@gmail.com
Jim Jones: jonesjcz@gmail.com
Alfred Muller: g2mdal@aol.com