ECA Management Report Presented at the May 24, 2016 Board Meeting

What follows is the Management Report from our General Manager to the Board of Directors. Because there were so many things accomplished, I think it is better to see this report as presented at the May 24, 2016 meeting.

MEMORANDUM

TO:            Board of Directors

FROM:       Stephanie Deoudes, General Manager

RE:             Management Report

DATE:       May 19, 2016

----------------------------------------------------------------------------------------------------

Major Systems:

·      Both boilers are tuned and are now operating well;

·      

    The Cooling Tower is on – maintenance is needed and will be done in the next few weeks;

·      

    Roof exhaust fans (that serve kitchens and bathrooms) have been checked and maintenance performed;

·      

    Roof dryer vents will be checked and maintained, next week.

Plumbing Back-ups:

·      In an effort to prevent building plumbing back-ups 4 building drain lines have been cleared at the lowest level, to the street main;  Additional tiers will follow to ensure that the building lines are clear. 

Restoration of Water Damaged Units Continues.

·      Several more units have been restored – only about 4 remain.

Bi-Annual Filter Change will start soon:

·      Service will include check of AC and heat system drain lines, faucets, commodes, smoke detectors.  Notice to all will be issued next week.  

Phase 2 of Fire System Upgrade:

·      Garage upgrades have been completed;

·      

    Core drilling to bring a line to all floors will be run next week;

·      

    Work in hallways will follow with addition of “horns” and lowering of pull stations per fire code and ADA code;

·      

     Repairs of wallpaper and paint of these areas will be done as the work is completed, floor by floor.

Elevator Code Upgrades have been completed.

·      Otis Elevator Company has notified the Inspectors Office that code

violations have been cured and has requested re-inspection.  Certificates will be issued once that inspection has been done.

Fitness Center & Pool:

·      Fitness Equipment was serviced/repaired;

·      

     A new water Cooler for the Pool was installed;

·      

     Thermostat and pneumatic valves have been ordered for the pool.

Guest Parking:

·      A new Entry Device is installed

Arcade: 

·      Painting has begun in the Arcade

Lobby Marble and Brass Maintenance:

·      Will begin next week

Landscaping:

·      Front of building clean-up of planters and flowers was done;

·      

    New flowers were installed, planter bed soil was elevated;

·      

    Existing plants were rearranged to fill in places that were bare;

·      

     Some plants in the circle and hedges at the trash loading dock planter did not make it over the winter.  The hedges were replaced.

Building Interior Doors:

Some doors have been repaired, more are scheduled for repair.  After so many years of use, these heavy doors need adjustment.  Some have been repaired many times and new hinges and placement is needed as the existing has worn openings too large for the doors to hang flush, others need hardware and adjustment.  Please know we are working on this – it sometimes takes several tries.

Contracts and Services:

I have spent a lot of time this month going over your contracts, reviewing services stated in those contracts and noting the quality of service actually provided.  My review revealed services not needed, services not provided or not up to standard, duplicate services by several contractors.  Changes have taken place.  There are no more duplicate services or service providers.  You have excellent contractors providing necessary service. This change will result in accountability, tracking and reporting of services performed and proper maintenance, inspections and certifications done in a timely manner.

Staff News:

Barry Blanton, Chief Engineer, is now living on-site.                             

Martin, Serrano, Assistant Engineer, will begin work Monday, May 23^rd and will soon be living on-site, as well.

Terrace Clean-up and Lighting Restoration:

·      After many years with no lighting, the failed electrical feeds to the terrace at the Party Room and West Lobby have been repaired. They are now ready for you and your families and guests to enjoy. 

·      Weather permitting, we will enjoy wine and cheese on the West Terrace 

prior to the May 24^th Board Meeting.

Summary of the ECA Board Meeting April 26, 2016

Board Present: Sharon Bobb, Patricia Batey, Peg Downey, Jim Jones,

Board Absent: Clifford Cohen, John McNerney, Steven Schattman

Others Present: ECA General Manager Stephanie Deoudes, Gates Hudson Vice President of Operations Larry Hirschman, Gates Hudson CFO Carty Massey, ECA Legal Counsel Jeremy Tucker, Goldklang Group Jeremy W. Powell, CPA

Here are highlights of this board meeting:

—Our new chief engineer Barry Blanton was introduced. He has moved into the Elizabeth as this job requires.

—Gates Hudson representatives Larry Hirschman and Carty Massey reported that they are 99% completed with the financial and transition activities related to the ECA moving from the former management company to Gates Hudson.

—The Goldklang Group auditor Jeremy Powell presented their Transition Audit findings and recommendations, as reported in their April 19, 2016, letter to the Board, which was mailed through the US Postal Service to all owners. The appearance of the auditor was an opportunity to fully understand what was said about the ECA budget, operating/contingency fund, and reserve fund as well as to ask questions about the Goldklang recommendations. The ECA Board has already enacted some of the Auditor’s recommendations,by drawing down on the $2.8 million left in the line of credit, replenishing the Reserves with $2.3 million, and establishing an Operating Contingency Fund in the amount of $500,000. This important letter can be found on BuildingLink or contact ECA General Manager Stephanie Deoudes for further assistance.

—Resolution of the nearly $500,000 Washington Gas outstanding liability. The Association had an outstanding liability/payment due to Washington Gase in the amount of approximately $250,000, going back to 2012. Intially, a contested invoice of $101,930.73, it had grown over the years to almost $500,000 because of the addtitionof intererest, penalties, and a security deposit of $165,000. Thanks to Gates Hudson, the interest and penalties have been successfully waived, and the waiver of the security deposit is in process and expected to be waived as well.. The final amount due will be approximately $102,000.   The efforts of Gates Hudson on our behalf have saved the Association approximately $400,000. A full report of this situation is in the BuildingLink Library, under the “Washington Gas” title, or contact our General Manager, Stephanie Deoudes for a copy.

—Insurance coverage for the Association has been resolved with the joint efforts of our insurance broker Robin Manougian and Goldklang auditor Jeremy Powell. Cost of our insurance will go down once we complete maintenance and repair work on the building’s water pipes.

—The upcoming annual election May 4 is critical to the overall well being of ECA resources and your property value. Please attend the meeting in the West Lobby (registration is at 7 pm) or submit your proxy. Also be sure to encourage your neighbors to do the same. Each year the annual meeting is dependent on getting 51% participation with in-person attendance or submitted proxies.

Summary of the ECA Board Meeting March 22, 2016

Board Present: Sharon Bobb, Patricia Batey, Clifford Cohen, Peg Downey, Jim Jones, John McNerney, Steven Schattman

Others Present: ECA General Manager Stephanie Deoudes, Gates Hudson Vice President of Operations Larry Hirschman, ECA Legal Counsel Jeremy Tucker

Here are highlights of this board meeting:

President’s Report:

—Rebuilding the Reserve Fund is a top priority.

—Due to increasing professional business duties, Julie Kantor stepped off the Budget & Finance Committee. Connie Row has been appointed to complete Ms. Kantor’s term. Ms. Row has extensive executive experience including budgeting, contracting, and strategic planning.

Comments from the floor:

Several residents questioned why action related to the Reserve Fund was done in Executive Session versus in the public monthly ECA Board meeting. Legal counsel Jeremy Tucker said the action involved some legal matters that needed to be handled in Executive Session.

A question arose about the protocol for handling an emergency situation like the lack of hot water experience more than a week ago. Our new GM said the protocol that she gave the Concierge staff when she arrived was that she should be called regarding any questions that they have or any problem in the building at any time of day or night.  Most of the Concierge staff follow that protocol and they call her regularly.  But, this is a new protocol and this past weekend, the Concierge apparently did not understand what to do.  The GM explained that these are good people, this is a transition period, and she will continue to work with them and bring them along.

The GM also said that we have hired a chief engineer who will begin work April 11, 2016. He holds a Class 1 Stationary Engineer’s License in the state of Maryland and will also live in the building.

Committee Reports:

FINANCE

The Budget & Finance Committee is waiting for the Audit Report.

DESIGN

Sample carpet and other design elements for hallway renovation can be seen in the ECA management office.

LANDSCAPE

Budgetary needs were outlined for various landscape improvements for the front circle and other areas of the ECA property. The first priority is to fix the front of the building.

CONVERSATIONS WITH THE BOARD

After a long hiatus, conversations with the Board resumed last weekend. The next meeting will be held on the third Sunday of the month.

SMOKING

The committee prepared a comprehensive report with recommendation for how the Board might proceed. The Board President and Legal Counsel Jeremy Tucker praised the report for its thoroughness. The bottom line is a strong recommendation for a bylaw amendment making the entire building smoke-free. The Board thanked the committee for its work but and is taking the report under advisement. Copies of the report can be obtained from the ECA management office.

Old Business

Work by Mendoza-Ribas was approved unanimously for ultrasonic testing of the water supply lines on 18E and removal of insulation as needed

New Business

Purchase of a new phone system that serves the Management Office, Concierge, Elevators, and Boiler Room was approved unanimously.