April 17, 2018, Meet the Candidates Event

Stephanie Olshan and her committee ran a very civil program that was organized around having audience questions written on index cards. The caveat was that any question exhibiting a personal attack on any candidate would not be presented.

Each candidate was invited to give a 3-minute presentation to express what he or she would do if elected to the Board and why he or she was qualified. These opening statements were the most important things said during the evening.  See below for Candidate Statements.

As most Association members know, we have achieved a significant financial come back from near financial collapse in 2016 when the reserve fund had been spent down to approximately $1000. We had lost our FHA certification and we were under threat of losing the master insurance policy because of overwhelming water damage claims. Our former management company (Legum & Norman) was producing inaccurate financial statements and there were over $700,000 in unpaid bills and liability to Washington Gas, including a termination of service notice that had not been disclosed. Poor building maintenance put us at high risk of fire (dryer lint had not been cleaned in many years) and additional water damage from uncleaned HVAC condensate lines and other pipes. Association members who wished to sell their units were shocked to learn how their property values had declined.

A new financial approach using “Condo Best Practices” and a strategic financial plan has restored FHA certification, returned the Elizabeth to the primary insurance market and helped us show a 2017 $26,000+ gain on operations while keeping our operating expenses under budget through February 1 by $260,000. We have a general manager who saved us thousands of dollars through renegotiated contracts and other cost saving measures while still getting building maintenance accomplished. Money spent on water damage has gone from over $500,000 in 2016 to $49,000 in 2018 so far.  

Three of the candidates running currently sit on the Board which has brought about significant improvements to our financial and maintenance picture which in turn is showing an uptick in our property values. They are:

Mak Dehejia

Lyle Schwartz

Rhonda Taller

Christopher Wemple moved into the Elizabeth in 2016 and immediately began attending the monthly Board and Budget and Finance meetings, volunteering last year to help run the Meet the Candidates event.

These four candidates expressed in their opening Meet-the-Candidates statements a desire to continue moving the Association finances and maintenance programs forward into the future for the good of everyone in the Association. Each of their messages emphasized the positive and the desire to continue a spirit of cooperation. Chris Wemple particularly emphasized enhancing communications between the Board, management, and the Association members. Check out their bios in the Annual Meeting package to see their individual level of substantial professional experience.

Charles Bressler is an original Association member who has a vision of the past glory of living in The Elizabeth. He has served on various ECA Boards over the past. His Meet-the-Candidates statement emphasized his extreme displeasure with our current General Manager despite the significant work she has done to help turn around our finances. Nevertheless, he was very concerned about having enough money to fund important maintenance projects like refurbing the hallways and questioned whether the current 2% raise in the condo fee was adequate.

Steven Schattman bought into the Elizabeth in 1996. He was on the Board that voted to draw down the Reserve Fund to what became an historic low. His Meet-the-Candidates statement is remarkable for his emphasis on the word “anger.” He said that the current Board has no tolerance for opposing points of view, it exercises no transparency, and it operates in secrecy. These accusations are not true.

What must be underscored is that our financial turn-around is fragile. Who we elect to the Elizabeth Condominium Board will make a difference in whether we continue to show financial improvements, steady building maintenance, rising property values, and good quality of life here in this community. I recommend voting for: Mak Dehejia, Lyle Schwartz, Rhonda Taller, and Christopher Wemple.

If you have questions, please contact me and I will do my best to forward them to someone who can answer your concerns.

Karren Alenier #301

CANDIDATE STATEMENTS;

CHARLES BRESSLER

LADIES and GENTLEMEN,

IN ABOUT THREE WEEKS WE SHALL HAVE AN ELECTION AT THE ELIZABETH TO FILL FOUR SEATS ON THE BOARD OF DIRECTORS. NEVER BEFORE HAS YOUR PARTICIPATION BEEN SO IMPORTANT. I HOPE FOR THE GOOD OF THE BUILDING THAT THIS ELECTION WILL NOT BE TOXIC.

THE REASON I WANT JOIN THE BOARD IS THAT IT PAINS ME WHEN ;            -RESIDENTS TALK ABOUT MOVING OUT OF THE ELIZABETH BECAUSE OF THE MANAGER , TOXIC ENVIREMENT AND I UNDERSTAND.

-THE BOARD OF DIRECTORS SHOULD DIRECT THE MANAGER AND INSTRUCT HER TO BE MORE VISIBLE TO THE RESIDENTS, WALK THROUGH THE BUILDING ONCE IN A WHILE AND BE MORE RECEPTIVE TO GENUINE COMPLAINTS.

-SHE DOES NOT TELL THE TRUTH WHEN ASKED QUESTIONS AT THE BOARD MEETING SAYING THAT SHE HAS WORKED OUT AN AGREEMENT ABOUT THE REFURBISHING OF THE GARAGE.

-SHE SHOULD REPORT TO THE ENTIRE BOARD WHEN A BOARD MEMBER ABUSES HIS PRIVILEDGES AND VIOLATES  HOUSE RULES..

-THE PRICE OF OUR APARTMENTS HAVE NOT INCREASED AND ARE ON THE MARKET LONGER THAN OTHER BUILDINGS AROUND.

- REPORTED SAVINGS MADE BY MANAGER HAVE COME WITH A REDUCTION OF QUALITY IN SERVICE. BI-ANNUAL UNIT INSPECTIONS ARE REDUCED TO ONCE EVERY 18 MONTHS. THE MATERIAL  LIKE THE FILTERS ARE OF POOR QUALITY AND COULD DAMAGE THE HVAC UNIT.

-THE PRESENT BOARD AND PRIOR BOARD DESERVES SOME CREDIT FOR THE TURNAROUND BUT AT WHAT COST. WE HAVE TURNED THE CORNER BUT AFTER CONDO FEE INCREASES OF 13% IN 2017 FISCAL YEAR AND 7% IN 2018. WE STILL HAVE TO PAY THE LOAN OF  $2,4M

IN 2015 THE BOARD OVERSPENT BY CLOSE TO $900,000 AND STILL SPENT MONEY.

I HAD PREDICTED THAT WE WOULD HAVE A FINANCIAL PROBLEM WHEN I SUGGESTED AN INCREASE OF 6% IN 2014 WHEN I RAN FOR THE BOARD. UNFORTUNATELY MANY RESIDENTS THOUGHT THAT I WAS A BIG SPENDER AND DID NOT VOTE FOR ME. I AM A PRUDENT SPENDER.

I BELIEVE THE ELIZABETH SHOULD LIVE WITHIN OUR MEANS, JUST AS YOU DO IN YOUR LIVES. WE CANNOT FUND EVERY PROJECTS IMMEDIATELY. AS A MEMBER MY VOTES WOULD REFLECT THIS.

I WILL ALWAYS BE AVAILABLE TO HEAR YOUR SUGGESTIONS AND COMPLAINTS AS DID WHEN I SERVED FOR 22 YEARS ON THE BOARD AS MEMBER, VICE PRESIDENT AND PRESIDENT.

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MAK DEHEJIA

Good evening!

Thank you for this opportunity to introduce myself and to share with you some of the reasons why I am running for the Board and to ask not only for your support, but also to ask you to have your friends and neighbors support my candidacy.

I am Mak Dehejia. My wife and I own 1711L. After 2 years here I still don’t know why we have an L behind our unit number when no one else seems to call it that way

I want to tell you briefly why we purchased a unit in the Elizabeth, why I am running for the Board and what I have to offer to this condominium association.

First, Why the Elizabeth. I want you all to know that my wife and I consciously chose this place to be our final residence. We were first introduced to The Elizabeth through our interest in watercolor painting. So, I wrote to our watercolor instructor in Maine asking him to put us in touch any of his former students living in this area. He introduced us to a Barbara who lived here in the Elizabeth. She invited us over for cocktails when we met her husband Ed, an ex IBM executive. The 4 of us hit it off extremely well which resulted in our visiting their unit in The Elizabeth quite often. They had a beautiful unit in the 11 th tier. We liked it so much that my wife and I decided that an apartment in the 11^th tier had to be our final residence. Barbara & Ed’s unit came up for sale; we bid for it but lost. We were very disappointed. So, we asked our real estate agent to keep looking for a sale in the 11^th tier. When 1711 came to the market we instructed our realtor to make sure that we would get it. And we did!

So, my being in the Elizabeth is a deliberate and conscious choice, not something we inherited or found at a bargain sale.

Why do I wish to serve on the Board?

I have been fortunate in having the opportunity of serving on the Board filling an interim vacancy. During the past few months, participating in Board discussions, I have realized that my prior experience with management of condominiums and cooperatives, as well as my long experience in the academic and business world can be useful to the work of the Board here.

The kinds of issues we have encountered here – replacement of sliders and windows, leaking water pipes, problems with the management company, upgrading hallways and corridors, stretched financial condition, borrowing funds etc. – are what I have come across before and experienced how they have been addressed. As one popular ad for an insurance company points out: “WE KNOW A THING OR TWO BECAUSE WE’VE SEEN A THING OR TWO”

In addition to previous experience with condos and coops, I have found in my working life that my approach to problem solving stemming from my background in mathematics and physics – the practice of going down to first principles – has always stood me in good stead. I saw this at work very clearly, for example, when the Board was discussing the garage repair project. It was very easy for me to see right away that the biggest issue in estimating the project cost was the estimate of the square footage of the damaged area. When I raised that question with our consulting engineer, everyone recognized that the usual 10% contingency provision in the budget is not likely to be adequate enough.

Finally, may I say that my wife and I are very much looking forward to spending our final years in in this lovely community in an atmosphere of mutual trust, friendship and caring. In order for this to happen we must all work to restoring the trust between owners, management and the Board. In order for that to be possible we have to ensure that the fabric of the building is sound and pleasant. And, for that to happen we need to have a robust financial situation.

The Board that I have been privileged to serve has taken significant steps towards these goals.

I seek your support in allowing me to serve you all to further these goals in the coming years.

Thank you!

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STEVEN SCHATTMAN

Good Evening. I’m going to make this short and to the point, I don’t want to put anyone to sleep.

For those of you who don’t know me My name is Steven Schattman. My wife Robin and I bought our apartment here in the Elizabeth in the Fall of 1996 and moved in a few months later. I have been involved with the Association in one aspect or another for many years. I was on the original Finance committee, I was the long-time chairman of the Fitness Room committee and I have served on the Board of Directors both as an officer and a director. I did a year as Vice President and a Year as President.

Years ago, when I first ran for the Board I did so because I was angry. I felt the Board had its own agenda and had no interest in what anyone else had to say. Well, I’m angry again. The same situation exists today only its worse. The Board has little or no tolerance for opposing points of view. They are regularly discouraged and ridiculed, whenever possible they are simply ignored or suppressed. Transparency is almost nonexistent. The Board operates within a culture of secrecy. This began with the former President and continues with the current one. It is very obvious that there are issues being discussed and decided upon in Executive session that have absolutely no business being in that venue.  Maryland Condominium law is quite clear as to what can be done in Executive session. It is basically limited to two areas, employee issues and legal issues. Having the Attorney in the room and asking him a question does not make something a legal issue. This is unacceptable and needs to stop!

As owners and members of the Association you have a right to know what is going on. You also have a right to have your ideas, your thoughts and your concerns taken into account when decisions are being made. This is not happening and that is why I’m running for the Board.    

LYLE SCHWARTZ

Good evening everyone.  My wife and I moved to the Elizabeth two years ago. Besides location, we selected it as our home because residents seemed friendly and engaged. Our stay here has reinforced those impressions and we’ve begun many new friendships in this community. We’ve also learned of and shared the concerns about the fiscal health of our association and the appearance and safety considerations in the Elizabeth. I felt that by joining the Board of Directors, I could help address the challenges we faced.

I enjoyed a career that included 20 years in academia and an equal amount of time leading major science/engineering activities in the Federal government. I’ve been retired for 14 years and continue to serve as volunteer to several organizations. With this history, I brought experience to the Board including technical/computer skills; more than 25 years of condo living in Chicago and here in Friendship Heights; and many years of service on committees, boards and other management bodies. I’ve learned how to work with diverse views, arrive at informed group decisions and to publicly address groups, large and small, to help them understand and support those decisions.

During the last 10 months, while serving on the Board, I was privileged to play a significant role in transitioning from a near bankruptcy fiscal situation in 2016 to the current, much more hopeful environment. While my service on the Board has been brief, I think it had impact. Besides working directly on planning with my colleagues on the Board and our GM MaryAnn Hall, I’ve spoken publicly to owners to explain financial and Bylaw issues to address their very real concerns. I’m impressed by the progress we’ve made in this last year and want to complement both MaryAnn and my colleagues on the Board. 

My goal now is to follow through to implement plans for the ECA established over the last 10 months. These plans keep condo fees as low as prudent while delivering service to the residents through well managed operations, completion of necessary maintenance projects, accelerated loan repayment and increase of capital reserve funds to restore the fiscal integrity of our homes and investments. 

However, we have been so fully occupied with fiscal and capital improvement issues that other management needs haven’t gotten sufficient attention. Chief among them is communication. Better use of Building Link and restoration of a newsletter should be major goals for next year. A second focus should be clarifying our onsite management structure in a manual of procedures available to all owners.

Next year will be busy, with Board oversight required as the garage project proceeds, the staged hallway project initiates, and we address the budget for the next fiscal year. I look forward to participating in this process of making our shared home a better place to live and hope that you’ll give me the opportunity to serve by voting for me.

 
RHONDA TALLER

When my husband and I moved to the Elizabeth in 2015 we were not aware of the challenging financial situation, however like all owners we felt the pain of significant increases in condo maintenance fees over 3 years.  In 2016 we saw the value of a unit we owned drop significantly from the price paid in 2015.  That did not preclude us from purchasing a larger unit at the Elizabeth in a great neighborhood.

At the Elizabeth we are all part of a community who want the same thing as owners.  Our homes are our biggest investment and source of pride.  I want to commend my fellow board members for their hard work, as volunteers, and diligence to addressing our financial challenges along with our GM, MaryAnn Hall.  Along with my appointment to the Board in late 2017 I had the opportunity to chair the B&F Committee this year.  The committee reviewed the operating budget monthly while making recommendations on sources of additional income. The committee reviewed/approved an operational budget for 2018-2019 while recommending the capital budget expenditures (based on overall recommendations from the reserve study).  Thank you to the volunteers for their hard work and collective expertise ---Jeremy, Woodie, Mak, BB and Jimmy.  It was a privilege to oversee the work of this committee this year.

I am seeking a term on the Board to help ensure we continue the forward movement for policies to maintain the financial health of the building.  The Elizabeth is an older building requiring ongoing maintenance.  There are must do’s like the garage renovations.  There are projects that have been delayed such as the hallway renovations that we currently have the financial resources to undertake in a reasonable and phased approach.  There is a plan to address our debt in a sensible way too.  I bring competencies in vendor negotiations, developing and monitoring budgets and human resources management.  Most important I am interested in hearing the views of all the owners and being a voice on the Board for everyone in the great community.  Today our financial position is significantly improved over recent years and maintaining the momentum is important for all owners at the Elizabeth.  Elections matter and it would be my privilege to continue serving on the Board, if elected.  Thank you.

Closing Statement:

During my opening statement I provided everyone with my rationale for wanting to remain on the Board and the competencies I bring.  If you want to learn more about my background my statement of candidacy is available and I can answer questions at any time prior to our annual meeting in May.

I do want to reiterate a few points though I don’t want to elaborate on past decisions: like all owners we felt the pain of significant condo maintenance fee increases over 3 years since moving to the building.  I do think our current financial results show we have turned a corner at the Elizabeth with very positive news for all owners including: operating expenses under budget as of the last financial report reviewed in March; financials only contract with Gates Hudson

with $40k annual savings; $258k in renegotiated contracts; adoption of a Strategic Financial Plan and our most current audit showing $26,316 in the black vs a loss on operations in 2016 of $397,635.

We need to continue on a path forward that the current Board has set in motion with includes necessary capital improvements while balancing the need to lower our debt and being mindful of current condo maintenance fees.  The Elizabeth is a community that all owners want to be proud of.  We want a diverse Board who each brings unique skills/experience to this volunteer role.  I want to thank the owners tonight for your attention and I will stop there as it is late.

CHRISTOPHER WEMPLE

I’m Chris Wemple; my wife, Suzan Stafford and I moved to the Elizabeth in late 2016.  

          My background is that I grew up on the eastern shore of MD, then went to the US Naval Academy.  After graduation, I flew helicopters for the Navy, followed by an assignment in Naval Intelligence.   After leaving the Navy, I continued working for the government on and off while I began my education in psychology.

I earned a Ph.D. in Clinical Psychology at Catholic University and then worked as the assistant director of a university counseling center,  maintained a private practice, and, until I retired about a year and a half ago, provided counseling , crisis intervention and consulting services to the Montgomery County Police Department.

Suzan and I had been living in a house in NW DC, and came to the Elizabeth  because we both recently retired and were ready to downsize.  We wanted stay in the area we had come to love and to be close to our adult children and our grandchildren.

When we got here, we wanted to learn more about the Elizabeth community, so we began to show up for board meetings, and quickly realized that there was a lot going on (to say the least). Clearly, the Elizabeth was going through a difficult, contentious process of major change.

The more we heard, the more worried we became; the Association’s operating budget continued to be in the red, HUD certification had been lost, there had been major flooding incidents, and the association nearly lost it’s insurance coverage.  There was a 5 million dollar outstanding loan balance.  And so on. 

It turns out that there was some good news along with all of the bad news;   we were also seeing the beginning of a financial turnaround. Toward the end of last year, the current board adopted a strategic financial plan, which it has been following, and for the first time in several years the operating budget finished in the black.

Now the Board is in a position to consider a budget that should keep us on track with a modest condo fee increase.  Our HUD certification has been restored, and we are now able to get insurance on the primary market again.

If elected, I intend to support following this course, for as long as it is in the best interest of the Association.

There are still challenges facing the Elizabeth: most importantly, we have to stay on this course to fiscal health; there are likely be unforeseen problems.  This is an old building;  but – this is our home, we have to take care of it, and make sure that the resources to do that are available,

Speaking of resources -  besides money, a vital resource for the Association is the expertise  and hours of involvement given by those members who have been willing to serve on the Board of Directors and other committees.   If you choose me to serve,  I am ready to give my time, whatever expertise I may have, along with my willingness to learn AND my willingness to do my “Due Diligence.”

Thank you.

Summary of ECA Board Meeting March 27, 2018

Board Present: Zlatan Beca, Makarand (Mac) Dehejia, Monique Fridell, Al Muller, Connie Row, Lyle Schwartz, Rhonda Taller

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer)

President’s Report:

Unit 10—Z Beca confirmed that his mother has agreed in writing to rent the Association-owned unit 10. This created an unnecessary firestorm as documented by a letter from Steven Schattman (portions read at the Board meeting) accusing Beca and MaryAnn Hall of having given a Board member’s relative priority over other renters as well as offering a lower rental price. Schattman also called for Beca’s resignation which Beca declined to effect.

None of these accusations were true. After consulting a local relator, the ECA GM (Hall) asked for a rental price ($1800/month) above the average suggested by the realtor. While others expressed interest in the apartment, no one except Beca’s mother was willing to sign a lease agreement for an apartment which real estate agents noted had several drawbacks. Beca also pointed out that this accusation took time away from condo business as well as Beca’s time to attend to his personal business career. He said if anyone has additional problems with this matter, he or she is free to file a complaint with Montgomery County’s Officeof Common Ownership Communities (CCOC). 

Subsequently the Board voted to distribute the lease for Unit 10 to owners via BuildingLink. The rental income will also be included in future financial reports.

Party Room Use and Community Postings—Beca invited volunteers to work on a short-term Task Force to set policy for use of the ECA party room and communications within the ECA. This includes researching what policies other condos in our area employ.

Election Committee—Beca called for volunteers to work on the Election Committee which oversees such activities as the April 17 Meet the Candidates event and the annual meeting itself scheduled this year for May 2.

Anyone interested in working on these activities should contact the Board or GM Hall.

Legal Report:

ECA legal counsel Jeremy Tucker reported on a complaint filed against the ECA with the CCOC pertaining to an ongoing noise issue. The CCOC held a hearing and determined that no action was warranted and has dismissed the case.

Financial Report:

MaryAnn Hall reported there are currently 45 delinquencies pending which is a slightly higher number than last month.

Treasurer’s Report:

Connie Row reported that the ECA has turned a financial corner and has rebounded from our 2016 situation that put us on the brink of bankruptcy. (This included near loss of our Master insurance policy for the commonly-owned building components. In 2016, our reserve fund had been spent down and this caused us to lose our Master insurance. With help from our insurance broker Robin Manougian, we got insurance coverage in the much more expensive secondary market. This coverage also depended on good faith action from a new board taking action to resolve some of our pipe and water leak issues since the building had been suffering many exceptionally large insurance claims for water damage. This good faith action was the EPipe project.)

The role our general manager MaryAnn Hall has played in turning our financial situation around is substantial. (Since she was employed at the Elizabeth, she has saved us hundreds of thousands of dollars via renegotiated contracts.) She continues to help us save money most recently by assuming the responsibilities associated with such things as follow up on delinquencies. Our contract with Gates Hudson is now a Financial Only Contract. This was made possible now that we have a full-time Assistant General Manager and all our other staff positions such as Assistant Engineer are fully staffed.

Management Report:

Garage Project—March 19, two highly capable garage repair contractors—KGS and CPR—were publicly interviewed. CPR said they could begin on May 14 while KGS could not begin until June or July.

Unit Inspections—The West Tower inspections are complete and the East Side began March 26 with a planned schedule of which floors would be done when. Now that we are fully staffed, our engineers will be able to adhere to a regular schedule of replacing filers, checking for leaks, ensuring fire and smoke detectors are fully functioning.

2018 Budget—nearly complete with expectation that our more robust budget will help us with our insurance renewal in June so that we are restored to the primary insurance market.

West Tower Patio Restoration—completed.

G-1 Emergency Doors—These doors were fixed but they required special parts that had to be manufactured since they are old.

New Business:

A list of Capital Expenditures with related budgetary targets for the FY 2018-2019—was approved unanimously by the Board. This includes: retaining wall repairs ($5,000), roof repairs ($260,000), garage project ($728,000), chlorination equipment & ozone sanitizer for pool ($9,000), replace a/c in passenger elevator ($13,000), improve fire safety in hallways ($20,000), corridor renovation phase 1 ($500,000) for a total of $1,535,925.

Garage Project Contractor—CPR was approved unanimously by the Board.

In-Unit Service Program (IUSP) Charges for 2018—IUSP charges for such services as unclogging a drain, changing light bulbs, adjusting closet doors, etc. moves from $32 per hour to $50 per hour with schedule of lesser amounts for activities taking little time and other amounts for repairs that require parts. The fees are not to make money for the ECA but to cover costs. The charges will be reviewed annually to adjust for parts and labor changes. This motion was approved 5 to 2 with Al Muller and Monique Fridell voting against.

Community News:

Developers are trying to clench a deal across the street from the Elizabeth for a 9-storey seniors facility. They were dismayed that someone leaked news of this project.

Owner Comments:

Charles Bressler petitioned the Board to revisit policy on use of guest parking, particularly by the commercial side of the Elizabeth and in anticipation of the garage project. He pointed out that when the building was in its early stages the commercial side was offered the opportunity to buy parking spaces and some of them did not do this.

(The current policy which allows the Arcade owners to use guest parking for their commercial visitors was made by Jim Santos when he was our Legum & Norman general manager and approved by our legal counsel based on ECA bylaws. The Board has agreed to revisit this policy, but any change to the current policy will require a bylaw change.)

Summary of ECA Board Meeting February 27, 2018

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Board Present: Zlatan Beca, Makarand (Mac) Dehejia, Monique Fridell, Al Muller, Connie Row, Lyle Schwartz, Rhonda Taller

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, Gates Hudson Portfolio Manager Larry Hirschman, Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer, Chtd.)

Highlights of the Meeting:

• ECA’s insurance will now be bid on the primary insurance market which should result in significantly lower budgeted deductibles as well as lower premiums when the building insurance comes up for renewal in May 2018.  This improved situation is the result of ECA’s aggressive maintenance program and the E-Pipe project completion.

• The Board approved  a 24-month contract with Gates-Hudson for $43,000 annually to provide more limited financial services to the ECA rather than the current  full service contract at $73,000/year.  The contract also limits the fee to extend the contract for another period to a 2% increase.

Under the new contract, a Gates-Hudson layer of management activity will be shifted to the ECA management team of General Manager and Assistant GM.  Among other activities, Gates-Hudson will no longer handle resale information/transfer packages, do delinquency notices, and financial reporting to ECA Board and owners.  As a result of the change, additional revenue from some activities will accrue to ECA, estimated at $15,000 annually.  This is another way that our General Manager MaryAnn Hall is saving the ECA significant money.

A shift to this level of contracted services was reviewed in the 6-month competitive bidding process completed 2 years ago and was planned to occur when our ECA staff was at full strength as it now is.   For that reason, the contract was not rebid at this time.  (Vote was 6 directors for and one (Al Muller) abstention.)

• The Board also approved a new $15,000 landscaping contract for 2018 with Legend Landscaping subject to legal review, down $5,000 from the previous contractor.  Three companies bid on the contract. 

• Check Bob Joiner’s The Agenda News for up to date information on Parcel 6 activities. Parcel 6 pertains to the development of property next door to the Elizabeth.

From the Management Report (for full details, ask for a copy of this report from our Management Office)

·      Garage Project—a pre-bid meeting was held with FEA and contractors asked to bid on this large project. Potential start date is first week of April.

·      West Tower Inspections—some questions were raised about cleaning of condensate lines. The process has changed so check with Management Office for further information. GM Hall has assured Association the process being used is addressing all concerns raised.

·      West Tower Patio is under restoration.

·      G-1 Emergency Door—awaiting part to repair it.

·      Unit 10 has been rented effective March 1 for one year with possible renewal.

·      Repairs to windows and doors—Hi Rise Windows has been onsite addressing an array of problems.

Outcome of the Bylaw Changes Vote

While the Association did not approve either of the bylaw changes, among those who voted there was momentum toward a significant approval rate.

Here are the numbers:
On the Board election issue, 166 votes (by unit) were cast in favor and 55 (by unit) against which translated into 40% of the weighted votes for and 15.49% of the weighted votes against.

On the Special Assessment, 148 (by unit) voted for and 76 (by unit) against. This worked out to 40.74% of the weighted votes for and 16.61% of the weighted votes against.

The percent of Association approval required:
What you need to understand is that according to the new Maryland condominium law, in order for condo bylaws to be approved, 60% of the condo association by weighted votes must approve the bylaw change. We needed a 51% weighted vote to call this special meeting and in fact, we got 55.08%.

So what does the outcome of this bylaw vote mean?
The outcome means that:
The 40% shows that a large number of Association members are concerned about how we are going to reduce our debt and pay for maintenance of our home. One should keep in mind that as of the budget meeting held on February 28, 2018, we are facing a significantly large bill for garage repairs ($800,000-$1 million).

What about the 45% who did not vote?
—There are approximately 30% of the Association who are non-resident owners, with some smaller percent of these owners being exclusively investors. Typically investors do not want to invest money in their property because the hope is to make money, not spend money.

—That said, there were non-resident owners who do care about their property at the Elizabeth because they intend to move here in the future or expect family members to live here if that isn't already the case. There was a large effort to reach non-resident owners and there was some success in getting them to vote proxies.

—And sadly, there are some resident owners who refuse to step up and take responsibility for being an Association member. I had one man tell me when I asked if he turned in his proxy for the bylaw changes that he didn't want to participate in "house politics." I said this is about your property value but he didn't want to hear that. Some Association members think they are living in a hotel and therefore cannot understand that all Association members are obligated to pay (in one way or another) for common area improvements and maintenance like fixing the garage, putting on a new roof, replacing windows and balcony doors, fixing pipes, refurbishing elevators, ad nauseum.

Summary of ECA Board Meeting January 23, 2018

Board Present: Zlatan Beca, Makarand (Mac) Dehejia, Monique Fridell, Al Muller, Connie Row, Lyle Schwartz, Rhonda Taller

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, Gates Hudson Portfolio Manager Larry Hirschman, Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer, Chtd.), Goldklang Principal Harold Goldklang

HIGHLIGHTS OF THE MEETING

2017 Audit Report

Harold Goldklang, stepping in for Auditor Jeremy Powell, presented the highlights of the 2017 Audit Report. The report is good and presents no financial issues. The balance sheet shows we are recovering from our financial setbacks of the last several years with a slight increase of funds. Treasurer Connie Row said if we continue in the same path that the last two boards have been following, we will continue to show financial improvement.

President’s Report

Due to certain people abusing our General Manager’s open-door policy and taking far too much of her time for repetitive complaints, President Beca has called a moratorium on walk-in visits to the GM. Unscheduled access continues for our able Assistant Manager Romaine Cureton..

Legal Report

Legal counsel Jeremy Tucker said that a general problem in Montgomery County, MD regarding towing companies illegally holding cars hostage until towing fees were paid has resulted in financial penalties throughout the county. The Elizabeth ordered three tows and is libel for approximately $1200 in penalties. Apparently the Elizabeth has no policy on towing and lacks signs saying if you park illegally in our garage, your car will be subject to towing at your expense. One resident said she urges posting of such signs since she had an unknown car in her space for three days. Towing companies say they cannot enter our garage with a flatbed truck because there is not enough clearance. No action was taken on this issue.

Motions

Hallway HVACs—Board voted six to one (dissenting vote was by Al Muller) to approve new controls for the HVAC hallway system to correct hallways that either freezing in cold weather or over heated. GM MaryAnn Hall said after careful consideration the uncompeted contract for this $64,868 repair should go to Noyes, the contractor who has been sorting out all the problems we have had that were not attended to by past contractors.

General Manager’s Report

Garage Project—FEA completed the Scope of Work and it has gone out to potential bidders. It is expected that the work will start April 1.

High Rise Window: Six units report cold air coming through the new windows and doors. High Rise Windows says the windows/doors are no longer under warranty and want to charge $199 just for each service call. Our GM is working on this issue.

New Assistant Chief Engineer—Barry Blanton has accepted the position and began work on January 2. He worked at the Elizabeth for several months under a previous management. He has substantial knowledge of the building and is a Class 1 Engineer.

West Tower Inspections—Checking of smoke detectors, leak inspection, condensate line cleaning is underway.

West Tower Patio and Curbing—Work is being done to discover a leak that is damaging the front of the building.  Curb repairs have been done in the front of the building.