The March meeting of Elizabeth Condo Board highlighted such items as the annual audit, professional management, and the contract with Phyllis Hartman of the Harman Design Group related to the building refurbishment. Here is a thumbnail list of what took place.
A representative from DeLeon & Stang provided a quick overview of the late annual audit report (held up by the Board in favor of completing the Reserve Study first). Finances appear to be in good shape and under sound auditing principals. A question from the floor regarding whether window replacement would provide a tax break to either the building or owners yielded a positive response.
Among the items reported by treasurer Monique Fridell was that while delinquencies doubled in January and February, they went down 2.09% in this period. One case has gone to litigation but other cases have been resolved.
A considerable amount of time was spent discussing and voting on the contract with Phyllis Hartman relative to the building refurbishment. Jeffrey Alexrad wanted the contract to state that the ECA total budget limitation is $1.2 million. This limitation includes Hartman’s design work, materials and other contracted work. Monique Fridell wanted the Board to agree on a spending cap for Hartman’s design work.
The Board is closing in on details regarding how professional management will be handled. Once a contract is signed, there will be an information meeting (as early as April) including a presentation by Legum & Norman to discuss the details.
The nominating committee for election of three new Board members will be Peg Downey, Jerry Feldman, and Pat Peyser. They will accept candidate resumes until April 15. There will be a Meet the Candidates evening on April 23. [Current Board members whose tenure is up include Monique Fridell, Judy Gann, and Alexandra Kielty.]
A contract was agreed upon by the Board to begin maintenance work on the G-3 level of the parking garage. The work, which includes quick setting concrete, periodic jack hammering and concrete dust, will go on for two months. Plastic is available at the front desk to cover cars in the construction area.
Arcade owners asked for placement of planters and benches to spruce up the arcade. The Board authorized use of existing planters. Also it was mentioned that the new arcade sign was paid for by the arcade owners.
The Social Committee will organize use of the new West Lobby television. Residents wishing to use the TV will be able to sign up on a list available at the desk.
Comments from the floor included concerns about replacement of exercise equipment, having front desk staff answer the phone (and not make the caller go through the automated attendant), cars that leak oil destroying the membrane, residents running car engines for extended periods of time that cause toxic fumes throughout the garage, and cars that have no current tags on them.
Friday, March 20, 2009
Wednesday, March 18, 2009
February 2009 Minutes of ECA Board Meeting
MINUTES of a Regular Meeting of the Board of Directors of the Elilzabeth Condominium Association, Inc. (“Association”), held on February 10, 2009 in the Party Room of the Condominium pursuant to notice in accordance with the Bylaws. Present were: George “Woody” Cunningham, Jeffrey Axelrad, Judith Gann, Monique Fridell, Alexandra Kielty, Judith Barth and Alfred Muller.
The President called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the minutes of the regular meeting conducted on December 16, 2008 was made by Ms. Gann with a second by Dr. Muller. The minutes were approved as corrected.
A motion to accept the minutes of the regular meeting conducted on January 14, 2009 was made by Dr. Muller with a second by Ms. Barth. The minutes were approved with the addition of a written protest by Mr. Axelrad. That statement is attached to these minutes.
PRESIDENT’S REPORT:
Mr. Cunningham announced that the final draft of the Reserve Study has been received. In addition, the final draft of the FY2007-2008 audited financial statements will be completed and distributed to the Board within the next two weeks. A preliminary Energy Audit had been distributed to the Energy Committee for review.
An updated new five-year plan will be drafted in March 2009.
A contract with Hartman Design Group, Inc. is in negotiation and should be signed within the next two weeks. The President will appoint a three-person committee from the Board to work with the designer. The President will also appoint a non-Board member advisory committee.
There is no report on the management company proposition. The Board is waiting for a proposal from Legum and Norman, which will include options. A contract will then be negotiated.
A Nominating Committee will be appointed in March, with a “Meet the Candidates” night in April and the Election/Annual Meeting in May 2009.
TREASURER’S REPORT:
News
We are concerned about the fact that delinquencies for January and February almost doubled to 4.3%. We are not yet certain if this represents the beginning of a trend reflecting the negative effects of the economic crisis on some of our neighbors. If overdue fees are not paid by this Friday we will have to send some of these cases to Lerch Early for legal action.
Asset Allocation
As of 1/31 we had almost $2.7 MM in cash and investments, 14 % growth YOY. We have slightly over $2 million in reserves, 14% higher balances than where we stood at this point last year.
We have been investing at slightly longer maturities in an effort to earn an interest rate over 1% p.a. and since it will be a few months before we need cash for major capital expenditures relating to the start of the refurbishing project. Our investment strategy remains primarily defensive, as we have been seeking to invest our money in creditworthy institutions rather than to maximize returns.
Monthly Performance
January net income of $42K is overstated due to the early timing of this month’s Board Meeting and the non-receipt of key bills such as natural gas and water. As such, a monthly analysis is not useful since final figures will change. In January, we transferred almost $44K to reserves and spent only $4K from reserves on façade repairs and the final payment for the Reserve Study.
FY 2009 Year to Date (YTD) Results
For the seven months ending 1/31, net income was $102K, 32% less than what we had budgeted. Specific line items over budget are:
• Interest income lower by 41% and 37%, respectively, for operating and Reserve investments, due to lower prevailing interest rate environment
• Accounting due to timing of payment relating to audit services and extra services incurred due to wait for Reserve Study
• Other Admin due to new phone system, to be reclassified as Office Equipment
• Uniforms due to higher service cost and additional uniforms purchased
• Other personnel due to replacement of time clock
• Sauna & Exercise Room due to purchase of new rower machine
• Other Amenities due to purchase of TV for West Lobby
• Electricity due to our failure to meet “Utility Challenge”
• Elevator maintenance due to inspection and repair work on several elevators out/malfunctioning
• Inspections due to fire system/sprinkler inspections
• Trash removal due to additional bulk pickups
• Association activities due to social activities Board has sponsored that were not in original budget
We have transferred $306K to reserves this year to date and spent $189K from reserves mostly on façade repairs, fire horn installation and correction of electrical system deficiencies.
Comments from the Floor: Ms. Dillon, #718, asked why the utility expense figures were different on the financial statements and on the utility usage chart, Ms. Fridell explained the the figures on the financial statements are accrued forr the month in question, while those on the utility usage chart are the total amount of the bill received for that month. Mr. Cunningham said that the electric utility rates increased in December 2008 when a new contract went into effect. Ms. Mudd, #1617, asked what the uniform fees covered. Ms. Fridell replied that they were for front desk uniforms. Mr. Cunningham said that they were also for maintenance uniforms.
Ms. Dillon, #718, also said that incomplete monthly financial statements should not be presented to residents since they do not accurately represent all the expenses for the month. Ms. Fridell replied that whenever monthly financials are understated due to non-receipt of bills, as is the case for January 2009, she states this in her Treasurer’s Report. Ms. Fridell stated that the Board had decided that it preferred the timeliness of receiving/presenting the previous month’s financial statements to a two-month delay, despite the risk of potentially diminished accuracy.
MANAGEMENT REPORT:
A copy of the Management Report, dated February 10, 2009 is attached hereto.
OLD BUSINESS:
A proposal will be presented for the purchase of an emergency generator for $40,000 from Cummins Power Systems, Inc. Mr. Cunningham recommended accepting the proposal.
A proposal will be presented for modification of the electrical system to ensure power to one bank of elevators in the event of an emergency situation. Mr. Cunningham recommended delaying acceptance of this proposal until further information is received. He expressed concern with Mr. Fauss’ delay and wants assurance of faster turnaround. He also wants to know exactly what Otis Elevator is proposing for $55,000.
Dr. Muller made a motion to purchase the emergency generator for $40,000 from Cummins Power Systems, Inc. Ms. Kielty seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
The Energy Audit recommendations included replacing fluorescent bulbs, mainly in the garage; window replacement, caulking and sealing windows and doors and heat variations in the east and west corridors of the building.
NEW BUSINESS:
Committee Reports:
Refurbishment Committee: Jason Fisher, our ECA Counsel, is negotiating with Hartman Design Group, Inc. on the design contract.
Energy Committee: Mr. Drazin, acting Chair, reported that a Committee meeting will be held on February 12th at 8 p.m.
Social Committee: Ms. Barth said there have been seven social events thus far this year; four were free and three were fee-based. The budget is very limited. The television will be on for the Oscars and basketball tournament finals.
On February 24, 2009, Ms. Peg Downey will host a presentation on reverse mortgages at 7 p.m. There will be no sales involved; it will be an informational meeting only.
On March 5, 2009 Ms. Sharon Bobb will host a program on Suspicious Activities by the Montgomery County Police Department’s Commander Russ Hamil.
A kick-off barbeque at the beginning of the summer season and another party at the end of summer are also being planned.
Ms. Barth commended her committee for all their hard work.
Exercise Room Committee: Ms. Kielty reported that three vendors have looked at the Exercise Room area. The Committee met with Fitness Resources, who has providedf equipment to the Elizabeth previously. Further discussion of the existing equipment and cost/financing options are necessary before proceeding any further.
Americlean has presented a proposal to clean in-unit air ducts and McQuay units at the same time that the hall units are cleaned. Further information is needed so residents can decide whether to have their individual units done.
Security: Management proposed to reinstate Saturday and Sunday doorman shifts from 7 a.m. to 3 p.m., when more residents are home and may need to go to storage, help with packages, etc. Dr. Muller indicated that the extra cost for such service would be about $10,000. Without a security person at the front door, cars are once again remaining in the driveway, and the luggage carts are not being signed out and are not readily available. Mr. Cunningham asked that Mr. Polite obtain more specific information on the weekend services so the Board can vote on this issue.
Contracts:
Ms. Barth moved that the Board approve a motion to purchase an emergency generator from Cummins Power Systems, Inc. for $40, 648. Dr. Muller seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
Ms. Barth made a motion to Americlean to clean the tower air handler ducts and grilles for $7,628. Ms. Kielty seconded the motion. Mr. Axelrad suggested that management obtain another bid.
Mr. Axelrad made a motion that a contract be signed to clean towers at $540 each. Ms. Fridell seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
House Rules: Mr. Axelrad reported that there had been twelve (12) sets of comments from residents. There were three themes: (1) clarifications of changes should be made, (2) rules should be more restrictive of owner rights and common area useage, and (3) rules should be less restrictive of owners’ rights and common area useage.
Mary Catherine Curran, #310, expressed concern about music in the Party Room. There was discussion about the noise levels, keeping the Party Room door closed when music is being played, etc. Ms. Dillon, #718, said that the previous Board adopted the rule because party parricipants roamed beyond the Party Room into common areas. Mr. Treback, #1407, said the problem is sound amplification. Ms. Sandler, #211, reported the issue of young people leaving the Party Room and going into the common areas. Ms. Gann suggested that management should enforce the House rules regarding loud noise, etc. Ms. Olshan, #1014, suggested an appropriate ratio of adults supervising children, based on age and number of attendees. Mr. Cunningham called for a vote on the revised House Rules.
Mr. Axelrad moved to adopt the House Rules with modifications previously distributed to the Board. Ms. Gann seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, and Dr. Muller voted in favor of the motion. Ms. Barth voted against the motion. The motion passed.
COMMENTS FROM THE FLOOR:
Ms. Quarterman, #906, asked about priorities for refurbishment. Mr. Cunningham informed her that no priorities had been set. The designer knows the budget and will present her recommendations for priorities. The Board will then decide how to proceed.
Ms. Alenier, #301, suggested that the Board consider new windows. Mr. Rich said he had put plastic over windows in the bedroom and this has resulted in less cold air leakage. He said he had not turned on the heat even once since covering his windows.
Ms. Downey, #615, stated that this is a good time to check the cost effectiveness of new windows.
Ms. Dillon, #718, stated that Article 10 of the By-Laws states that commercial events are not allowed in the Elizabeth. She stressed that the presentation of reverse mortgages should be informational only.
Ms. Dillon asked why the FY 2007-2008 audit statements were not ready and stated that it is eight months past the 6/30 fiscal year end. She recommended that the audit be distributed to residents in a more timely fashion next year. Ms. Fridell responded that the draft audited financial statements have been available since October 2008 for residents to review as she announced at previous Board Meetings. As discussed in previous Board Meetings, the Board decided last fall to delay publishing the audit so that the results of a full Reserve Study, commissioned by the Board, could be included. The final audit was delayed by a wait for the Reserve Study to be completed.
Mr. Jones, #307, asked why there was not an external advisory committee to study management companies, as there was for the refurbishing project. Mr. Cunningham explained that a special meeting to discuss management companies was held in January, 2009; the Board legally could have held an Executive Session to discuss this issue, since it is of a personnel nature.
Ms. Winthrop, #1114, asked that the Board consider signing a one-year contract with a management company to see how things work out. She also suggested waiting before signing a contract with a management company and having a referendum on the issue.
Ms. Miller, #607, asked that there be a referendum on the management company.
Ms. Feldman, #1819, asked what was the purpose of having a Board if residents are going to have a referendum and make decisions.
The meeting was adjourned at 9:20 p.m.
[These minutes were prepared by Judith Gann, Secretary of the ECA, and Karren Alenier posted these minutes to this blog. Alenier has bolded some of the issues for ease of locating specific topics. The ECA Board Meeting Minutes is a public document and available in paper copy at the ECA Management office.]
The President called the meeting to order at 7:35 p.m.
MINUTES:
A motion to accept the minutes of the regular meeting conducted on December 16, 2008 was made by Ms. Gann with a second by Dr. Muller. The minutes were approved as corrected.
A motion to accept the minutes of the regular meeting conducted on January 14, 2009 was made by Dr. Muller with a second by Ms. Barth. The minutes were approved with the addition of a written protest by Mr. Axelrad. That statement is attached to these minutes.
PRESIDENT’S REPORT:
Mr. Cunningham announced that the final draft of the Reserve Study has been received. In addition, the final draft of the FY2007-2008 audited financial statements will be completed and distributed to the Board within the next two weeks. A preliminary Energy Audit had been distributed to the Energy Committee for review.
An updated new five-year plan will be drafted in March 2009.
A contract with Hartman Design Group, Inc. is in negotiation and should be signed within the next two weeks. The President will appoint a three-person committee from the Board to work with the designer. The President will also appoint a non-Board member advisory committee.
There is no report on the management company proposition. The Board is waiting for a proposal from Legum and Norman, which will include options. A contract will then be negotiated.
A Nominating Committee will be appointed in March, with a “Meet the Candidates” night in April and the Election/Annual Meeting in May 2009.
TREASURER’S REPORT:
News
We are concerned about the fact that delinquencies for January and February almost doubled to 4.3%. We are not yet certain if this represents the beginning of a trend reflecting the negative effects of the economic crisis on some of our neighbors. If overdue fees are not paid by this Friday we will have to send some of these cases to Lerch Early for legal action.
Asset Allocation
As of 1/31 we had almost $2.7 MM in cash and investments, 14 % growth YOY. We have slightly over $2 million in reserves, 14% higher balances than where we stood at this point last year.
We have been investing at slightly longer maturities in an effort to earn an interest rate over 1% p.a. and since it will be a few months before we need cash for major capital expenditures relating to the start of the refurbishing project. Our investment strategy remains primarily defensive, as we have been seeking to invest our money in creditworthy institutions rather than to maximize returns.
Monthly Performance
January net income of $42K is overstated due to the early timing of this month’s Board Meeting and the non-receipt of key bills such as natural gas and water. As such, a monthly analysis is not useful since final figures will change. In January, we transferred almost $44K to reserves and spent only $4K from reserves on façade repairs and the final payment for the Reserve Study.
FY 2009 Year to Date (YTD) Results
For the seven months ending 1/31, net income was $102K, 32% less than what we had budgeted. Specific line items over budget are:
• Interest income lower by 41% and 37%, respectively, for operating and Reserve investments, due to lower prevailing interest rate environment
• Accounting due to timing of payment relating to audit services and extra services incurred due to wait for Reserve Study
• Other Admin due to new phone system, to be reclassified as Office Equipment
• Uniforms due to higher service cost and additional uniforms purchased
• Other personnel due to replacement of time clock
• Sauna & Exercise Room due to purchase of new rower machine
• Other Amenities due to purchase of TV for West Lobby
• Electricity due to our failure to meet “Utility Challenge”
• Elevator maintenance due to inspection and repair work on several elevators out/malfunctioning
• Inspections due to fire system/sprinkler inspections
• Trash removal due to additional bulk pickups
• Association activities due to social activities Board has sponsored that were not in original budget
We have transferred $306K to reserves this year to date and spent $189K from reserves mostly on façade repairs, fire horn installation and correction of electrical system deficiencies.
Comments from the Floor: Ms. Dillon, #718, asked why the utility expense figures were different on the financial statements and on the utility usage chart, Ms. Fridell explained the the figures on the financial statements are accrued forr the month in question, while those on the utility usage chart are the total amount of the bill received for that month. Mr. Cunningham said that the electric utility rates increased in December 2008 when a new contract went into effect. Ms. Mudd, #1617, asked what the uniform fees covered. Ms. Fridell replied that they were for front desk uniforms. Mr. Cunningham said that they were also for maintenance uniforms.
Ms. Dillon, #718, also said that incomplete monthly financial statements should not be presented to residents since they do not accurately represent all the expenses for the month. Ms. Fridell replied that whenever monthly financials are understated due to non-receipt of bills, as is the case for January 2009, she states this in her Treasurer’s Report. Ms. Fridell stated that the Board had decided that it preferred the timeliness of receiving/presenting the previous month’s financial statements to a two-month delay, despite the risk of potentially diminished accuracy.
MANAGEMENT REPORT:
A copy of the Management Report, dated February 10, 2009 is attached hereto.
OLD BUSINESS:
A proposal will be presented for the purchase of an emergency generator for $40,000 from Cummins Power Systems, Inc. Mr. Cunningham recommended accepting the proposal.
A proposal will be presented for modification of the electrical system to ensure power to one bank of elevators in the event of an emergency situation. Mr. Cunningham recommended delaying acceptance of this proposal until further information is received. He expressed concern with Mr. Fauss’ delay and wants assurance of faster turnaround. He also wants to know exactly what Otis Elevator is proposing for $55,000.
Dr. Muller made a motion to purchase the emergency generator for $40,000 from Cummins Power Systems, Inc. Ms. Kielty seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
The Energy Audit recommendations included replacing fluorescent bulbs, mainly in the garage; window replacement, caulking and sealing windows and doors and heat variations in the east and west corridors of the building.
NEW BUSINESS:
Committee Reports:
Refurbishment Committee: Jason Fisher, our ECA Counsel, is negotiating with Hartman Design Group, Inc. on the design contract.
Energy Committee: Mr. Drazin, acting Chair, reported that a Committee meeting will be held on February 12th at 8 p.m.
Social Committee: Ms. Barth said there have been seven social events thus far this year; four were free and three were fee-based. The budget is very limited. The television will be on for the Oscars and basketball tournament finals.
On February 24, 2009, Ms. Peg Downey will host a presentation on reverse mortgages at 7 p.m. There will be no sales involved; it will be an informational meeting only.
On March 5, 2009 Ms. Sharon Bobb will host a program on Suspicious Activities by the Montgomery County Police Department’s Commander Russ Hamil.
A kick-off barbeque at the beginning of the summer season and another party at the end of summer are also being planned.
Ms. Barth commended her committee for all their hard work.
Exercise Room Committee: Ms. Kielty reported that three vendors have looked at the Exercise Room area. The Committee met with Fitness Resources, who has providedf equipment to the Elizabeth previously. Further discussion of the existing equipment and cost/financing options are necessary before proceeding any further.
Americlean has presented a proposal to clean in-unit air ducts and McQuay units at the same time that the hall units are cleaned. Further information is needed so residents can decide whether to have their individual units done.
Security: Management proposed to reinstate Saturday and Sunday doorman shifts from 7 a.m. to 3 p.m., when more residents are home and may need to go to storage, help with packages, etc. Dr. Muller indicated that the extra cost for such service would be about $10,000. Without a security person at the front door, cars are once again remaining in the driveway, and the luggage carts are not being signed out and are not readily available. Mr. Cunningham asked that Mr. Polite obtain more specific information on the weekend services so the Board can vote on this issue.
Contracts:
Ms. Barth moved that the Board approve a motion to purchase an emergency generator from Cummins Power Systems, Inc. for $40, 648. Dr. Muller seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
Ms. Barth made a motion to Americlean to clean the tower air handler ducts and grilles for $7,628. Ms. Kielty seconded the motion. Mr. Axelrad suggested that management obtain another bid.
Mr. Axelrad made a motion that a contract be signed to clean towers at $540 each. Ms. Fridell seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, Ms. Barth and Dr. Muller voted in favor of the motion. The motion passed.
House Rules: Mr. Axelrad reported that there had been twelve (12) sets of comments from residents. There were three themes: (1) clarifications of changes should be made, (2) rules should be more restrictive of owner rights and common area useage, and (3) rules should be less restrictive of owners’ rights and common area useage.
Mary Catherine Curran, #310, expressed concern about music in the Party Room. There was discussion about the noise levels, keeping the Party Room door closed when music is being played, etc. Ms. Dillon, #718, said that the previous Board adopted the rule because party parricipants roamed beyond the Party Room into common areas. Mr. Treback, #1407, said the problem is sound amplification. Ms. Sandler, #211, reported the issue of young people leaving the Party Room and going into the common areas. Ms. Gann suggested that management should enforce the House rules regarding loud noise, etc. Ms. Olshan, #1014, suggested an appropriate ratio of adults supervising children, based on age and number of attendees. Mr. Cunningham called for a vote on the revised House Rules.
Mr. Axelrad moved to adopt the House Rules with modifications previously distributed to the Board. Ms. Gann seconded the motion. Mr. Cunningham, Mr. Axelrad, Ms. Gann, Ms. Fridell, Ms. Kielty, and Dr. Muller voted in favor of the motion. Ms. Barth voted against the motion. The motion passed.
COMMENTS FROM THE FLOOR:
Ms. Quarterman, #906, asked about priorities for refurbishment. Mr. Cunningham informed her that no priorities had been set. The designer knows the budget and will present her recommendations for priorities. The Board will then decide how to proceed.
Ms. Alenier, #301, suggested that the Board consider new windows. Mr. Rich said he had put plastic over windows in the bedroom and this has resulted in less cold air leakage. He said he had not turned on the heat even once since covering his windows.
Ms. Downey, #615, stated that this is a good time to check the cost effectiveness of new windows.
Ms. Dillon, #718, stated that Article 10 of the By-Laws states that commercial events are not allowed in the Elizabeth. She stressed that the presentation of reverse mortgages should be informational only.
Ms. Dillon asked why the FY 2007-2008 audit statements were not ready and stated that it is eight months past the 6/30 fiscal year end. She recommended that the audit be distributed to residents in a more timely fashion next year. Ms. Fridell responded that the draft audited financial statements have been available since October 2008 for residents to review as she announced at previous Board Meetings. As discussed in previous Board Meetings, the Board decided last fall to delay publishing the audit so that the results of a full Reserve Study, commissioned by the Board, could be included. The final audit was delayed by a wait for the Reserve Study to be completed.
Mr. Jones, #307, asked why there was not an external advisory committee to study management companies, as there was for the refurbishing project. Mr. Cunningham explained that a special meeting to discuss management companies was held in January, 2009; the Board legally could have held an Executive Session to discuss this issue, since it is of a personnel nature.
Ms. Winthrop, #1114, asked that the Board consider signing a one-year contract with a management company to see how things work out. She also suggested waiting before signing a contract with a management company and having a referendum on the issue.
Ms. Miller, #607, asked that there be a referendum on the management company.
Ms. Feldman, #1819, asked what was the purpose of having a Board if residents are going to have a referendum and make decisions.
The meeting was adjourned at 9:20 p.m.
[These minutes were prepared by Judith Gann, Secretary of the ECA, and Karren Alenier posted these minutes to this blog. Alenier has bolded some of the issues for ease of locating specific topics. The ECA Board Meeting Minutes is a public document and available in paper copy at the ECA Management office.]
Tuesday, March 17, 2009
ECA Reserve Study
On March 9, 2009, a representative from Reserve Advisors presented to a large gathering of Elizabethans in the west lobby the results of the study Reserve Advisors made based on a “visual, noninvasive inspection” completed November 14, 2008.
WHAT IS A RESERVE STUDY?
A Reserve Study is a budget-planning tool that identifies the current status of an association’s monetary reserve fund in order to create a “stable and equitable” Reserve Funding Plan to offset anticipated expenditures that might arise in the future. Often, a Reserve Study provides documentation for necessary increases in an association’s fees.
THE BOTTOM LINE
In the case of Elizabeth Condominium Association (ECA), this study indicates modest increases in the next two fiscal years, followed by increases for inflation for the years 2012 through 2024, then another modest decrease in 2025 followed by increases for inflation for the years 2026 to 2039.
HANDOUTS
A folder of documents is available from the ECA Management Office. This discussion here skims what was presented and it is highly recommended that each owner obtain the Reserve Advisors folder of information to fully understand the results of the study. The documents include:
1. A six-page Executive Summary
2. A seven-page Slide presentation
3. A four-page spreadsheet of ECA Reserve Expenditures (2010-2039)
4. A one-page spreadsheet of the recommended ECA Reserve Funding Plan (2010-2039)
STATED CONCERN
The Executive Summary states, “the unaudited cash status of the reserve fund, as of October 31, 2008, as reported by Management is $1,925,441. If the Association were to continue to fund reserves at its 2009 budgeted amount of $524,160, the reserve fund would incur a potential shortage by 2016.”
RESERVE EXPENDITURES ADDRESSED
The four-page spreadsheet of ECA Reserve Expenditures examined monetarily from 2010-2039, is broken down into the following general categories:
• Exterior Building Elements
This includes roofs, walls, windows, doors, balconies, canopies, skylights, light fixtures, and other exterior elements.
• Interior Building Elements
This includes renovations for the lobby & party room, hallway wall coverings, furniture, exercise equipment & renovations to exercise rooms, mailboxes, stairway wall maintenance, floor coverings, light fixtures, and other interior elements.
• Building Services Elements
This includes maintenance & replacement of major equipment related to heating & cooling, electrical systems, elevators, water pumps, security systems, trash chutes, etc.
• Property Site Elements
This relates to concrete, wooden, brick walk/driveways.
• Pool & Pool Room Elements
As stated.
• Garage Elements
As stated
FUTURE BUILDING REPAIR RECOMMENDATIONS
This spreadsheet also indicates what Reserve Advisors recommends as replacement dates for some of the elements discussed. One particular replacement date raised a lot of discussion from those attending the meeting.
Reserve Advisors, based on their “visual, noninvasive inspection” (this means they did not go inside any apartments), recommended that windows, doors, and metal panels begin a phased replacement starting in the year 2021. They stated that the original windows have a life expectancy of 45 to 55 years with 12 years remaining of serviceable use.
Given that some of the residents have already stated that their windows have deteriorated so much that curtains billow when the wind blows (and the wind comes through the interior sealing joints of the windows) and caulking is not a viable way to fix this problem, one wonders about the value of this study.
WHAT IS A RESERVE STUDY?
A Reserve Study is a budget-planning tool that identifies the current status of an association’s monetary reserve fund in order to create a “stable and equitable” Reserve Funding Plan to offset anticipated expenditures that might arise in the future. Often, a Reserve Study provides documentation for necessary increases in an association’s fees.
THE BOTTOM LINE
In the case of Elizabeth Condominium Association (ECA), this study indicates modest increases in the next two fiscal years, followed by increases for inflation for the years 2012 through 2024, then another modest decrease in 2025 followed by increases for inflation for the years 2026 to 2039.
HANDOUTS
A folder of documents is available from the ECA Management Office. This discussion here skims what was presented and it is highly recommended that each owner obtain the Reserve Advisors folder of information to fully understand the results of the study. The documents include:
1. A six-page Executive Summary
2. A seven-page Slide presentation
3. A four-page spreadsheet of ECA Reserve Expenditures (2010-2039)
4. A one-page spreadsheet of the recommended ECA Reserve Funding Plan (2010-2039)
STATED CONCERN
The Executive Summary states, “the unaudited cash status of the reserve fund, as of October 31, 2008, as reported by Management is $1,925,441. If the Association were to continue to fund reserves at its 2009 budgeted amount of $524,160, the reserve fund would incur a potential shortage by 2016.”
RESERVE EXPENDITURES ADDRESSED
The four-page spreadsheet of ECA Reserve Expenditures examined monetarily from 2010-2039, is broken down into the following general categories:
• Exterior Building Elements
This includes roofs, walls, windows, doors, balconies, canopies, skylights, light fixtures, and other exterior elements.
• Interior Building Elements
This includes renovations for the lobby & party room, hallway wall coverings, furniture, exercise equipment & renovations to exercise rooms, mailboxes, stairway wall maintenance, floor coverings, light fixtures, and other interior elements.
• Building Services Elements
This includes maintenance & replacement of major equipment related to heating & cooling, electrical systems, elevators, water pumps, security systems, trash chutes, etc.
• Property Site Elements
This relates to concrete, wooden, brick walk/driveways.
• Pool & Pool Room Elements
As stated.
• Garage Elements
As stated
FUTURE BUILDING REPAIR RECOMMENDATIONS
This spreadsheet also indicates what Reserve Advisors recommends as replacement dates for some of the elements discussed. One particular replacement date raised a lot of discussion from those attending the meeting.
Reserve Advisors, based on their “visual, noninvasive inspection” (this means they did not go inside any apartments), recommended that windows, doors, and metal panels begin a phased replacement starting in the year 2021. They stated that the original windows have a life expectancy of 45 to 55 years with 12 years remaining of serviceable use.
Given that some of the residents have already stated that their windows have deteriorated so much that curtains billow when the wind blows (and the wind comes through the interior sealing joints of the windows) and caulking is not a viable way to fix this problem, one wonders about the value of this study.
Friday, March 13, 2009
Summary of Talk on "How to Recognize and Report Suspicious Activity”
On March 5, 2009, Commander Russ Hamill of the Montgomery Country Police Department spoke about “How to Recognize and Report Suspicious Activity.”
The two most important things to know are:
• Law enforcement continues to need a strong partnership between the public and police to keep ourselves and our country safe from crime and terrorist acts.
• If you see a person acting suspiciously; a suspicious vehicle, parcel, or other item; or a suspicious activity or situation, call 911...and/or the other phone numbers for the DC metro area, which were provided on one of the handouts mentioned below.
The following points cover the content of Commander Hamill’s talk.
1. The threat is real. It is a mistake to be complacent. Al Qaeda is still looking for ways to inflict the maximum damage and the heaviest body count.
2. The public does not hear about all the plots that are interrupted or foiled, although some are publicized. For example, in January 2006, a Circuit City employee at Ft. Dix alerted Mount Laurel police about a Jihadist training video he was asked to develop. The Police then contacted the FBI, which launched the investigation. On November 21, 2008, the Circuit City employee was hailed as a hero by officials and by customers.
3. Other countries, such as Israel and Britain, have been successful interrupting plots because of the participation of ordinary citizens.
4. The ratio of police to citizens in Montgomery County is 1.6 police to every 1000 citizens. The Police need our help - to be their eyes and ears, just as the FBI needed the help of that video store clerk to catch the bad guys.
5. When in doubt about something that looks suspicious, report it. Reports to the TIP line are anonymous, and the Police will determine whether this is something that requires further investigation or not.
6. Elizabeth Condominium employees are in an excellent position to notice suspicious behavior or circumstances. They are in and out of every apartment, on the roof, in the basement, outside in front of the building, and at the front desk. They should not hesitate to report suspicious behavior or circumstances directly to the TIP line. We need everyone’s help.
HANDOUTS:
There were four handouts from this briefing. Copies of the handouts are available in the Elizabeth Condominium management office.
1. Important Telephone Numbers in our area. (8.5” X 11” single-sided sheet).
2. F.B.I Terrorism Quick Reference Card ((8.5” X 5.5” double-sided card). There is also some of this information on the F.B.I. website at http://www.fbi.gov/page2/aug04/preventterror080204.htm
3. Procedures for Reporting a Crime or Suspicious Activity (8.5” X 11” double-sided sheet). There is also some of this information on the Montgomery County Government website at http://www.montgomerycountymd.gov/poltmpl.asp?url=/content/pol/districts/MSB/recordsdivision/TRS.asp
4. Reporting Suspicious Activities (8.5” X 3.7” double-sided brochure folded twice). There is also some of this information on the Montgomery County Government website at http://www.montgomerycountymd.gov/poltmpl.asp?url=/content/pol/seniorsafetyinformation/suspiciousactivity.asp
The two most important things to know are:
• Law enforcement continues to need a strong partnership between the public and police to keep ourselves and our country safe from crime and terrorist acts.
• If you see a person acting suspiciously; a suspicious vehicle, parcel, or other item; or a suspicious activity or situation, call 911...and/or the other phone numbers for the DC metro area, which were provided on one of the handouts mentioned below.
The following points cover the content of Commander Hamill’s talk.
1. The threat is real. It is a mistake to be complacent. Al Qaeda is still looking for ways to inflict the maximum damage and the heaviest body count.
2. The public does not hear about all the plots that are interrupted or foiled, although some are publicized. For example, in January 2006, a Circuit City employee at Ft. Dix alerted Mount Laurel police about a Jihadist training video he was asked to develop. The Police then contacted the FBI, which launched the investigation. On November 21, 2008, the Circuit City employee was hailed as a hero by officials and by customers.
3. Other countries, such as Israel and Britain, have been successful interrupting plots because of the participation of ordinary citizens.
4. The ratio of police to citizens in Montgomery County is 1.6 police to every 1000 citizens. The Police need our help - to be their eyes and ears, just as the FBI needed the help of that video store clerk to catch the bad guys.
5. When in doubt about something that looks suspicious, report it. Reports to the TIP line are anonymous, and the Police will determine whether this is something that requires further investigation or not.
6. Elizabeth Condominium employees are in an excellent position to notice suspicious behavior or circumstances. They are in and out of every apartment, on the roof, in the basement, outside in front of the building, and at the front desk. They should not hesitate to report suspicious behavior or circumstances directly to the TIP line. We need everyone’s help.
HANDOUTS:
There were four handouts from this briefing. Copies of the handouts are available in the Elizabeth Condominium management office.
1. Important Telephone Numbers in our area. (8.5” X 11” single-sided sheet).
2. F.B.I Terrorism Quick Reference Card ((8.5” X 5.5” double-sided card). There is also some of this information on the F.B.I. website at http://www.fbi.gov/page2/aug04/preventterror080204.htm
3. Procedures for Reporting a Crime or Suspicious Activity (8.5” X 11” double-sided sheet). There is also some of this information on the Montgomery County Government website at http://www.montgomerycountymd.gov/poltmpl.asp?url=/content/pol/districts/MSB/recordsdivision/TRS.asp
4. Reporting Suspicious Activities (8.5” X 3.7” double-sided brochure folded twice). There is also some of this information on the Montgomery County Government website at http://www.montgomerycountymd.gov/poltmpl.asp?url=/content/pol/seniorsafetyinformation/suspiciousactivity.asp
Wednesday, March 4, 2009
Cleaning of McQuay Units & Ducts: March 10 Sign Up Deadline
Americlean Corp. will be providing a reduced rate
for the cleaning of McQuay units and the duct work in your apartment.
The work will be scheduled and coordinated for residents of the building.
Residents will be responsible for paying for this service.
Americlean believes that they can do four McQuay units per day.
SIGN UP DEAD LINE MARCH 10th
The prices for the work are:
1 Fan Coil & Duct work (Vertical McQuay) . $145
1 Fan Coil & Duct Work (Vertical McQuay)
& 1 Convector (Horizontal McQuay) . . $215
2 Fan Coil & Duct Work (Vertical McQuay . $225
2 Fan Coil & Duct Work (Vertical McQuay) . $310
3 fan Coil & Duct Work (Vertical McQuay) . $330
Additional Services:
*Fan Coil Unit Vertical Insulation Coating . $105
*Convector (Horizontal) Insulation Coating . $75
*Fan Coil Unit Vertical Sanitizing . . . . $95
*Convector (Horizontal) Sanitizing . . . $65
Dryer Vent Cleaning (inside the unit only). . $125
*Optionial Services. Vendor will discuss pros & cons.
A sign up sheet will be at the front Desk. The work should
start on March the 16th. Please call or drop by if you wish to
discuss this project.
Call Carolyn Farrell at (301) 652-1797 for more information
NOTE: Why have your units and ducts cleaned?
With all the construction that has gone on around the building,
apartments have gotten a lot of dust, including cement dust
in their heating/cooling systems.
If your McQuay units have been subject to mold, Americlean
service personnel will advise you and, in that case, you would also
want the sanitizing option. The coating option relates to insulation
and again the Americlean personnel will advise you if that needs
replacement.
for the cleaning of McQuay units and the duct work in your apartment.
The work will be scheduled and coordinated for residents of the building.
Residents will be responsible for paying for this service.
Americlean believes that they can do four McQuay units per day.
SIGN UP DEAD LINE MARCH 10th
The prices for the work are:
1 Fan Coil & Duct work (Vertical McQuay) . $145
1 Fan Coil & Duct Work (Vertical McQuay)
& 1 Convector (Horizontal McQuay) . . $215
2 Fan Coil & Duct Work (Vertical McQuay . $225
2 Fan Coil & Duct Work (Vertical McQuay) . $310
3 fan Coil & Duct Work (Vertical McQuay) . $330
Additional Services:
*Fan Coil Unit Vertical Insulation Coating . $105
*Convector (Horizontal) Insulation Coating . $75
*Fan Coil Unit Vertical Sanitizing . . . . $95
*Convector (Horizontal) Sanitizing . . . $65
Dryer Vent Cleaning (inside the unit only). . $125
*Optionial Services. Vendor will discuss pros & cons.
A sign up sheet will be at the front Desk. The work should
start on March the 16th. Please call or drop by if you wish to
discuss this project.
Call Carolyn Farrell at (301) 652-1797 for more information
NOTE: Why have your units and ducts cleaned?
With all the construction that has gone on around the building,
apartments have gotten a lot of dust, including cement dust
in their heating/cooling systems.
If your McQuay units have been subject to mold, Americlean
service personnel will advise you and, in that case, you would also
want the sanitizing option. The coating option relates to insulation
and again the Americlean personnel will advise you if that needs
replacement.
Sunday, March 1, 2009
Update on Hiring a Professional Management Company
On February 24, 2009, the Elizabeth Condominium Association (ECA) president Woody Cunningham sent a letter to the ECA community to update everyone on getting a professional management company.
This is a topic that continues to generate controversy and a number of concerns were addressed in this letter.
On cost, I would like to break down the figures provided to make it clear that hiring a professional management company looks like we save money. If this breakdown is not correct, I expect someone to speak up and let me know.
If the ECA goes with Legum & Norman, reported to be the "most experienced firm" interviewed by the ECA Board, the cost would be $90,000. I assume this means per year. However, since the firm would assume responsibility for our present financial department which currently costs us $51,000 per year, the $90,000 would be reduced by that cost.
$90,000 cost of Legum & Norman professional management services
-51,000 savings on financial management
________
$39,000
Subsequent to this estimate for a professional management company, the ECA Board voted to eliminate one security/doorman shift which is a savings of $50,000. One assumes that the issue of security will be better managed under a professional management company.
IF the ECA will potentially realize savings in the areas of financial and security management that would be:
$51,000 Financial management
+50,000 Security
________
$101,000
In the first year, there would be a one-time start up fee of $28,000 from the management company.
Year 1
$101,000 Realized Savings
- 90,000 Management fee
- 28,000 One time start up fee
________
[$ 17,000] Cost of professional management service in the first year
Year 2
$101,000 Realized Savings
- 90,000 Management fee
________
$ 11,000 Savings realized from hiring a professional management company
What this means is that the one-time start up fee, would be recovered in less than 2 1/2 years.
While this number crunching does not take into account all the details of what services would be covered, it does give a reasonable expectation that hiring a professional management company should not only streamline and update our management services but it should indeed give us a cost savings.
This financial information, when taken into account with other points that were clarified in Mr. Cunningham's letter, seems to indicate a sound undertaking in the best interest of our condo association and community. Here are the points that were clarified.
--If any current staff is to be retained or dismissed, the decision will be made by the ECA Board and not the professional management company.
--A hybrid management between the ECA Board & the management company is under consideration.
--The contract with the professional management company would be signed with the understanding if the company fails to provide what is needed, then the contract could be terminate.
This approach helps save financial resources which can be used to update and maintain the building. To have a better managed building at a lower cost should positively affect our property values.
This is a topic that continues to generate controversy and a number of concerns were addressed in this letter.
On cost, I would like to break down the figures provided to make it clear that hiring a professional management company looks like we save money. If this breakdown is not correct, I expect someone to speak up and let me know.
If the ECA goes with Legum & Norman, reported to be the "most experienced firm" interviewed by the ECA Board, the cost would be $90,000. I assume this means per year. However, since the firm would assume responsibility for our present financial department which currently costs us $51,000 per year, the $90,000 would be reduced by that cost.
$90,000 cost of Legum & Norman professional management services
-51,000 savings on financial management
________
$39,000
Subsequent to this estimate for a professional management company, the ECA Board voted to eliminate one security/doorman shift which is a savings of $50,000. One assumes that the issue of security will be better managed under a professional management company.
IF the ECA will potentially realize savings in the areas of financial and security management that would be:
$51,000 Financial management
+50,000 Security
________
$101,000
In the first year, there would be a one-time start up fee of $28,000 from the management company.
Year 1
$101,000 Realized Savings
- 90,000 Management fee
- 28,000 One time start up fee
________
[$ 17,000] Cost of professional management service in the first year
Year 2
$101,000 Realized Savings
- 90,000 Management fee
________
$ 11,000 Savings realized from hiring a professional management company
What this means is that the one-time start up fee, would be recovered in less than 2 1/2 years.
While this number crunching does not take into account all the details of what services would be covered, it does give a reasonable expectation that hiring a professional management company should not only streamline and update our management services but it should indeed give us a cost savings.
This financial information, when taken into account with other points that were clarified in Mr. Cunningham's letter, seems to indicate a sound undertaking in the best interest of our condo association and community. Here are the points that were clarified.
--If any current staff is to be retained or dismissed, the decision will be made by the ECA Board and not the professional management company.
--A hybrid management between the ECA Board & the management company is under consideration.
--The contract with the professional management company would be signed with the understanding if the company fails to provide what is needed, then the contract could be terminate.
This approach helps save financial resources which can be used to update and maintain the building. To have a better managed building at a lower cost should positively affect our property values.
Wednesday, February 18, 2009
Summary of February 2009 Elizabeth Condo Board Meeting
The February meeting of Elizabeth Condo Board highlighted such items as the annual audit, the energy audit, financial issues, security services, house rules, and the contract with Phyllis Hartman related to the building refurbishment. Here is a thumbnail list of what took place.
While the December Board meeting minutes were approved unanimously (they have been posted to this blog), Jeffery Axelrad took exception to the minutes of the special January meeting of the ECA Board that were prepared by Monique Fridell in the lieu of Judy Gann, the ECA Board secretary. See his statement and the January minutes, which are posted separately.
President Woody Cunningham stated that the annual audit would be completed in the next two weeks. From the floor, Pam Dillon (a former Board president criticized the Board that annual audit had not been done on schedule and by the requirements of law because she said providing the audit so late in the cycle means a useless report.)
The preliminary energy audit was delivered and was schedule for review by the energy committee February 12. No details of the report were offered in this board meeting.
Among the items reported by treasurer Monique Fridell was that delinquencies doubled in January and February and some cases may have to go to our legal council. (I understand this to be non-payment of condo fees.)
Two committees are being formed to work with Phyllis Hartman on the building refurbishment. One committee will be board members and the other formed from people who worked on the committee in the past. First step is to get the contract signed.
New issues about security services arose with a request from our in-house manager for an additional security guard on the weekend. No action was taken until more information is collected.
House Rules -- 12 sets of comments were received and some were incorporated into the new house rules. One issue involving noise concerned allowing live music in the party room.
Look for an offer to get your heat & a/c ducts cleaned. There will be a price break if enough residents purchase this service. Info will be distributed soon.
Decision to procure a new emergency generator was tabled to collect additional bids.
Some important upcoming dates are March—Nominating Committee meeting, April—Meet the Candidates night, May—Annual Meeting. Also in February, there will be a seminar on reverse mortgages.
Comments from the floor included concerns about replacing windows and doors because our windows conduct heat and cold but new windows with thermal break technology would not. Uniformly updating windows now will give the ECA price break advantages and will increase the value of our property as well as make a significant energy savings. A call for public display showing a map of how the refurbishment will proceed was made. Request made to ensure the audit report is delivered in October of every year. Request to limit live music in the party room to avoid bothering residents who live near and above the party room. Request made to have a referendum on hiring an outside management company. Cautioned stated about ensuring that the reverse mortgage seminar is not a commercially pitched event but just informational.
While the December Board meeting minutes were approved unanimously (they have been posted to this blog), Jeffery Axelrad took exception to the minutes of the special January meeting of the ECA Board that were prepared by Monique Fridell in the lieu of Judy Gann, the ECA Board secretary. See his statement and the January minutes, which are posted separately.
President Woody Cunningham stated that the annual audit would be completed in the next two weeks. From the floor, Pam Dillon (a former Board president criticized the Board that annual audit had not been done on schedule and by the requirements of law because she said providing the audit so late in the cycle means a useless report.)
The preliminary energy audit was delivered and was schedule for review by the energy committee February 12. No details of the report were offered in this board meeting.
Among the items reported by treasurer Monique Fridell was that delinquencies doubled in January and February and some cases may have to go to our legal council. (I understand this to be non-payment of condo fees.)
Two committees are being formed to work with Phyllis Hartman on the building refurbishment. One committee will be board members and the other formed from people who worked on the committee in the past. First step is to get the contract signed.
New issues about security services arose with a request from our in-house manager for an additional security guard on the weekend. No action was taken until more information is collected.
House Rules -- 12 sets of comments were received and some were incorporated into the new house rules. One issue involving noise concerned allowing live music in the party room.
Look for an offer to get your heat & a/c ducts cleaned. There will be a price break if enough residents purchase this service. Info will be distributed soon.
Decision to procure a new emergency generator was tabled to collect additional bids.
Some important upcoming dates are March—Nominating Committee meeting, April—Meet the Candidates night, May—Annual Meeting. Also in February, there will be a seminar on reverse mortgages.
Comments from the floor included concerns about replacing windows and doors because our windows conduct heat and cold but new windows with thermal break technology would not. Uniformly updating windows now will give the ECA price break advantages and will increase the value of our property as well as make a significant energy savings. A call for public display showing a map of how the refurbishment will proceed was made. Request made to ensure the audit report is delivered in October of every year. Request to limit live music in the party room to avoid bothering residents who live near and above the party room. Request made to have a referendum on hiring an outside management company. Cautioned stated about ensuring that the reverse mortgage seminar is not a commercially pitched event but just informational.