The August meeting was not a regularly scheduled event because normally the Board takes a month off during this period. However, the treasurer Monique Fridell requested this meeting to address financial issues in this transition period to Legum & Norman management. Highlighted in the August meeting of the Elizabeth Condo Board were: : financial issues particularly related to the refurbishment; the pipe replacement contract; and appointment of committee to address the issue of irresponsible dog-owners and dogs in the building.
Present at the meeting besides all the Board members were the following Legum & Norman representatives:
John Rhodes, Executive Vice President
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
Mike Horan, Site Manager
The ECA treasurer expressed disappointment in the service from Legum and Norman relative to the way ECA investments are handled. Apparently while other condominiums use a brokerage firm like Merrill Lynch, our money for the reserve fund is managed manually to the degree that a person has to go to a specific bank to meet some requirement. John Rhodes said he would work with our treasurer and the Board to make sure things go more smoothly.
The treasurer also explained that some of the financial reports she expected to have for the August meeting were not ready.
Legum and Norman has gotten involved with the pipe replacement project and contract. L&N along with one of their engineers has met with the Heath Company to discuss a plan for replacement. They expect to have the work completed by early January 2010 to allow the Hartman Design Group to move forward with renovations on the first floor of the building. Also it should be noted here that ECA president Woody Cunningham said that he uses a “run-to-failure” plan for replacement of things in the building, but this is tempered by many factors including how critical it is for some element of our physical plant to always be working. Cunningham’s approach is tempered by the wish to spread out costs over time but not to put the well being of the ECA community at risk.
A long discussion took place regarding the 5-year plan and how condo fees would rise to replenish the reserve fund. The discussion had no decision points but seemed to be associated with long-term planning including a new budget for completion of building refurbishment. As it stands the current $1.2 million budget for refurbishment will only address areas of the lobby level. As it stands, the current $1.2 million budget for refurbishment will cover areas of the lobby level but not include the party room or washrooms.
Work in the garage has ceased at this time though there are still some remaining items to be attended to. However, nothing in the pending garage repairs is critical at this time to the safety and well being of the building and its residents.
Board member Charles Bressler has met with landscape architect and is waiting for a proposal. (The maintenance contract has already been signed with a different company than the one the ECA used for the last year.)
From the management report, it was noted that some unknown resident contacted the Montgomery County Fire Marshall concerning the lack of fire horns in the arcade area. The Fire Marshall has given the Elizabeth 30 days to initiate review with contractors to address this problem.
ECA president in response to new complaints about a dog having an accident in an elevator that was not cleaned up, has appointed a committee to make recommendations. That committee includes Karren Alenier, Tobi Esler, and Helen Soderberg.
Window cleaning was approved and will begin with screen removal assistance from the ECA staff August 24. Sign up at the front desk if you need help removing screens.
Saturday, August 15, 2009
Wednesday, August 12, 2009
July 2009 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting July 21, 2009
Board Present:
Woody Cunningham ....................President
Alexandria Kielty .........................Vice President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Jeffrey Axelrad ............................Secretary
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present:
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Site Manager, Legum & Norman
Aisha Gardner .........Resident Services Coordinator, Community
................................Management, Legum & Norman
Martha Morris .........Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:35 pm.
Approval of Minutes
MOTION Ms. Kielty moved to approve the minutes of the July 9, 2009 and July 16,
2009 meetings as presented. Ms. Fridell seconded the motion. The vote to
approve was unanimous.
President’s Report
• The Elizabeth has received a refund from the State of Maryland for $89,000 in overpayment of sales tax on PEPCO electricity bills. The eligibility for the refund was based on information received from Legum and Norman, and Ms. Robinson and Ms. Farrell worked diligently to effect a successful outcome. The President said that he wanted the $89,000 to be applied to ECA’s Reserves.
• Ms. Farrell and Mr. Polite will be leaving The Elizabeth at the end of the month. He encouraged Board members and residents to express their gratitude to them personally for their work over the years. He added that the entire staff has been extremely cooperative during the transition. Ms. Robinson will stay through August to help with audit preparation.
• The President is hoping that a Board meeting in August will not be necessary, as has been past practice.
• Under the new agreement with Legum and Norman, meetings should not exceed three hours, as the Community Manager’s time after that will be billed by the hour.
Treasurer’s Report
• Ms. Fridell reported that effective July 1, Legum & Norman had taken over bill paying, financial management and accounting. The lockbox address was changed and there will be no late fees imposed for July in light of the transition. She reiterated that Ms. Robinson has been diligent in effecting a smooth transition, offering to stay on through August 31 to help with the FY2009 audit.
• As of 6/30 ECA had $2.6 MM in cash and investments, 4% higher YOY. ECA had $2.1 million in reserves, 8% higher balances YOY.
• For the month of June ECA posted a loss of $48K. Total expenses were 23% over budget.
• Ms. Fridell reviewed the preliminary unaudited FY 2009 financial results. There was a $40,000 operating loss for the year; total expenses were 4.9% higher than last year’s notwithstanding management’s excellent cost control in administrative expenses. Utilities were 7% higher than last year and repairs and maintenance were over budget. $535,000 was transferred to Replacement Reserves, and $385,000 in Reserves was spent, principally on fire alarm installation, and garage repairs.
• Mr. Cunningham complimented the Energy Conservation Committee for their recommendations and noted that while some of the recommendations have been implemented, costs continue to rise. Ms. Fridell executed a new fixed price contract for Natural Gas which will reduce costs to $.15-$.20 per therm.
Old Business
• Mr. Cunningham asked Mr. Algner to make a brief report. Mr. Algner reported that he toured the property with the engineer. He complimented the engineering staff for their conscientiousness and concern. He said the equipment appeared to be in good repair and that the spaces were neat and orderly. He also complimented the Board for commissioning a Reserve Study, which should be done every 5-7 years. He will go into more detail about the report at a later time.
• Mr. Cunningham reported that the emergency generator has been ordered. An agreement with the elevator company has been reached to have the proper switches set up. Currently he is negotiating with the company regarding the required construction.
• A small amount of garage repair work still remains. Mr. Cunningham is working with the contractor to obtain a favorable price without a setup fee; if this cannot be arranged, the work will be deferred until next year.
Committee Reports
Energy Conservation – Joan Rosenbach
• Ms. Rosenbach noted that the residents are doing a great job at conserving, with utility usage down about 10 percent from last year.
• Four items in her report:
• Windows – American Renovators is recommending replacement; the committee is researching options. Thanked Mr. Horan for joining the July 8th committee meeting.
• McQuay heating and cooling units – also nearing end of life expectancy. Committee is exploring options for them. Residents were reminded to submit work orders for any problems with McQuay units or thermostats.
• American Renovators recommends engaging architect/consultant to conduct a more in-depth energy audit. Mr. Horan will obtain names of potential contractors.
• Finally, the committee suggests that a supply of CFL bulbs be kept on hand for residents to purchase at an attractive price.
• Ms. Rosenbach asked about the status of the light fixture replacement in the garage and stairwells, which the Board had approved in concept. Mr. Horan responded that he will obtain three bids. The Board may then vote on a contractor by email.
Mr. Cunningham added that the work on the Structural Preservation of the Garage, Roof and the Tier 06 leak is complete.
Exercise Committee – Alexandria Kielty
Ms. Kielty thanked Mr. Jim Jones for compiling the results of the resident survey and stated that the committee will have an open meeting to discuss the results as soon as they are available.
Refurbishing Committee – Judith Barth
Ms. Barth reported that the committee has approved a plan that includes all lobby areas and the first floor and excludes the pool and exercise room.
Ms. Fridell had asked if the committee could look into the possibility of the building receiving LEED (Leadership in Energy and Environmental Design) certification as part of the renovation. Ms. Barth reported that Ms. Hartman responded that it would be extremely difficult and expensive for The Elizabeth to receive such certification, as all the mechanical systems would have to be replaced, but she did suggest that the renovations could incorporate “greening” wherever possible. Ms. Barth added that, if we went for a LEED certificate, Ms. Hartman said it would require a whole new approach and we would have to bring a consultant on board for additional $50-60,000 taking us over budget. Ms Hartman estimated an additional 25% cost to the total cost of the refurbishment; Leed is very complex and would require new mechanical systems as well which would delay the refurbishment project even more. Ms Hartman recommends that we go about our renovation in the "spirit of greening" the Elizabeth. Ms. Hartman said the project will incorporate energy-efficient products where possible and good air-quality products. Mr. Algner agreed with this direction. Mr. Cunningham added that the Board needs to have a long-range vision with energy-efficient goals.
Ms. Barth stated that if the Board approves moving forward with the project before August 1, the renovations could begin in January 2010 and it would take about six months to complete.
Mr. Cunningham added that a memo was sent out last week to the residents about a new law regarding condominium homeowners’ insurance and that he has arranged for the Association’s insurance agent to address the residents on this topic on July 30 at 7:00 pm.
Security Committee – Dr. Alfred Muller
Dr. Muller reported that Mr. Horan has offered to speak with the guards to ensure a uniform and sharp appearance. He is reviewing the Legum & Norman contract, especially the section on security. He reiterated that L&N will review the present security situation and will provide the Board with a written report with any recommendations for change.
Social Committee – Judith Barth
Ms. Barth reported that there had been 10 social events this year, six of which were free to attend and four of which had a nominal charge. The committee would like to repeat the “box party” on December 6, where residents can bring items to be donated to So Others Might Eat charity.
Discussion Items – Contracts
Courtesy Patrol – Dr. Muller reviewed the history of the contract and led a discussion on the number and hours of the shifts and responsibilities of the guards.
MOTION Mr. Axelrad moved to adopt the proposal from Securitas for Courtesy Patrol services as stated but reduce the two 8 hour shifts to one (11pm-7am shift), with the understanding that the contract can be modified with 30 days notice. Dr. Muller seconded the motion. The vote to approve was unanimous.
Ms. Kielty asked that management track the results of this contract change and report back to the Board.
Aqua Fit Swimming Pool Contract – Ms. Kielty reported that she had received a few letters expressing that they used the pool and very much wanted the contractor to be renewed. At the same time, there had been some complaints about the service last year and suggested that management can help monitor the maintenance of the pool area. It was suggested that this contract should be bid out next year, with guidance from L&N.
MOTION Ms. Kielty moved to approve the contract from Aqua Fit for swimming pool services for the 2009 pool season as presented. Dr. Muller seconded the motion. The vote to approve was unanimous.
Replacement of Pipes in West Lobby – Mr. Cunningham led a discussion about the need to replace the horizontal pipes on the first floor. A bid was received from Heath Corporation in 2006 but the decision was deferred. Heath has made a new proposal with little increase in price. Mr. Cunningham recommended approval of the proposal, noting that there is $500,000 in reserves set aside for this project. This work needs to be completed before the refurbishing can begin.
There was discussion about the second part of the proposal, which is for the first floor at a cost of $198,608. It was not clear exactly what locations the contract was addressing. Mr. Cunningham said that he will check with the company and if the area is not in the front lobby, he will defer the vote until the next meeting. Mr. Axelrad complained that he had not seen the proposals and the information supplied at the meeting was inadequate to determine what the proposed contract entails.
MOTION Ms. Kielty moved to approve both parts of the proposals from Heath Corporation to repair the horizontal piping in the west lobby at a cost of $498,850 and $198,608 for the “storefront” lobby. Ms. Barth seconded the motion. The vote to approve was unanimous.
Façade Refacing – Mr. Cunningham referred the Board members to a spread sheet comparing four bids. Mr. Cunningham recommended C.A. Lindman as the contractor for this project.
MOTION Mr. Cunningham moved to approve the proposal from C.A. Lindman for façade refacing at a cost of $65,400. Dr. Muller seconded the motion. The vote to approve was unanimous.
Reburbishing – Ms. Barth asked that the Board approve moving forward with Hartman Design firm for the reburbishment of the first floor as a priority. The firm needs Board approval so that it can proceed to prepare RFPs from contractors.
MOTION Mr. Cunningham made a motion to move forward with the Hartman Design firm on the refurbishment of the first floor as a priority. Dr. Muller seconded the motion. [Discussion.] The motion carried, with six votes in favor, Mr. Axelrad abstaining.
Mr. Axelrad stated that he could not vote for the motion as it did not contain the $1.2 million cost cap that the Board, except for Mr. Bressler, who was not on the Board at that time, had represented would be the cap on these costs. Mr. Axelrad made the points that the option selected was the best option but that Board members were equivocating on whether they would adhere to their prior representation to residents. Mr Axelrad also commented that last year during early meetings considering renovations that he favored spending more than $1.2 million but a compromise was reached under which the Board represented that it would spend no more than $1.2 million under its first contractual arrangement for renovation and therefore urged Board Members to oppose the motion. Dr. Muller said that the current motion does not deal with cost. Mr. Axelrad said that, on that basis, he would abstain.
Landscaping Contract – Mr. Bressler received three bids for landscaping services and recommends Valley Crest. He was impressed with the company’s ability to create photos of various plantings as they would appear on The Elizabeth grounds.
MOTION Mr. Bressler moved to approve the contract from Valley Crest Landscapers at a cost of $16,428. Dr. Muller seconded the motion. The vote was five in favor, two against (Barth, Fridell). The motion carried.
Ms. Fridell expressed concern that this contract was for maintenance only and she recommended that The Elizabeth engage the services of a landscape designer.
Five-Year Plan – After adding $200,000 to the existing $500,000 already in the Plan for the horizontal piping project, Ms. Fridell asked the Board to approve the five-year plan of Replacement Reserves for the 2010 budget year. This plan projects the capital expenditures planned for the next five years and is included in ECA’s audited financial statements. She said that this schedule is important as a planning tool and as information for current and potential residents. She said that the plan is updated each year.
MOTION Dr. Muller moved to approve the five-year reserve plan as illustrated, with increases in the contributions to reserves as follows: 2011 5%, 2012 5%, 2013 3%, 2014 3%. Ms. Barth seconded the motion. [Discussion.] The vote was two in favor (Cunningham, Muller), five against (Axelrad, Barth, Bressler, Fridell, Kielty). The motion failed.
MOTION Ms. Kielty moved to approve a five-year reserve plan with the following increases in contributions to reserves: 2011 10%, 2012 7%, 2013 7%, 2014 7%. There was no second.
MOTION Ms. Fridell moved to defer the vote on the five-year reserve plan as Board members could not see in real time the financial effect of the percentage increases they were proposing. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
The Board discussed the possibility of securing a line of credit to provide flexibility in financing for upcoming reserve projects. Ms. Fridell said that she had already explored this possibility over one year ago and had received a term sheet from Chevy Chase Bank; she explained the likely proposed terms, collateral, and associated fees to the Board.
MOTION Dr. Muller moved to authorize Ms. Fridell to explore securing a bank line of credit not to exceed one million dollars. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
Residents’ Comments
• A resident urged the Board to engage the services of a landscape designer. She also reported that there has been no one at the front desk on several early-morning occasions.
• A resident reviewed landscaping history. There had been a design at one time and it was being executed, but it recently became stalled. She applauded the Board for moving forward on the refurbishing project.
• A resident reported that in the course of remodeling, some owners allegedly are removing parts of their ceilings, which contain asbestos, which the resident feared was a hazard. Mr. Cunningham observed that, without owners’ intervention, the ceilings’ encapsulate any asbestos in a way preventing hazardous loose asbestos.
• A resident asked for clarification on the cost of the refurbishing. Mr. Cunningham responded that during the discussions, it was clearly stated that there was $1.2 million in reserves for this project but that it was known that that amount would not be enough for the entire project. Ms. Barth added that the committee received a ballpark estimate of $2.2 million for the entire project.
• A resident asked for clarification of the first floor plans.
• A resident expressed dissatisfaction that he received from L&N a coupon book for his condominium fee assessment payments even though he had elected to be on direct debit and felt this was a waste of money. He asked for an accounting of the cost of the mailing.
• Mr. Cunningham gave a resident permission to have the L&N contract copied at her expense.
• A resident asked that the next fire inspection include a review of the need for fire horns in the arcade. Also asked if the pet policy could be revisited.
• A resident complained that dogs are having accidents in the elevators.
• A resident asked if L&N deals with pet issues in other buildings.
Next Meeting
MOTION Ms. Fridell moved to hold a Board of Directors meeting in August to finalize the five-year plan and to monitor the on-going financial and operational transition being implemented with L&N. Mr. Bressler seconded the motion. The vote was two in favor (Bressler, Fridell), four against (Barth, Cunningham, Kielty, Muller), one abstention (Axelrad). The motion failed.
MOTION Dr. Muller moved to have a public workshop to discuss this issue. There was no second.
Additional comments were entertained from owners and residents in attendance.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at circa 10:45 pm.
Martha Morris prepared the initial draft of these minutes.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting July 21, 2009
Board Present:
Woody Cunningham ....................President
Alexandria Kielty .........................Vice President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Jeffrey Axelrad ............................Secretary
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present:
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Site Manager, Legum & Norman
Aisha Gardner .........Resident Services Coordinator, Community
................................Management, Legum & Norman
Martha Morris .........Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:35 pm.
Approval of Minutes
MOTION Ms. Kielty moved to approve the minutes of the July 9, 2009 and July 16,
2009 meetings as presented. Ms. Fridell seconded the motion. The vote to
approve was unanimous.
President’s Report
• The Elizabeth has received a refund from the State of Maryland for $89,000 in overpayment of sales tax on PEPCO electricity bills. The eligibility for the refund was based on information received from Legum and Norman, and Ms. Robinson and Ms. Farrell worked diligently to effect a successful outcome. The President said that he wanted the $89,000 to be applied to ECA’s Reserves.
• Ms. Farrell and Mr. Polite will be leaving The Elizabeth at the end of the month. He encouraged Board members and residents to express their gratitude to them personally for their work over the years. He added that the entire staff has been extremely cooperative during the transition. Ms. Robinson will stay through August to help with audit preparation.
• The President is hoping that a Board meeting in August will not be necessary, as has been past practice.
• Under the new agreement with Legum and Norman, meetings should not exceed three hours, as the Community Manager’s time after that will be billed by the hour.
Treasurer’s Report
• Ms. Fridell reported that effective July 1, Legum & Norman had taken over bill paying, financial management and accounting. The lockbox address was changed and there will be no late fees imposed for July in light of the transition. She reiterated that Ms. Robinson has been diligent in effecting a smooth transition, offering to stay on through August 31 to help with the FY2009 audit.
• As of 6/30 ECA had $2.6 MM in cash and investments, 4% higher YOY. ECA had $2.1 million in reserves, 8% higher balances YOY.
• For the month of June ECA posted a loss of $48K. Total expenses were 23% over budget.
• Ms. Fridell reviewed the preliminary unaudited FY 2009 financial results. There was a $40,000 operating loss for the year; total expenses were 4.9% higher than last year’s notwithstanding management’s excellent cost control in administrative expenses. Utilities were 7% higher than last year and repairs and maintenance were over budget. $535,000 was transferred to Replacement Reserves, and $385,000 in Reserves was spent, principally on fire alarm installation, and garage repairs.
• Mr. Cunningham complimented the Energy Conservation Committee for their recommendations and noted that while some of the recommendations have been implemented, costs continue to rise. Ms. Fridell executed a new fixed price contract for Natural Gas which will reduce costs to $.15-$.20 per therm.
Old Business
• Mr. Cunningham asked Mr. Algner to make a brief report. Mr. Algner reported that he toured the property with the engineer. He complimented the engineering staff for their conscientiousness and concern. He said the equipment appeared to be in good repair and that the spaces were neat and orderly. He also complimented the Board for commissioning a Reserve Study, which should be done every 5-7 years. He will go into more detail about the report at a later time.
• Mr. Cunningham reported that the emergency generator has been ordered. An agreement with the elevator company has been reached to have the proper switches set up. Currently he is negotiating with the company regarding the required construction.
• A small amount of garage repair work still remains. Mr. Cunningham is working with the contractor to obtain a favorable price without a setup fee; if this cannot be arranged, the work will be deferred until next year.
Committee Reports
Energy Conservation – Joan Rosenbach
• Ms. Rosenbach noted that the residents are doing a great job at conserving, with utility usage down about 10 percent from last year.
• Four items in her report:
• Windows – American Renovators is recommending replacement; the committee is researching options. Thanked Mr. Horan for joining the July 8th committee meeting.
• McQuay heating and cooling units – also nearing end of life expectancy. Committee is exploring options for them. Residents were reminded to submit work orders for any problems with McQuay units or thermostats.
• American Renovators recommends engaging architect/consultant to conduct a more in-depth energy audit. Mr. Horan will obtain names of potential contractors.
• Finally, the committee suggests that a supply of CFL bulbs be kept on hand for residents to purchase at an attractive price.
• Ms. Rosenbach asked about the status of the light fixture replacement in the garage and stairwells, which the Board had approved in concept. Mr. Horan responded that he will obtain three bids. The Board may then vote on a contractor by email.
Mr. Cunningham added that the work on the Structural Preservation of the Garage, Roof and the Tier 06 leak is complete.
Exercise Committee – Alexandria Kielty
Ms. Kielty thanked Mr. Jim Jones for compiling the results of the resident survey and stated that the committee will have an open meeting to discuss the results as soon as they are available.
Refurbishing Committee – Judith Barth
Ms. Barth reported that the committee has approved a plan that includes all lobby areas and the first floor and excludes the pool and exercise room.
Ms. Fridell had asked if the committee could look into the possibility of the building receiving LEED (Leadership in Energy and Environmental Design) certification as part of the renovation. Ms. Barth reported that Ms. Hartman responded that it would be extremely difficult and expensive for The Elizabeth to receive such certification, as all the mechanical systems would have to be replaced, but she did suggest that the renovations could incorporate “greening” wherever possible. Ms. Barth added that, if we went for a LEED certificate, Ms. Hartman said it would require a whole new approach and we would have to bring a consultant on board for additional $50-60,000 taking us over budget. Ms Hartman estimated an additional 25% cost to the total cost of the refurbishment; Leed is very complex and would require new mechanical systems as well which would delay the refurbishment project even more. Ms Hartman recommends that we go about our renovation in the "spirit of greening" the Elizabeth. Ms. Hartman said the project will incorporate energy-efficient products where possible and good air-quality products. Mr. Algner agreed with this direction. Mr. Cunningham added that the Board needs to have a long-range vision with energy-efficient goals.
Ms. Barth stated that if the Board approves moving forward with the project before August 1, the renovations could begin in January 2010 and it would take about six months to complete.
Mr. Cunningham added that a memo was sent out last week to the residents about a new law regarding condominium homeowners’ insurance and that he has arranged for the Association’s insurance agent to address the residents on this topic on July 30 at 7:00 pm.
Security Committee – Dr. Alfred Muller
Dr. Muller reported that Mr. Horan has offered to speak with the guards to ensure a uniform and sharp appearance. He is reviewing the Legum & Norman contract, especially the section on security. He reiterated that L&N will review the present security situation and will provide the Board with a written report with any recommendations for change.
Social Committee – Judith Barth
Ms. Barth reported that there had been 10 social events this year, six of which were free to attend and four of which had a nominal charge. The committee would like to repeat the “box party” on December 6, where residents can bring items to be donated to So Others Might Eat charity.
Discussion Items – Contracts
Courtesy Patrol – Dr. Muller reviewed the history of the contract and led a discussion on the number and hours of the shifts and responsibilities of the guards.
MOTION Mr. Axelrad moved to adopt the proposal from Securitas for Courtesy Patrol services as stated but reduce the two 8 hour shifts to one (11pm-7am shift), with the understanding that the contract can be modified with 30 days notice. Dr. Muller seconded the motion. The vote to approve was unanimous.
Ms. Kielty asked that management track the results of this contract change and report back to the Board.
Aqua Fit Swimming Pool Contract – Ms. Kielty reported that she had received a few letters expressing that they used the pool and very much wanted the contractor to be renewed. At the same time, there had been some complaints about the service last year and suggested that management can help monitor the maintenance of the pool area. It was suggested that this contract should be bid out next year, with guidance from L&N.
MOTION Ms. Kielty moved to approve the contract from Aqua Fit for swimming pool services for the 2009 pool season as presented. Dr. Muller seconded the motion. The vote to approve was unanimous.
Replacement of Pipes in West Lobby – Mr. Cunningham led a discussion about the need to replace the horizontal pipes on the first floor. A bid was received from Heath Corporation in 2006 but the decision was deferred. Heath has made a new proposal with little increase in price. Mr. Cunningham recommended approval of the proposal, noting that there is $500,000 in reserves set aside for this project. This work needs to be completed before the refurbishing can begin.
There was discussion about the second part of the proposal, which is for the first floor at a cost of $198,608. It was not clear exactly what locations the contract was addressing. Mr. Cunningham said that he will check with the company and if the area is not in the front lobby, he will defer the vote until the next meeting. Mr. Axelrad complained that he had not seen the proposals and the information supplied at the meeting was inadequate to determine what the proposed contract entails.
MOTION Ms. Kielty moved to approve both parts of the proposals from Heath Corporation to repair the horizontal piping in the west lobby at a cost of $498,850 and $198,608 for the “storefront” lobby. Ms. Barth seconded the motion. The vote to approve was unanimous.
Façade Refacing – Mr. Cunningham referred the Board members to a spread sheet comparing four bids. Mr. Cunningham recommended C.A. Lindman as the contractor for this project.
MOTION Mr. Cunningham moved to approve the proposal from C.A. Lindman for façade refacing at a cost of $65,400. Dr. Muller seconded the motion. The vote to approve was unanimous.
Reburbishing – Ms. Barth asked that the Board approve moving forward with Hartman Design firm for the reburbishment of the first floor as a priority. The firm needs Board approval so that it can proceed to prepare RFPs from contractors.
MOTION Mr. Cunningham made a motion to move forward with the Hartman Design firm on the refurbishment of the first floor as a priority. Dr. Muller seconded the motion. [Discussion.] The motion carried, with six votes in favor, Mr. Axelrad abstaining.
Mr. Axelrad stated that he could not vote for the motion as it did not contain the $1.2 million cost cap that the Board, except for Mr. Bressler, who was not on the Board at that time, had represented would be the cap on these costs. Mr. Axelrad made the points that the option selected was the best option but that Board members were equivocating on whether they would adhere to their prior representation to residents. Mr Axelrad also commented that last year during early meetings considering renovations that he favored spending more than $1.2 million but a compromise was reached under which the Board represented that it would spend no more than $1.2 million under its first contractual arrangement for renovation and therefore urged Board Members to oppose the motion. Dr. Muller said that the current motion does not deal with cost. Mr. Axelrad said that, on that basis, he would abstain.
Landscaping Contract – Mr. Bressler received three bids for landscaping services and recommends Valley Crest. He was impressed with the company’s ability to create photos of various plantings as they would appear on The Elizabeth grounds.
MOTION Mr. Bressler moved to approve the contract from Valley Crest Landscapers at a cost of $16,428. Dr. Muller seconded the motion. The vote was five in favor, two against (Barth, Fridell). The motion carried.
Ms. Fridell expressed concern that this contract was for maintenance only and she recommended that The Elizabeth engage the services of a landscape designer.
Five-Year Plan – After adding $200,000 to the existing $500,000 already in the Plan for the horizontal piping project, Ms. Fridell asked the Board to approve the five-year plan of Replacement Reserves for the 2010 budget year. This plan projects the capital expenditures planned for the next five years and is included in ECA’s audited financial statements. She said that this schedule is important as a planning tool and as information for current and potential residents. She said that the plan is updated each year.
MOTION Dr. Muller moved to approve the five-year reserve plan as illustrated, with increases in the contributions to reserves as follows: 2011 5%, 2012 5%, 2013 3%, 2014 3%. Ms. Barth seconded the motion. [Discussion.] The vote was two in favor (Cunningham, Muller), five against (Axelrad, Barth, Bressler, Fridell, Kielty). The motion failed.
MOTION Ms. Kielty moved to approve a five-year reserve plan with the following increases in contributions to reserves: 2011 10%, 2012 7%, 2013 7%, 2014 7%. There was no second.
MOTION Ms. Fridell moved to defer the vote on the five-year reserve plan as Board members could not see in real time the financial effect of the percentage increases they were proposing. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
The Board discussed the possibility of securing a line of credit to provide flexibility in financing for upcoming reserve projects. Ms. Fridell said that she had already explored this possibility over one year ago and had received a term sheet from Chevy Chase Bank; she explained the likely proposed terms, collateral, and associated fees to the Board.
MOTION Dr. Muller moved to authorize Ms. Fridell to explore securing a bank line of credit not to exceed one million dollars. Mr. Axelrad seconded the motion. The vote to approve was unanimous.
Residents’ Comments
• A resident urged the Board to engage the services of a landscape designer. She also reported that there has been no one at the front desk on several early-morning occasions.
• A resident reviewed landscaping history. There had been a design at one time and it was being executed, but it recently became stalled. She applauded the Board for moving forward on the refurbishing project.
• A resident reported that in the course of remodeling, some owners allegedly are removing parts of their ceilings, which contain asbestos, which the resident feared was a hazard. Mr. Cunningham observed that, without owners’ intervention, the ceilings’ encapsulate any asbestos in a way preventing hazardous loose asbestos.
• A resident asked for clarification on the cost of the refurbishing. Mr. Cunningham responded that during the discussions, it was clearly stated that there was $1.2 million in reserves for this project but that it was known that that amount would not be enough for the entire project. Ms. Barth added that the committee received a ballpark estimate of $2.2 million for the entire project.
• A resident asked for clarification of the first floor plans.
• A resident expressed dissatisfaction that he received from L&N a coupon book for his condominium fee assessment payments even though he had elected to be on direct debit and felt this was a waste of money. He asked for an accounting of the cost of the mailing.
• Mr. Cunningham gave a resident permission to have the L&N contract copied at her expense.
• A resident asked that the next fire inspection include a review of the need for fire horns in the arcade. Also asked if the pet policy could be revisited.
• A resident complained that dogs are having accidents in the elevators.
• A resident asked if L&N deals with pet issues in other buildings.
Next Meeting
MOTION Ms. Fridell moved to hold a Board of Directors meeting in August to finalize the five-year plan and to monitor the on-going financial and operational transition being implemented with L&N. Mr. Bressler seconded the motion. The vote was two in favor (Bressler, Fridell), four against (Barth, Cunningham, Kielty, Muller), one abstention (Axelrad). The motion failed.
MOTION Dr. Muller moved to have a public workshop to discuss this issue. There was no second.
Additional comments were entertained from owners and residents in attendance.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at circa 10:45 pm.
Martha Morris prepared the initial draft of these minutes.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Monday, August 3, 2009
Summary of July 2009 Elizabeth Condo Board Meeting
Highlighted in the June meeting of the Elizabeth Condo Board were: replacement of horizontal pipes (about $700,000), refurbishment of the lobby level after pipe replacement, continuing transition to management by Legum & Norman,
1. Board President, Woody Cunningham, announced that we received the $89,000 refund from Maryland for overpayment of utilities sales tax. This savings is to be attributed to the fine advice provided by Legum & Norman during negotiations.
2. The last day for Carolyn Farrell and Ed Polite was August 1. Diane Robinson will stay on through August to help with the audit.
3. The Board has saved $18,000 so far this year on legal fees because we no longer pay our lawyer to attend all of our Board meetings.
4. Board meetings will be limited to three hours total, including the time spent in Executive Session.
5. Replacement of garage membrane has ceased. A small amount of work remains to be done in the garage.
6. We just negotiated a natural gas contract which we expect will save us considerable money next year.
7. The Energy Committee Chair, Joan Rosenbach, reported on the audit by American Renovators. She said that our windows and balcony doors are at the end of their useful life and the Committee is looking into options for their replacement. She expects to furnish this information to the Board as soon as possible. Additionally, she reported that American Renovators suggested that we employ an Architect/Engineer (A/E) firm to conduct an in depth audit and provide us with more information.
8. Judi Barth reported on the Refurbishment Committee. She said the plan is to do the lobby, excluding the pool an Exercise Room. With regard to greening of the building, Judi reported that Phyllis Hartman said that it would be very difficult to certify the Elizabeth due to the state of our mechanical systems. Ms. Hartman’s experience is that it is a very complex undertaking to green a building and not worth the effort to try to be certified. Hartman said it would increase contract costs by 25% to get what's known as LEED certification. Instead, she recommends that we consider the spirit of greening the building, rather than really trying to green the building for the purpose of lead certification. Along those lines, she said she would use energy-efficient products as much as possible. It was also suggested that to hire a green building consultant might cost about $50,000-$60,000. The L&N Community Manager John Algner said the value of certification was certainly not worth the cost and trouble.
9. The Board approved a contract for Valley Crest to do landscape maintenance - $16,428. Monique Fridell and Judi Barth spoke in favor a contract for landscape design, but no decision was made. In the discussion period, Sharon Bobb asked that a contract be approved for landscape design, and suggested Merrifield Gardens.
10. Security – New procedures require that anyone making a delivery and locking off the elevators leave their driver’s license at the front desk until the delivery is completed and the elevators unlocked.
11. Securitas contract was approved for another year, with no increase in cost over previous year.
12. Aqua Fit contract was approved with no increase for the coming year.
13. Renovation – the board voted to give The Hartman Group the go-ahead to begin renovation on the lobby floor – excluding the Exercise Room and saunas. The amount of funds to be expended for this purpose in this fiscal year is expected to be the budgeted $1.2 million.
14. The Board approved the proposal to replace the horizontal pipes in the West Lobby, which is necessary prior to any renovation. This problem has been recognized for some time, was deferred in 2006, and regardless of the renovation would have to be done. The Heath Company proposal is for $498,850 plus $198,680 for the lobby area. However, work on the pipes in the G-1 garage area is being deferred.
15. Judi Barth reported on the Social Committee. She said that there were 10 social events this year, of which six were at no cost to the residents, and four were at a modest cost. Also, she announced that there would be a Box Party December 6 in the West Lobby, as we did last year, and the goal is to fill 350 boxes for the homeless.
16. Dogs continue to be an issue in the building. In question are irresponsible dog owners who diminish the quality of life for others at the Elizabeth.
1. Board President, Woody Cunningham, announced that we received the $89,000 refund from Maryland for overpayment of utilities sales tax. This savings is to be attributed to the fine advice provided by Legum & Norman during negotiations.
2. The last day for Carolyn Farrell and Ed Polite was August 1. Diane Robinson will stay on through August to help with the audit.
3. The Board has saved $18,000 so far this year on legal fees because we no longer pay our lawyer to attend all of our Board meetings.
4. Board meetings will be limited to three hours total, including the time spent in Executive Session.
5. Replacement of garage membrane has ceased. A small amount of work remains to be done in the garage.
6. We just negotiated a natural gas contract which we expect will save us considerable money next year.
7. The Energy Committee Chair, Joan Rosenbach, reported on the audit by American Renovators. She said that our windows and balcony doors are at the end of their useful life and the Committee is looking into options for their replacement. She expects to furnish this information to the Board as soon as possible. Additionally, she reported that American Renovators suggested that we employ an Architect/Engineer (A/E) firm to conduct an in depth audit and provide us with more information.
8. Judi Barth reported on the Refurbishment Committee. She said the plan is to do the lobby, excluding the pool an Exercise Room. With regard to greening of the building, Judi reported that Phyllis Hartman said that it would be very difficult to certify the Elizabeth due to the state of our mechanical systems. Ms. Hartman’s experience is that it is a very complex undertaking to green a building and not worth the effort to try to be certified. Hartman said it would increase contract costs by 25% to get what's known as LEED certification. Instead, she recommends that we consider the spirit of greening the building, rather than really trying to green the building for the purpose of lead certification. Along those lines, she said she would use energy-efficient products as much as possible. It was also suggested that to hire a green building consultant might cost about $50,000-$60,000. The L&N Community Manager John Algner said the value of certification was certainly not worth the cost and trouble.
9. The Board approved a contract for Valley Crest to do landscape maintenance - $16,428. Monique Fridell and Judi Barth spoke in favor a contract for landscape design, but no decision was made. In the discussion period, Sharon Bobb asked that a contract be approved for landscape design, and suggested Merrifield Gardens.
10. Security – New procedures require that anyone making a delivery and locking off the elevators leave their driver’s license at the front desk until the delivery is completed and the elevators unlocked.
11. Securitas contract was approved for another year, with no increase in cost over previous year.
12. Aqua Fit contract was approved with no increase for the coming year.
13. Renovation – the board voted to give The Hartman Group the go-ahead to begin renovation on the lobby floor – excluding the Exercise Room and saunas. The amount of funds to be expended for this purpose in this fiscal year is expected to be the budgeted $1.2 million.
14. The Board approved the proposal to replace the horizontal pipes in the West Lobby, which is necessary prior to any renovation. This problem has been recognized for some time, was deferred in 2006, and regardless of the renovation would have to be done. The Heath Company proposal is for $498,850 plus $198,680 for the lobby area. However, work on the pipes in the G-1 garage area is being deferred.
15. Judi Barth reported on the Social Committee. She said that there were 10 social events this year, of which six were at no cost to the residents, and four were at a modest cost. Also, she announced that there would be a Box Party December 6 in the West Lobby, as we did last year, and the goal is to fill 350 boxes for the homeless.
16. Dogs continue to be an issue in the building. In question are irresponsible dog owners who diminish the quality of life for others at the Elizabeth.
Thursday, July 23, 2009
June 2009 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting June 16, 2009
Board
Present: Woody Cunningham .......President (late)
Alexandria Kielty .........................Vice President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Jeffrey Axelrad ............................Secretary
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present: Carolyn Farrell ........Manager
Patty Dubuque .......Executive Vice President, Community
................................Management, Legum & Norman
John Algner ............Community Manager, Legum & Norman
Judy Brantover .......Regional Vice President, Legum & Norman
Martha Morris ........Recording Secretary
Call to Order: Ms. Fridell called the meeting to order at 7:34 pm.
Approval of Minutes
MOTION Dr. Muller moved to approve the minutes of the May 12 and May 26, 2009 Board meetings as corrected. Ms. Kielty seconded the motion.
MOTION Dr. Muller moved to amend his motion to add Ms. Bath’s written statement as an addendum to the corrected minutes. Ms. Fridell seconded the motion. The vote was 5 in favor, Mr. Axelrad opposed. The motion carried.
The Board then voted on the original motion as amended. The vote to approve was unanimous among the members present.
Ms. Fridell asked that Board members please submit their corrections to the minutes at least one week before the next meeting.
Treasurer’s Report
Ms. Fridell reported that reserves as of May 31, 2009 were $2.1 million, 13.6% higher than last year. She has shortened the terms of some investments to ensure liquidity for upcoming projects. With regard to performance versus budget, the Association’s net operating income is almost exactly on budget for the 11 months ended May 31, 2009.
Old Business
Update on leak in Unit 06 – Ms. Farrell reported that staff is working hard to ensure the leaking has stopped. Mr. Axelrad asked about another leak in Unit 214. Ms. Farrell responded that she investigated that unit with Engineer Ken Costeva and discovered the window was constructed differently from others in the building, which is probably the cause of the problem. The engineer suggests that this repair be made at that time when the next façade work is performed. The bids will be sent out soon. She added that Unit 215 will be included as well in the RFP since that unit also had a non-standard window.
Roof – In response to a question from Ms. Kielty, Ms. Farrell reported that the roof work has not been completed due to the rainy weather.
New Business – Legum & Norman
Ms. Fridell introduced Patty Dubuque of Legum & Norman, who oversees all community management functions. Ms. Dubuque introduced John Algner, who will act as Community Manager and liaison between the L&N site staff and the L&N staff in Alexandria, and Judy Brantover, who oversees properties in Maryland and Washington, DC, including the Somerset and the Carleton condominiums. Ms. Dubuque referred to the letters of introduction that had been sent to all Elizabeth owners. Owners on direct debit need to pay by check and coupon for one month (July 2009) during the transition and sign up for direct debit service with L&N by filling out the form included in the introduction packet. After July, all owners will have the option of paying by check, direct debit, or online bill-paying service. In addition, Legum & Norman has submitted to the Board the Merchant Agreement which would allow for an additional option, for owners to pay by credit card. This would cost the Association $8 per month; each owner would be charged 5% of the condo fee amount as a convenience fee. Ms. Dubuque concluded by saying that Legum & Norman is ready to begin on July 1 and that staff is looking forward to working with the Board, residents and staff of The Elizabeth.
Committee Reports
Energy Conservation – Joan Rosenbach
• Major activity has been the review and analysis of the consultants’ reports as requested by the Board: 1) Preliminary Energy Audit, conducted by American Renovators; and 2) Precision 20/20 Full Reserve Study, conducted by Reserve Advisors, Inc.
• The Energy Audit consultants addressed several key issues:
o fluorescent lighting in garage
o windows and doors
o heating and air conditioning units
o electric metering options
• Energy Audit consultants recommended two steps:
o retrofit fluorescent light fixtures in garage – major savings, fast payback
o undertake further study to address other issues before any steps are taken
• Committee recommends:
o proceed with retrofitting fluorescent fixtures in garage
o within 60-90 days retain services of consulting electrical and mechanical engineers to further study issues related to windows and doors; heating and air conditioning; and electric metering options.
Ms. Farrell noted that as soon as the current garage work is completed, she will be obtaining bids for replacement of all the long fluorescent tubes in the garage, stairwells and other areas.
Exercise Committee – Alexandria Kielty
Ms. Kielty reported that the committee met and distributed a survey to all residents for them to fill out and provide their feedback on Exercise Room usage and recommendations. Blank copies of the survey are still available at the front desk for residents to complete before the June 22 deadline.
Refurbishing Committee – Judith Barth
Ms. Barth reported that the process is going well. The committee met with Hartman Design Group on May 27 and reviewed preliminary designs, with three different color palettes for carpeting, wall coverings and fabric. The committee was very pleased with the preliminary designs. Ms Barth said that, after the meeting on May 27th with the Hartman Design Group, the committee had a meeting with the resident advisory committee which also was very pleased with the preliminary plans that were presented. The first step will be to propose options to the Board. Once Hartman has been given the go-ahead, it will be six months before the work will commence and another 6 to 7 months for the first phase to be completed. When the carpet and fabric are selected, samples will be placed on boards for presentation to the residents. Ms. Kielty added that Ms. Hartman and her firm are very professional and have extensive experience with high-rises. Ms. Fridell asked that the committee provide an estimate of timing and amount of monthly cash outlays so that she can structure the reserve investment portfolio to meet those expected payments.
Security Committee – Dr. Alfred Muller
Dr. Muller stated that Legum & Norman will review the present security situation and will provide the Board with a written report with any recommendations for change. He reported there had been a security incident in one of the units and the committee is awaiting the police report. Mr. Bressler expressed concern about the garage door which is left open by movers and other delivery vehicles entering the building.
MOTION Mr. Bressler moved to require vendors entering the building to surrender their drivers licenses at the front desk which they may retrieve when departing the building, at which time, an attendant will check to make sure the garage door is closed and the elevator unlocked. Mr. Axelrad seconded the motion. The vote to approve was unanimous among the members present.
Social Committee – Judith Barth
Ms. Barth reported that a very successful party had been held on Sunday with 107 guests in attendance. She thanked the committee and the volunteers who were tremendously helpful. A resident thanked Ms. Barth for her work as Chair of the Social Committee.
Floor Representatives Committee – Dr. Alfred Muller
Dr. Muller reported that the committee is working on preparing welcome packets which they will send to the floor representatives to distribute to new residents. Mr. Cunningham has suggested that an event be held to thank them for their efforts.
[Mr. Cunningham arrived at 8:25 pm]
Discussion Items – Contracts
Chiller – Mr. Cunningham reported on the meeting he and Ms. Farrell had today with Densel Company about the work being performed on the chiller. Densel explained that the chiller should have been examined and evaluated every five years and that it had been 10 years since it was last examined. Densel recommends replacing the bearings ($10,257), replacing the linear float ($1,777), and replenishing 250 pounds of refrigerant ($1,879). Mr. Cunningham asked the Board to ratify an amendment to the contract.
MOTION Mr. Axelrad moved to ratify an amendment to the Densel Company contract to replace the bearings and linear float and replenish refrigerant in the large chiller at a total cost of $13,913. Dr. Muller seconded the motion. The vote to approve was unanimous.
Structural Preservation Contract -- Change Order – Ms. Farrell reported that in the course of the contract work on a portion of the extended roof, it was observed that the flat roof eventually drained but there is still a puddle in the center. The electric room is directly underneath, so if a new drain is installed in the roof, this will need to be factored into the location of the drain. Mr. Cunningham recommended that management proceed with this repair, with the understanding that protecting the electric room will need to be a priority.
MOTION Mr. Bressler moved to amend the contract to allow the installation of a new drain in a portion of the lower level flat roof at a cost of $850. Ms. Barth seconded the motion. The vote to approve was unanimous.
Securitas –The cost for services will remain unchanged for this year.
Cleaning Contract – Ms. Farrell has received two bids. The Board feels that the present company is doing a good job; cleaning staff has agreed to add several new items to their work list, such as the Party Room, at no extra charge. Ms. Barth asked if they could polish the residents’ door hardware; Mr. Cunningham said that task would probably be better handled by the company that polishes the elevator hardware.
MOTION Mr. Axelrad moved to approve a two-year contract with the current cleaning contractor, with no increase in price. Mr. Bressler seconded the motion. The vote to approve was unanimous.
Horizontal Pipes – Ms. Farrell submitted a $486 thousand proposal to the Board for horizontal pipe replacement on the lobby level for the Board to review and discuss for a later vote. Mr. Cunningham noted that pipe replacement is already part of the five-year plan, which the Board will review in July. There was a discussion about the need to complete this work before the refurbishment project begins. Ms. Farrell added there is additional work to be done besides the pipes, which will be handled by a plumbing contractor. The Board directed Ms. Farrell to follow up with the consulting engineers for more details on the scope of work.
Landscaping Contract
Ms. Farrell obtained one new bid, but has not yet received a proposed renewal contract from the current contractor. The current contractor is working on a month to month basis and the Company’s services are not entirely satisfactory. This item was deferred until the July meeting.
President’s Report
• The Board is working closely with Legum & Norman to have an orderly transition. The new contract will begin July 1 and it is hoped the transition will be complete by August 1. Staff members Carolyn Farrell, Ed Polite and Diane Robinson will work through the transition period until July 31, 2009. Mr. Cunningham would like to have a celebratory event in July for the community to show its appreciation for their service. Other Elizabeth staff will stay on after the transition period as Association employees.
• Mr. Cunningham referred to the letter of introduction sent to the residents by Legum & Norman which specified payment instructions for condo fees.
Residents’ Comments
• A resident asked for assistance in completing her Legum & Norman information form. Ms. Brantover said she would be happy to help her after the meeting.
• A resident stated that the piping work that needs to be done should be straightforward. Mr. Cunningham noted that the Board needs more information to determine the scope of work and the costs.
• A resident expressed concern over the appearance of the grounds and recommended changing landscaping contractors.
• A resident asked for specific details on the cost of engaging Legum & Norman. Mr. Cunningham replied that the base cost of the management contract is $89,000 which represents a $67,000 net increase in cost. In addition, there is a menu of variable costs, the total cost of which will depend on the extent of services used. He emphasized that residents will be kept fully informed. Mr. Cunningham also stated that the signed L&N contract will be placed in the management office, as are all other contracts, for resident review.
• A resident expressed her opinion that the owners did not have sufficient input into the decision to select an outside management company. Mr. Cunningham responded that there had been a series of meetings at which residents had had an opportunity to speak.
• A resident asked for details about the employees’ exit packages. Mr. Cunningham explained that detailed personnel information cannot be shared in open session.
• A member of the Energy Conservation Committee expressed frustration that a decision on replacing doors and windows has not been made. The Board asked for time to review the recommendations of the committee, which were submitted this evening.
• A resident suggested that the Association present engraved plaques to the departing employees to show its appreciation for the fine work they have done.
Next Meeting
The next meeting of the Board of Directors will be held on July 21, 2009.
There being no further business brought before the Board, the President adjourned the meeting at about 9:20pm.
The initial draft of the minutes, upon which these minutes are based, was prepared by Martha Morris.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting June 16, 2009
Board
Present: Woody Cunningham .......President (late)
Alexandria Kielty .........................Vice President
Monique Fridell ...........................Treasurer
Judith Barth ................................Assistant Treasurer
Jeffrey Axelrad ............................Secretary
Charles Bressler ...........................Director
Dr. Alfred Muller .........................Director
Also present: Carolyn Farrell ........Manager
Patty Dubuque .......Executive Vice President, Community
................................Management, Legum & Norman
John Algner ............Community Manager, Legum & Norman
Judy Brantover .......Regional Vice President, Legum & Norman
Martha Morris ........Recording Secretary
Call to Order: Ms. Fridell called the meeting to order at 7:34 pm.
Approval of Minutes
MOTION Dr. Muller moved to approve the minutes of the May 12 and May 26, 2009 Board meetings as corrected. Ms. Kielty seconded the motion.
MOTION Dr. Muller moved to amend his motion to add Ms. Bath’s written statement as an addendum to the corrected minutes. Ms. Fridell seconded the motion. The vote was 5 in favor, Mr. Axelrad opposed. The motion carried.
The Board then voted on the original motion as amended. The vote to approve was unanimous among the members present.
Ms. Fridell asked that Board members please submit their corrections to the minutes at least one week before the next meeting.
Treasurer’s Report
Ms. Fridell reported that reserves as of May 31, 2009 were $2.1 million, 13.6% higher than last year. She has shortened the terms of some investments to ensure liquidity for upcoming projects. With regard to performance versus budget, the Association’s net operating income is almost exactly on budget for the 11 months ended May 31, 2009.
Old Business
Update on leak in Unit 06 – Ms. Farrell reported that staff is working hard to ensure the leaking has stopped. Mr. Axelrad asked about another leak in Unit 214. Ms. Farrell responded that she investigated that unit with Engineer Ken Costeva and discovered the window was constructed differently from others in the building, which is probably the cause of the problem. The engineer suggests that this repair be made at that time when the next façade work is performed. The bids will be sent out soon. She added that Unit 215 will be included as well in the RFP since that unit also had a non-standard window.
Roof – In response to a question from Ms. Kielty, Ms. Farrell reported that the roof work has not been completed due to the rainy weather.
New Business – Legum & Norman
Ms. Fridell introduced Patty Dubuque of Legum & Norman, who oversees all community management functions. Ms. Dubuque introduced John Algner, who will act as Community Manager and liaison between the L&N site staff and the L&N staff in Alexandria, and Judy Brantover, who oversees properties in Maryland and Washington, DC, including the Somerset and the Carleton condominiums. Ms. Dubuque referred to the letters of introduction that had been sent to all Elizabeth owners. Owners on direct debit need to pay by check and coupon for one month (July 2009) during the transition and sign up for direct debit service with L&N by filling out the form included in the introduction packet. After July, all owners will have the option of paying by check, direct debit, or online bill-paying service. In addition, Legum & Norman has submitted to the Board the Merchant Agreement which would allow for an additional option, for owners to pay by credit card. This would cost the Association $8 per month; each owner would be charged 5% of the condo fee amount as a convenience fee. Ms. Dubuque concluded by saying that Legum & Norman is ready to begin on July 1 and that staff is looking forward to working with the Board, residents and staff of The Elizabeth.
Committee Reports
Energy Conservation – Joan Rosenbach
• Major activity has been the review and analysis of the consultants’ reports as requested by the Board: 1) Preliminary Energy Audit, conducted by American Renovators; and 2) Precision 20/20 Full Reserve Study, conducted by Reserve Advisors, Inc.
• The Energy Audit consultants addressed several key issues:
o fluorescent lighting in garage
o windows and doors
o heating and air conditioning units
o electric metering options
• Energy Audit consultants recommended two steps:
o retrofit fluorescent light fixtures in garage – major savings, fast payback
o undertake further study to address other issues before any steps are taken
• Committee recommends:
o proceed with retrofitting fluorescent fixtures in garage
o within 60-90 days retain services of consulting electrical and mechanical engineers to further study issues related to windows and doors; heating and air conditioning; and electric metering options.
Ms. Farrell noted that as soon as the current garage work is completed, she will be obtaining bids for replacement of all the long fluorescent tubes in the garage, stairwells and other areas.
Exercise Committee – Alexandria Kielty
Ms. Kielty reported that the committee met and distributed a survey to all residents for them to fill out and provide their feedback on Exercise Room usage and recommendations. Blank copies of the survey are still available at the front desk for residents to complete before the June 22 deadline.
Refurbishing Committee – Judith Barth
Ms. Barth reported that the process is going well. The committee met with Hartman Design Group on May 27 and reviewed preliminary designs, with three different color palettes for carpeting, wall coverings and fabric. The committee was very pleased with the preliminary designs. Ms Barth said that, after the meeting on May 27th with the Hartman Design Group, the committee had a meeting with the resident advisory committee which also was very pleased with the preliminary plans that were presented. The first step will be to propose options to the Board. Once Hartman has been given the go-ahead, it will be six months before the work will commence and another 6 to 7 months for the first phase to be completed. When the carpet and fabric are selected, samples will be placed on boards for presentation to the residents. Ms. Kielty added that Ms. Hartman and her firm are very professional and have extensive experience with high-rises. Ms. Fridell asked that the committee provide an estimate of timing and amount of monthly cash outlays so that she can structure the reserve investment portfolio to meet those expected payments.
Security Committee – Dr. Alfred Muller
Dr. Muller stated that Legum & Norman will review the present security situation and will provide the Board with a written report with any recommendations for change. He reported there had been a security incident in one of the units and the committee is awaiting the police report. Mr. Bressler expressed concern about the garage door which is left open by movers and other delivery vehicles entering the building.
MOTION Mr. Bressler moved to require vendors entering the building to surrender their drivers licenses at the front desk which they may retrieve when departing the building, at which time, an attendant will check to make sure the garage door is closed and the elevator unlocked. Mr. Axelrad seconded the motion. The vote to approve was unanimous among the members present.
Social Committee – Judith Barth
Ms. Barth reported that a very successful party had been held on Sunday with 107 guests in attendance. She thanked the committee and the volunteers who were tremendously helpful. A resident thanked Ms. Barth for her work as Chair of the Social Committee.
Floor Representatives Committee – Dr. Alfred Muller
Dr. Muller reported that the committee is working on preparing welcome packets which they will send to the floor representatives to distribute to new residents. Mr. Cunningham has suggested that an event be held to thank them for their efforts.
[Mr. Cunningham arrived at 8:25 pm]
Discussion Items – Contracts
Chiller – Mr. Cunningham reported on the meeting he and Ms. Farrell had today with Densel Company about the work being performed on the chiller. Densel explained that the chiller should have been examined and evaluated every five years and that it had been 10 years since it was last examined. Densel recommends replacing the bearings ($10,257), replacing the linear float ($1,777), and replenishing 250 pounds of refrigerant ($1,879). Mr. Cunningham asked the Board to ratify an amendment to the contract.
MOTION Mr. Axelrad moved to ratify an amendment to the Densel Company contract to replace the bearings and linear float and replenish refrigerant in the large chiller at a total cost of $13,913. Dr. Muller seconded the motion. The vote to approve was unanimous.
Structural Preservation Contract -- Change Order – Ms. Farrell reported that in the course of the contract work on a portion of the extended roof, it was observed that the flat roof eventually drained but there is still a puddle in the center. The electric room is directly underneath, so if a new drain is installed in the roof, this will need to be factored into the location of the drain. Mr. Cunningham recommended that management proceed with this repair, with the understanding that protecting the electric room will need to be a priority.
MOTION Mr. Bressler moved to amend the contract to allow the installation of a new drain in a portion of the lower level flat roof at a cost of $850. Ms. Barth seconded the motion. The vote to approve was unanimous.
Securitas –The cost for services will remain unchanged for this year.
Cleaning Contract – Ms. Farrell has received two bids. The Board feels that the present company is doing a good job; cleaning staff has agreed to add several new items to their work list, such as the Party Room, at no extra charge. Ms. Barth asked if they could polish the residents’ door hardware; Mr. Cunningham said that task would probably be better handled by the company that polishes the elevator hardware.
MOTION Mr. Axelrad moved to approve a two-year contract with the current cleaning contractor, with no increase in price. Mr. Bressler seconded the motion. The vote to approve was unanimous.
Horizontal Pipes – Ms. Farrell submitted a $486 thousand proposal to the Board for horizontal pipe replacement on the lobby level for the Board to review and discuss for a later vote. Mr. Cunningham noted that pipe replacement is already part of the five-year plan, which the Board will review in July. There was a discussion about the need to complete this work before the refurbishment project begins. Ms. Farrell added there is additional work to be done besides the pipes, which will be handled by a plumbing contractor. The Board directed Ms. Farrell to follow up with the consulting engineers for more details on the scope of work.
Landscaping Contract
Ms. Farrell obtained one new bid, but has not yet received a proposed renewal contract from the current contractor. The current contractor is working on a month to month basis and the Company’s services are not entirely satisfactory. This item was deferred until the July meeting.
President’s Report
• The Board is working closely with Legum & Norman to have an orderly transition. The new contract will begin July 1 and it is hoped the transition will be complete by August 1. Staff members Carolyn Farrell, Ed Polite and Diane Robinson will work through the transition period until July 31, 2009. Mr. Cunningham would like to have a celebratory event in July for the community to show its appreciation for their service. Other Elizabeth staff will stay on after the transition period as Association employees.
• Mr. Cunningham referred to the letter of introduction sent to the residents by Legum & Norman which specified payment instructions for condo fees.
Residents’ Comments
• A resident asked for assistance in completing her Legum & Norman information form. Ms. Brantover said she would be happy to help her after the meeting.
• A resident stated that the piping work that needs to be done should be straightforward. Mr. Cunningham noted that the Board needs more information to determine the scope of work and the costs.
• A resident expressed concern over the appearance of the grounds and recommended changing landscaping contractors.
• A resident asked for specific details on the cost of engaging Legum & Norman. Mr. Cunningham replied that the base cost of the management contract is $89,000 which represents a $67,000 net increase in cost. In addition, there is a menu of variable costs, the total cost of which will depend on the extent of services used. He emphasized that residents will be kept fully informed. Mr. Cunningham also stated that the signed L&N contract will be placed in the management office, as are all other contracts, for resident review.
• A resident expressed her opinion that the owners did not have sufficient input into the decision to select an outside management company. Mr. Cunningham responded that there had been a series of meetings at which residents had had an opportunity to speak.
• A resident asked for details about the employees’ exit packages. Mr. Cunningham explained that detailed personnel information cannot be shared in open session.
• A member of the Energy Conservation Committee expressed frustration that a decision on replacing doors and windows has not been made. The Board asked for time to review the recommendations of the committee, which were submitted this evening.
• A resident suggested that the Association present engraved plaques to the departing employees to show its appreciation for the fine work they have done.
Next Meeting
The next meeting of the Board of Directors will be held on July 21, 2009.
There being no further business brought before the Board, the President adjourned the meeting at about 9:20pm.
The initial draft of the minutes, upon which these minutes are based, was prepared by Martha Morris.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
ECA 5-Year Plan Meeting
MINUTES OF THE BOARD OF DIRECTORS
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.’S
JULY 9, 2009 OPEN WORKSHOP
MINUTES of a Workshop held by the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), on July 9, 2009 in the Party Room of the Condominium pursuant to notice.
Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller. Also, Site Manager Michael Horan was present.
Woody Cunningham called the Workshop, which was open to all residents of The Elizabeth, to order at about 7:30 p.m.
The Board reviewed and discussed the proposed five-year plan for the Elizabeth Condominium and revisions to the plan. In its discussion, the Board was aided by Monique Fridell’s visual spreadsheet, which was displayed on a screen. After extensive discussion, the Board received a number of comments from residents who attended the meeting. No decisions were made and no votes were taken at the meeting.
Woody Cunningham adjourned the meeting not long after 9:30pm.
Respectfully submitted,
Jeffrey Axelrad
Secretary
OF THE ELIZABETH CONDOMINIUM ASSOCIATION, INC.’S
JULY 9, 2009 OPEN WORKSHOP
MINUTES of a Workshop held by the Board of Directors of the Elizabeth Condominium Association, Inc. (“Association”), on July 9, 2009 in the Party Room of the Condominium pursuant to notice.
Present were: President George “Woody” Cunningham, Vice President Alexandra Kielty, Treasurer Monique Fridell, Assistant Treasurer Judith Barth, Secretary Jeffrey Axelrad, Board Members Charles Bressler and Alfred Muller. Also, Site Manager Michael Horan was present.
Woody Cunningham called the Workshop, which was open to all residents of The Elizabeth, to order at about 7:30 p.m.
The Board reviewed and discussed the proposed five-year plan for the Elizabeth Condominium and revisions to the plan. In its discussion, the Board was aided by Monique Fridell’s visual spreadsheet, which was displayed on a screen. After extensive discussion, the Board received a number of comments from residents who attended the meeting. No decisions were made and no votes were taken at the meeting.
Woody Cunningham adjourned the meeting not long after 9:30pm.
Respectfully submitted,
Jeffrey Axelrad
Secretary
Wednesday, June 24, 2009
Summary of June 2009 Elizabeth Condo Board Meeting
Highlighted in the June meeting of the Elizabeth Condo Board were: transitioning of building management to Legum & Norman including methods of paying condo fees, energy issues including hiring consultant to assess requirements for new windows and balcony doors, and need to fix plumbing/pipe issues before renovation can move forward.
Present at the meeting were the following Legum & Norman representatives:
Patricia DuBuque, Executive Vice President, Community Management
Judy Branthover, Vice President (Regional Manager who will oversee the ECA Community Manager and the transition)
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
L&N also offers the flexibility to charge condo fees. If the ECA Board votes to permit charging of condo fees to credit cards, there will be an $8.00 convenience fee charged to the Association and a $3.00 charge to the user of the card. Electric Funds Transfer (automatic deduction) is the most cost-effective way for the ECA to have condo fees sent to L&N. Personal checks always incur a service charge to the Association.
Energy issues not only include replacement of leaky windows and balcony doors but assessment of the heating and cooling units (McQuay units) and whether it would be possible to meter energy use on a unit-by-unit basis. Currently utility costs are rolled into condo fees. Metering the use of electricity and water within owner units would significantly encourage energy conservation because owners would be able to see the cause and effect of use within their units. Also separate metering would reduce condo fees. While windows, balcony doors, and the old heating and cooling systems must be attended to, retrofitting utility meters for individual units may not be a financially viable option.
While the committee overseeing the renovation by the Hartman Design Group is pleased with the palettes of color and materials, the ECA cannot move ahead until a number of plumbing and pipe issues are corrected. Fixing these problems is a sizeable expense but must be done. To move ahead without fixing these things would jeopardize the investment in new carpet, wall coverings, furniture, etc. For example, the lobby level has a number of water leakage problem areas. However, what is clear is that the entire building needs to be assessed for structural, mechanical, and plumbing issues (there may be other categories too) BEFORE any renovations can safely be implemented.
Securitas reported that an apartment on the East side was broken into but nothing was reported missing though a glass table was broken.
Contracts: The Board approved repair to the big chiller used on high temperature days. Board voted to renew contract for Clean inc. Landscaping contract was put on hold as was the Aqua Fit contract.
The Social Committee reported that over 100 people attended the BBQ party.
Present at the meeting were the following Legum & Norman representatives:
Patricia DuBuque, Executive Vice President, Community Management
Judy Branthover, Vice President (Regional Manager who will oversee the ECA Community Manager and the transition)
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
L&N also offers the flexibility to charge condo fees. If the ECA Board votes to permit charging of condo fees to credit cards, there will be an $8.00 convenience fee charged to the Association and a $3.00 charge to the user of the card. Electric Funds Transfer (automatic deduction) is the most cost-effective way for the ECA to have condo fees sent to L&N. Personal checks always incur a service charge to the Association.
Energy issues not only include replacement of leaky windows and balcony doors but assessment of the heating and cooling units (McQuay units) and whether it would be possible to meter energy use on a unit-by-unit basis. Currently utility costs are rolled into condo fees. Metering the use of electricity and water within owner units would significantly encourage energy conservation because owners would be able to see the cause and effect of use within their units. Also separate metering would reduce condo fees. While windows, balcony doors, and the old heating and cooling systems must be attended to, retrofitting utility meters for individual units may not be a financially viable option.
While the committee overseeing the renovation by the Hartman Design Group is pleased with the palettes of color and materials, the ECA cannot move ahead until a number of plumbing and pipe issues are corrected. Fixing these problems is a sizeable expense but must be done. To move ahead without fixing these things would jeopardize the investment in new carpet, wall coverings, furniture, etc. For example, the lobby level has a number of water leakage problem areas. However, what is clear is that the entire building needs to be assessed for structural, mechanical, and plumbing issues (there may be other categories too) BEFORE any renovations can safely be implemented.
Securitas reported that an apartment on the East side was broken into but nothing was reported missing though a glass table was broken.
Contracts: The Board approved repair to the big chiller used on high temperature days. Board voted to renew contract for Clean inc. Landscaping contract was put on hold as was the Aqua Fit contract.
The Social Committee reported that over 100 people attended the BBQ party.
Wednesday, June 17, 2009
Special ECA Board Meeting on Professional Management Vote
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 26, 2009
Board
Present: Woody Cunningham President
Alexandria Kielty Vice President
Monique Fridell Treasurer
Judith Barth Assistant Treasurer
Jeffrey Axelrad Secretary
Charles Bressler Director
Dr. Alfred Muller Director
Also present: Jason Fisher Lerch Early and Brewer Chartered
Martha Morris Recording Secretary
Call to Order: President Cunningham called the meeting to order at 7:30 pm.
President’s Report
Mr. Cunningham stated that the meeting had one agenda item, to vote on a proposed contract with Legum and Norman Inc. to provide management services to the Elizabeth Condominium Association. He stated that the Elizabeth needs a major restructuring of its management system and that it may be internal or external. He added that the Board will have in place a good five-year plan later this year. He then opened the floor for discussion.
Residents’ Comments
Jim Rich #301 reminded the residents that Board members are unpaid volunteers and should be addressed courteously.
Jim Jones #307 West Tower asked each Board member to state his/her position on the issue with their reasons. Mr. Cunningham responded that such discussion is on the agenda.
Alicex Robinson #917 noted that in the last election, the three Board members who are in favor of approving the management contract received 33% of the vote. She asked that the Board defer this decision for one year and to give owners the opportunity to vote.
Pam Dillon #718 referred to a spreadsheet of costs that the Board had distributed and expressed concern that the Association will be subject to annually rising personnel costs. She also expressed concern that Legum and Norman has been purchased by Associa, and that losses in other Associa companies could trigger increased fees charged by Legum and Norman. She further expressed concern about the possibility of losing current Elizabeth staff. Lastly, she noted some numbers in the spread sheet that appeared to be in error.
Wally Mannheimer #1109 and #1110 recalled that when Ms. Dillon was on the Board, she recommended that the Association consider outside management. Ms. Dillon responded that she recommended a consultant-type role for the outside company.
Ellen Winthrop #1114 stated that in her opinion the current staff has been exemplary. She reminded the Board that the staff possesses a large reservoir of knowledge and asked if the decision could be delayed for six months. She also expressed concern about the amount of Legum and Norman’s insurance bond.
Judy Gann #711 noted her participation when she was on the Board in the deliberations on changing to outside management. She spoke favorably of current staff but said that outside management can provide backup, which is important in light of the repairs that need to be carried out prior to the refurbishing project.
Mary Andreresen #1107 agreed with the comments on the insurance bond. She suggested that the rating of Associa’s insurance ratingprovider be investigated.
David Dreisen #517 East Tower asked that if the Board votes to approve, they create benchmarks to evaluate if the company is meeting the community’s expectations.
Kevin Barker #101 asked that the Board wait one year before making a decision.
Sanford Meracle #1405 expressed his need for more specific cost information on the contract, such as hidden fees, asked whether resident satisfaction levels were included in the analysis, questioned the company’s proposed role in the refurbishment project, and feels the Board spends too much time on legal matters. He asked the Board to postpone the decision.
Pat Larson #1619 East Tower moved in in 1997 specifically because the building was individually managed. She has concernss about the Associa acquisitionbuyout and is worried costs will rise. She emphasized the family-like atmosphere of the Elizabeth.
Keith Burrell visiting #501 noted that he is a Board member of a condominium in downtown Washington DC. He reported that a good management company can help an Association reduce costs such as energy; however, he was not favorable about L&N, feeling they are too large.
Angela Richardelli, 26-year resident and 12-year owner, stated that it is difficult to achieve an outcome which achieves speed, quality and contentment. She suggested the Board develop a counter-contractproposal to the L&N contract which limits increases in assessments and ensures performance reviews.
Karen Alenier, owner since 1978, acknowledged that change is difficult but urged residents to consider the need for change in order to protect their investments. She commended the Board for taking action.
Stephanie Olshan #1014, 10-year owner, thanked the Board for their hard work on the owners’ behalf. She stated there is misinformation circulating about the relative authority of the Board and of the management company over the determination of the assessment.
Barbara Sandler #211, owner since the building opened, expressed her fondness for the community. She has attended as many Board meetings as possible and complimented the Board on its work. She reminded the residents that it is they who elect the Board members and it is the residents’ responsibility to respect the Board and to allow them to do their job. The Bylaws give authority to the Board to make certain decisions. She asked that the community try to work together, knowing that everything will not be perfect.
Clay Nettles #508 introduced a vote of no confidence two meetings ago but it did not pass. He appreciated the Board letting the residents speak their opinion tonight.
Linda Kotner #919 was dismayed that the Board was voting the same night as the residents’ comments and asked that in the future, the Board build in extra time to consider owners’ input.
Board Discussion
Mr. Cunningham asked each Board member to make a statement before voting. He asked if there were any questions for Mr. Fisher regarding the proposed contract.
MOTION
Mr. Axelrad moved to accept the final version of the proposed contract with Legum and Norman Inc. to provide management services to the Association. Ms. Barth seconded the motion.
Discussion
Mr Axelrad – stated that the decision on whether to move to Legum and Norman’s professional management relates to effective management of our building, not to personalities. We do not have the breath and depth of support that Legum & Norman can provide. In short, we need professional management’s knowledge and support. Our building’s physical structure is no longer new or even close to new. For example, our pipes leak and have even spewed filth into apartments, the latter being a failure on our part until now to know that our pipes need to be cleaned. While we have excellent personnel running and overseeing our finances, our system is antiquated. In short, we need professional management’s knowledge and support.. Legum & Norman has already, without compensation, pointed us to a very substantial savings: We have needlessly been paying sales tax on costs such as electricity and gas. We need to accept the virtue of delegating day-to-day management (with Board oversight) to professionals rather than seeking to maintain the dead hand of control over a haphazard, poorly organized and insufficiently functioning support operation. Past Boards have had plenty of time to match the advantages of professional management; they did not! It’s a fantasy to think that our current deterioration, including in the value of our property, compared to other condominiums in our neighborhood, will change without professional management. We have many fine employees; professional management will enable us to maximize their efforts for all our benefit.
Mr. Axelrad – had several preliminary points: 1) when he ran for the Board, he made it clear that he had an open mind regarding the issue; 2) the building is in deteriorating condition; and 3) it is now clear to him that the Association needs to move to professional management. He feels that the current staff does an excellent job on financial operations but the Association needs more depth and breadth, knowledge and support. Legum and Norman has already pointed out certain savings that could be achieved on energy bills totaling tens of thousands of dollars. He feels it is the responsibility of the Board to vote for the change.
Ms. Fridell – stated she is voting against the proposal. During the due diligence process, she asked that the Board consider an internal restructuring of the current management system; however, they, which was rejected this possibilitynot done. She would feel much more comfortable moving to outside management if the Board had at least made a good faith effort to effect change based on specific measurable operating performance criteria, and had reached the conclusion that we simply were unable to meet our goals for improvement on our own. She would like to have seen the Board execute an internal restructuring and make wholehearted efforts to improve our operational issues on our own before moving to outside management.
She expressed the need for specific operating goals with measurable outcomes. She feels the Board should work harder with the current situation.
Mr. Bressler – noted that this is an important decision. He reviewed the presentation made last Wednesday night from Legum and Norman company representatives. Due to financial concerns, Hhe asked that the decision be postponed until after the refurbishment project is completed. He noted that communication has not been good the past several years but that any changes that need to be made can be done internally. He asked that if the motion passes, the Board furnish realistic estimateds contract and other of costs to the Association relating to the move to an outside management company. owners.
Ms. Barth – stated that the Elizabeth has been declining in property values and in quality of life. During careful study by the Board over the past year, three companies in the DC area were considered and Legum and Norman was the finalist. Benefits of engaging Legum and Norman include resources not available to individually managed properties and high levels of staff education and training. Legum and Norman’s engineering department can address the Elizabeth’s structural and mechanical problems. She has lived at the property for 30 years and cares about the community. Her fiduciary responsibility is to vote for outside management. Lastly, she noted that the Bylaws confirm her right to vote on the Board.
Dr. Muller – noted that legal counsel advised against discussing personnel in the meeting. He emphasized the Board’s responsibility to keep the Elizabeth competitive in today’s market and the increasing complaints about deteriorating conditions and services. He reminded residents that an open meeting was held four months ago to solicit residents’ input; the biggest concerns were cost and possible staff changes. These concerns have been addressed in the negotiations with Legum and Norman. He noted the cost-savings advantages of a large and experienced company and the access to backup. He is in favor of voting for the contract.
Ms. Kielty – had questions for Mr. Fisher regarding clauses in the proposed contract relating to who has the authority over employee hiring and firing. In all Board discussions it has been consistently stated that only the Board has the right to let go or fire staff, but the contract states that the Site Managers has the authority to discharge employees. Ms. Kielty also mentioned that during the L & N briefing, John stated that they would prefer that their management staff have the right to let staff go and that this issue was still not resolved. She pointed out that should the Association wish to convert to a a “financial managements only” only contract at some point in the future, having certain employees report to the outside company might make the switch difficult since it would also mean letting go of the site manager and the resident service coordinator, as well as any other new staff that are hired as L & N employees. She asked whether L&N would perform legal activities relating to collection services. Mr. Fisher confirmed that Lerch Early and Brewer would continue to provide collections this services. She was involved early on the decision-making process but has decided to vote against the proposal over the issue of hiring personnel. She also noted that the recent vote for new ECA board members was, in a sense, a referendum on outside management which suggested the vast majority of residents did not agree with the Board’s action on this issue. However, should the motion pass, she will work hard to implement the contract effectively.
Mr. Cunningham wrapped up by noting that the Board gives up none of its responsibilities by moving to an outside management company. He originally thought the problems could be solved by revamping the existing management structure but as a result of his day-to-day involvement, he now recognizes the advantages an outside company would bring.
Prepared statements read at the Board Meeting and provided after the meeting by the Board Members who delivered the statements are attached.
VOTE
Axelrad – FOR
Fridell – AGAINST
Bressler – AGAINST
Barth – FOR
Muller – FOR
Kielty – AGAINST
Cunningham – FOR
The motion passed, 4-3.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 pm.
Original draft prepared by Martha Morris, Recording Secretary
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
[This set of minutes were sent to me with Draft written at the top and does contain spelling errors on names. Alenier has bolded the purpose of this meeting.]
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 26, 2009
Board
Present: Woody Cunningham President
Alexandria Kielty Vice President
Monique Fridell Treasurer
Judith Barth Assistant Treasurer
Jeffrey Axelrad Secretary
Charles Bressler Director
Dr. Alfred Muller Director
Also present: Jason Fisher Lerch Early and Brewer Chartered
Martha Morris Recording Secretary
Call to Order: President Cunningham called the meeting to order at 7:30 pm.
President’s Report
Mr. Cunningham stated that the meeting had one agenda item, to vote on a proposed contract with Legum and Norman Inc. to provide management services to the Elizabeth Condominium Association. He stated that the Elizabeth needs a major restructuring of its management system and that it may be internal or external. He added that the Board will have in place a good five-year plan later this year. He then opened the floor for discussion.
Residents’ Comments
Jim Rich #301 reminded the residents that Board members are unpaid volunteers and should be addressed courteously.
Jim Jones #307 West Tower asked each Board member to state his/her position on the issue with their reasons. Mr. Cunningham responded that such discussion is on the agenda.
Alicex Robinson #917 noted that in the last election, the three Board members who are in favor of approving the management contract received 33% of the vote. She asked that the Board defer this decision for one year and to give owners the opportunity to vote.
Pam Dillon #718 referred to a spreadsheet of costs that the Board had distributed and expressed concern that the Association will be subject to annually rising personnel costs. She also expressed concern that Legum and Norman has been purchased by Associa, and that losses in other Associa companies could trigger increased fees charged by Legum and Norman. She further expressed concern about the possibility of losing current Elizabeth staff. Lastly, she noted some numbers in the spread sheet that appeared to be in error.
Wally Mannheimer #1109 and #1110 recalled that when Ms. Dillon was on the Board, she recommended that the Association consider outside management. Ms. Dillon responded that she recommended a consultant-type role for the outside company.
Ellen Winthrop #1114 stated that in her opinion the current staff has been exemplary. She reminded the Board that the staff possesses a large reservoir of knowledge and asked if the decision could be delayed for six months. She also expressed concern about the amount of Legum and Norman’s insurance bond.
Judy Gann #711 noted her participation when she was on the Board in the deliberations on changing to outside management. She spoke favorably of current staff but said that outside management can provide backup, which is important in light of the repairs that need to be carried out prior to the refurbishing project.
Mary Andreresen #1107 agreed with the comments on the insurance bond. She suggested that the rating of Associa’s insurance ratingprovider be investigated.
David Dreisen #517 East Tower asked that if the Board votes to approve, they create benchmarks to evaluate if the company is meeting the community’s expectations.
Kevin Barker #101 asked that the Board wait one year before making a decision.
Sanford Meracle #1405 expressed his need for more specific cost information on the contract, such as hidden fees, asked whether resident satisfaction levels were included in the analysis, questioned the company’s proposed role in the refurbishment project, and feels the Board spends too much time on legal matters. He asked the Board to postpone the decision.
Pat Larson #1619 East Tower moved in in 1997 specifically because the building was individually managed. She has concernss about the Associa acquisitionbuyout and is worried costs will rise. She emphasized the family-like atmosphere of the Elizabeth.
Keith Burrell visiting #501 noted that he is a Board member of a condominium in downtown Washington DC. He reported that a good management company can help an Association reduce costs such as energy; however, he was not favorable about L&N, feeling they are too large.
Angela Richardelli, 26-year resident and 12-year owner, stated that it is difficult to achieve an outcome which achieves speed, quality and contentment. She suggested the Board develop a counter-contractproposal to the L&N contract which limits increases in assessments and ensures performance reviews.
Karen Alenier, owner since 1978, acknowledged that change is difficult but urged residents to consider the need for change in order to protect their investments. She commended the Board for taking action.
Stephanie Olshan #1014, 10-year owner, thanked the Board for their hard work on the owners’ behalf. She stated there is misinformation circulating about the relative authority of the Board and of the management company over the determination of the assessment.
Barbara Sandler #211, owner since the building opened, expressed her fondness for the community. She has attended as many Board meetings as possible and complimented the Board on its work. She reminded the residents that it is they who elect the Board members and it is the residents’ responsibility to respect the Board and to allow them to do their job. The Bylaws give authority to the Board to make certain decisions. She asked that the community try to work together, knowing that everything will not be perfect.
Clay Nettles #508 introduced a vote of no confidence two meetings ago but it did not pass. He appreciated the Board letting the residents speak their opinion tonight.
Linda Kotner #919 was dismayed that the Board was voting the same night as the residents’ comments and asked that in the future, the Board build in extra time to consider owners’ input.
Board Discussion
Mr. Cunningham asked each Board member to make a statement before voting. He asked if there were any questions for Mr. Fisher regarding the proposed contract.
MOTION
Mr. Axelrad moved to accept the final version of the proposed contract with Legum and Norman Inc. to provide management services to the Association. Ms. Barth seconded the motion.
Discussion
Mr Axelrad – stated that the decision on whether to move to Legum and Norman’s professional management relates to effective management of our building, not to personalities. We do not have the breath and depth of support that Legum & Norman can provide. In short, we need professional management’s knowledge and support. Our building’s physical structure is no longer new or even close to new. For example, our pipes leak and have even spewed filth into apartments, the latter being a failure on our part until now to know that our pipes need to be cleaned. While we have excellent personnel running and overseeing our finances, our system is antiquated. In short, we need professional management’s knowledge and support.. Legum & Norman has already, without compensation, pointed us to a very substantial savings: We have needlessly been paying sales tax on costs such as electricity and gas. We need to accept the virtue of delegating day-to-day management (with Board oversight) to professionals rather than seeking to maintain the dead hand of control over a haphazard, poorly organized and insufficiently functioning support operation. Past Boards have had plenty of time to match the advantages of professional management; they did not! It’s a fantasy to think that our current deterioration, including in the value of our property, compared to other condominiums in our neighborhood, will change without professional management. We have many fine employees; professional management will enable us to maximize their efforts for all our benefit.
Mr. Axelrad – had several preliminary points: 1) when he ran for the Board, he made it clear that he had an open mind regarding the issue; 2) the building is in deteriorating condition; and 3) it is now clear to him that the Association needs to move to professional management. He feels that the current staff does an excellent job on financial operations but the Association needs more depth and breadth, knowledge and support. Legum and Norman has already pointed out certain savings that could be achieved on energy bills totaling tens of thousands of dollars. He feels it is the responsibility of the Board to vote for the change.
Ms. Fridell – stated she is voting against the proposal. During the due diligence process, she asked that the Board consider an internal restructuring of the current management system; however, they, which was rejected this possibilitynot done. She would feel much more comfortable moving to outside management if the Board had at least made a good faith effort to effect change based on specific measurable operating performance criteria, and had reached the conclusion that we simply were unable to meet our goals for improvement on our own. She would like to have seen the Board execute an internal restructuring and make wholehearted efforts to improve our operational issues on our own before moving to outside management.
She expressed the need for specific operating goals with measurable outcomes. She feels the Board should work harder with the current situation.
Mr. Bressler – noted that this is an important decision. He reviewed the presentation made last Wednesday night from Legum and Norman company representatives. Due to financial concerns, Hhe asked that the decision be postponed until after the refurbishment project is completed. He noted that communication has not been good the past several years but that any changes that need to be made can be done internally. He asked that if the motion passes, the Board furnish realistic estimateds contract and other of costs to the Association relating to the move to an outside management company. owners.
Ms. Barth – stated that the Elizabeth has been declining in property values and in quality of life. During careful study by the Board over the past year, three companies in the DC area were considered and Legum and Norman was the finalist. Benefits of engaging Legum and Norman include resources not available to individually managed properties and high levels of staff education and training. Legum and Norman’s engineering department can address the Elizabeth’s structural and mechanical problems. She has lived at the property for 30 years and cares about the community. Her fiduciary responsibility is to vote for outside management. Lastly, she noted that the Bylaws confirm her right to vote on the Board.
Dr. Muller – noted that legal counsel advised against discussing personnel in the meeting. He emphasized the Board’s responsibility to keep the Elizabeth competitive in today’s market and the increasing complaints about deteriorating conditions and services. He reminded residents that an open meeting was held four months ago to solicit residents’ input; the biggest concerns were cost and possible staff changes. These concerns have been addressed in the negotiations with Legum and Norman. He noted the cost-savings advantages of a large and experienced company and the access to backup. He is in favor of voting for the contract.
Ms. Kielty – had questions for Mr. Fisher regarding clauses in the proposed contract relating to who has the authority over employee hiring and firing. In all Board discussions it has been consistently stated that only the Board has the right to let go or fire staff, but the contract states that the Site Managers has the authority to discharge employees. Ms. Kielty also mentioned that during the L & N briefing, John stated that they would prefer that their management staff have the right to let staff go and that this issue was still not resolved. She pointed out that should the Association wish to convert to a a “financial managements only” only contract at some point in the future, having certain employees report to the outside company might make the switch difficult since it would also mean letting go of the site manager and the resident service coordinator, as well as any other new staff that are hired as L & N employees. She asked whether L&N would perform legal activities relating to collection services. Mr. Fisher confirmed that Lerch Early and Brewer would continue to provide collections this services. She was involved early on the decision-making process but has decided to vote against the proposal over the issue of hiring personnel. She also noted that the recent vote for new ECA board members was, in a sense, a referendum on outside management which suggested the vast majority of residents did not agree with the Board’s action on this issue. However, should the motion pass, she will work hard to implement the contract effectively.
Mr. Cunningham wrapped up by noting that the Board gives up none of its responsibilities by moving to an outside management company. He originally thought the problems could be solved by revamping the existing management structure but as a result of his day-to-day involvement, he now recognizes the advantages an outside company would bring.
Prepared statements read at the Board Meeting and provided after the meeting by the Board Members who delivered the statements are attached.
VOTE
Axelrad – FOR
Fridell – AGAINST
Bressler – AGAINST
Barth – FOR
Muller – FOR
Kielty – AGAINST
Cunningham – FOR
The motion passed, 4-3.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 pm.
Original draft prepared by Martha Morris, Recording Secretary
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
[This set of minutes were sent to me with Draft written at the top and does contain spelling errors on names. Alenier has bolded the purpose of this meeting.]