Highlighted in the September meeting of the Elizabeth Condo Board were these points: locks on apartment front doors are failing frequently now due to age and need to be replaced to avoid getting locked in or out of the apartments; Legum & Norman (L&N) are continuing to help the Elizabeth realize cost savings and other efficiencies.
Present at the meeting besides all the Board members were the following Legum & Norman representatives:
John Algner, Senior Community Manager (assigned to the Elizabeth and other buildings in Friendship Heights)
Mike Horan, Site Manager
Cost Saving Measures:
L&N site manager Mike Horan is looking into consolidating at a cost-savings two separate contracts for care of employee uniforms.
The Elizabeth qualifies for an $11,000 rebate on replacing garage lighting with more energy-efficient fixtures. Derick Lighting, which bid $39,000 (lowest of several bids) to install new cost-saving lighting in the garage, was sure we qualified and therefore lowered the contract price to $28,000 based on the assumed rebate. The payback of this expenditure ($28,000) is anticipated within 2-3 years. Mike Horan said the wattage dramatically drops but the light will be the same or brighter with the new technology lighting.
Contracts:
With regard to major contracts, L&N has approved our contracting procedure and has provided us with an addendum to protect us better in terms of liability.
We are starting several major contracts. One involves evaluation of replacement of horizontal piping in the lobby.
AD Heath Company is looking to see if the packing around the ducts contains asbestos.
We have a contract for façade improvements at the 14th and 15th tiers which is beginning at the end of this month and will continue through November.
We have a contract for the emergency generator work. At the time of the Board meeting, L&N was meeting with contractor engineers about this.
Committee Structure:
Board is looking at expanding the committee structure to take advantage of talent and expertise in the building.
Security:
Dr. Muller and Mike Horan spoke about the analysis of the security cameras and recording system. The recording system is old and time-consuming to use. This will be replaced. Also we will try one or two digital cameras and evaluate their clarity and efficiency before proceeding further.
Committee Reports & Housekeeping:
Judi Barth reported on the renovation. Work has begun by the designer, and the Refurbishment Committee will meet with her on September 22. We may have sample boards in a week or so.
Tobi Esler reported on the work of the Pet Committee. They met twice and will report their recommendations at the next meeting. New registration forms will be issued to all pet owners.
Tobi Esler reported on the Floor Reps on behalf of Stephanie Olshan. She has met with Mike Horan about providing new residents with Welcome Packets. Additionally, the Floor Reps are suggesting bi-lingual signs (English-Spanish) for the trash rooms since the signs in English don't get the desired results. Mike Horan agreed to look into such signage.
Mention was made about the condition of the trash rooms. Residents were reminded NOT to load up the trash rooms on weekends when staff is short.
There was a discussion about the pool plants that are in bad condition. The decision was made to try to locate the residents who own the plants, and ask that they remove their plants. Otherwise, all plants will be removed by Elizabeth staff.
Charles Bressler said that he met with a landscape designer from Merrifield Gardens, Tom Wallerich, who prepared a new design plan for the front of the building, the West Terrace, and the back of the building. Tom Wallerich gave an overview of the plan to the Board and attendees at the meeting and answered questions. He said that in designing this plan, he tried to keep as much of the current plantings as he could, and suggested removing those that were not salvageable. Charles emphasized that the plan could be installed in several phases. Phase I, the front section of the building, would cost about $16,000. The West Terrace would cost about $14,000, and the back portion off the party room terrace would cost about $8,000. Mike Horan has copies of the plan and will post it in the lobby.
Mike Horan and Jim Jones spoke about a problem with the locks on the front doors of the apartments. The brass hardware and parts are no longer available. These locks have, in some instances, failed. The result is that residents have either been locked in their apartment or locked out. This is dangerous, particularly in case of fire. Mike Horan suggested that residents get a deadbolt lock installed and use it instead of the original door lock, in other words, leaving the original door lock unlocked at all times. Mike is getting quotes for: (1) disabling the front door locks; and (2) installing brass deadbolt locks. He will make that information available to residents.
Sharon Bobb suggested that we also look into replacing the original toilets, as they have outlived their useful life, and they spontaneously break, creating floods that damage more than one apartment with each such event. Such spontaneous breaks have occurred with enough frequency to suggest that all older toilets be replaced to avoid any further flooding. She asked that Mike Horan look into getting bulk prices for toilet replacement, and offer this to the residents. Sharon suggested getting quotes from Ferguson Plumbing, and offered to share information with Mike about this.
Monday, September 28, 2009
Thursday, September 17, 2009
August 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 Rhodes ............President, Legum & Norman
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Property Manager, Legum & Norman
Gail Anderson .........Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:38 pm. President Cunningham noted that although a meeting of the Board was not scheduled for August, several major issues require resolution and it was decided that a meeting was necessary.
Approval of Minutes
MOTION:
Mr. Axelrad moved to approve the minutes of the July 21, 2009, Board of Directors’ meeting as corrected. Ms. Barth seconded the motion. The motion carried unanimously.
President’s Report
Mr. Cunningham noted that a significant number of complaints have been received about the failure of some owners to accept responsibility for the behavior of their dogs. Mr. Cunningham appointed a residents’ committee to investigate the issue and make recommendations on what to do excluding any revisions in bylaws or house rules. The members of the committee are Ms. Eisler, Ms. Soderburg, and Ms. Alenier.
Before yielding the floor for the Treasurer’s Report, Mr. Cunningham stated that the financials for fiscal year 2009 are not yet complete.
Treasurer’s Report
Ms. Fridell stated that the Fiscal Year, which ended June 30, 2009, is in the process of being closed out. She explained that L&N has not been able to prepare July financial statements due to the fact that L&N needs final 6/30/09 figures from ECA in order to prepare the July statements.
Ms. Fridell reported that she is disappointed with the performance of Legum & Norman in the short time the association has been a client of the firm. She cited a demonstrated lack of responsibility, lack of “follow-up,” and a slow rate of response to requests and resolving pending transition issues. She noted that the association manages its reserves differently than other similar organizations, requiring more administrative activity, at least until the association consolidates its investments into its Wachovia CDARS account. She requested clarification on the following three points, which have been pending response for several weeks from L&N:
1. Who are the contacts at Legum & Norman,who will execute investment decisions; provide names, phone numbers and emails?
2. Who will prepare/update the Cash Management Report?
3. What is the procedure for execution of investment decisions by L&N staff?
Mr. Rhodes responded that Legum & Norman will strive to improve the situation. He expressed surprise that there was a question regarding the investment procedures as, prior to the signing of the contract, the issue was discussed at length. He noted that Legum & Norman makes investments by telephone or via the internet, and that it was his understanding that Ms. Fridell would be responsible for investing the funds as the Board directed. Ms Fridell’s perception was that Legum & Norman would complete the paperwork for all investments. Further discussions will be held to determine the contact person with whom Ms. Fridell will work.
Mr. Rhodes and Mr. Algner reported that most of their clients use brokerage houses to manage their investments. In most cases, the clients report less work, higher reserves, and reduced costs by using brokerage firms. The gentlemen did not recommend any specific firm. Ms. Fridell noted that the Association already has a brokered (zero cost) CD account at Wachovia and that even if the Association takes such an action, it will not be immediate; several Certificates of Deposit must reach their terms, and until those dates, an association representative must execute the investments.
New Business
Lobby Pipes
Jimmy Keating and Mike Horan met with Mr. Heath to discuss the renovation of the piping in the lobby. Clarification of the scope of the project and what is included in the proposal is required. The building engineer pointed out that some pipes marked for replacement in the proposal have already been replaced. Mr. Cunningham pointed out that some of the pipes are cast iron and have a long life expectancy. The condition of those pipes should be determined and a decision on whether to replace the pipes should be made based on projected longevity. When the work and redecoration are complete, it is desirable that no more replacement be necessary for approximately 25 years. An inspection will be performed to determine which pipes do not require replacement. Mr. Heath will be asked to determine the condition of the cast iron pipes.
Mr. Cunningham explained that a template cover contract is being prepared and asked if there were any objections to the provisions. There were no objections. The contract will be prepared and signed next week. The Board will hold a pre-mobilization meeting before the project begins.
The estimate for completion of the “store-front” area (at the Arcade) is $500,000. Mr. Cunningham proposes delaying work on the horizontal pipes in the arcade area where fire would cause less damage than in other portions of the building.
Ms. Kielty inquired about the process for reviewing contracts, and asked if all contracts still need to be reviewed by legal counsel. Based on a recommendation from Management, Mr. Cunningham suggested adding a contractor injury clause to the standard contract. Mr. Axelrad pointed out that the newly amended Maryland Open Meeting section of the condo law provides for discussion pertaining to legal counsel in executive session. Dr. Muller stated his opinion that the law referred to specific legal advice and not to a general discussion about consulting an attorney. Mr. Rhodes indicated that completion of the work will take approximately four (4) months. A start date has not been discussed. The work will start in the West Lobby and be completed in phases so that it does not interfere with decorating. It is likely that decorating will begin in January 2010.
Before pipe work can commence, concerns about insurance and indemnification for the community and Legum & Norman need to be resolved. It will be necessary to learn from Mr. Heath the amount of time that will be required to determine which specific pipes will not be replaced and the amounts that will be deducted from the estimate as a result.
Increased communication with the building engineer was encouraged. His input, based on his intimate knowledge of the building’s systems, can expedite the improvement process.
Five-Year Plan
Mr. Cunningham stated that the proposed Five-Year Plan was prepared based on projects that are ongoing or that are known to be necessary. Based on relevant conditions and changing priorities, the Plan and project schedules can be amended. It was noted that the building engineers manage excellent maintenance programs and inspections and are able to predict quite accurately the lifetime of equipment. Therefore, a “run-to-failure” policy is a reasonable approach to system replacements, rather than the approach assumed in the Reserve Study of ongoing maintenance to extend useful lives. If the consequences of a system failure are not significant, replacement of many systems can be delayed until failure occurs, thereby saving the owners money. The Plan, as proposed by Mr. Cunningham, spreads the cost of maintenance and allows flexibility to accommodate unexpected failures.
The Fiscal Year 2010 Plan includes amendments from the Fiscal Year 2009 Plan. These include:
• Reduction of estimate for lobby piping from $700,000 to $500,000
• Completion of emergency generator repairs - $300-350,000
• Deletion of $42,700 for tear-down of chiller. Work completed in FY 2009
• Defer the $57,600 allocated for G1 work over more than one year
• Defer the $70,000 G1 work for about three years to avoid re-mobilization costs
Mr. Axelrad commented that the Board had given its word that the total amount for the refurbishment project would not exceed $1.2 million and had made a commitment to complete the work for that amount and should not contemplate an increase. In discussion, other Board members commented that no bids have been received, no votes have been taken on spending, and no commitments have been made to vendors. The amount reflected in the Plan was higher than the $1.2 million, but based on actual estimates from Hartman Design Group. Rest Rooms, the Party Room, and other areas to be worked on are listed separately and can be voted on separately.
The FY 2011 Plan may include potential repairs associated with the canopies, ceilings, exterior light fixtures, and walls, ceramic tile, and masonry in the arcade. Lacking sufficient architectural and engineering studies, several items have been deferred including $139,000 for the repair of the riser section, and a one-year deferral of work on the horizontal pipes in G1. Mr. Horan will meet with Culp for a second bid on lighting fixtures. The item may be ready for consideration in September.
MOTION:
Dr. Muller moved that the changes be accepted for the purpose of discussion. The motion was held in abeyance to allow discussion of additional questions.
Ms. Fridell expressed her respect for Mr. Axelrad’s commitment to the honor of the Board, but noted that the $1.2 million figure for renovations was an arbitrary figure arrived at before conversations with designers and contractors. Considering the amount of work that is required, the total of $1.5 million reflected in the proposed Five Year Plan is not unreasonable.
Mr. Axelrad expressed concern over the amount of reserve funds projected in the Five-Year Plan. Based on the age of the building and other considerations he suggested that it would be prudent to maintain a reserve fund of $1.5 million at all times. Dr. Muller noted that Ms. Fridell has been authorized to negotiate a $1.0 million line of credit to be used for emergencies. Additionally, according to Ms. Fridell there is approximately $300,000 in the operating budget that could be diverted if necessary, although Ms. Fridell noted that it is more prudent to reserve those funds for other unforeseen costs which could arise.
Ms. Fridell asked the Legum & Norman representatives what the industry standard is for a minimum level of Reserve Funds. Mr. Rhodes responded that there is no industry standard; however, it is generally held that a Reserve fund should be maintained at a level equal to the highest individual capital expense projected in the Five Year Plan. While there is no single accepted standard for operating funds, some auditors may recommend a specific percentage of the condominium fees, while others suggest a minimum of three (3) months of condo fees. Ms. Fridell noted that this was the amount she had been targeting over the last fiscal year.
There was also discussion on the method of calculation of proposed increases in contributions to the fund and increases in condo fees.
MOTION:
Dr. Muller extended his motion to accept the president’s recommendations for changes, including contribution amounts.
In the discussion that followed, Ms. Kielty noted that 3 percent contributions began July 1, 2009, but that by spring when the Board will need to determine the percentage increase in condo fees, that perspective may have changed. It was noted by Mr. Cunningham that a Five-Year Plan is required for completion of the audit. Condominium fees will be set at a later date in the spring.
Mr. Axelrad pointed out that the contingency operating fund is below the level suggested by the experts cited by Mr. Rhodes. Ms. Fridell stated that she was comfortable with a minimum reserve figure that is generally in line with the average total annual expenditure projected in the Five Year Plan. In the association’s case, that figure equals $956,000, or approximately $1 million. She suggested annual increases in contributions to the Reserve of 5%/10%/5%/5% for each respective year of the proposed Five Year Plan.
There was no second for Dr. Muller’s motion and it was withdrawn.
MOTION:
Mr. Bressler moved that the Board adopt Ms. Fridell’s proposed contribution figures, or 5% for FY 2011, 10% for FY 2012, 5% for FY 2012, and 5% for FY 2013. The motion was seconded by Mr. Axelrad. After further discussion, the motion carried. (6-1, all Board Members voting in favor except for Dr. Muller)
Window-Cleaning Contract
Mr. Horan presented a bid from Extra Clean, the company that cleaned the windows last year. For cleaning of the exterior windows only, the bid increased by only $65 for a total of $4060. The addition of the canopy, three glass dome skylights in the arcade area, the pool, and the bulk trash area brought the total to $5300. Ms. Barth suggested the addition of the garage entry to the work order. Mr. Horan will discuss the addition of the garage window/skylight with Extra Clean. He estimates that the revised total will be $5700-6000.
MOTION Ms. Barth moved that the cleaning of the windows proceed, at an amount not to exceed $6000. Mr. Bressler seconded the motion. The motion carried unanimously.
Floor-Cleaning Machine
Mr. Horan reported that the Tennant floor-cleaning machine is in need of replacement or repair. Replacement would cost approximately $30,000. Repair would be approximately $3000.
MOTION:
Mr. Bressler moved to approve the repair of the floor-cleaning machine. The motion was seconded by Dr. Muller and carried unanimously.
When the machine is operable, it was suggested that G4 be cleaned.
Comments from the Floor
• A resident reported that she has received complaints about the cleanliness of the door knobs to the trash room. Mr. Horan will request that the cleaning staff maintain the door knobs.
• Ms. Barth noted that the appearance of the brass hardware on all apartment doors would benefit from polishing. Mr. Horan will inquire into the cost of having the work done by the company that refurbished the elevator doors.
• A resident pointed out that redecoration of the corridors, estimated at $611,000 will increase the total for redecoration over $1.5 million.
• A resident thanked the President for having made the association’s management contract with L&N available to her. She asked to whom she should direct questions regarding the Management Contract with L&N. Mr. Cunningham suggested that she submit her questions in written form and he will direct her to the appropriate party for answers.
• Another resident suggested that windows in the pool area may have failed, making expenditure for cleaning them unnecessary. Mr. Horan responded that upon completion of their work, Extra Clean will inform him of the condition of all windows cleaned.
• Mr. Bressler updated the Board on the status of the landscaping maintenance contract with Valley Crest. The contract is signed and the company performed their first day of work on August 11, 2009.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 p.m.
The initial draft of the minutes, upon which these minutes are partially based, was prepared by Gail Anderson of On the Record.
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 Rhodes ............President, Legum & Norman
John Algner ............Community Manager, Legum & Norman
Mike Horan .............Property Manager, Legum & Norman
Gail Anderson .........Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:38 pm. President Cunningham noted that although a meeting of the Board was not scheduled for August, several major issues require resolution and it was decided that a meeting was necessary.
Approval of Minutes
MOTION:
Mr. Axelrad moved to approve the minutes of the July 21, 2009, Board of Directors’ meeting as corrected. Ms. Barth seconded the motion. The motion carried unanimously.
President’s Report
Mr. Cunningham noted that a significant number of complaints have been received about the failure of some owners to accept responsibility for the behavior of their dogs. Mr. Cunningham appointed a residents’ committee to investigate the issue and make recommendations on what to do excluding any revisions in bylaws or house rules. The members of the committee are Ms. Eisler, Ms. Soderburg, and Ms. Alenier.
Before yielding the floor for the Treasurer’s Report, Mr. Cunningham stated that the financials for fiscal year 2009 are not yet complete.
Treasurer’s Report
Ms. Fridell stated that the Fiscal Year, which ended June 30, 2009, is in the process of being closed out. She explained that L&N has not been able to prepare July financial statements due to the fact that L&N needs final 6/30/09 figures from ECA in order to prepare the July statements.
Ms. Fridell reported that she is disappointed with the performance of Legum & Norman in the short time the association has been a client of the firm. She cited a demonstrated lack of responsibility, lack of “follow-up,” and a slow rate of response to requests and resolving pending transition issues. She noted that the association manages its reserves differently than other similar organizations, requiring more administrative activity, at least until the association consolidates its investments into its Wachovia CDARS account. She requested clarification on the following three points, which have been pending response for several weeks from L&N:
1. Who are the contacts at Legum & Norman,who will execute investment decisions; provide names, phone numbers and emails?
2. Who will prepare/update the Cash Management Report?
3. What is the procedure for execution of investment decisions by L&N staff?
Mr. Rhodes responded that Legum & Norman will strive to improve the situation. He expressed surprise that there was a question regarding the investment procedures as, prior to the signing of the contract, the issue was discussed at length. He noted that Legum & Norman makes investments by telephone or via the internet, and that it was his understanding that Ms. Fridell would be responsible for investing the funds as the Board directed. Ms Fridell’s perception was that Legum & Norman would complete the paperwork for all investments. Further discussions will be held to determine the contact person with whom Ms. Fridell will work.
Mr. Rhodes and Mr. Algner reported that most of their clients use brokerage houses to manage their investments. In most cases, the clients report less work, higher reserves, and reduced costs by using brokerage firms. The gentlemen did not recommend any specific firm. Ms. Fridell noted that the Association already has a brokered (zero cost) CD account at Wachovia and that even if the Association takes such an action, it will not be immediate; several Certificates of Deposit must reach their terms, and until those dates, an association representative must execute the investments.
New Business
Lobby Pipes
Jimmy Keating and Mike Horan met with Mr. Heath to discuss the renovation of the piping in the lobby. Clarification of the scope of the project and what is included in the proposal is required. The building engineer pointed out that some pipes marked for replacement in the proposal have already been replaced. Mr. Cunningham pointed out that some of the pipes are cast iron and have a long life expectancy. The condition of those pipes should be determined and a decision on whether to replace the pipes should be made based on projected longevity. When the work and redecoration are complete, it is desirable that no more replacement be necessary for approximately 25 years. An inspection will be performed to determine which pipes do not require replacement. Mr. Heath will be asked to determine the condition of the cast iron pipes.
Mr. Cunningham explained that a template cover contract is being prepared and asked if there were any objections to the provisions. There were no objections. The contract will be prepared and signed next week. The Board will hold a pre-mobilization meeting before the project begins.
The estimate for completion of the “store-front” area (at the Arcade) is $500,000. Mr. Cunningham proposes delaying work on the horizontal pipes in the arcade area where fire would cause less damage than in other portions of the building.
Ms. Kielty inquired about the process for reviewing contracts, and asked if all contracts still need to be reviewed by legal counsel. Based on a recommendation from Management, Mr. Cunningham suggested adding a contractor injury clause to the standard contract. Mr. Axelrad pointed out that the newly amended Maryland Open Meeting section of the condo law provides for discussion pertaining to legal counsel in executive session. Dr. Muller stated his opinion that the law referred to specific legal advice and not to a general discussion about consulting an attorney. Mr. Rhodes indicated that completion of the work will take approximately four (4) months. A start date has not been discussed. The work will start in the West Lobby and be completed in phases so that it does not interfere with decorating. It is likely that decorating will begin in January 2010.
Before pipe work can commence, concerns about insurance and indemnification for the community and Legum & Norman need to be resolved. It will be necessary to learn from Mr. Heath the amount of time that will be required to determine which specific pipes will not be replaced and the amounts that will be deducted from the estimate as a result.
Increased communication with the building engineer was encouraged. His input, based on his intimate knowledge of the building’s systems, can expedite the improvement process.
Five-Year Plan
Mr. Cunningham stated that the proposed Five-Year Plan was prepared based on projects that are ongoing or that are known to be necessary. Based on relevant conditions and changing priorities, the Plan and project schedules can be amended. It was noted that the building engineers manage excellent maintenance programs and inspections and are able to predict quite accurately the lifetime of equipment. Therefore, a “run-to-failure” policy is a reasonable approach to system replacements, rather than the approach assumed in the Reserve Study of ongoing maintenance to extend useful lives. If the consequences of a system failure are not significant, replacement of many systems can be delayed until failure occurs, thereby saving the owners money. The Plan, as proposed by Mr. Cunningham, spreads the cost of maintenance and allows flexibility to accommodate unexpected failures.
The Fiscal Year 2010 Plan includes amendments from the Fiscal Year 2009 Plan. These include:
• Reduction of estimate for lobby piping from $700,000 to $500,000
• Completion of emergency generator repairs - $300-350,000
• Deletion of $42,700 for tear-down of chiller. Work completed in FY 2009
• Defer the $57,600 allocated for G1 work over more than one year
• Defer the $70,000 G1 work for about three years to avoid re-mobilization costs
Mr. Axelrad commented that the Board had given its word that the total amount for the refurbishment project would not exceed $1.2 million and had made a commitment to complete the work for that amount and should not contemplate an increase. In discussion, other Board members commented that no bids have been received, no votes have been taken on spending, and no commitments have been made to vendors. The amount reflected in the Plan was higher than the $1.2 million, but based on actual estimates from Hartman Design Group. Rest Rooms, the Party Room, and other areas to be worked on are listed separately and can be voted on separately.
The FY 2011 Plan may include potential repairs associated with the canopies, ceilings, exterior light fixtures, and walls, ceramic tile, and masonry in the arcade. Lacking sufficient architectural and engineering studies, several items have been deferred including $139,000 for the repair of the riser section, and a one-year deferral of work on the horizontal pipes in G1. Mr. Horan will meet with Culp for a second bid on lighting fixtures. The item may be ready for consideration in September.
MOTION:
Dr. Muller moved that the changes be accepted for the purpose of discussion. The motion was held in abeyance to allow discussion of additional questions.
Ms. Fridell expressed her respect for Mr. Axelrad’s commitment to the honor of the Board, but noted that the $1.2 million figure for renovations was an arbitrary figure arrived at before conversations with designers and contractors. Considering the amount of work that is required, the total of $1.5 million reflected in the proposed Five Year Plan is not unreasonable.
Mr. Axelrad expressed concern over the amount of reserve funds projected in the Five-Year Plan. Based on the age of the building and other considerations he suggested that it would be prudent to maintain a reserve fund of $1.5 million at all times. Dr. Muller noted that Ms. Fridell has been authorized to negotiate a $1.0 million line of credit to be used for emergencies. Additionally, according to Ms. Fridell there is approximately $300,000 in the operating budget that could be diverted if necessary, although Ms. Fridell noted that it is more prudent to reserve those funds for other unforeseen costs which could arise.
Ms. Fridell asked the Legum & Norman representatives what the industry standard is for a minimum level of Reserve Funds. Mr. Rhodes responded that there is no industry standard; however, it is generally held that a Reserve fund should be maintained at a level equal to the highest individual capital expense projected in the Five Year Plan. While there is no single accepted standard for operating funds, some auditors may recommend a specific percentage of the condominium fees, while others suggest a minimum of three (3) months of condo fees. Ms. Fridell noted that this was the amount she had been targeting over the last fiscal year.
There was also discussion on the method of calculation of proposed increases in contributions to the fund and increases in condo fees.
MOTION:
Dr. Muller extended his motion to accept the president’s recommendations for changes, including contribution amounts.
In the discussion that followed, Ms. Kielty noted that 3 percent contributions began July 1, 2009, but that by spring when the Board will need to determine the percentage increase in condo fees, that perspective may have changed. It was noted by Mr. Cunningham that a Five-Year Plan is required for completion of the audit. Condominium fees will be set at a later date in the spring.
Mr. Axelrad pointed out that the contingency operating fund is below the level suggested by the experts cited by Mr. Rhodes. Ms. Fridell stated that she was comfortable with a minimum reserve figure that is generally in line with the average total annual expenditure projected in the Five Year Plan. In the association’s case, that figure equals $956,000, or approximately $1 million. She suggested annual increases in contributions to the Reserve of 5%/10%/5%/5% for each respective year of the proposed Five Year Plan.
There was no second for Dr. Muller’s motion and it was withdrawn.
MOTION:
Mr. Bressler moved that the Board adopt Ms. Fridell’s proposed contribution figures, or 5% for FY 2011, 10% for FY 2012, 5% for FY 2012, and 5% for FY 2013. The motion was seconded by Mr. Axelrad. After further discussion, the motion carried. (6-1, all Board Members voting in favor except for Dr. Muller)
Window-Cleaning Contract
Mr. Horan presented a bid from Extra Clean, the company that cleaned the windows last year. For cleaning of the exterior windows only, the bid increased by only $65 for a total of $4060. The addition of the canopy, three glass dome skylights in the arcade area, the pool, and the bulk trash area brought the total to $5300. Ms. Barth suggested the addition of the garage entry to the work order. Mr. Horan will discuss the addition of the garage window/skylight with Extra Clean. He estimates that the revised total will be $5700-6000.
MOTION Ms. Barth moved that the cleaning of the windows proceed, at an amount not to exceed $6000. Mr. Bressler seconded the motion. The motion carried unanimously.
Floor-Cleaning Machine
Mr. Horan reported that the Tennant floor-cleaning machine is in need of replacement or repair. Replacement would cost approximately $30,000. Repair would be approximately $3000.
MOTION:
Mr. Bressler moved to approve the repair of the floor-cleaning machine. The motion was seconded by Dr. Muller and carried unanimously.
When the machine is operable, it was suggested that G4 be cleaned.
Comments from the Floor
• A resident reported that she has received complaints about the cleanliness of the door knobs to the trash room. Mr. Horan will request that the cleaning staff maintain the door knobs.
• Ms. Barth noted that the appearance of the brass hardware on all apartment doors would benefit from polishing. Mr. Horan will inquire into the cost of having the work done by the company that refurbished the elevator doors.
• A resident pointed out that redecoration of the corridors, estimated at $611,000 will increase the total for redecoration over $1.5 million.
• A resident thanked the President for having made the association’s management contract with L&N available to her. She asked to whom she should direct questions regarding the Management Contract with L&N. Mr. Cunningham suggested that she submit her questions in written form and he will direct her to the appropriate party for answers.
• Another resident suggested that windows in the pool area may have failed, making expenditure for cleaning them unnecessary. Mr. Horan responded that upon completion of their work, Extra Clean will inform him of the condition of all windows cleaned.
• Mr. Bressler updated the Board on the status of the landscaping maintenance contract with Valley Crest. The contract is signed and the company performed their first day of work on August 11, 2009.
Adjournment
There being no further business brought before the Board, the President adjourned the meeting at 9:26 p.m.
The initial draft of the minutes, upon which these minutes are partially based, was prepared by Gail Anderson of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Saturday, August 15, 2009
Summary of August 2009 Elizabeth Condo Board Meeting
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.
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.
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