Halloween at the Elizabeth 2009

On October 30, 2009, the Elizabeth social committee in partnership with Mr. and Mrs. Mike Horan threw a Halloween party for the children of the Elizabeth and some of the grandchildren of residents. One resident who has lived here a couple of times and is now back again said this was the best Halloween party she and her son had ever attended. Mike Horan, our new site manager and his wife, brought their collection of Halloween decorations for everyone to enjoy. There was a bubble machine, a remote controlled gnome,
a moving spider, and many other wonderful and scary things to examine.

Elizabeth staff Hollis and Marcel applied tattoos to the hands and arms of those who wanted them.

Games were played.

And the children and the adults were invited to partake of cupcakes and ice-cream as well as what makes the American Halloween what it is -- CANDY. Trick or Treat!

September 2009 Minutes of ECA Board Meeting

THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815

Minutes of Board of Directors Meeting September 15, 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 .............Property Manager, Legum & Norman
Martha Morris .........Recording Secretary

Call to Order: Mr. Cunningham called the meeting to order at 7:35 pm.

President’s Report
• Mr. Cunningham welcomed everyone and noted there are several significant projects now underway.
• Staff is available for residents’ comments and concerns.
• There were some glitches in the transition to the new financial system but they are being resolved.
• The Association is already seeing some cost savings from obtaining competitive bids on contracts.
• Management has changed procedures for major contracts and developed an addendum process that will protect the Association.
• Several major contracts are underway:
o AD Heath Company is conducting an evaluation of the horizontal piping replacement work that will be done on the lobby level
o Refurbishing Committee will make a report tonight
o We are about to start on the façade improvements approved at last meeting
o emergency generator contract; Legum & Norman can help speed this along
• Urged residents to get involved in committee work

Approval of Minutes

MOTION Dr. Muller moved to approve the minutes of the August 11, 2009 meeting as presented. Ms. Barth seconded the motion. The vote to approve was unanimous.

Treasurer’s Report

• Will no longer provide analysis of monthly and YTD results as Legum & Norman provides this in its monthly report.
• Noted a doubling in amount of delinquencies; it is hoped this is due to residents’ sending their payments to the old lockbox; asked Management to research this.
• Repeated her requests that L&N restate income statement presentation by adding a line item to for one-time extraordinary expenses related to the transition to outside management;and reclassifying transition expenses, including legal fees and severance costs.
• Prepared written Investment Procedures, revised as a result of transition to L&N, to be presented to Board for approval tonight.
• Dr. Muller inquired about the status of an application for a $1 million line of credit requested at an earlier Board meeting. The Treasurer indicated that she has not yet researched this project.

Old Business

Mr. Horan reported on three major contracts:
o AD Heath Company is evaluating the horizontal piping project. Notices will be sent out with the project start date.
o The façade work will begin at the end of September on Tiers 14 and 15.
o He and Mr. Algner are working with engineer Robert Faas to facilitate upgrading the emergency generator.

Mr. Algner reported on the following:
o There will be a pre-mobilization meeting at 1:00 pm on September 23 to discuss the façade work.
o After discussion with legal counsel on the draft AIA contract, he recommends that the references to arbitration be removed, which is standard at other associations. He recommends that the Board accept the contract as revised.

New Business

Garage Lighting — Mr. Horan reported that he has received two proposals for replacement of the lighting in the garage and stairwells with a third anticipated. He recommends Derick Associates because they will pass on an $11,000 Pepco rebate to the Association, they were able to provide a cost per fixture, and they estimate that the Association will save $37,315 in five years ($7,463 per year). He expects the brightness with the new fixtures to be the same or slightly better.

MOTION Dr. Muller moved to accept the proposal from Derick Associates for replacement of the lighting in the garage and stairwells with more energy-efficient fixtures at a cost not to exceed $28,100. Mr. Axelrad seconded the motion. The vote to approve was unanimous.

Residents’ Door Locks — Mr. Horan reported that a resident was unable to access his unit due to failure of the door lock. This represented a dangerous situation as the resident on separate occasions was locked outside then locked inside his apartment. Due to the age of the locks, they cannot be replaced nor are parts available for repair. Federal Lock and Safe has determined that the current door lock can be disabled and a new dead bolt can be added at a cost of $351. As a safety precaution, Management would like to inform residents of the options available and give them contact information for Federal Lock and Safe to allow residents to correct the problem individually, as door locks are the responsibility of unit owners. The new hardware will look similar to the existing materials. Ms. Barth said she would arrange for Mr. Horan to receive the information on the door hardware being considered by HDG so the new locks and new hardware are matching.Ms. Barth added that the Refurbishment Committee has looked into the possibility of replacing doors and locks; doors appear to be out of budget range but new hardware is being considered. Mr. Horan also offered to find a reliable, reasonable after-hours locksmith and place contact information at the front desk in case other residents also encounter a lock-out.

Landscaping Presentation – Mr. Bressler

Mr. Bressler arranged for a representative from Merrifield Garden Center to address the Board and community with ideas for a new landscaping design. Mr. Tom Wallerich distributed drawings to the Board and presented his various ideas for plantings in gardens around the building. . After his presentation, the Board agreed that they will need to place his proposal into the context of the current year budget. Mr. Horan distributed the specific proposal to Board members for consideration at a future Board meeting Also, it was mentioned that Landscape Maintenance was previously approved, with the contract awarded to Valley Crest.

Security System — Dr. Muller

• Door to lobby keeps jamming open; Mr. Horan is working on a resolution. The refurbishment may include new electronic doors.
• Some residents have reported that their visitors are still not always being announced. Mr. Horan will be meeting with all Front Desk staff to review procedures.
• Security Patrol – Mr. Horan and Mr. Cunningham have established an 8 pm – 4 am night shift schedule. This will ensure that residents will have an escort available to storage bins and from the garage at night and that the front desk position will be filled while the clerk is on dinner break.
• A resident had submitted a written report to the Board concerning a vehicle in the garage that the resident reported was leaking gasoline. Mr. Horan resolved this particular incident, but Dr. Muller has asked the security guard to note any vehicles in violation of the rules and report them to Mr. Horan for action.
• Mr. Horan is reviewing the Association’s security system, beginning with cameras. Mr. Horan reported that See View Security analyzed the security cameras and recording system. They are suggesting replacing the outdated tape system with a digital (DVR) system. As a second step, they recommend changing the cameras if the recording quality does not improve. They will upgrade one camera as a test. Mr. Horan will obtain at least one more bid for this work.

Committee Reports

Exercise Committee – Alexandra Kielty
Ms. Kielty reported that a summary of the results from the survey was distributed to residents today. 85 responses were received. The committee will hold another open meeting. The committee will obtain proposals for equipment replacement. The budget allows for replacement of pieces of equipment but not for refurbishing the exercise room. The committee hopes to have Hartman Design Group review the exercise area but expects a full renovation would not be feasible for 2-4 years.

Refurbishment Committee – Judith Barth
Ms. Barth noted that while the committee did not meet this past month, Hartman Design continues to work on the design plan for The Elizabeth. Next week the firm will present choices for fabrics and other design elements. The committee will then meet with the Advisory Committee for their review and evaluation. Ms. Barth expects that she will have design boards to present at the October Board Meeting.

Energy Conservation – Joan Rosenbach
The committee met on August 27.
• A new subcommittee was established to recommend an engineering contractor to the Board to provide recommendations for energy-saving measures and estimated payback.
• The committee welcomes additional members.
• The Association will sell Compact Fluorescent Light bulbs to residents at a discounted bulk price. Notices will be posted in elevators.
• Received an estimate of $3.2 million for new windows and doors. No action is required on this; the committee is just gathering information.
• Board Treasurer Fridell met with the committee and made a presentation on issues and options related to financing the purchase of energy-saving equipment.

Pet Committee – Tobi Esler
Ms. Esler reported that the committee had met twice and is focusing on House Rule 15B, which requires that pets be registered with management. The committee recommends that a new form be distributed to residents to ensure the list is up to date and complete. The committee asked management for copies of sample pet rules from other properties for their review and plans to have recommendations for the Board’s October meeting. The committee had asked management to place a notice in the elevators reminding pet owners of their responsibilities and plans to distribute more such reminders in the future.

Other New Business

Floor Reps – Tobi Esler
Ms. Esler reported that she and Stephanie Olshan are Co-Chairs. They met with Mr. Horan on September 10 and explained the purpose of the committee, which is: 1) to welcome new residents; 2) to keep management informed of resident concerns; and 3) to collect proxy votes for the Association’s annual meeting. The committee is working on adding items to the welcome packets. Also, they asked management to post bilingual signs in the trash rooms reminding residents and others who use them about proper bagging and disposal procedures.

Other
Ms. Kielty asked about the status of the pool area plants. Mr. Horan recommends removing them. Ms. Gann noted that these plants belong to residents and should be offered to them before disposing of them.

Ms. Kielty asked about the status of the fan blower in the pool area. Mr. Horan will look into it.

Ms. Fridell reviewed a memo she had distributed to the Board regarding investment procedures for Reserves. The current account is at Wachovia Bank in “brokered CDs” in a program called “CDAR.” Legum & Norman and the auditors are recommending that all investments be consolidated under one roof and Ms. Fridell is recommending that as the several non-Wachovia CDs come due over the next 7 months, that they be transferred to the Wachovia program. She recommends against cashing in any CDs prior to maturity due to penalties that would be imposed. By April 2010 all investments will then be consolidated. At that time, if the Board wishes to consider moving the entire investment portfolio, they can do so.

MOTION Mr. Bressler moved to adopt Ms. Fridell’s recommended Investment Procedures. Mr. Axelrad seconded the motion.

Discussion. Mr. Algner noted that John Rhodes, president of Legum & Norman, had proposed investment procedures and that he is in agreement with the Board’s actions. Mr. Cunningham added that he also recommends this procedure and that the Board is welcome to discuss if it wants to change brokerage firms once the investments are consolidated by April 2010. The vote to approve was unanimous.

Residents’ Comments

• A resident complimented Mr. Horan on the job he is doing so far. She noted that some residents have already replaced their door locks. She also noted that some of the original toilets are breaking and flooding, and asked management to obtain a bulk rate for owners to replace this item. She asked if the leases that are presently used by owners comply with Maryland and county laws. The Board confirmed that they do. The resident also asked that Legum & Norman research tax credits available from the federal and county governments for energy conservation measures and how to finance such expensive projects.
• Two residents debated the first speaker’scomplaint that the second speaker did not relinquish the exercise machine he was using to her after 20 minutes as required by the rules. The second speaker said he offered the machine to a resident in a wheelchair and disputed the facts recited by the first speaker, who thereafter reiterated her statements.
• A resident commented that the tax credits for window replacement will expire in 2010. He also asked about the positioning of the cameras in the elevators and noted that a vendor had been in the exercise room today repairing some of the equipment.
• Mr. Cunningham stated that House Rules should be followed and that if residents have complaints, they should bring them to the attention of management. Secondly, he noted that the Association has established procedures for resolving disputes between residents that can be invoked if necessary.
• A resident reported that an individual on a walker or in a wheelchair cannot get past the first piece of equipment in the exercise room because the equipment is too close together.
• A resident who is new to the community suggested that the Association might consider forming a Finance Committee.
• A resident cautioned that the responses of the exercise facilities survey should be divided into two groups: those who use the facility and those who do not. Residents who do not use the facility might not be as willing to spend funds on amenities such as televisions when those who do use the facility might be in favor of such an option. Secondly, the resident said that dog owners are entitled to respect. Thirdly, she noted the need to follow the pet rules in light of the upcoming refurbishment project.
• A resident agreed that residents should clean up after their dogs but that residents should also be polite to pet owners.
• A resident passed on a compliment to Ms. Fridell.

Next Meeting

The next meeting of the Board of Directors will be held on October 20, 2009.

Adjournment

There being no further business brought before the Board, the President adjourned the meeting at 9:50 pm.

Martha Morris, Recording Secretary, prepared the initial draft of these Minutes.

Respectfully submitted,
Jeffrey Axelrad, Board Secretary

ECA Reserve Study: Remarks of Concern

[This paper, dated October 10, 2009, comes from Ted Ariev. Text in bold is strictly the author's emphasis. Mr. Ariev is a long time resident owner at the Elizabeth and has a strong background in engineering, architecture, and construction.]


In January 2009, Reserve Advisors, Inc. submitted a Full Reserve Study of The Elizabeth to the Board of Directors. This Reserve Study was based on a visual, noninvasive inspection conducted in November 2008. The study included an assessment of the condition of the building structure, systems and equipment; and the estimated useful life, remaining useful life and the replacement cost of these items.

The purpose of the Reserve Study is to provide a budget planning tool to address anticipated future major expenditures. This Study does address most of the major building elements and equipment. However, either at the direction of the Board or through oversight the Study did not address the exterior concrete and balcony issue or the replacement of the McQuay fan-coil units. Further, due to limited observation of existing exterior conditions only, Reserve Advisors, Inc. did not fully appreciate the necessity for replacement of the windows and sliding doors.

The following addresses these issues with the intent that funding be added to the Five Year Plan in order to accomplish the work necessary to assure an adequate environment and life style for the residents of The Elizabeth.


EXTERIOR CONCRETE AND BALCONIES

Recently, the noise and disruption at the Willoughby brought to mind a long standing and potentially very serious problem. In the 1970’s, the concrete used in buildings incorporated a type of cement that caused deterioration of the concrete when exposed to moisture and subsequent rusting of the reinforcing steel. This problem is endemic. It is only necessary to look at the Willoughby and our own experience in the garage. Prohibiting the use of floor coverings, and painting the concrete on the balconies will not prevent this problem from occurring. There are simply too many chips and cracks that allow the concrete to be exposed to moisture. The exterior concrete on our building, most of which are the balconies, will deteriorate and will require extensive repair, similar to that implemented in the garage and at the Willoughby.

A significant number of the balconies in the building were built with the slope of the balcony floor either flat or sloping towards the sliding doors, rather than away from the building. This causes wind driven rain on the balcony to either stand on the balcony slab, or much more seriously, pond against the door. Occupants presently sweep the standing water off the balcony causing staining on the brick and a great deal of dirt and refuse on the balconies below. The water allowed to stand against the door will eventually migrate through the sealant into the concrete slab (please see previous paragraph), and into the unit damaging any finish flooring, wood, carpet, etc. A few years ago, this problem was acknowledged and remedial work was included in the Five Year plan. It was not implemented, nor is it included in the present Five Year Plan.

It is essential that funds be provided in the Five Year plan to address the exterior concrete and balcony issues without further delay.

REPLACEMENT OF THE McQUAY UNITS

The age of the building and the condition of the McQuay fan-coil units indicate that the units will fail at an ever increasing rate and require replacement. The drain pans are rusting, and the coils, valves and piping in the units are subject to leaking. The humidification system was turned off years ago to prevent damage within the apartment units.

Apparently the issue is not whether the fan-coil units need to be replaced, but by whom and how it will be paid for. The Board of Directors believing the replacement of the fan-coil units a direct responsibility of the owners; choose not to include the cost of replacement in the Reserve Study. This is disingenuous. The owners will pay for replacement of the fan-coil units, whether it is included as part of an overall building maintenance program, or done individually and at different times by the owners. The issue then becomes what is the most cost effective and technically prudent way to proceed with this work.

Recognizing that the units do require replacement, accomplishing this work as a coordinated effort would certainly be more cost-effective (the bigger the contract, the less expensive it will be), but would also permit providing an upgraded system consistent with present technology. It would permit the new system to address heating, cooling, and ventilating requirements that replacing the units on an individual basis would not.

There is no question that replacing the units on an individual basis is possible, and has in fact been the process for accomplishing this work to date. However, continuing this process will result, when all the units have been replaced, with essentially having exactly the same heating and cooling system we have now, a 1970’s system.

We would be seriously remiss if we did not take the opportunity to address the ventilating, humidification and controls systems that we are presently lacking. We would also be able to better coordinate the new fan-coil units with an upgraded and more efficient overall building system. Lastly, approaching this issue on an integrated and overall basis would also be much less expensive than replacing the fan-coil units individually. We should start this effort now.


WINDOWS AND SLIDING DOORS

The existing windows and balcony doors are original to the construction of the building, and although they appear to be in fair to good condition, are nearing the end of their expected useful lives. The Reserve Study addressed the issue of window and sliding glass door replacement. They concluded that the windows and doors would need to be replaced starting in 12 years. This conclusion was based on a limited observation of existing conditions.

Although they are not about to fall from their frames, a significant number of sliding window units are presently inoperable. There are occupants of the building who cannot presently open their windows, or choose to cover them (making them inoperable) in order to control cold, wind and rain infiltration. The failure of the windows in this manner will increase. The inability to open windows combined with the absence of any ventilating system in the units has an extremely negative impact on health and environment issues for occupants. The mold issues are a prime example of this problem. There is also the less critical, but nevertheless, significant issue of aesthetics. The condition of the window and door frames appreciably diminishes the appearance of the building and thus the property value of our units.

The Reserve Study estimated an escalated cost of $8,138,460 for replacement of the windows and doors. More significantly, they note the current cost for the replacement at $5,641,600. This amount, $5,641,600 apparently compares to a cost of $2,394,800 estimated by the Energy Audit consultants.

Maurice Trebach has met with two window subcontractors to gather additional information. These meetings have resulted in confirmation that high-quality; double-pane, insulated, aluminum frame replacement windows and sliding glass doors with thermal breaks are available and would be effective. The subcontractors have offered estimates of the costs, but they are based on different products, and incomplete available information. However, based on his conversations, it is reasonable to assume the cost for replacing the windows and sliding glass doors now would be approximately 3.5 to 4 million dollars. This is consistent with the estimate included in the Reserve Study. It is somewhat lower than that provided in the Reserve Study, but is based on better information and experience.

Based on the present condition of the windows and doors, improved heating and cooling system effectiveness, energy cost savings, reduced noise transmission, proper ventilation system balancing, and improved property values, a program to replace the windows and doors should be implemented without further delay.

Funds to retain an architect to assist the Board in developing an implementation program; there are a number of ways to proceed, and then to prepare bid documents, should be authorized now.


FUNDING AND SCHEDULE

In a building of this age and condition, there are innumerable calls for funding for long-term maintenance issues. The Reserve Study generally addressed them. The three issues noted above were either not addressed in the Study or not assigned adequate urgency. “Deferred maintenance” is the most expensive and least desirable way to approach maintenance issues.

The issues of repair of the exterior concrete and balconies, the replacement of the McQuay units, and the replacement of the windows and doors must be addressed in the Five Year Plan.

Sooner is always less expensive than later, and funding will never again be cheaper.

If a resident of The Elizabeth were living in a single-family house, there would be equally significant financial issues to be addressed. After 35 years, the house would have had a couple of roof replacements, the siding, if not masonry, would likely have been replaced, there would have been some structural repairs, the heating and cooling system would have been replaced or upgraded, the windows and doors would have been replaced or this work would be imminent in addition to whole series of expensive maintenance projects. There would be little question of funding. This work would be done or the resident would be living in squalor.

Do the residents of The Elizabeth want to live in squalor?

ECA Pet Policy -- Suggest House Rules Revision

The following revision of the Elizabeth House Rules suggested and recommended by the ECA Pet Policy Committee is part of a larger report that was submitted to the ECA Board of Directors on October 13, 2009. The report and the following House Rules revision can obtained from the Management office or the front desk in the lobby. Text set in bold font highlights suggested changes.

SECTION 15. PETS

A. Permissible Pets

All animals are prohibited pursuant to Article X, Section 3 (e) of the Bylaws, except caged birds and a “small, orderly” dog or cat. Small dogs are defined as those that do not exceed 25 pounds at full maturity. Within reasonable limits, service dogs are exempt from the weight rule. [Dog owners, including renters, who have dogs exceeding the specified 25 lb weight limit at the time this policy is enacted, or whose dogs at maturity will exceed this limit, have 30 days from the effective date of the policy to register their dogs and become exempt from this weight limitation.]

B. Registration

Each pet and service dog shall be registered with Management on forms provided by Management and each pet inoculated as required by law. A pet owner must file the Elizabeth registration form, including a photo of the pet, prior to move-in or, in the case of an established resident, upon possession of said pet. If a pet owner fails to register the pet within 15 days of the owner bringing the pet into the building, the Board of Directors will levy a $50 fine. Visiting pets that will be cared for by a resident owner must obtain permission in advance from Management and register the pet at least 48 hours in advance of the pet coming into the building. Visitng pets also are limited to 25 pounds at maturity. Maximum stay for a visiting pet should not exceed two weeks. New renters may not have pets. It is the responsibility of the non-resident owners to ensure that their renters comply with the no pet policy before a renter moves in.


C. Hand-Carried or Short-Leashed

Pets shall be hand-carried or short-leashed by the pet handler’s side in common areas including elevators. No more than a single pet may be on an elevator at one time. An occupant accompanied by a pet shall yield the right-of-way to occupants not accompanied by pets both in elevators and in common areas. Service dogs and their owners shall have priority for elevator use over another occupant with a pet.

D. Curbing of Dogs and Cats

Pets and service dogs shall be curbed on any condominium property, including the garage levels, common areas and adjoining sidewalks and driveways. Anyone accompanying a pet(s) in any common area, including the grounds of the Elizabeth, must carry appropriate materials (plastic bags, paper, etc.) so that cleanup can be done promptly and effectively. If an accident occurs, the pet owner or pet caretaker must clean up the property immediately or the pet owner will be assessed a $50 fine for each pet accident as determined by the Board of Directors. In the event of recurrence, without immediate cleanup, the Board has the option of declaring the animal a nuisance and order that it be removed from the condominium.

E. Removal

Pets are permitted by resident owners and renters requiring a service dog [and renters who already have pets living at the Elizabeth when the new House Rules go into effect. However, once the exempted pet dies, the renter will not be allowed another.] only as long as they behave in such a manner as not to disturb or be offensive to other residents. If a pet disturbs any resident by whining, barking, biting or acting aggressively, and the disturbance is not corrected after written notice from the Management, the Board of Directors may declare the pet a nuisance and order that it be permanently removed from the condominium.

F. Responsibility

Pet owners shall assume full responsibility for all personal injuries or property damages cause [sic] by their pets. The Association assumes no responsibility for any loss, claim or liability of any kind relating to a resident’s pet.

Summary of October 2009 Elizabeth Condo Board Meeting

Highlighted in the October meeting of the Elizabeth Condo Board were these points: bulk rate for replacing locks on apartment front doors; discovery of asbestos in pipe coverings; new security cameras, energy efficient lighting for the garage; recommendations from the pet policy committee.

Present at the meeting these Board members President Woody Cunningham, Judi Barth, Charles Bressler, Monique Fridell and Al Muller and the following Legum & Norman representatives: Scott Murdoch, Senior Community Manager (newly assigned to the Elizabeth. He is the site manager of the Carleton in Friendship Heights) and Mike Horan, ECA Site Manager

Text that appears in italics has been taken verbatim from the October Management Report prepared by Mike Horan.

Management met with Hartman Group and Federal Lock and Safe to determine which lock will best fit with the future floor renovations. Management selected Federal Lock and Safe based on pricing and previous experience with the company. Federal Lock will provide a bulk discount, and a sign up sheet will be made available for residents wanting their locks changed. In addition to the information in the Management Report, Mike Horan stated that the cost of the lock replacement will be $265.

The first floor pipe replacement is well underway, by A.D. Heath, our contractor. During the initial phase Heath discovered asbestos in some of the pipe coverings. This discovery may push the project completion date into early next year. The asbestos removal will not raise environmental or air quality concerns. Removal will be done by professionals using industry standards and techniques. With regard to the need for asbestos abatement in connection with the first floor pipe replacement by AD Heath (as addressed in the Management Report), the contract was approved for $39,600, to be managed by AD Heath. Woody Cunningham emphasized that this will not pose any health hazard.

The exterior facade work that was approved for the 14th and 15th tiers has commenced and will continue through the middle of November. Residents in those areas have been notified.

See View Security has completed the installation of a new DVR system for the security cameras. Two of the older cameras were replaced resulting in an immediate difference in picture quality and clarity. Management recommends that all remaining black and white cameras be replaced with new digital color cameras. The Board approved a contract for $4800 to replace the 22 current security cameras with a new digital DVR system. This will include two additional cameras in the arcade and will allow us to recover data quickly in terms of times and locations. The Board also approved the expenditure of funds for two new monitors at the front desk in an amount estimated at approximately $2000.

Derrick Lighting will begin replacement of the garage lighting within the next two weeks. These lights will be brighter and use about 40% less energy. The Elizabeth should recover these costs through energy savings within 5 years.

Although expenses for L&N over the past three months are $2400 over the expenses under self-management, Al Muller pointed out that we already have a surplus of funds in excess of $90,000 due to L&N management.

David Drazin, of the Energy Committee reported that it now has a subcommittee which is engaged in finding engineering firms to help with projects coming up in the future. They have contacted 5-7 firms to see if they would have interest in consulting with us. Additionally, David reported that the committee is looking into purchasing wind energy through Pepco and is reviewing the resources and service offered by Bethesda Green to see if we could benefit from them.

Tobi Esler reported on the work of the Pet Policy Committee. The Committee has submitted a written report to the Board, and copies were made available after the meeting. Copies may also be obtained in the Management Office. The Committee recommended that all pets be registered using a new form (the form currently in use in the Carleton) and attaching a photo of the pet. The Committee also recommended amendments to the House Rules as these apply to pets, and a referendum on pets at the annual Association meeting in May.

Treasurer Monique Fridell mentioned that she is looking into lines of credit for the Elizabeth, both as backup lines of credit, and those appropriate for particular projects.

The Board approved establishment of a brokerage account for the Elizabeth with Morgan Stanley, and the transfer of our securities to this account immediately. This account will remain under the control of the Treasurer. The fee for this service will only be approximately $150 per year.

Landscape Design: The Board agreed to obtain a second proposal for landscape design. Charles Bressler will be contacting a Landscape Designer in this regard.

Social Committee: Judi Barth announced the following upcoming events:

October 30: a Halloween party for all children and grandchildren of Elizabeth residents on October 30. Mike Horan will decorate.

November 22: Sunday Brunch with an omelet maker. The Redskin-Dallas game will be shown on the big TV. There will be a nominal fee for attendance, as there was last year.

December 4: Box party to fill 300 boxes for the homeless – coordinated by Peg Downey in the West Lobby.

December 13: Annual Holiday Party

Renovation: Judi Barth said that the Refurbishment Committee met with the Hartman Design Group on September 22 to view the finishes and Phase II plans for the lobby, concierge area, party room and modernization of the rest rooms. The rest rooms will be ADA accessible, and this has already been approved by Montgomery County. She emphasized that since the plans are still a moving target, the Committee is not yet ready to present them to the Association members. The Refurbishment Committee presented the plans and finishes to the Refurbishment Advisory Committee, who were very pleased with all and gave them an enthusiastic endorsement. Judi described the new look as elegant, sophisticated, warm and inviting, and said that once installed, we will become the “pride of Chevy Chase.”

Hartman Design group is now in Phase II, and working on plans for the General Contractor. She is hoping that the installation will begin by February 1, pending completion of work on the first floor pipes.

Woody mentioned that renovation efforts are being closely coordinated with the first floor piping repairs and asbestos abatement project.

Over the next few weeks, Management will be meeting with all building staff, both as a group and individually, to go over performance expectations and discuss ways to optimize customer service.

The Board asked Mike Horan to look into getting a bulk discount rate for replacing toilets in individual apartments. Owners are reporting more and more leaking toilets that cause damage not only to their apartments but to others around and below them.

Management is looking into bilingual signs for the trash areas.

A resident suggested that people go to Strosnider's Hardware Store and buy moisture detectors to idenitify unexpected leaks from failing McQuay heating/cooling units. The devices cost about $15.

Al Muller discussed the possibility of purchasing a blood pressure machine (cost is $5,000) for the exercise room. It was pointed out that the Friendship Heights Village Center has a visiting nurse once a week who performs such services and that blood pressure machines can be found at local Giant Stores and Safeways.

The Board scheduled the next meeting for Thursday, November 19. At that meeting, the Board will set a new schedule of dates for coming meetings.

Summary of September 2009 Elizabeth Condo Board Meeting

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.

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