Present at the meeting: Woody Cunningham, Jeffrey Axelrad, Judi Barth, Charles Bressler, Monique Fridell, Alexandra Kielty, Al Muller (late), Scott Murdoch, Mike Horan, recorder of meeting minutes.
The most important item of this board meeting was that the Board unanimously approved renewal of the Legum and Norman contract for another year.
Items of interest:
--Renovation work will start on lobby level May 15- June 1. Unwanted furniture will be offered in a silent auction to residents and what is left over will be donated.
--$1800 spent for a system to rid the roof of pigeons.
--Air conditioning has had some problems related to a pneumatic valve.
--Emergency generator still having permit problems because where it is to be housed wasn’t up to specifications.
--New hire for the front desk to replace Suaad. Girma Wordofa has also worked at the Willoughby.
--Board instructed onsite manager to ensure that every visitor is announced without exception.
--Bios of Board candidates will be placed in resident owners’ boxes at the front desk in time for the Meet the Candidates program. Otherwise the notice of annual meeting along with proxies and bios will be sent out this week. [Note: this is behind the schedule set by the Elections Committee and approved by the ECA legal counsel.]
--Landscape Committee must be resurrected according to Board instructions to Charles Bressler.
Upcoming Dates of Note:
04/21/10 Meet the Candidates (7:30 pm, West Lobby)
05/05/10 Annual Meeting
05/10/10 ECA Breakfast sponsored by Whole Foods
(new Friendship Heights Store opens 05/18/10)
06/10 ECA BBQ
Tuesday, April 20, 2010
March 2010 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting March 15, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Jana Bowcut ............Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:33 pm.
Approval of Minutes:
MOTION Ms. Barth moved, Mr. Bressler seconded, to approve the February 22, 2010, meeting minutes. The motion passed unanimously.
President’s Report:
Mr. Cunningham stated that two presentations were planned for the meeting regarding landscaping and the website. He added that the Board is currently working on the FY 2011 budget, which will be discussed briefly during the meeting. Under Legum & Norman management, the Association is significantly under-budget in operating expenses, with the exception of utilities. He stated that there have been steep increases in gas usage in the last couple of months and that the Association should focus on conserving energy.
Four new board members will be elected this year, and Mr. Cunningham encouraged qualified residents to run for the open positions.
Treasurer’s Report:
Ms. Fridell stated that she had no formal comments; however, she had asked a number of questions about the Management Report via email which she expected would be answered during the course of the meeting.
Old Business:
Presentation #1: Landscaping
Mr. Bressler introduced Gerald Rupert from Rupert Landscape Design who presented drawings of a proposed landscape design.
Mr. Rupert noted that most of the current landscaping is in good shape, but consists of many evergreens, which do not give a lot of color. Features of the proposed plan include:
• To the right of the entrance, holly bushes will be replaced with camellias.
• To the left of the entrance, holly bushes will be replaced with a variegated aucuba.
• In the half circle area a light will be installed to highlight the cutleaf Japanese maple at night. Plants such as cypress and fireworks grass would be added, as well as plenty of annuals to provide color.
• Belgian granite curbing would line the half-circle area and prevent cars from running over the plantings. The curbing would sit six inches in from the driveway and would drop four inches into the ground.
• In an area between the street and the building, a pink flowering dogwood would be planted between two existing white birch and oak trees. Pygmy barberry and fountain grass would be added to the area, in addition to transplanted rose bushes taken from the right of the front entrance. A trellis will be built for clematis to grow in front of the wall.
• By the Elizabeth sign, creeping jenny and ice plant would be planted. The leaning cypress would stay.
• The contents of the 5.5 foot planter strip in the back would be removed and a pattern of different colors of gravel and bamboo would be put in to resemble a Japanese garden. This would be attractive to the residents whose windows look out over this area.
A resident inquired if there were plans for landscaping the arcade area. Mr. Rupert explained that these plans did not include it, but he would suggest mulching the area and using a pressure washer to clean off the walkways.
Ms. Barth asked what Mr. Rupert would suggest for the back planter strip instead of a Japanese garden. He responded that because the area is so heavily shaded only plants such as ferns or yucca would thrive.
A resident stated that the current landscaping does not look particularly manicured and asked if that would change with the new design. Mr. Rupert responded that it would. The resident also asked if the granite curbing would keep people from walking their dogs in that area. Mr. Rupert stated that it would not and that it would be useful to place some dog signs.
Mr. Cunningham stated that the proposed drawings will be displayed for residents to look at more carefully.
Presentation #2: Web site
Samuel Kim, the IT Chief from Legum & Norman, presented the Board and residents with an overview of CommunityLink, an on-line service for associations to maintain their own Web sites. Mr. Kim suggested that the Web site be maintained by a homeowner, and only a Microsoft-Word-Level knowledge is needed to operate it. Responsibility for the site could be held by several individuals and training would be provided by Mr. Kim.
Everything posted on the Web site is secure, and requires each user to register and select a username and password. Participation is voluntary, and residents can choose to not be part of the system. Features of the website include:
• Tech support provided by Legum and Norman.
• A search feature.
• A community calendar on which to post association events.
• Online forms, including work orders, which can be filled and submitted on-site.
• A messenger service that would send out e-mails to the Association.
• A resource center that contains association documents: board minutes, financials governing documents. Management would be responsible for uploading these documents to the site.
• Community news.
• Classifieds.
• Managerial reports that provide information about the site such as number of users who are logged on, number of visits, number of pages viewed and number of people who have registered.
• Discussion groups.
• Online payment of condominium fees.
• Ability to upload pictures, video files or flash files.
Mr. Axelrad asked if communities typically charge for posting listings to the classifieds. Mr. Kim stated that that is up to each community. Mr. Axelrad also inquired if there was a way of notifying an owner that a package had arrived, to which Mr. Kim responded that it could be done through the Messenger feature. Thirty-eight Legum & Norman communities use this program, but few use it for package delivery notification because they do not all have front desk services. Mr. Kim stated that the Association, not individual residents, would pay a modest start-up and a monthly fee for the site. If the Association would like to make the on-line payment of condo fees available to its residents, there is an additional $100 fee.
Mr. Murdoch stated that the success of the site depends on the number of residents who use it. Ms. Kielty asked about whether neighboring buildings use the service, to which Mr. Murdoch responded that the Carlton does not use it, and he is unsure about #4620 North Park Avenue. A resident noted that the Web site would be a useful feature, particularly for those residents who go away for periods of time.
Concern was expressed that many residents may not own a computer and that perhaps a survey should be conducted to determine how many own a computer and what the interest level might be. A resident who maintains a community blog stated that approximately seventy to eighty of the residents are subscribed to the blog. Dr. Muller stated the number of residents who use the site would likely increase over time.
Energy Efficiency Consulting Engineer Study
Mr. Murdoch stated that four bids were obtained in response to a specific RFP for a study to be performed by a consulting engineering firm. WJE engineers and Metropolitan became partners in the bid process, with Mendoza, Ribas, Farinas and Associates, and L.S. Grim Consulting Engineers also providing bids. Each of these firms is well-qualified, but there is a wide range in quotes from $13,500 to $56,000.
Dr. Muller asked what the disadvantage would be to taking the lowest bid if they all followed the proposal specifications. Mr. Murdoch was unsure, but stated that the difference is due to the size of the firms and the types of projects they typically undertake. Ms. Barth agreed, and noted that L.S. Grim was the lowest bid, but has never worked with a building like the Elizabeth, with the scope of its work typically being Maryland State buildings and schools. Mendoza, on the other hand, has served a number of similar buildings to the Elizabeth. Mendoza appeared to be very knowledgeable and to have the appropriate staff to handle the project. Ms. Barth recommended considering a vendor with relevant experience. The Energy Committee attended all three vendor presentations but did not rank the firms. Committee members initially felt that all vendors were qualified to do the work.
The Board discussed details of the proposals such as hourly costs, necessity of air balancing, equipment evaluation, determination of energy efficiency, and determination of the structural integrity of the building. Ms. Barth expressed concern that WJE, who currently provides service to the Elizabeth, has never recommended that an engineering study be conducted. Mr. Axelrad was skeptical that L.S. Grim could examine the building in the desired detail at such a low cost. He recommended Mendoza because thehe thought the latter would provide a fresh look at the building.
MOTION Dr. Muller moved, Ms. Barth seconded, to approve the consulting engineer proposal from Mendoza, Ribas, Farinas and Associates. The motion passed unanimously.
Ms. Fridell re-proposed that the Board pass a resolution authorizing the Board President and Treasurer to be signers on the Line of Credit at Morgan Stanley, previously approved by the Board at its December, 2009 regular meeting. The resolution is a documentation requirement of Morgan Stanley.
MOTION Ms. Fridell moved, Mr. Bressler seconded, to pass the resolution form required by Morgan Stanley for documentation purposes. The motion passed unanimously.
Emergency Generator
Mr. Murdoch stated that the permit needed for the emergency generator has not yet been obtained. The work is scheduled to begin the week of March 30, 2010, and regular Tuesday progress meetings will be held. It is anticipated that the project will be completed at the end of May or beginning of June.
Contracts
Mr. Cunningham inquired about the status of the bid packages for refurbishing the lobby. Mr. Murdoch stated that he has been working with attorneys on a bid letter, addendum and AIA contracts and these should be ready to be given to the designer on Tuesday, March 16, 2010. Ms. Fridell inquired about a clause in the contract regarding dispute resolution and whether litigation or arbitration would be used. Mr. Murdoch stated that he had spoken with counsel, who affirmed they could do either.
Mr. Murdoch stated that the refurbishing project should be managed by an architect, but that the latter’s time should be limited due to cost. Currently, Mr. Murdoch is named as the Owner’s Representative in the contract, but a project manager/architect should instead be named. Day-to-day operations would be handled by Mr. Murdoch. Ms. Fridell asked if performance liquidated damages were stipulated in the contract. Mr. Murdoch stated that they were not, but it is understood that the Association does not pay until the work is done correctly.
Ms. Fridell expressed concern about whether the proposed daily work time of 8:00 p.m. to 6:00 p.m.might interfere with residents’ schedules. Ms. Barth stated that the longer day would enable the project to be finished more quickly, minimizing overall project cost. Mr. Axelrad suggested that the Board should examine the house rules to ensure that a longer daily work time frame is allowable.
New Business:
Air Conditioning and Heating
Ms. Barth stated that an e-mail from a resident was received requesting that the current policy of turning on the air conditioning on April 15 be changed to April 1. Because many residents have allergies or asthma, they cannot open the windows to cool off their unit. Once the air conditioning is turned on the heat can no longer be used. Mr. Axelrad stated that the policy has already been changed once when the date was moved from May 1 to April 15, and it is difficult to know what the weather will be like in April. Ms. Fridell inquired if other residents have approached management with similar requests, to which Mr. Horan responded “no.”
MOTION Ms. Barth moved, Mr. Muller seconded, to turn off the heat and make air conditioning available on April 1. The motion passed with Dr. Muller, Ms. Barth and Ms. Fridell in favor, Mr. Cunningham and Mr. Bressler opposed, Mr. Axelrad abstained, and Ms. Kielty was absent.
Budget
Mr. Cunningham stated that the Board had held a public workshop in the past week to discuss/prepare the FY 2011 budget. Mr. Murdoch prepared financial projections on three different levels of condo fee increases: 3 percent, 5 percent and 7.5 percent. Mr. Axelrad observed that he took notes from the workshop, but will not draft separate minutes for the Workshop because the current meeting will include the same essential information from the Workshop.
Mr. Cunningham stated that currently the Association is operating well within its operating budget, and will likely have a surplus at the end of the year. Next year’s proposed budget represents virtually no increase in the operating budget; the increase will be almost entirely dedicated to replenishing the Reserve Fund. At the meeting, the Board needs to agree on which budget to send out with the letter to residents calling for the annual meeting. The Board will vote to approve the budget on the day of the Annual Meeting.
Mr. Murdoch provided the Board with a handout of each condo fee increase scenario. For example, a 3 percent increase would mean a 3 percent increase in condominium fees and a 3 percent increase in parking assessments. reserve allocation. A 3 percent increase would raise the net reserve contribution to $939,932, a 5 percent increase would raise it to $1,005,702, and a 7.5 increase would raise it to$1,087,915.
Board members debated what the appropriate level increase ought to be given the projects the Association has planned. Mr. Axelrad stated that when the building was new, it was thought that there should be a minimum of $1,000,000 in the reserve. He stated that a larger figure is needed given that the building is now older and more repairs are anticipated. Ms. Fridell noted that the Reserve Study proposed to have a large increase in the reserve in the next couple of years and then to have more modest cost-of-living increases after that. She added that there is only a $66,000 difference between a 3 percent and a 5 percent increase and that the 7.5 percent increase scenario is needed to really make a meaningful increase in the reserve contribution. Ms. Kielty expressed that a significant increase is necessary for the Association to be prepared for unexpected expenditures.
Dr. Muller stated that every percent increase is difficult for residents and that the Association should not be stockpiling money. He added that he supports the refurbishment plans, but there are currently no cost estimates for the work, the Board now has a $1 million “home equity” loan in case of unanticipated emergencies, and condo fees can always be increased next year, if needed. Ms. Barth stated that the costs of the projects planned for the Association are expensive and that for years the Association did not raise fees. Ms. Fridell stressed that another way to increase the reserve contribution without a big hike in condo fees is to cut costs in operating expenses and that ways to conserve should also be considered. Mr. Axelrad observed that loans need to be repaid.
Ms. Kielty stated that the $961,000 estimate for reserve contributions next year is conservative given the types of projects that are planned. Mr. Murdoch stated that it is a rough number that he arrived at by using the existing five-year plan and his cash projection for this year. Ms. Kielty also inquired about the current reserve expenditure levels. Ms. Fridell stated that $187,000 has been spent in February. Ms. Fridell noted that the figure for total expenditures from reserves to date was missing from the Management Report and should be included in all future reports. Mr. Murdoch stated that $763,222 has been spent from the reserves to date in FY 2010.
Dr. Muller made a motion to propose a budget with a 3 percent increase, which would contribute $939,932 into the Reserve Fund. The motion was not seconded.
MOTION Ms. Kielty moved, Mr. Bressler seconded, to approve a condo fee increase of 7.5 percent in a proposed budget to be provided to all owners prior to final Board action on the budget. The motion passed with Ms. Kielty, Ms. Barth, Ms. Fridell, Mr. Bressler and Mr. Axelrad in favor. Dr. Muller and Mr. Cunningham were opposed.
Comments from the floor:
A resident inquired how much has been paid to the Hartman Design Group and expressed concern that no plans have been discussed at board meetings. Mr. Murdoch stated that $157,000 has been paid to HDG to date and that there is a $250,000 Board-agreed limit on design fees. Ms. Barth added that most of the design fees that have been paid to date to the Hartman Design Group are for the designs they created and the documents they have done for the county and contractors. The design work is on the front end of the renovation project and therefore most of their work has been completed and we have paid them for that work.
A resident suggested that an updated list should be made of residents who need assistance in an emergency. A plan should be formulated for how to get those residents out and perhaps the fire department should be consulted about whether those individuals would do best to stay inside their unit or go to a stairwell while waiting for help.
Concern was expressed about the decision made by the Board to turn off the heat and make air conditioning available as of April 1, 2010. A resident expressed that the decision was made in haste and the vote should not have been taken while a board member had temporarily stepped out of the room.
A suggestion was made for management to provide reports to residents attending board meetings so they can better follow information on bids and companies. Also, a shortage of agendas was noted.
A resident inquired about the estimated amount for decorating the lobby. Ms. Barth stated that $1.2 million was estimated by the Board several years ago in the five-year plan, but that this estimate was done prior to any discussions with designers or contractors. Ms. Fridell stated that the Board received during FY 2009 more accurate estimates of $1.5 million from Hartman Design Group, which were discussed publicly and included in the FY 2010 update of the five-year plan circulated to owners with the FY 2010 audited financial statements. However, Mr. Axelrad stated that the Board had previously agreed that it will not spend over $1.2 million.
A resident stated that he observed four cars, two trucks and a van parked at once in the driveway/fire lane outside of the building, and that if there were an emergency, fire trucks would not be able to gain access to the building.
A resident asked who approved the posting of a commercial notice at the front desk, in conflict with ECA House Rules. Mr. Horan stated that it had been posted over the weekend, but has since been removed.
Adjournment
The President adjourned the meeting at 10:26 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting March 15, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Jana Bowcut ............Recording Secretary, On the Record
Call to Order: Mr. Cunningham called the meeting to order at 7:33 pm.
Approval of Minutes:
MOTION Ms. Barth moved, Mr. Bressler seconded, to approve the February 22, 2010, meeting minutes. The motion passed unanimously.
President’s Report:
Mr. Cunningham stated that two presentations were planned for the meeting regarding landscaping and the website. He added that the Board is currently working on the FY 2011 budget, which will be discussed briefly during the meeting. Under Legum & Norman management, the Association is significantly under-budget in operating expenses, with the exception of utilities. He stated that there have been steep increases in gas usage in the last couple of months and that the Association should focus on conserving energy.
Four new board members will be elected this year, and Mr. Cunningham encouraged qualified residents to run for the open positions.
Treasurer’s Report:
Ms. Fridell stated that she had no formal comments; however, she had asked a number of questions about the Management Report via email which she expected would be answered during the course of the meeting.
Old Business:
Presentation #1: Landscaping
Mr. Bressler introduced Gerald Rupert from Rupert Landscape Design who presented drawings of a proposed landscape design.
Mr. Rupert noted that most of the current landscaping is in good shape, but consists of many evergreens, which do not give a lot of color. Features of the proposed plan include:
• To the right of the entrance, holly bushes will be replaced with camellias.
• To the left of the entrance, holly bushes will be replaced with a variegated aucuba.
• In the half circle area a light will be installed to highlight the cutleaf Japanese maple at night. Plants such as cypress and fireworks grass would be added, as well as plenty of annuals to provide color.
• Belgian granite curbing would line the half-circle area and prevent cars from running over the plantings. The curbing would sit six inches in from the driveway and would drop four inches into the ground.
• In an area between the street and the building, a pink flowering dogwood would be planted between two existing white birch and oak trees. Pygmy barberry and fountain grass would be added to the area, in addition to transplanted rose bushes taken from the right of the front entrance. A trellis will be built for clematis to grow in front of the wall.
• By the Elizabeth sign, creeping jenny and ice plant would be planted. The leaning cypress would stay.
• The contents of the 5.5 foot planter strip in the back would be removed and a pattern of different colors of gravel and bamboo would be put in to resemble a Japanese garden. This would be attractive to the residents whose windows look out over this area.
A resident inquired if there were plans for landscaping the arcade area. Mr. Rupert explained that these plans did not include it, but he would suggest mulching the area and using a pressure washer to clean off the walkways.
Ms. Barth asked what Mr. Rupert would suggest for the back planter strip instead of a Japanese garden. He responded that because the area is so heavily shaded only plants such as ferns or yucca would thrive.
A resident stated that the current landscaping does not look particularly manicured and asked if that would change with the new design. Mr. Rupert responded that it would. The resident also asked if the granite curbing would keep people from walking their dogs in that area. Mr. Rupert stated that it would not and that it would be useful to place some dog signs.
Mr. Cunningham stated that the proposed drawings will be displayed for residents to look at more carefully.
Presentation #2: Web site
Samuel Kim, the IT Chief from Legum & Norman, presented the Board and residents with an overview of CommunityLink, an on-line service for associations to maintain their own Web sites. Mr. Kim suggested that the Web site be maintained by a homeowner, and only a Microsoft-Word-Level knowledge is needed to operate it. Responsibility for the site could be held by several individuals and training would be provided by Mr. Kim.
Everything posted on the Web site is secure, and requires each user to register and select a username and password. Participation is voluntary, and residents can choose to not be part of the system. Features of the website include:
• Tech support provided by Legum and Norman.
• A search feature.
• A community calendar on which to post association events.
• Online forms, including work orders, which can be filled and submitted on-site.
• A messenger service that would send out e-mails to the Association.
• A resource center that contains association documents: board minutes, financials governing documents. Management would be responsible for uploading these documents to the site.
• Community news.
• Classifieds.
• Managerial reports that provide information about the site such as number of users who are logged on, number of visits, number of pages viewed and number of people who have registered.
• Discussion groups.
• Online payment of condominium fees.
• Ability to upload pictures, video files or flash files.
Mr. Axelrad asked if communities typically charge for posting listings to the classifieds. Mr. Kim stated that that is up to each community. Mr. Axelrad also inquired if there was a way of notifying an owner that a package had arrived, to which Mr. Kim responded that it could be done through the Messenger feature. Thirty-eight Legum & Norman communities use this program, but few use it for package delivery notification because they do not all have front desk services. Mr. Kim stated that the Association, not individual residents, would pay a modest start-up and a monthly fee for the site. If the Association would like to make the on-line payment of condo fees available to its residents, there is an additional $100 fee.
Mr. Murdoch stated that the success of the site depends on the number of residents who use it. Ms. Kielty asked about whether neighboring buildings use the service, to which Mr. Murdoch responded that the Carlton does not use it, and he is unsure about #4620 North Park Avenue. A resident noted that the Web site would be a useful feature, particularly for those residents who go away for periods of time.
Concern was expressed that many residents may not own a computer and that perhaps a survey should be conducted to determine how many own a computer and what the interest level might be. A resident who maintains a community blog stated that approximately seventy to eighty of the residents are subscribed to the blog. Dr. Muller stated the number of residents who use the site would likely increase over time.
Energy Efficiency Consulting Engineer Study
Mr. Murdoch stated that four bids were obtained in response to a specific RFP for a study to be performed by a consulting engineering firm. WJE engineers and Metropolitan became partners in the bid process, with Mendoza, Ribas, Farinas and Associates, and L.S. Grim Consulting Engineers also providing bids. Each of these firms is well-qualified, but there is a wide range in quotes from $13,500 to $56,000.
Dr. Muller asked what the disadvantage would be to taking the lowest bid if they all followed the proposal specifications. Mr. Murdoch was unsure, but stated that the difference is due to the size of the firms and the types of projects they typically undertake. Ms. Barth agreed, and noted that L.S. Grim was the lowest bid, but has never worked with a building like the Elizabeth, with the scope of its work typically being Maryland State buildings and schools. Mendoza, on the other hand, has served a number of similar buildings to the Elizabeth. Mendoza appeared to be very knowledgeable and to have the appropriate staff to handle the project. Ms. Barth recommended considering a vendor with relevant experience. The Energy Committee attended all three vendor presentations but did not rank the firms. Committee members initially felt that all vendors were qualified to do the work.
The Board discussed details of the proposals such as hourly costs, necessity of air balancing, equipment evaluation, determination of energy efficiency, and determination of the structural integrity of the building. Ms. Barth expressed concern that WJE, who currently provides service to the Elizabeth, has never recommended that an engineering study be conducted. Mr. Axelrad was skeptical that L.S. Grim could examine the building in the desired detail at such a low cost. He recommended Mendoza because thehe thought the latter would provide a fresh look at the building.
MOTION Dr. Muller moved, Ms. Barth seconded, to approve the consulting engineer proposal from Mendoza, Ribas, Farinas and Associates. The motion passed unanimously.
Ms. Fridell re-proposed that the Board pass a resolution authorizing the Board President and Treasurer to be signers on the Line of Credit at Morgan Stanley, previously approved by the Board at its December, 2009 regular meeting. The resolution is a documentation requirement of Morgan Stanley.
MOTION Ms. Fridell moved, Mr. Bressler seconded, to pass the resolution form required by Morgan Stanley for documentation purposes. The motion passed unanimously.
Emergency Generator
Mr. Murdoch stated that the permit needed for the emergency generator has not yet been obtained. The work is scheduled to begin the week of March 30, 2010, and regular Tuesday progress meetings will be held. It is anticipated that the project will be completed at the end of May or beginning of June.
Contracts
Mr. Cunningham inquired about the status of the bid packages for refurbishing the lobby. Mr. Murdoch stated that he has been working with attorneys on a bid letter, addendum and AIA contracts and these should be ready to be given to the designer on Tuesday, March 16, 2010. Ms. Fridell inquired about a clause in the contract regarding dispute resolution and whether litigation or arbitration would be used. Mr. Murdoch stated that he had spoken with counsel, who affirmed they could do either.
Mr. Murdoch stated that the refurbishing project should be managed by an architect, but that the latter’s time should be limited due to cost. Currently, Mr. Murdoch is named as the Owner’s Representative in the contract, but a project manager/architect should instead be named. Day-to-day operations would be handled by Mr. Murdoch. Ms. Fridell asked if performance liquidated damages were stipulated in the contract. Mr. Murdoch stated that they were not, but it is understood that the Association does not pay until the work is done correctly.
Ms. Fridell expressed concern about whether the proposed daily work time of 8:00 p.m. to 6:00 p.m.might interfere with residents’ schedules. Ms. Barth stated that the longer day would enable the project to be finished more quickly, minimizing overall project cost. Mr. Axelrad suggested that the Board should examine the house rules to ensure that a longer daily work time frame is allowable.
New Business:
Air Conditioning and Heating
Ms. Barth stated that an e-mail from a resident was received requesting that the current policy of turning on the air conditioning on April 15 be changed to April 1. Because many residents have allergies or asthma, they cannot open the windows to cool off their unit. Once the air conditioning is turned on the heat can no longer be used. Mr. Axelrad stated that the policy has already been changed once when the date was moved from May 1 to April 15, and it is difficult to know what the weather will be like in April. Ms. Fridell inquired if other residents have approached management with similar requests, to which Mr. Horan responded “no.”
MOTION Ms. Barth moved, Mr. Muller seconded, to turn off the heat and make air conditioning available on April 1. The motion passed with Dr. Muller, Ms. Barth and Ms. Fridell in favor, Mr. Cunningham and Mr. Bressler opposed, Mr. Axelrad abstained, and Ms. Kielty was absent.
Budget
Mr. Cunningham stated that the Board had held a public workshop in the past week to discuss/prepare the FY 2011 budget. Mr. Murdoch prepared financial projections on three different levels of condo fee increases: 3 percent, 5 percent and 7.5 percent. Mr. Axelrad observed that he took notes from the workshop, but will not draft separate minutes for the Workshop because the current meeting will include the same essential information from the Workshop.
Mr. Cunningham stated that currently the Association is operating well within its operating budget, and will likely have a surplus at the end of the year. Next year’s proposed budget represents virtually no increase in the operating budget; the increase will be almost entirely dedicated to replenishing the Reserve Fund. At the meeting, the Board needs to agree on which budget to send out with the letter to residents calling for the annual meeting. The Board will vote to approve the budget on the day of the Annual Meeting.
Mr. Murdoch provided the Board with a handout of each condo fee increase scenario. For example, a 3 percent increase would mean a 3 percent increase in condominium fees and a 3 percent increase in parking assessments. reserve allocation. A 3 percent increase would raise the net reserve contribution to $939,932, a 5 percent increase would raise it to $1,005,702, and a 7.5 increase would raise it to$1,087,915.
Board members debated what the appropriate level increase ought to be given the projects the Association has planned. Mr. Axelrad stated that when the building was new, it was thought that there should be a minimum of $1,000,000 in the reserve. He stated that a larger figure is needed given that the building is now older and more repairs are anticipated. Ms. Fridell noted that the Reserve Study proposed to have a large increase in the reserve in the next couple of years and then to have more modest cost-of-living increases after that. She added that there is only a $66,000 difference between a 3 percent and a 5 percent increase and that the 7.5 percent increase scenario is needed to really make a meaningful increase in the reserve contribution. Ms. Kielty expressed that a significant increase is necessary for the Association to be prepared for unexpected expenditures.
Dr. Muller stated that every percent increase is difficult for residents and that the Association should not be stockpiling money. He added that he supports the refurbishment plans, but there are currently no cost estimates for the work, the Board now has a $1 million “home equity” loan in case of unanticipated emergencies, and condo fees can always be increased next year, if needed. Ms. Barth stated that the costs of the projects planned for the Association are expensive and that for years the Association did not raise fees. Ms. Fridell stressed that another way to increase the reserve contribution without a big hike in condo fees is to cut costs in operating expenses and that ways to conserve should also be considered. Mr. Axelrad observed that loans need to be repaid.
Ms. Kielty stated that the $961,000 estimate for reserve contributions next year is conservative given the types of projects that are planned. Mr. Murdoch stated that it is a rough number that he arrived at by using the existing five-year plan and his cash projection for this year. Ms. Kielty also inquired about the current reserve expenditure levels. Ms. Fridell stated that $187,000 has been spent in February. Ms. Fridell noted that the figure for total expenditures from reserves to date was missing from the Management Report and should be included in all future reports. Mr. Murdoch stated that $763,222 has been spent from the reserves to date in FY 2010.
Dr. Muller made a motion to propose a budget with a 3 percent increase, which would contribute $939,932 into the Reserve Fund. The motion was not seconded.
MOTION Ms. Kielty moved, Mr. Bressler seconded, to approve a condo fee increase of 7.5 percent in a proposed budget to be provided to all owners prior to final Board action on the budget. The motion passed with Ms. Kielty, Ms. Barth, Ms. Fridell, Mr. Bressler and Mr. Axelrad in favor. Dr. Muller and Mr. Cunningham were opposed.
Comments from the floor:
A resident inquired how much has been paid to the Hartman Design Group and expressed concern that no plans have been discussed at board meetings. Mr. Murdoch stated that $157,000 has been paid to HDG to date and that there is a $250,000 Board-agreed limit on design fees. Ms. Barth added that most of the design fees that have been paid to date to the Hartman Design Group are for the designs they created and the documents they have done for the county and contractors. The design work is on the front end of the renovation project and therefore most of their work has been completed and we have paid them for that work.
A resident suggested that an updated list should be made of residents who need assistance in an emergency. A plan should be formulated for how to get those residents out and perhaps the fire department should be consulted about whether those individuals would do best to stay inside their unit or go to a stairwell while waiting for help.
Concern was expressed about the decision made by the Board to turn off the heat and make air conditioning available as of April 1, 2010. A resident expressed that the decision was made in haste and the vote should not have been taken while a board member had temporarily stepped out of the room.
A suggestion was made for management to provide reports to residents attending board meetings so they can better follow information on bids and companies. Also, a shortage of agendas was noted.
A resident inquired about the estimated amount for decorating the lobby. Ms. Barth stated that $1.2 million was estimated by the Board several years ago in the five-year plan, but that this estimate was done prior to any discussions with designers or contractors. Ms. Fridell stated that the Board received during FY 2009 more accurate estimates of $1.5 million from Hartman Design Group, which were discussed publicly and included in the FY 2010 update of the five-year plan circulated to owners with the FY 2010 audited financial statements. However, Mr. Axelrad stated that the Board had previously agreed that it will not spend over $1.2 million.
A resident stated that he observed four cars, two trucks and a van parked at once in the driveway/fire lane outside of the building, and that if there were an emergency, fire trucks would not be able to gain access to the building.
A resident asked who approved the posting of a commercial notice at the front desk, in conflict with ECA House Rules. Mr. Horan stated that it had been posted over the weekend, but has since been removed.
Adjournment
The President adjourned the meeting at 10:26 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Jana Bowcut of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Saturday, March 20, 2010
Summary of March 2010 Elizabeth Condo Board Meeting
Present at the meeting: Woody Cunningham, Jeffrey Axelrad, Judi Barth, Charles Bressler, Monique Fridell, Alexandra Kielty, Al Muller (late), Scott Murdoch, Mike Horan, recorder of meeting minutes
Treasurer’s Report
Treasurer had no comments but president Woody Cunningham said utility costs are over budget.
Landscaping Proposal from Ruppert
Described a plan for adding annuals but keeping the hollys and the hanging jasmine. He wants to add new paving blocks for aesthetic reasons. In the back of the building where there is no sunlight, he suggested a Japanese stone garden with no plantings whatsoever.
L & N Communilink Website for the ECA: A Demo
--Online service created with a basic template. Website is maintained by the association.
--Includes calendar, online forms, email, online payment option, classified ads, alerts,resources (board minutes, financial reports, etc.)
--38 L&N associations using this service.
--Start up and monthly fee. $1000 start up fee and $150 per month.
Management report (no president report this meeting)
--Engineering study delayed. Proposals were bid from $13500 to $56000. 2 0f 3 interviews were heard by Judi Barth. Grim lowest bid – have they done such a bldg like ours? Answer is NO. Mandoza Revis – has the experience with buildings like ours. WJE is a structural engineer. They would not look at McQuay units issue. WJE and Metropolitan have teamed up but these are two separate bids. Mandoza Revis offers the most comprehensive service but Mandoza Revis won’t do air balancing system.
MOTION: Selected Mandoza Revis.
--emergency generator experiencing a permit issue. Begin work end of March completiton end of May.
--still working on permits for the refurb.
AC policy
Resident requesting a/c starting end of March and not April 15 because of allergies that require keeping windows closed. Problem with the piping arrangement. Once we go to ac cannot go back to heat.
MOTION: Board voted to go to air conditioning March 30.
Budget
Condo fees will go up by 7.5%. The Board is concerned about building up reserves.
Notes: The Ruppert landscaping proposal is one of three.
Communilink is not the only option for an Association website. A better option could be Association Voice. Visit http://www.associationvoice.com/.
There are six candidates running for the ECA Board of Directors
> Judi Barth
> Molly Frantz
> Jim Jones
> Seth Levine
> H. Liu
> Dr. Alfred Muller
Treasurer’s Report
Treasurer had no comments but president Woody Cunningham said utility costs are over budget.
Landscaping Proposal from Ruppert
Described a plan for adding annuals but keeping the hollys and the hanging jasmine. He wants to add new paving blocks for aesthetic reasons. In the back of the building where there is no sunlight, he suggested a Japanese stone garden with no plantings whatsoever.
L & N Communilink Website for the ECA: A Demo
--Online service created with a basic template. Website is maintained by the association.
--Includes calendar, online forms, email, online payment option, classified ads, alerts,resources (board minutes, financial reports, etc.)
--38 L&N associations using this service.
--Start up and monthly fee. $1000 start up fee and $150 per month.
Management report (no president report this meeting)
--Engineering study delayed. Proposals were bid from $13500 to $56000. 2 0f 3 interviews were heard by Judi Barth. Grim lowest bid – have they done such a bldg like ours? Answer is NO. Mandoza Revis – has the experience with buildings like ours. WJE is a structural engineer. They would not look at McQuay units issue. WJE and Metropolitan have teamed up but these are two separate bids. Mandoza Revis offers the most comprehensive service but Mandoza Revis won’t do air balancing system.
MOTION: Selected Mandoza Revis.
--emergency generator experiencing a permit issue. Begin work end of March completiton end of May.
--still working on permits for the refurb.
AC policy
Resident requesting a/c starting end of March and not April 15 because of allergies that require keeping windows closed. Problem with the piping arrangement. Once we go to ac cannot go back to heat.
MOTION: Board voted to go to air conditioning March 30.
Budget
Condo fees will go up by 7.5%. The Board is concerned about building up reserves.
Notes: The Ruppert landscaping proposal is one of three.
Communilink is not the only option for an Association website. A better option could be Association Voice. Visit http://www.associationvoice.com/.
There are six candidates running for the ECA Board of Directors
> Judi Barth
> Molly Frantz
> Jim Jones
> Seth Levine
> H. Liu
> Dr. Alfred Muller
Wednesday, March 17, 2010
February 2010 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting January 21, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Call to Order: Mr. Cunningham called the meeting to order at 7:36 pm.
Approval of Minutes:
(R) Ms. Barth moved, and Mr. Bressler seconded, to approve the January 21, 2010, meeting minutes.
The motion passed unanimously, excepting Dr. Muller, who had not yet arrived
President’s Report: Dr. Cunningham thanked the condominium staff for its dedication and service despite equipment failures during the February snowstorms.
Treasurer’s Report: Ms. Fridell reported that she would meet with two resident volunteers on February 23, 2010, who would help with the fixed asset write-off project. Their recommendations will be returned to the board and must be approved by ECA’s auditor. She also reminded residents who use coupons to pay condominium fees that they would be receiving new coupon books in March for the April-June payments.
Manager’s Report: Mr. Murdoch reiterated Dr. Cunningham’s praise of the condominium staff for its performance during the snowstorms, especially those staff members who stayed overnight in the building.
Mr. Murdoch reviewed four bids for the installation of the emergency generator in the building. The low bidder, Power Systems, met with Dr. Cunningham, Mr. Horan, and Mr. Murdoch. Mr. Murdoch recommends this firm for the contract. The total estimated cost of the project, which also includes some elevator work, is $385,000.
Weather has delayed the progress on the review of proposals from energy-efficiency engineering consulting firms. One proposal was received on time, with two more received on February 19, 2010. Mr. Murdoch is waiting on a fourth proposal. Further discussion with the firms is needed before summarizing and presenting proposals to the Board for decision-making.
The building permit application for lobby renovation was delivered to the architects this week along with the necessary application fee.
Mr. Horan reported that AD Heath finished piping work in the lobby on February 12, 2010. In addition, electronic water detectors have arrived, and a notice will be posted for distribution of the detectors. Additional detectors will be offered to residents at $7 each.
More CFL bulbs will be ordered for residents to purchase.
Eighty-nine units signed up for replacement locks; the service has begun and should continue for two weeks.
Mr. Murdoch added that Mr. Horan and Ms. Gardner are drafting a personnel policy handbook that will be available for board review in a few months.
Ms. Gardner has narrowed delinquencies to eleven units, with five of those being significant delinquencies. One case involves four parking spaces.
A demonstration will be arranged for the election ballot tabulation services available through Legum & Norman.
Mr. Murdoch will distribute information the board regarding House Bill 842, which would give homeowners’ associations limited priority over the first mortgage for up to six months of assessments in the foreclosure process. A public hearing will be held March 4.
Legum & Norman is moving accounts from BB&T to Community Association Banc (CAB), a division of Mutual of Omaha Bank. New coupons for April, May, and June will be provided to residents who use payment coupons until new books are distributed for the new fiscal year.
Three complete proposals for planting and landscaping should be available by the board’s next meeting.
Old Business:
Power Services bid $199,599 for the contract to install the emergency generator. Bids for the project ranged up to $276,000.
(R) Ms. Kielty moved, and Ms. Fridell seconded, to grant the contract to install the emergency generator
to Power Systems. The motion passed unanimously by all members present, excepting Dr. Muller, who had not yet arrived.
Ms Barth reported that a formal presentation by the Hartman Design Group for owners and residents will be held on March 9, 2010, at 7:00pm, to review the design plans for the lobby renovation. An invitation will be distributed. The presentation will include the design plan for the lobby level, selected finishes, and a computer rendering of the front desk. Refreshments will be served. The application for the building permit for the renovation will be hand-carried to the county by the architects on Feb.23, 2009, and the approval process is could take up to six weeks. Bid letters for the General Contractor on the project are expected to be sent out around March 1, 2010. Bidders will have two weeks to respond to the request for bids after receiving the letter.
Ms. Kielty reported that the Exercise and Fitness Room Committee is examining options to reorganize and refresh the fitness facility in the building. Any equipment that is due to be replaced will be replaced with attached televisions. Some violations of building codes were identified by Heartline Fitness and can be easily fixed. Management will send a notice once a date is set for a public meeting to discuss potential improvements to the Fitness Room. A summary report of the Exercise and Fitness Room Committee was provided to the Board along with two informal proposals that had been submitted by Fitness Resoures and Heartline Fitness. The Committee had previously met with both vendors to obtain their suggestions and recommendations.
Meet the Candidate Night for the upcoming board election will be held on April 21, 2010.
(R) Mr. Axelrad moved, and Ms. Kielty seconded, that the moderator of the event not be a candidate in
the election. Dr. Cunningham asked that the motion be amended to specify that the moderator not be an active board member. Mr. Axelrad moved and Ms. Kielty seconded the amendment. The Amendment and, thereafter, the motion passed unanimously.
New Business:
The current snow blower is not suitable for the property. Mr. Horan will purchase a commercial-size machine but all options are currently sold out. He suggested a motion be made to obtain a snow blower before next winter.
(R) Dr. Cunningham moved, and Ms. Barth seconded, to approve the eventual purchase of a snow blower costingup to $1,500, at a time Management deems appropriate. The motion passed unanimously, except for Dr. Muller, who had not yet arrived.
Dr. Muller arrived at 8:45 p.m.
The board will hold an open meeting on March 11, 2010, at 6:30 p.m., to discuss the FY 2011 budget and five-year plan. It will be a working meeting for the board; as such no comments from the floor will be permitted. Another follow up meeting will likely be necessary to finalize the five-year plan.
Election Committee Report:
Karren Alenier reported that the Election Committee distributed a memo on February 1, 2010, to request nominations for the election. The memo was accompanied by a candidate questionnaire in order to allow residents to compare candidates based on equal criteria. According to Karren Alenier, the committee cleared all election materials with ECA counsel to ensure that they accorded with MD law and ECA bylaws. Absentee owners may mail signed, sealed envelopes containing proxy votes to the front desk lock box. The committee recommended using Legum & Norman’s electronic voting system in this year’s board election. The Committee made several additional recommendations regarding timing and review of submissions by prospective candidates.
Ms. Fridell and Ms. Kielty were uncomfortable with the board’s reviewing any documents related to the candidates since this could represent a conflict of interest with board members who are also candidates. Instead they requested that candidates’ documentation be sent directly to the Election Committee and that no candidate documentation be sent to any board member.
Election Committee member Sharon Bobb opined that once notice of the annual meeting is distributed, anyone else wishing to self-nominate may do so at the annual meeting.
Several members of the board objected to the use of the candidate questionnaire and to the requirement that proxy votes must include a signature across the envelope seal. A discussion of the Election Committee’s recommendations followed, with Board Members in agreement that a number of the proposals unduly restricted or discouraged individuals from seeking election to the Board.
(R) Mr. Axelrad moved, and Ms. Kielty seconded, That the Board compose and distribute a letter from the board to specify that the candidate questionnaire is optional and that all interested candidates will be considered regardless of the form of the candidate’s written submission of their expression of interest in being a candidate, so long as that expression of interest is submitted by March 15, 2010. The motion passed: All Board members voted in favor of the motion except Charles Bressler, who abstained.
(R) Ms. Barth moved, and Ms. Fridell seconded, that Legum & Norman’s electronic voting system be
utilized at the upcoming board election. The motion passed unanimously.
(A) The board by consensus agreed that proxy votes submitted in the official envelope provided would be considered official. No seal signature is required to prove authenticity.
Floor Captains Report: A floor captain meeting was held on February 3, 2010. The primary issues discussed included mail delivery, cleanliness of trash rooms, and the role of the floor representatives. Those still experiencing difficulty with mail delivery after the blizzard can contact Rosa Taylor, manager of the Arlington Road Post Office, at (301) 941-2681. Erroneously delivered mail cannot be redistributed by the condominium but must be redelivered via the Postal Service. Stephanie Olshan will clarify this procedure with Ms. Taylor.
A sign will be posted in elevators to request that pizza boxes and other food containers be disposed of on level G1 instead of being left in the trash rooms on each floor. This will alleviate the congestion and disorganization in the trash rooms and promote cleanliness.
Several members of the board requested that the names of each floor representative be distributed so that residents know whom to contact on their floor. Ms. Olshan requested an updated list of residents from Mr. Horan, because the condominium directory is out of date and does not include renters.
Ms. Barth commented on an impromptu “hot chocolate party” which was held in the lobby for residents on the day of the second big snow blizzard. She said it was a big success thanks to Dr. Alfred Muller, who originated the idea and donated the goodies as well braved elements to get the supplies for the event.
Fitness Committee Report: On behalf of the Fitness Committee, Alexandra Kielty submitted a written report and, without objection, asked that the report be made a part of the minutes. This report is as follows:
. Fitness Committee Report
Board Meeting - February 22, 2010
Fitness Committee Members: Alexandra Kielty, Robin Schatmann, Steve Schattman, Jim Lawson, Jim Jones, and Monique Fridell
Background: The Fitness Committee was established to address one of the more important amenities that a residential building has to offer. We now recognize that it is very important to upgrade the Elizabeth fitness area in order to retrain or increase the value of our individual units. We know from realtors that the fitness area is critically important in the decision to purchase and we see realtors bringing potential clients threw the exercise area on a regular basis. Our exercise area has a number of very old pieces of equipment that are very much in need of being replaced. With this in mind, the board established a budget of $17,000 for upgrading of equipment during fiscal year 2009.
The Fitness Committee has taken a number of actions and explored options over the past number of months.
• Meetings were held with Fitness Resources, the vendor that had been previously held the maintenance contract with the Elizabeth and provided some of the equipment acquired in past procurements. They provided estimates for replacement of equipment and suggested various items for purchase (see attachment).
• A survey of residents and owners was conducted in the summer of 2009 to identify the usage and interests of residents regarding various pieces of equipment as well as the addition of televisions. The outcome of that survey has been previously shared with residents.
• An Add Service contract was established with Hartmann Design to obtain their recommendations for a more significant refurbishment of the fitness and pool areas scheduled for the FY 2011/2012. We expect a report from them some time in March.
• The Fitness Committee met with Jason Malecki from Heartline Fitness on Saturday, Feb. 20th. Heartline Fitness was established as the maintenance contractor for the Elizabeth in December 2009, a change which was due to lack of response by the prior contractor, Fitness Rsources, when repairs were requested.
Summary of Meeting with Heartline: Jason Malecki had been in our building several times and was familiar with the equipment and logistics of our exercise area. Jason was extremely helpful in identifying equipment that needed to be replaced and identifying equipment that would be reasonable within the space and general needs of a condominium of our size. He also identified a few code violations which can be readily addressed but which had not been identified previously. Generally, the idea is to remove old pieces that are cluttering up the rooms, remove equipment that is no longer used, realign the rooms into cardio and aerobic, and consolidate new equipment in one of the rooms to highlight the direction of upgrading our equipment. Jason also identified a few pieces of equipment that are at or over their useful life and should be replaced when they next breakdown (stair master and recumbent bike). His recommendations and related costs were provided today, Feb 22, and are attached for Board consideration. A presentation will be scheduled in late March or early April for residents to consider the specifics of replacement items and logistics. An announcement will be made in the near future for when this will occur.
Depending upon the presentation and board consideration, it is hoped that a vote on this can be held at the April Board Meeting.
Attachments [Omitted]
Comments from the Floor:
A resident asked what cable provider would supply the televisions which might be added to the fitness room. Ms. Barth responded that Comcast has a contract with the building, which includes the common area television and Internet service.
The same resident asked if a resume was required for those interested in nominating themselves to the board. It was clarified that background information could be delivered in any written format.
A resident asked why the lock project took so long to be put into action. Dr. Cunningham responded that design changes due to renovation were a factor and that an earlier order of locks had to be replaced.
A resident who was completing a term on the board of directors in his previous residence offered his assistance to the board in establishing a stable election process. He suggested that management could set up the process.
A resident was disturbed by the candidate questionnaire and found it discouraging. He suggested that questions for candidates should include a distinction between owners and renters, as well as whether the candidate has been convicted of any crimes.
The same resident requested information about the extra costs for direct debit. He had requested information in July 2009 but received no response from Legum & Norman. Management agreed to provide information to the resident.
A resident reacted to implications that the last board election was compromised and implored the board to improve the election system in order to maintain the integrity of the election results.
A resident requested that the board examine utility costs and consider the amount of energy potentially wasted by existing windows.
The first draft of these minutes was prepared by Recording Secretary Lisa Rowan.
Adjournment: Dr. Cunningham adjourned the meeting at 10:00 p.m.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting January 21, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Call to Order: Mr. Cunningham called the meeting to order at 7:36 pm.
Approval of Minutes:
(R) Ms. Barth moved, and Mr. Bressler seconded, to approve the January 21, 2010, meeting minutes.
The motion passed unanimously, excepting Dr. Muller, who had not yet arrived
President’s Report: Dr. Cunningham thanked the condominium staff for its dedication and service despite equipment failures during the February snowstorms.
Treasurer’s Report: Ms. Fridell reported that she would meet with two resident volunteers on February 23, 2010, who would help with the fixed asset write-off project. Their recommendations will be returned to the board and must be approved by ECA’s auditor. She also reminded residents who use coupons to pay condominium fees that they would be receiving new coupon books in March for the April-June payments.
Manager’s Report: Mr. Murdoch reiterated Dr. Cunningham’s praise of the condominium staff for its performance during the snowstorms, especially those staff members who stayed overnight in the building.
Mr. Murdoch reviewed four bids for the installation of the emergency generator in the building. The low bidder, Power Systems, met with Dr. Cunningham, Mr. Horan, and Mr. Murdoch. Mr. Murdoch recommends this firm for the contract. The total estimated cost of the project, which also includes some elevator work, is $385,000.
Weather has delayed the progress on the review of proposals from energy-efficiency engineering consulting firms. One proposal was received on time, with two more received on February 19, 2010. Mr. Murdoch is waiting on a fourth proposal. Further discussion with the firms is needed before summarizing and presenting proposals to the Board for decision-making.
The building permit application for lobby renovation was delivered to the architects this week along with the necessary application fee.
Mr. Horan reported that AD Heath finished piping work in the lobby on February 12, 2010. In addition, electronic water detectors have arrived, and a notice will be posted for distribution of the detectors. Additional detectors will be offered to residents at $7 each.
More CFL bulbs will be ordered for residents to purchase.
Eighty-nine units signed up for replacement locks; the service has begun and should continue for two weeks.
Mr. Murdoch added that Mr. Horan and Ms. Gardner are drafting a personnel policy handbook that will be available for board review in a few months.
Ms. Gardner has narrowed delinquencies to eleven units, with five of those being significant delinquencies. One case involves four parking spaces.
A demonstration will be arranged for the election ballot tabulation services available through Legum & Norman.
Mr. Murdoch will distribute information the board regarding House Bill 842, which would give homeowners’ associations limited priority over the first mortgage for up to six months of assessments in the foreclosure process. A public hearing will be held March 4.
Legum & Norman is moving accounts from BB&T to Community Association Banc (CAB), a division of Mutual of Omaha Bank. New coupons for April, May, and June will be provided to residents who use payment coupons until new books are distributed for the new fiscal year.
Three complete proposals for planting and landscaping should be available by the board’s next meeting.
Old Business:
Power Services bid $199,599 for the contract to install the emergency generator. Bids for the project ranged up to $276,000.
(R) Ms. Kielty moved, and Ms. Fridell seconded, to grant the contract to install the emergency generator
to Power Systems. The motion passed unanimously by all members present, excepting Dr. Muller, who had not yet arrived.
Ms Barth reported that a formal presentation by the Hartman Design Group for owners and residents will be held on March 9, 2010, at 7:00pm, to review the design plans for the lobby renovation. An invitation will be distributed. The presentation will include the design plan for the lobby level, selected finishes, and a computer rendering of the front desk. Refreshments will be served. The application for the building permit for the renovation will be hand-carried to the county by the architects on Feb.23, 2009, and the approval process is could take up to six weeks. Bid letters for the General Contractor on the project are expected to be sent out around March 1, 2010. Bidders will have two weeks to respond to the request for bids after receiving the letter.
Ms. Kielty reported that the Exercise and Fitness Room Committee is examining options to reorganize and refresh the fitness facility in the building. Any equipment that is due to be replaced will be replaced with attached televisions. Some violations of building codes were identified by Heartline Fitness and can be easily fixed. Management will send a notice once a date is set for a public meeting to discuss potential improvements to the Fitness Room. A summary report of the Exercise and Fitness Room Committee was provided to the Board along with two informal proposals that had been submitted by Fitness Resoures and Heartline Fitness. The Committee had previously met with both vendors to obtain their suggestions and recommendations.
Meet the Candidate Night for the upcoming board election will be held on April 21, 2010.
(R) Mr. Axelrad moved, and Ms. Kielty seconded, that the moderator of the event not be a candidate in
the election. Dr. Cunningham asked that the motion be amended to specify that the moderator not be an active board member. Mr. Axelrad moved and Ms. Kielty seconded the amendment. The Amendment and, thereafter, the motion passed unanimously.
New Business:
The current snow blower is not suitable for the property. Mr. Horan will purchase a commercial-size machine but all options are currently sold out. He suggested a motion be made to obtain a snow blower before next winter.
(R) Dr. Cunningham moved, and Ms. Barth seconded, to approve the eventual purchase of a snow blower costingup to $1,500, at a time Management deems appropriate. The motion passed unanimously, except for Dr. Muller, who had not yet arrived.
Dr. Muller arrived at 8:45 p.m.
The board will hold an open meeting on March 11, 2010, at 6:30 p.m., to discuss the FY 2011 budget and five-year plan. It will be a working meeting for the board; as such no comments from the floor will be permitted. Another follow up meeting will likely be necessary to finalize the five-year plan.
Election Committee Report:
Karren Alenier reported that the Election Committee distributed a memo on February 1, 2010, to request nominations for the election. The memo was accompanied by a candidate questionnaire in order to allow residents to compare candidates based on equal criteria. According to Karren Alenier, the committee cleared all election materials with ECA counsel to ensure that they accorded with MD law and ECA bylaws. Absentee owners may mail signed, sealed envelopes containing proxy votes to the front desk lock box. The committee recommended using Legum & Norman’s electronic voting system in this year’s board election. The Committee made several additional recommendations regarding timing and review of submissions by prospective candidates.
Ms. Fridell and Ms. Kielty were uncomfortable with the board’s reviewing any documents related to the candidates since this could represent a conflict of interest with board members who are also candidates. Instead they requested that candidates’ documentation be sent directly to the Election Committee and that no candidate documentation be sent to any board member.
Election Committee member Sharon Bobb opined that once notice of the annual meeting is distributed, anyone else wishing to self-nominate may do so at the annual meeting.
Several members of the board objected to the use of the candidate questionnaire and to the requirement that proxy votes must include a signature across the envelope seal. A discussion of the Election Committee’s recommendations followed, with Board Members in agreement that a number of the proposals unduly restricted or discouraged individuals from seeking election to the Board.
(R) Mr. Axelrad moved, and Ms. Kielty seconded, That the Board compose and distribute a letter from the board to specify that the candidate questionnaire is optional and that all interested candidates will be considered regardless of the form of the candidate’s written submission of their expression of interest in being a candidate, so long as that expression of interest is submitted by March 15, 2010. The motion passed: All Board members voted in favor of the motion except Charles Bressler, who abstained.
(R) Ms. Barth moved, and Ms. Fridell seconded, that Legum & Norman’s electronic voting system be
utilized at the upcoming board election. The motion passed unanimously.
(A) The board by consensus agreed that proxy votes submitted in the official envelope provided would be considered official. No seal signature is required to prove authenticity.
Floor Captains Report: A floor captain meeting was held on February 3, 2010. The primary issues discussed included mail delivery, cleanliness of trash rooms, and the role of the floor representatives. Those still experiencing difficulty with mail delivery after the blizzard can contact Rosa Taylor, manager of the Arlington Road Post Office, at (301) 941-2681. Erroneously delivered mail cannot be redistributed by the condominium but must be redelivered via the Postal Service. Stephanie Olshan will clarify this procedure with Ms. Taylor.
A sign will be posted in elevators to request that pizza boxes and other food containers be disposed of on level G1 instead of being left in the trash rooms on each floor. This will alleviate the congestion and disorganization in the trash rooms and promote cleanliness.
Several members of the board requested that the names of each floor representative be distributed so that residents know whom to contact on their floor. Ms. Olshan requested an updated list of residents from Mr. Horan, because the condominium directory is out of date and does not include renters.
Ms. Barth commented on an impromptu “hot chocolate party” which was held in the lobby for residents on the day of the second big snow blizzard. She said it was a big success thanks to Dr. Alfred Muller, who originated the idea and donated the goodies as well braved elements to get the supplies for the event.
Fitness Committee Report: On behalf of the Fitness Committee, Alexandra Kielty submitted a written report and, without objection, asked that the report be made a part of the minutes. This report is as follows:
. Fitness Committee Report
Board Meeting - February 22, 2010
Fitness Committee Members: Alexandra Kielty, Robin Schatmann, Steve Schattman, Jim Lawson, Jim Jones, and Monique Fridell
Background: The Fitness Committee was established to address one of the more important amenities that a residential building has to offer. We now recognize that it is very important to upgrade the Elizabeth fitness area in order to retrain or increase the value of our individual units. We know from realtors that the fitness area is critically important in the decision to purchase and we see realtors bringing potential clients threw the exercise area on a regular basis. Our exercise area has a number of very old pieces of equipment that are very much in need of being replaced. With this in mind, the board established a budget of $17,000 for upgrading of equipment during fiscal year 2009.
The Fitness Committee has taken a number of actions and explored options over the past number of months.
• Meetings were held with Fitness Resources, the vendor that had been previously held the maintenance contract with the Elizabeth and provided some of the equipment acquired in past procurements. They provided estimates for replacement of equipment and suggested various items for purchase (see attachment).
• A survey of residents and owners was conducted in the summer of 2009 to identify the usage and interests of residents regarding various pieces of equipment as well as the addition of televisions. The outcome of that survey has been previously shared with residents.
• An Add Service contract was established with Hartmann Design to obtain their recommendations for a more significant refurbishment of the fitness and pool areas scheduled for the FY 2011/2012. We expect a report from them some time in March.
• The Fitness Committee met with Jason Malecki from Heartline Fitness on Saturday, Feb. 20th. Heartline Fitness was established as the maintenance contractor for the Elizabeth in December 2009, a change which was due to lack of response by the prior contractor, Fitness Rsources, when repairs were requested.
Summary of Meeting with Heartline: Jason Malecki had been in our building several times and was familiar with the equipment and logistics of our exercise area. Jason was extremely helpful in identifying equipment that needed to be replaced and identifying equipment that would be reasonable within the space and general needs of a condominium of our size. He also identified a few code violations which can be readily addressed but which had not been identified previously. Generally, the idea is to remove old pieces that are cluttering up the rooms, remove equipment that is no longer used, realign the rooms into cardio and aerobic, and consolidate new equipment in one of the rooms to highlight the direction of upgrading our equipment. Jason also identified a few pieces of equipment that are at or over their useful life and should be replaced when they next breakdown (stair master and recumbent bike). His recommendations and related costs were provided today, Feb 22, and are attached for Board consideration. A presentation will be scheduled in late March or early April for residents to consider the specifics of replacement items and logistics. An announcement will be made in the near future for when this will occur.
Depending upon the presentation and board consideration, it is hoped that a vote on this can be held at the April Board Meeting.
Attachments [Omitted]
Comments from the Floor:
A resident asked what cable provider would supply the televisions which might be added to the fitness room. Ms. Barth responded that Comcast has a contract with the building, which includes the common area television and Internet service.
The same resident asked if a resume was required for those interested in nominating themselves to the board. It was clarified that background information could be delivered in any written format.
A resident asked why the lock project took so long to be put into action. Dr. Cunningham responded that design changes due to renovation were a factor and that an earlier order of locks had to be replaced.
A resident who was completing a term on the board of directors in his previous residence offered his assistance to the board in establishing a stable election process. He suggested that management could set up the process.
A resident was disturbed by the candidate questionnaire and found it discouraging. He suggested that questions for candidates should include a distinction between owners and renters, as well as whether the candidate has been convicted of any crimes.
The same resident requested information about the extra costs for direct debit. He had requested information in July 2009 but received no response from Legum & Norman. Management agreed to provide information to the resident.
A resident reacted to implications that the last board election was compromised and implored the board to improve the election system in order to maintain the integrity of the election results.
A resident requested that the board examine utility costs and consider the amount of energy potentially wasted by existing windows.
The first draft of these minutes was prepared by Recording Secretary Lisa Rowan.
Adjournment: Dr. Cunningham adjourned the meeting at 10:00 p.m.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Tuesday, February 23, 2010
Summary of February 2010 Elizabeth Condo Board Meeting
Present at the meeting: Woody Cunningham, Jeffrey Axelrad, Judi Barth, Charles Bressler, Monique Fridell, Alexandra Kielty, Al Muller (late), Scott Murdoch, Mike Horan, recorder of meeting minutes
Treasurer’s Report
-- Monique Fridell will meet February 23 with volunteers to complete the fixed asset write-off project.
Management report (no president report this meeting)
--Staff stayed over more than one shift during the blizzards. Good report on loyal employees.
--Engineering study delayed. Only one proposal on time, two came in late and now waiting the 4th.
--Piping complete.
--Electronic water detectors arrived.
--Lock replacement project just starting tomorrow. 89 signed up for replacements.
--Management staff working on a personal handbook.
--Next month L&N website program will be demo-ed.
--House Bill 842 –asking for support. Gives associations limited priority over the first mortgage. Give the association limited lien of first 6 months. Asked for this to be in an email.
L&N changing banks.
--Landscaping proposals won’t be in until next month.
OLD BUSINESS
--Façade work done.
--Emergency generator $199,000. Had larger bids just under $300,000. Going with Power Services.
MOTION: emergency generator purchased approved.
Renovation:
--Had to have modifications. Architect plans were hand delivered to the County on February 23 in compliance with 2009 IECC Code , the latest energy efficiency code. Could take as long as 6 weeks. We will use LED lights where appropriate. Will have the ability to dim the lighting and will be up to date for all the codes.
--Next couple of days invitation will go out to residents to hear about renovation design plus samples. Wine & cheese reception on March 9 at 7 PM. Bid letters are being worked on by Hartman Design Group. These are expected to be out the first week of March.
Exercise Room update:
--Board previously agreed to include $17,000 for equipment.
--Fitness Resources not responsive to request for repairs. Got a new contractor.
--Will have an open meeting to decide some issues about equipment and use of space.
Meet the Candidate Night: April 21
MOTION: Moderator of meet the candidates program will not be a Board member. President will choose moderator for meet candidates night.
NEW BUSINESS
Snow blower didn’t work properly. Also we need a commercial one $1200-$1300. We have one for home use.
MOTION: Commercial snowblower approved for future purchase.
Set date for meetings
Board workshop: no comments from the floor in this meeting. Discuss & approve a budget for next year. A new 5 year plan. March 11. Monique Fridell said this is too much to do in one meeting. Also they won’t have all the data needed. Pepco bill always late.
Floor Captains Report:
--Mail being thrown around in mail corridor. Worry over missing 1099s. Suggestion is to take misdirected mail to front desk so that reception can return that mail to the postal worker for proper handling. Contact Stephanie Olshan (Skolshan@aol.com) for how to reach our USPS representative for any complaints.
--Trash being thrown on floor in our trash rooms.
--Floor captains are now welcoming newcomers.
Report from Election Committee: The Committee report was given as follows
ELECTION COMMITTEE REPORT
TALKING POINTS February 22, 2010
Intro of Committee
--Alenier, Bobb, Downey, Feldman
Qualifications of Committee members
--All owners, some original owners.
--Experience with past election committees.
--Experience as Election Judge.
Memo Calling for Board Candidate Nominations
--Same memo sent out every year.
--Reminds candidates of what Board members are responsible for.
--Memo went out this year Feb 1.
Candidate Questionnaire
--Most owners do not come to monthly Board meetings or Meet the Candidates Night.
--Difficult to compare candidates on equal footing.
--Elections Committee wanted a uniform way to compare candidates.
--Notices will go up around the building to remind people to respond to this call.
--People who come to monthly meeting should be encouraging others to run or run themselves.
Election Committee products cleared by ECA lawyer to ensure everything is in accord with MD condo law & ECA Bylaws
Proxies
--every year lots of confusion & issues about proxies.
--Recommendation to have absentee owners vote their proxies, put them in a sealed envelope and to sign across the seal.
--Send proxy to front office or front desk for placement in lock box.
--Same procedure for proxy carried by a representative to the meeting.
Electronic Voting System
--simple to use.
--uses barcodes.
--quickly tabulates votes.
--Instantaneous Quorum (No waiting, no wasted time).
--$2 per unit and well worth cost.
--approved by ECA lawyer & used by L&N. we are not guinea pigs.
Timeline
--Help ECA be in accord with MD condo law & ECA Bylaws.
--Call for Candidate Nomination.
Discussion of Election Committee Recommendations:
1. Several Board members were unhappy with the questionnaire because they felt it unfairly eliminated or intimidated possible candidates. The committee explained that the basis of the questionnaire came from a text developed by Monique Fridell and sent to Woody Cunningham in Dec 2008. Dr. Muller pointed out, the League of Women Voters uses a questionnaire in its work.
2. The committee was accused of forcing candidates to provide information that some candidates would rather not reveal. The committee explained that the questionnaire, which is similar to one suggested by the ECA lawyer Jason Fisher, is designed to provide as much information as possible to unit owners who do not live here or attend Board meetings or the Meet the Candidates Night and to provide information relevant to the fiduciary obligations of a Board member, as outlined in the President's Call for Nominations sent out February 1, namely: “financial operations, personnel management, capital improvement projects, budgeting, planning, maintenance and repair projects.” It was also pointed out that candidates could submit a blank questionnaire, fail to answer some or all of the questions, refuse to submit a photograph, and that owners could infer what they like from the submission. Candidates may also submit a resume, bio, or CV, if they wish.
3. Several Board members were not pleased with the Timeline suggested by the Elections Committee and did not understand the Maryland Condo Law that requires the call for candidates to go out 45 days before the notice of election. A compromise was struck and the date extended from March 1 to March 15. The Call for Candidates went out in early February under the ECA President’s signature but apparently not with consensus of the ECA Board.
4. A couple of Board members questioned use of sealed envelopes for proxies. Scott Murdoch said this was standard practice in other elections he had been involved in.
5. The Elections Committee, a group of owners called into service by the ECA president, issued a comprehensive written report to the Board on February 11, 2010, containing recommendations for Board action. In delivering its oral report, the Committee welcomed questions by the Board and residents and the opportunity to clarify its recommendations. Although it seemed obvious, the Board had to be reminded that they could accept, reject, or modify the recommendations. The Elections Committee spent considerable time collecting information, writing various documents including their recommendations, and meeting with Legum & Norman representatives to review the electronic balloting system and the ECA lawyer to ensure full compliance with Maryland Condo laws and the ECA Bylaws. The Committee recognizes that while the Board has every right to ask questions, doing so in an angry hostile manner, or impugning the motives and integrity of committee members is not only unprofessional, but disgraceful business practice that will discourage other volunteers from working with future boards. It should go into the record that the Committee was treated rudely and disrespectfully in a public meeting and not thanked for their work.
6. The Board approved use of the electronic balloting system, including handling of proxies delivered in sealed envelopes.
[Note: This summary includes some of the highlights of the ECA Board meeting held in February. A more detailed report will appear in the official ECA minutes for February which will be published after approval in March. Readers of this blog are invited to comment with additional information or clarifications.]
Treasurer’s Report
-- Monique Fridell will meet February 23 with volunteers to complete the fixed asset write-off project.
Management report (no president report this meeting)
--Staff stayed over more than one shift during the blizzards. Good report on loyal employees.
--Engineering study delayed. Only one proposal on time, two came in late and now waiting the 4th.
--Piping complete.
--Electronic water detectors arrived.
--Lock replacement project just starting tomorrow. 89 signed up for replacements.
--Management staff working on a personal handbook.
--Next month L&N website program will be demo-ed.
--House Bill 842 –asking for support. Gives associations limited priority over the first mortgage. Give the association limited lien of first 6 months. Asked for this to be in an email.
L&N changing banks.
--Landscaping proposals won’t be in until next month.
OLD BUSINESS
--Façade work done.
--Emergency generator $199,000. Had larger bids just under $300,000. Going with Power Services.
MOTION: emergency generator purchased approved.
Renovation:
--Had to have modifications. Architect plans were hand delivered to the County on February 23 in compliance with 2009 IECC Code , the latest energy efficiency code. Could take as long as 6 weeks. We will use LED lights where appropriate. Will have the ability to dim the lighting and will be up to date for all the codes.
--Next couple of days invitation will go out to residents to hear about renovation design plus samples. Wine & cheese reception on March 9 at 7 PM. Bid letters are being worked on by Hartman Design Group. These are expected to be out the first week of March.
Exercise Room update:
--Board previously agreed to include $17,000 for equipment.
--Fitness Resources not responsive to request for repairs. Got a new contractor.
--Will have an open meeting to decide some issues about equipment and use of space.
Meet the Candidate Night: April 21
MOTION: Moderator of meet the candidates program will not be a Board member. President will choose moderator for meet candidates night.
NEW BUSINESS
Snow blower didn’t work properly. Also we need a commercial one $1200-$1300. We have one for home use.
MOTION: Commercial snowblower approved for future purchase.
Set date for meetings
Board workshop: no comments from the floor in this meeting. Discuss & approve a budget for next year. A new 5 year plan. March 11. Monique Fridell said this is too much to do in one meeting. Also they won’t have all the data needed. Pepco bill always late.
Floor Captains Report:
--Mail being thrown around in mail corridor. Worry over missing 1099s. Suggestion is to take misdirected mail to front desk so that reception can return that mail to the postal worker for proper handling. Contact Stephanie Olshan (Skolshan@aol.com) for how to reach our USPS representative for any complaints.
--Trash being thrown on floor in our trash rooms.
--Floor captains are now welcoming newcomers.
Report from Election Committee: The Committee report was given as follows
ELECTION COMMITTEE REPORT
TALKING POINTS February 22, 2010
Intro of Committee
--Alenier, Bobb, Downey, Feldman
Qualifications of Committee members
--All owners, some original owners.
--Experience with past election committees.
--Experience as Election Judge.
Memo Calling for Board Candidate Nominations
--Same memo sent out every year.
--Reminds candidates of what Board members are responsible for.
--Memo went out this year Feb 1.
Candidate Questionnaire
--Most owners do not come to monthly Board meetings or Meet the Candidates Night.
--Difficult to compare candidates on equal footing.
--Elections Committee wanted a uniform way to compare candidates.
--Notices will go up around the building to remind people to respond to this call.
--People who come to monthly meeting should be encouraging others to run or run themselves.
Election Committee products cleared by ECA lawyer to ensure everything is in accord with MD condo law & ECA Bylaws
Proxies
--every year lots of confusion & issues about proxies.
--Recommendation to have absentee owners vote their proxies, put them in a sealed envelope and to sign across the seal.
--Send proxy to front office or front desk for placement in lock box.
--Same procedure for proxy carried by a representative to the meeting.
Electronic Voting System
--simple to use.
--uses barcodes.
--quickly tabulates votes.
--Instantaneous Quorum (No waiting, no wasted time).
--$2 per unit and well worth cost.
--approved by ECA lawyer & used by L&N. we are not guinea pigs.
Timeline
--Help ECA be in accord with MD condo law & ECA Bylaws.
--Call for Candidate Nomination.
Discussion of Election Committee Recommendations:
1. Several Board members were unhappy with the questionnaire because they felt it unfairly eliminated or intimidated possible candidates. The committee explained that the basis of the questionnaire came from a text developed by Monique Fridell and sent to Woody Cunningham in Dec 2008. Dr. Muller pointed out, the League of Women Voters uses a questionnaire in its work.
2. The committee was accused of forcing candidates to provide information that some candidates would rather not reveal. The committee explained that the questionnaire, which is similar to one suggested by the ECA lawyer Jason Fisher, is designed to provide as much information as possible to unit owners who do not live here or attend Board meetings or the Meet the Candidates Night and to provide information relevant to the fiduciary obligations of a Board member, as outlined in the President's Call for Nominations sent out February 1, namely: “financial operations, personnel management, capital improvement projects, budgeting, planning, maintenance and repair projects.” It was also pointed out that candidates could submit a blank questionnaire, fail to answer some or all of the questions, refuse to submit a photograph, and that owners could infer what they like from the submission. Candidates may also submit a resume, bio, or CV, if they wish.
3. Several Board members were not pleased with the Timeline suggested by the Elections Committee and did not understand the Maryland Condo Law that requires the call for candidates to go out 45 days before the notice of election. A compromise was struck and the date extended from March 1 to March 15. The Call for Candidates went out in early February under the ECA President’s signature but apparently not with consensus of the ECA Board.
4. A couple of Board members questioned use of sealed envelopes for proxies. Scott Murdoch said this was standard practice in other elections he had been involved in.
5. The Elections Committee, a group of owners called into service by the ECA president, issued a comprehensive written report to the Board on February 11, 2010, containing recommendations for Board action. In delivering its oral report, the Committee welcomed questions by the Board and residents and the opportunity to clarify its recommendations. Although it seemed obvious, the Board had to be reminded that they could accept, reject, or modify the recommendations. The Elections Committee spent considerable time collecting information, writing various documents including their recommendations, and meeting with Legum & Norman representatives to review the electronic balloting system and the ECA lawyer to ensure full compliance with Maryland Condo laws and the ECA Bylaws. The Committee recognizes that while the Board has every right to ask questions, doing so in an angry hostile manner, or impugning the motives and integrity of committee members is not only unprofessional, but disgraceful business practice that will discourage other volunteers from working with future boards. It should go into the record that the Committee was treated rudely and disrespectfully in a public meeting and not thanked for their work.
6. The Board approved use of the electronic balloting system, including handling of proxies delivered in sealed envelopes.
[Note: This summary includes some of the highlights of the ECA Board meeting held in February. A more detailed report will appear in the official ECA minutes for February which will be published after approval in March. Readers of this blog are invited to comment with additional information or clarifications.]
January 2010 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting January 21, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Rebekah Hutton ................Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:36 pm.
Approval of Minutes:
MOTION
Ms. Kielty moved, Dr. Muller seconded, to approve the November 16, 2009, meeting minutes. The motion passed unanimously. [NOTE from Karren Alenier: The Board erroneously was reported to have approved the November minutes.]
President’s Report: Mr. Cunningham thanked the Energy Committee and residents for their continued efforts to reduce utility usage. He reported that in the first five months of this fiscal year, the Association has reduced gas and electric usage each month compared to last year. He stated that peak usage is usually in February and encourage residents to continue conservation efforts.
A RFP will be drafted to seek the services of an engineering consulting firm to assist the community in determining what energy efficiency measures/equipment, including window and balcony door replacements, are appropriate. The three companies previously interviewed by the Energy Committee will be invited to submit bids.
Treasurer’s Report: Ms. Fridell reported that 2009 audited fiscal year financial statements were distributed to all residents. She reminded residents of a workshop on February 2, 2010, at 7:30 p.m. to go over the audited statements with residents.
Ms. Fridell also asked for three owners to volunteer to assist her over the next two months to identify and clear fully depreciated or no longer existing assets from ECA’s balance sheet in advance of adding new assets relating to the refurbishment project. The result of this project will be a write-off amount to be approved by the Board and ECA’s auditors which will be reflected on the 2010 audited balance sheet. Two owners volunteered.
Old Business:
a. Funding major projects: Mr. Cunningham asked Ms. Fridell to explain her proposed process for decision-making regarding identifying, prioritizing and funding major capital expenditure projects such as window and door replacement.
Ms. Fridell reported that the Energy Committee began preliminary due diligence last year regarding the identification of energy conservation projects, including the replacement of windows and balcony doors. She has also been researching financing options for such multimillion dollar projects for over a year. On 8/27/09 she had presented to the Energy Committee an outline of considerations for such a project and a collective decision making process regarding analysis, due diligence, and funding. She stated that the Board has been criticized for lack of transparency in issues such as management company selection and refurbishment project. In order not to have this criticism leveled at the Board again, she stated that it would be important to explain in public and in writing, a transparent decision-making process agreed upon by the Board and explained to owners. The outline of steps associated with this process is as follows:
“OBJECTIVE
The purpose of this meeting is threefold:
1) to outline issues relating to financing large-ticket energy saving equipment and capital expenditures
2) to describe several possible financing options
3) to identify next steps in the due diligence and decision-making process
1. KEY ISSUES RELATING TO ANY FINANCING OPTION
1. Bylaws
2. Five Year Plan as determined by Board of Directors
3. Quantify costs/benefits
4. Owners support for action plan
a. Supermajority vote, if required by Bylaws
b. General information and “buy-in”
5. Amount to be financed, net of applicable tax credits
6. ECA Annual Budget/ability to service debt
7. Management capacity to manage project
8. Timing
a. Size/cost/benefit/urgency versus other critical expenditures
b. Staging of expenditures/construction
c. Availability/deadline of applicable tax credits
9. Financial Conditions
a. Interest rates
b. Availability of credit
c. Tenor of financing
d. Structure/collateral required
e. Amount/conditions of applicable tax credits
II. POSSIBLE FINANCING OPTIONS
1. Reserves
2. Capital Assessments (requiring 75% supermajority owner vote)
3. Bank Loan
4. Private Placement Bond Issue
5. OEM financing
6. Municipal assistance
7. Voluntary/individual purchases
8. Some combination of the above, depending upon total project cost
III. SUGGESTED NEXT STEPS
Energy Committee
➢ Due diligence on consultants/advisors
➢ Propose consultant to Board of Directors
➢ Due diligence on project costs/equipment to be purchased
• Due diligence on applicable tax credits
• Quantify cost/benefits, establish timing/phasing of project(s)
• Make proposal to Board of Directors
• Public presentation w/Treasurer to Owners of project features, costs/benefits and financing plan
Board of Directors
➢ Engage legal due diligence on Bylaws, applicable tax credits
• Approve/contract consultant/advisor
• Receive advice of consultant/advisor
• Prioritize projects recommended by consultant
• Approve project dimensions/costs
• Approve financing structure from Treasurer
• Propose capital assessment to Owners vote, if necessary
• Approve Annual Budget, including financing of project costs
• Include project in ECA Five Year Plan
• Approve ECA Five Year Plan
Treasurer
➢ Analyze/determine viable financing options
• Receive total project cost
• Solicit debt financing proposals, if necessary
• Design alternative financing structures and propose to Board
• Present Board-approved financing structure to Owners in conjunction with Energy Committee project presentation
• Adjust Annual Budget to take into account financing of project costs
• Include project into ECA Five Year Plan for Board approval
• Negotiate, document and close financing in conjunction with ECA counsel
Owners
• Participate in and assist Energy Committee, Treasurer and Board of Directors in professional due diligence
• Attend presentation regarding project costs/benefits and financing plan and raise issues/questions
• Vote on proposed capital assessment, if necessary
• Review Annual Budget and proposed project financing and raise issues
• Attend Annual Meeting”
Ms. Fridell verbally reviewed each point of the document and briefly explained each to ensure common understanding.
Regarding financing options, Ms. Fridell stated that it is likely that for a large project such as the replacement of windows and balcony doors, a combination of several available funding options will likely be necessary and that all possibilities must be explored and considered.
Mr. Cunningham asked the Board to vote in principle to support the process, emphasizing that it would be suitable for any major project. Discussion ensued.
Mr. Bressler cited another funding option. The Green Briar Condos executed a window replacement project recently. The Board of Green Briar negotiated a bulk rate with the vendor for individual owners to purchase windows over a set period of time. Owners then had the option to purchase the windows at the bulk rate at the time of their choosing. There could also be a requirement that if replacements are not made during the life of ownership, then no sale of a condominium could occur without the windows being replaced Dr.Muller expressed support for Mr. Bressler’s suggestion, citing a similar suggestion from one of the The Elizabeth owners.
Ms. Fridell will add to the process document Mr. Bressler’s individual funding option and other edits requested by Board members.
(R) Mr. Axelrad moved, Dr. Muller seconded, to approve as amended, and as a general practice, the due diligence decision-making process outlined by Ms. Fridell for execution of major projects. The motion passed unanimously.
b. Lobby horizontal piping: Mr. Horan reported that the lobby horizontal piping project was almost complete. All piping is in place, and the insulation should be completed by February 12, 2010.
c. Emergency generator: Mr. Murdoch reported that there was a bidders’ conference on January 14, 2010, and final bids were due January 22. Two bidders requested an extension until January 27. Once all bids have been received, members of the Board will convene to review the proposal with bid comparisons.
d. Garbage room light sensors: Mr. Murdoch reported that there had been a significant reduction in gas and water usage in the previous two months. He has added to the Management Report a utility consumption chart comparing usage from 2007 to the present. Dr. Muller asked Mr. Horan to explain the light sensors in the garbage rooms. Mr. Horan reported that motion sensors had been installed in the garbage rooms to save energy consumption. The light will stay on as long as there is movement in the room.
e. Lobby renovation project: Ms. Barth reported that last week, Hartman Design Group completed work on documents to submit to the County and contractors. The designs have already been sent to the architect for review. The architect has two weeks to review and then will submit to the County. Simultaneously, Hartman is preparing a letter to ten contractors with whom the firm has previously worked. The bidders’ conference will be held in February, and Hartman will conduct a walk through and set a date for bids to be returned. The hope is that both the County approval and the bidding process will be completed in early March. Hartman has worked on many similar projects with other communities and reported that contractor bids had all come in lower than expected. A presentation of the design plans to all residents will be made at the end of February or early March.
New Business:
a. Energy Conservation Consulting Firm RFP: Mr. Cunningham reported that at the last meeting the Energy Committee recommended three engineering consulting firms which could be capable of performing the energy conservation analysis for ECA. Mr. Murdoch has prepared RFP with proposal requirements and scope and requested a quick response from bidders. The Energy Committee chair subsequently reported the committee had been interviewing engineers for the in depth energy conservation study. The committee recommends that bids be solicited from three organizations: Metro Engineering; LS Grimm Consulting Engineers; and Mendoza Rebas. All three contractors indicated they could do the work for $10k-$20k
Mr. Cunningham reported that while the reserve study was helpful, it was largely based on useful life standards for various types of equipment and not generally based specifically on the actual state of ECA’s common elements. As a result, the Board is now seeking a consulting firm to assist the Board in decision making regarding energy consumption and possible replacement of windows and doors. He recommended that the Board approve the RFP. Discussion ensued regarding possible expense which may range from $10K - $20K.
Ms. Fridell requested that part of the consultant’s scope include the possibility of submetering. She stated that ECA’s cost structure is higher than those of other condos because the Association pays for utilities. This presents a “moral hazard” issue in the sense that individual interests are not necessarily aligned to conserve energy costs. The Association as a whole pays for utilities and there is no way to tie individual costs to individual usage. Mr. Axelrad suggested that the cost of submetering may decrease dramatically within a few years due to imminent technological developments. The Board’s consensus was to obtain expert advice on this topic.
Mr. Axelrad had prepared an Analysis of the Window/Door issue and requested that it be included in the Minutes. The Board agreed. Mr. Axelrad’s Analysis, which follows, should be considered to be an integral part of these Minutes:
“ OUTLINE OF Axelrad’s WINDOW/DOOR ANALYSIS
• Some residents have substantial draftiness in their units. This problem has persisted since The Elizabeth was first occupied and has not been corrected.
• Because the problem is not new, the problem is unlikely to be related solely to the age of windows and doors. In fact, as an experiment a long time ago, the Board installed new windows in one unit. The owners report that the new windows did not solve the problem. Whether the original windows and doors are faulty, whether installation is a cause of the problem, whether façade construction is a source of the problem or whether some combination of causes or additional cause for the problem exists is not known.
• The Final Report submitted by Reserve Advisors, Inc. on January 13, 2009 to The Elizabeth Condominium Association does not recommend immediate replacement of windows and doors. This Report proposes that the windows and doors be replaced in steps over a four year period, commencing in FY 2021.
• The Preliminary Energy Audit prepared by American Renovators for The Elizabeth, dated January, 2009, says that the windows and doors “have held up well considering their age.” This document goes on to “recommend that thermal efficient, double-pane insulated glass windows and balcony doors be specified for replacement within the near future.” The document’s projection is that this action could result in $34,303 in annual energy cost savings, at an installation cost of approximately $2,394,800. At present our “Five Year Plan,” used in determining owner monthly fees, does not include any amount for such a cost.
• The Energy Committee arranged a meeting for residents of The Elizabeth to hear the views and suggestions of the Montgomery County official charged with encouraging energy savings. This official opined that replacement of The Elizabeth’s windows and doors at this time would not be cost effective.
• Although I am not a tax lawyer, my understanding is that for last year and the current year, if a person makes energy-conscious purchases that reduce the amount of electricity or other energy resources used in one’s home, a tax credit of up to $1,500 is available. The instructions to IRS form 5695, for claiming this credit, recite that “[i]f you are a member of a condominium management association for a condominium you own . . ., you are treated as having paid your proportionate share of any costs of such association or corporation.” The tax credit is allowed to offset only a fraction of the cost (up to 30 % at most).
• The Elizabeth’s Board should now take every reasonable action to assist unit owners to resolve the drafty apartment problem. The Board should immediately ask management to survey engineering or other competent contractors able to determine the source of the problem and propose effective action, and provide this information to the Board at or before the Board’s next meeting. The Board should then decide to retain a contractor to propose specific options for the Board to select; these options would include options requiring Board action or action, if desired, by the owners of individual units. If the solution warrants expenditure of Condominium Association funds (rather than arranging a fee schedule with a contractor for individual unit owners to utilize if they wish), the Board should take Monique’s Energy Committee presentation into account if it intends to retain a contractor to implement the solution.”
Ms. Kielty asked if the RFP will address the issues raised in this meeting such as the cost/benefit of owners replacing windows individually, as the case of the Green Briar condo mentioned by Mr. Bressler. She expressed concern that the contractor would address the contract differently due to the scale and scope of doing the replacements individually versus collectively.
(R) Ms. Barth moved, Mr. Axelrad seconded, to issue an RFP to three or more companies with two weeks time frame to respond with proposals. The motion passed unanimously.
b. Water detectors: Mr. Horan showed residents a water leakage detector, various models of which ranges from $7-$30, all with similar functions. Zircon Co., offered a bulk rate of $7.00/unit if the Association purchases at least 400 detectors un-packaged. Purchasing 400 would provide for one per Unit with extras to be available for purchase by owners who wanted additional detectors in their apartments.
(R) Mr. Axelrad moved, Ms. Kielty seconded, to authorize management to purchase 600 Zircon water leak detectors at a total cost of $4200 ($7 each); and to distribute one to each unit. The remaining units are to be made available to residents at cost. The motion passed unanimously.
c. Contracts: There were no contracts outstanding that required Board attention.
d. Pet registration form: Dr. Muller thanked Ms. Fridell for providing the proposed form. Ms. Fridell asked Management for details on the plan to execute and manage the database of pet registrations. Mr. Horan stated that he has a list of known pet owners and will send letters with registration form with a date for return request. They also have a camera to take pictures of the pets and their owners. Ms. Barth asked how the weight of animals would be determined. Mr. Cunningham stated that it would be the honor system for residents to report the weight of pets. Ms. Fridell said that Management would have to confirm the pet’s Montgomery County license number and vaccination record. Mr. Horan will edit letter to request that owners bring copies of the license and vaccination record when they have their pictures taken. Mr. Cunningham stated that the letter should go to all owners, not only to known pet owners.
(R) Dr. Muller moved, Mr. Bressler seconded, to approve the pet registration form and proposed registration process. The motion passed, all Board members voting affirmatively except for Mr. Axelrad, who abstained.
e. Landscape design: Mr. Horan reported that Valley Crest put together a proposed landscape design for the front and back of the building complete with computer generated before/after images. Ms. Fridell stated that she understood the plan was to request a second landscape designer plan. Mr. Horan stated that Valley Crest’s designer came to the property and made the proposal. The need to consider a second proposal was discussed. Mr. Bressler commented that the Valley Crest proposal was obtained at no cost but a second proposal can be obtained if the Board desired. Ms. Kielty stated that the proposal process needed to be completed quickly in order to ensure that a plan was in place in time for planting season. Mr. Horan was directed to obtain at least one additional proposal from another landscape design firm and that such proposal ought to include a similar computer generated design for consideration. Mr. Horan agreed to make this request the following day.
(A) The Board directed Mr. Horan to provide the Board with a list of all landscaping proposals received with a list of each contractor’s proposed plantings; and to include his recommendation.
(R) Ms. Barth moved, Mr. Bressler seconded, to direct management to obtain second bid at a cost of no more than $750. The motion passed unanimously.
Ms. Kielty noted that in some cases there seems to be a communication breakdown in terms of who is responsible for taking follow-up actions – e.g., committees, the Board and/or the Management. Mr. Murdoch stated that it is Management’s function to facilitate the committees in the performance of their functions as assigned by the Board. He stated that Management can equally assist committees with RFPs and due diligence as it does for the Board.
f. Auditor proposal: Mr. Cunningham reported that the Board received a proposal from Deleon & Stang, ECA’s current auditor, for the FY 2010 audit at a cost of $12,500. Ms. Fridell asked Management to research how long the firm had been conducting the Association’s audits. She mentioned Sarbanes Oxley requirements that require audit firms be changed periodically; however, there would be a benefit to maintaining D&S for continuity since this will be L&N’s first audit with ECA. It is expected that Treasurer Fridell will provide further guidance on this point.
Committee Reports:
Energy Committee: Discussed earlier in these minutes.
Social Committee: Ms. Barth reported that the Holiday Party had been a success. Mr. Murdoch reported that the financials reflect that the Social Committee is over budget for the month; however this is only due to timing difference for the month and is not expected to be the case for the year. Ms. Barth reported that they were actually under budget by $300 for the holiday party. She stated that the only upcoming event planned is for the presentation of the renovations in late February or March.
Dr. Muller reported that he has monitored the TV room and found it to be used frequently but not in a disruptive manner.
Election Committee: Mr. Cunningham reported that the Board had appointed a committee to look into the election process and the process for identifying new candidates. The committee has met but has not yet made its recommendations to the Board.
Fitness Committee: Ms. Kielty reported that last month the Board voted to ask Hartman Design Group develop plans for Exercise Room. Hartman will be out in the next few weeks to develop a design for the Exercise room.
Mr. Murdoch formally apologized for the lateness of the Management Report this month. He stated that he and Ms. Fridell had been working on correcting the financial statements, and it took some time to get the final version of the financials from L&N Accounting.
He also reported on the change to a new bank for ECA’s lockbox account. L&N is moving all lockbox banking services from BB&T to Community Association Bank (CAB), effective April 1, 2010. He stated that assessments collection for April, May and June will go to CAB. Some of the advantages of CAB are that it specializes in association banking services; facilitates bill payer systems; and pays interest on lockbox account balances. He stated that owners will receive a new coupon book for April, May and June 2010 condo fee payments. Owners who pay via coupon will simply need to send payment to CAB with the new coupons.If residents use their bank’s bill payer system, they will need to instruct their banks to send payments to the new account at CAB. Changes in direct debit payments will be handled by L&N with no action required on the part of the residents who have their condo fee payments debited automatically by ECA.
Comments from the floor:
-A resident asked about Green Briar’s handling of their window replacement project. She expressed concern that if The Elizabeth followed a similar plan, it could violate the bylaws; it could result in a situation where only some windows have been replaced and others had not. She also expressed concern that if some windows were replaced by owners and others opted to wait, the same style of window may not be available at a later time. Mr. Cunningham stated that before any plan is approved, the Board will submit it to counsel to ensure that it meets the bylaws.
-The resident also asked if L&N could be of assistance in large projects as discussed in Ms. Fridell’s plan since L&N has likely worked with other communities on similar projects. Mr. Murdoch stated that L&N can provide advice and recommendations
.
-The resident also commented on submetering. Mr. Cunningham stated that such questions were best directed to the energy-efficiency consulting engineer once a firm is selected.
-A resident asked if Management could have a sign up sheet for water detectors to ensure that owners who want more than one are able to reserve them and to ensure that the amount ordered will accommodate demand. Mr. Cunningham agreed and asked Mr. Horan to ask the contractor if it would be willing to make additional units available at the same price at a later date if it became necessary to order 200 or 300 more.
-A resident asked about the process for window replacements if the individual option is chosen. She asked if the owner would be responsible for paying for the scaffolding, etc. Mr. Cunningham stated that it would be a question for the consulting engineer. Mr. Bressler stated that if the individual option were chosen, it would likely be done by tier, and residents would have a set timeframe to opt in.
-A resident expressed concern that the tax credit for energy improvements may only be applicable to those improvements which are completed in 2010. Brief discussion ensued regarding definition of cost benefit as it relates to the window replacement project.
-A resident suggested that comments from the floor be moved to the beginning of the meeting.
-A resident expressed concern regarding the individual option for window replacement. He stated that he had spoken to a contractor who suggested that even if a resident replaced a window, the window would have to be replaced again when the whole tier was replaced because of structural issues.
-A resident asked what would happen regarding common area windows if the individual option was chosen.
The resident also asked about the replacement of the balcony doors on Tier 14 due to the soffits (the underside of a building).
-A resident reported that she heard a continual loud grinding noise in her unit. The issue has been reported to management.
-A resident expressed concern about the relationship between wind/temperature problems and leakages because some of the balcony doors leak. Mr. Horan stated that some balconies slope towards the building rather than away from it and cause water to run back into the unit instead of washing away.
-A resident asked about residents who are currently replacing their door locks. She asked if the locks would have to be changed again at the time of the refurbishment project. Mr. Cunningham stated that one reason for the delay was to ensure consensus between the designer and the future availability of the same model of locks. He also stated that he felt it was the Board’s responsibility to ensure equitability.
Adjournment: The President adjourned the meeting at 9:45 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Rebekah Hutton of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting January 21, 2010
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
Others present:
Scott Murdoch ............Community Manager, Legum & Norman
Michael Horan ............Property Manager, Legum & Norman
Rebekah Hutton ................Recording Secretary
Call to Order: Mr. Cunningham called the meeting to order at 7:36 pm.
Approval of Minutes:
MOTION
Ms. Kielty moved, Dr. Muller seconded, to approve the November 16, 2009, meeting minutes. The motion passed unanimously. [NOTE from Karren Alenier: The Board erroneously was reported to have approved the November minutes.]
President’s Report: Mr. Cunningham thanked the Energy Committee and residents for their continued efforts to reduce utility usage. He reported that in the first five months of this fiscal year, the Association has reduced gas and electric usage each month compared to last year. He stated that peak usage is usually in February and encourage residents to continue conservation efforts.
A RFP will be drafted to seek the services of an engineering consulting firm to assist the community in determining what energy efficiency measures/equipment, including window and balcony door replacements, are appropriate. The three companies previously interviewed by the Energy Committee will be invited to submit bids.
Treasurer’s Report: Ms. Fridell reported that 2009 audited fiscal year financial statements were distributed to all residents. She reminded residents of a workshop on February 2, 2010, at 7:30 p.m. to go over the audited statements with residents.
Ms. Fridell also asked for three owners to volunteer to assist her over the next two months to identify and clear fully depreciated or no longer existing assets from ECA’s balance sheet in advance of adding new assets relating to the refurbishment project. The result of this project will be a write-off amount to be approved by the Board and ECA’s auditors which will be reflected on the 2010 audited balance sheet. Two owners volunteered.
Old Business:
a. Funding major projects: Mr. Cunningham asked Ms. Fridell to explain her proposed process for decision-making regarding identifying, prioritizing and funding major capital expenditure projects such as window and door replacement.
Ms. Fridell reported that the Energy Committee began preliminary due diligence last year regarding the identification of energy conservation projects, including the replacement of windows and balcony doors. She has also been researching financing options for such multimillion dollar projects for over a year. On 8/27/09 she had presented to the Energy Committee an outline of considerations for such a project and a collective decision making process regarding analysis, due diligence, and funding. She stated that the Board has been criticized for lack of transparency in issues such as management company selection and refurbishment project. In order not to have this criticism leveled at the Board again, she stated that it would be important to explain in public and in writing, a transparent decision-making process agreed upon by the Board and explained to owners. The outline of steps associated with this process is as follows:
“OBJECTIVE
The purpose of this meeting is threefold:
1) to outline issues relating to financing large-ticket energy saving equipment and capital expenditures
2) to describe several possible financing options
3) to identify next steps in the due diligence and decision-making process
1. KEY ISSUES RELATING TO ANY FINANCING OPTION
1. Bylaws
2. Five Year Plan as determined by Board of Directors
3. Quantify costs/benefits
4. Owners support for action plan
a. Supermajority vote, if required by Bylaws
b. General information and “buy-in”
5. Amount to be financed, net of applicable tax credits
6. ECA Annual Budget/ability to service debt
7. Management capacity to manage project
8. Timing
a. Size/cost/benefit/urgency versus other critical expenditures
b. Staging of expenditures/construction
c. Availability/deadline of applicable tax credits
9. Financial Conditions
a. Interest rates
b. Availability of credit
c. Tenor of financing
d. Structure/collateral required
e. Amount/conditions of applicable tax credits
II. POSSIBLE FINANCING OPTIONS
1. Reserves
2. Capital Assessments (requiring 75% supermajority owner vote)
3. Bank Loan
4. Private Placement Bond Issue
5. OEM financing
6. Municipal assistance
7. Voluntary/individual purchases
8. Some combination of the above, depending upon total project cost
III. SUGGESTED NEXT STEPS
Energy Committee
➢ Due diligence on consultants/advisors
➢ Propose consultant to Board of Directors
➢ Due diligence on project costs/equipment to be purchased
• Due diligence on applicable tax credits
• Quantify cost/benefits, establish timing/phasing of project(s)
• Make proposal to Board of Directors
• Public presentation w/Treasurer to Owners of project features, costs/benefits and financing plan
Board of Directors
➢ Engage legal due diligence on Bylaws, applicable tax credits
• Approve/contract consultant/advisor
• Receive advice of consultant/advisor
• Prioritize projects recommended by consultant
• Approve project dimensions/costs
• Approve financing structure from Treasurer
• Propose capital assessment to Owners vote, if necessary
• Approve Annual Budget, including financing of project costs
• Include project in ECA Five Year Plan
• Approve ECA Five Year Plan
Treasurer
➢ Analyze/determine viable financing options
• Receive total project cost
• Solicit debt financing proposals, if necessary
• Design alternative financing structures and propose to Board
• Present Board-approved financing structure to Owners in conjunction with Energy Committee project presentation
• Adjust Annual Budget to take into account financing of project costs
• Include project into ECA Five Year Plan for Board approval
• Negotiate, document and close financing in conjunction with ECA counsel
Owners
• Participate in and assist Energy Committee, Treasurer and Board of Directors in professional due diligence
• Attend presentation regarding project costs/benefits and financing plan and raise issues/questions
• Vote on proposed capital assessment, if necessary
• Review Annual Budget and proposed project financing and raise issues
• Attend Annual Meeting”
Ms. Fridell verbally reviewed each point of the document and briefly explained each to ensure common understanding.
Regarding financing options, Ms. Fridell stated that it is likely that for a large project such as the replacement of windows and balcony doors, a combination of several available funding options will likely be necessary and that all possibilities must be explored and considered.
Mr. Cunningham asked the Board to vote in principle to support the process, emphasizing that it would be suitable for any major project. Discussion ensued.
Mr. Bressler cited another funding option. The Green Briar Condos executed a window replacement project recently. The Board of Green Briar negotiated a bulk rate with the vendor for individual owners to purchase windows over a set period of time. Owners then had the option to purchase the windows at the bulk rate at the time of their choosing. There could also be a requirement that if replacements are not made during the life of ownership, then no sale of a condominium could occur without the windows being replaced Dr.Muller expressed support for Mr. Bressler’s suggestion, citing a similar suggestion from one of the The Elizabeth owners.
Ms. Fridell will add to the process document Mr. Bressler’s individual funding option and other edits requested by Board members.
(R) Mr. Axelrad moved, Dr. Muller seconded, to approve as amended, and as a general practice, the due diligence decision-making process outlined by Ms. Fridell for execution of major projects. The motion passed unanimously.
b. Lobby horizontal piping: Mr. Horan reported that the lobby horizontal piping project was almost complete. All piping is in place, and the insulation should be completed by February 12, 2010.
c. Emergency generator: Mr. Murdoch reported that there was a bidders’ conference on January 14, 2010, and final bids were due January 22. Two bidders requested an extension until January 27. Once all bids have been received, members of the Board will convene to review the proposal with bid comparisons.
d. Garbage room light sensors: Mr. Murdoch reported that there had been a significant reduction in gas and water usage in the previous two months. He has added to the Management Report a utility consumption chart comparing usage from 2007 to the present. Dr. Muller asked Mr. Horan to explain the light sensors in the garbage rooms. Mr. Horan reported that motion sensors had been installed in the garbage rooms to save energy consumption. The light will stay on as long as there is movement in the room.
e. Lobby renovation project: Ms. Barth reported that last week, Hartman Design Group completed work on documents to submit to the County and contractors. The designs have already been sent to the architect for review. The architect has two weeks to review and then will submit to the County. Simultaneously, Hartman is preparing a letter to ten contractors with whom the firm has previously worked. The bidders’ conference will be held in February, and Hartman will conduct a walk through and set a date for bids to be returned. The hope is that both the County approval and the bidding process will be completed in early March. Hartman has worked on many similar projects with other communities and reported that contractor bids had all come in lower than expected. A presentation of the design plans to all residents will be made at the end of February or early March.
New Business:
a. Energy Conservation Consulting Firm RFP: Mr. Cunningham reported that at the last meeting the Energy Committee recommended three engineering consulting firms which could be capable of performing the energy conservation analysis for ECA. Mr. Murdoch has prepared RFP with proposal requirements and scope and requested a quick response from bidders. The Energy Committee chair subsequently reported the committee had been interviewing engineers for the in depth energy conservation study. The committee recommends that bids be solicited from three organizations: Metro Engineering; LS Grimm Consulting Engineers; and Mendoza Rebas. All three contractors indicated they could do the work for $10k-$20k
Mr. Cunningham reported that while the reserve study was helpful, it was largely based on useful life standards for various types of equipment and not generally based specifically on the actual state of ECA’s common elements. As a result, the Board is now seeking a consulting firm to assist the Board in decision making regarding energy consumption and possible replacement of windows and doors. He recommended that the Board approve the RFP. Discussion ensued regarding possible expense which may range from $10K - $20K.
Ms. Fridell requested that part of the consultant’s scope include the possibility of submetering. She stated that ECA’s cost structure is higher than those of other condos because the Association pays for utilities. This presents a “moral hazard” issue in the sense that individual interests are not necessarily aligned to conserve energy costs. The Association as a whole pays for utilities and there is no way to tie individual costs to individual usage. Mr. Axelrad suggested that the cost of submetering may decrease dramatically within a few years due to imminent technological developments. The Board’s consensus was to obtain expert advice on this topic.
Mr. Axelrad had prepared an Analysis of the Window/Door issue and requested that it be included in the Minutes. The Board agreed. Mr. Axelrad’s Analysis, which follows, should be considered to be an integral part of these Minutes:
“ OUTLINE OF Axelrad’s WINDOW/DOOR ANALYSIS
• Some residents have substantial draftiness in their units. This problem has persisted since The Elizabeth was first occupied and has not been corrected.
• Because the problem is not new, the problem is unlikely to be related solely to the age of windows and doors. In fact, as an experiment a long time ago, the Board installed new windows in one unit. The owners report that the new windows did not solve the problem. Whether the original windows and doors are faulty, whether installation is a cause of the problem, whether façade construction is a source of the problem or whether some combination of causes or additional cause for the problem exists is not known.
• The Final Report submitted by Reserve Advisors, Inc. on January 13, 2009 to The Elizabeth Condominium Association does not recommend immediate replacement of windows and doors. This Report proposes that the windows and doors be replaced in steps over a four year period, commencing in FY 2021.
• The Preliminary Energy Audit prepared by American Renovators for The Elizabeth, dated January, 2009, says that the windows and doors “have held up well considering their age.” This document goes on to “recommend that thermal efficient, double-pane insulated glass windows and balcony doors be specified for replacement within the near future.” The document’s projection is that this action could result in $34,303 in annual energy cost savings, at an installation cost of approximately $2,394,800. At present our “Five Year Plan,” used in determining owner monthly fees, does not include any amount for such a cost.
• The Energy Committee arranged a meeting for residents of The Elizabeth to hear the views and suggestions of the Montgomery County official charged with encouraging energy savings. This official opined that replacement of The Elizabeth’s windows and doors at this time would not be cost effective.
• Although I am not a tax lawyer, my understanding is that for last year and the current year, if a person makes energy-conscious purchases that reduce the amount of electricity or other energy resources used in one’s home, a tax credit of up to $1,500 is available. The instructions to IRS form 5695, for claiming this credit, recite that “[i]f you are a member of a condominium management association for a condominium you own . . ., you are treated as having paid your proportionate share of any costs of such association or corporation.” The tax credit is allowed to offset only a fraction of the cost (up to 30 % at most).
• The Elizabeth’s Board should now take every reasonable action to assist unit owners to resolve the drafty apartment problem. The Board should immediately ask management to survey engineering or other competent contractors able to determine the source of the problem and propose effective action, and provide this information to the Board at or before the Board’s next meeting. The Board should then decide to retain a contractor to propose specific options for the Board to select; these options would include options requiring Board action or action, if desired, by the owners of individual units. If the solution warrants expenditure of Condominium Association funds (rather than arranging a fee schedule with a contractor for individual unit owners to utilize if they wish), the Board should take Monique’s Energy Committee presentation into account if it intends to retain a contractor to implement the solution.”
Ms. Kielty asked if the RFP will address the issues raised in this meeting such as the cost/benefit of owners replacing windows individually, as the case of the Green Briar condo mentioned by Mr. Bressler. She expressed concern that the contractor would address the contract differently due to the scale and scope of doing the replacements individually versus collectively.
(R) Ms. Barth moved, Mr. Axelrad seconded, to issue an RFP to three or more companies with two weeks time frame to respond with proposals. The motion passed unanimously.
b. Water detectors: Mr. Horan showed residents a water leakage detector, various models of which ranges from $7-$30, all with similar functions. Zircon Co., offered a bulk rate of $7.00/unit if the Association purchases at least 400 detectors un-packaged. Purchasing 400 would provide for one per Unit with extras to be available for purchase by owners who wanted additional detectors in their apartments.
(R) Mr. Axelrad moved, Ms. Kielty seconded, to authorize management to purchase 600 Zircon water leak detectors at a total cost of $4200 ($7 each); and to distribute one to each unit. The remaining units are to be made available to residents at cost. The motion passed unanimously.
c. Contracts: There were no contracts outstanding that required Board attention.
d. Pet registration form: Dr. Muller thanked Ms. Fridell for providing the proposed form. Ms. Fridell asked Management for details on the plan to execute and manage the database of pet registrations. Mr. Horan stated that he has a list of known pet owners and will send letters with registration form with a date for return request. They also have a camera to take pictures of the pets and their owners. Ms. Barth asked how the weight of animals would be determined. Mr. Cunningham stated that it would be the honor system for residents to report the weight of pets. Ms. Fridell said that Management would have to confirm the pet’s Montgomery County license number and vaccination record. Mr. Horan will edit letter to request that owners bring copies of the license and vaccination record when they have their pictures taken. Mr. Cunningham stated that the letter should go to all owners, not only to known pet owners.
(R) Dr. Muller moved, Mr. Bressler seconded, to approve the pet registration form and proposed registration process. The motion passed, all Board members voting affirmatively except for Mr. Axelrad, who abstained.
e. Landscape design: Mr. Horan reported that Valley Crest put together a proposed landscape design for the front and back of the building complete with computer generated before/after images. Ms. Fridell stated that she understood the plan was to request a second landscape designer plan. Mr. Horan stated that Valley Crest’s designer came to the property and made the proposal. The need to consider a second proposal was discussed. Mr. Bressler commented that the Valley Crest proposal was obtained at no cost but a second proposal can be obtained if the Board desired. Ms. Kielty stated that the proposal process needed to be completed quickly in order to ensure that a plan was in place in time for planting season. Mr. Horan was directed to obtain at least one additional proposal from another landscape design firm and that such proposal ought to include a similar computer generated design for consideration. Mr. Horan agreed to make this request the following day.
(A) The Board directed Mr. Horan to provide the Board with a list of all landscaping proposals received with a list of each contractor’s proposed plantings; and to include his recommendation.
(R) Ms. Barth moved, Mr. Bressler seconded, to direct management to obtain second bid at a cost of no more than $750. The motion passed unanimously.
Ms. Kielty noted that in some cases there seems to be a communication breakdown in terms of who is responsible for taking follow-up actions – e.g., committees, the Board and/or the Management. Mr. Murdoch stated that it is Management’s function to facilitate the committees in the performance of their functions as assigned by the Board. He stated that Management can equally assist committees with RFPs and due diligence as it does for the Board.
f. Auditor proposal: Mr. Cunningham reported that the Board received a proposal from Deleon & Stang, ECA’s current auditor, for the FY 2010 audit at a cost of $12,500. Ms. Fridell asked Management to research how long the firm had been conducting the Association’s audits. She mentioned Sarbanes Oxley requirements that require audit firms be changed periodically; however, there would be a benefit to maintaining D&S for continuity since this will be L&N’s first audit with ECA. It is expected that Treasurer Fridell will provide further guidance on this point.
Committee Reports:
Energy Committee: Discussed earlier in these minutes.
Social Committee: Ms. Barth reported that the Holiday Party had been a success. Mr. Murdoch reported that the financials reflect that the Social Committee is over budget for the month; however this is only due to timing difference for the month and is not expected to be the case for the year. Ms. Barth reported that they were actually under budget by $300 for the holiday party. She stated that the only upcoming event planned is for the presentation of the renovations in late February or March.
Dr. Muller reported that he has monitored the TV room and found it to be used frequently but not in a disruptive manner.
Election Committee: Mr. Cunningham reported that the Board had appointed a committee to look into the election process and the process for identifying new candidates. The committee has met but has not yet made its recommendations to the Board.
Fitness Committee: Ms. Kielty reported that last month the Board voted to ask Hartman Design Group develop plans for Exercise Room. Hartman will be out in the next few weeks to develop a design for the Exercise room.
Mr. Murdoch formally apologized for the lateness of the Management Report this month. He stated that he and Ms. Fridell had been working on correcting the financial statements, and it took some time to get the final version of the financials from L&N Accounting.
He also reported on the change to a new bank for ECA’s lockbox account. L&N is moving all lockbox banking services from BB&T to Community Association Bank (CAB), effective April 1, 2010. He stated that assessments collection for April, May and June will go to CAB. Some of the advantages of CAB are that it specializes in association banking services; facilitates bill payer systems; and pays interest on lockbox account balances. He stated that owners will receive a new coupon book for April, May and June 2010 condo fee payments. Owners who pay via coupon will simply need to send payment to CAB with the new coupons.If residents use their bank’s bill payer system, they will need to instruct their banks to send payments to the new account at CAB. Changes in direct debit payments will be handled by L&N with no action required on the part of the residents who have their condo fee payments debited automatically by ECA.
Comments from the floor:
-A resident asked about Green Briar’s handling of their window replacement project. She expressed concern that if The Elizabeth followed a similar plan, it could violate the bylaws; it could result in a situation where only some windows have been replaced and others had not. She also expressed concern that if some windows were replaced by owners and others opted to wait, the same style of window may not be available at a later time. Mr. Cunningham stated that before any plan is approved, the Board will submit it to counsel to ensure that it meets the bylaws.
-The resident also asked if L&N could be of assistance in large projects as discussed in Ms. Fridell’s plan since L&N has likely worked with other communities on similar projects. Mr. Murdoch stated that L&N can provide advice and recommendations
.
-The resident also commented on submetering. Mr. Cunningham stated that such questions were best directed to the energy-efficiency consulting engineer once a firm is selected.
-A resident asked if Management could have a sign up sheet for water detectors to ensure that owners who want more than one are able to reserve them and to ensure that the amount ordered will accommodate demand. Mr. Cunningham agreed and asked Mr. Horan to ask the contractor if it would be willing to make additional units available at the same price at a later date if it became necessary to order 200 or 300 more.
-A resident asked about the process for window replacements if the individual option is chosen. She asked if the owner would be responsible for paying for the scaffolding, etc. Mr. Cunningham stated that it would be a question for the consulting engineer. Mr. Bressler stated that if the individual option were chosen, it would likely be done by tier, and residents would have a set timeframe to opt in.
-A resident expressed concern that the tax credit for energy improvements may only be applicable to those improvements which are completed in 2010. Brief discussion ensued regarding definition of cost benefit as it relates to the window replacement project.
-A resident suggested that comments from the floor be moved to the beginning of the meeting.
-A resident expressed concern regarding the individual option for window replacement. He stated that he had spoken to a contractor who suggested that even if a resident replaced a window, the window would have to be replaced again when the whole tier was replaced because of structural issues.
-A resident asked what would happen regarding common area windows if the individual option was chosen.
The resident also asked about the replacement of the balcony doors on Tier 14 due to the soffits (the underside of a building).
-A resident reported that she heard a continual loud grinding noise in her unit. The issue has been reported to management.
-A resident expressed concern about the relationship between wind/temperature problems and leakages because some of the balcony doors leak. Mr. Horan stated that some balconies slope towards the building rather than away from it and cause water to run back into the unit instead of washing away.
-A resident asked about residents who are currently replacing their door locks. She asked if the locks would have to be changed again at the time of the refurbishment project. Mr. Cunningham stated that one reason for the delay was to ensure consensus between the designer and the future availability of the same model of locks. He also stated that he felt it was the Board’s responsibility to ensure equitability.
Adjournment: The President adjourned the meeting at 9:45 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Rebekah Hutton of On the Record.
Respectfully submitted,
Jeffrey Axelrad, Board Secretary
Sunday, January 24, 2010
Summary of January 2010 Elizabeth Condo Board Meeting
Present at the meeting: Woody Cunningham, Jeffrey Axelrad, Judi Barth, Charles Bressler, Monique Fridell, Alexandra Kielty, Al Muller, Scott Murdoch, Mike Horan, recording secretary.
PRESIDENT’S REPORT
--ECA has reduced use of gas, electric, water. The figures show about same usage as last year. Improvements to electrical systems have helped. We haven’t seen the peak use yet. That happens in February and March. We are below budget at this time. Scott Murdoch will provide a two-year analysis of energy use. [Note: Auditor’s Report made in the December Board meeting said that for 2009 we were notably over budget by 19 percent.]
--We want to bring on board a consulting firm to evaluate our current systems. Need approval. It will include a field (onsite) inspection of windows and balcony door evaluation.
TREASURER’S REPORT
--February 2 Treasurer Monique Fridell will discuss the new audit report.
--She asked for volunteers for help in identifying whether fixed assets listed in our inventory have been fully depreciated. This will respond to Auditor’s Report made in December and answer the question about what has been fully depreciated.
--Treasurer discussed a process for undertaking such projects as window replacement. She called it a possible roadmap for how to achieve a major project.
Key Items:
• What do the bylaws say about assessments?
• Evaluating whether benefits outweigh the cost. [This isn’t explicitly a dollars and cents evaluation. This would include intangibles.]
• 75% of owners have to agree on an assessment.
• Annual budget – can we afford to pay interest, does management have the capability to handle this project, the timing, size, urgency, the staging of such a project, availability of applicable tax credits,
• Interest rates, availability of credit --- we can get money since some groundwork has been done, the structure of the deal [percent interest and payback] and the collateral needed, we need to look into Federal and State/County assistance, and we need to keep open mind.
• Need a public presentation to get owner buy in.
• Design a financing structure.
• 5-year plan needs to be updated.
• Work with legal counsel for financing.
• Responsibilities of owners.
Jeffrey Axelrad suggested if we can make owners responsible for paying for window/door replacement then would not the number of steps in the process be reduced?
Bressler suggested that owners be given the option to replace their windows at their own cost. He said the Greenbriar on Mass Ave in DC did that. He said this would avoid the assessment and need to get 75% buy in. Greenbriar owners would be given a waiver to replace windows at a later time. He suggested that we let anyone who wants to replace their windows and pay now, pay at a reduced price (it costs less to do in bulk), but for the other residents who wish to defer replacing windows and balcony doors, we get something signed that says that upon their death or the sale of the apartment, the windows and balcony doors will be replaced. [Note: later discussion about doing piecemeal window/door replacement would result in prohibitive costs to individuals doing replacement, major disruptions to residents over a much longer period of time, and windows and doors that would not be the same as technology changed over the years.]
MOTION: Approved the Treasurer’s process for major project.
OLD BUSINESS
Piping project: to be finished Feb 12.
Renovation: Hartmann Group completed documents. Need to pass inspection by Montgomery County. Bidders conference in February. Presentation to the owners in last week of February or early March.
Lock Replacement: Work will start the week of February 8. [For people who want to disable old locks because they already have a deadbolt that will cost $145.]
NEW BUSINESS
Energy RFP: hands-on field inspection of our equipment to see what needs to be replaced, when. This would be major systems (i.e. heating and cooling, windows/doors, energy usage, etc.) This will go into the 5-year plan. There was also a request to look at sub-metering/remote sensoring. Energy committee has gotten the names of three consultant firms to whom they will send the RFP. [RFP was referred to in the President’s Report.]
Judi Barth suggested that the ECA is bumping up against a deadline involving tax credits and technology that is failing, including our McQuay units. Ms. Barth asked for a two-week turnaround on answering the RFP. She wants the Board to be able to vote on a consulting firm at the next Board meeting. She said she doesn’t want to waste any more time—there would be only 10 months left to get tax credits.
MOTION: Approved RFP to get Engineering consultant.
Water detectors: The Association would buy 600; give one free of cost to each unit. Additional water detectors would cost owners at $7 each. There will be a signup [The detectors emit a loud noise and so someone has to be home to hear it.]
MOTION: Approved purchase of water detectors.
Pet Registration: Moving ahead with pet registration. Cover letter must go to everyone in condo. Mike Horan has a camera to take photos of the pet owner with his or her pet if the owners cannot provide photos. Monique Fridell instructed Mike Horan that owners provide documentation about pet inoculations.
MOTION: Approved moving ahead with pet registration.
Landscaping: still up in the air. Bressler turned design over to onsite manager Mike Horan who just went to the maintenance landscaper for a free proposal.
MOTION: Approved moving ahead to get a third proposal from a landscape designer.
Auditors: There was a general discussion about hiring new auditors, which is a good general business practice to employ new auditors after an extended period of time.
Exercise Room: The Exercise Committee continues to explore obtaining new equipment.
PRESIDENT’S REPORT
--ECA has reduced use of gas, electric, water. The figures show about same usage as last year. Improvements to electrical systems have helped. We haven’t seen the peak use yet. That happens in February and March. We are below budget at this time. Scott Murdoch will provide a two-year analysis of energy use. [Note: Auditor’s Report made in the December Board meeting said that for 2009 we were notably over budget by 19 percent.]
--We want to bring on board a consulting firm to evaluate our current systems. Need approval. It will include a field (onsite) inspection of windows and balcony door evaluation.
TREASURER’S REPORT
--February 2 Treasurer Monique Fridell will discuss the new audit report.
--She asked for volunteers for help in identifying whether fixed assets listed in our inventory have been fully depreciated. This will respond to Auditor’s Report made in December and answer the question about what has been fully depreciated.
--Treasurer discussed a process for undertaking such projects as window replacement. She called it a possible roadmap for how to achieve a major project.
Key Items:
• What do the bylaws say about assessments?
• Evaluating whether benefits outweigh the cost. [This isn’t explicitly a dollars and cents evaluation. This would include intangibles.]
• 75% of owners have to agree on an assessment.
• Annual budget – can we afford to pay interest, does management have the capability to handle this project, the timing, size, urgency, the staging of such a project, availability of applicable tax credits,
• Interest rates, availability of credit --- we can get money since some groundwork has been done, the structure of the deal [percent interest and payback] and the collateral needed, we need to look into Federal and State/County assistance, and we need to keep open mind.
• Need a public presentation to get owner buy in.
• Design a financing structure.
• 5-year plan needs to be updated.
• Work with legal counsel for financing.
• Responsibilities of owners.
Jeffrey Axelrad suggested if we can make owners responsible for paying for window/door replacement then would not the number of steps in the process be reduced?
Bressler suggested that owners be given the option to replace their windows at their own cost. He said the Greenbriar on Mass Ave in DC did that. He said this would avoid the assessment and need to get 75% buy in. Greenbriar owners would be given a waiver to replace windows at a later time. He suggested that we let anyone who wants to replace their windows and pay now, pay at a reduced price (it costs less to do in bulk), but for the other residents who wish to defer replacing windows and balcony doors, we get something signed that says that upon their death or the sale of the apartment, the windows and balcony doors will be replaced. [Note: later discussion about doing piecemeal window/door replacement would result in prohibitive costs to individuals doing replacement, major disruptions to residents over a much longer period of time, and windows and doors that would not be the same as technology changed over the years.]
MOTION: Approved the Treasurer’s process for major project.
OLD BUSINESS
Piping project: to be finished Feb 12.
Renovation: Hartmann Group completed documents. Need to pass inspection by Montgomery County. Bidders conference in February. Presentation to the owners in last week of February or early March.
Lock Replacement: Work will start the week of February 8. [For people who want to disable old locks because they already have a deadbolt that will cost $145.]
NEW BUSINESS
Energy RFP: hands-on field inspection of our equipment to see what needs to be replaced, when. This would be major systems (i.e. heating and cooling, windows/doors, energy usage, etc.) This will go into the 5-year plan. There was also a request to look at sub-metering/remote sensoring. Energy committee has gotten the names of three consultant firms to whom they will send the RFP. [RFP was referred to in the President’s Report.]
Judi Barth suggested that the ECA is bumping up against a deadline involving tax credits and technology that is failing, including our McQuay units. Ms. Barth asked for a two-week turnaround on answering the RFP. She wants the Board to be able to vote on a consulting firm at the next Board meeting. She said she doesn’t want to waste any more time—there would be only 10 months left to get tax credits.
MOTION: Approved RFP to get Engineering consultant.
Water detectors: The Association would buy 600; give one free of cost to each unit. Additional water detectors would cost owners at $7 each. There will be a signup [The detectors emit a loud noise and so someone has to be home to hear it.]
MOTION: Approved purchase of water detectors.
Pet Registration: Moving ahead with pet registration. Cover letter must go to everyone in condo. Mike Horan has a camera to take photos of the pet owner with his or her pet if the owners cannot provide photos. Monique Fridell instructed Mike Horan that owners provide documentation about pet inoculations.
MOTION: Approved moving ahead with pet registration.
Landscaping: still up in the air. Bressler turned design over to onsite manager Mike Horan who just went to the maintenance landscaper for a free proposal.
MOTION: Approved moving ahead to get a third proposal from a landscape designer.
Auditors: There was a general discussion about hiring new auditors, which is a good general business practice to employ new auditors after an extended period of time.
Exercise Room: The Exercise Committee continues to explore obtaining new equipment.