Over 40 people attended the informal gathering led by Al Muller in the party room last evening. Molly Frantz and Ilo-Mai Harding also attended.
Some of the topics that were discussed included window and balcony door replacement, hallway refurbishment, HVAC-Mcquay refurbishment, building security, and improving leadership capabilities of the ECA Board.
Owners continue to be concerned about how the majors projects will be accomplished relative to the financing. Some people referred to the survey that showed that a majority of owners would like to take a year-long break from spending to replenish the reserve fund. Other people revealed that they do not understand their responsibility in keeping up property, questioning why windows and balcony doors have to be replaced and if they are replaced what guarantee would there be that they would be more energy efficient. There were also people present who did not understand some of the basic terms like what a McQuay unit is.
From my personal perspective, the meeting, which also attracted unit owners I've never seen before at any of the monthly board meetings, was very successful. It provided a civil and safe forum for people to ask questions and get pretty good answers about things that concern them.
I think this informal forum should be used to educate Association members about aspects of our big projects. For example people need to understand why our hallway refurbishment plan is based on using wallpaper (my understanding is that it is much more expensive to restore our walls given they are already wallpapered now) and how the HVAC refurbishment is related to the replacement of McQuay units. This educational effort will pay off when the Board gets serious about working on Bylaws changes that need to come before the HVAC-Mcquay refurbishment projects.
Monday, July 25, 2011
Thursday, July 21, 2011
Summary of ECA Meeting July 18, 2011
Present at the meeting: Charles Bressler, Judi Barth, Molly Frantz, Ilo-Mai Harding, Seth Levine, Alfred Muller, James Santos, Recording Secretary, Community Manager
Manuel Cockburn tendered his resignation to the board. He was not present at the meeting.
BOD approved May, 2011 minutes. June 2011 minutes were not ready for presentation.
Scaled-down minutes - BOD approved unanimously a motion that Meeting Minutes will be distributed 10 days following meeting & will include only decisions made; motions offered; motions approved; and comments from the floor. Original, complete record of meeting will be available but not distributed.
President's Report
Treasurer's Report:
Final numbers are not available for FY ending 6/30/11. Unexpected expenses- replacing lobby pipes, emergency generator, etc.-drew down reserve funds. Five-year plan will anticipate unexpected, smaller projects in addition to major improvements.
Old Business
Contractor Guidelines - BOD moved to distribute draft of guidelines, reviewed by ECA attorney, to all ECA owners with request for owners' comments by 8/8/11. BOD will vote on Contractor Guidelines at 8/15/11 ECA meeting. (Guidelines apply to owners hiring contractors to work on their apartments)
Cost Basis Letter BOD approved Manager's request to request a 'cost basis letter' for owners from deLong and Stang. 'Cost basis letter' will address each owner's percent of the cost capital improvements made to ECA common areas that can be added to each owner's cost basis when calculating and reporting IRS capital gains tax after sale of apartment.
McQuay Units SURVEY - BOD passed motion to send owners a survey/request for preferences on replacing McQuay units. Survey will accompany distribution of tentative 5-year plan & letter. Motion followed discussion of Mendoza Report's recommendation to replace McQuay units ASAP.
New Business
Comments from the Floor Time Limit - BOD passed resolution based on Attorney's opinion of MD Condominium Act. Resolution allows each owner three minutes total to speak uninterrupted at monthly ECA meetings. BOD and Manager will respond to issues owner presents. Director Muller proposed including in the resolution, the scheduling of additional unofficial meetings be held on Sunday evening, allowing owners to speak informally with Directors. After discussion BOD declined to add this measure to the resolution.
Committee Reports
Making a Difference - Stephanie Olshan thanked Jim Santos for help in setting up collection sites in the Elizabeth and coordinating donation pick-ups.
Energy Committee-Joan Rosenbach encouraged owners to follow energy tips posted in elevators, i.e. closing draperies to block sun/heat; assure that apartment thermostats are working - if not contact Complete Building Services (CBS). Committee members have attended BETHESDA GREEN seminars about energy conservation specific to condominiums.
Newsletter- Jim Santos announced that he & Barbara Pollock have met to discuss topics and format. They anticipate that first edition will be distributed, subject to BOD review on Sept 1, 1011. Newsletter will also be posted on Elizabeth Website as well as go out in paper format.
Refurbishment- Two options for hallway/corridor renovation are expected to be ready for presentation to ECA owners in the near future.
Comments from the Floor:
Mary Catherine Curran-opposes loan to finance major improvements; prefers owners be given financing options or 1. full payment when due or 2. option to make four payment over two years with a service charge. President responded options might be possible depending on delays or changes in order of priority of projects
Board answered Tobi Esler's query about how new board member will be chosen to fill vacancy. According to Bylaws, board at its sole discretion may fill the vacancy. However Board is requesting volunteers to submit applications for the post for Board's consideration.
Maurice Trebach asked Board to consider allowing co-owners who want to pay their share of cost for installing windows in advance of the installation to do so; and allow the ECA to borrow the remaining needed funds to be repaid with interest by those co-owners who prefer/need to pay in installments. Treasurer replied that there are complications in doing so but lending institutions will presenting possible financing loan options to EAC membership in the near future.
Joan Rosenbach recommended that the Board proceed with caution on spending for window replacement.
Stephanie Olshan - recommended that when deciding whether or not to replace windows/doors Board consider $200 federal tax rebate to each owner now; and effect of inflation on cost replacing windows now versus a date in the future.
These summation notes were prepared by Mary McGuire.
Manuel Cockburn tendered his resignation to the board. He was not present at the meeting.
BOD approved May, 2011 minutes. June 2011 minutes were not ready for presentation.
Scaled-down minutes - BOD approved unanimously a motion that Meeting Minutes will be distributed 10 days following meeting & will include only decisions made; motions offered; motions approved; and comments from the floor. Original, complete record of meeting will be available but not distributed.
President's Report
Treasurer's Report:
Final numbers are not available for FY ending 6/30/11. Unexpected expenses- replacing lobby pipes, emergency generator, etc.-drew down reserve funds. Five-year plan will anticipate unexpected, smaller projects in addition to major improvements.
Old Business
Contractor Guidelines - BOD moved to distribute draft of guidelines, reviewed by ECA attorney, to all ECA owners with request for owners' comments by 8/8/11. BOD will vote on Contractor Guidelines at 8/15/11 ECA meeting. (Guidelines apply to owners hiring contractors to work on their apartments)
Cost Basis Letter BOD approved Manager's request to request a 'cost basis letter' for owners from deLong and Stang. 'Cost basis letter' will address each owner's percent of the cost capital improvements made to ECA common areas that can be added to each owner's cost basis when calculating and reporting IRS capital gains tax after sale of apartment.
McQuay Units SURVEY - BOD passed motion to send owners a survey/request for preferences on replacing McQuay units. Survey will accompany distribution of tentative 5-year plan & letter. Motion followed discussion of Mendoza Report's recommendation to replace McQuay units ASAP.
New Business
Comments from the Floor Time Limit - BOD passed resolution based on Attorney's opinion of MD Condominium Act. Resolution allows each owner three minutes total to speak uninterrupted at monthly ECA meetings. BOD and Manager will respond to issues owner presents. Director Muller proposed including in the resolution, the scheduling of additional unofficial meetings be held on Sunday evening, allowing owners to speak informally with Directors. After discussion BOD declined to add this measure to the resolution.
Committee Reports
Making a Difference - Stephanie Olshan thanked Jim Santos for help in setting up collection sites in the Elizabeth and coordinating donation pick-ups.
Energy Committee-Joan Rosenbach encouraged owners to follow energy tips posted in elevators, i.e. closing draperies to block sun/heat; assure that apartment thermostats are working - if not contact Complete Building Services (CBS). Committee members have attended BETHESDA GREEN seminars about energy conservation specific to condominiums.
Newsletter- Jim Santos announced that he & Barbara Pollock have met to discuss topics and format. They anticipate that first edition will be distributed, subject to BOD review on Sept 1, 1011. Newsletter will also be posted on Elizabeth Website as well as go out in paper format.
Refurbishment- Two options for hallway/corridor renovation are expected to be ready for presentation to ECA owners in the near future.
Comments from the Floor:
Mary Catherine Curran-opposes loan to finance major improvements; prefers owners be given financing options or 1. full payment when due or 2. option to make four payment over two years with a service charge. President responded options might be possible depending on delays or changes in order of priority of projects
Board answered Tobi Esler's query about how new board member will be chosen to fill vacancy. According to Bylaws, board at its sole discretion may fill the vacancy. However Board is requesting volunteers to submit applications for the post for Board's consideration.
Maurice Trebach asked Board to consider allowing co-owners who want to pay their share of cost for installing windows in advance of the installation to do so; and allow the ECA to borrow the remaining needed funds to be repaid with interest by those co-owners who prefer/need to pay in installments. Treasurer replied that there are complications in doing so but lending institutions will presenting possible financing loan options to EAC membership in the near future.
Joan Rosenbach recommended that the Board proceed with caution on spending for window replacement.
Stephanie Olshan - recommended that when deciding whether or not to replace windows/doors Board consider $200 federal tax rebate to each owner now; and effect of inflation on cost replacing windows now versus a date in the future.
These summation notes were prepared by Mary McGuire.
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 16, 2011
Board Present:
Charles Bressler ..........................President
Seth Levine .................................Vice President
Molly Frantz ...............................Treasurer
Ilo-Mai Harding ..........................Secretary
Judith Barth ................................Director
Alfred Muller ...............................Director
Board Absent:
M.S. Cockburn ..............................Director
Others Present:
Scott Murdoch ...............Community Manager, Legum & Norman
James M. Santos ...........ECA General Manager
Elisabeth Ostler .............ECA Recording Secretary, On the Record
Call to Order: Mr. Bressler called the meeting to order at 7:05 p.m.
Approval of Previous Meeting Minutes:
No minutes to approve.
President’s Report: Mr. Bressler stated that there was a record low attendance for the election. Mr. Bressler stated that he would like the board to be more open and come-up with more innovative ideas. Mr. Bressler has asked Mr. Santos to install a mailbox in the corridor, I will personally address any comments towards me and compliments will be accepted. This year we will work toward updating the house rules, The Elizabeth resident directory, the data at the front desk which will make the front desk more operational and self-sufficient. Mr. Bressler has requested information regarding a data program that is used by most of the neighboring condominium associations and The Elizabeth residents will be kept informed every step of the way of any progress.
Mr. Bressler stated that the Board is working toward instituting a new policy for owners that intend to remodel their apartment. Residents will be required to submit a request to perform the work, which will need to include a description of the scope of the work to be completed in the apartment with proof of the contractor being licensed, bonded and insured. The Elizabeth is legally responsible and liable for any damage caused by someone that is not properly licensed.
Mr. Bressler stated that in order to bring unity to The Elizabeth, former presidents of the board and other active in the building have been invited to sit down with the a rotating group of board members to create a round table that will meet once per month to exchange ideas and make suggestions. Mr. Bressler stated that although there have been some disagreements in the past, hopefully for the good of The Elizabeth the past can be put aside and can come up with solutions that can be beneficial to all of us.
Mr. Bressler stated he created two additional committees: Security Committee and Architectural Committee.
The board is eager to work hard and closely together to make the Elizabeth a great place to live in harmony.
Treasurer’s Report: Ms. Frantz stated the tenth month was just completed of the fiscal year and is pleased to report that the operating fund is running on small surplus. Expenditures through April 30th of this year were $2,078,741.00, income was $2,084,713.00 and reserve expenditures were $1,740,334.00. On April 27th the board approved a 10% increase in the condominium fees for the fiscal year 2012. This was 5% higher than the proposed budget with all of the increased fees, which amounts to $172,096.00, going to the reserve fund. That makes the fiscal year 2012 to the reserve fund contribution $1,430,350.00. Ms. Frantz will be seeking board approval to hold a working session to develop a new and current five-year reserve expenditure plan, with the expectation that the plan will be approved at the June 20th board meeting. The number of owners who are delinquent continues to drop due to the hard work that management puts in. As a result, delinquencies continue to be low by industry standards amounting to only 1.32% of total assessments. Two-thirds of our $45,000 in delinquencies is due to one owner whose property is currently in foreclosure.
There was an operational error with an out-of-town post office that impacted the deliveries of April condominium fees and Mr. Murdoch will be touching upon that situation. Mr. Murdoch will also be contacting our auditors to initiate the associations first ever cost; basis adjustment letter. For tax purposes, homeowners must first determine the adjusted cost of their home before they can figure the capital gain or loss on the sale of their property. This letter will provide owners the information that will be used to help to determine that cost basis.
All the paperwork required to put Mr. Bressler and Ms. Frantz on the bank accounts will be completed tonight.
Management Report: Mr. Santos stated that currently the update on the delinquency totals for the work orders is down to $933.05, of which $464 is over 60 days. The Board was also given an updated copy of contractor guidelines and a memorandum on the WSSC public hearing attended last week regarding mixed use of meter reading and potential billing. Ms. Frantz asked when the next WSSC meeting will be. Mr. Santos stated that it would be later in May, it should be this week and they will give the results of the public hearing comments to the commissioners and finalize the policy. After they approve the policy, they will send out a 30 day comment again to the public stating that this is what the commissioners have approved and are forecasting. If after the 30 day period there are no changes to it, it will be adopted and go into effect at the end of 2011. Ms. Frantz asked how many people are involved in the work order. Mr. Santos said that he guessed it would be between 25 to 30 people. Dr. Muller asked about the high flow units with regard to the dry cleaners on site. Mr. Santos stated that the form is generic and he will be submitting a waiver for each one of The Elizabeth’s commercial spaces because the size of the space or that they do not use the high flow consumption of water.
Mr. Bressler inquired about the garage fan and asked if it was located on the G1 level. Mr. Santos stated that all exhaust fans on G1 to G4 levels are original equipment with 1975 technology. Mr. Santos put it on hold until the Board reviewed the 5-year reserve plan. He has been making repairs to them but has not replaced any of them yet. Mr. Santos addressed the attire of the concierge at the front desk. Mr. Santos opened discussion about purchasing a blazer for each of the staff at the front desk with an estimated cost of $150 per blazer for 6 staff members. The board discussed the purchase of blazers and agreed that it would improve professional appearance. Mr. Bressler asked if the problem with the pool staff had been fixed. Mr. Santos stated that the weekend guard was not focused on the residents and guests that were actually in the water so Mr. Santos spoke verbally with the president of the company and addressed the issue with the staff member. The issue seemed to continue so Mr. Santos wrote a letter and sent an e-mail. The pool staff member was replaced and the performance of the new guard is 100% improved.
Mr. Bressler asked how the activation of the newsletter is going to be reinstated. Mr. Santos stated that the current website for The Elizabeth condo has module built into it to create a newsletter. It is just a matter of time of creating some topics and writing the document, sending it to the board as a draft. But also, Legum & Norman and its parent company, Associa, has some resources to produce a newsletter so that avenue would just need to be pursued. It would just require some time. Mr. Santos stated that he tries to send letters out to residents on a regular basis and post them in the in the elevators but these are not as good as longer documents that could identify discussion points on several topics.
Regarding the incident with the Mutual of Omaha Bank: a letter was received in April stating that Mutual of Omaha had been notified by the post office that there was an issue with the mail and some homeowner payments were damaged at the post office or had been found loose in the mail. This has affected several of the properties and it is being dealt with on a case by case basis as there is no way to know who was affected.
Open Floor: New resident, Barbara Pollock commended the past board and new board on their civility and also commended the management for doing an amazing job under difficult circumstances. Ms. Pollock also would like to see more communication in the form of a professional newsletter. Mr. Bressler asked if Ms. Pollock would like to be on the committee for the newsletter. Ms. Pollock stated she would volunteer to serve on the newsletter committee.
Resident, Maurice Trebach, requested the minutes from the board meetings posted in due time. Mr. Bressler stated that the board needed at least thirty days to make changes and approve the final draft of the minutes. The board had a discussion about ways to make the minutes more concise and efficient. The community requested an action list posted the day after the board meeting.
Resident, Joan Rosenbach, Chair of The Energy Committee, informed the board of a meeting on Wednesday, June 1st run by Bethesda Green in which ways to lower energy costs will be discussed.
A resident stated concern about the proposed guidelines for contractors. The resident further stated that she would like to hire contractors that she trusts and has confidence in and does not feel that they should be excluded if she would like to hire them. Mr. Bressler stated that accidents happen, The Elizabeth would be liable and that the resident would be paying the cost. Ms. Barth added that she attended a meeting with the insurance agent a few weeks ago and they were appalled that we did not have a policy in place which could put the community in jeopardy.
Old Business: Mr. Santos stated that the fitness committee is still trying to determine the individual pieces to recommend. They may be asking for additional funding. The budget is currently set at $17,000 and that number is currently being exceeded by $4,000. A resident on the exercise committee stated that they are recommending Heartline equipment. They are requesting an increase due to it being over three years since they first had that budget item and some of the current equipment has deteriorated in that time.
Dr. Muller asked if The Elizabeth was able to get a discount on Heartline equipment. Mr. Santos stated that Heartline has an agreement with Associa which is the parent company of Legum & Norman to provide a 40% discount on exercise equipment through the Heartline fitness company. All quotes given to the exercise committee already reflected the reduced rate.
MOTION Dr. Muller moved, Mr. Levine seconded to approve the increase of the exercise equipment budget to $22,000. The motion passed unanimously (6-0-0).
AMENDMENT Ms. Frantz moved, Mr. Bressler seconded to delay the motion and vote now to show the consensus of the board and then vote by email once actual numbers are provided to the board reflecting the increase to the exercise equipment budget to $22,000. The motion failed (2-3-1).
Ms. Barth stated that the board should move forward with approving the provisions outlined by the General Manager in accordance with the outline of contractors to work within the community. A memo was received in August of last year and notification was received by the insurance agent that this is something that needs to be done. Everyone has had an opportunity to look at it since August and have looked at it again recently by email.
Mr. Bressler stated that before the board goes into the motion that the association determines all of the policies and forms regarding the issue so that a single motion would approve the entire apparatus by which the measure would be defined, complied with and enforced. He stated that he had already sent the material to the members and that we would make a motion on it next month but would meet in the mean time to make a complete answer to this problem that could face The Elizabeth. Mr. Bressler affirmed that he is very eager to make a motion on the matter but that the board should wait, have a session on this and come up with a definite forum for this provision that does not leave any questions unanswered.
Mr. Bressler affirmed that a draft could be sent to everyone in the building. Ms. Barth suggested that the board appoint a board member to move the draft along with management so the document is ready to be voted on in June. Mr. Bressler suggested that Ms. Barth take charge of that effort until the June meeting. Dr. Muller reiterated that the proposal must be ready to be voted on in June and not push the vote off until July.
New Business: Ms. Frantz stated that when the budget was approved last month, there was not an expenditure reserve for the next 5 years. Proposed holding a working session in the coming month to update the research, bring in the 2016 items into the current 5 year plan along with the current items that have been spilling over into the reserve and then deal with the issues of what the other priorities are or to suspend additional spending activities for the coming year. There will be a board work session on Wednesday, June 1 at 6:30 to review the 5-year reserve plan.
Ms. Harding presented comments about needing accurate projections of costs to update, renovate and maintain the building’s fixtures. A letter was presented that was written by the doctors from the arcade:
(Attach Letter)
Ms. Harding identified certain areas of the commercial sections that needed to be maintained to include carpeting. Mr. Bressler asserted that those areas were not common areas and would need to be maintained by the owner/tenants. Mr. Santos affirmed that since his tenure, he has tried to incorporate the commercial tenants and owners into the operation. He stated that he felt the areas in question were, in fact, common areas. In the mean time, he had already met with contractors regarding certain maintenance provisions to the commercial property into the current 5-year plan, i.e. replacing single-pane storefront windows with more efficient glass, maintenance of grout and fascia, pressure washing some of the walls, replacing the lighting, benches and trash cans in that area to improve the atmosphere in that area. Ms. Frantz requested to be given the list of items to be considered in the 5-year plan. Mr. Santos confirmed that the list will be provided.
Ms. Barth suggested that the letter be answered with the items that the board discussed in the present meeting. Mr. Bressler stated that he would help draft that letter. Additionally, Ms. Barth discussed a “suggestion box” that a tenant in the building has requested. Ms. Barth stated that the association had just spent over $1.2 million on a renovation by an award winning designer. To then put holes in the wall paper to support such a box is a bad thing when the box could have been put in the office or somewhere else that did not put holes in our new wall paper. Mr. Bressler stated that putting the box near the mail area was the best option for the intent of the suggestion box.
MOTION Ms. Barth moved to disallow putting holes in the wall paper without the consideration of the renovation advisor committee, Dr. Mueller seconded. The motion passed with two votes in opposition by Ms. Frantz and Mr. Bressler and one abstention (3-2-1).
Committee Reports: Dr. Rosenbach stated that Bethesda Green is doing a series of lectures dealing with financing of projects. Meetings are held at Monument Bank and funding sources are presented as available by Monument Bank and from government sources. Dr. Rosenbach cited p. 28 of Mendoza Report stating mold and mildew problems in the building suggesting that The Elizabeth could bring in an environmental engineer. A list of several contractors is provided by the State of Maryland Dept of Energy listing those environmental engineering contractors that deal with mold and mildew. Some mold and mildew can cause disease; a call to awareness of this fact was made. Dr. Rosenbach suggested that she head up a group to interview potential contractors, refine the list to three prospects and let the board make the final selection.
Mr. Bressler asked if there had already been a mold investigation previously. Mr. Santos said that there was a report and a request for quote has been under way for some time. Mr. Santos further stated that he had the name of one group and was just given the names of two other groups the week previous. Mr. Santos will explore the matter further, consult with the experts and come up with appropriate recommendations. Mr. Santos explained that the cost of sampling could exceed tens of thousands of dollars and that the cost of obtaining a report will need to be approved. Dr. Muller asked why it is so difficult to get a sample performed and asked if the previous report could be used. Ms. Barth stated that the previous test was of the party room, a contained area with a limited scope. Dr. Rosenbach suggested that the testing take place during July, August or September because those are the times when this issue is most prevalent in the cooling ducts. Ms. Frantz further stated that if the mold is discovered within a specific unit, it will be the unit owner’s responsibility to remove and that caution should be used when pursuing this because it could potentially be so costly. She suggested trying to identify points of decision whereby the costs of the project can be considered as they arise.
Floor representative committee:
[Letter from Ms. Esler was read aloud to the board]
Attach letter:
Landscape Committee: Mr. Santos presented a report from the landscape committee. Phase one enhancement is 50% complete. The committee asked that the board be informed that over 90% of the previous plant material has been kept, just moved to a different area of the building.
Adjournment:
The President adjourned the meeting at 9:09 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Elisabeth Ostler of On the Record.
Respectfully submitted,
Ilo-Mai Harding, Board Secretary
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting May 16, 2011
Board Present:
Charles Bressler ..........................President
Seth Levine .................................Vice President
Molly Frantz ...............................Treasurer
Ilo-Mai Harding ..........................Secretary
Judith Barth ................................Director
Alfred Muller ...............................Director
Board Absent:
M.S. Cockburn ..............................Director
Others Present:
Scott Murdoch ...............Community Manager, Legum & Norman
James M. Santos ...........ECA General Manager
Elisabeth Ostler .............ECA Recording Secretary, On the Record
Call to Order: Mr. Bressler called the meeting to order at 7:05 p.m.
Approval of Previous Meeting Minutes:
No minutes to approve.
President’s Report: Mr. Bressler stated that there was a record low attendance for the election. Mr. Bressler stated that he would like the board to be more open and come-up with more innovative ideas. Mr. Bressler has asked Mr. Santos to install a mailbox in the corridor, I will personally address any comments towards me and compliments will be accepted. This year we will work toward updating the house rules, The Elizabeth resident directory, the data at the front desk which will make the front desk more operational and self-sufficient. Mr. Bressler has requested information regarding a data program that is used by most of the neighboring condominium associations and The Elizabeth residents will be kept informed every step of the way of any progress.
Mr. Bressler stated that the Board is working toward instituting a new policy for owners that intend to remodel their apartment. Residents will be required to submit a request to perform the work, which will need to include a description of the scope of the work to be completed in the apartment with proof of the contractor being licensed, bonded and insured. The Elizabeth is legally responsible and liable for any damage caused by someone that is not properly licensed.
Mr. Bressler stated that in order to bring unity to The Elizabeth, former presidents of the board and other active in the building have been invited to sit down with the a rotating group of board members to create a round table that will meet once per month to exchange ideas and make suggestions. Mr. Bressler stated that although there have been some disagreements in the past, hopefully for the good of The Elizabeth the past can be put aside and can come up with solutions that can be beneficial to all of us.
Mr. Bressler stated he created two additional committees: Security Committee and Architectural Committee.
The board is eager to work hard and closely together to make the Elizabeth a great place to live in harmony.
Treasurer’s Report: Ms. Frantz stated the tenth month was just completed of the fiscal year and is pleased to report that the operating fund is running on small surplus. Expenditures through April 30th of this year were $2,078,741.00, income was $2,084,713.00 and reserve expenditures were $1,740,334.00. On April 27th the board approved a 10% increase in the condominium fees for the fiscal year 2012. This was 5% higher than the proposed budget with all of the increased fees, which amounts to $172,096.00, going to the reserve fund. That makes the fiscal year 2012 to the reserve fund contribution $1,430,350.00. Ms. Frantz will be seeking board approval to hold a working session to develop a new and current five-year reserve expenditure plan, with the expectation that the plan will be approved at the June 20th board meeting. The number of owners who are delinquent continues to drop due to the hard work that management puts in. As a result, delinquencies continue to be low by industry standards amounting to only 1.32% of total assessments. Two-thirds of our $45,000 in delinquencies is due to one owner whose property is currently in foreclosure.
There was an operational error with an out-of-town post office that impacted the deliveries of April condominium fees and Mr. Murdoch will be touching upon that situation. Mr. Murdoch will also be contacting our auditors to initiate the associations first ever cost; basis adjustment letter. For tax purposes, homeowners must first determine the adjusted cost of their home before they can figure the capital gain or loss on the sale of their property. This letter will provide owners the information that will be used to help to determine that cost basis.
All the paperwork required to put Mr. Bressler and Ms. Frantz on the bank accounts will be completed tonight.
Management Report: Mr. Santos stated that currently the update on the delinquency totals for the work orders is down to $933.05, of which $464 is over 60 days. The Board was also given an updated copy of contractor guidelines and a memorandum on the WSSC public hearing attended last week regarding mixed use of meter reading and potential billing. Ms. Frantz asked when the next WSSC meeting will be. Mr. Santos stated that it would be later in May, it should be this week and they will give the results of the public hearing comments to the commissioners and finalize the policy. After they approve the policy, they will send out a 30 day comment again to the public stating that this is what the commissioners have approved and are forecasting. If after the 30 day period there are no changes to it, it will be adopted and go into effect at the end of 2011. Ms. Frantz asked how many people are involved in the work order. Mr. Santos said that he guessed it would be between 25 to 30 people. Dr. Muller asked about the high flow units with regard to the dry cleaners on site. Mr. Santos stated that the form is generic and he will be submitting a waiver for each one of The Elizabeth’s commercial spaces because the size of the space or that they do not use the high flow consumption of water.
Mr. Bressler inquired about the garage fan and asked if it was located on the G1 level. Mr. Santos stated that all exhaust fans on G1 to G4 levels are original equipment with 1975 technology. Mr. Santos put it on hold until the Board reviewed the 5-year reserve plan. He has been making repairs to them but has not replaced any of them yet. Mr. Santos addressed the attire of the concierge at the front desk. Mr. Santos opened discussion about purchasing a blazer for each of the staff at the front desk with an estimated cost of $150 per blazer for 6 staff members. The board discussed the purchase of blazers and agreed that it would improve professional appearance. Mr. Bressler asked if the problem with the pool staff had been fixed. Mr. Santos stated that the weekend guard was not focused on the residents and guests that were actually in the water so Mr. Santos spoke verbally with the president of the company and addressed the issue with the staff member. The issue seemed to continue so Mr. Santos wrote a letter and sent an e-mail. The pool staff member was replaced and the performance of the new guard is 100% improved.
Mr. Bressler asked how the activation of the newsletter is going to be reinstated. Mr. Santos stated that the current website for The Elizabeth condo has module built into it to create a newsletter. It is just a matter of time of creating some topics and writing the document, sending it to the board as a draft. But also, Legum & Norman and its parent company, Associa, has some resources to produce a newsletter so that avenue would just need to be pursued. It would just require some time. Mr. Santos stated that he tries to send letters out to residents on a regular basis and post them in the in the elevators but these are not as good as longer documents that could identify discussion points on several topics.
Regarding the incident with the Mutual of Omaha Bank: a letter was received in April stating that Mutual of Omaha had been notified by the post office that there was an issue with the mail and some homeowner payments were damaged at the post office or had been found loose in the mail. This has affected several of the properties and it is being dealt with on a case by case basis as there is no way to know who was affected.
Open Floor: New resident, Barbara Pollock commended the past board and new board on their civility and also commended the management for doing an amazing job under difficult circumstances. Ms. Pollock also would like to see more communication in the form of a professional newsletter. Mr. Bressler asked if Ms. Pollock would like to be on the committee for the newsletter. Ms. Pollock stated she would volunteer to serve on the newsletter committee.
Resident, Maurice Trebach, requested the minutes from the board meetings posted in due time. Mr. Bressler stated that the board needed at least thirty days to make changes and approve the final draft of the minutes. The board had a discussion about ways to make the minutes more concise and efficient. The community requested an action list posted the day after the board meeting.
Resident, Joan Rosenbach, Chair of The Energy Committee, informed the board of a meeting on Wednesday, June 1st run by Bethesda Green in which ways to lower energy costs will be discussed.
A resident stated concern about the proposed guidelines for contractors. The resident further stated that she would like to hire contractors that she trusts and has confidence in and does not feel that they should be excluded if she would like to hire them. Mr. Bressler stated that accidents happen, The Elizabeth would be liable and that the resident would be paying the cost. Ms. Barth added that she attended a meeting with the insurance agent a few weeks ago and they were appalled that we did not have a policy in place which could put the community in jeopardy.
Old Business: Mr. Santos stated that the fitness committee is still trying to determine the individual pieces to recommend. They may be asking for additional funding. The budget is currently set at $17,000 and that number is currently being exceeded by $4,000. A resident on the exercise committee stated that they are recommending Heartline equipment. They are requesting an increase due to it being over three years since they first had that budget item and some of the current equipment has deteriorated in that time.
Dr. Muller asked if The Elizabeth was able to get a discount on Heartline equipment. Mr. Santos stated that Heartline has an agreement with Associa which is the parent company of Legum & Norman to provide a 40% discount on exercise equipment through the Heartline fitness company. All quotes given to the exercise committee already reflected the reduced rate.
MOTION Dr. Muller moved, Mr. Levine seconded to approve the increase of the exercise equipment budget to $22,000. The motion passed unanimously (6-0-0).
AMENDMENT Ms. Frantz moved, Mr. Bressler seconded to delay the motion and vote now to show the consensus of the board and then vote by email once actual numbers are provided to the board reflecting the increase to the exercise equipment budget to $22,000. The motion failed (2-3-1).
Ms. Barth stated that the board should move forward with approving the provisions outlined by the General Manager in accordance with the outline of contractors to work within the community. A memo was received in August of last year and notification was received by the insurance agent that this is something that needs to be done. Everyone has had an opportunity to look at it since August and have looked at it again recently by email.
Mr. Bressler stated that before the board goes into the motion that the association determines all of the policies and forms regarding the issue so that a single motion would approve the entire apparatus by which the measure would be defined, complied with and enforced. He stated that he had already sent the material to the members and that we would make a motion on it next month but would meet in the mean time to make a complete answer to this problem that could face The Elizabeth. Mr. Bressler affirmed that he is very eager to make a motion on the matter but that the board should wait, have a session on this and come up with a definite forum for this provision that does not leave any questions unanswered.
Mr. Bressler affirmed that a draft could be sent to everyone in the building. Ms. Barth suggested that the board appoint a board member to move the draft along with management so the document is ready to be voted on in June. Mr. Bressler suggested that Ms. Barth take charge of that effort until the June meeting. Dr. Muller reiterated that the proposal must be ready to be voted on in June and not push the vote off until July.
New Business: Ms. Frantz stated that when the budget was approved last month, there was not an expenditure reserve for the next 5 years. Proposed holding a working session in the coming month to update the research, bring in the 2016 items into the current 5 year plan along with the current items that have been spilling over into the reserve and then deal with the issues of what the other priorities are or to suspend additional spending activities for the coming year. There will be a board work session on Wednesday, June 1 at 6:30 to review the 5-year reserve plan.
Ms. Harding presented comments about needing accurate projections of costs to update, renovate and maintain the building’s fixtures. A letter was presented that was written by the doctors from the arcade:
(Attach Letter)
Ms. Harding identified certain areas of the commercial sections that needed to be maintained to include carpeting. Mr. Bressler asserted that those areas were not common areas and would need to be maintained by the owner/tenants. Mr. Santos affirmed that since his tenure, he has tried to incorporate the commercial tenants and owners into the operation. He stated that he felt the areas in question were, in fact, common areas. In the mean time, he had already met with contractors regarding certain maintenance provisions to the commercial property into the current 5-year plan, i.e. replacing single-pane storefront windows with more efficient glass, maintenance of grout and fascia, pressure washing some of the walls, replacing the lighting, benches and trash cans in that area to improve the atmosphere in that area. Ms. Frantz requested to be given the list of items to be considered in the 5-year plan. Mr. Santos confirmed that the list will be provided.
Ms. Barth suggested that the letter be answered with the items that the board discussed in the present meeting. Mr. Bressler stated that he would help draft that letter. Additionally, Ms. Barth discussed a “suggestion box” that a tenant in the building has requested. Ms. Barth stated that the association had just spent over $1.2 million on a renovation by an award winning designer. To then put holes in the wall paper to support such a box is a bad thing when the box could have been put in the office or somewhere else that did not put holes in our new wall paper. Mr. Bressler stated that putting the box near the mail area was the best option for the intent of the suggestion box.
MOTION Ms. Barth moved to disallow putting holes in the wall paper without the consideration of the renovation advisor committee, Dr. Mueller seconded. The motion passed with two votes in opposition by Ms. Frantz and Mr. Bressler and one abstention (3-2-1).
Committee Reports: Dr. Rosenbach stated that Bethesda Green is doing a series of lectures dealing with financing of projects. Meetings are held at Monument Bank and funding sources are presented as available by Monument Bank and from government sources. Dr. Rosenbach cited p. 28 of Mendoza Report stating mold and mildew problems in the building suggesting that The Elizabeth could bring in an environmental engineer. A list of several contractors is provided by the State of Maryland Dept of Energy listing those environmental engineering contractors that deal with mold and mildew. Some mold and mildew can cause disease; a call to awareness of this fact was made. Dr. Rosenbach suggested that she head up a group to interview potential contractors, refine the list to three prospects and let the board make the final selection.
Mr. Bressler asked if there had already been a mold investigation previously. Mr. Santos said that there was a report and a request for quote has been under way for some time. Mr. Santos further stated that he had the name of one group and was just given the names of two other groups the week previous. Mr. Santos will explore the matter further, consult with the experts and come up with appropriate recommendations. Mr. Santos explained that the cost of sampling could exceed tens of thousands of dollars and that the cost of obtaining a report will need to be approved. Dr. Muller asked why it is so difficult to get a sample performed and asked if the previous report could be used. Ms. Barth stated that the previous test was of the party room, a contained area with a limited scope. Dr. Rosenbach suggested that the testing take place during July, August or September because those are the times when this issue is most prevalent in the cooling ducts. Ms. Frantz further stated that if the mold is discovered within a specific unit, it will be the unit owner’s responsibility to remove and that caution should be used when pursuing this because it could potentially be so costly. She suggested trying to identify points of decision whereby the costs of the project can be considered as they arise.
Floor representative committee:
[Letter from Ms. Esler was read aloud to the board]
Attach letter:
Landscape Committee: Mr. Santos presented a report from the landscape committee. Phase one enhancement is 50% complete. The committee asked that the board be informed that over 90% of the previous plant material has been kept, just moved to a different area of the building.
Adjournment:
The President adjourned the meeting at 9:09 p.m.
The initial draft of the minutes, upon which these minutes are based, was prepared by Elisabeth Ostler of On the Record.
Respectfully submitted,
Ilo-Mai Harding, Board Secretary
Tuesday, July 12, 2011
Notes on ECA Board of Directors’ Special Budget Work Session July 7, 2011
Board members present: J. Barth, C. Bressler, M. Frantz, S. Levine, & A. Muller
Absent Board Members: M. Cockburn & I. Harding
L & N management present: Jim Santos & Joseph Simpson
HIGHLIGHTS
> With minor adjustments, ECA’s management-recommended Operational Fund projects for 2012, already included in the 5-year plan, were reconsidered and accepted. (Total: approx. $390,000.)
> There was Board agreement on prioritizing the top three of approximately 12 - 13 separately-identified major Reserve Fund/capital improvement projects:
1) Replacement of unit windows & sliding glass doors
2) Refurbishment of common hallways
3) Upgrades & replacement of HVAC equipment (Heating, Ventilation, & Air Conditioning)
> The Board discussed various ways of financing the
implementation of capital improvement projects.
> The Board agreed that a series of financing options for capital improvement projects should be laid out in a document - to be developed by Treasurer Frantz with arguments “pro and con” for each option - and distributed to all resident owners for their consideration and indication of individual preferences.
SOME of the DETAILS
> RE: management-recommended maintenance projects (Operating Fund) for 2012, already included in 5-year plan: General Manager, Jim Santos, was able to provide exact vendor estimates for some proposed projects; other estimates were based on past history and educated guesswork. Refined estimates are expected in the near future.
Considerations in support of action in 2012 were based on judgments of “immediate necessity,” such as those involving water leaks and rotting facade covers (canopies) over the 5 areas.
DECISION: With respect to the 5 seriously failing “canopies,” the Board seemed in agreement on expending the estimated $145,000 for the upgraded repair of all current canopies, as recommended by management. The Board, however, left unresolved whether to investigate further the cost for both a total design revision and subsequent reconstruction of totally new canopies.
> The Board, in discussing the Reserve Fund “windows & glass doors” project, considered the wisdom of also including, at the same time, implementation of the project to replace arcade and pool windows, as well as arcade doors. (Total estimated cost of the two related projects: $ 2.4 million)
> In discussing the Reserve Fund refurbishment of common hallways project, the Board considered the wisdom of also including, at the same time, (1) the project to replace all unit doors, and (2) the project to refurbish the garage lobbies and the East arcade vestibule. (Total estimated cost of the three related projects: $1.3 million.)
> RE: the financing of top priority capital improvement projects (Reserve Fund), Treasurer Frantz provided comprehensive spread sheets with cost projections (for both Operating Fund maintenance projects and Reserve Fund capital improvement projects) through 2016.
Referencing a “$1.3 million shortfall” in 2012, and another “shortfall” in 2013 of $800,000+, the Treasurer listed several possible financing options for discussion by the board and subsequent presentation to all owners for review and comment. Among those options:
1) ECA assessment to generate $2.5 million (This would translate into individual unit assessments ranging from approx. $5,000 to $8,800, depending on unit size.)
2) A $2.5 million bank loan (netting approx. $2.2 million), paid back over 10 years at 5.5% interest ($326,000 per year, with a one-time condo fee increase of 9%.)
3) Postponing projects and saving $ each year over the next four years, by having a one-time condo fee increase of 14%.
4) Mortgaging the four units owned by the Elizabeth.
Alternatives to the above were discussed, including the possibility that two or more options could be combined. A from-the-floor proposal would have those owners who could afford it, pay for their “windows” replacement project as an individual assessment, with the Association being able to arrange a participating loan vehicle whereby the other owners might still get the advantage of the Association’s one-time purchase of windows and doors, although those owners would bear the increased loan interest cost.
Further pursuit of other such “hybrid” financing options will be undertaken by Treasurer Frantz.
President Levine adjourned the meeting at 9:30 pm.
These notes were developed by Jerry Feldman and Linda Kontnier
Absent Board Members: M. Cockburn & I. Harding
L & N management present: Jim Santos & Joseph Simpson
HIGHLIGHTS
> With minor adjustments, ECA’s management-recommended Operational Fund projects for 2012, already included in the 5-year plan, were reconsidered and accepted. (Total: approx. $390,000.)
> There was Board agreement on prioritizing the top three of approximately 12 - 13 separately-identified major Reserve Fund/capital improvement projects:
1) Replacement of unit windows & sliding glass doors
2) Refurbishment of common hallways
3) Upgrades & replacement of HVAC equipment (Heating, Ventilation, & Air Conditioning)
> The Board discussed various ways of financing the
implementation of capital improvement projects.
> The Board agreed that a series of financing options for capital improvement projects should be laid out in a document - to be developed by Treasurer Frantz with arguments “pro and con” for each option - and distributed to all resident owners for their consideration and indication of individual preferences.
SOME of the DETAILS
> RE: management-recommended maintenance projects (Operating Fund) for 2012, already included in 5-year plan: General Manager, Jim Santos, was able to provide exact vendor estimates for some proposed projects; other estimates were based on past history and educated guesswork. Refined estimates are expected in the near future.
Considerations in support of action in 2012 were based on judgments of “immediate necessity,” such as those involving water leaks and rotting facade covers (canopies) over the 5 areas.
DECISION: With respect to the 5 seriously failing “canopies,” the Board seemed in agreement on expending the estimated $145,000 for the upgraded repair of all current canopies, as recommended by management. The Board, however, left unresolved whether to investigate further the cost for both a total design revision and subsequent reconstruction of totally new canopies.
> The Board, in discussing the Reserve Fund “windows & glass doors” project, considered the wisdom of also including, at the same time, implementation of the project to replace arcade and pool windows, as well as arcade doors. (Total estimated cost of the two related projects: $ 2.4 million)
> In discussing the Reserve Fund refurbishment of common hallways project, the Board considered the wisdom of also including, at the same time, (1) the project to replace all unit doors, and (2) the project to refurbish the garage lobbies and the East arcade vestibule. (Total estimated cost of the three related projects: $1.3 million.)
> RE: the financing of top priority capital improvement projects (Reserve Fund), Treasurer Frantz provided comprehensive spread sheets with cost projections (for both Operating Fund maintenance projects and Reserve Fund capital improvement projects) through 2016.
Referencing a “$1.3 million shortfall” in 2012, and another “shortfall” in 2013 of $800,000+, the Treasurer listed several possible financing options for discussion by the board and subsequent presentation to all owners for review and comment. Among those options:
1) ECA assessment to generate $2.5 million (This would translate into individual unit assessments ranging from approx. $5,000 to $8,800, depending on unit size.)
2) A $2.5 million bank loan (netting approx. $2.2 million), paid back over 10 years at 5.5% interest ($326,000 per year, with a one-time condo fee increase of 9%.)
3) Postponing projects and saving $ each year over the next four years, by having a one-time condo fee increase of 14%.
4) Mortgaging the four units owned by the Elizabeth.
Alternatives to the above were discussed, including the possibility that two or more options could be combined. A from-the-floor proposal would have those owners who could afford it, pay for their “windows” replacement project as an individual assessment, with the Association being able to arrange a participating loan vehicle whereby the other owners might still get the advantage of the Association’s one-time purchase of windows and doors, although those owners would bear the increased loan interest cost.
Further pursuit of other such “hybrid” financing options will be undertaken by Treasurer Frantz.
President Levine adjourned the meeting at 9:30 pm.
These notes were developed by Jerry Feldman and Linda Kontnier
Monday, June 27, 2011
Summary of ECA Meeting June 23, 2011
Present at the meeting: Seth Levine, Judi Barth, Charles Bressler, JImmie Cockburn, Molly Frantz, Ilo-Mai Harding, Al Muller, Scott Murdoch, Jason Fisher (Attorney), Jim Santos, Chris Kiefer, Recording Secretary.
President’s Remarks: He welcomed a large gathering of owners and said he was glad there was a renewed interest in the Association. His expectation for the meeting was to restore harmony among members of the ECA. He also announced that Scott Murdoch has left Legum & Norman. Chris Kiefer of Legum & Norman came to the meeting to represent L&N management. A new community manager has not yet been appointed.
Treasurer’s Report: None
Past Minutes: April minutes were approved with all in favor except Dr. Cockburn. May minutes have not been reviewed because of some technical problems.
House Manager’s Report
There were a number of items requiring Board action & approval. Check with the Management Office for the Memo to the Board dated June 17 for more details.
These items were acted on:
--Approved: Worker’s compensation insurance policy renewed but moved to J. Manougian Insurance Agency which gave the ECA a significant discount over last insurance company.
--Approved: Draft ECA Contractor Guidelines will be sent to owners for comment with the expectation that the Board will vote on final version at the July meeting. One item to pay attention to is a possible fee for getting approval for the contractor an ECA member proposes to hire to work in his/her unit.
--Approved (Cockburn opposed): House Manager given go ahead to hire a company to shred old Association & Management documents.
--Approved: House Manager recommended not filing an insurance claim against damage done in tier 11 since the high deductible negated the possible monetary payment of consequence.
--Approved: Through email, the Board unanimously approved replacement of high- & low-zone circulating pumps for domestic hot water. Board made public endorsement for the official record.
--Approved: Additional money required for marble floor maintenance.
The House Manager will be scheduling a professional to come to the Exercise Facility (on lobby level on the East Side) to demonstrate new equipment. Stay tuned for that announcement.
Old Business: None
New Business:
On behalf of the Library Committee, Judi Barth asked that a sign be installed near the library cabinets that shows this is the library. Board approved this request.
The Library Committee meets every Wednesday from 10 am to noon. If you would like to help with their project to make book identification more tidy, just show up in the West Lobby in the library area.
Election of new vice-president: In a deal that was cut to stop Charles Bressler from presenting his petition that was requesting a special meeting to dissolve the current board of directors, it was agreed that Al Muller would step down as vice-president and the Board would vote in public on the election of Bressler as the new vice-president. The vote passed with five approving and two abstaining (Barth & Harding).
Comments from the floor:
--In the spirit of preserving the best interest of the Association, people generally praised the Board for finding a way to bring order back to the Association business and to move forward with the many critical problems of an aging building.
--A number of people voiced discontent about the 10 percent increase in our condo fees and questioned the legally of how things were handled. It is expected that next week, ECA members will get official notice of the 10 percent increase and the increase will go into effect July 1.
--The issue that the Board does not respond to letters sent by ECA members was raised again.
Next meeting July 18, 2011.
President’s Remarks: He welcomed a large gathering of owners and said he was glad there was a renewed interest in the Association. His expectation for the meeting was to restore harmony among members of the ECA. He also announced that Scott Murdoch has left Legum & Norman. Chris Kiefer of Legum & Norman came to the meeting to represent L&N management. A new community manager has not yet been appointed.
Treasurer’s Report: None
Past Minutes: April minutes were approved with all in favor except Dr. Cockburn. May minutes have not been reviewed because of some technical problems.
House Manager’s Report
There were a number of items requiring Board action & approval. Check with the Management Office for the Memo to the Board dated June 17 for more details.
These items were acted on:
--Approved: Worker’s compensation insurance policy renewed but moved to J. Manougian Insurance Agency which gave the ECA a significant discount over last insurance company.
--Approved: Draft ECA Contractor Guidelines will be sent to owners for comment with the expectation that the Board will vote on final version at the July meeting. One item to pay attention to is a possible fee for getting approval for the contractor an ECA member proposes to hire to work in his/her unit.
--Approved (Cockburn opposed): House Manager given go ahead to hire a company to shred old Association & Management documents.
--Approved: House Manager recommended not filing an insurance claim against damage done in tier 11 since the high deductible negated the possible monetary payment of consequence.
--Approved: Through email, the Board unanimously approved replacement of high- & low-zone circulating pumps for domestic hot water. Board made public endorsement for the official record.
--Approved: Additional money required for marble floor maintenance.
The House Manager will be scheduling a professional to come to the Exercise Facility (on lobby level on the East Side) to demonstrate new equipment. Stay tuned for that announcement.
Old Business: None
New Business:
On behalf of the Library Committee, Judi Barth asked that a sign be installed near the library cabinets that shows this is the library. Board approved this request.
The Library Committee meets every Wednesday from 10 am to noon. If you would like to help with their project to make book identification more tidy, just show up in the West Lobby in the library area.
Election of new vice-president: In a deal that was cut to stop Charles Bressler from presenting his petition that was requesting a special meeting to dissolve the current board of directors, it was agreed that Al Muller would step down as vice-president and the Board would vote in public on the election of Bressler as the new vice-president. The vote passed with five approving and two abstaining (Barth & Harding).
Comments from the floor:
--In the spirit of preserving the best interest of the Association, people generally praised the Board for finding a way to bring order back to the Association business and to move forward with the many critical problems of an aging building.
--A number of people voiced discontent about the 10 percent increase in our condo fees and questioned the legally of how things were handled. It is expected that next week, ECA members will get official notice of the 10 percent increase and the increase will go into effect July 1.
--The issue that the Board does not respond to letters sent by ECA members was raised again.
Next meeting July 18, 2011.
April 2011 Minutes of ECA Board Meeting
THE ELIZABETH CONDOMINIUM ASSOCIATION
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting APRIL 18, 2011
Board Present:
Alexandria Kielty .........................President
Dr. Alfred Muller .........................Vice President
Monique Fridell ...........................Treasurer
Molly Frantz ...............................Assistant Treasurer
Charles Bressler ...........................Secretary
Judith Barth ................................Director
Seth Levine .................................Director
Others Present:
Scott Murdoch ...............Community Manager, Legum & Norman
James M. Santos ...........ECA General Manager
Call to Order: Ms. Kielty called the meeting to order; a quorum was present. [This statement about a quorum has been raised as problematic to the ECA Board. The call to order is also missing the official start time.]
APPROVAL OF PREVIOUS MEETING MINUTES:
MOTION Dr. Muller moved to approve the minutes of the March 21 Board of Directors meeting, as amended. Seconded by Mr. Bressler and adopted unanimously (7-0-0).
PRESIDENT’S REPORT:
Ms. Kielty, recalling the distribution of the proposed FY2012 budget to owners for review and comment, reminded everyone that the proposed budget will be considered for adoption by the Board at a special meeting scheduled for Wednesday, April 27, at 7:30 p.m. She urged that all owners be present at that meeting. She also extended her thanks to Mr. Jim Rich, who was responsible for developing the recent survey of residents. The response thus far has been good. She asked that those who have already responded urge their neighbors to do so. Finally, Ms. Kielty also reminded everyone present that the 2011 Annual Meeting of the Association is scheduled for Wednesday, May 4, at 7:30 p.m. She encouraged all owners to attend to ensure a quorum in order to conduct necessary business before the Membership.
TREASURER’S REPORT: Ms. Fridell had no report.
OLD BUSINESS:
Proposed FY2012 Budget
Ms. Fridell reviewed the spreadsheets she has prepared on various scenarios relative to the funding of capital repairs and replacements over the next five-year period. Ms. Fridell clarified that the significant difference between the current Reserve funding scenarios and those previously discussed is the inclusion of about $2.5 million in expenditures—to include an estimated $300,000 for new building canopies and $164,000 for water consumption submetering of the building’s commercial units—over and above the projects already scheduled for the next five-year period. It also defers to beyond 2016 about $2.3 million in Reserve expenditures to help offset the cost of replacement unit windows and balcony doors. The challenge has been to generate the funds necessary to ensure that the building is well maintained while keeping condominium assessment increases reasonable. Under the current scenario, the Association will not have the Reserve funds necessary to fund scheduled capital repairs and replacement in some years, even if the Board approves a 10 percent increase in monthly assessments for the coming year.
Ms. Frantz clarified that her revised calculations assume a 5 percent increase in assessments for FY2012, all of which will be allocated to fund Reserves. Thus, based on that updated calculations, the net amount to Reserves is about $200,000 greater than originally estimated. Further adjustments are being made to the figures to account for already-approved or ongoing capital projects, the final costs of which should be available shortly.
Ms. Fridell further suggested that when thinking about the appropriate level of Reserve contribution in the coming years, the Board must consider that the five-year plan calls for about $1.5 million in capital expenditures per year.
Dr. Muller noted that whereas the future will be challenging, for the first time ever, and thanks to Management and the Treasurer, the Board has a Reserve Study and Schedule that includes all of the capital repairs and replacements that will be necessary in the foreseeable future and viable cost estimates for each, serving as an important planning tool. He urged, nonetheless, that no action on the budget be taken tonight but rather that the revised spreadsheet, which allows for certain variables, be distributed to the Board for review and further massaging.
Ms. Kielty added that the state of the Reserve Fund should not come as a surprise to owners as the Board has for some time been discussing capital repairs and replacement needs and has discussed the possibility of proposing to the ownership a special assessment to help pay for these needs. Ms. Fridell noted that whereas there has been some opposition to a special assessment, she believes that to be the most prudent approach to raising the monies needed to fund capital projects, not annual increases in monthly assessments. She calculates that if the Association approves a $1.4 million special assessment—the figure she calculates is necessary to ensure that the Association’s Reserve Fund balance does not dip into negative territory within the next five years—the average cost per unit would be about $4,000. Based on her proportion of shares of a two-bedroom unit, her cost would be $4,430, payable over a two year period. She figures that she would spend about that to replace the four windows and one balcony door in her unit.
Mr. Bressler, who has lived at The Elizabeth since the middle 1970s, noted that inadequate Reserve funding and inflation over the decades, coupled with significant deferred maintenance has led to the Association’s current position—i.e., the need to undertake a number of significant and costly projects for which funds are not readily available. And, whereas these projects need not be undertaken at once, the Association cannot afford to continue to defer projects indefinitely. He suggested that the Association no longer has the options of delaying the inevitable, and urged that the Board consider a 10 percent increase in assessments in FY2012, the entire proceeds to be allocated to the Reserve Fund. He added that replacing unit windows, doors, and HVAC systems will result in significant utility cost savings; these savings should be factored into the calculation of how and when these projects are to be undertaken.
Dr. Muller suggested that replacement of the canopies and submetering of the commercial space, be deferred. He also noted that whereas Ms. Fridell is correct in that a one-time special assessment is ultimately less costly than annual increases in condominium assessments, he is concerned that there are a number of owners whose cash flow would not accommodate a special assessment.
Ms. Kielty reminded the Board that questions of which projects to pursue, which to defer, and how best to fund them will be the focus of the April 27 meeting. At that meeting, the Board can also discuss with owners the suggestion of a one-year hiatus on capital projects.
Ms. Frantz commented with regard to the submetering of the commercial units, that if WSSC requires the submetering of commercial units to ensure that the Association can continue to benefit from lower residential rates, then it would behoove the Association to undertake this project quickly as the added cost of water and sewer at commercial rates will have a significant impact on operating costs. And, while there has been some discussion that WSSC may grandfather in older communities, not requiring commercial space submetering, it would be prudent to keep the funds in the Reserve schedule should submetering be required after all. If submetering is not required, the funds can be reallocated to other projects. Dr. Muller countered that if indeed WSSC requires submetering, the Association can use operating contingency funds—which are intended for such purposes. He would argue against collecting from owners more money than is needed to operate and maintain the property.
Ms. Fridell noted that, setting aside particular projects, the fact is that there has been an upward trend over the past several years in the building’s capital expenditure needs, in large part due to its age. According to an analysis prepared by Ms. Frantz, whereas capital expenses ranged between $400,000 and $600,000 per year in previous years, the last two years saw expenditures in excess of $1 million per year. During the current year, $2 million was estimated, but was later reduced due to Board decisions to defer certain small projects. The Reserve Schedule now before the Board calls for about $1.5 million in capital expenditures per year over the next five-year period.
Projects Update: Mr. Santos reported that as approved by the Board at its last meeting, Management has arranged for the installation of a new server to power the property’s surveillance equipment, and a new engine for the Association’s garage floor sweeper. Moreover, the common area doors have been rekeyed with a new fob-controlled system, and additional fob readers have been installed. These should facilitate authorized access to the property while improve controls against unauthorized access. In response to Mr. Bressler’s inquiry, Mr. Santos clarified that access to the Arcade, garage lobbies and guest garage level will be better controlled and that notices will be sent to residents so that they are aware that access for those common areas will require a fob. Guests wishing to access the property from those areas can use the intercom system, which connects to the front desk.
In response to a query regarding new microphones for use during Board and other meetings, Mr. Santos noted that there had been some problems with the microphones that were purchased initially. These were sent back and new ones should be available at the Board’s next meeting.
In terms of forthcoming projects, Mr. Santos noted that he is scheduling several spring cleaning and painting projects. The staff also will be focusing, over the next fiscal year, on upgrading the emergency alert systems and updating the Association’s emergency and evacuation plans, among others projects.
Fitness Room Upgrades: Mr. Santos reported receipt of an initial quote for replacing and adding several pieces of equipment in the Fitness Room from Heartline Fitness, the maintenance contractor on the existing equipment. Mr. Santos noted that Associa, Legum & Norman’s parent firm, has an arrangement with Heartline Fitness that will result in cost savings to the Association of about 40 percent, thus allowing for additional equipment. A Committee of residents is advising Management on what equipment is most appropriate for the community. Mr. Santos expects to have a final proposal for the Board’s consideration at its next meeting, well within the $17,000 budget for this project.
NEW BUSINESS:
Managing Agent Services Contract: Mr. Murdoch clarified that whereas the renewal language in the Association’s current contract with Legum & Norman (L&N) provides for annual increases of CPI plus 1.5 percent, currently 4.5 percent, L&N is now proposing a three-year renewal, with no increase over current rates in the first year, and a three percent cap on increases in the second and third years. He further clarified that whereas L&N is revising its contract document, the changes are not substantive. It will, most importantly, continue to include the standard clause providing a 60-day termination without cause. The current contract expires on June 30, 2011.
The Board generally agreed that whereas there have been several issues with regard to L&N’s financial management services, the Association has benefited from the relationship with Legum & Norman and that renewal of the contract is appropriate. The Board, nonetheless, agreed that the proposed new contract be reviewed by legal counsel before it is executed. Of special concern is the ability to terminate, at least the financial services aspects of the contract, should there not be the necessary improvements in L&N’s financial management in the months ahead. The Board requested that Mr. Murdoch provide a copy of the proposed new contract to the Association’s legal counsel for review.
MOTION Dr. Muller moved to approve the proposal to renew the managing agent arrangement with Legum & Norman, for a term of three years, with no increase in the first year and a 3 percent cap on increases in the second and third years, subject to legal counsel’s review and advice. Seconded by Ms. Fridell.
Ms. Fridell noted that while she supports renewing the contract based on the site management team, she continues to have serious concerns regarding L&N’s performance of the important financial management functions. As her term on the Board will be expiring, she urged that the new Board and Board Treasurer make it a priority to address these issues definitively in the next fiscal year. Issues include collection of delinquent assessment accounts, on which the L&N accounting/financial management staff has been less than proactive and which, were it not for the active involvement of the site manager, would be a greater problem for the Association; a number of basic bookkeeping and accounting errors, even beyond the miscoding of expenses, which resulted this past year in a significant number of adjustments made in the audited financial statements; and the accuracy and usefulness of the monthly financial reports, which have to date required close review by staff and the Treasurer to ensure that the Board is given a clear picture of the Association’s financial position at all times. This latter point is of special concern to Ms. Fridell as it is imperative that the Board trust the accuracy of the monthly financial statements, particularly if there is no one on the Board with accounting or financial management expertise. To their credit, it is her understanding that L&N is installing new financial management software that should help address some of the issues cited over the past months but it is important that the Board remain vigilant. Thus, Ms. Fridell recommended that the next Treasurer set down a number of critical performance improvement goals for L&N on the financial management front and that if these are not met within a reasonable time, the Board consider engaging another firm to undertake the financial management function or bring that function in-house.
Ms. Frantz added that whereas she concurs that the management team represents an enormous added value to the community, she too has concerns about the financial management aspect. She clarified, however, and Ms. Fridell concurred, that there is no question about fraud or malfeasance, but rather questions of sloppy bookkeeping and an apparent lack of knowledge of basic accounting principles. Of particular concern to Ms. Frantz is L&N’s inability to properly apply assessment payments made on several units with one check. That is but one example of a simple accounting function that has thus far not been handled properly. Ms. Frantz too urged that the incoming Treasurer treat the resolution of these issues as a priority in the coming year. Finally, Ms. Frantz expressed her discomfort approving a contract that she has not had the opportunity to read.
Ms. Kielty noted that whereas she agrees that there are persistent financial management issues, the problems experienced during the last audit were in part due to the Association undertaking the audit too early in the year and during a time of transition, when the management team was new to the community and it was in the middle of a major refurbishment project. She also noted that, as an individual not well-versed in bookkeeping and accounting principles, the financial statements generated by L&N are a vast improvement over what was presented under self-management, most particularly with regarding to the income and expenses analyses that are presented monthly. She also reiterated that despite the various accounting issues cited, there have been no questions of fraud or unnecessary expenses. Ms. Fridell concurred that the monthly analyses presented are indeed useful, but these are the result of significant work on her and Mr. Murdoch’s part.
VOTE ON MOTION The motion to renew the managing agent services control with Legum & Norman for a term of three years, per the terms proposed and pending legal counsel’s review was a adopted by a vote of 6 ayes, 1 abstention by Ms. Frantz, and no nays.
Landscape Contract:
MOTION Ms. Frantz moved that the Board ratify action taken between meetings by e-mail to approve the proposal presented by Ruppert Landscaping to undertake Phase 1 of the master landscape plan, at a cost not to exceed $16,650. Seconded by Mr. Bressler and adopted unanimously (7-0-0).
Mr. Santos clarified that the final expense will be somewhat lower as the contractor will apply the cost of the landscape design to the cost of its implementation. The irrigation system repairs are under separate contract. For the benefit of residents present, Mr. Santos clarified that a master landscape plan was commissioned, to include an inventory of existing plantings and a redesign of the planting areas with more appropriate plant material, greater symmetry, and a refreshed and aesthetic appearance. Phase 1 of the plan addresses the entrance to the building—to include the circular drive, the beds on either side of the entrance, and the planter box on the east side of the building.
Whereas Dr. Muller had no objection to the proposal, he urged against taking action on contracts by e-mail, except in emergency circumstances. Ms. Frantz thanked the members of the Landscape Committee for their work to improve the appearance of the community.
Master Insurance Coverage: Mr. Murdoch recalled that last year, the Board adopted the proposal submitted by John Manougian Insurance, transferring coverage from the Firemen’s Fund to Greater New York Mutual, at an annual premium savings of $53,000. He further recalled that L&N typically solicits competitive quotes for insurance coverage every two years; given the significant savings realized last year with Manougian, competitive quotes were not solicited. Manougian Insurance proposes renewal of the existing coverage, with the addition of coverage for the Association’s above-ground diesel fuel tank (which supplies the new generator) and increased artwork coverage at a total premium cost of $105,106.04, a further reduction over the current year’s premium cost $2,031.96.
MOTION Dr. Muller moved that the Board accept the recommendation of Manougian Insurance to renew the Association’s master insurance coverage—to include general property and liability, Directors’ and Officers’, crime and employee dishonesty, diesel fuel tank liability, and fine art coverages—through Greater New York Mutual at an annual premium cost of $105,106.04. Seconded by Ms. Barth and adopted unanimously (7-0-0).
Ms. Kielty noted, for the record, that Manougian Insurance has acknowledged that the frequency of claims has been reduced dramatically since 2009, which has positively impacted the Association’s ability to obtain necessary coverages at reasonable cost. The Association’s agent also has offered to meet with the Board later in the summer or early fall to review new legislation, that becomes effective on October 1, that makes it easier for Associations to adopt a bylaw amendment requiring unit owners obtain HO-6 coverage—condominium homeowners coverage. Such coverage extends over owners’ personal property, any betterments and improvements in their unit, and personal liability.
COMMITTEE REPORTS:
Landscape: Mr. Rich noted that now that the landscape improvements contract has been approved, the Committee will work with Management and the contractor, as appropriate, to ensure that the improvements occur as quickly as possible.
Chairman’s Contributions: Ms. Kielty reported that with the help of the “Making a Difference Committee” and James Santos, the Committee has identified several charitable organizations who are interested in and willing to pick up donations of items from the community. The National Alliance on Mental Health (NAMH) has agreed to schedule pickups of items that can be resold through the NAMH thrift shop. A Wider Circle, an organization that assists the homeless, also will pick up donations of household items, such as furniture, small working appliances, kitchenware, and linens. Finally, the Committee is making arrangements for the recycling of other items, such as electronics, clothing, books, and magazines. A series of bins will be located on the East and West G-1 garage levels for the collection of such items and notices will be sent to all residents regarding this program.
COMMENTS FROM THE FLOOR:
A resident objected to the removal of certain comments from an Elizabeth resident’s web-based blog. Ms. Kielty clarified that the Board and staff does not endorse nor manage the web-based blog.
A resident who has resided at The Elizabeth since 1975 commented that the current Management Team—Messrs. Murdoch and Santos, and Ms. Powell—is a much-welcomed improvement that all residents benefit from. She cited particularly Mr. Santos’s technical expertise, which has resulted in significant improvements in the operation of The Elizabeth’s physical plant. She expressed her delight at the Board’s intent to renew its arrangement with L&N for three years.
With regard to possibly adopting a one-year hiatus on capital projects, she strongly recommended against the Board taking such action, calling it an extremely poor business decision given that conditions have never been more favorable—that is, the cost of materials, labor, and money will never be less expensive than it is now—to address the many long standing issues that have been deferred in the past. She recommended against such a hiatus, urging instead that the Board move forward with whatever is necessary to take care of the property’s repair and replacement needs.
A resident commented on the recent questionnaire, questioning the purpose of the second item, which asked whether owners were residents or non-residents, and noting that several of the questions appeared to be leading—that is, eliciting certain responses. He suggested that the results of the questionnaire be broken down by type of respondent—owner resident and non-resident owner—and that the results are made available to interested owners in digital format and in print form.
Mr. Rich noted, with regard to the upcoming elections, that he has prepared a series of questions to which he would like each of the candidates to respond. These will assist the candidates as they prepare for the Meet the Candidates session and will give the community a good sense of the candidates’ qualifications and positions on issues.
A resident commented on the recent debate as to whether there should be doors on the library shelves. He favored no doors and suggested a more appealing labeling system to address concerns about the appearance of the shelves. A representative from the Library Committee reported on the work underway to improve the appearance and organization of the library, to include a new labeling system.
ADJOURNMENT:
Ms. Kielty adjourned the meeting. [Time of the meeting not listed.]
The initial draft of these minutes was prepared by Yasmin Santiago.
Respectfully Submitted,
Charles Bressler
Secretary, Board of Directors
4601 North Park Avenue
Chevy Chase, MD 20815
Minutes of Board of Directors Meeting APRIL 18, 2011
Board Present:
Alexandria Kielty .........................President
Dr. Alfred Muller .........................Vice President
Monique Fridell ...........................Treasurer
Molly Frantz ...............................Assistant Treasurer
Charles Bressler ...........................Secretary
Judith Barth ................................Director
Seth Levine .................................Director
Others Present:
Scott Murdoch ...............Community Manager, Legum & Norman
James M. Santos ...........ECA General Manager
Call to Order: Ms. Kielty called the meeting to order; a quorum was present. [This statement about a quorum has been raised as problematic to the ECA Board. The call to order is also missing the official start time.]
APPROVAL OF PREVIOUS MEETING MINUTES:
MOTION Dr. Muller moved to approve the minutes of the March 21 Board of Directors meeting, as amended. Seconded by Mr. Bressler and adopted unanimously (7-0-0).
PRESIDENT’S REPORT:
Ms. Kielty, recalling the distribution of the proposed FY2012 budget to owners for review and comment, reminded everyone that the proposed budget will be considered for adoption by the Board at a special meeting scheduled for Wednesday, April 27, at 7:30 p.m. She urged that all owners be present at that meeting. She also extended her thanks to Mr. Jim Rich, who was responsible for developing the recent survey of residents. The response thus far has been good. She asked that those who have already responded urge their neighbors to do so. Finally, Ms. Kielty also reminded everyone present that the 2011 Annual Meeting of the Association is scheduled for Wednesday, May 4, at 7:30 p.m. She encouraged all owners to attend to ensure a quorum in order to conduct necessary business before the Membership.
TREASURER’S REPORT: Ms. Fridell had no report.
OLD BUSINESS:
Proposed FY2012 Budget
Ms. Fridell reviewed the spreadsheets she has prepared on various scenarios relative to the funding of capital repairs and replacements over the next five-year period. Ms. Fridell clarified that the significant difference between the current Reserve funding scenarios and those previously discussed is the inclusion of about $2.5 million in expenditures—to include an estimated $300,000 for new building canopies and $164,000 for water consumption submetering of the building’s commercial units—over and above the projects already scheduled for the next five-year period. It also defers to beyond 2016 about $2.3 million in Reserve expenditures to help offset the cost of replacement unit windows and balcony doors. The challenge has been to generate the funds necessary to ensure that the building is well maintained while keeping condominium assessment increases reasonable. Under the current scenario, the Association will not have the Reserve funds necessary to fund scheduled capital repairs and replacement in some years, even if the Board approves a 10 percent increase in monthly assessments for the coming year.
Ms. Frantz clarified that her revised calculations assume a 5 percent increase in assessments for FY2012, all of which will be allocated to fund Reserves. Thus, based on that updated calculations, the net amount to Reserves is about $200,000 greater than originally estimated. Further adjustments are being made to the figures to account for already-approved or ongoing capital projects, the final costs of which should be available shortly.
Ms. Fridell further suggested that when thinking about the appropriate level of Reserve contribution in the coming years, the Board must consider that the five-year plan calls for about $1.5 million in capital expenditures per year.
Dr. Muller noted that whereas the future will be challenging, for the first time ever, and thanks to Management and the Treasurer, the Board has a Reserve Study and Schedule that includes all of the capital repairs and replacements that will be necessary in the foreseeable future and viable cost estimates for each, serving as an important planning tool. He urged, nonetheless, that no action on the budget be taken tonight but rather that the revised spreadsheet, which allows for certain variables, be distributed to the Board for review and further massaging.
Ms. Kielty added that the state of the Reserve Fund should not come as a surprise to owners as the Board has for some time been discussing capital repairs and replacement needs and has discussed the possibility of proposing to the ownership a special assessment to help pay for these needs. Ms. Fridell noted that whereas there has been some opposition to a special assessment, she believes that to be the most prudent approach to raising the monies needed to fund capital projects, not annual increases in monthly assessments. She calculates that if the Association approves a $1.4 million special assessment—the figure she calculates is necessary to ensure that the Association’s Reserve Fund balance does not dip into negative territory within the next five years—the average cost per unit would be about $4,000. Based on her proportion of shares of a two-bedroom unit, her cost would be $4,430, payable over a two year period. She figures that she would spend about that to replace the four windows and one balcony door in her unit.
Mr. Bressler, who has lived at The Elizabeth since the middle 1970s, noted that inadequate Reserve funding and inflation over the decades, coupled with significant deferred maintenance has led to the Association’s current position—i.e., the need to undertake a number of significant and costly projects for which funds are not readily available. And, whereas these projects need not be undertaken at once, the Association cannot afford to continue to defer projects indefinitely. He suggested that the Association no longer has the options of delaying the inevitable, and urged that the Board consider a 10 percent increase in assessments in FY2012, the entire proceeds to be allocated to the Reserve Fund. He added that replacing unit windows, doors, and HVAC systems will result in significant utility cost savings; these savings should be factored into the calculation of how and when these projects are to be undertaken.
Dr. Muller suggested that replacement of the canopies and submetering of the commercial space, be deferred. He also noted that whereas Ms. Fridell is correct in that a one-time special assessment is ultimately less costly than annual increases in condominium assessments, he is concerned that there are a number of owners whose cash flow would not accommodate a special assessment.
Ms. Kielty reminded the Board that questions of which projects to pursue, which to defer, and how best to fund them will be the focus of the April 27 meeting. At that meeting, the Board can also discuss with owners the suggestion of a one-year hiatus on capital projects.
Ms. Frantz commented with regard to the submetering of the commercial units, that if WSSC requires the submetering of commercial units to ensure that the Association can continue to benefit from lower residential rates, then it would behoove the Association to undertake this project quickly as the added cost of water and sewer at commercial rates will have a significant impact on operating costs. And, while there has been some discussion that WSSC may grandfather in older communities, not requiring commercial space submetering, it would be prudent to keep the funds in the Reserve schedule should submetering be required after all. If submetering is not required, the funds can be reallocated to other projects. Dr. Muller countered that if indeed WSSC requires submetering, the Association can use operating contingency funds—which are intended for such purposes. He would argue against collecting from owners more money than is needed to operate and maintain the property.
Ms. Fridell noted that, setting aside particular projects, the fact is that there has been an upward trend over the past several years in the building’s capital expenditure needs, in large part due to its age. According to an analysis prepared by Ms. Frantz, whereas capital expenses ranged between $400,000 and $600,000 per year in previous years, the last two years saw expenditures in excess of $1 million per year. During the current year, $2 million was estimated, but was later reduced due to Board decisions to defer certain small projects. The Reserve Schedule now before the Board calls for about $1.5 million in capital expenditures per year over the next five-year period.
Projects Update: Mr. Santos reported that as approved by the Board at its last meeting, Management has arranged for the installation of a new server to power the property’s surveillance equipment, and a new engine for the Association’s garage floor sweeper. Moreover, the common area doors have been rekeyed with a new fob-controlled system, and additional fob readers have been installed. These should facilitate authorized access to the property while improve controls against unauthorized access. In response to Mr. Bressler’s inquiry, Mr. Santos clarified that access to the Arcade, garage lobbies and guest garage level will be better controlled and that notices will be sent to residents so that they are aware that access for those common areas will require a fob. Guests wishing to access the property from those areas can use the intercom system, which connects to the front desk.
In response to a query regarding new microphones for use during Board and other meetings, Mr. Santos noted that there had been some problems with the microphones that were purchased initially. These were sent back and new ones should be available at the Board’s next meeting.
In terms of forthcoming projects, Mr. Santos noted that he is scheduling several spring cleaning and painting projects. The staff also will be focusing, over the next fiscal year, on upgrading the emergency alert systems and updating the Association’s emergency and evacuation plans, among others projects.
Fitness Room Upgrades: Mr. Santos reported receipt of an initial quote for replacing and adding several pieces of equipment in the Fitness Room from Heartline Fitness, the maintenance contractor on the existing equipment. Mr. Santos noted that Associa, Legum & Norman’s parent firm, has an arrangement with Heartline Fitness that will result in cost savings to the Association of about 40 percent, thus allowing for additional equipment. A Committee of residents is advising Management on what equipment is most appropriate for the community. Mr. Santos expects to have a final proposal for the Board’s consideration at its next meeting, well within the $17,000 budget for this project.
NEW BUSINESS:
Managing Agent Services Contract: Mr. Murdoch clarified that whereas the renewal language in the Association’s current contract with Legum & Norman (L&N) provides for annual increases of CPI plus 1.5 percent, currently 4.5 percent, L&N is now proposing a three-year renewal, with no increase over current rates in the first year, and a three percent cap on increases in the second and third years. He further clarified that whereas L&N is revising its contract document, the changes are not substantive. It will, most importantly, continue to include the standard clause providing a 60-day termination without cause. The current contract expires on June 30, 2011.
The Board generally agreed that whereas there have been several issues with regard to L&N’s financial management services, the Association has benefited from the relationship with Legum & Norman and that renewal of the contract is appropriate. The Board, nonetheless, agreed that the proposed new contract be reviewed by legal counsel before it is executed. Of special concern is the ability to terminate, at least the financial services aspects of the contract, should there not be the necessary improvements in L&N’s financial management in the months ahead. The Board requested that Mr. Murdoch provide a copy of the proposed new contract to the Association’s legal counsel for review.
MOTION Dr. Muller moved to approve the proposal to renew the managing agent arrangement with Legum & Norman, for a term of three years, with no increase in the first year and a 3 percent cap on increases in the second and third years, subject to legal counsel’s review and advice. Seconded by Ms. Fridell.
Ms. Fridell noted that while she supports renewing the contract based on the site management team, she continues to have serious concerns regarding L&N’s performance of the important financial management functions. As her term on the Board will be expiring, she urged that the new Board and Board Treasurer make it a priority to address these issues definitively in the next fiscal year. Issues include collection of delinquent assessment accounts, on which the L&N accounting/financial management staff has been less than proactive and which, were it not for the active involvement of the site manager, would be a greater problem for the Association; a number of basic bookkeeping and accounting errors, even beyond the miscoding of expenses, which resulted this past year in a significant number of adjustments made in the audited financial statements; and the accuracy and usefulness of the monthly financial reports, which have to date required close review by staff and the Treasurer to ensure that the Board is given a clear picture of the Association’s financial position at all times. This latter point is of special concern to Ms. Fridell as it is imperative that the Board trust the accuracy of the monthly financial statements, particularly if there is no one on the Board with accounting or financial management expertise. To their credit, it is her understanding that L&N is installing new financial management software that should help address some of the issues cited over the past months but it is important that the Board remain vigilant. Thus, Ms. Fridell recommended that the next Treasurer set down a number of critical performance improvement goals for L&N on the financial management front and that if these are not met within a reasonable time, the Board consider engaging another firm to undertake the financial management function or bring that function in-house.
Ms. Frantz added that whereas she concurs that the management team represents an enormous added value to the community, she too has concerns about the financial management aspect. She clarified, however, and Ms. Fridell concurred, that there is no question about fraud or malfeasance, but rather questions of sloppy bookkeeping and an apparent lack of knowledge of basic accounting principles. Of particular concern to Ms. Frantz is L&N’s inability to properly apply assessment payments made on several units with one check. That is but one example of a simple accounting function that has thus far not been handled properly. Ms. Frantz too urged that the incoming Treasurer treat the resolution of these issues as a priority in the coming year. Finally, Ms. Frantz expressed her discomfort approving a contract that she has not had the opportunity to read.
Ms. Kielty noted that whereas she agrees that there are persistent financial management issues, the problems experienced during the last audit were in part due to the Association undertaking the audit too early in the year and during a time of transition, when the management team was new to the community and it was in the middle of a major refurbishment project. She also noted that, as an individual not well-versed in bookkeeping and accounting principles, the financial statements generated by L&N are a vast improvement over what was presented under self-management, most particularly with regarding to the income and expenses analyses that are presented monthly. She also reiterated that despite the various accounting issues cited, there have been no questions of fraud or unnecessary expenses. Ms. Fridell concurred that the monthly analyses presented are indeed useful, but these are the result of significant work on her and Mr. Murdoch’s part.
VOTE ON MOTION The motion to renew the managing agent services control with Legum & Norman for a term of three years, per the terms proposed and pending legal counsel’s review was a adopted by a vote of 6 ayes, 1 abstention by Ms. Frantz, and no nays.
Landscape Contract:
MOTION Ms. Frantz moved that the Board ratify action taken between meetings by e-mail to approve the proposal presented by Ruppert Landscaping to undertake Phase 1 of the master landscape plan, at a cost not to exceed $16,650. Seconded by Mr. Bressler and adopted unanimously (7-0-0).
Mr. Santos clarified that the final expense will be somewhat lower as the contractor will apply the cost of the landscape design to the cost of its implementation. The irrigation system repairs are under separate contract. For the benefit of residents present, Mr. Santos clarified that a master landscape plan was commissioned, to include an inventory of existing plantings and a redesign of the planting areas with more appropriate plant material, greater symmetry, and a refreshed and aesthetic appearance. Phase 1 of the plan addresses the entrance to the building—to include the circular drive, the beds on either side of the entrance, and the planter box on the east side of the building.
Whereas Dr. Muller had no objection to the proposal, he urged against taking action on contracts by e-mail, except in emergency circumstances. Ms. Frantz thanked the members of the Landscape Committee for their work to improve the appearance of the community.
Master Insurance Coverage: Mr. Murdoch recalled that last year, the Board adopted the proposal submitted by John Manougian Insurance, transferring coverage from the Firemen’s Fund to Greater New York Mutual, at an annual premium savings of $53,000. He further recalled that L&N typically solicits competitive quotes for insurance coverage every two years; given the significant savings realized last year with Manougian, competitive quotes were not solicited. Manougian Insurance proposes renewal of the existing coverage, with the addition of coverage for the Association’s above-ground diesel fuel tank (which supplies the new generator) and increased artwork coverage at a total premium cost of $105,106.04, a further reduction over the current year’s premium cost $2,031.96.
MOTION Dr. Muller moved that the Board accept the recommendation of Manougian Insurance to renew the Association’s master insurance coverage—to include general property and liability, Directors’ and Officers’, crime and employee dishonesty, diesel fuel tank liability, and fine art coverages—through Greater New York Mutual at an annual premium cost of $105,106.04. Seconded by Ms. Barth and adopted unanimously (7-0-0).
Ms. Kielty noted, for the record, that Manougian Insurance has acknowledged that the frequency of claims has been reduced dramatically since 2009, which has positively impacted the Association’s ability to obtain necessary coverages at reasonable cost. The Association’s agent also has offered to meet with the Board later in the summer or early fall to review new legislation, that becomes effective on October 1, that makes it easier for Associations to adopt a bylaw amendment requiring unit owners obtain HO-6 coverage—condominium homeowners coverage. Such coverage extends over owners’ personal property, any betterments and improvements in their unit, and personal liability.
COMMITTEE REPORTS:
Landscape: Mr. Rich noted that now that the landscape improvements contract has been approved, the Committee will work with Management and the contractor, as appropriate, to ensure that the improvements occur as quickly as possible.
Chairman’s Contributions: Ms. Kielty reported that with the help of the “Making a Difference Committee” and James Santos, the Committee has identified several charitable organizations who are interested in and willing to pick up donations of items from the community. The National Alliance on Mental Health (NAMH) has agreed to schedule pickups of items that can be resold through the NAMH thrift shop. A Wider Circle, an organization that assists the homeless, also will pick up donations of household items, such as furniture, small working appliances, kitchenware, and linens. Finally, the Committee is making arrangements for the recycling of other items, such as electronics, clothing, books, and magazines. A series of bins will be located on the East and West G-1 garage levels for the collection of such items and notices will be sent to all residents regarding this program.
COMMENTS FROM THE FLOOR:
A resident objected to the removal of certain comments from an Elizabeth resident’s web-based blog. Ms. Kielty clarified that the Board and staff does not endorse nor manage the web-based blog.
A resident who has resided at The Elizabeth since 1975 commented that the current Management Team—Messrs. Murdoch and Santos, and Ms. Powell—is a much-welcomed improvement that all residents benefit from. She cited particularly Mr. Santos’s technical expertise, which has resulted in significant improvements in the operation of The Elizabeth’s physical plant. She expressed her delight at the Board’s intent to renew its arrangement with L&N for three years.
With regard to possibly adopting a one-year hiatus on capital projects, she strongly recommended against the Board taking such action, calling it an extremely poor business decision given that conditions have never been more favorable—that is, the cost of materials, labor, and money will never be less expensive than it is now—to address the many long standing issues that have been deferred in the past. She recommended against such a hiatus, urging instead that the Board move forward with whatever is necessary to take care of the property’s repair and replacement needs.
A resident commented on the recent questionnaire, questioning the purpose of the second item, which asked whether owners were residents or non-residents, and noting that several of the questions appeared to be leading—that is, eliciting certain responses. He suggested that the results of the questionnaire be broken down by type of respondent—owner resident and non-resident owner—and that the results are made available to interested owners in digital format and in print form.
Mr. Rich noted, with regard to the upcoming elections, that he has prepared a series of questions to which he would like each of the candidates to respond. These will assist the candidates as they prepare for the Meet the Candidates session and will give the community a good sense of the candidates’ qualifications and positions on issues.
A resident commented on the recent debate as to whether there should be doors on the library shelves. He favored no doors and suggested a more appealing labeling system to address concerns about the appearance of the shelves. A representative from the Library Committee reported on the work underway to improve the appearance and organization of the library, to include a new labeling system.
ADJOURNMENT:
Ms. Kielty adjourned the meeting. [Time of the meeting not listed.]
The initial draft of these minutes was prepared by Yasmin Santiago.
Respectfully Submitted,
Charles Bressler
Secretary, Board of Directors
Sunday, June 12, 2011
Open Letter to Charles Bressler & Other Comments
Here are a series of comments generated by a letter written by Charles Bressler to members of the Elizabeth Condominium Association regarding the recent ECA Board action that reconfigured the officers. Because Mr. Bressler's letter attacked various sitting Board Members, that letter was not published on this blog. I will add other comments to this post as I receive them, provided the comments adhere to a civil exchange.
#1
FROM Wally Manheimer:
This is intended as an open letter to Charles Bressler and the board and to other residents of The Elizabeth in response to Charles Bressler's letter sent to many of us, dated June 8.
Dear Mr. Bressler:
I read the letter you sent out on June 8 and found it very disturbing. I think that bringing up Mr. Muller's past served no constructive purpose. The residents and owners of the Elizabeth have known about this for years, and in their wisdom have elected Mr. Muller to the board on several occasions. Regarding Ms Barth's service on the board I believe that with all the problems we are facing now, this is neither the time nor place to bring up whether renters should be able to serve on the board; perhaps that is an issue for another time, perhaps not. Ms Barth, who is a renter has been legitimately elected as a board member under the existing rules and she should be treated as any other board member.
Also the issue of the copier seems like a tempest in a teapot and I think it is terrible that this disrupted board business.
As regards Legum and Norman, I take you at your word when you said you endorsed renewal of their contract. However I also remember that when the issue arose a few years ago, you were strongly opposed to contracting with them, and believed we could continue to self manage. Self management may be fine for a new condo, but for a 40 year old building which needs significant repairs, I strongly believe expert, external management is a necessity.
As far as repairs go, you and I have spoken and I made my point to you that I think we should bite the bullet and do all the major repairs as quickly as possible. Every house or condo needs recapitalization after several decades. Since I believe it is unlikely that we will get 75% of the residents to agree to an assessment, I believe a bank loan is a good possible option, and I think that your investigating this has been a reasonable course of action. The interest rates will probably never be lower than they are now.
Most of all, I think it is irresponsible for any board member to resign. I think this action will damage our property values at The Elizabeth. I believe this would make banks reluctant to write mortgages on our property. If Seth Levine is now really moving out, and is neither an owner nor a renter, this is the only resignation the board should accept if it is offered. I think the board, and especially you and Mr. Muller should find a way to work together for the benefit of all of us. That is what you were elected to do.
Yours very truly
Wally Manheimer
Aps 1109 and 1110
#2
From Helen Secrest:
I'm fairly new here( two years) so have no axe to grind. Thank you for your thoughtful letter, with which I agree. One comment; Seth has moved out, but plans on retaining his condo. I believe Monique stayed on the Board in the same circumstances, so unless there is a written rule prohibiting this, the subject seems to be moot.
#3
From Wally Manheimer:
Thanks. I was not initially clear on whether Seth was still an owner or not. He is, so the matter is moot as you say.
Wally
#4
From Molly Frantz:
Mr. Manheimer -- Thank you for taking the time to express your views on Charles' letter.
I appreciate and understand your position on a Board member resigning. This is not a position I take lightly, but I believe it is the right action for me to take.
What took place on the 1st was very very disturbing. Without any attempt to resolve differences of opinion and/or concerns about Charles Presser's Presidency, four members of the Board undertook steps to replace him. I personally found the reasons quite questionable and believe they have not stood up to scrutiny. I believe replacing a Board Officer should only be undertaken after careful consideration by all the Board members and only for serious misconduct. To exclude any Board Member from the discussions to remove an officer says volumes either about the individual excluded, the individual(s) doing the excluding, or both.
What has taken place is like a marriage gone bad -- once trust is broken the relationship is never the same and the parties have to decide if the new paradigm is worth the effort and do the parties have good intentions going forward. The bottom line is that it has been made abundantly clear to me that I could occupy a seat on the Board but I would not occupy a role on the Board. I believe Seth, Al, Judi and Ilo-Mai hold the key to achieving what you want from a Board for the Elizabeth Condominium.
If you would like to discuss this further please call me.
Molly Frantz
#5
From Jim Jones:
Dear owners and members of The Elizabeth Condominium Association:
The letter of June 8 recently circulated by Charles Bressler, President of our Board of Directors until recently, is rightly causing some concern. I share that concern. However, unlike that of some others, my concern focuses on what the letter says, not on the fact that it publicly says them. I find the content of the letter—its relation of events—accurate. It is devoid of character assassination, in a milieu where motives to assassinate exist. If facts assassinate, then so be it. The truth often hurts.
As those who have read the letter now know, it provides a stark window on serious tensions within the new Board that took office on May 4, 2011, the day of our annual meeting. On the evening of that day, the new Board sat for the first time to elect its officers. Yet less than one month later, that Board delivered a “coup” resulting in a re-designation of officers.
The letter gives some idea of how this reversal came about, and why two newly elected members and one continuing member have indicated that they will officially tender their resignations from the Board on June 20th, the date of the next monthly meeting.
The chain of events engendered by this reversal, while legal in only the most primitive way, makes a mockery of any pretense to democracy and self-representation in our community. The reversal is not only highly irregular, but tilts toward the unethical, if not the sleazy. It should trouble all of us who own units in The Elizabeth.
I think that those who voted by secret ballot to remove Mr. Bressler should have the integrity to tell the community, one by one in an open Board session, their reasons for doing so. They should do so at the forthcoming Board meeting on June 20. They owe this to those who elected them, for they have lost credibility with many of us.
I see two possibilities for addressing this unfortunate state of affairs. First, as the letter points out, the ideal would on the one hand be for the re-designated Board to restore the slate of officers who were selected on May 4th. On the other hand, given what has happened, this may not be workable, with the “gang of four” who engineered the coup able to veto any measure for any reason, including reasons that have nothing to do with decisions in the best interest of our community.
Second, since it is unlikely that such a restoration will happen, or would be viable if it did, all Board members should have the decency to resign, and thereby open the door to new elections.
I would like to make two final points before closing. Bressler’s letter makes mention of changes in the By-Laws. Those were drafted more than 35 years ago, with some sections poorly written and ambiguous. Revising this outdated document should be part of modernizing The Elizabeth. I strongly agree with Bressler, for example, that only owners should be allowed to serve on the Board. Non-owners simply lack the fiscal incentive to act in the best interests of owners.
I have heard a lot of recent verbiage about property values. I have not heard a balancing concern about the quality of life for those of us to whom The Elizabeth is a home. It is not a stock or a mutual fund to be traded on financial markets, but rather a comfortable place where we can pass our days on this earth. And it should be a safe and secure place for us all, and a place where we can confidently raise our children, or receive visits from our grandchildren. And I might add that comfort and quality of life have a lot more to do with sound infrastructure—heating and cooling, for example—than with lavish and excessively costly refurbishment.
Let’s be candid. The results of the last Board election were not as some owners expected or wanted. The results have left lingering tensions and a residue of ill feeling. I suspect that this residue relates to the chain of events that Bressler describes. At this point, I need to be convinced otherwise.
Sincerely—Jim Jones, Unit #307
#6
From Sharon Bobb:
I agree with Mr. Manheimer’s response to Mr. Bressler as modified by Ms. Secrest’s email below. I see no reason for Mr. Levine to consider leaving the Board. As I understand it, he is keeping his condo here and is looking for a larger one to accommodate his new “family.” His move across the street is only temporary so he can be with his new “family” until he can purchase a larger condo in our building. Bringing this issue up is ridiculous! I fully agree with Mr. Manheimer on all other points.
Mr. Bressler explained to me that the Board took only one action during Executive Session on June 1 – to replace him as President of the Board. He further explained that he chose to resign from the Board; that this was not an action the Board took. Furthermore, Mr. Bressler also made clear that the Board took no action against Ms. Frantz or Dr. Cockburn – they chose to resign in sympathy with Mr. Bressler. So, to repeat, the Board took one action and one action only – to replace Mr. Bressler.
If the Board chooses its officers, it can surely choose new ones if it feels it is necessary to do so. According to the By Laws, the Board can do that with or without cause. Apparently, it did so without cause. Therefore, the Board had to elect a replacement. It elected Mr. Levine to replace Mr. Bressler, and Dr. Muller to replace Mr. Levine as VP. And, since the By Laws allow the positions of Secretary and Treasurer to be filled by the same person, it elected Ms. Harding to be Secretary and Treasurer. The Board then issued a new list of officers. The Board did not engage in name-calling. It did not spread vicious allegations about anyone.
As I told Mr. Bressler, I am against his circulating a petition. It is divisive and destructive. Mr. Bressler may be hurt – even angry – that he is no longer President. However, I find it impossible to justify the mean-spirited, vicious, vindictive letter that Mr. Bressler is circulating. Name-calling that amounts to character assassination, attempting to remove sitting Board members, fomenting discontent, attempting to divide our residents and asking them to choose sides – what on earth is going on here? All of this because he no longer carries the title of President? This is a disgrace!
None of us knows what really went on in Executive Session on June 1. Those meetings are confidential. We only have one side of the story. Whatever went on was between the Board and Mr. Bressler, and I, for one, resent being dragged into it by hateful notes slipped under my door or by divisive petitions being circulated. I especially resent efforts by anyone to use the events on June 1 as cause to damage our quality of life in the Elizabeth and what little sense of community we still have.
Mr. Bressler, as I see it, had only two responsible choices on June 1: to stay on the Board as a Director and continue to work on our behalf, or to walk away quietly. He chose to resign, followed by Ms. Frantz and Dr. Cockburn. If this is their choice, they, too, should walk away quietly. Most of us choose to live in peace and harmony, and to work to upgrade our home, enhance our property values, and improve our quality of life!
The Board should now choose three more people to add to their team – a team that will work together amicably, with demonstrated respect for each other, for Legum & Norman and for the residents.
Sharon Bobb
#1
FROM Wally Manheimer:
This is intended as an open letter to Charles Bressler and the board and to other residents of The Elizabeth in response to Charles Bressler's letter sent to many of us, dated June 8.
Dear Mr. Bressler:
I read the letter you sent out on June 8 and found it very disturbing. I think that bringing up Mr. Muller's past served no constructive purpose. The residents and owners of the Elizabeth have known about this for years, and in their wisdom have elected Mr. Muller to the board on several occasions. Regarding Ms Barth's service on the board I believe that with all the problems we are facing now, this is neither the time nor place to bring up whether renters should be able to serve on the board; perhaps that is an issue for another time, perhaps not. Ms Barth, who is a renter has been legitimately elected as a board member under the existing rules and she should be treated as any other board member.
Also the issue of the copier seems like a tempest in a teapot and I think it is terrible that this disrupted board business.
As regards Legum and Norman, I take you at your word when you said you endorsed renewal of their contract. However I also remember that when the issue arose a few years ago, you were strongly opposed to contracting with them, and believed we could continue to self manage. Self management may be fine for a new condo, but for a 40 year old building which needs significant repairs, I strongly believe expert, external management is a necessity.
As far as repairs go, you and I have spoken and I made my point to you that I think we should bite the bullet and do all the major repairs as quickly as possible. Every house or condo needs recapitalization after several decades. Since I believe it is unlikely that we will get 75% of the residents to agree to an assessment, I believe a bank loan is a good possible option, and I think that your investigating this has been a reasonable course of action. The interest rates will probably never be lower than they are now.
Most of all, I think it is irresponsible for any board member to resign. I think this action will damage our property values at The Elizabeth. I believe this would make banks reluctant to write mortgages on our property. If Seth Levine is now really moving out, and is neither an owner nor a renter, this is the only resignation the board should accept if it is offered. I think the board, and especially you and Mr. Muller should find a way to work together for the benefit of all of us. That is what you were elected to do.
Yours very truly
Wally Manheimer
Aps 1109 and 1110
#2
From Helen Secrest:
I'm fairly new here( two years) so have no axe to grind. Thank you for your thoughtful letter, with which I agree. One comment; Seth has moved out, but plans on retaining his condo. I believe Monique stayed on the Board in the same circumstances, so unless there is a written rule prohibiting this, the subject seems to be moot.
#3
From Wally Manheimer:
Thanks. I was not initially clear on whether Seth was still an owner or not. He is, so the matter is moot as you say.
Wally
#4
From Molly Frantz:
Mr. Manheimer -- Thank you for taking the time to express your views on Charles' letter.
I appreciate and understand your position on a Board member resigning. This is not a position I take lightly, but I believe it is the right action for me to take.
What took place on the 1st was very very disturbing. Without any attempt to resolve differences of opinion and/or concerns about Charles Presser's Presidency, four members of the Board undertook steps to replace him. I personally found the reasons quite questionable and believe they have not stood up to scrutiny. I believe replacing a Board Officer should only be undertaken after careful consideration by all the Board members and only for serious misconduct. To exclude any Board Member from the discussions to remove an officer says volumes either about the individual excluded, the individual(s) doing the excluding, or both.
What has taken place is like a marriage gone bad -- once trust is broken the relationship is never the same and the parties have to decide if the new paradigm is worth the effort and do the parties have good intentions going forward. The bottom line is that it has been made abundantly clear to me that I could occupy a seat on the Board but I would not occupy a role on the Board. I believe Seth, Al, Judi and Ilo-Mai hold the key to achieving what you want from a Board for the Elizabeth Condominium.
If you would like to discuss this further please call me.
Molly Frantz
#5
From Jim Jones:
Dear owners and members of The Elizabeth Condominium Association:
The letter of June 8 recently circulated by Charles Bressler, President of our Board of Directors until recently, is rightly causing some concern. I share that concern. However, unlike that of some others, my concern focuses on what the letter says, not on the fact that it publicly says them. I find the content of the letter—its relation of events—accurate. It is devoid of character assassination, in a milieu where motives to assassinate exist. If facts assassinate, then so be it. The truth often hurts.
As those who have read the letter now know, it provides a stark window on serious tensions within the new Board that took office on May 4, 2011, the day of our annual meeting. On the evening of that day, the new Board sat for the first time to elect its officers. Yet less than one month later, that Board delivered a “coup” resulting in a re-designation of officers.
The letter gives some idea of how this reversal came about, and why two newly elected members and one continuing member have indicated that they will officially tender their resignations from the Board on June 20th, the date of the next monthly meeting.
The chain of events engendered by this reversal, while legal in only the most primitive way, makes a mockery of any pretense to democracy and self-representation in our community. The reversal is not only highly irregular, but tilts toward the unethical, if not the sleazy. It should trouble all of us who own units in The Elizabeth.
I think that those who voted by secret ballot to remove Mr. Bressler should have the integrity to tell the community, one by one in an open Board session, their reasons for doing so. They should do so at the forthcoming Board meeting on June 20. They owe this to those who elected them, for they have lost credibility with many of us.
I see two possibilities for addressing this unfortunate state of affairs. First, as the letter points out, the ideal would on the one hand be for the re-designated Board to restore the slate of officers who were selected on May 4th. On the other hand, given what has happened, this may not be workable, with the “gang of four” who engineered the coup able to veto any measure for any reason, including reasons that have nothing to do with decisions in the best interest of our community.
Second, since it is unlikely that such a restoration will happen, or would be viable if it did, all Board members should have the decency to resign, and thereby open the door to new elections.
I would like to make two final points before closing. Bressler’s letter makes mention of changes in the By-Laws. Those were drafted more than 35 years ago, with some sections poorly written and ambiguous. Revising this outdated document should be part of modernizing The Elizabeth. I strongly agree with Bressler, for example, that only owners should be allowed to serve on the Board. Non-owners simply lack the fiscal incentive to act in the best interests of owners.
I have heard a lot of recent verbiage about property values. I have not heard a balancing concern about the quality of life for those of us to whom The Elizabeth is a home. It is not a stock or a mutual fund to be traded on financial markets, but rather a comfortable place where we can pass our days on this earth. And it should be a safe and secure place for us all, and a place where we can confidently raise our children, or receive visits from our grandchildren. And I might add that comfort and quality of life have a lot more to do with sound infrastructure—heating and cooling, for example—than with lavish and excessively costly refurbishment.
Let’s be candid. The results of the last Board election were not as some owners expected or wanted. The results have left lingering tensions and a residue of ill feeling. I suspect that this residue relates to the chain of events that Bressler describes. At this point, I need to be convinced otherwise.
Sincerely—Jim Jones, Unit #307
#6
From Sharon Bobb:
I agree with Mr. Manheimer’s response to Mr. Bressler as modified by Ms. Secrest’s email below. I see no reason for Mr. Levine to consider leaving the Board. As I understand it, he is keeping his condo here and is looking for a larger one to accommodate his new “family.” His move across the street is only temporary so he can be with his new “family” until he can purchase a larger condo in our building. Bringing this issue up is ridiculous! I fully agree with Mr. Manheimer on all other points.
Mr. Bressler explained to me that the Board took only one action during Executive Session on June 1 – to replace him as President of the Board. He further explained that he chose to resign from the Board; that this was not an action the Board took. Furthermore, Mr. Bressler also made clear that the Board took no action against Ms. Frantz or Dr. Cockburn – they chose to resign in sympathy with Mr. Bressler. So, to repeat, the Board took one action and one action only – to replace Mr. Bressler.
If the Board chooses its officers, it can surely choose new ones if it feels it is necessary to do so. According to the By Laws, the Board can do that with or without cause. Apparently, it did so without cause. Therefore, the Board had to elect a replacement. It elected Mr. Levine to replace Mr. Bressler, and Dr. Muller to replace Mr. Levine as VP. And, since the By Laws allow the positions of Secretary and Treasurer to be filled by the same person, it elected Ms. Harding to be Secretary and Treasurer. The Board then issued a new list of officers. The Board did not engage in name-calling. It did not spread vicious allegations about anyone.
As I told Mr. Bressler, I am against his circulating a petition. It is divisive and destructive. Mr. Bressler may be hurt – even angry – that he is no longer President. However, I find it impossible to justify the mean-spirited, vicious, vindictive letter that Mr. Bressler is circulating. Name-calling that amounts to character assassination, attempting to remove sitting Board members, fomenting discontent, attempting to divide our residents and asking them to choose sides – what on earth is going on here? All of this because he no longer carries the title of President? This is a disgrace!
None of us knows what really went on in Executive Session on June 1. Those meetings are confidential. We only have one side of the story. Whatever went on was between the Board and Mr. Bressler, and I, for one, resent being dragged into it by hateful notes slipped under my door or by divisive petitions being circulated. I especially resent efforts by anyone to use the events on June 1 as cause to damage our quality of life in the Elizabeth and what little sense of community we still have.
Mr. Bressler, as I see it, had only two responsible choices on June 1: to stay on the Board as a Director and continue to work on our behalf, or to walk away quietly. He chose to resign, followed by Ms. Frantz and Dr. Cockburn. If this is their choice, they, too, should walk away quietly. Most of us choose to live in peace and harmony, and to work to upgrade our home, enhance our property values, and improve our quality of life!
The Board should now choose three more people to add to their team – a team that will work together amicably, with demonstrated respect for each other, for Legum & Norman and for the residents.
Sharon Bobb