This letter from Sharon Bobb was sent to the ECA Board after the August 8, 2011 informal meeting of Board members and residents. It addresses the need for getting expert advice to prioritize our big projects before money is spent without a good strategic plan.
Last night at the informal meeting, Ms. Harding made available letters from Harkins Builders and from an internationally recognized Professional Engineer, Les Hunkele. Harkins noted that in order for the Board to make the most informed choices about the design and phasing of the facility upgrades, six engineering and architectural disciplines, at a minimum, in addition to a Construction Manager, should be involved as early as possible.
Mr. Hunkele, after careful review of the Harkins letter, explained that these disciplines are necessary to thoroughly inspect the building, develop integrated designs, and establish priorities in order for the work to be sequenced and accomplished in a cost-effective manner.
Mr. Hunkele strongly recommended that the Board invest in hiring a reputable Engineering/Architectural firm experienced in condominiums to complete a thorough inspection and study. This would be followed by an integrated design with a recommendation for priorities based on a thorough knowledge of the building and their professional experience. He urged that this be an integrated effort and made clear that anything short of that would be “throwing money away in large chunks” and “might be considered of questionable due diligence.” Moreover, Mr. Hunkele emphasized that “…attempting a program (a series of interrelated projects) of this magnitude without a detailed study and design that integrates all aspects of the program is foolish and potentially actionable by the condominium owners whom the Board represents.”
Ted Ariev, an owner for more than 25 years, and an architect and construction executive, has repeatedly called for a comprehensive overall integrated study of capital improvements needed for this building, exactly as Mr. Hunkele is recommending. We now have two professional engineers, both internationally recognized, who are strongly recommending the same thing. In the face of this professional advice, I find it unconceivable that the Board would continue to pursue the award of separate contracts for the study and design of an HVAC system, new windows and balcony doors, the swimming pool, and other items – at what total cost to the Association?
I find it equally astounding and bewildering that the Board would announce today – in the face of strong professional advice to the contrary - that it has already selected the three top priority projects and is pursuing a financing plan! I object in the strongest terms possible to my money being thrown away on any more piecemeal contracts.
The Board has a history of being “penny-wise and pound foolish.” I can no longer simply stand by and watch the Board do it yet again, at a time when we now have a building that has been neglected for decades and we are facing upwards of $8 million worth of necessary capital improvements. Further, I object to hearing Board members say that we cannot get the By-Laws revised.
We have amended the By Laws before, and as I understand, we can do it again. Revising the By-Laws would not only bring us into conformance with the Maryland Condominium Act, but would also give the Board the flexibility to provide adequate funding of all our capital improvements, including achieving an upgrade of the entire HVAC system. My understanding is that our attorney, Jason Fisher, has told the Board quite clearly that he has successfully revised By Laws for other condominium clients and that he could easily do so for us.
However, that information has not been shared with the owners. Is this the transparency the Board promised to provide? No – all the owners hear are Board members who ignore this important fact, even claiming that “we cannot change the By Laws, we will never get the votes.” By denying this important step, and hiding behind this misinformation, Board members who are against an integrated effort can pursue the $8 million worth of capital improvements piecemeal rather than handling them in the integrated fashion as two outstanding professionals have urged. This is disingenuous. Well, we have changed the By Laws before, and with Jason we can do so again. In good faith, the Board should immediately direct Jason to pursue amending the By Laws.
Therefore, I urge the Board to:
Stop any action to pursue individual contracts for any capital improvement requirement, including any that concern the HVAC study and design, new windows and balcony doors, the swimming pool and any and all other individual contracts that the Board is considering.
Enlist the advice and guidance of Ted Ariev to work closely with Jim Santos to develop an RFP and Statement of Work for an overall integrated study and design with recommendations for priorities as both Mr. Hunkele and Mr. Ariev have so strongly recommended.
Engage Jason Fisher immediately to take the necessary steps to revise the By Laws to bring us into conformance with the Maryland Condominium Act, and to give the Association the flexibility to pursue all the capital improvements in an integrated fashion as discussed above and to fund them appropriately.
I look forward to your favorable consideration of these important recommendations. It is time to do the right thing the right way!
Sharon Bobb
Wednesday, August 10, 2011
Notes from August 7 2011 "Fireside" Chat with ECA Board
Over 30 people attended the informal gathering led by Al Muller in the party room. Charles Bressler, Molly Frantz, and Ilo-Mai Harding also attended.
Some of the topics that were discussed included:
Employment of contractors by unit owners: this was a lengthy discussion. Among the many concerns raised was contractors working on weekends when there is no house manager to address problems that might arise including noise and use of the elevators.
Financing windows/balcony door replacement: According to Al Muller there are only three choices—an assessment, loan, or put off the project for four years until the reserves are built up to handle the expense. The do-nothing now option also involves raising the condo fees by 5% each of those four years. Attendees indicated by a show of hands that they would rather pay an assessment.
Need to hire an expert to prioritize major projects: Ilo-Mai Harding brought two handouts that indicate that our Mendoza report is not sufficient to prioritize the major projects in the ECA. One handout was a letter written to Jim Santos from Harkins Builders, a general contractor from Marriottsville, MD. The letter prioritizes various projects starting first with repair of the garage concrete on the G-1 level followed by replacement of windows. Ten projects are listed with the 9th project listed being balcony & exterior veneer repairs. Number four on the list was the replacement of mechanical systems which I take to mean the HVAC-McQuay project. The letter concludes by saying:
“In order for the board of directors to make the most informed choices about the design and phasing of the facility upgrades, the following disciplines (at minimum), in addition to a Construction Manager should be involved as early in the process as possible:”
The list includes: a structural engineer, an industrial hygienist, an architect/interior designer, a mechanical systems engineer, an energy consultant, and special lighting consultant.
The second handout was a memo from Lester Hunkele professional licensed engineer with numerous certifications (PE, CCM, LEED AP, F, CMAA) to the ECA Board giving his opinion on how to accomplish the daunting list of projects we are faced with. Ms. Harding requested his opinion. This engineer reviewed the Harkins letter and found a number of faults with it but said absolutely the replacement of Garage concrete at G-1 was rightly prioritized as number but he threw into doubt about whether window replacement should be number 2 over the HVAC project. He recommends that we again hire an Engineering/Architect firm to thoroughly study and recommend the order of undertaking our projects.
According to Sharon Bobb, Ted Ariav spoke to Mendoza and Mendoza said he did not do the level of detail suggested by Mr. Hunkele because the Board at that time did not ask for this level of detail.
It sounds like the logical thing to do is to hire Mendoza again, since he is familiar with our issues and already has done extensive work, so that he can provide the guidance needed.
Building security & the locked party room doors: This issue was raised at the last informal meeting of Board members with residents. Our house manager said there would be an unmonitored security risk if there was easy access through the party room doors to the patio. It isn’t that hard to get to the patio from the street. The cost for putting fob access was in the neighborhood of $2500.
Mail & package deliver problems: We continue to have problems getting our mail and packages. I suggested that if the current website is up for renewal, it is now time to look into a better service that allow for package recordation and notification by email and by paper notice. The package system recently purchased is not working.
Board performance: The Board is taking to heart that they need better skills and are looking into suggestions from the house manager for training.
If you attended the meeting and feel something else important was left out, by all means, let me know. Also I assume you can get the handouts distributed in this meeting at the management office.
Some of the topics that were discussed included:
Employment of contractors by unit owners: this was a lengthy discussion. Among the many concerns raised was contractors working on weekends when there is no house manager to address problems that might arise including noise and use of the elevators.
Financing windows/balcony door replacement: According to Al Muller there are only three choices—an assessment, loan, or put off the project for four years until the reserves are built up to handle the expense. The do-nothing now option also involves raising the condo fees by 5% each of those four years. Attendees indicated by a show of hands that they would rather pay an assessment.
Need to hire an expert to prioritize major projects: Ilo-Mai Harding brought two handouts that indicate that our Mendoza report is not sufficient to prioritize the major projects in the ECA. One handout was a letter written to Jim Santos from Harkins Builders, a general contractor from Marriottsville, MD. The letter prioritizes various projects starting first with repair of the garage concrete on the G-1 level followed by replacement of windows. Ten projects are listed with the 9th project listed being balcony & exterior veneer repairs. Number four on the list was the replacement of mechanical systems which I take to mean the HVAC-McQuay project. The letter concludes by saying:
“In order for the board of directors to make the most informed choices about the design and phasing of the facility upgrades, the following disciplines (at minimum), in addition to a Construction Manager should be involved as early in the process as possible:”
The list includes: a structural engineer, an industrial hygienist, an architect/interior designer, a mechanical systems engineer, an energy consultant, and special lighting consultant.
The second handout was a memo from Lester Hunkele professional licensed engineer with numerous certifications (PE, CCM, LEED AP, F, CMAA) to the ECA Board giving his opinion on how to accomplish the daunting list of projects we are faced with. Ms. Harding requested his opinion. This engineer reviewed the Harkins letter and found a number of faults with it but said absolutely the replacement of Garage concrete at G-1 was rightly prioritized as number but he threw into doubt about whether window replacement should be number 2 over the HVAC project. He recommends that we again hire an Engineering/Architect firm to thoroughly study and recommend the order of undertaking our projects.
According to Sharon Bobb, Ted Ariav spoke to Mendoza and Mendoza said he did not do the level of detail suggested by Mr. Hunkele because the Board at that time did not ask for this level of detail.
It sounds like the logical thing to do is to hire Mendoza again, since he is familiar with our issues and already has done extensive work, so that he can provide the guidance needed.
Building security & the locked party room doors: This issue was raised at the last informal meeting of Board members with residents. Our house manager said there would be an unmonitored security risk if there was easy access through the party room doors to the patio. It isn’t that hard to get to the patio from the street. The cost for putting fob access was in the neighborhood of $2500.
Mail & package deliver problems: We continue to have problems getting our mail and packages. I suggested that if the current website is up for renewal, it is now time to look into a better service that allow for package recordation and notification by email and by paper notice. The package system recently purchased is not working.
Board performance: The Board is taking to heart that they need better skills and are looking into suggestions from the house manager for training.
If you attended the meeting and feel something else important was left out, by all means, let me know. Also I assume you can get the handouts distributed in this meeting at the management office.
Monday, July 25, 2011
Notes from July 24 2011 "Fireside" Chat with ECA Board
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.
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.
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.