On September 19,
in accordance with Section 11.109.1 of the Maryland Condominium Act, the Board
met in executive session.
Call to Order: Mr.
Ariev called the meeting to order at 7:34 p.m.
Approval of Meeting Minutes:
MOTION Mr. Schattman moved, Mr. Bressler seconded
that the amended minutes of the meeting of the board of directors on September
19, 2012 be approved. The motion passed
unanimously (7-0-0).
President’s Report:
Mr. Ariev reviewed
a financing plan for the maintenance, repair and replacement program. Board
members, Management and Walter Mendoza met with Joe Felton of Montgomery County
Dept. of Permits in the past week to discuss the fire protection agreement. An
attorney will draft the agreement and a consulting engineer is providing the minutes
of that meeting. Mr. Santos will present a services agreement with Mr. Mendoza.
Mr. Ariev thanked the social committee for organizing the brunch held last
Sunday, which had about 40 people in attendance. Mr. Ariev further thanked Ms.
Powell for her contributions to the Elizabeth and for helping with the brunch.
Mr. Ariev stated
that Jim Rich will replace Joan Rosenbach as Energy Committee Chair. Mr. Rich
will investigate issues such as solar and other alternative energy systems.
Treasurer’s Report:
The amounts
included herein are rounded to the nearest $1,000. As of 30 September, the Association had
$2,806,000 in cash and investments, an increase of $206,000 from the prior
month. The Replacement Reserve Fund at
the end of September was $2,295,000, an increase of $121,000 from the prior
month.
Expenditures
from the Reserve Fund in September totaled $4,000. The amount expended from
that Fund so far this fiscal year is $57,000.
Delinquencies through the end of September were $58,000. Six accounts
are in collection, including two that are in bankruptcy. Copies of the Balance Sheet and Statement of
Income and Expenses as of 30 September are available at the front desk.
Respectfully
submitted: John C. McNerney
Management Report:
Mr. Santos
stated that the current work order delinquency is $946.50 of which $634.50 is
at or greater than 60 days. He also provided updates on the following building
operations:
1)
The
structural engineer, Wiss, Janney & Elsner has selected a contractor for
inspection/repair in the penthouse and 2 water intrusion matters.
2) Approval is needed from the Board to
replace a roof exhaust fan.
3) A request has been made from a private
school to use the indoor swimming pool for a physics experiment. A student who
lives in the building recommended the building pool.
4) A response from the Public Service Commission
(PSC) was received, which Mr. Santos did not find satisfactory. Mr. Santos has
appealed their findings, with supported consumption history and requested for
money to be refunded to the Elizabeth. Mr. Santos also requested that the meter
be replaced and monthly invoices be provided.
5) Mr. Santos has requested that the hoist motor
elevator work be postponed until after January 1, 2013 so as not to
inconvenience residents during the holidays.
6) Residents have reported the work by Ecobeco
to be positive. About 80-82 residents have participated in the program.
7) Board action is needed on implementing
the Maintenance, repair and Replacement Program and financing.
8) Mendoza consulting engineers are developing
a proposal for specifying 2 alternative fan coil units for every unit along
with suggested contractors.
9) Board action is needed for the Mendoza
consulting Engineers “Fire Protection Agreement” services.
1) Position descriptions have been reviewed,
with participation from management. Board approval is needed.
1) Tax return form 7004 has been filed from
auditor, DeLeon & Stang.
Old Business: Board members were provided a resolution
worksheet that shows the structural engineer identifying C.A. Lindman as a
contractor to set up scaffolding for repairs. It will be most cost efficient to
have the company do the repairs. The penthouse work will not exceed $20,000,
and cost to repair water intrusion in two units is not to exceed $9,500. The
cost of materials and mobilization is not to exceed $4,000.
MOTION
Mr. Schattman moved, Mr. Bressler seconded to approve C.A.
Lindman, as identified by the structural engineer to make repairs on the
penthouse and specified units. The motion passed unanimously (7-0-0).
New Business:
Approval of
Maintenance, Repair and Replacement Program Implementation and Financing Plans:
MOTION Mr. Ariev moved, Mr. Bressler seconded that the Project Implementation
Plan (Doors and Windows in Three Years) and the Financing Plan (doors and
windows in three years), both revised 10/18/12, attached, are approved in
concept. The plans are based on Appendix D Capital management Plan included in
the Elizabeth Condominium Condition
Assessment prepared by Wiss, Janney, Elstner Associates, Inc. dated July 3,
2012 and the Table: Equipment life Expectancy and Replacement Costs included in
the MEP Engineering Condition Assessment
Report for the Elizabeth Condominiums prepared by Mendoza, Ribas, Farinas
& Associates dated August 2012 and provided to the ECA as sections of the
Executive Summaries and Condition Assessments publications dated July 16, 2012.
Modifications have been made to correct errors, redundancies and format, to
provide for the installation of the doors and windows in the first three years,
and the Corridor Renovations to be completed in the fourth year.
The contracts
for design and engineering, and the construction of the tasks noted in the
Project Implementation Plan must be approved by the Board as individual tasks,
or may be assembled as a group of tasks, requiring related construction skills,
at the discretion of the Board.
The Project
Implementation Plan and the Financing Plan shall be considered in the
preparation of the annual Operating and Capital Budget and will be reviewed by
the Board annually at its membership meeting in May. The Project Implementation
Plan may be modified consistent with the evolving capital needs of the
Association, and the Financing Plan modified consistent with changes in the
assumptions noted in the Financing Plan, i.e., the inflation rate, loan interest
rates, loan terms, etc.
Mr. Ariev
invited residents to comment prior to the Board voting:
-Jim Jones, Unit
307, encouraged the Board to move forward on the plan and thanked the Board.
- Joe Salcetti,
Unit 319, stated that this work needs to be done and asked the Board to move
ahead with the project.
-Al Muller, Unit
411, thanked the Board for coordinating the project and financing. He also
asked for the opinion of the treasurer and vice treasurer.
-Jim Rich, Unit
301, thanked the Board for getting to this point, and asked for a snapshot of
each board member’s opinion before or after the vote.
-Pat Lawson,
Unit 1619 asked if contractors will measure the windows since there are many different
sizes. Mr. Ariev stated that measuring will be done, and the whole project will
be a major effort.
-Mr. Bamji, Unit
707, asked how long window and door replacement will take in each unit. Mr.
Ariev answered that he cannot yet give an estimate, but as the work proceeds,
the Board will report back.
-Peg Downey,
Unit 615, expressed that it would be better to get the work done in three years
instead of stretching it out. There will be substantial savings from having
better windows and doors and better relationships in the buildings from having
concerns addressed.
-Maurice Trebach,
Unit 1407 asked if the work will be done by floor or tier. Mr. Ariev replied
that is not yet known.
-Alexander Kielty,
Unit #1121, thanked the Board for taking on this task, and asked how the
contracting process will proceed. Mr. Ariev stated that this will have to be
discussed with the engineers as it will be a very complicated task. The Board
will bring answers back to residents once it knows more.
-Karren Alenier,
Unit 301, expressed confidence in Wiss, Janney, Elstner Associates and
encouraged the Board to move forward.
The Board
further discussed the motion. Mr. Schattman stated that he agrees in principle with
the motion, but questioned some of the numbers. For example, $150,000 is
allocated per year for 10 years for miscellaneous expenditures. This is a total
of $1.5 million, which seems excessive. He suggested that if the full $150,000
is not used in a year, another $150,000 should not be appropriated for the second
year. Mr. Ariev stated that the financing plan is an evolving document, and
will change once loan terms are set. He further stressed that this is a guide,
and if $150,000 is not spent, it will roll into the next year. Mr. Schattman expressed concern that the Board
will end up spending the available funds on unnecessary items. Mr. Ariev
stressed that the Board will need to act responsibly to prevent this from
occurring. Mr. Bressler expressed that it is a good idea to have extra funds
available for unexpected costs.
Mr. Stekler made
some additional points to consider about how proposals come to the Board. He
suggested that:
1) The Board
should meet in open workshop to discuss the projects as outlined in various
reports.
2) The Board
should then determine the criteria for setting priorities.
3) The Board
should prioritize the projects.
4) Highest
priority projects should be implemented with the available resources.
5) The Board
should recommend to future boards suggestions for timing of projects.
Mr. Bressler
stated that the Association attempted this when it paid for the Mendoza report
10 years ago, and no action was taken. Ms. Harding stated that this work has
been discussed for many years, and it is time to stop discussing it or it will
never get done. Dr. Robinson noted that a survey was sent to residents, which
came back in favor of doors and windows being replaced first.
Mr. McNerney
stated that if the work was stretched out beyond five years, the Association
could probably do all of the work without borrowing money. If renovation is accelerated, doors and
balconies could be done in years 1 and 2, windows in years 3 and 4, and
corridors in year 5. There would be an additional $285,000 in borrowing costs
if the work is accelerated by one year. There are trade-offs to doing the work
more quickly versus less expensively. The Board has looked at interest rates at
three banks, which is around 4 percent. Rates are not expected to change in the
next 3-4 years.
Dr. Robinson
stated that he favors completing the work in 3 years.
The motion passed with Mr. McNerney
opposed. (6-1-0)
2)
Mendoza engineering proposal for Fan Coil Unit Specifications:
MOTION
Ms. Harding moved, Mr.
Schattman seconded to authorize Mendoza consulting engineers to provide specifications
of replacement fan coil units for each condominium type, potential
manufacturers, and qualified local contractors to perform replacements. The
fixed fee of services will be $19,440. The motion passed unanimously (7-0-0).
3)
Mendoza Engineering Fire Protection Agreement:
MOTION
Mr. Schattman moved, Ms.
Harding seconded to authorize Mendoza consulting engineers to provide oversight
and consulting services for development
of a fire protection agreement to be established with Montgomery County for
purposes of providing an implementation schedule for life safety systems, not
to exceed $4,500. The motion passed unanimously (7-0-0).
4)
Resolution to approve ECA staff position descriptions:
MOTION
Mr. Ariev moved, Dr.
Robinson seconded to approve the position descriptions for staff-lead building
engineer, assistant building engineer, senior maintenance specialist,
maintenance specialist, concierge and custodian. The motion passed unanimously
(7-0-0).
5)
Roof exhaust fan:
MOTION
Mr. Stekler moved, Mr.
Schattman seconded to approve the removal of the failed exhaust fan of a single
tier at a cost of $3,728. The motion passed unanimously (7-0-0).
6)
Use of swimming pool by the Maret School:
MOTION
Mr. Schattman moved, Dr.
Robinson seconded to authorize the Maret School to use the indoor pool to test
underwater remote robots. There are no parts that will contaminate the water,
and it is estimated that 1.5 hours will be needed for each of 4-5 sessions.
Management will require a lifeguard to be present, and the school will
reimburse ECA. A waiver of liability will also be required. The motion passed
unanimously (7-0-0).
Mr. Stekler made
motions with regard to amending the house rules focused on non-resident owners’
lease agreements. This included requiring leases to be for no less than 12
months, requiring owners to pay a fee of $100 every time a lease is filed in
the management office, requiring rental units to be inspected by management at
a cost of $25. These motions were not passed.
Committee Reports:
Bylaw
Committee: A breakfast
will be held on October 28th for absentee owners to discuss the
revision of wording for the amendment. So far, RSVPs have been received from 10
owners.
Energy
committee: Jim Rich
reported that small events were held to encourage residents to sign up for Eco Beco
services.
Exercise/Fitness
Committee: Mr. Schattman
provided an overview of the committee, comprised of himself, Robin Schattman,
Jim Jones and Alexandra Kielty. There is no budget and no regular meetings are
held. The committee monitors the condition of the fitness center and informs
management when something breaks. Some older equipment is broken, and will be
replaced when finances allow.
Library Committee: surveyed the building
to find residents fluent in other languages. There is now a foreign language
section in the library.
Making a
Difference: A party is
planned for November 16 for children ages 4-11. The children will decorate
wrapping paper to use by residents on December 1 for the box party, when boxes
will be filled with toiletries for the homeless. Last year 317 boxes were
donated. Shoe boxes can be left at unit 615.
Social
Committee: A committee
meeting will be held on Thursday, October 25th in the library. A
Halloween party will be held on Oct. 31 for children up to age 13. A wine and
cheese reception will be held on November 11 for new residents. The holiday
party is planned for December 16th.
Newsletter: News items can be submitted for
December. There will be no issue in January.
Resident
Comments:
-Jim Rich, Unit
301, complimented the Board on a good meeting. He also noted that he planted a container
of mint outside, and all are welcome to it.
-Joan Rosenbach,
Unit 1517, noted that the energy committee will consider the possibility of
changing from mass to individual metering to conserve energy.
-Mr. Santos
stated that he needs assistance with maintaining the Website.
-Mr. McNerney
addressed what to do with the maturing CDs. Since the Board voted to complete
the windows and doors in 3 years, the Association cannot afford to tie up these
funds. There are 2 CDs: $250,012 matures 10/31/12 with the Bank of India;
$25,000 matures 11/2 with the Bank of Baroda.
MOTION Mr. Ariev moved that $275,012 be reinvested for a 12 month
period with Morgan Stanley. The motion passed unanimously (7-0-0).
Adjournment:
The President
adjourned the meeting at 9:30 p.m., with the Board to meet immediately after
for an executive session, in concordance with section 11.109.1 of the Maryland
Condominium Act.
The initial
draft of the minutes, upon which these minutes are based, was prepared by Jana
Bowcut of On the Record.
Respectfully
submitted,
_____________________________________
Ilo-Mai Harding,
Board Secretary
