November 27, 2013 ECA Board Meeting

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting   November 27, 2012

Board Present:

Ted Ariev                        President

David Robinson..............Vice-President

John McNerney ............  Treasurer

Herman Stekler .............  Asst. Treasurer..................

Ilo-Mai Harding............... Secretary

Steven Schattman ............Director

Board Absent:
Charles Bressler                Director

Others Present:

Bill Perry ..........     .....OutgoingRegional Director, Legum & Norman
Robert Craig ..........     Regional Director, Legum & Norman
Gregory Roby.........    Senior Vice President, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman

Jana Bowcut ...............ECA Recording Secretary, On the Record

On October 23, 2012, 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 7:33 p.m.

Approval of Meeting Minutes:

MOTION         Mr. Stekler moved, Mr. Schattman seconded that the amended minutes of the meeting of the board of directors on October 23, 2012 be approved.  The motion passed unanimously (6-0-0).  

President’s Report: No Board meeting will be held in December. The next meeting will be held on January 22, 2013. Residents are needed to assist with setting up an employee holiday fund. A successful Halloween party was held, as well as a reception for new residents.  Mr. Ariev thanked Ms. Powell for her assistance with the party.  

The Board previously approved a proposal from Virginia Sprinkler Company, but will need to be voted on in open session.  Mr. Santos will address this further in his report.  

Treasurer’s Report: The following report was provided by Mr. McNerney:

The amounts included herein are rounded to the nearest $1,000. As of 31 October, the Association had $2,877,000 in cash and investments, an increase of $70,000 from the prior month.

The Replacement Reserve Fund at the end of October was $2,400,000, an increase of $106,000 from the prior month.

Expenditures from the Reserve Fund in October totaled $18,000. The amount expended from that fund so far this fiscal year is $75,000.

Delinquencies through the end of October were $62,000. Seven accounts are in collection, including two that are in bankruptcy.

Copies of the balance sheet and statement of income and expenses as of 31 October are available at the front desk.

Old Business:

MOTION        Ms. Harding moved, Mr. Schattman seconded to approve the proposal from Virginia Sprinkler Company for $7,118. The motion passed unanimously (6-0-0).  

New Business:

1) Investment of maturing CDs: There are two CDs that need to be renewed by November 30: one for $200,000 and another for $125,000.  Given that ECA may need the funds in the near future, the CDs should be for a short time period. Morgan Stanley offers short term CDs for about the same interest rate. There are also funds in the operating reserve that exceed the FDIC standard by $390,000, which should also be moved.

MOTION        Mr. Ariev moved, Mr. Stekler seconded to reinvest the funds into four separate six month CDs in the amounts of: $250,000, $200,000, $125,000 and $140,000. The motion passed unanimously (6-0-0). 

2) Contract renewal with Otis Elevator: The motor work has been suspended until after the holidays. The contract was up for renewal in March 2012, but Otis gave ECA until March 2013 to renew. Otis is offering a discount of more than 10 percent the face value of the contract. Mr. Roby stated that it is preferable to have the manufacturer of the elevator equipment be the service provider. Mr. Ariev opened the floor for discussion; Dr. Muller expressed concern about whether Otis has done an adequate job in the past.

MOTION        Mr. Ariev moved, Mr. Stekler seconded to approve a contract renewal with Otis Elevator for elevator maintenance at a cost of $32,000 per year for five years. The motion passed unanimously (6-0-0).

3) Wiss Janney, Elstner design/supervision services:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Wiss, Janney and Elstner to perform design services and construction supervision services for installation of roof anchor system, for the amount of $15,000, which includes reimbursable expenses. The motion passed unanimously (6-0-0).

MOTION        Mr. Schattman moved, Mr. Stekler seconded to authorize Wiss, Janney & Elstner to perform design services and construction supervision services for condominium window replacement, sliding glass door replacement, balcony deck modifications and limited façade maintenance in accordance with tier proposal dated November 9, 2012 for $315,000 which includes allowance for reimbursable expenses at each phase of contract and an estimate for construction period services. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize Wiss, Janney and Elstner to perform general design services and construction supervision services for any future projects relating to the July 2012 condition assessment or issues encountered during annual operations. All services will be provided on a time and expense basis using the standard rate schedule for WJE professional staff . The motion passed unanimously (6-0-0).

4) Mendoza services:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas and Associates Consulting Engineers to provide mechanical, plumbing and electrical engineering services as requested by the Board or Management as needed. All services will be provided on a time and expense basis using the standard rate schedule for MRF&A professional staff. The motion passed unanimously (6-0-0).  

MOTION        Mr. Ariev, moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for New Garage Ventilation Fans and Carbon Monoxide Detection System for the amount of $17,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of all existing roof fan assemblies, in the amount of $16,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of existing York Chiller with associated condenser and chilled water pumps, in the amount of $35,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Ms. Harding seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of low zone water pumps and hot water recirculating pumps, in the amount of $13,000. The motion passed unanimously (6-0-0).   

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of a sump pump and sewage ejector pump, in the amount of $8,000. The motion passed unanimously (6-0-0).

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for replacement of existing fire alarm control panel, annuciator panel, and all devices as well as integration with Arcade business spaces, for the amount of $31,000. The motion passed unanimously (6-0-0).

MOTION         Mr. Ariev moved, Mr. Stekler seconded to authorize Mendoza, Ribas, Farinas and Associates Consulting Engineers to provide design engineering services and construction administration for installation of refrigerant evacuation system, new compressor controls and ventilation for penthouse mechanical room, for the amount of $7,000. The motion passed unanimously (6-0-0).

5) Roof repairs:

MOTION        Mr. Ariev moved, Mr. Schattman seconded to authorize Weatherproofing Technologies, inc. to perform roof repairs indentified from engineer condition assessment and management inspection for the amount of $9,650. The motion passed unanimously (6-0-0).  

6) Sign Installation: One of the condominium commercial owners in the building, ASAM, has requested the installation of a small directional sign to hang on common area wall on the first floor to direct visitors. This would be done at their own expense.

MOTION        Mr. Ariev moved, Mr. Schattman seconded
 tabling the issue until board members could survey the exact area before voting. The motion passed unanimously (6-0-0).

7)  Fund Authorization for Social Committee:

MOTION        Mr. Ariev moved, Mr. McNerney seconded to authorize the social committee to use $6000 for the annual holiday party on December 16, 2012. This falls within the approved annual budget for this activity. The motion passed unanimously (6-0-0).  

8) Travel Expenses: Mr. Santos read the following new policy:

It is the policy of the Elizabeth Condominium Association that, effective November 27, 2102, residents and staff who incur transportation costs on behalf of the Elizabeth shall be reimbursed. Public transportation will be reimbursed on the basis of the actual cost incurred. Reimbursement for the use of personal vehicles will be at the current adjusted Federal vehicle mileage rate, in addition to actual parking, tolls and other costs.

To receive reimbursement, residents and staff will submit a completed Expense Report form, available at the Management office, to the General Manager.

9) Other Items: Mr. Santos stated that management contacted the Public Service Commission (PSC) regarding management’s rebuttal letter. PSC is to contact Washington Gas for a response. A project involving securing Verizon fiber optic cables is completed. If there are any Ecobeco needs, residents should inform Mr. Santos or Ms. Powell.  

Community Manager’s Report: Mr. Roby complimented the Board and the Association on the approval of so many projects. Mr. Roby also announced that Mr. Perry will be leaving Legum and Norman, and Mr. Robert Craig will be replacing him. He also thanked Mr. Santos for his work. Mr. McNerney thanked Mr. Perry, as he has been his contact for financial reports, and he has been very responsive and helpful.

Committee Reports:

Making a Difference: Peg Downey reported that the wrapping paper party with the children was a success. She invited residents to come on Saturday for the box party to help fill and wrap boxes.  

Personnel Handbooks: Dr. Robinson stated that the position descriptions have been approved by the Board. An employee handbook is in progress. 

Social committee: The recent Halloween party was a great success with about 40 children in attendance along with their parents. A wine and cheese party for new residents was held on November 11.  The holiday party will be held on Dec. 16, which is for residents only. 2013events are in the planning stages.

Resident Comments:

-Judy Gann asked when the red hair salon signs will be addressed. Mr. Ariev responded that the Board will be discussing the more general sign issue.  

-Molly Frantz inquired about damage done to the building from the hurricane. Mr. Santos stated that one apartment on the 18^th floor had the most damage. Sandbags were used to prevent water damage, and about 2 dozen apartments had water intrusion around their windows.  

-A resident expressed concern about the change in by-laws. Mr. Ariev stated that Mr. Bressler held a gathering, with less than 10 non-resident owners attending. Early in the spring, there will be a special meeting to address the by-law amendments.  

-Dr. Muller congratulated the Board on its success. However, he expressed concern about the need for a bank loan, and asked Mr. Roby what he has advised other condominium associations with regard to a minimum of reserves to have on hand. Mr. Roby stated that it varies on the building, but an association should have enough money in the bank to cover complete replacement of major systems. Typically, for a $6 million operational budget, treasurers aim to keep reserves above $1.2 million. Dr. Muller expressed concern that according to the financial summary that reserves dipped way below that amount, in future years, and that the Board needs to ensure a good safety net.  

-Maurice Trebach stated that proxies cannot be accepted in changing the by-laws. Mr. Ariev stated that the attorney has advised ECA that proxies will be acceptable, but he will check with the attorney again.  

-A resident recommended that the budget of every committee should be widely known, and she was opposed to having signs up in the hallways.

Adjournment:

The President adjourned the meeting at 9:00 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

Highlights from ECA Issues Workshop on January 8, 2013

Present: Directors: Ted Ariev, Charles Bressler, Ilo-Mai Harding, John McNerney, David Robinson, Steven Schattman, Herman Stekler, ECA General Manager Jim Santos

The purpose of this meeting was for ECA Board members to discuss various issues in a relaxed setting. Board members as a group are not allowed to meet except in public forum. This meeting was not to resolve issues but just to discuss them.

Discussed were the following topics:

Building security

Storage

New and creative financing possibilities

Two new steering committees (one to support the Treasurer and the other as oversight on architectural design)

Raising number of rental units

Bylaw amendment changes

Hallway remodeling contract

Cleaning up the Arcade

Garage trash

Hiring building security guards is expensive and not a service we need all the time. Ilo-Mai Harding suggests we get more cameras. Charles Bressler is concerned with garage security. Board members are concerned about an unofficial member of our community who sits on our property and is aggressive toward residents of the Elizabeth.

Storage in the Elizabeth seems to be at capacity and contains items that should not be there like furniture and tires. Some Board members suggest that there are many abandoned items and that we need to establish a policy for cleaning house. Garage trash falls into this line of discussion also with things placed in parking spaces that are not supposed to be there.

President Ted Ariev discussed two new committees to support ongoing work for the Association. One is a financial committee to support the duties of the Treasurer. The committee members are John McNerney (Chair), Peg Downey and Joe Salcetti. The other committee, the architectural control committee, is led by David Robinson and includes Peg Downey, Jim Jones and Lyn Thayer.

Creative financing might include the option of paying one’s condo fees for the whole year. The benefits would be that the condo owner could pay at the old condo rate and the ECA would have benefit of significant money early in the year to defray new project costs. There is another creative financing option that involves buying into a bond that would pay between 3-5% interest. The investment level might be at $10,000. The bond would help pay for our big improvement projects without borrowing.

Rental units are now over 30% and growing rapidly. This is an issue of concern for many reasons but will eventually affect property values. The Board would like to put a cap on how many units can be rented as the Carleton does across the street. The industry standard is about 35%. To make this kind of bylaw change requires 75% agreement, which is next to impossible to achieve.

Bylaw amendment to effect bylaw amendment change agreement from 75% to 66 2/3% still has not been brought to a vote. Renewed efforts will be led by Charles Bressler to get the votes needed to make this change.

The hallway renovation project has seen something like $44,000 paid to the Phyllis Hartman Group with no satisfactory plan. If Hartman Group comes back to finish the job, what additional money would be charged. The Board needs to follow up on this contract and see what is possible for completion of the work.

Cleaning up the arcade would include replacing the ceiling and installing new lighting.

On Sunday January 13, the residents and owners are invited to the party room at 7 pm to discuss any of the issues mentioned above or any new items.

Summary of November 27, 2012 ECA Board Meeting

Present: Directors: Ted Ariev, Ilo-Mai Harding, John McNerney, David Robinson, Steven Schattman, Herman Stekler, ECA General Manager Jim Santos,   Legum & Norman Community Manager Greg Robey, Legum & Norman Regional Manager Robert Cray, recording secretary

Absent: Charles Bressler

Highlights of the meeting:

Major Project Improvements:  Board approved design and engineering contracts for the initial tasks listed in the consultants' Condition Assessments and the subsequent Project Implementation Plan. 

Wiss, Janney, Elstner awarded contracts for bid document preparation and contract administration related to repair/replacement of balcony surfaces, doors, and windows. President Ariev gave the honor of making the motion to Maurice Trebach who brought the idea of window and balcony door replacement to the sitting ECA board many years ago.

Mendoza, Ribas, Farinas awarded contracts for bid document preparation and contract supervision services related to mechanical, electrical, and plumbing elements of the building.

These bid documents prepared by these two engineering firms will be sent to preselected contractors. Then the Board will select the contractor offering the best value to meet needs of the ECA.

A line of credit has been established to finance these projects. The Board will only use money that is needed during this 8 year period.

Elevators: A new contract was approved for Otis to ensure we get the best price on parts and service. The repair program will resume after the holidays.

Compliance with Fire Marshall's Findings: a contract was approved to work on compliance with the Montgomery County Fire Marshall's findings at the Elizabeth.

Legum & Norman Community Manager Greg Robey introduced the new L&N Regional Manager Robert Cray who replaces William Perry. ECA Treasurer praised Bill Perry for the good work he did on ECA financial matters.

The annual Holiday Party on December 16 is shaping up to be an elegant affair. Residents and owners only. Don't forget to RSVP.

No board meeting in December. Next Board Meeting: January 22, 2013. 

October 23, 2012 Minutes of ECA Board

THE ELIZABETH CONDOMINIUM ASSOCIATION

4601 North Park Avenue

Chevy Chase, MD 20815

Minutes of Board of Directors Meeting   October 23, 2012

Board Present:

Ted Ariev                        President

David Robinson..............Vice-President

John McNerney ............  Treasurer

Herman Stekler .............  Asst. Treasurer..................

Ilo-Mai Harding............... Secretary

Charles Bressler                Director
Steven Schattman ............Director

Others Present:

Bill Perry ..........     .....Regional Director, Legum & Norman
James M. Santos .........ECA General Manager, Legum & Norman

Jana Bowcut ...............ECA Recording Secretary, On the Record

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 28^th 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 25^th 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 16^th.

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