BOARD OF DIRECTORS MEETING MINUTES
Tuesday, March 22, 2022
BOARD MEMBERS PRESENT
Joe Engle, President; Victor Blanc, Vice-President; Betty Schneider, Treasurer; Sandy Bagley, Secretary; Steve Chipman, Member-at-Large
BOARD MEMBERS ABSENT
None
MANAGEMENT COMPANY REPRESENTATIVE(S) PRESENT
Ellona Hess of Scott Management Company (SMC)
CALL TO ORDER
The following are the minutes of the 555 Esplanade Condominium Owners Association Board of Directors open session meeting, held on Tuesday, March 22, 2022 via Zoom. A quorum of Board Members was established, and Mr. Engle called the meeting to order at 10:07 AM.
HOMEOWNERS FORUM
Homeowners were provided with the opportunity to address the Board regarding items of interest or concern, in accordance with the open meeting act, CA Civil Code 4925(b).
APPROVAL OF BOD MEETING MINUTES (02.15.22)
MOTION Mr. Engle made a motion to approve the February 15, 2022 meeting minutes as prepared. Ms. Schneider made a second to the motion. The motion carried with all in favor.
APPROVAL OF MONTHLY FINANCIAL REPORT AND CD RECOMMENDATION
As of February 28, the Association had $27,697.16 in operating funds and $1,104,312.13 in reserves. There were no accounts in collections as of February 28 and ($14,571.44) in receivables. The February reserve contribution was made, in the amount of $13,648.75. The Association currently holds the following CD maturities: 2022 maturities, $990k, 7 CDs.
MOTION Ms. Schneider made a motion to accept the February financial report. Ms. Bagley made a second to the motion. The motion carried with all in favor.
MOTION Mr. Engle made a motion to proceed with purchasing a 6 month CD, for $100,000. Ms. Bagley made a second to the motion. The motion carried with all in favor.
OLD BUSINESS
- Exterior Retaining Wall Project: Railing Installations The final component of the project is the installation of new railings, by A to Z Construction (A to Z). The railings are in the process of being powder coated and will take about a week or so to complete.
- Sundeck Resurfacing – Project Update The project is slated to begin around the first of June. This start date is based upon placing the purchase order and delivery of the sliding glass doors. It is estimated that the project will take approximately 3 months to complete. Pacific Construction Associates (PCA) will be serving as project managers. PCA is working with the Redondo Beach planning department to procure a building permit for the project.
- Bicycle Room Clean-Out (Update) The Bagleys reported that they have gotten all the new tags issued to residents. They went through all the bikes and identified those in the cages without new tags. They attempted to reconcile those bikes in cages having no new 2022 tags to the 2013 bike cleanout records to ensure that no current occupants inadvertently missed getting a 2022 new tag. The Bagleys labeled all bikes for donation (to the Marines), which total about 35. The pick-up is scheduled for March 24. The G-1 cage will need to be made available to the sundeck project contractor, for storage of tools and supplies. As such, after the bikes are picked up by the Marines, the G-1 cage will be immediately closed.
- Structural Integrity Analysis of the Building, Garage (3 Phase Effort) The Board commenced a 3 phase project to have the structural integrity of the building analyzed. The first focused on the structural integrity of the 4 garage concrete and steel levels. The second is for the analyzing of the settling of the building, i.e. manometer surveying. The third will be inspecting the elevated structures, i.e. balconies, in compliance with Senate Bill 326 (SB326).
Phase II This phase is complete. As recommended, the Board will plan on having additional manometer surveys performed within the next 2 years in the areas noted above that appear to be experiencing downward movement.
Phase III FWC proposed, concerning SB326 inspections, “The strategy that seems most efficient is to have FWC conduct the balcony inspections prior to the railing replacement.” The Board agrees with this strategy and will intend to embark on the effort following the completion of the sundeck project.
- Replacement of Rusted/Rusting Screens Under Balconies & Around Sundeck There are balconies with screens on the bottom surface to allow for the release of moisture. Some of the screens are rusted; some are eligible for repairs while some will need to be replaced. The Board reviewed the proposals received from A to Z to install new screen vents in 6 different locations; 1 proposal was for copper replacements and the other for aluminum. Mr. Schneider is still researching a different installation method that will entail less damage/repair work for the surrounding stucco.
- Rules & Regulations, Proposed Changes (Balconies & Decks, Gym Use, Moving In & Out) The proposed changes/additions to the Rules were distributed to the Membership on January 11 for an advisory comment period. Comments were received. The Board considered Owner input and made changes to the proposed Rules.
- Entry Areas Surface Coating – Reseal The Board approved the proposal by Tuff Kote (TK) to repair and replace the entry area surface coating. There is no need to wait for the sundeck project to be completed, as the workers/traffic associated with that project will be primarily through the garage. TK will be asked to schedule the project for as soon as possible.
- Electric Vehicle Charging Stations - Update The Committee is working on connecting the Association with Southern California Edison’s “Charge Ready” programs. The program offers, in part, funded installation of electrical service infrastructure upgrades.
- 404/504 Balcony Repairs – Inspection by Engineer; Scope of Intrusive Investigation ProTec reported on observed conditions at the balconies for Units 404 and 504. They are showing signs of distress. Ms. Schneider will lead this project. FWC and Ewell Construction are planning to be on-site April 5 for an initial inspection of the decks and to determine what type of invasive testing will be necessary to determine the scope of work for repairs/rebuild.
- Building Termite Inspection – Review Results Andy’s Termite performed an inspection of the building, based on termite activity or damage observed or recently uncovered in a couple of Units. Andy’s reported that the wood members (where termite damage was found) was checked with a Termatrac device and no activity was found. They believe that the drywood termite evidence was from infestations before fumigation was performed years ago. There is no need to fumigate at this time.
- Full-Time Building Maintenance (On-Site) Resource The engagement of a (full-time) maintenance employee for the Association was discussed. The Board determined against further considering this, primarily due to liability concerns that the Association would take on when becoming an employer; 3rd party vendors will continue to be engaged/hired on a periodic or as-needed basis.
- Gym Wall Waterproofing Project – Investigation if Shoring is Required The gym was renovated in 2020. The south wall of the gym, and in particular the southwest corner of the wall, at the time showed indications of water intrusion. Part of the renovation was to coat the inside of this wall with a waterproofing compound along with an anti-peeling and flaking compound to prevent continued intrusion. Unfortunately, this did not solve the problem. Recent rains produced evidence of intrusion along this wall, including bubbling of paint. Mr. Schneider reported that there are 2 ways to address the problem; waterproof the outside of the wall or cement over the enclosed area outside the wall. Ms. Schneider is due to meet with Morales Waterproofing tomorrow to review this project.
- Entryway Lights – Review & Purchase Light Fixtures The selection of new light fixtures for the entryway is still in process.
- Internet in the Lobby – Activation Status The Board confirmed authorization for Mr. Blanc and/or Mr. Chipman to activate Wi-Fi for use in the lobbies. A sign will be posted in the lobby, announcing this WiFi availability for residents/guests/service vendors and delivery providers, etc.
- 2021 Annual Review by CPA The Board reviewed the review report prepared by Michael E. Klein, CPA for the fiscal year which ended December 31, 2021.
- 2022 Annual Meeting, Board of Directors Election The Board reviewed the proposal and contracted presented by Inspect 2 Elect for the 2022 annual meeting, Board of Directors election balloting.
- Lender Questionnaire – Resolution to Respond Beginning January 1, 2022 Fannie Mae/Freddie Mac established additional standards related to deferred maintenance and unsafe conditions in condominium developments (as a result of the collapse of Champlain Towers in Florida). Because lenders need a steady flow of new cash for loans, they will conform their lending practices to these guidelines. The Board has reviewed the lenders’ questionnaire addendum and resolved that the Association will respond to the questionnaire(s) as requested. Counsel will be engaged to guide the Association in preparing its responses.
- ProTec Surcharge - $1.00 per Mile The Board received a March 11, 2022 dated notice from ProTec, advising that they have determined that a fuel surcharge of 1.27% is now necessary. The fuel surcharge will be separate from their base rate and material charges. When fuel costs decline below $5 per gallon, they will remove the fuel surcharge. However, if fuel costs increase beyond an average of $6 per gallon, they will need to increase the surcharge to 2.27% and thereafter 1% increase for each $1 dollar increase in fuel costs. The Board finds these amounts/calculations unreasonable and does not agree to it. SMC will communicate this to ProTec.
- Beach Side Landscape – Interim Planting of Rosemary The Board reviewed the correspondence issued by Mr. Ed Schneider on this subject. The letter suggested that if the Board plans to wait a year or 2 before replanting the beach-side landscaping, then it would be prudent to implement an interim upgrade that will make the landscaping look more presentable at an affordable cost.
- 2022 Master Policies Package & Earthquake Insurance Renewal Proposals The master insurance policies package, and earthquake insurance for the Association are due to be renewed May 14. The incumbent broker, LaBarre Osknee Insurance, is due to submit their renewal proposal package in time for the Board’s consideration and vote at the April 26 meeting.
- Unit 503 Structural Post Repairs The post in the upstairs loft in Unit 503 has termite damage.
ADJOURNMENT | CONFIRM NEXT MEETING DATE
The meeting was adjourned at 12:25 PM. The next meeting of the Board is scheduled to take place on Tuesday, April 26, 2022, 10 AM via Zoom.
EXECUTIVE SESSION
An executive session was called to order at 12:26 PM to review the executive session meeting minutes, the aging report and governing document enforcement matter(s). The meeting was adjourned at 12:45 PM