BOARD OF DIRECTORS MEETING MINUTES
Tuesday, April 26, 2022
BOARD MEMBERS PRESENT
Joe Engle, President; Victor Blanc, Vice-President; Betty Schneider, Treasurer; Sandy Bagley, Secretary; Steve Chipman, Member-at-Large (arrived at 11:29 AM)
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, April 26, 2022 via Zoom. A quorum of Board Members was established, and Mr. Engle called the meeting to order at 10:04 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 (03.22.22)
MOTION Mr. Engle made a motion to approve the March 22, 2022 meeting minutes as prepared. Ms. Bagley made a second to the motion. The motion carried with all in favor.
APPROVAL OF MONTHLY FINANCIAL REPORT AND CD RECOMMENDATION
As of March 31, the Association had $5,928.85 in operating funds and $1,113,847.59 in reserves. There were no accounts in collections as of March 31 and ($17,356.39) in receivables. The March reserve contribution was made, in the amount of $13,648.75. The Association currently holds the following CD maturities: 2022 maturities, $940k, 7 CDs. The Senior Portfolio Advisor – Sirus Turkzadeh - the Board was working with at Merrill Lynch has moved, with his team, to RBC Wealth Management, which is a division of RBC Capital Markets.
MOTION Ms. Schneider made a motion to proceed with transferring the Merrill Lynch reserve accounts/CDS to RBC. Ms. Bagley made a second to the motion. The motion carried with all in favor.
OLD BUSINESS
- Exterior Retaining Wall Project: Railing Installations Mr. Blanc reported on project progress. It is nearly completion, and the City will soon be called out for the final inspection and permit sign-off.
- Sundeck Resurfacing – Project Update Review & Contract Approval 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. The Owners of the 4 Units that will need to have their sliders replaced in conjunction with this project have by now confirmed, in writing, that they agree to the Association’s plans and their financial responsibility to pay for the materials (over the course of 1 year, via quarterly payments). 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.
- Structural Integrity Analysis of the Building, Garages (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).
MOTION Ms. Schneider made a motion to accept the repair proposal by A to Z Construction for $14,850. Ms. Bagley made a second to the motion. The motion carried with all in favor.
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.
- Rusted/Rusting Screens Under Balconies – Research on Replacement Options 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 & Additions 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 meeting with Ms. Schneider and Ms. Bagley this Friday to confirm the color selection. The project is due to commence on May 10, 2022. Each side will take 3-4 days to complete.
- Electric Vehicle Charging Stations – Edison’s “Charge Ready” Program 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 – Results of Invasive Inspection ProTec reported on observed conditions at the balconies for Units 404 and 504. They are showing signs of distress. FWC and Ewell Construction (Ewell) met on-site April 5 for an initial inspection of the decks. Based on that visit, Ewell presented a proposal for an invasive inspection. It was accepted by the Board and released to Ewell on April 12, 2022. The work is in the process of being scheduled.
- Gym Wall Waterproofing Project – Project Update 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. The repair proposal by Morales Waterproofing (Morales) was accepted and released to Morales on March 29, 2022. Morales is waiting for certain materials to be delivered.
- Entryway Lights – Review & Purchase Light Fixtures The selection of new light fixtures for the entryway is still in process.
- ProTec Fuel Surcharge – Vendor Response 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 questioned these amounts/calculations. A response from ProTec’s CFO was received, which the Board found acceptable.
- Beach Side Landscape – Proposal for Interim Planting The Board reviewed the proposal issued by Rancho CA Landscape (Rancho) for an interim landscape upgrade, at the green belt on the ocean side. Ms. Schneider has a call in to Rancho to discuss what they have quoted, as the price ($3,997) is well over what the Board has in mind.
- 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, presented a renewal proposal. The premium for the master policies package will be $15,818 and for the earthquake policy, $39,653.16.
- Annual Meeting – October 25, 9:30 AM The annual meeting of the Owners, for the tabulation of the ballots for the election of the Board, is scheduled to take place on Tuesday, October 25, 9:30 AM.
- Emergency Light Fixtures - Repairs On April 1, 2022 a local power outage occurred. Mr. Bagley walked around the building and garages to perform a survey on the operation of the emergency lights. Battery replacements and repairs are in progress.
- 555 Esplanade Door to 3rd Floor – Repair or Replace This door is continuously found propped in an open position.
Mr. Blanc will facilitate this alongside the Schneiders.
- Hallway Entry Doors for All Floors – Locking Door Knobs The Board discussed the (access control) reason/need to lock these hallway doors, on the 555 side.
- Unit 303 Water Test Findings – Recommended Repairs Ewell performed a water test on March 24, 2022, to identify component(s) responsible for water intrusion into Unit 303. The siding, perimeter of the window, and the siding above the window leaked. These components are Association responsibility. The window itself and the window on the floor above did not leak.
- Unit 601 Water Test Findings – Recommended Repairs This matter will be discussed by the Board during the executive portion of today’s meeting.
ADJOURNMENT | CONFIRM NEXT MEETING DATE
The meeting was adjourned at 12:07 PM. The next meeting of the Board is scheduled to take place on Tuesday, May 17, 2022, 10 AM via Zoom.
EXECUTIVE SESSION
An executive session was called to order at 12:08 PM to review the executive session meeting minutes, the aging report a governing document enforcement matter(s). The meeting was adjourned at 12:45 PM