DRAFT MINUTES OF
THE BOARD MEETING OF THE
555 ESPLANADE CONDOMINIUM OWNERS ASSOCIATION
July 12, 2010
CALL TO ORDER
The following are the Minutes of the Meeting of the Board of Directors of the Casa Bahia Condominium Owners Association, held on Monday, July 12, 2010, in the 535 Building Lobby, 535 Esplanade, Redondo Beach, California 90277. A quorum of Board Members was established and Joe Engle called the meeting to order at 6:39 PM.
BOARD MEMBERS PRESENT
Joe Engle, President; Jake Murray, Vice President; Betty Schneider, Treasurer; Dianne Merzel, Secretary; Frank Parker, Member-at-Large.
MANAGEMENT COMPANY REPRESENTATIVE(S) PRESENT
Ellona Hess of Scott Management Company (SMC)
DISCUSSION OF CC&RS BALLOT
A discussion was held among the Board Members and Homeowners present regarding the proposed CC&R amendment. Questions/concerns discussed included
1) What changes the Board intends to propose to the CC&Rs if this ballot (regarding the percentage required for amendment approval) passes: possible changes regarding the amount of rental Units in the building, updating the document to correspond to the 2010 Davis Sterling Act, possible change to the fine allowance;
2) Recommendation to amend the violation “fine clause” as the document currently only allows a $25.00 fine: The Board agreed that this is a change that would be considered;
3) Recommendation to have a Committee of Homeowners to work on the proposed changes to the CC&Rs, if this first ballot/amendment passes: The Board agreed that a committee for this project would be a good idea;
4) Why is the Board now proposing changes to the CC&Rs when it has been in place since the origin of the complex: One reason why this is being addressed now is because of the high amount of rental Units;
5) Whether or not the Board will propose changes to the Bylaws along with the CC&Rs and whether or not the Bylaws are affected by this proposed ballot (re percentage of approval required to pass any/all amendments): Yes, the Bylaws are affected by this proposed ballot and yes, changes would be proposed to the Bylaws as well;
6) Whether or not the Tier clause of the CC&Rs will be changed in the future, or with the current proposed amendment: The Tier clause can not be changed without 100% approval of the Homeowners. The Tier clause is not affected with the current proposed amendment.
A final opportunity to submit ballots was announced. A total of 34 ballots were received. At least 41 ballots needed to be submitted in order for the ballots to be opened. The tabulation of the ballots was adjourned until the August Meeting. The tentative scheduled date for the August Meeting is August 09, 2010. A notice will be sent out to all Owners with notification of the Meeting date.
APPROVAL OF AGENDA/MEETING MINUTES
Betty Schneider requested that a change be made to the June minutes, section under “Special Assessment Project” – Ed Schneider was volunteered, instead of Ed Schneider volunteered. Dianne Merzel made a motion to approve the June 2010 minutes with the noted change. Frank Parker made a second to the motion. The motion carried and the minutes were approved. A copy of the approved minutes will be mailed to all Homeowners as an insert with the August statements.
TREASURERS REPORT
Mrs. Schneider advised that the Association’s expenditures are now more in line with the budget as a result of the recently approved special assessment. Mrs. Schneider presented a revised 2010 annual budget to the Board. Mr. Engle advised all present that the Association’s total expenditures for the recent past years (approximately 3), and income, was approximately $252,000.00. The total of the 2009 expenditures was approximately $272,000.00. The increase was primarily a result of the hydro-jetting project (cleanout of vertical plumbing lines). Mr. Engle stated that he believes there will need to be an increase of dues for the 2011 year, or a special assessment, in order to accommodate this increase in expenditures. The Board will attempt to bring down the cost of expenditures. One area where the Association saved $6,000.00 this year was in Earthquake Insurance. Mr. Murray made a motion to approve the revised 2010 budget. Mr. Parker made a second to the motion. The motion carried with all in favor. A copy of the approved revised budget will be posted on the Association’s website.
HOMEOWNERS FORUM
· Unit #517 – John Tache: Mr. Tache expressed his concern for the President’s lack of attendance at monthly board meetings. Mr. Tache requested that the Board consider re-appointing the position of President to a different member on the Board, specifically, Jake Murray, the current Vice President. Mr. Tache questioned how Mr. Murray was voted onto the Board.
· Unit #416 – Douglas Duncan: Mr. Duncan expressed his concern for the Association’s expenditures and recommended that the Board review the financials, and determine where the Association is over-spending, and where money can be saved, for example, being cautious on involving the Association’s attorney to limit legal fees.
· Unit #304 – John St. Rock: Mr. St. Rock recommended that there be more Committees, for different projects and aspects of the Association’s daily business, including a Financial/Oversight Committee. Mr. St. Rock stated that he would like to see Mr. Engle remain as President of the Board. Mr. St. Rock advised that he really appreciates the website and thinks it is a great source of information. Mr. St. Rock thanked the Board and Ms. Hess of Scott Management Company for all of the work, time, and effort put in towards the building and Owners/Residents.
· Unit #108 – Sheri Nielsen: Mrs. Nielsen asked whether or not there was an anticipated date for the completion of the Northwest balcony project. Mrs. Nielsen asked whether or not there were any reports of vehicle/Unit break-ins, as a number of access gates were vandalized. The Board responded that no break-ins were reported. Scott Management Company will contact the Police upon report of any/all future vandalism.
· Unit #302 – Dot Lee: Mrs. Lee questioned whether or not there is a revised set of Rules and Regulations, which incorporates all approved changes. The Board advised that there is no such “complete set” drafted at this time. Perhaps this can be addressed in the future by a Committee.
· Unit #109 – Mary Lee Coe: Mrs. Coe questioned whether or not the areas of peeling stucco, on the ceiling to her patio area, will be addressed once the Northwest Balcony Project is complete.
· Unit #620 – Edna Marinella: Mrs. Marinella thanked Mr. Murray and Mr. Schneider for correcting the shopping cart rack issue, per the discussion held at the June meeting.
OLD BUSINESS
· Annual Fire Alarm Test – Correction of Deficiencies – Status Update: The Board reviewed the list of deficiencies reported by Southland Fire Alarm, per the test findings. Mrs. Schneider made a motion to approve the proposal submitted by Fire Safe Systems, to lower the inspector’s valve, located in the storage closet of parking space 55, G4. Ms. Merzel made a second to the motion. The motion carried with all in favor. Mr. Ed Schneider updated the Board on his communications with the City in regards to the deficiency noted of the elevator fire alarm panel not being connected to the alarm panel for the rest of the building. The inspector at the Fire Department requested that Mr. Schneider present two proposals to have the two systems interconnected. To date one proposal has been submitted, from Southland Fire Alarm. A second proposal was requested from TRE. Once received Mr. Schneider will present both proposals to the inspector at the Fire Department and will then report back to the Board.
· Annual Flow Test of Area Drains – Review Quotes: At the May 2010 meeting Mrs. Schneider advised the Board of Bert Meli Plumbing’s recommendation on how to perform a flow test of the area drains, in the common areas and on individual patios. The idea suggested was to pour water down the drain to ensure that the water flows as it should. If the water does not flow, then the cover would be removed and the drain would need to be cleaned out. Three quotes were submitted to perform this service. Quotes were received from Bert Meli Plumbing, Gerhard Weise Plumbing, and Radisic Plumbing. The Board reviewed the estimates and determined that the proposal by Bert Meli Plumbing was most competitive in pricing. Bert Meli Plumbing is also familiar with the property and provides satisfactory service. Ms Merzel made a motion to accept the proposal submitted by Bert Meli Plumbing. Mr. Parker made a second to the motion. The Board discussed first starting with half a day’s worth of work (approximately 4 drains) to determine if there is a problem with clogged drains, or not. If yes, than the Board will draft a schedule for the testing of all drains. If not, the project will be tabled.
· Garage Driveway Entrance/Exit Repairs – Review Quotes: The Board has received four bids to date for this project; Two of the requested contractors declined to bid on the project. Mr. Schneider recommended that the Board table moving forward on this project until more research is done, including what the City involvement would be if the sidewalk is replaced, how the approach can be redone without having to touch the sidewalk, etc.This information will be collected and then submitted to the Board for their review.
· Handrail Replacements – Review Quotes: To date one bid has been submitted to replace the front entryway handrail replacements. The proposal recommended replacing the handrails with trex material, instead of wood. Ms. Hess advised that two other contractors declined to bid on the project. Mrs. Schneider recommended that Ms. Hess contact Aluminum Tube Railing for a proposal. This is the company that installed the building’s aluminum handrails/gates back in 1984.
· Spa – Bring into Compliance with VGB Act – Status Update: The Board approved the bid submitted by Browning’s Pool Service to bring the spa into compliance with the VGB Act at the May Meeting. Browning’s Pool Service is working on obtaining the required permits to complete the job. The integrity of the spa surface will be evaluated once the water has been drained from the spa.
· Sprinkler System Conversion – Review Quote/Information: The Board reviewed the proposal submitted by Rancho CA to convert the existing irrigation system to a water conservation irrigation system, specifically by the replacement of the current heads with rotary nozzles. The Board reviewed the water and cost savings that these new nozzles would provide for. Mr. Schneider advised the Board that Rancho CA felt that these rotary nozzles would be more efficient than a drip system. Ms. Merzel made a motion to accept the proposal as submitted by Rancho CA. Mrs. Schneider made a second to the motion. The motion carried with all in favor.
· Sump Pump for Water Intrusion into G-2: The Board reviewed the two bids submitted to install a sump pump to address the water intrusion into G2/G3. Mr. Schneider recommended that the Board table moving forward on this project until more research is done. Mr. Schneider volunteered to research this project. Mr. Murray and Mr. St. Rock will assist Mr. Schneider on the research and recommendations for the Board to review.
· Unit #517 Deck (Drain); Interior Repair to Damaged Units: A water test was performed on Tuesday, July 06, 2010, at several possible areas of water intrusion, including the decks of 619, 517, 416 and portions of the tile roof. The water test was performed by Ewell Construction. The results of the test were not yet submitted to Scott Management Company.
· Special Assessment Projects - Update: The following updates were given regarding The Garage Area – Power-wash/Re-stripe/Replace Trash Room Doors:
§ Bids to power wash and re-stripe the garage areas have been collected. The bid schedule, on the three bids submitted, was prepared by Ms. Hess and reviewed by the Board. Ms. Merzel made a motion to accept the proposal submitted by Hydro-Kleen. Mr. Murray made a second to the motion. The motion carried with all in favor. Ms. Hess will contact the company for an exact schedule of how they would like to perform the steam cleaning and re-striping. Ms. Hess will also request their ideas on how to minimize inconvenience to the Homeowners and Residents of the building while this project is performed.
§ The Board reviewed the idea/recommendation suggested by a representative of Commercial Door of Los Angeles, Inc. on a way to possibly protect the trash room doors from being so badly damaged from the trash bins being brought in and out of the rooms. A bid was submitted to “furnish and install two pair of 48” high steel angle ‘Door Track Guards’ painted safety yellow.” After installing these guards, the doors would be painted so that the effectiveness or non-effectiveness of the frames would be obvious. Mr. Schneider was volunteered to contact the company and see if they can provide a warranty of some sort which would go into effect if the frames did not prove to be a success in protecting the doors. Mr. Schneider reported that the company was not willing to provide any warranty on the material/installation if it did not prove effective. Mr. Schneider submitted a proposal for the purchase of the door track protectors, two protectors for one trash room, for a total cost of $224.40. Mr. Schneider and Mr. Murray would install the protectors and paint the doors. The Board unanimously agreed to move forward with this proposed plan of action.
The following report was given regarding The Northwest Balconies Project:
§ A change order was submitted by CMS for the replacement of door flashings and a number of new sliding doors. The cost of the door flashings and new sliding doors is the responsibility of the Homeowners. To date, all Unit Owners have not agreed to move forward with the replacements pans and doors. The Board requested that Ms. Hess obtain a revised change order from CMS, which separates out the cost of installation for each door and door pan, as the Board would like to consider paying that portion of the project, for each Unit. The Board will then present this information to the Owners. If the Owners do not consent on replacing their door(s) and door pans, the Association will have to move forward with the project by ordering the doors and door pans, and will later seek reimbursement from the Owners.
The following report was given regarding The Security Equipment Project:
§ At the May meeting, the Board approved the security equipment bid provided by Surveil Aware, and the running of the cables bid from Moffitt Electric. Surveil Aware order and delivered the cable. Moffitt is scheduled to come out and run the cables. The equipment can then be ordered and installed.
§ Phase Two of this project may be to add more cameras, as the system will allow for six additional cameras.
The following report was given regarding The Street-Side Retaining Wall Replacement Project:
§ One bid has been submitted to date for the replacement of the street-side retaining wall. Bids, and more research/information, for the replacement of the street side retaining wall are forthcoming.
NEW BUSINESS
· Homeowner Comments submitted via new Website: Mr. Schneider advised that he will answer simple, straight-forward questions that are sent to the Association via the new website. If it is a question that will require Board discussion/approval, Mr. Schneider will forward to the Board. Mrs. Bowman, of Unit #103, requested that the Board consider having the monthly Board Meetings on a different day of the week, and a different time of the day, as she is not available to attend night, week-day meetings. The Board discussed this request and reviewed several ideas, including perhaps holding just a meeting for Homeowners Forum on a Saturday, in the daytime, every quarter.
NEXT MEETING
Tentatively scheduled for Monday, August 09, 2010, 6:30 P.M.
ADJOURNMENT
Meeting was adjourned at 9:08 PM.
Submitted by: Ellona Hess
EXECUTIVE SESSION
The Board of Directors held an executive session to discuss pending violations and Board Member positions.
PLEASE NOTE: Any grievance or clarification on issues can be addressed by: (1) Airing the issue at the next scheduled Public Board meeting, or (2) contacting Ellona Hess at Scott Management Company (Phone: 310-370-2696 ext. 21; Email: [email protected]; Mail: Scott Management Company, PO Box 3159, Torrance CA 90510-3159). Calls/correspondence should reference 555 Esplanade/Casa Bahia.