BOARD OF DIRECTORS MEETING MINUTES
Tuesday, September 20, 2022
BOARD MEMBER ATTENDANCE
Present: Joe Engle, President; Betty Schneider, Treasurer; Sandy Bagley; Secretary; Steve Chipman, Member-at-Large
Absent: Victor Blanc, Vice President
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, September 20, 2022, via Zoom. A quorum of Board Members was established, and Mr. Engle called the meeting to order at 10:05 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 (08.16.22)
MOTION Ms. Bagley made a motion to approve the August 16, 2022 meeting minutes as prepared. Ms. Schneider made a second to the motion, which carried unanimously.
APPROVAL OF MONTHLY FINANCIAL REPORT
The August financial report was reviewed.
MOTION Mr. Engle made a motion to accept the August financial report. Ms. Schneider made a second to the motion, which carried unanimously.
2023 RESERVE STUDY UPDATE
Association Reserves (AR) issued a 2023 reserve study update on April 28, 2022, and a revision on August 12 considering feedback by the Board. Based on a projected January 1, 2023, starting reserve balance of $1,211,145, the Association will be 80.5% funded which represents a strong reserve position. The study recommends increasing the monthly reserve contribution rate from $10,683 to $13,250. The vote to accept the study will be deferred until the next meeting, as the Board would like to add an additional component to the study, “Building Integrity.” Some additional changes requested of AR will be followed up on by Ms. Schneider.
OLD BUSINESS
- Sundeck Resurface Project Pacific Construction Associates (PCA) are serving as project managers. PCA is continuing to work with the Redondo Beach planning department to procure a permit(s) for the project. Updated plans were re-submitted to the building department early September. An updated proposal was received from WICR, considering the changes mandated by the city. It is estimated that the project will take approximately 3 months to complete. It is expected that the commencement of the project will be pushed out until spring 2023.
- 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 was 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).
a) FWC also recommended the structural investigation and analysis of the G1 level slab. These further examinations were performed. FWC’s report, for their “top of slab structural assessment” was published on April 12, 2022. FWC prepared repair plans based on their findings for that assessment. The Board reviewed the proposals received for this project. Mr. Schneider and Mr. Bagley will be asked if they are willing/available to volunteer to oversee the project. Ms. Schneider agreed to represent the Board, for project oversight, with Mr. Chipman as the alternate Board representative. It is the Board’s plan to commence this project in quarter I of 2023.
MOTION Ms. Schneider made a motion to accept structural’s proposal. Ms. Bagley made a second to the motion, which carried unanimously.
b) FWC also issued concrete repair plans for the garage slab damage observed through invasive testing on October 22. A to Z Construction (A to Z) was engaged to perform these repairs. They were performed May 25 – June 3, 2022.
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 The Board agrees to embark on this effort now (versus following the completion of the sundeck project). FWC will be alerted and asked to work on scheduling the inspections (in building sections).
3. Rusted/Rusting Screens Under Balconies There are screens under balconies to allow for the release of moisture. Mr. Schneider proposed standardizing the rectangular vent screens by installing a vent frame that would accommodate just changing out the screens themselves. Once the new type is installed, there would be no need for any construction, stucco, or painting work whenever the screen needs to be replaced again in the future due to rusting or old age. The Board reviewed the proposal received from A to Z to install 26 new screen vents.
MOTION Mr. Engle made a motion to accept the proposal by A to Z. Ms. Schneider made a second to the motion, which carried unanimously.
4. 404/504 Balcony Repairs FWC and Ewell Construction (Ewell) met on-site April 5, 2022, for an initial inspection of these decks that were showing signs of distress. Based on that visit, Ewell presented a proposal for an invasive inspection. The invasive testing, which included the removal of stucco along the bottom and sides of the balconies to expose the underlying framing, was performed on May 31, 2022. FWC was onsite that day to evaluate the exposed conditions. They found that the framing members for both balconies appear to be in fair condition; some damage was observed that requires repairs. Proposals for the repair work were issued by Ewell. They are in the process of being considered by FWC.
5. Entryway Light Fixtures The effort to locate replacement fixtures for the entryways remains in progress.
6. Fire Sprinklers Repairs in Units Fire sprinkler repairs are pending in Units 111, 113, 114, 305 and 517.
7. Unit 303 Water Intrusion – Siding Repairs In completing the original contract, Ewell found that the exterior drywall behind the siding showed evidence of water damage. The existing window has a long split in the left-hand side frame. The Board considered the change order by Ewell for additional repairs that need to be completed, based on these findings.
MOTION Ms. Bagley made a motion to accept Ewell’s change order. Ms. Schneider made a second to the motion, which carried unanimously.
(The Owner of Unit 303 will be paying for the replacement of the window.)
8. Unit 315 Water Intrusion – Water Test Findings A water test was performed by Antis Roofing (Antis) on June 15, 2022, to pinpoint the exterior location/component(s) allowing moisture intrusion into the bedroom ceiling. After water testing 517’s windows and sliding door, moisture was detected in the ceiling per moisture meter being used. 517’s contractor attended to the repairs called for by Antis. A follow-up water test is due to be performed (by 517’s contractor) this Friday.
9. Repair, Paint Building’s Exterior Wood Surfaces When reviewing the 2023 reserve study update, the Board found that component “Building Exterior Wood Repair/Repaint (#1116) should be performed this year. Dunn Edwards (DE) prepared paint specifications for the project. DE in the process of preparing color scheme ideas/renderings and scheduling a job walk with companies that will be invited to bid on the job.
10. Gym Reopening Mr. Chipman is finalizing the platform to be used for making gym reservations. Once that is ready, the new rules/procedures and reopening date will be announced.
11. Electric Vehicle Charging Stations – Edison’s “Charge Ready” Program The Committee is continuing to work on investigating options, including connecting the Association with Southern California Edison’s “Charge Ready” program, which offers in part, funded installation of electrical service infrastructure upgrades.
12. Balcony Maintenance Proposal Mr. Schneider presented a proposal on balcony maintenance for the Board’s consideration. The proposal was divided into 2 parts, which included financial incentives for the program. The Board will take time to examine the proposal in detail, to be followed by a conversation on implementation.
NEW BUSINESS
1. Annual Tree Trimming, Removal Services The Board reviewed the proposal from Rancho CA Landscape (Rancho) for these services.
MOTION Mr. Engle made a motion to accept the proposal as presented. Ms. Schneider made a second to the motion, which carried unanimously.
2. 2023 Operating Expense Budget, Designation of Monthly Assessment Rate SMC is in the process of preparing an income/expense budget for the new fiscal year that will start on January 1, 2023. It will be presented to the Board for consideration and edit once complete.
BOARD OF DIRECTORS ELECTIONS | VOTE TO SEAT NOMINEES
The Inspector of Elections, Elect 2 Inspect, reported receiving nominations for Sandy Bagley, Steve Chipman, Joe Engle and Betty Schneider. These 4 Members are voted to the Board by “acclamation” as the number of candidates was less than or equal to the number of available positions on the Board of Directors.
MOTION Mr. Engle made a motion to appoint Mr. Blanc to fill the 5th seat on the Board. Ms. Schneider made a second to the motion, which carried unanimously.
MOTION Mr. Engle made a motion to carry forward with the same Officer positions. Ms. Schneider made a second to the motion, which carried unanimously.
ADJOURNMENT | CONFIRM NEXT MEETING DATE
The meeting was adjourned at 11:41 AM. The next meeting of the Board is scheduled to take place on Tuesday, October 25, 2022, 10 AM via Zoom.
EXECUTIVE SESSION
An executive session was called to order at 11:42 AM to review the executive session meeting minutes, the aging report and governing document enforcement matter(s). The meeting was adjourned at 12:11 PM.