Tuesday, October 19, 2021
BOARD MEMBERS PRESENT
Joe Engle, President; Victor Blanc, Vice-President; Betty Schneider, Treasurer; Sandy Bagley, Secretary
BOARD MEMBERS ABSENT
Steve Chipman, Member-at-Large
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, October 19, 2021 via Zoom. A quorum of Board Members was established, and Mr. Engle called the meeting to order at 10:01 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 (09.14.21, 09.30.21)
MOTION Mr. Engle made a motion to approve the September 14 and September 30, 2021 meeting minutes as prepared. Ms. Bagley made a second to the motion. The motion carried with all in favor.
APPROVAL OF MONTHLY FINANCIAL REPORT(S)
As of September 30, the Association had $75,527.31 in operating funds and $1,094,103.28 in reserves. There were no accounts in collections as of September 30, and ($4,337.75) in receivables. The Association is current with the monthly reserve contributions, each in the amount of $9,400. The Association currently holds the following CD maturities: 2021 maturities $200,000 x 2 CDs and 2022 maturities $350,000 x 2 CDs.
MOTION Ms. Schneider made a motion to accept the September ’21 Financial Report as prepared. Mr. Engle made a second to the motion. The motion carried with all in favor.
OLD BUSINESS
- ExteriorRetainingWallProject–RailingInstallations;LandscapeReplacementsMr. Blanc reported on project progress, which is now in its final stages. The new wall (at the front of the building and the northeast side) is cinderblock. Landscape was restored. The final component of the project is the installation of railings. It is anticipated that they should be ready in about five (5) weeks.
- SundeckResurfacingMr.Englereviewedthebackgroundofthisprojectandadvised that the contract negotiation phase remains in progress. The Committee anticipates that the project will end up costing about $450,000. It is expected that the project will take ninety (90) days to complete, barring delays due to weather or unforeseen conditions. Next steps include: 1) continued contract discussion with Pacific
Board of Directors Meeting, Open Session
Construction Analysts (PCA) and WICR, 2) receive permits from Redondo City planning department, 3) Obtain final approval to sign contract from the Board, 4) purchase of materials by WICR (to avoid inflation) and arrange for storage on-site, and 5) start the project construction around April 1 (to avoid the “rainy season”).
c. Bicycle Room Clean-Out Letters were sent out asking all Units to identify and respond with their bicycle storage needs. The response deadline was August 6. Twenty-one (21) Units in total responded. Of the twenty-one (21), seventeen (17) Units reported bicycles. Thirty-nine (39) bicycles were reported by the seventeen (17) Units, with six (6) more to come noted, for a total need of forty-five (45). This compares with the current manual count of bikes in cages, eighty-one (81). The new tags, to be attached to the claimed bicycles, are in hand (with the Bagleys). The procedure that will be taken to relocate and/or remove bicycles will be announced.
- Hydrojetting Jose Rodriguez Plumbing (JR) was hired by the Association for the jetting of kitchen and lavatory stacks (175 fixtures in total). The scheduling is spread out for budgetary reasons. The rotation should take about eighteen (18) months to complete.
- 2022 Reserve Study Update Association Reserves issued a reserve study update “no-site-visit” for the period beginning January 1, 2022. Based on a January 1, 2022 starting reserve balance of $1,123,743, the Association will be 80.5% funded, representing a strong position. The study recommends increasing the 2021 monthly reserve contribution rate in the 2022 budget from $9,400 to $11,450. It was noted that following the completion of the retaining wall and sundeck projects, the next big project the Association intends to undertake is the replacement of balcony railings, to be phased over a three (3) year period. The executive summary of the study will be sent out to the Membership with the 2022 Annual Budget Report. A full copy of the study is available upon request.
- Structural Integrity Analysis of the Building, Garage (3 Phase Effort) The Board commenced a three (3) phase project to have the structural integrity of the building analyzed. The first relates to the structural integrity of the four (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 SB326. On August 25 Ficcadenti Waggoner and Castle (FWC) conducted a site visit to view the concrete and masonry parking structure (Phase I). Some damage to the concrete and masonry within the parking structure was observed, but most of the observed damage was relatively minor or already being addressed by the HOA. FCW recommended assessing/repairing four (4) different areas. FWC also recommends the structural investigation and analysis of the G1 level slab, which would include viewing the top of the G1 podium slab within several Units. FWC is due to return to the building this Friday for further examinations. FWC will also be submitting a proposal for manometer surveying. FWC’s proposal for the SB326 inspections of elevated structures (i.e. balconies and walkways) is forthcoming.
- RepairProjects:Unit115West,OceanfrontFacingSliderTheOwnerofUnit115, Ms. Darcy Roberts, reported trouble with her west, oceanfront facing slider. Ewell Construction (Ewell) was engaged by the Board to open the drywall above the existing sliding glass door in order to identify the cause of the pressure on the slider. The signed contract was released to Ewell on September 30. They are in the process of scheduling. Unit 115 Plumbing Repairs The master shower drain backs up, very
Board of Directors Meeting, Open Session
shortly following snaking services. As such, the Association is investigating the replacement of the drain. JR Plumbing consulted with Bert Meli Plumbing. They concluded that the best option is to re-route the pipe. This will involving coring through a brick wall that is inside of the gym. JR Plumbing is pursuing a proposal from Melroy Concrete Co. for the coring. Unit 103 Plumbing Repairs The plumbing repairs are complete. A to Z Construction and Beyond (A to Z) is in the process of scheduling the drywall/build-back repairs. Unit 301 Balcony Floor Repair Ewell was engaged to attend to repairs at Unit 301’s deck. The contract was released on September 14. They started the job on October 14 and expect that the work will be complete the week of October 25th. It was found that it was not actually the rebar that was protruding through the surface. The bulge was due to water infiltration. Unit 318 Mold Remediation Status The status of this remediation work will be addressed during the executive session. Unit 517 Patio Door Replacement The Owner ordered the non-folding type replacement door, as instructed by the Association. The Owner expects the new door to be received by his contractor in about ninety (90) days.
- Replacement of Rusted/Rusting Screens Under Balconies There are a number of 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. Ms. Schneider met with A to Z to discuss this project. Their proposal is forthcoming.
- Electric Vehicle Charging Stations The Board received the information by ChargePoint, “the world’s largest and most open electric vehicle (EV) charging network,” on charging options they offer to Community Associations. A Committee will work together with the Board on this. Ms. Schneider is overseeing this effort. Mr. Pabst volunteered to serve on the Committee. The Committee may put together a survey to gauge Owner interest.
- Relocation of Beach-Side Fence While the landscaping repairs/improvements on the Ocean/Westside of the building were being discussed with Rancho, Mr. Ed Schneider asked if the Board would consider the possibility of relocating/moving the existing aluminum fence to the edge of the property, to run parallel with the existing pedestrian path. Mr. Schneider prepared and put forth a Statement of Work for this project of consideration. This item will remain on the agenda and will be up for discussion at the next meeting.
- 2022 Operating Expense Budget, Designation of Monthly Assessment Rate (with Raise) Ms. Schneider, Mr. Blanc and Mr. Engle worked extensively on preparing a proposed budget for the new fiscal year which will start on January 1, 2022. Alongside the budget they also prepared a cover letter to the Owners. MOTION Ms. Schneider made a motion to accept the budget, with an assessment revenue total amount of $458,620, with an approximate 19% increase to the rate of the monthly dues. Ms. Bagley made a second to the motion. The motion carried with all in favor.
a. Stucco Crack Repairs (Monthly Report) A to Z was hired to repair stucco at the following areas, identified by Mr. Engle and Ms. Bagley during the August walk- through: wall at air vent on north side of the building, wall near gate at side of building
Page | 3
Board of Directors Meeting, Open Session
pathway, wall near pathway in front of lobby (one [1] wall, two [2] areas), and a wall
by Unit 301. The contract was released on October 7.
- Shopping Cart Repairs West Coast Shopping Cart Service quoted $550 to perform
the following for all eleven (11) shopping carts: replace four (4) wheels/casters, nuts, bolts and power-wash. MOTION Ms. Schneider made a motion to proceed. Ms. Bagley made a second to the motion. The motion carried with all in favor. As per the Board’s preference, the service will be performed on-site. - Westside First Floor Deck, Monthly Cleaning The first-floor deck on the westside of the building must be routinely washed down, to prevent the salt-air from prematurely corroding the deck surface. Mr. Engle proposed that Off-shore (the janitorial company) be instructed to hose down the deck at least monthly.
- Rules & Regs. Proposed Changes Westside First Floor Deck: No Rugs or Furniture of Metal Mr. Engle prepared an update to Rule XIV Hallways, Balconies, Patios and Decks, to include the cleaning of the west side deck and restrictions on the types of furniture that can be used on balconies, patio and decks. It also covers the size of plants that can be placed on the balconies. MOTION Mr. Engle made a motion to have Ms. Roberts, Ms. Schneider and Mr. Engle finalize the language, and to then distribute the proposed changes to the Membership for an advisory comment period. Ms. Bagley made a second to the motion. The motion carried with all in favor. Gym Rules and Regulations; Procedures to Protect Against COVID Ms. Schneider prepared a draft of new rules for gym use. The draft will need to be amended to include no use of speakers/headphones only, and to require wiping down the equipment with disinfectant before and after use. Before the gym is ready to be reopened, some additional items need to be taken care of, including ordering extra gym keys, sanitizing wipes, and setting up the platform for making reservations. MOTION Ms. Schneider made a motion to approve with presenting the new rules to the Membership for an advisory comment period, along with the proposed new rules re Balconies, Patios and Decks. Ms. Bagley made a second to the motion. The motion carried with all in favor.
- Enforcement of Rules re Moving Activity + Providing Information for Owners, Tenants The Association’s Rule III Moving In and Out is not closely being followed by Owners. Ms. Bagley will oversee prepared amendments to the Rule, with a change to include increasing the move in fee to $400, with a reduction to $200 if the Association is provided with advance notice of the moving activity at least forty-eight (48) hours in advance. Ms. Schneider will assist Ms. Bagley with the re-write process.
- Entryways Clean, Repair and Reseal Floors A proposal for this project was requested of Ewell. Replace Light Fixtures Ms. Schneider and Mr. Engle will assist with locating the replacement light fixtures, for Moffit Electric to install.
- Increase in Cost for Renting HOA-Owned Parking Spaces The rate for renting a parking space from the Association has gone unchanged. MOTION Mr. Engle made a motion to increase the rental fee for the three (3) full sized spaces from $75 to $125, and the smaller space (that is about 3⁄4 of the size) from $50 to $70 as of January 1, 2022. Ms. Schneider made a second to the motion. The motion carried with all in favor.
Board of Directors Meeting, Open Session
ADJOURNMENT | CONFIRM NEXT MEETING DATE
The meeting was adjourned at 12:10 PM. The next meeting of the Board is scheduled to take place on Tuesday, November 16, 2021, 10 AM via Zoom.
EXECUTIVE SESSION
An executive session was called to order at 12:11 PM to review the executive session meeting minutes, the aging report, governing document enforcement matter(s) and a legal matter. The meeting was adjourned at 12:29 PM.
Page | 5
Board of Directors Meeting, Open Session