BOARD OF DIRECTORS MEETING MINUTES
October 25, 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, October 25, 2022, via Zoom. A quorum of Board Members was established, and Mr. Engle called the meeting to order at 10:03 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
MOTION Mr. Engle made a motion to approve the September 20, 2022, meeting minutes as prepared. Ms. Schneider made a second to the motion, which carried unanimously.
APPROVAL OF MONTHLY FINANCIAL REPORT | CD RECOMMENDATIONS
The September financial report was reviewed.
MOTION Mr. Engle made a motion to accept the September financial report. Mr. Chipman made a second to the motion, which carried unanimously.
MOTION Mr. Engle made a motion to accept the Treasurer’s recommendations for the investment of reserve funds ($200,000 in a CD maturing April 13, 2023; $200,000 in a CD maturing March 31, 2023; $67,000 in a CD maturing February 7, 2023). Ms. Bagley made 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 study is accepted as presented.
The Board would like to add an additional component to the 2024 study, “Building Integrity.” Some additional changes (for the 2024 study) to be 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 second phase is complete. The Board will plan on having additional manometer surveys performed within the next 2 years in the areas that appear to be experiencing downward movement. 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 accepted the proposal issued by structural for this project. Mr. Schneider and Mr. Bagley will assist with the project. Ms. Schneider will 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.
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. Repairs to the (superficial) cracks on the concrete floor, by ProTec, are in progress.
Phase III The Board agrees to embark on this effort now (versus following the completion of the sundeck project). A proposal by FWC was considered. A second will be pursued from KCE Matrix, Inc.
3. 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. Based on what was found, proposals for the repair work were issued by Ewell. They were presented to FWC for feedback. Considering that feedback, Ewell had to return for another visit, to take a closer look at the flashing and doors on both Units to narrow down what the needs are for each. That visit was performed on October 13. At this meeting, the Board reviewed the supplementary proposal Ewell issued, based on the findings from that follow-up visit. FWC will be asked to comment on the source(s) of damage to the balconies.
4 Entryway Light Fixtures The effort to locate replacement fixtures for the entryways remains in progress.
5. Fire Sprinklers Repairs in Units Fire sprinkler repairs are pending in Units 113, 305 and 517.
6. 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 prepared color scheme ideas/renderings and performed a job walk with companies that were invited to bid on the job. The Board reviewed the proposals submitted.
MOTION Mr. Engle made a motion to proceed with the project, to include painting wood and stucco surfaces. Ms. Bagley made a second to the motion, which carried unanimously.
The contractor(s) will be asked to amend their estimate(s) to exclude painting of railing/metal surfaces.
7. Gym Reopening Mr. Chipman prepared the platform to be used for making gym reservations. The new rules/procedures and reopening date will be announced. (Member) Ms. Santini volunteered to assist Ms. Schneider with facilitating the reopening of the gym.
8.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.
9.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 is taking time to examine the proposal in detail, to be followed by a conversation on implementation.
NEW BUSINESS
- 2023 Operating Expense Budget, Designation of Monthly Assessment Rate The Board reviewed a budget proposed for 2023. Each line item was considered in great detail.
ADJOURNMENT | CONFIRM NEXT MEETING DATE
The meeting was adjourned at 11:25 AM. The next meeting of the Board is scheduled to take place on Tuesday, November 15, 2022, 10 AM via Zoom.
EXECUTIVE SESSION
An executive session was called to order at 11:26 AM to review the executive session meeting minutes, the aging report and governing document enforcement matter(s). The meeting was adjourned at 11:50 AM.