THE BOARD MEETING OF THE
555 ESPLANADE CONDOMINIUM OWNERS ASSOCIATION
September 20, 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, September 20, 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 6:41 PM.
BOARD MEMBERS PRESENT
Joe Engle, President; Betty Schneider, Treasurer; Dianne Merzel, Secretary; Frank Parker, Member-at-Large.
BOARD MEMBERS ABSENT
Jake Murray, Vice President.
MANAGEMENT COMPANY REPRESENTATIVE(S) PRESENT
Ellona Hess of Scott Management Company (SMC)
FINAL OPPORTUNITY TO SUBMIT CC&R AMENDMENT BALLOTS – BALLOT COUNT
A quorum of ballots was announced to have been received – 41 total. The tabulation of the ballots was adjourned until October 18, 2010 to allow for more time for Owners to submit their ballots.
APPROVAL OF MEETING MINUTES
Betty Schneider made a motion to approve the August 09, 2010 and September 02, 2010 minutes as presented. Dianne Merzel 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.
TREASURERS REPORT
Ms. Schneider reported that she spoke to the Association’s accountant regarding a carried $36,000.00 inner fund amount that Reserves owes to the Operating account for the last two years. The accountant recommended that the Board make a motion to transfer the equity, to make a bookkeeping entry and make this “carried fund” go away, rather than to actually transfer funds and draw the Reserves down. Ms. Schneider made a motion to accept the CPA’s recommendation. Ms. Merzel made a second to the motion. The motion carried with all in favor.
Ms. Schneider questioned the amount being posted to the “Parking Income” budget line item - $300.00 instead of $225.00 monthly.
HOMEOWNERS FORUM
· Unit #109 – Mary Lee Coe: Ms. Coe reported that her Unit is basically back in order and all repairs, resulting from the pipe leak, are almost entirely complete. The remaining issue is carpeting. Ms. Coe reported further that while ServPro was removing items from the kitchen, prior to beginning repair work, they found a warped board underneath the kitchen sink. This damage was caused by an old leak of the garbage disposal which Bert Meli took care of when discovered. ServPro brought this area to the attention of a Board Member and Ms. Coe, specifically, concern that mold might be present. Ms. Coe authorized an examination and testing of the area. The results of the inspection were that no mold was found. The damaged board has been replaced with a new one.
· Unit #620 – Edna Marinella: Ms. Marinella reported that Bert Meli visited her Unit and replaced the transfer valve underneath her sink so that all Units in her stack continue to receive almost instant hot water.
· Unit #315 – Mark Drale: Mr. Drale expressed his concern regarding the leak(s) that caused water intrusion into his Unit at the beginning of the year.
· Unit #303 – Lynne Santini: Ms. Santini advised that she has trouble using the new intercom system at the 535 entryway.
· Unit #619 – Harriet Hollis: Ms. Hollis questioned whether or not the agenda item “Garage Driveway Entrance/Exit Repairs” would address the issue of the scraping of the vehicles when entering/exiting the complex.
OLD BUSINESS
· 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 at the August 2010 meeting 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. The Board’s recommendation to the representative (Homeowner Ed Schneider) working on this project is to contact the two contractors who have to date bid on the project and find out their ideas on proceeding with the project.
· 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. Ellona Hess has contacted the company who installed the aluminum railing in the complex in approximately 1986. Their proposal to replace the front entryway handrails with aluminum instead of wood is still pending. Ms. Hess and Ms. Schneider are working on this agenda item.
· Plumbing Repairs/Replacements – Review Recommendations/Bids: The Board reviewed the proposal submitted by Bert Meli Plumbing to complete the following service: 1) Install wye strainer in water main before “RP device”. The strainer is for the water entering the building so that it does not clog the backflow valve. This will save the Association money because it will extend the useful life of the backflow valves. The Board requested at the August Meeting that Bert Meli Plumbing provide additional information on this quote, specifically, how often the strainer will need to be cleaned. Bert Meli advised that it would be cleaned annually, along with the annual maintenance to the sump pump. Ms. Schneider made a motion to accept the proposal submitted. Dr. Parker made a second to the motion. The motion carried with all in favor.
· Sump Pump for Water Intrusion into G-2: At the August 2010 meeting the Board reviewed the two bids submitted to install a sump pump to address the water intrusion into G2/G3. Mr. Schneider recommended at the August 2010 meeting 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. The installation of this sump pump will follow the Driveway Repairs (discussed earlier in the meeting).
· 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 reviewed by the Board and the proposal for repairs was approved at the August meeting, pending the company submitting a revised bid, stating what the Association’s cost would be to resurface the deck membrane surrounding the flashing work on the deck of 517 and 619, and the cost to resurface the rest of the deck – which is only a recommendation of the contractor and would be the Homeowner’s responsibility. The Board also requested that Ewell Construction confirm the 5 year warranty will not be affected if the Homeowners do not elect to resurface their entire deck. Ewell Construction responded advising that the warranty on the stucco/flashing repairs would be a one year warranty, but if the Homeowners elected to resurface the rest of their deck, the warranty on all repairs completed would be for five years. A motion was made to accept the revised proposal submitted by Ewell Construction. Dr. Parker made a second to the motion. The motion carried with all in favor. The Board would like Ms. Hess to contact the Association’s attorney regarding whether or not the Association has the right to notify prospective buyers, during the escrow process, of the Homeowner’s selection not to resurface the rest of their deck, if that is the route they take.
· Special Assessment Projects - Update: The following updates were given regarding The Garage Area – Power-wash/Re-stripe/Replace Trash Room Doors:
§ The Board approved the proposal submitted by Hydro-Kleen at the August meeting. The contractor came out to re-inspect the garage areas so that he could recommend different options for how the washing/re-striping should be handled in the most convenient way. The contractor submitted a revised proposal to allow for separated days of power washing and striping, so that not all cars would have to be taken out of the garage at the same time. Ms. Merzel made a motion to accept the revised proposal as submitted. Ms. Schneider made a second to the motion. The motion carried with all in favor. This project will take place in November, in different phases. A notice regarding the scheduled dates will go out with the November monthly statements.
The following report was given regarding The Northwest Balconies Project:
§ Ms. Schneider reported that she received the base repair drawings back from PV Engineering and will be taking them down to the City for the “Plan Checker” to review.
§ The continuation of the rest of the project is on hold right now, pending the review of CMS’ attorney on the Association’s refusal, per the Association’s attorney, not to sign the “Hold Harmless Agreement” in regards to the replacement of the sliding glass doors and pans for Unit #s 103, 205 and 305.
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. The replacement of the wall will follow the Driveway and Sump Pump Project (discussed earlier in the Meeting).
NEW BUSINESS
· Homeowner Comments submitted via new Website: No Homeowner comments submitted via the new website were forwarded to the Board for review. The Board announced that the draft minutes of the meeting are posted on the website so that Homeowners have the ability to read what happened at the meeting without having to wait until they are approved.
· Annual Tree Trimming – Review Quotes: The Board reviewed the proposal submitted by Rancho CA, to perform the annual tree trimming service. Ms. Schneider brought to the Board’s attention that the quote submitted is $100.00 more than last year’s, with two palm trees less to trim! Ms. Hess will review this note/concern with Rancho CA and will request a revised estimate.
· Common Area Carpet Cleaning – Review Quote/Schedule: The Board reviewed the proposal submitted by A Plus Carpet Care, to perform the semi-annual carpet cleaning of the common area hallways. Dr. Parker made a motion to accept the proposal as submitted. Ms. Schneider made a second to the motion. The motion carried with all in favor. The Board would like the cleaning to be scheduled for as soon as possible.
· Fire Sprinkler Pipe Repair: The Board reviewed the proposal submitted by Fire Safe, to replace a portion of a fire sprinkler pipe in G2. Dr. Parker made a motion to accept the proposal as submitted. Ms. Schneider made a second to the motion. The motion carried with all in favor.
· 2011 Annual Budget - Review: Mr. Engle advised that he and Ms. Schneider met today and reviewed the Association’s expenses for the year, and the projected expenses for the rest of the year. In accordance with this information, along with past history, a draft budget was prepared. The budget prepared incorporates an increased total expenditure amount for the year, mainly attributed to an increase in utility payments (an increase of approximately 11%), and higher monthly reserve contributions. The earthquake insurance cover premium was reduced for the year, which helped, but still, the net affect of the various increases and decreases is that the Association’s daily operating expenses can not be covered with the income from the current rate of the Homeowner dues. Mr. Engle and Ms. Schneider presented two options to the Board for consideration: 1) An increase in dues, 2) A Special Assessment (to be paid off in 3 month installments, or in full). Ms. Merzel made a motion that the Board incorporate an allowance of $28,000.00 more into the draft budget prepared, so that the money is available for items such as water intrusion, plumbing, etc. and the Association would then not have to go back to the Owners for more money during the year. Dr. Parker made a second to the motion. Ms. Schneider stated that she does not feel that this “extra allowance” is a good idea and that the Board should keep the budget as lean as possible. The motion carried with three in favor and one against (Ms. Schneider). A survey (not a ballot/vote) will be sent out to the Owners with a copy of the proposed draft budget and requesting their response on whether they would like to pay the extra amount through a special assessment or through an increase of dues.
· 2011 Annual Meeting – Status Update: The Annual Meeting is scheduled to take place in November. Nomination forms were mailed to all Homeowners as the first step of the ballot/vote procedure.
· 2011 Reserve Study – Review: Ms. Schneider reported that she spoke with the specialist who prepared the study about the street side retaining wall component, which is being “under funded” per the reserve study and the bids received to date. The specialist will adjust the Reserve Study and will distribute copies of the new, corrected version. The study recommends a higher monthly reserve contribution rate, increase by $250.00 from 2010’s rate. Other than the above noted change, the study was approved.
NEXT MEETINGS
Monday, November 15, 2010, 6:30 PM: Annual Meeting.
ADJOURNMENT
Meeting was adjourned at 8:09 PM.
Submitted by: Ellona Hess
EXECUTIVE SESSION
The Board of Directors held an executive session to discuss pending violations.
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. 211; Email: [email protected]; Mail: Scott Management Company, PO Box 3159, Torrance CA 90510-3159). Calls/correspondence should reference 555 Esplanade/Casa Bahia.