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October Annual Meeting Minutes Colonial Village

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October Annual Meeting Minutes Colonial Village Powered By Docstoc
					                          Colonial Village I, A Condominium
                                    Annual Meeting
                              October 25, 2007 – Minutes

            Continuation of Board of Director Elections (to reach Quorum):
                       Wednesday, November 28, 2007, 7:00 pm

The Annual Meeting of the Unit Owners
                                                            Late News
Association of Colonial Village I, A
Condominium was called to order by
                                                As explained on p. 4, the absence
Geoff Schwartzman, President, at
                                                of the votes required for the
approximately 7:15 pm. Present were five
                                                annual election made it necessary
board members (Geoff Schwartzman,
                                                to suspend the counting of votes
President; Neil Chritton, Vice President;
                                                until the next meeting.
Chuck Edwards, Treasurer; Michael
                                                Subsequently, enough late votes
Cardman, Director-At-Large; and Mary
                                                were received to constitute a
K., Secretary); David McPherson, Condo
                                                quorum, so the votes will be
Manager; and eventually approximately
                                                counted and the election
twelve residents.
                                                concluded at the November
                                                meeting. Anyone who has not
1) Roll Call – Registration for voting
                                                voted and wishes to do so may
   began at 6:45 pm. The purpose of the
                                                submit their proxies at the office
   meeting was to elect three (3)
                                                before the meeting or submit
   members to the Board of Directors.
                                                them at the start of the November
   (Two of the terms were for three years;
                                                meeting. Please note, one
   one term was for one year.) As noted
                                                additional candidate — Lisa
   in the official letter announcing the
                                                Marie Martilotta – has submitted
   Annual Meeting, a quorum of twenty-
                                                her notice of interest as a write-in
   five percent (25%) of the ownership
                                                candidate. See attached.
   interest had to be represented in person
   or by proxy in order to hold the
   Annual Meeting (elections). Registration remained open throughout the meeting to
   accommodate any late arrivals who wished to cast their votes in person.

2) Proof of Notice of Meeting – A letter dated October 2, 2007, announcing the
   October 25, 2007 Annual Meeting, was mailed to every unit owner, along with an
   Official Proxy form (for residents to name proxies to vote in their name, if they could
   not attend); an in-person ballot card; resumes of the two candidates who submitted
   their names for office (Geoff Schwartzman and Neil Chritton, both of whose present
   terms of office were expiring); an important budget message, advising unit owners of
   an anticipated rise in assessments by 25% in 2008 due to the need for immediate
   asbestos abatement, and the need to rebuild the Association’s operating reserves after
   several unexpected plumbing, roof and electrical repairs over the past few years; a
   copy of the final draft of the FY2008 budget (for final vote by the Board at the
   October Board meeting, following the Annual Meeting); and a copy of Regulatory




                                            1              CVI Annual Minutes, 10/25/07
   Resolution 2007-1, Rules and Regulations Regarding Move-Ins, as adopted by the
   Board of Directors on August 29, 2007.

3) Reading of Minutes of Preceding Meeting – The Board reviewed minutes of the
   last Annual Meeting (Wednesday, October 25, 2006). Unit owners were reminded
   that Board Minutes are posted for review on the CVI website,
   www.colonialvillagei.com , as well as in the residential building hallways.

4) Reports of Officers and Board of Directors –
      a. President’s Report -
         Geoff Schwartzman prefaced his remarks by stating that, as unit owners
         themselves, the Board agonized over raising assessments so much in one year,
         but due to rising costs and looming infrastructure issues, and in an effort to
         avoid having to impose a special assessment to raise funds to move ahead
         with critical infrastructure issues, the Board saw no other choice. For a
         number of years, prior Boards held CVI assessment increases below the rate
         of inflation and failed to adequately fund the Replacement Reserves to address
         the issues that inevitably face historic buildings.
             Geoff referenced the letter in unit owners’ packets that announced an
         anticipated 25% increase in assessments (averaging approximately $50 per
         month per unit owner, depending on square footage) in order to cover
         emergency asbestos abatement (just discovered in the CV1 crawlspaces, and
         conservatively estimated to cost ~ $400,000 to remove); the need to rebuild a
         reasonable operating reserve after a few years of large, unexpected plumbing,
         roof and electrical repairs; and rising costs (such as a 15% rise in Arlington
         County water/sewer charges, to fund federally mandated water treatment
         improvements).
             Geoff explained that the Board has done everything in its power to rein in
         costs while addressing infrastructure issues and planning for the long-term
         future of the complex, but he estimated that 70% of the 25% increase was
         specifically earmarked to increase our contributions to the Replacement
         Reserves, to address critical infrastructure issues such as the asbestos
         abatement, tuck-pointing of the 70 year-old buildings, and replacement of the
         hot water heater recirculation lines (which are known to be worn); and the
         remaining 15% was to cover maintenance and utilities costs, and create an
         Operating Reserves. (Chuck Edwards, Treasurer, addressed some of these
         issues at greater length later in his report.)

       b. Vice President’s Report –
          Neil Chritton reported he had worked this year on improving the parking
          situation in CVI. Chuck added that Neil’s efforts have improved parking
          availability in the CVI parking lot, and Neil is currently working with
          Arlington County to try to extend Zone 4 parking along N. Rhodes (and,
          hopefully, then up N. Key) to benefit residents. (Efforts are ongoing.)




                                          2              CVI Annual Minutes, 10/25/07
c. Treasurer’s Report –
   Accomplishments - Chuck Edwards reported that this Board has addressed
   many infrastructure and landscaping issues that had not been comprehensively
   addressed for at least ten years. These have included:
        1) Completion of several major storm drainage repair projects, to
            address erosion issues such as those pictured in a “before” photo,
            circulated by Chuck, among those present. (The picture was taken
            behind a CVI residence where significant erosion had torn deep
            furrows in the soil and rotted the condenser pads. The erosion issue
            has been addressed, the lawn reseeded, and the condenser pads
            replaced.)
        2) Replacement of many dead shrubs and trees, trimming of large tree
            branches, and initiation of integrated pest management programs to
            preserve existing plant stock -- all within budget -- both beautifying
            the community, and avoiding expensive damage (e.g., penetrated
            roof membranes and windows, damaged cars and property, etc. that
            can result from tree damage) and avoidable demise of shrubbery.
        3) Replacement of hallway light fixtures throughout the complex.
        4) Repair/replacement of sidewalks where necessary, eliminating all
            known trip hazards. (Unfortunately, the mature trees along the
            roadway will likely continue to ‘heave’ sidewalks, but repairs
            allowed more room around the root balls to avoid this).
        5) Emergency plumbing and electrical repairs to address broken lines,
            sewer backups, flooded electrical boxes, etc.
        6) Emergency brickwork tuck-pointing at 1916 N. Rhodes not only
            restored the integrity of the building and addressed leaks that cost the
            Association (due to failure by a common element of the building),
            but also stopped any further leaks from occurring.
        7) Replacement of aging water heaters, at 1917 N. Rhodes, to ensure
            reliable hot water delivery.
        8) Raised/built platforms for hot water heaters at 1917 N. Rhodes, to
            prevent further infrastructure damage.
        9) Replaced worn hot water recirculation lines in one ‘pod’ of
            buildings (as proven necessary by a report obtained four years ago);
            planning to replace all others as soon as the budget permits.
      Projects – In terms of projects, Chuck noted:
        1) Asbestos abatement is a new CVI priority, now that a recent
            environmental study done in anticipation of FIOS installation in
            crawlspaces revealed that unencapsulated, friable asbestos was found
            in samples taken in the crawlspaces and boiler rooms. (It had been
            previously been believed that all asbestos had been safely
            encapsulated and undisturbed in the original renovation of the
            building in the 1980s.) The asbestos must be removed immediately
            in order to permit safe entry into the crawlspaces for future plumbing
            repairs, Verizon installation of FIOS, etc. Conservative estimates,
            based on a 2001 reserve study and recent local abatement projects,



                                     3              CVI Annual Minutes, 10/25/07
                    run about $400,000. Meanwhile, the crawlspaces are currently off-
                    limits to anyone (worker) who is not suited up in proper personal
                    protective gear (essentially, a ‘moon suit.’)
                 2) Tuck-pointing of brickwork – Areas of visual mortar damage (due to
                    age, exposure to elements, etc.) are evident towards the tops of some
                    north-facing buildings. Hand tuck-pointing is the only way to
                    prevent further deterioration and costly leaks. We are awaiting
                    estimates.
                 3) Hot water heater recirculation lines – The hot water recirculation
                    lines in one pod were replaced, at an approximate cost of $26,000;
                    another 4 pods remain. These need to be replaced as soon as is
                    financially prudent to avoid leaks.

5) Management Report –
       David McPherson pointed out that 70-year old buildings need maintenance and
   attention to infrastructure issues, and CVI has been no exception. By maintaining our
   roofs and trimming tree limbs, we have avoided leaks. We are addressing humidity
   concerns in the storage areas with dehumidifiers, and have taken preventative steps to
   avoid issues in residential buildings. Landscaping, concrete repairs, tree work,
   mechanical issues, maintenance, and aesthetics are all being actively addressed to
   maintain strong property values, located in ‘the hottest zip code in Northern Virginia.’
       David reported that the master policy alone (not counting the land) valued the
   CVI community at $20 million. (NB - Owners and renters, however, still need to have
   their own condo policies to cover their units and its contents.) David emphasized that
   maintaining the physical plant positions us well in terms of property value.
       To this, Chuck added that his assessment of the buildings and infrastructure is that
   the buildings and envelope were very well built, and they are sound. He noted that
   David, condo manager and Lewis Brown, CVI engineer, are very proactive in
   identifying and addressing issues early, and this helps protect our investments.

6) Homeowners’ Forum –
     a. Hallway Painting – A resident owner asked when the drywall patches in the
        hallways would be repainted. David reported that Management unexpectedly
        encountered difficulty matching the aging paint (the hallways were last
        repainted about 5 years ago, and paint colors can change over time), but
        efforts were underway to accomplish this. David explained that due to budget
        constraints, there were no plans at this time to completely repaint the
        hallways, as this would cost about $90,000, but the drywall patches would be
        repainted before the end of the year, and he understood the owners’ concern.
     b. Operating Deficit – Another owner asked about the operating deficit, and
        asked ‘how this could have been allowed to get to this point.’ Chuck
        explained that some of the Association’s largest expenses, such as tree
        maintenance and landscape costs, are ‘lumpy’ (i.e., coming all at once, such as
        in the Spring), while income comes in at a much more consistent rate (due to
        monthly condo fees). Income eventually catches up as the year progresses.
        Additionally, large, unanticipated, emergency plumbing and electrical repairs



                                            4              CVI Annual Minutes, 10/25/07
           have led to large expenses at unexpected times over the last few years. And as
           David McPherson pointed out, Arlington County has increased its water and
           sewer rates by 90% over the past 5 years (15% last year alone), which would
           have been impossible to anticipate.
               Chuck explained the difference between operating expenses, and reserves
           items. Routine or general maintenance expenses must be paid out of the
           operating budget; only capital improvement items meeting certain criteria
           (such as major plumbing replacement, or asbestos abatement) can be paid out
           of replacement reserves. While additional monies may be in reserves, they
           cannot be ‘borrowed from’ to pay operating costs. Audit firms monitor
           expenditures to ensure this criterion is being followed properly.
               CVI is actively working to eliminate its present cash flow problem
           through a multilayered approach: severely curtailing non-emergency operating
           expenditures through the 4th quarter FY2007; reclassifying some major
           plumbing repairs that required significant replacement of old pipe as capital
           reserves items (instead of Maintenance); and establishing an Operating
           Reserve and a Deficit Reduction line item (together totaling over $35,000),
           funded in large part with the $20,000 check expected from CoinMach as part
           of the new 7-year laundry contract.
               The present proposed assessment increase helps CVI avoid a special
           assessment (which has never been imposed on the community in its history,
           and is generally bad for property values). Once these projects are done and the
           reserves replenish, we should be positioned well for the future.

7) Election –
   Although another unit owner arrived at this point to cast her vote in the Election of
   Officers, it was determined that still only about 23% of ownership interest was
   represented, so CVI had not yet reached quorum. The Board elected to carry over the
   Annual Meeting until the next month’s meeting, in the hopes of reaching quorum at
   that time. David stated that this was permitted by the condo documents, and stated he
   would circulate notice of this among unit owners, encouraging owners who had not
   yet voted to come to next month’s meeting to vote and help CVI reach quorum so the
   elections could be held. David stated that in the meantime, the present Board will stay
   in office until the elections were completed at the next board meeting. (The new
   Board would take office after the November 2007 meeting.)

   Thus, the Board unanimously approved carryover of the Election of Officers to
   the November CVI Board Meeting with the hope of reaching quorum at that
   time. Any unit owner who had not yet voted in this election will be encouraged to
   cast their vote at next month’s meeting. Additionally, anyone who wants to write in a
   candidate for the third open seat (since only two names were on the original ballot) is
   invited to do so.

Adjournment - The Annual Meeting was adjourned, followed (after a five minute break)
by the October Board of Directors’ Meeting. All were invited to stay for the meeting.




                                            5              CVI Annual Minutes, 10/25/07

				
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