ColonialVillage I, A Condominium
August 29, 2007 – Minutes
(Next Meeting: Thursday, September 27, 2007)
The August CV1 Board meeting was convened at approximately 7:00 PM. Present were five board members (Geoff Schwartzman, President; Neil Chritton, Vice President; Chuck Edwards, Treasurer; Michael Cardman, Director-At-Large; and Mary K., Secretary); David McPherson, Condo Manager; and one resident.
1)Minutes – The July minutes were approved, and will be posted for review on the CVI website ( as well as in the residential building hallways.
2)Homeowners’ Forum – No issues were raised by the resident in attendance.
3)Treasurer’s Report –
a)Chuck Edwards, Treasurer, reported finding a CVII item erroneously miscoded to CVI. CMI has been notified of the error, and will recredit the CVI account. Chuck advised the Board that another previously miscoded expense (re: CVII termite treatment) has been recredited to the CVI account.
b)Chuck noted a recent increase in the number of move-in fees collected (due in large part to increased vigilance at the CVI office), but stated that CVI is still losing money because so much bulk trash is being deposited by residents (generally either moving in or moving out). Bulk pickups cost $250 each, so the present $100 move-in fee is not covering these expenses, resulting in budget variances that must be passed on to residents and owners in the form of increased fees. (The Board later discussed this issue further,and approved an increase in the move-in fee, as noted under ‘New Business.’)
4)Landscape Committee –
a)Integrated Pest Management (IPM) Proposal - Chuck Edwards, Landscape Committee Chair, noted that the azalea leaves are turning white due to pest infestation. Chuck stated this underscored the need for anintegrated pest management (IPM) program, which would help the current plant stock survive, help keep the property beautiful, and enable the Association to have a more cost-effective landscape program. Chuck presented proposals forwarded by Bartlett Tree Experts (who have provided tree and landscape care throughout CVI), with either 5 or 6 IPM visits per year, and varying fertilizer schedules ($4800 for fertilizing plant stock every two years, vs. splitting the fertilization schedule in half, but costing $900 more). The Board discussed the options, and unanimously approved a proposal for 5 IPM visits per year at $8000, and fertilization of the plant stock every two years at $4800, totaling $12,800 for 2008. (Because fertilizing would take place only every two years, cost would only be $8,000in 2009, not counting inflation.)
b)Tree Pruning – Chuck Edwards (who has extensive experience in landscaping issues) personally performed at least $1,000 of tree pruning throughout CVI. The Board wholeheartedly thanks him for his efforts and dedication to keeping the CVI community healthy and beautiful, while curbing costs wherever possible.
5)President’s Report -
CV West Issues - Following up on discussions the last few months about trash and lighting issues at Colonial Village West, Geoff Schwartzman reported that he mentioned in an Arlington Co. meeting that the community had concerns about trash there (broken/unlidded containers attracting vermin), unmaintained lighting (recently repaired by CVI in order to address safety concerns), and indications that not all residents at this Arlington Co. affordable housing complex were employed in Arlington (given the presence of 5 DC taxis). The County responded quickly to these concerns: the trash is now off the street, new trash receptacles have replaced the broken ones, and the County is working to ensure that all taxis that are the property of residents display an Arlington Co. decal. Dave McPherson, CVI condo manager, also reported that Colonial Village West recently advised him that they are sending CVI a reimbursement checkto cover the costs that CVI accrued in repairing the CVWest light pole. The Board thanks Arlington Co. for their prompt response in helping to address these issues.
6)Manager’s Report –
a)Financials - Assessment income and other income was $2,935.84 above that projected for the month of July, at $47,837.84, but CVI had a negative budget variance of $2,125 for July, due primarily to electrical repairs/replacements in the common areas of the Association. Included in disbursements is the monthly contribution of $7,858.33 to Replacement Reserves.
Mary K. noted that a joint money market account (of the CV Associations, for common expenses) and a CVI money market account are earning low interest (0.40% and 2.75%, respectively). Mary forwarded information about a new ING Direct business account (appropriate for condo associations) which is currently earning 5.0% APY. ING Direct accounts are FDIC-insured. David will contact ComSource Management to look into the matter further, and determine whether this (or other alternative banking options) are available/appropriate for CVI.
b)Independent Auditors’ Report, FY 2005 and 2006 – Dave McPherson presented to the Board a newly received (but draft) version of the CVI independent auditors’ report for FY 2005 and FY 2006. The Board unanimously deemed inexcusable the amount of time that had elapsed between the end of the two fiscal years, and receipt of this draft version from Geimer, Ehrlich and Associates, PA (CVI’s independent auditors for the past ten years or so). David reports that he recently had to furnish a copy of the 2004 audit report to a real estate agent, since there is, to date, no final audit report for 2005 or 2006. The Board did unanimously vote to adopt the auditors’ report, but David will convey to the auditors the Board’s considerable dissatisfaction about the significantly delayed reports, and will request a final copy be provided ASAP. He will also advise the auditors that he will be requesting bids from other independent auditors for FY2007, and that their company will need to bid for the job like everyone else. Once the final report is received, it will be posted as part of the resale packet, and will be mailed out with the materials for the CVI annual meeting in the coming weeks.
c)‘Cash Flow’/Operating Reserves Issue – The draft auditors’ report for FY 2005 and 2006 revealed that the ‘cash flow’ issue first noted in the July board meeting (due to lack of an operating reserve; large unexpected or front-loaded expenditures such as landscape and tree work, or emergency repairs; and large quarterly expenses such as water and sewer bills) have become a growing issue over the past two years. Essentially, it has created a carryover operating deficit. To clarify, CVI has adequate monies in its capital reserves to cover budgeted and emergency expenditures and infrastructure maintenance items; however, due to lack of an operating reserves line item (to cover operating expenses), an increasing budget variance is being carried over from year to year, skewing the actual budget expenditures for each fiscal year. The Board discussed various ways to ameliorate the problem, and building on last month’s recommendation that CVI build in anoperating reserveline item starting FY 2008, it also discussed splitting the $94,300 annual reserve contributions (made on a monthly basis) for a few years, such that 50% would continue to go to replacement reserves, and the other 50% would be further split (with $10,000 going towards funding the a newly creatingoperating reserves line item, and $35,000 going towards paying down the carryover operating budget). The Board believes that this will address the carryover variance issue while still adequately funding the reserves, and permit the creation of an operating reserve to prevent this problem in the future.
d)FY2008 Budget Draft – The Board briefly reviewed an unofficialfirst draft of the proposed FY2008 budget, as prepared by David and Chuck Edwards, using YTD expense figures, anticipated increases in water/sewer, and inflation. The Board will continue these efforts in a concerted way in the September Board meeting. It was noted that, to a very large degree, there is very little discretion in developing the budget, as most expenses (utilities, contracts, maintenance, payroll, taxes and insurance, administrative and reserves) are dictated by prevailing rates and community needs, but every effort will be made to trim costs wherever possible.
e)2008 Resident Handbook – The 2007 CVI Resident Handbook, now in its second printing, has been very well received by unit owners and residents alike. While it is available online at the CVI website, the Board decided to continue making hard copies available (one per unit) every year either the Handbook is updated and/or there is a change of residents at a unit. Chuck Edwards, editor/author of the first edition, is currently working on the 2008 edition. The Board identified and discussed possible additions and changes. In order to keep postage costs down for the Association, every effort will be made to include the 2008 CVI Resident Handbook in the mailing with the annual assessment notice, which is mailed in December.
f)Concrete Repairs–Portugal Construction forwarded a proposal to remove and replace failed portions of the storm drain in the parking lot behind 1903 N. Key; repair/replace the storm drain top at Key and Rhodes; and repair and replace 21 other sections of cracked sidewalks/entrance walks and trip hazards throughout CVI. Total cost for the project is $11,103.00, which is considered very reasonable for the scope of the work to be performed. The Board unanimously approved the proposal. Work will commence soon. Replacement of the broken storm drain in the parking lot at 1903 N. Key will precede parking lot resealing (cf. below).
g)CVI Parking Lot Resealing – Three proposals were forwarded to the Board for review re: resealing the parking lot behind 1903 N. Key. (This was last done about 10 years ago.) Two bids covered two sealcoat applications (recommended); a third covered only one. The Board unanimously approved the bid by Dominion Paving and Resealing for crack sealing and applying two sealcoats to the parking lot surface, and restriping the parking lot, for a total cost of $2,382.00 ($1218 less than the comparable double sealcoat proposal). Work will begin as soon as practical after the parking lot storm drain is repaired/replaced and cured (~ 48 hours after completion).OF NOTE: the CVI parking lot will need to be completely vacated for three days in late Sept/early Octoberin order for the sealcoating and parking lot restriping to be completed. Notices have already gone up in residential hallways advising residents of this issue. Residents who park in the back lot will need to park elsewhere while the work is being performed. Residents are encouraged to explore alternate parking options for these few days NOW (e.g., parking at work, friends’ homes, etc.). Meanwhile, David will explore with the County whether residents might be permitted to park overnight in a nearby alternate location (e. g., the Courthouse parking garage, as long as the spaces are vacated by morning) while work is underway.
h)Search for Water Intrusion at 1917 N. Rhodes St.–While inspecting the 1917 N. Rhodes boiler room with DidierFollain-Grisell, CPD of CFR Engineering, the possibility surfaced that the water intrusion thought to be a leaking county water pipe could be a leaking sewer pipe. David states he intends to ask ArlingtonCounty to check its mains on Lee Hwy to see if there is evidence of leaks. CFR Engineering has proposed to do a peppermint test (that would involve pouring some highly concentrated peppermint down a toilet to see if the smell could be detected through the wall), but this would run $6,000. Chuck recalled George Hedrick, the former property manager, mentioning that there had been sewer trouble at the end of N. Rhodes some years ago. David also noted that a large sinkhole opened up on N. Troy not long ago, when underpinnings of an old sewer line gave way.Neill suggested contacting the same water testing labs that David was planning to contact to conduct chlorine testing (inferring a water main leak, as chlorine does not occur naturally in the environment) to see if they could also test for the presence of e-coli (which would suggest a sewer leak). The Board unanimously authorized David to pursue these leads, and secure two or three water quality tests by independent labs at likely$200-300 each, not to exceed $1,000.00. David will follow up on these recommendations and directives.
i)Insurance Renewal – The State Farm master policy is coming up for renewal on September 26. Last year, The Board expressed interest in exploring whether other insurance companies could provide equal or better coverage at better rates, but the renewal date came up too quickly to obtain sufficient bids for review and consideration. David reports that CAU, USI, the Chubb Group and Nationwide have package master policies that may be appropriate for CVI. David will pursue bids from these companies and present information to the Board via email (as the next Board meeting will be after the renewal date).
7)Old Business -
a)Verizon Communications FIOS Installation Project – David has advised Verizon that CVI had a preliminary asbestos survey performed on the CVI basements, crawlspaces, etc. and that no asbestos was found except in the large boiler room on 1917 N. Rhodes. Brooks Environmental is to return on Friday, August 31 to perform a follow-up asbestos survey (approved by the Board last month) to determine as definitely as possible whether there is any additional asbestos in the property that would require abatement. David has authorized Verizon to start surveying CVI in order to proceed as expeditiously as possible with the planned FIOS installation throughout CVI. Verizon already completed their survey of CVIII, and it is hoped that this will help them to determine effective ways to install this new technology in CVI as well.
b)Tuck-Pointing Project - The next phase of tuck-pointing mortar repairs (prioritized in order of buildings most in need of tuck-pointing repair) is anticipated to begin next month at the pod of buildings at 1900, 1904, 1908-1910, 1802, 1804, 1906 and 1916 N. Rhodes. The Consolidated Engineering project manager examined the identified buildings, and saw potential for ‘spot tuck-pointing’ approximately 4,000 linear feet of brickwork. Chuck noted that a previous walk-through also identified tuck-pointing needs at 1801 and 1805 N. Key, where some brickwork was previously caulked (not a recommended method). Chuck states that CVI has some original brick that can be used to replace any damaged bricks. This work will be paid for out of reserves.
c)Laundry Contract Renewal –David reports that Coinmach management has been on vacation and has not been available to produce a necessary W-9 form, thus slowing efforts to move forward with the new laundry contract that was signed at the July Board meeting. Coinmach is to replace all current washers and dryers with brand-new, high-efficiency machines, and will also disburse a $20,000 ‘decorating fee’ to CVI to use as CVI sees fit. David circulated a ‘wish list’ of improvements forwarded by Lewis Brown, CVI Maintenance Engineer (including repainting the walls, replacing the sinks, bulletin boards, and folding tables, etc.), but several Board members noted that the blistering, peeling paint on at least the exterior walls of 1909 Key Blvd. indicate a likely moisture problem that might require waterproofing first. One of the large wash tubs in the 1909 laundry room has very unstable legs. The Board recommended that the two wash tubs at that location be replaced immediately. The Board elected to hold off on designating any further improvements until the moisture situation could be better assessed. Improvements would be paid for from decorating reserves.
d)Gutted ‘Laundry Room’ at 2021 Key Blvd. – Given the lateness of the hour, the Board decided to postpone discussion of possible uses for a former laundry room that is adjacent to the CVI Meeting Room, 2021 Key Blvd. for a future meeting.
8)New Business -
a)Copper Phone Line Maintenance Policy – A Unit owner recently contacted CVI Management, advising that her resident did not have a working phone line in her unit, and requesting that CVI cover the expense of repairing the copper phone line (when, in fact, it could not be determined whether the problem was in the common elements at the line box, or in the part of the line that is the owner’s responsibility). Verizon is also not readily repairing copper phone lines, since copper lines are becoming obsolete in favor of cable and FIOS communications. Complicating matters at CVI is the manner in which the copper lines were initially installed in the walls: it was run directly through the mortar without being encased in conduit and then stapled to the studs, so it cannot be pulled out and replaced easily. However, every CVI unit is cable-ready (thus supporting phone service through Comcast, the local cable company), and Verizon is actively preparing to install FIOS throughout CVI in the very near future. Management advised the unit owner (upon consulting with the CVI attorney) that CVI can provide access to the common elements so a private contractor of the unit owner’s choosing could attempt repair of the lines, but the copper phone lines are deemed part of the unit,phone service is available to every unit via cable service, and thus CVI is not mandated to maintain functionally obsolete material that Verizon is essentially no longer repairing either.