River Place Owners’ Association

DRAFTMinutes from the Board of Directors’MonthlyMeeting

Held Thursday,September 8, 2011 – 5:30 PM

In Attendance – Board of Directors

M.J. Schmelzer – President, East

Robert Lesnick – Vice President, Parcel 5 (initially via telephone, later in person)

Sara Shahade – Secretary, Parcel 5

Troy Dibley – Treasurer, North (via telephone)

Pat Fairman – Director, West

Regrets – Board of Directors

Richard Villegas – President, Parcel 5

James McInerney – Director, South

In Attendance – Property Management

David Weinstein –General Manager

I.Call to Order

Board President M.J. Schmelzer called the September 8, 2011 meetingof the OA Board of Directors to order at 5:40p.m.

II.Approval of September 8, 2011 Meeting Agenda

MOTION: Ms. Shahade moved to approve theSeptember 8, 2011 meeting agenda as presented. Ms. Fairman seconded, and the motion was unanimously approved as presented by those Board members present(4-0-0, as Mr. Dibley had not yet joined the meeting).

III.Presentation by Tamera Teslovich – Vehicle Damage

On February 8, 2011, Ms. Teslovich parked her vehicle – a 2007 Subaru Impreza – inside one of the River Place garages and had to leave it for a prolonged period of time to have and recover from a surgical procedure. However, over the next several weeks, she regularly checked on the vehicle to assure it was secure. At the end of March 2011 – the first time she could move the vehicle while healing from surgery – Ms. Teslovich proceeded to pull her car out of the parking space when she noticed a significant amount of damage to the rear of the vehicle. Ms. Teslovich believes the repair of this damage – approximately $580 – is the liability of the association, as there is a leak in the garage structure above her car. Corrosive liquid has dripped onto her car and has eaten through multiple levels of paint. Ms. Teslovich has since kept a tarp on the car – provided by management on July 28th – and the corrosive liquid now drips onto the tarp instead of her car. Ms. Teslovich provided the Board of Directors with pictures of the damage to the vehicle, as well as pictures of the liquid that now drops onto the tarp.

Upon noticing the damage, Ms. Teslovich immediately contacted General Manager David Weinstein and Assistant General Manager Roderick Kitts to inform them. Management then provided her with a temporary parking pass to park her vehicle elsewhere. Ms. Teslovich has since attempted to contact the OA and East management offices on several occasions to provide the estimates to repair the vehicle damage, including in-person visits. However, OA Management does not recall these attempts, and management from the East Building has been unresponsive.

(Mr. Dibley joined the meeting via telephone at this juncture at 5:43 p.m.)

Ms. Teslovich also presented a friend whose car was also hit with dripping liquid in either June 2011 or July 2011. Although the guest’s car was not damaged, it needed a good scrubbing to remove the effects of the drip. The guest was present during the Board meeting and verbally attested to the accuracy of Ms. Teslovich’s comments.

Ms. Teslovich invited the Board to contact her doctor to explain why she could not drive the car for a period of time; and to contact the Subaru dealership that performs regular maintenance to her car, as they can attest to the timeframe of the damages.

IV.Approval of August 4, 2011 Meeting Minutes

At the request of Ms. Schmelzer, Robert Lesnick should be listed as representing himself.

MOTION: Ms. Shahade moved to approve the August 4, 2011 meeting minutes as amended above. Ms. Fairmanseconded, and the August 4, 2011 meeting minutes were unanimously approved as amendedby those Board members present(4-0-0).

ACTION: Ms. Schmelzer requested that, going forward, Mr. Weinstein disburse all draft minutes to the OA Board members immediately afterthey are received from the minutes company.

  1. Reports
  1. President’sReport byM.J. Schmelzer
  1. Cell Tower Update:
  1. Clear Wire is ready to perform the cell tower relocation on the East Building. However, the county approval process is quite lengthy. Therefore it may be 90 additional days before Clear Wire is permitted to move the cell tower. A court date is presently set for October 25th, which may arrive before the county makes its decision. Consequently, if necessary, the association will ask for a continuance.
  1. Legal counsel suggested that a statement be submitted to Mr. Nachtwey that he is ineligible to serve on the OA Board while suing another River Place entity. However, the Board agreed that a different approach may be more fruitful.
  1. The Presidents of all River Place Boards of Directors recently met concerning the redevelopment of River Place. They agreed that an appraisal of River Place would be a favorable next step.

ACTION: Ms. Schmelzer will work with Mr. Weinstein and Mr. Dibley to set a budget for the appraisal process and to select an appraisal firm.

  1. Board member James McInerney has missed several meetings. Therefore Ms. Schmelzer has found a candidate – Mr. Anthony Priest – who can replace Mr. Dibley until Mr. Waqas Ali becomes available in spring 2012. However, because of Mr. Priest’s schedule, the Board would have to change its meeting date to the second Wednesday or Thursday of each month. Board members also discussed the possibility of moving its meetings to either the third Wednesday or Thursday of each month.

ACTION: Ms. Schmelzer noted the availability of those Board members present on the various proposed dates, and will speak with Mr. Villegas and Mr. Lesnick offline to determine their availability (as Mr. Lesnick’s phone connection was broken at some point prior to this discussion).

  1. Treasurer’s Report by Troy Dibley
  1. As is their practice, Mr. Dibley recently met with Mr. Weinstein to review the association’s financial status report– this time for period ending July 31, 2011. The association is presently tracking under budget relative to its expenses.
  1. Mr. Weinstein is working with Zalco to improve the turnaround time for invoice processing.
  1. The association has saved money on garage maintenance by having the internal staff clean the garages on a regular basis rather than paying an outside contractor to do so.

ACTION: Ms. Fairman would like the Board to consider, in the event a warranty claim becomes necessary, what would stipulate acceptable proof of the staff’s efforts to clean the garage?

(Mr. Lesnick rejoined the meeting at this juncture, now in person, at 6:38 p.m.)

  1. Mr. Dibley has been in conversations with the OA’s Merrill Lynch representative concerning the association’s investment policy. The OA presently has a bit more liquid cash than funds in CDs.

ACTION: Mr. Dibley will inform the Merrill Lynch representative how much money the association will take from the reserves so that a portion of the remaining money can be placed into laddered CDs.

  1. Committee Reports

No committee reports were presented during theSeptember 8, 2011 Board of Directors meeting.

  1. Resolution Approvals
  1. Resolution 12-21 involves an initial payment of $160,000 toward the settlement agreement with Restoration East, Inc. (REI). Those Board members present signed the resolution, and Mr. Weinstein will ensure Mr. Villegas and Mr. Dibley also add their signature.
  1. Resolution 12-22 involves exterior improvements made to River Place West. Ms. Fairman raised that the language in the resolution is not correct, as the West Board was only requesting permission to use a particular paint color that would make the exterior of the West Building similar in color to the North Building.

ACTION: Mr. Weinstein will correct the language of Resolution 12-22 and will addthe numbers of the exact paint colors being requested by the West Building.

  1. Management Report/Old Business
  1. WP Garage Repairs: A settlement was reached during the August 16, 2011 mediation process. REI will correct and finish a variety of tasks as outlined in the “Settlement Agreement” and receive $160,000 within two weeks of the agreement’s ratification (Resolution 12-2 discussed above in Section VII.A within these minutes). REI will then receive a final payment of $70,000 upon completion of the work. Mr. Doug White of Thomas Downey will serve as engineer to oversee and review REI’s performance. Additionally, association attorney Ken Ingram will review an invoice recently submitted by ETC to determine if an adjustment can be made concerning travel time billed to the OA within the initial invoice.
  1. Entertainment Center: Mr. Weinstein again presented the proposal submitted by Carpet Designers, Inc. totaling $44,644.00 to furnish and install new flooring throughout the entertainment center. Mr. Weinstein has not received bids from Georgetown Carpet and Commercial Carpet, despite requesting such documentation.

MOTION: Mr. Dibley moved to approve the proposal from Carpet Designers, Inc. totaling $44,644.00 to furnish and install new flooring throughout the entertainment center. Mr. Lesnick seconded, and the motion was unanimously approved by those Board members present (5-0-0).

  1. Delinquency Report:
  1. As of September 8th, the association’s delinquency total was reduced to $15,160 – down from approximately $19,000 in the previous month. Mr. Weinstein explained the association received approximately$5,960.96 just prior to the start of the Board meeting. A few of the remaining delinquent accounts are near settlement, and management will continue to work with legal counsel to pursue resolution of all overdue accounts.

MOTION: After a discussion amongst Mr. Weinstein and the Board of Directors, Mr. Dibley moved to approve the waiving of $200 in late fees concerning parking space 184. Ms. Shahade seconded, and the motion was unanimously approved by those Board members present (5-0-0).

MOTION: Mr. Dibley moved to have legal counsel reissue parking space WP-331 to the owner of the space, with the caveat that the owner first pays allassociated fees and overdue assessments in full. Mr. Lesnick seconded, and the motion was unanimously approved by those Board members present (5-0-0).

  1. Entertainment Center Release Forms:Management now has 1,675 signed release forms on file in conjunction with use of the entertainment center.
  1. Exterior Signage:Mr. Weinstein received revised information from LED, one of the three vendors that bid to furnish and install enhanced exterior signage throughout River Place. Another of the three vendors has changed locations, and therefore is unavailable to handle the project.
  1. Parking Space Auction:There are presently six parking spaces that the association can sell in an auction. The Board will further discuss this matter during their closed Executive Session.
  1. Playground:
  1. Valleycrest submitted a proposal to relocate the existing playground equipment; conduct mulching; and install a chain link fence around the playground for a total of $27,299.64. Mr. Weinstein believes the proposal is quite high, but the Board commented the proposal is within the budgeted amount.
  1. The Board held a general discussion concerningvarious fence types and which would be best for River Place.
  1. Admiral Security Tour Wand System:On August 11th, Mr. Weinstein met with two representatives from Admiral Security concerning the Tour Wand system they have proposed for River Place. Mr. Weinstein has not heard from the representatives since that time, despite several attempts to reach them via telephone and e-mail. Therefore Mr. Weinstein contacted Allied Barton, who will send two representatives to meet with him on September 13th to discuss the pricing and installation of a Tour Wand system. Ms. Fairman inquired why the Tour Wand system must be installed by any company whose actual, primary aim is to secure a contract with River Place to provide guard/security services.

ACTION: Mr. Weinstein will research Tour Wand systems online to determine if the OA can order it independently of a security contractor.

  1. Gatehouse:HRI was set to begin tuckpointing the gatehouse earlier in the day. However, they were required to reschedule due to inclement weather. The work will begin as soon as weather permits.

(For other items not orally reported by management, see the prepared “September 2011 Management Report”.)

  1. New Business
  1. MP Garage:Although on the agenda, this matter was not discussed during the September 8thBoard meeting.
  1. Pool Fence: The selected contractor will visit the property during the week of September 11thto move forward with the pool fence work that will bring the association in compliance with Arlington County’s regulations.
  1. Water Link Break: Chamberlain Contractors, Inc. submitted a proposal to repair the damage created by a water line break that occurred on August 4th. Chamberlain’s best case proposal totaled $38,430. However, their worst case estimate totaled $62,720 in the eventsix inches of asphalt and six inches of stone must be removed to restore the road and parking lanes. Mr. Weinstein suggests the Board approve $62,720 to cover any unforeseen repairs that may arise during the removal phase of the project. Any additional costs above the $38,430 would be requested by Chamberlain via a change order not to exceed the $62,720 total. Mr. Weinstein also noted that Professional Striping & Paving submitted bids totaling $60,500 and $89,500, depending on the scope of work.

MOTION: Mr. Dibley moved to approve the contract with Chamberlain Contractors, Inc. for $62,720 to repair the damage created by the August 4thwater main break. Ms. Shahade seconded, and the motion was unanimously approved by those Board members present (5-0-0).

  1. Snow Removal Contract:Mr. Weinstein anticipates delivery of the signed snow removal contract from Valleycrest. However, he suggested the snow removal services could also be handled by on-site staff members Mario Sagal and Antonio Medrano; and that River Place could keep snow blowers, stakes, and other equipment on site for use.
  1. Arlington County Sewer Line:There are no new developments concerning this matter.
  1. West Building Exterior Paint Approval:This matter was discussed earlier during the Board meeting. See Page 3, Section VII.B of these minutes for details.
  1. Adjournment

TheSeptember 8, 2011meeting of the River Place Owners Association Board ofDirectors was adjourned at 7:44 p.m. The Board then proceeded into a closed Executive Session to discuss several matters.

The next Board of Directors meeting is presently scheduled for Thursday, October 6, 2011at 5:30 p.m. However, this date may change depending on the Board’s decision to amend its monthly meeting day.

Prepared and Submitted By:

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Sabrina Hilliard Hamm, Recording Secretary

The Professional Documents Service

Attested By:

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Sara Shahade, Secretary

Owners Association Board of Directors

Board Approval Date:

______

River Place Owners’ Association

DRAFT Minutes from the September 8, 2011 Board of Directors Meeting

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