CORCORAN MEWS CONDOMINIUM ASSOCIATION

Quarterly Board Meeting
May 9, 2007

Attending:
Board Members:
Kassie Lynch – President
Tim Foley – Vice President
Jeff Hertrick – Treasurer
Wayne Maffet – Member-At-Large
Salman Anees – Secretary

Property Management – Tilton Bernstein Management:
Cheng Sithole – Property Manager (202-232-5247 ext. 21)

The meeting was called to order by President Kassie Lynch at approximately 6:35 PM in 1748 Corcoran Street, # 3B Washington, DC 20009 (President's residence).

Reading of the previous meeting Minutes was dispensed with.

Management Report

• The meeting started with a general discussion of delinquencies. A few delinquencies came in for particular mention for their prolonged nature or because the amounts are unusually high.
• Cheng was also asked to look into other delinquencies and contact unit holders to request immediate clearance of arrears.
• MOTION: Accelerate condo fees for 2007 for a unit holder who has had substantial arrears over a prolonged period (Moved by: Tim; Seconded by: Wayne; Unanimously passed).
• Another delinquency appears to be related to an emergency repair by Noyes that was necessitated by an error by the unit holder's contractor. In this case, CMCA had paid Noyes and is looking to the unit holder to reimburse CMCA for costs of Noyes' service. Cheng will communicate the following principle to unit holder and the CMCA Handbook will be updated accordingly (if necessary): Work done by contractors of individual units may cause damage to CMCA property. Any costs associated with such repair are the responsibility of that particular unit holder. All contractors should be adequately insured as is laid out in the CMCA Handbook. Again, verifying the credentials of a contractor is the responsibility of an individual unit holder.
• Weldon is no longer working for TBM. Linda is the temporary replacement.
• Maintenance: The condition of gutters needs to be checked. There should be rolling maintenance—twice a year.
• CMCA needs a comprehensive assessment from Noyes as to why the A/C failed and also why the drain has been clogged.
• Replacing Noyes by another contractor was discussed. It was agreed that a few other bids would be requested.
• MOTION: Seek bids for HVAC etc. maintenance from other contractors such as CBS, ACI, and Capron). (Moved by: Tim; Seconded by: Wayne; unanimously passed).
• The Board also discussed the possibility of replacing the current HVAC system by a more contemporary system. It is expected that such a system might be expensive but there was a sense that an appraisal might be requested in the future.

Old Business

• A contract from AMS Restorations Services for exterior painting was discussed. CMCA board members asked Cheng to make sure that there is a guarantee from AMS regarding sealing of the paint. In addition, Cheng was asked to request AMS to provide an estimate for window sill repairs.
• Water shut-offs in a/c season was discussed (whether it should be done at night or day). Since any major events of this nature are rare, it was decided that a case-by-case approach would be followed.

New Business

• Jeff discussed the investment options available to CMCA for the reserves which are currently in excess of $120,000. Currently, the reserves are in two money management accounts earning interest in the 4.5% to 5.5% range. However, these types of accounts are not without risk and are not insured. Jeff indicated that certificates of deposit (CDs) would provide a return in the 5% range and would also be insured up to $100,000 and would be liquid enough to be withdrawn during an emergency without a penalty as may happen in the case of ordinary CDs. Given that CMCA expects substantial expenses for exterior painting and window sill repair, Jeff recommended that part of the CMCA reserves be transferred to a 6-month CD.
• MOTION: Move $75,000 of the reserves to a 6-month CD with the current bank (Moved by: Tim; Seconded by: Jeff; unanimously passed).
• On a related note, Jeff informed the Board that CMCA's auditors believe that the reserves need to be beefed up especially in light of a $19,000 budget overrun in 2006 (that was due to one-time costs associated with events such as storm damage). Since exterior painting and window sill repair is expected to draw down the reserves by about $35,000, the reserves need to be replenished. The Board discussed whether this should be done by a one-time assessment or by an increase in condo fees. The Board decided to put the matter up before the annual shareholder meeting later this year.
• The underfunding of budget insurance coverage and Board of Directors was discussed as was embezzlement insurance. TBM will request quotes from insurers for expanded coverage options.
• A general discussion of possible investments in better insulation of units came up. However, given the substantial investments in painting, etc., for this year, this proposal was deferred indefinitely.
• The failure to seal rat holes came up for discussion. It appears that contractors have not done their jobs satisfactorily. As a general rule, board members asked TBM to make sure work done by contractors is according to the request made. Otherwise, repeat visits by contractors for the same job can lead to cost escalation.
• CMCA Handbook revision was discussed. Wayne and Salman were asked to review the handbook to see if any updates were necessary.
• Cheng was asked to arrange for routine inspection of trees.

President moved to adjourn the meeting. All present agreed.

Motions

(1) All owner-initiated plumbing work will be coordinated with Noyes through T-B. For any work that cannot be done by closing the unit's internal water shut-off and requires shut-off of the main CMCA water system, A REPRESENTATIVE OF NOYES MUST BE PRESENT. THIS REQUIREMENT HOLDS IN EMERGENCIES AND IN INSTANCES WHEN A PLUMBER ALREADY ON SITE TO DO REPAIRS DISCOVERS THAT A SYSTEM SHUT-OFF IS NECESSARY. T-B must be notified immediately so that a Noyes representative can be summoned. The associated expenses will be the responsibility of the unit owner, not the Corcoran Mews Condominium Association.
Motion by: Jeff Hertrick
Seconded by: Wayne
Vote: 3-0-0 Board

Below is a list of e-mail motions passed by the Board between its formal meeting of November 2006 and the meeting of February 7, 2007

Motions

(1) Accelerate condo fees for 2007 for a unit holder who has had substantial arrears over a prolonged period.
Motion by: Tim Foley
Seconded by: Wayne Maffett
Vote: 5-0-0 Board

(2) Seek bids for HVAC etc. maintenance from other contractors such as CBS, ACI, and Capron).
Motion By: Tim Foley
Second By: Wayne Maffett
Vote: 5-0-0 Board

(3) Move $75,000 of the reserves to a 6-month CD with the current bank.
Motion By: Tim Foley
Second By: Jeff Hertrick
Vote: 5-0-0 Board

Submitted by:
Salman Anees
CMCA Acting Secretary