Fairlington Arbor
Board of Directors' Meeting

November 23, 1999

Board Members Present: Judith Greig, Tom McQuillan, Jincy Boerner, Gus Wescott, and Patricia Schoen (appointed during the meeting)

Management Present: Mike Maloney, CFM Management Services, and David Pollard, Facilities Manager

Ms. Greig opened the floor for Homeowner Forum by explaining the rules to address the Board. A homeowner, when recognized by the Chair, may speak once and will be limited to two minutes.

Mr. McKenzie took the floor on several occasions during the Homeowner Forum.

1. He first read from a prepared statement in opposition to the Association's purchase of the unit that is to be used as an onsite administrative office. Mr. McKenzie expressed the opinion that the expenses associated with the running of the unit (insurance and utilities) would be such as to require a special assessment. Mr. McKenzie accused Ms. Greig of lying to the community and asked for her resignation.
2. Mr. McKenzie asked what "problem" needed to be solved by the relocation of the onsite office facility. Ms. Greig responded that the space and health-compliance issues had been explained to the community verbally at the 1999 Annual Budget Meeting and the October Board Meeting as well as in several written communications.
3. Mr. McKenzie gave the opinion that the then Board had conducted a study and had adapted the poolhouse in error if it no longer adequately met needs and that the unit purchase was "another mistake." Mr. Pollard explained that no study had been conducted when the poolhouse building was adapted a number of years ago to allow for a small repair and maintenance facility. The office area had been partitioned off at a later date to accommodate expanding administrative activities that had not been anticipated.
4. Mr. McKenzie said it was his understanding that a ramp was to be constructed. Mr. McQuillan informed him that the Board was in the process of determining with the appropriate authorities whether the unit needed to be ADA-compliant and that if so, construction of a ramp might be part of the requirement. Mr. McKenzie said that the Arbor Bylaws required a community-wide vote on the construction of a ramp. Mr. McQuillan asked for the citation in the Bylaws. When Mr. McKenzie was unable to provide it, Mr. McQuillan suggested he call Mr. Pollard when he had identified the reference.
5. At the beginning of the Board Meeting, after the close of Homeowner Forum, Mr. McKenzie took a seat at the Board table, claiming that he could not hear the proceedings. After a ruling of out of order and three instructions to leave the table, Mr. McKenzie complied.

Ms. Costello objected to the reference in the November-December Arbor newsletter* to the possibility of litigation by a small group of co-owners. She said that (1) she had seen the letter from the attorney representing the group and did not interpret it as implying the possibility of litigation; and (2) in mentioning the possibility of legal action; the Board was fostering discord among members of the community. Mr. McQuillan responded that the Board had an obligation to be open with information that could affect the Association.

Ms. Johnson asked whether she could receive a copy of the most recent reserve statement. She expressed concern about the adequacy of the reserves and asked what provision the Board had made for the sale of the unit in the event that the reserves were depleted. Ms. Greig responded that given the very healthy state of the reserves, there was almost no situation in which they would be depleted. Mr. McQuillan asked Ms. Johnson if, as one of the group that has retained an attorney to challenge the unit purchase, she perceived any problem in speaking to the Board about the unit without her lawyer present. Ms. Johnson said that she did not. Mr. McQuillan then said that Ms. Johnson could receive a copy of the 1998 audited financials but that the independent auditors had not yet conducted the 1999 audit in which the unit purchase would be reflected.

Ms. Schoen, speaking after Mr. McKenzie (see Mr. McKenzie's third question), said that when the pool house had been enclosed, the purpose was to provide storage for what was then significantly less Arbor equipment and to allow a small area for minor repair jobs. She pointed out that there had been no need at the time to create office space.

Ms. Kerrigan asked how the Board would handle any legal expenses connected with the unit purchase. Mr. McQuillan responded that the legal expenses would be borne by the Association.

Ms. Kerrigan asked why the Board president was also the newsletter editor and said that in her opinion, these functions should be carried out by different people.

Mr. Kerrigan asked about the status of the office relocation. When asked by Mr. McQuillan whether he had reservations about the propriety of speaking with the Board, Mr. Kerrigan appeared surprised to learn that his name appeared as one of the group retaining an attorney to challenge the unit purchase. Upon Mr. Kerrigan's assurance that he had no problem speaking on the issue, Mr. McQuillan responded that Mr. Pollard was moving items from the poolhouse to the unit and noted that a committee, of which Ms. Kerrigan was a member, was working on recommendations for hours, access, use, etc. Mr. McQuillan said that the unit would not be used for meetings, etc., until ADA compliance requirements, if any, had been met.

Ms. Greig closed the Homeowner Forum, at 7:30 PM, noting that the Board would not be extending the time limit as they had in the previous meeting.

Ms. Greig announced that the Board had held a Special Meeting of the Board of Directors on November 14, 1999, and that the votes of that meeting would be ratified in open session.

At this point the meeting was interrupted while Mr. Scott McKenzie, who had seated himself at the Board table, was ruled out of order and instructed to remove himself. On the third instruction, Mr. McKenzie complied.

Ms. Greig announced that the Board had received Ms. Desiree DiMauro's resignation from the Board due to ongoing scheduling conflicts with her teaching duties. Ms. Greig informed the Board that their appointment of a replacement, voted on in the special meeting on November 14, 1999 should be confirmed. Ms. Greig motioned to ratify the appointment of Ms. Patricia Schoen to the Board; Mr. Wescott seconded this motion. The motion carried 5-0-0 (for-against-abstain).

Ms. Greig congratulated and thanked Ms. Schoen for stepping in.

The Board also confirmed their vote to authorize Ms. Greig to sign the contract renewal with CFM with the changes outlined in the minutes of the November 14, 1999 meeting.

Mr. Wescott motioned to approve the minutes of the November 14, 1999 Special Board of Directors Meeting, this motion was seconded by Ms. Boerner. Minutes approved: 5-0-0.

The approvals of the minutes of the October 26th, 1999 meeting were deferred to the December meeting.

Vice Presidents Reports

Buildings: Mr. Wescott reported the roof work had not begun because the contractor could not get the required materials. The work will resume during the first week of January 2000.

Grounds: Ms. Boerner had nothing to report but wanted Ms. Greig to make a special mention in the newsletter to remind people to turn off their outdoor faucets.

Mr. McQuillan reported he had gone through the financial statements and noted the following points and questions:

1. The T-Strip redeemed to purchase the unit was reflected in the statements and that new general ledger accounts had been setup to reflect the purchase of the Unit and the Land. The expenses have been allocated to these two accounts. Mr. McQuillan questioned if CFM had spoken with Singleton & Bardowski concerning how to record these expenses.
2. Mr. McQuillan also noted that he anticipates that the homeowners will want to follow the legal expenses associated with the purchase and with the potential expense in defending the possible lawsuit. He requested that this expense be captured separately.
3. It was also noted that the Water & Sewer was over budget due to the extremely dry summer and that any adjustments necessary would be made by the auditors.
4. He had received the final memorandum from the chair of the Finance Committee concerning the Internal Revenue Service late penalties and interest. This was provided to Mr. Maloney and it was requested that he respond by the next Board meeting.
   

Mr. Pollard reported to the Board on the status of sewer problems at 4314, 4316 and 4318 36^th Street. The following items where noted:

1. The sewer line has backed up twice in the last five months.
2. They are having trouble snaking the line.
3. The association could run a camera at an expense of $700.00 to look for the trouble. Mr. Pollard does not feel this is a necessary expense since they will have to dig the lines up either way.
4. Ms. Utility has been scheduled to come to the property to mark the lines. This will provide the plumber with some idea of what's in the area. After this has been done he will provide the Board with a quote.
5. The homeowner has requested that nothing be done until after the Thanksgiving Holiday.

Relocation of Stairway: The Board has received a request from an owner to move his stairway entrance. The owner acknowledges and understands his requirement to obtain the proper county permits and insurance and provide the Board with copies of the same.

Poor Drainage: The Board also received a request from an owner requesting that the Board look into the poor drainage behind units at 4511-4513 South 36^th Street. Mr. Pollard reported he is familiar with this situation and recommend they have an engineer look at the problem, possibly breaking through the curb and installing PVC pipe. Due the location it would require all hand digging since they could not get a backhoe to the location.

Delinquencies: Mr. Maloney said he would send Ms. Boerner information concerning the demand letter sent to an owner who is delinquent.

Gutter Request: Mr. McKenna of 3436 A South Utah wants to have new gutters installed to deal with a water drainage problem at his unit. Mr. Pollard has looked at the original work orders and invoices and reported that the original contractors did not install gutters. Over the years some of the homeowners have installed cheap gutters without Board sanction.
Ms. Boerner motioned to have Ben Kenny install the gutters at the McKenna residence, the motion seconded by Mr. Wescott. Mr. Pollard reported to the Board that there are ten to 12 locations that are having a similar drainage problem. The Board agreed they do not want the homeowners installing gutters on their own. Mr. McKenna does not want water deflectors installed. Mr. Pollard explained that Ben Kenny could not estimate the cost of gutter installation unless he actually carried out a test installation. After discussion the Board agreed that this would be a test case. The motion carried: 5-0-0.

Sewer Line: The Board discussed this item and felt it would be better to wait for the estimate from the plumber to be received before making a decision on this matter. On November 30, 1999, the Board voted by telephone to dig up and replace the sewer at a cost of either $6,000 to dig from the unit to the curb or $11,500 if it is discovered that there is no link to the county sewer line.

Relocation of Stairway: A request has been received from Eleanor Spark of 4404 South 34^th Street to move her stairway entrance.
Ms. Boerner motioned to allow Eleanor Spark to move her staircase as requested. The Board requested that Mr. Pollard contact the attorney and find out if there is a standard form to have this type of work done. The motion carried: 5-0-0.

Poor Drainage: The Board also received a request from Jocelyn Kerrigan to look into the poor drainage behind the units 3407 to 3415 South Wakefield and 4513-4517 South 36^th Street. Ms. Kerrigan, who was present, was invited to elaborate on the extent of the problem.
Ms. Schoen motioned to have the necessary work done to improve the drainage behind the units 3407 to 3415 South Wakefield and 4513-4517 South 36^th Street at an expense of $4,245.00. The Board acknowledged that there are drainage problems throughout the community but that this case is particularly deserving of attention at this time. The motion carried: 5-0-0.

Adjournment

Mr. Wescott moved to close the meeting and Ms. Boerner seconded the motion. The meeting was adjourned at 8:20 p.m.