River Place South Board Meeting Minutes-April 30,2019

​River Place South Housing Corporation (RPSHC)
FINAL Minutes From the Board of Directors Meeting
Tuesday, April 30, 2019 – 6:00 p.m.
 
In Attendance – Board of Directors

• Janice Mays, President
• Waqas Ali, Vice President (via video conference)
• Jim McInerney, Treasurer
• Sara Shahade, Secretary
• Lauren Hall, Director
• Vikram Reddy, Director

 
Regrets – Board of Directors

• Richard Villegas, Director

 
In Attendance – Property Management

• Joette Waters, General Manager
• Bryan Hernandez, Assistant General Manager
• Bob Porco, Financial Representative, First Service Residential

 
In Attendance – Shareholders

• Nancy Greenberg, Unit 542
• Bonnie Kline, Unit 926
• Naomi Pena, Unit 721

 
 

1. Call to Order

The Board of Directors of the River Place South Housing Corporation held a meeting on Tuesday, April 30, 2019.  Board President Janice Mays called the meeting to order at 6:18 p.m.
 
 

1. Results of Executive Session

Ms. Mays moved to allow the Corporation’s financial management experts from First Service Residential to move forward with finding financial institutions for investment purposes, and to approve an appraisal at a cost of up to $7,000. Mr. McInerney seconded, and the motion carried unanimously (6-0-0).
 
 

1. Recess to Executive Session

At 6:24 p.m. the Board of Directors temporarily recessed back into Executive Session to discuss a unit specific matter.
 
 

1. Return to Open Session

Open Session was reconvened at 6:28 p.m. by unanimous consent.
 
 

1. Resident Participation

Bonnie Kline of Unit 926 inquired which company the Corporation is working with regarding reserve funds. Ms. Mays stated the Corporation is working with First Service Residential.
 
 

1. Approval of Agenda

Ms. Shahade moved to approve the April 30, 2019 Board meeting agenda as presented.  Mr. McInerney seconded,  and the motion carried unanimously (6-0-0).
 
 

1. Approval of Meeting Minutes (February 26, 2019)

Ms. Shahade moved to approve the February 26, 2019 Board of Directors meeting minutes as presented.  Mr. McInerney seconded, and the motion carried by a vote of five in favor, zero opposed and one abstained (Ms. Hall)
(5-1-0).
 
 

1. Appointment of Officers

Dr. Reddy moved to appoint the officers as follows:
 
Janice Mays, President
Waqas Ali, Vice President
Sarah Shahade, Secretary
Jim McInerney, Treasurer
All other Board members will serve as Directors
 
Ms. Mays seconded, and the motion carried unanimously (6-0-0).
 
 

1. Reports
2. President’s Report and OA Report: Ms. Mays reported the OA has discovered more issues in the garage.  However, the project is still moving ahead and vehicles are being moved.  Engineers working on the garage project have discovered several areas where rebar had been cemented over, and it has been determined that rebar has rotted in these locations.  New rebar must now be installed to ensure structural safety.  This increase will be in the $10,000 to $30,000 range.  This increase is due to the discovery of further issues as work progresses that was not visible during the initial inspection.  The OA is focusing more on garage safety than aesthetics at the present time.  The project is still on schedule.  The OA pool project is also in progress.  Planters on top of the garage were also stabilized as it was discovered that dirt, gravel and other materials inside the planters was unstable.

 

1. Treasurer’s Report: As of March 31, 2019, the Corporation had a total of approximately $1.6 million in reserves. The BB&T operating account has not yet been closed, as Mr. Porco will set up an excess operating account – likely with Revere Bank since they are offering the highest interest rate.  That money can then be transferred into the Capital One operating account if funds begin to run low.  The Capital One account currently holds $128,000 which is sufficient for monthly operations.  The BB&T account holds approximately $202,000.  Delinquencies remain low, and the 2018-2019 audit will begin sometime in early summer 2019.

 
Operations are running slightly above the $12,000 surplus for the 11 months of the current fiscal year.  Budget variances were highlighted.  It was noted that there is a $45,000 contingency line item under “Administrative Expenses” that can be used as a buffer.  In the past 11 months, the Corporation has had capital improvements of approximately $186,000 and has only moved $42,000 from the reserves.  However, additional funds have been moved in April 2019 that are not reflected in the March 2019 financials. Approximately $600,000 will be contributed to the reserves during the 2018-2019 fiscal year.  The reserve contribution may be decreased for the next fiscal year.
 
 
  X.Management Report
A.     Balcony Work: Balcony work commenced on Monday, April 15, 2019 on the 06-07 tier.  The 18-19 tier will be next.  This work is being performed by Commercial Waterproofing – the same company that is working on the OA garage project.  The work is expected to be complete on the 06-07 tier before the pool has opened for the season.
 
B.     Façade Engineering Study: As part of the reserve study, the façade of the building is due to be evaluated for repair. Facility Engineering Associates has already completed the first step.  Their estimate for the visual inspection and engineering study came to $4,600.  They are now moving on to the second step – the performance of a restoration design study and specifications which is estimated to cost approximately $4,000.
 
C.     Boilers and Cooling Tower: The boilers have been shut down, and water is now being heated by the RBIs (domestic hot water heaters).  The intake tank on the cooling tower must be replaced, which will cost approximately $10,000. The part has been delivered, and should be installed by Friday, May 3rd.  The air conditioning system will then be turned on.
 
D.    Convector Cleaning: This work is underway, and a more thorough cleaning is being done in 2019 than usual.  A wet degreaser cleaning will take longer, but is more thorough and will hopefully aid in resolving the convector leak issues seen in summer 2018.
 
E.     Cell Towers: Management continues to push back against the installation of more equipment in the building’s trash rooms. The Corporation’s legal counsel has looked at the T-Mobile contract to determine if River Place South has any leverage, but it seems the Corporation does not. Ms. Waters will not allow any workers related to the cell towers onto the roof without being accompanied due to damage that was previously caused to the roof.
 
F.      Annual Meeting Packet: The shareholder packet that follows the 2019 Annual Meeting was mailed during the week of April 22nd, and included a link to an electronic survey regarding the options of shareholders regarding the designation of River Place South as a non-smoking building.  If implemented, the change would require a bylaws amendment, and legal counsel has provided a sample for how that amendment would be written.  Management and the Board also indicated that Corporation-owned rentals are now leased as non-smoking units, and recommended that owners renting their units consider adding a non-smoking clause to their lease agreement.
 
G.    Rental Occupancy: Rentals have reached their maximum limit at 100%.  However, commercial occupancy is low.  Parking spaces are 87% occupied, and several parking spaces are not rentable due to their size, obstruction, or four spaces being taken up by balcony work.  Management will discuss these spaces with the Owners Association, as the OA should give additional parking spaces to a building whose spaces have been compromised.
 
H.    Loading Dock: A sign is in place stating that any individuals found to be dumping trash at the loading dock will be subject to a $250 fine.  This is now being enforced by management.
 
I.       Breaking Down Boxes: Trash rooms are becoming increasingly full due to residents not breaking down boxes.  Ms. Waters is obtaining larger recycling cans, and will send a letter reminding residents to flatten boxes before placing them in or on the side of the green recycling bin.
 
 

1. Resale Notifications

Resales have been incredibly busy, which could potentially be due to the impact of Amazon’s arrival in the area.  There have been significantly more resales than is typical in the last few months – some for occupants and some for owners intending to rent.  The Corporation is still working to clarify the relationship between River Place South and T4, and is trying to come to an agreement with their lawyers.
 
 

1. New Business
2. Officer Representatives: The Board of Directors approved the following by unanimous consent: Ms. Shahade will serve as representative to the Owners Association for the South Building; and Dr. Reddy, Ms. Mays, and Ms. Hall will represent Parcel 5 to the OA.

 
 

1. Old/Unfinished Business
2. Balcony Rehab Project: Please see Section X.A of these minutes.

 
 

1. Temporary Adjournment to Executive Session

The Board of Directors temporarily adjourned the Open Session at 7:26 p.m. to hold an Executive Session for the discussion of confidential Corporation matters.
 
 

1. Adjournment

Following the conclusion of the Executive Session, the April 30, 2019 Board of Directors meeting was adjourned at 7:30 p.m.
These minutes were respectfully drafted and submitted by: