River Place South Board Meeting Minutes - November 19, 2019

​River Place South Housing Corporation (RPSHC)
DRAFT Minutes From the Board of Directors Meeting
Tuesday, November 19, 2019
 
In Attendance – Board of Directors

• Janice Mays, President
• Sara Shahade, Secretary
• Lauren Hall, Director
• Vikram Reddy, Director
• Richard Villegas, Director
• Jim McInerney III, Treasurer

 
In Attendance – Property Management

• Joette Waters, General Manager
• Bryan Hernandez, Assistant General Manager
• Lisa Waters

 
In Attendance – Shareholders

• Karen Imler, Unit 1111
• Oscar Jobe, Unit 1007
• Crystal Jobe, Unit 1007
• Bonnie Kline, Unit 928
• Charlotte Fu, Unit 908
• Marissa Fond, Unit 639
• Elin Schilling, Unit 636
• Bruce Woolman, Unit 636

 

1. Call to Order

The Board of Directors of the River Place South Housing Corporation held a meeting on Tuesday, November 19, 2019.  Board President Janice Mays called the meeting to order at 6:01 p.m.
 

1. Approval of Agenda

Mr. Villegas moved to approve the November 19, 2019 Board Meeting agenda. Mr. Reddy seconded, and the motion carried unanimously (6-0-0)
 

1. Resident Participation

Oscar Jobe of Unit 1007 inquired about the reasoning behind the Owners Association Gym Closure. Ms. Mays explained that necessary ceiling repairs are the reason for the closure.
 
Elin Schilling of Unit 636 requested the use of the multipurpose room in the gym during the repairs so that yoga and martial arts classes can continue during gym repairs. Board of Directors will discuss potential rooms that may be used for these classes.
 
Marissa Fond of Unit 639 requested an update on the land lease. Ms. Mays stated that as of now no decisions have been made but that all things are possible and open.
 
(1) Bonnie Kline of unit 928 requested an update from Board of Directors regarding the tax attorney’s opinion and list of expenses association with turning the rental portfolio over to shareholders. Requested an email be sent prior to Thanksgiving.
 
(2) Bonnie Kline questioned spending limit for cosmetic reasons which she believed to be $40,000.00. Ms. Mays stated this was discussed at a prior meeting and she would email this information to Ms. Kline.
See section 7.9. Additions, alterations or Improvements by Board of Directors for Bylaws.
 
            “Whenever in the judgement of the Board of Directors it is desirable to make additional. Alteration or improvements of the Common Elements costing in the aggregate more than Forty Thousand Dollars ($40,000.00) during any period of twelve consecutive months, the making of such additions, alterations or improvements shall be approved by the Majority Vote at a meeting of the Shareholder. The dollar limitation fixed by this section shall increase annually by the percentage equal to the percentage increase in the annual budget of the Association”
 
Legal Opinion/ Explanation from Kevin A. Kernan, Whiteford Taylor Preston
 
“Article VII, Section 7.9 of the Bylaws states that the Board must obtain membership approval for expenditures in excess of $40,000 in any given year for “alterations, additions, or improvements” to the common elements.  The $40,000 threshold does not apply to expenditures to maintain, repair, or replace the common elements.  Typically, remodeling of a lobby is considered repair and maintenance of the building and does not require a membership vote.  The Association is typically viewed as replacing the lobby furnishings with like for like materials.
 
Expenditures for “alterations, additions or improvements” are those for items that did not previously exist or that alter the dimensions or use of the common elements.  For instance, if the Association added a staircase or a fireplace to the lobby that did not previously exist, then the Board would need approval of the additions if they cost more than $40,000.  Also, if the Board altered the common elements to include a gym or workout facility that exceeded a cost of $40,000, then membership approval would be necessary.”  
 

1. Approval of Meeting Minutes
   1. September 24, 2019

       Ms. Shahade made a motion to approve the September 24, 2019 Board Meeting minutes as amended. Mr. Reddy seconded, and the motion carried (5-0-1). Ms. Hall abstained.
 

1.  October 29, 2019

       Mr. Villegas made a motion to approve the October 29, 2019 Board Meeting Minutes as amended. Ms. Shahade seconded, and the motion carried (5-0-1). Ms. Hall abstained.
 

1. Reports
   1. President’s Report:

       Ms. Mays mentioned the minor fire which occurred on November 7, 2019. She stated that   there will be no meeting in December 2019 and the January 2020 Board of Directors Meeting date is to be determined. Ms. Mays announced that a large loan is coming due in May 2020 and the Board of Directors is in the process of pursuing a couple other options with the hope of having all potential options presented for a decision to be made in January 2020.
 

1. Treasurer’s Report:

       A Treasurer’s Report was not presented
 

1. Owners Association (OA) Report:

       Ms. Mays stated that the OA is close to finishing the 1st part of the garage repairs. Some follow up repairs should be expected and those affected will be notified.
 

1. Management Report
   1. Façade: Mrs. Waters stated that Façade work is on radar for next year. Mr. McInerney will be looking over reserve study to provide additional insight. He asked if anyone in the room had water issues from the exterior of the building. All shareholders present had no issues.

 

1. A/C Split Units – No Comments

 

1. Boiler. Heat – No Comments

 

1. Camera Loading Dock – No Comments

 

1. Fire systems upgrade – No Comments

 

1. Trash Chute Fan – No Comments

 

1. West Wing Roof access exterior door – No Comments

 

1. Fire – Unit 434 – The board would like management to explore potential fines for tenants without working smoke detectors. Management asked Board of Directors about Live/Natural Cut Christmas Trees.