River Place South Housing Corporation (RPSHC)
Final Minutes From the Board of Directors Meeting
Wednesday, January 13, 2021
In Attendance – Board of Directors
In Attendance – Property Management, Financial Management, Legal Counsel, and Guest Presenters
In Attendance – Shareholders (All Via Zoom)
Marissa Fond, Unit 639: Ms. Fond expressed interest in receiving an update on the land lease survey. Mr. Ali stated he would speak to the matter later during the meeting.
Karen Imler, Unit 1111: Ms. Imler thanked the management team for their service and leadership to owners like herself who are off-site.
Ellen Schilling, Unit 636: Ms. Schilling also expressed an interest in receiving an update about the land lease survey.
Richard Hess, Unit 920: (1) Mr. Hess reported he has a list of 20 questions for the prospective Board candidates and asked how he should submit those questions. He also inquired about the Board election schedule. Ms. Waters stated the initial announcement and a “Call for Nominations” will be sent to owners during the last week of January 2021 for the Annual Meeting that will be held on March 30, 2021. Mr. Ali suggested that Mr. Hess send his list of questions individually to each of the candidates. (2) Mr. Hess inquired whether his email regarding the recently signed Paycheck Protection Bill will be discussed during the Board Meeting. Ms. Mays reported housing cooperatives were qualified for PPP loans for the first time as part of the approved December 27, 2020 bill. An important factor with the new Bill is that cooperatives are not required to provide proof that 25% or more of its income had been lost because of the pandemic.
James Marandi, Unit 642: Mr. Marandi asked whether the Annual Meeting notices will be sent to shareholders electronically. Ms. Waters and Mr. Ali stated the Annual Meeting notice must be sent to shareholders via mail. Mr. Marandi suggested exploring a change in the bylaws that would allow the cooperative to send the Annual Meeting information and other vital information electronically.
Jim Wolf, Unit 547: Mr. Wolf reported sending nine questions to the Board of Directors ahead of the meeting and posted them to the River Place South forum. He raised two of the matters verbally. (1) Mr. Wolf requested an update concerning the hiring of a permanent OA Manager. Ms. Hall reported she and a representative from one of the other River Place entities with Human Resources experience are working to finalize a position description for the OA General Manager. (2) Mr. Wolf asked about an effort from several years ago to explore an option regarding the land lease.
Maria Lucas, Unit 627: Ms. Lucas inquired whether paper is recyclable, as she does not see a bin marked “paper” in the trash and recycling area. It was explained that paper and cardboard should be placed in the large recycling bin at the end of the room. The smaller bins are for the other recyclable materials. Glass is no longer accepted for recycling.
Bill Miller, Unit 523: Mr. Miller sought clarity about what is covered by the master insurance policy and asked about the kinds of insurance each shareholder should have to cover what the master policy does not. Ms. Mays explained each River Place South owner should have insurance that covers the contents of their unit; and to protect them if their unit causes damage to another unit. The master insurance policy covers major occurrences that are the responsibility of the cooperative, as well as claims more than $10,000 that are not covered by a shareholder’s insurance policy. Ms. Waters, Ms. Mays and Attorney Kernan directed Mr. Miller to the Chart of Upkeep Responsibilities.
(Other shareholders were in attendance and introduced themselves but did not offer any comments.)
The Board of Directors agreed by unanimous consent to defer approval of the November 10, 2020 Board Meeting minutes to allow time for additional review and possible revision.
Board members reviewed the full January 2021 Management Report. Ms. Waters verbally highlighted the following matters:
A. A/C Split Units: An inspection of the 26 split units revealed deficiencies that will be corrected during the next month. The two units in Commercial Suite S300 are A/C only and are very old, and the compressors remain in need of replacement. The replacements will be scheduled for the spring.
B. Boilers: The controller for the entire boiler room system was replaced in December 2020 at a cost of $8,292. Prior to the failure, the controller was outdated, but functional. It is likely that the failure was caused by a power surge.
C. Chiller and Cooling Tower: The five-year, high speed bearing inspection is due, and was budgeted at $19,300. The controls for the chiller were also replaced in December 2020 due to a failure at a cost of $2,393.
D. Dominion Power: The loading dock was closed for approximately one month to allow Dominion Power to replace several transformers. The work will allow Dominion to isolate the building to make troubleshooting easier during a power outage.
E. Exterior Lighting: The exterior lights at the rear of the property were repaired by C&L. It was noted that the outages were caused by a shortage in the system that had never been addressed. Ms. Waters requested the OA replace a light pole that had been capped, contributing to the problem.
F. Fireplace Vent Cleaning - 11th Floor: Certified Chimney Service inspected several units on the 11th floor to complete the two-year requirement for inspection. Several issues were noted that RPS will need to address. Owners were notified of any items they need to resolve.
G. Trash and Recycling: A new compactor was installed, and four new cans were delivered.
H. Smoking Complaints: Management continues to receive smoking complaints despite the cooperative’s best efforts to address the issue. Localized and building-wide letters are being distributed to achieve compliance.
I. Service Animals: Ms. Waters sought clarity concerning the new procedure presented by the Owners’ Association for registering service and emotional support animals. Ms. Hall will work to resolve Ms. Waters’ questions.
J. Starry Internet: Starry is working to explore wiring and connectivity in the building to bring their Internet service to River Place South.
K. Rental Income Management: The cooperative has moved to processing rents via remote deposits, as all the banks in the area are closed. As of January 13, 2021, only one rental unit remained unpaid for December 2020, and four parking spaces remained unpaid.
L. Credit Card Processing: Square credit card processing is now in effect for the rental side. The cost to the payer is 2.9% plus $0.30 per transaction. The system was recently used to rent a unit to an overseas prospect.
M. Rental Portfolio:
1. The cooperative has a current occupancy rate of 85.7%. There are 10 vacant units - one two-bedroom unit, two one-bedroom units, and seven studios. Prices begin at $1,000 per month. The average discount is approximately 15.2%. The portfolio is at a deficit of about $130,000 year-to-date. Ms. Waters summarized the actions being taken to promote the available rentals. The Board of Directors raised no objection to management’s request to extend the three-month gym membership through March 31, 2021.
2. The parking occupancy stands at 96.5%.
3. Commercial Space S-131 was rented to Alternative Track Consulting at a rate of $300 per month for 12 months.
Executive Session was held following the meeting to discuss Personnel matters.
These minutes were respectfully drafted and submitted by: Sara Shahade