State of the Association

Posted on Fri, 10/01/2021 - 12:30pm

By Arthur Arfa, President

First, I would like to recognize several Board members who are ending their service on the Board. These individuals are longtime Board members and have served diligently and creatively in the management of your Association for many years. I would like Thomas Vaughan, Carol Beatty and Martina Molins to stand and for you to express your appreciation for their long, diligent service to the Association.

2021 has been a very challenging year. As you know, our longtime president, Marcel Molins, died on March 1. Marcel had an open mind and an outstanding approach to resolving issues. He also was a thorough gentleman who treated all individuals with concern and respect. Marcel had studied in London, Strasbourg, Hamburg, Trieste and Helsinki before coming to Chicago in 1963. He practiced law at Baker McKenzie. Marcel was generous with his time, helping his neighbors while serving as president of the Malibu East Board for over 30 years. Marcel spent countless hours as president and had a genuine interest in the enhancement of the community at Malibu East.

During 2021, we continued to deal with the effects of COVID-19. This entailed communicating with residents about any changes needed to enhance the safety of residents of Malibu East. We have had to adjust safety protocols many times due to changes in CDC guidance regarding COVID-19.

For 2022, we are working on restructuring the committees of the Association to permit more participation by all residents to better enhance our community. At this time, I would also like to encourage all owners to complete a proxy regarding the purchase and sale of units. As you may know, the Association has a right of first refusal when a unit is sold at a price that three-fourths of the Board believes to be grossly underpriced. We have exercised this right many times in the past, especially since the start of the real estate meltdown in 2006. We now own 10 properties and need these proxies to sell those units at a favorable time. We require the vote of two-thirds of Association members to sell these properties. Please complete a proxy; copies are available here and from the office.

Since the Association did not raise its assessments in four out of the last seven years, we ran into a cash-flow problem earlier this year. To remedy this, the Association secured a line of credit that allowed us to continue our work to improve the property without any interruption.

In 2021, through July, several instances of management savings have resulted in operating savings of $333,000.

The Board approved a reserve study in 2021. This document is a projection of anticipated replacement costs and the corresponding assessment charges for the next 30 years. This document provides a good basis for future Boards to make decisions. The Association’s reserves are not a savings account that must constantly go up but rather a tool to permit the Board to have sufficient, but not excessive, reserves to perform the needed maintenance of a large building without needlessly raising assessments.

During the last two years we have undertaken a renovation of the landscaping around the building. This project permitted the economical replacement of three large underground pipes that serve the fire standpipe system. We are all frustrated with the delay in getting this project completed in the driveway. The pavers were installed, but they immediately became stained. Before remediating the staining, it was felt prudent to test for the cause of the staining. That testing has now been completed. It has been determined that the best course of action is first to replace any damaged pavers. Then the pavers are to be power-washed and new sand installed. We are in the final phases of that remedial action; the current timeline is to finish this project by the end of October.

During the year we freshened the lobby with new carpeting, paint and furniture. Soon, we will have additional furniture in the lobby that will be easier to rise from.

As the world moves to electric vehicles, we are adding additional charging stations for more electric vehicles in the garage.

We completed renovations to the Plaza with new signage, carpeting and decoration. As always we continued preventive maintenance and prompt upkeep work with respect to structure, fire safety systems, HVAC systems, electrical, domestic water pumps and other major components of our home.