INNER HARBOR
VILLAGE CONDOMINIUM ASSOCIATION
SPECIAL ASSESSMENT MEETING
JUNE 26, 2011
The meeting was called to order by Dan Quail, President. He introduced guest speakers Todd Hulbert of Tollefson Builders, and Tim Klassen of Environex.
Dan gave an overview of the problems we are facing which necessitate the possibility of a special assessment. Most buildings have poor ventilation in attics, resulting in moisture buildup of exhaust from bathrooms, kitchens and laundry rooms. In addition there have been several roof leaks caused by improperly installed flashing. These conditions have caused numerous problems including dry rot and mold. Heating ducts in the attics were also installed improperly.In Building 10, leaks and rot were discovered extending down to the lower concrete. The entire structure under the foundation was all rotted. Water from a hillside spring has been flowing beneath the concrete and under the building. The building had to be totally redone in the front. Consequently, the association is in debt for the expense of these unexpected repairs, which were imperative to fix for safety reasons as well as possible loss of the building. We also had substantial repairs to Buildings18 and 16.
In the past, many leaks and defects have been repaired, but no contractor has gone beyond the immediate problem to solve the cause. Tollefson Builders has identified the underlying source of these defects and is repairing them permanently so that we will not have problems in the future.
Todd Hulbert of Tollefson Builders gave a comprehensive review of the repairs they have done
and propose to do, with pictures showing dry rot, water damage etc. The major issues he has discovered include roof leaks and flashing, which require step flashing in valleys, eve/gutter flashing to move water from roof to gutters, chimney flashing and replacement of chimney caps. Attic and crawlspace ventilation will require an increase in venting and clearing bird block vents in attics, removing and replacing insulation in attics ,sealing voids around fans and light fixtures, and proper ducting and venting out of attic/crawlspaces. Activities will also include repairing related damage to structures. Building 10 is almost completed, including new front porch and stairs, replacing of rotted wood, piping to divert the water under the concrete, and other projects to restore the building. He noted the importance of doing one building at a time rather than piecemeal because it is more efficient. For instance, moving scaffolding is time consuming.
Tim Klassen of Environex explained his inspection of the mold issue. The problem is only moderate and is easily treated with a two stage biocide which is sprayed on and kills mold on contact. This also prevents future mold. Once treated, mold will not come back. Ventilation improvement will also prevent future mold. If there are concerns about staining, an encapsulation process is available that covers staining . The health concern is almost non-existent as there is minimal risk of interior mold.
Dan Lanksbury presented the estimated cost of remaining remediation work and major expenses in 2011.
Remaining Mediation Work
Average cost per building:
Roof repairs and flashing
12,050
Attic remediation activities
5,985
Chimney repairs
7,350
Major Repair Expenses in 2011:
Building 16 (21 S. Keel)
-
Roof
repair,
wall replacement and chimney repair
13,892
Building 18 (60 No. Keel) – Eave/gutter
flashing, roof and valley repair,
wall
repair
9,026
Building 10
(50
S.Chandler) – Roof
repairs and valley flashing, entryway
repairs and restoration, eave/gutter
Flashing project
89,686
Dan
Quail
explained how the special assessment income will be used:
Anticipated revenues from special assessment:
FY 2011-12
46
X $5,000 = $230,000
FY 2012-13:
46 X
2,500 =
115,000
FY 2013-14
46 X
2,500 =
115,000
Anticipated Expenses
FY 2011-12
Repay personal loan
$16,000
Finish work on Bldg. 10
14,000
Repairs to Bldg. 4
42,000
Repairs to Bldg. 8
38,000
Contingencies
28,150
Recover overages
11,850
Repay reserves
80,000
$230,000
FY 2012-13
Repairs to Bldg. 1
$41,630
Repairs to Bldg. 2
41,630
Contingencies
31,740
$115,000
FY 2013-14
Repairs to Bldg X
41,630
Repairs to Bldg Y
41,630
Contingencies
31,740
$115,000
Buildings X and Y to be determined. Repairs to buildings will be prioritized as follows: health and safety issues; structural integrity, prevent further damage; repair existing damage. There is a good possibility that repairs beyond FY 2013-143 can be handled as normal operating budget items without need for additional special assessments. If other major problems develop, that outlook could change.
Gregg Hupp discussed the possibility of legal recourse with regard to the builder and Jefferson County. The developer, architect, engineer and contractor are all protected by Washington State law. Claims must be filed within 6 years of building completion. The County is also shielded from all claims. A Seattle construction attorney confirms that we have no recourse. There is a possible claim against old insurance, but documentation is missing, the legal action would be lengthy and expensive and unlikely to succeed.
Gregg also reviewed his investigation into our insurance Our policy specifically excludes damage of the type we have experienced. If we did file a claim, we would face $5,000 deductible per occurrence, higher future premiums and “problem development” designation.
Gregg presented a proposed
system of credit card payment for quarterly dues as well as special assessment.
Homeowner would initiate payment either online or by
telephone.
It would be low cost to the association but would involve a
2.49% convenience fee for
the homeowner
It is managed by Duespayment.com which is a company
with 10 years experience that specializes in homeowner associations and rentals.
A show of
hands indicated moderate interest.
Dan Quail reviewed the reasons for the necessity of a special assessment. Major issues are as follows: prevent further damage to buildings; eliminate health and safety hazards; maintain value of homes; repayment of debts. The downside of not passing the assessment: inability to repay personal loan; could not perform long term work; health and safety issues would go unresolved; damage to units would continue; value of homes would go down.
After
a count of the ballots, Ruth Seaberg, Secretary, reported that a total of 42
votes were cast.
Results were as
follows:
Special Assessment
36 Yes
6 No
Waiver of Audit
38 Yes
4 No
Budget Approval
39 Yes
3 No
The Board of Directors was unanimously approved at the Annual Meeting.
A motion to adjourn was made and passed. Cake and ice cream were served by Bev Rothenborg and Debbie Lanksbury.
Respectfully submitted,