Concerns of homeowners
1) There are homeowners that have paid for windows replacements and others being paid through HOA. Some owners feel this expense is not an HOA expense and owners will be ok with paying for their owner windows that are actually leaking. There needs to be a clear definition of HOA paid expenses.
As has been discussed in at least two HOA meetings and also during several conference calls; recent Utah legislation has updated the Utah Condo law such that the responsibility of all the exterior surfaces has become that of the HOA. Example, while damage to windows from aspects such as glass cracks or breakage or damage from a bullet remains that of the homeowner. Defective installation, damage due to defects such as cracked frames, improper installation, structural aspects and such are the responsibility of the HOA. Further, many of the window replacements and/or resetting are due to the improper installation as has been documented in the Western Architecture reports. We are getting more information on the Utah legislative aspect and will post that once we have it avaiable.
2) We want an audit completed and available for review by all homeowners as required by CCRs. Firm should not be connected to our board or homeowners. Should be no conflict of interest. This audit should cover 2010 and 2011.
The Board is in agreement that it would be best to get an audit done, however, we have discovered that at no time in the past as an audit been done. Additionally, during the HOA meeting of 2010 this issue was voted on by the HOA and by a majority of the votes, the specific instructions to that Board were to not have an audit performed.
Again, the 2012 Board also agrees that an audit, or as a minimum a review, should be done, at least for the 2011 year as these records are most current. This is a measure that should be voted on by the HOA members due to the expected cost of six to eight thousand dollars. In the near future the Board will ask the HOA members to vote on this matter as the option of a Review should be considered for less then the cost of the Audit.
3) HOA – Needs to come up with a schedule of repairs in order of importance and a regular maintenance schedule. This should include and work within our reserve study. The Board is in agreement and this has been discussed in detail. The Reserve Study was contracted for in January of 2012 and also was to include a site specific planned and preventive maintenance schedule. With the Request for Proposals for the new Property Management company out for bid, it is prudent to see if the company to be selected has a program in place, if not research done by Anita has provided a suggested software program if this schedule needs to be input by the HOA (if the new management company does not have one in place). If we as an HOA have to do the input of the data, we will be looking for volunteers to assist with this process!!
4) HOA-Needs to show financial accountability for funds already spent for maintenance including deficiency repairs and how we manage and account financially going forward. This has been done, at the February 2012 HOA meeting the expenses to that date were indicated and discussed. Further, it is intended to hire a Project Manager to review the work already performed and the work remaining. Additionally the existing contractor has been requested to furnish a list of work completed, a list of work started but incomplete and a list of work remaining as of March 15, 2012. A complete schedule of expenses: contractor, subcontractor and supplier/vendor are being reviewed at so that a report on this matter can be provided to the HOA.
5) The second Vote. What is the rush for a vote on the deficiency list? The annual meeting was supposed to answer questions from the last failed vote. The resolution of many questions during the meeting has not been posted and no minutes have been posted. We did not even have the results of who was our board before we were asked to vote again. Given that this matter has been under discussion for over a year, the characterization of “rush” seems inaccurate. Further there have been significant delays in executing the repairs in order to be as “inclusive” of all the HOA members as possible. The statement of “we did not have the results of who was on our board before we were asked to vote again” is not accurate. The aspect of the Board was transmitted far before the vote was taken.
The aspect of the make up of Management Committee is not linked to the Deficiency Repairs vote, two separate issues.
About the second vote proposed for deficiency list:
We have been asked to vote on raising special assessment funds to do maintenance.
The most recent request from “the board” has a list of items for funding.
From that list there are only 3 items that appear to be related to a possible special assessment:
Item 1) Finish the windows on building 2
Item 2) Stucco repairs from window replacements buildings’ 1-3
Item 13) sewer backup prevention
These items require bids and if needed the owners can vote for a special assessment to fix these items.
As has been discussed in detail during the two annual meetings, several special meetings and conference calls; while some of the aspects needing repairs could have and should have been included in a proper preventative and planned maintenance plan, none existed and so now we all are faced with doing the needed and necessary repairs that were for too long deferred. However, the most significant portions of this matter are clearly the result of construction related aspects such as improper installation, poor material selection and manufacturing issues (cracking frames) as referenced in the Western Architecture reports.
To do these items the owners need to have these questions resolved:
· How will we financially track the special assessment $ As is now done, a separate item on the Accounting Chart of Accounts is being maintained. Some additional reports and detail are to be added and will be under the duties and responsibilities of the new property management company.
· How are we managing the work? Given the original process was to have this done by the on site property manager but that was halted with the termination of the knowledgeable property manager. The use of either a Board member or a specific committee was discussed in detail; ultimately the Board decision is to hire a project manager on an hourly basis to perform the following:
1. Review the work that has been done to date both for quality and completeness
2. Review the work completed against funds spent to ensure that budgets are being tracked properly. The initial work on this is being reviewed by a Board member but we need to engage the project manager in this process along with the Board member.
3. Evaluate the work remaining against the budget
4. Work with the Contractor to develop a specific schedule of the remaining work.
· Who is doing the work (bids to be posted for owners to see the process)? C. Wilder Construction has been performing the repairs to date and coordinating the other subcontractors in a Construction Manager role. It is intended that the subcontracted elements such as backflow preventers, stone work, etc will be competitively bid. It is the intent to competitively bid any work where that delivery method is best suited.
· What is the schedule for completion? As was discussed in the 2012 HOA meeting, it was stated that the work under the Wilder contract be completed in the 11 month contract time frame under the executed contract. Additional aspects are to be completed concurrent with the Wilder contract. This work needs to be scheduled as has been indicated previously.
In order to get a better understanding of what work under the Deficiency Repairs has been completed, what remains incomplete and what is yet to be started and also in consideration of the cost of this work, pending the final vote (now received as instructions to proceed from the HOA) and the desire of the Board to bring in an outside inspector, the contract with Wilder Construction was suspended as of 3.15.12 until such time as more information is available and also the work inspected. This suspension is also a reflection of the length of time it has taken to get the vote authorizing the work to proceed in place and the delay in the needed funding for this work. While it is anticipated that the work will be resumed in the future, more study needs to be completed. This suspension was a Board decision and agreed to by Cody Wilder.
A) Comments from a homeowner concerning items listed in the vote packet:
Comments Regarding Cost of Repairs
For discussion and consideration purposes:
Disclaimer: My comments are simply my opinion with respect to the cost of repairs. In some cases, costs seem excessive. In other cases, It seems to me that some burden of payments rests with the homeowner, though I realize if a deficiency were with my unit, naturally I would want the other owners to share the cost. In our unit, while under warranty (First Year), I went through great pains to get several repairs done, which included shoddy dry wall job, leaking upstairs shower drain, and weathered siding. (On the siding, I was told to leave it, and under warranty, several other units will repaired also. Why did this not happen. Did someone drop the ball??? I know that the builder was still on site when I initially reported the weathered siding by our hot tub. I regret that I did not pursue it on my own. How many other cases are there like that? I don’t fully understand the leaking windows problem, but could damage have been prevented with caulking or mortar to have prevented water damage??? If it’s the windows losing their seal and allowing air to come into the sealed area, that’s a different story. That’s why some of my comments may seem a bit callous. SOME REPAIRS NEED TO BE BORNE BY THE OWNERS.
1. Window repairs: I am reluctant to fund 100 percent of these repairs at cost of the ASSOC. Addressed ealier in this document
2. Siding: Will new pieces match the weathered pieces? If not, what is next step. Once this gets started, it needs to be finished, and the cost could easily double or triple estimated prices. Has anyone seriously persued idea of finding someone who could economically repair them. There are some pretty clever maint. Folks out there. The new pieces will be stained with the original stain color, due to weathering of the existing siding some color variances are inevitable. This is not seen as a large issue as we are also staining the siding where stain has deteriorated and the color variances do not seem to be unsightly
3. Why is stone work and curbing in several different sections. As I quickly go through the list, I see:
16K, and then the 3options on top of that?? That’s a lot of money for stonework. As was discussed in detail during the HOA meeting, special meetings, the schedule of Deficiency Repairs and conference calls; there are several areas where stone repair is needed. Refer to the Deficiency repairs schedule for details. In general, the wall and structural rock work is to be accomplished under the “Must Do” list and the stone work on columns and light poles is being deferred.
4. Item 8: Stone veneer work on chimneys. Cost is listed as 5,000. Does this include labor. Is this cosmetic work on some units? No one asked me about my chimney. Is this the chimney area surrounding the decks, or visible from the front? Couldn’t much of this work be done by a maint. Man on site? Yes on the labor, includes all the siding, chimney work, no on the use of the maintenance man, more of a skilled trade so that we do not have do the same work over in near future.
5. Page 8: labor contract: Why are dates from Aug 2011 to Sep 2011? Certainly we did not pay 85K for one month. If date is supposed to be Sep 2012, we are now 8 months into the contract. I THINK I WOULD HAVE CARDIAC ARREST IF WE HAVE PAID 80 PERCENT OF A CONTRACT WITH NO WORK DONE. SOMEONE PLEASE TELL ME THIS HAS NOT HAPPENED. I CAN LIVE WITH THE OTHER ITEMS. Your fear did not happen. The contract reads from September 15, 2011 thru August 15, 2012.
6. I concur that sewer problems need to be fixed, and responsibility of all owners. P.S. And, I don’t think I am affected, but that is a must to be done.
7. Many, Many, of other repairs, but not all, seems to me, could be done and thereafter repaired by an on-site maint. Man, or perhaps even a summer team from the area. Times are hard, people need work, and this could be an ideal time to reach out to community workers. We help them with a job, they help us get our repairs done at a reasonable cost. While your point is well made, we would still need special trades for skilled work and the proper supervision. Additionally, with Wilder construction we do gain a labor warranty as well as the warranty for the subcontractor work from the subcontractors.
8. Lastly, thanks to the board for tackling a much needed project. But, let’s all be reasonable. 500 K is not reasonable.
This letter was discussed in detail between David Hayes and Mr Zinser, while not a point by point response, please see notes in blue in the letter
How do we as a community proceed?
A) As per a homeowners letter:
Dominic in charge of Lakeside Village Facility as an interim solution starting March 31 until we have CAREFULLY selected a new facilities management company.
Dominic-Oversee that schedules are on track. i.e.: regular maintenance is being done. Needed facility repairs are being done, etc.
Cody-contractor/worker who arranges and does actual maintenance and repairs.
Dominic and Cody should be able to help the community prioritize the items and setup schedules (Dominic knows how successful HOAs’ work and are run. Cody understands what needs to be done, when to can be done, and can save us money with his contacts.)
The Board agrees, thanks for your comments
B) As per many homeowners input:
There is a strong sentiment to pool some funds to an hire attorney to allow homeowners to stop the hoa from any spending. Attorney to setup a sort of protection of our assets. The majority vote of the HOA has instructed the Board to proceed under the “Must Do” list and as no majority for funding needed for a loan was provided, the special assessment mechanism has been voted on by the Board. Again, the majority of votes totaling over 79 percent instructed the Board to proceed. It is clear that there is a mandate to proceed.
These assets are existing accounts - general fund, reserve fund and money market accounts.
In addition we would escrow:
Funds of hoa payments
Funds of special assessment (if a vote to assess passes)
The spending would freeze until we have:
*A new vote for board members that is legally and correctly completed
*Audit completed and available for review by all homeowners. Firm should not be connected to our board or homeowners. Should be no conflict of interest. 6.6 Accounting Records
The treasurer shall keep detailed records of all receipts and expenditures, including expenditures affecting the common areas and facilities, specifying and itemizing the maintenance, repair and replacement expenses of the common areas and facilities and any other expenses incurred. In accordance with the actions of the Management committee assessing common expenses against the units and unit owner, the treasurer shall keep an accurate record of such assessments and of the payments thereof by each unit owner the books and accounts of the Association shall be kept in accordance with generally accepted accounting procedures under the direction of the treasurer. At the close of each fiscal year, the books and records of the Association shall be audited and an audit statement prepared within 90 days by a certified public accountant retained by the Association. The books and accounts of the Association and copies of the annual audited statement shall be available for inspection at the office of the Association by any unit owner, his authorized representative or a First Mortgage holder on any unit during regular business hours and copies of all such books, records and audited statement will be supplied by the Association upon written request
*Reserve study in place and available for review by all homeowners In process and a committee of Owners is working to conclude this study. The Reserve study will allow the HOA to determine what contributions each Owner will need to make for the routine and regular expenses of the community. That is outside of the Deficiency vote.
*Management company or person in place (all bids available for review) In process but not a function of the Deficiency vote
*Schedule of maintenance, available for review by all homeowners Being developed along with the Reserve Study.
*Method of accounting for special assessment $s in place and available for review by all homeowners. This is being done as an expansion of the existing chart of accounts in our accounting system by Kier Management. Further, a report of both work done and budgets is underway and will be issued once complete.
*Have an Attorney draft an updated ccr’s to establish a workable set of conditions on how current and future problems will be fixed by the Assoc. The Board is in complete agreement and has had discussions with the HOA legal Council on this work that is truly needed, both as just an update given the age of some of the CCR”s terms and conditions and to comply with current Utah law. We understand that in or about 2002 the developer offered to undertake this and pay for it, unfortunately that offer was not taken at that time and we as an HOA will now need to pay for this work. In discussions with the Aty, if we as an HOA take some time to review and draft our updates, it will be far less expensive for the HOA then if we just defer all the work to our Aty. The Board is looking for volunteers to undertake the draft updates of the CCR’s.
It is hoped that this response answers some of the pressing questions, we are confident that there will be more questions as time goes along and the blog will be a great method to post any questions and/or concerns.
