PROJECT SCOPE
What analysis of our current building structure has the Board already conducted?
Based on the Reserve Study, which is a required biannual inventory analysis, the Board hired the Architect Ralph Allen to conduct a specific Building Envelope Study.
Overall, what are the main findings from those studies?
We absolutely have to repair the stacked middle balconies and replace the roof immediately, but in the near future we need to replace the siding and windows as well.
What exactly is the insurance requiring that we complete by October?
The Fireman's Fund Insurance Company informed us that in order to prevent the loss of our coverage, they require that we repair the stacked middle balconies and replace the roof by October 2013.
What is the minimum project scope and how does that approach affect future projects?
At a minimum we have to repair the stacked middle balconies and replace the roof using the existing design and using similar materials. We would then need to replace the siding and windows in future project chunks. Although this is possible from a construction perspective, separating these projects would involve work redundancies, and it would exponentially increase the cost.
Redundancies could include:
• hiring architects/engineers for each chunk (costs over 5% of building value require oversight)
• mobilizing contractors (e.g. set up/take down of scaffolding)
• permit fees based on chunk
• retaining a project manager per chunk (outside of a property management company role)
• perpetual long-term construction imposing on living conditions
Cost considerations include:
• it costs around $8000 to obtain a master loan so the association cannot obtain multiple loans
• many owners will need to obtain a second mortgage to pay their special assessment and will not be able to obtain multiple mortgages to cover additional chunks
How would a broader project scope be determined?
The Board will review the Building Envelope Study to determine an alternative package, which would include the windows, siding, and potentially other aspects, such as enclosing the roofs and creating additional storage capacity. If the package included repairs using only existing design and similar materials (such as just replacing the windows or siding with the same type) then the Board can chose to pursue this broader project scope without a vote of the ownership and therefore set the Special Assessment based on that scope. If however, the package includes significant design changes or improvements (such as enclosing the roof or adding storage), the ownership would have to vote on that package in order to determine the Special Assessment amount.
If the Board decides to pursue a project scope that includes more than the insurance requires, but still does not include any significant design changes, can the ownership reject the Special Assessment amount?
Yes, the new amendment allows for the ownership to ratify the Special Assessment within 20 - 60 days.