Loan Ballot And Pool Reconstruction / Ballots Due By September 16th, 2020
LOAN BALLOT AND POOL RECONSTRUCTION
The Board would like to thank members who attended the August 26th meeting to discuss the loan ballot. Attendees had an opportunity to express views, ask the Board and Association counsel questions, and provide input on communications sent out about the loan. While the meeting was well attended, based on feedback received, the Board felt the need to provide further clarification by sharing discussion points from the meeting with those who could not attend.
• As a result of a construction defect, the pool deck and surrounding planters leak into the Cedar garage below.
• The project is expected to cost ~$700,000. The bulk of this costs is associated with the necessary repairs of the construction defects and arise from significant labor charges associated with removing the concrete deck.
• The Board started planning for this project over two years ago.
• The Association has $250,000 in construction defect award funds allocated for the pool deck project.
• The loan being proposed is $480,000. It has a fixed rate of 4.35% for the ten-year term. It is important to note that rates for associate loans are at historic lows!
• Last year the Board incorporated a line item in the annual budget for repayment of the loan. Approximately $50,000 has been generated from this line item and will be used for loan repayment, if approved. Approval of the proposed loan for the pool reconstruction project will NOT require an increase in assessments or any special assessments, as planned.
• There have been increases in the assessments over the last few years. These increases are in large part to replenish the reserve funds, as well as a reaction to increased service provider costs. As the minimum wage increases, the contract prices, like janitorial, increase.
• Repairs to the pool deck are necessary and will eventually take place regardless of whether the loan is approved. The loan allows the Association to repay the amounts over ten years, leveraging the already budgeted line item with additional budget planning, rather than specially assessing members now to generate the required funds.
• There is no way to avoid the inconvenience associated with the construction. It will be disruptive, but again this cannot be avoided. The repairs are necessary.
• This project is not only necessary to correct a construction defect but will also add exponential value to our community for residents and off-site Owners alike! The plan creates an expanded, modern, welcoming pool area that will become a shining feature for the building.
• Renderings of the proposed project can be seen posted in the gym bulletin board, and the doors of the clubroom at the pool.
• For the loan to be taken out, the Association must receive 155 “yes” votes. Failure to vote has the same impact as voting against the loan.
• The Board needs direction. Whether you are for or against the loan, please vote. The voting process gives the Board direction when everyone participates.
PLEASE RETURN YOUR BALLOT BY SEPTEMBER 16TH.