Willamette Towers

Reserves Study

2021

Planning began in 2020 to replace the building’s plumbing; this continues in 2021. The first action is to do one of the 13 “stacks”, and to do one that is accessible from the hallways.

The plumbing bid for the first stack is $30,000. Our best guess is that additional work such as drilling holes in each floor, opening the walls and closing up and finishing the walls will run around $15,000. These figures plus a 10% contingency are the figures used in the reserves study.

Because the plumbing category of the reserves is on a different timeline than the standard 30 year reserves and also likely to change as more is known, it is presented as a stand-alone category.

The standard 30-year reserves

The standard 30-year reserves statement covers all reserves items except for the plumbing. The goal of the reserves over the next few years is to increase the percent funded to a widely recommended 60-70%.

Willamette Towers begins 2021 with about $100,000 in the standard 30-year reserves. The 2021 HOA dues contribution to the standard 30-year reserves statement represents an approximate 2.5% increase from 2020.

The Plumbing Category

Adding new plumbing to replace the old is currently planned over a 9-10 year timeline. There may be financing at some point to speed up the project, with payments spread into the future.

The first few plumbing lines to be replaced are accessible from the hallways; remediation costs are fairly low. When we move to replacing the lines that require unit walls to be opened up, the restoration costs will increase. The actual costs are unknown. To create scenarios, a figure of $10,000 per unit is used, suggested by former resident and general contractor Luther Greulich.

For the purposes of planning, plumbing reserves have been put together that do not include these unit remediation costs, and then a similar dues structure is used with the unit wall restoration included.

A steady amount or small dues increase year to year

The plumbing reserves begin 2021 at $127,000.

Scenario #1:

  • The costs for the plumbing and hallway wall restoration are included
  • The 2021 dues amount is maintained year to year
  • This proves more than adequate, with a finishing balance in excess of $300,000
  • View this reserves scenario

Scenario #1 Modified

  • The costs for plumbing and hallway and residential unit restoration are included
  • The 2021 dues amount is increased a small amount in consecutive years
  • This proves inadequate; an estimated $600,000 plus is needed toward the end of the project
  • View this reserves scenario

A steady percent of the total project’s needs maintained

This scenario also begins 2021 with $127,000 dedicated to the plumbing.

Scenario #2

  • The costs for the plumbing and hallway wall restoration are included
  • The dues each year are set to cover that particular year’s needs plus a little
  • The dues are set to be adequate to the need
  • View this reserves scenario

Scenario #2 Modified

  • The costs for the plumbing and hallway wall and unit restoration are included
  • The dues each year are set to cover that particular year’s needs plus a little
  • The dues are set to be adequate to the need
  • View this reserves scenario

These scenarios represent real work to be done, but the real costs beyond the next two or three years are impossible to know. Especially the unit wall restoration costs are a guess, and how these will be funded has not been addressed.

Oregon Condominium Law

Here is the the Oregon Condominium Law regarding a Reserves Study and board responsibility.