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Board Members Present: Dan Solitz, Chair; Rick Lowen, Treasurer; Dan Hardt; Absent: Jean Kern
Residents Present: Giny Landgreen, Esther Konop, Jean-Marie Moore, Phyllis Fisher; Ken Guzowski, Susan Connolly, John Rose, Luther Greulich
BMC Staff Present: Diane Sollinger
Tony Core, Farmers Insurance, WT insurance provider, gave a presentation on earthquake (EQ) insurance. Phyllis Fisher, WT owner, did an excellent job collecting information on EQ insurance and arranged for Tony to meet with the board and members.
Tony said EQ insurance is always sold as a separate policy and is not included in our current WT policy. It is much less expensive if purchased for the entire building rather than as individual policies. An EQ policy covers the building exterior and interior, water damage from sprinklers, debris removal and window glass.
There is a 15% deductible for damage per occurrence – not per unit. Personal EQ insurance for unit possessions can be inexpensively added.
The coverage would be approximately $20 million dollars - the same as our regular insurance. Concern was expressed that $20 million coverage is not sufficient. Tony said we could discuss this in the future.
Currently, Farmers Insurance automatically increases our policy coverage amount about 8% per year.
Tony opined that it was unlikely WT would “pancake” in an EQ, but concrete doesn’t flex as much as wood construction. As mentioned by several members, the Northwest is considerably overdue for a significant EQ; on average our area experiences an EQ of at least 7.0 magnitude every 240 years. Tony said he carries EQ insurance on his home.
By far the lowest estimate received by Tony cost $20,000 per year with a 15% deductible or $28,000 per year with a 5% deductible for the entire building.
Rick said he had recalculated the 2015 budget to reflect the increased cost of EQ insurance should the board decide to include it. Thus, the 2015 budget with EQ insurance is $275,000 with the EQ insurance or $255,000 without the insurance. The HOA assessment without EQ insurance would increase 10.2% and with EQ insurance would increase 18.8%. The purposed 2015 HOA dues would be: Without EQ Insurance: With EQ Insurance:
Studio: $120 increased to $132 Studio: $120 increased to $142
One bedroom: $172 increased to $190 One bedroom: $172 increased to $204
Two bedrooms: $244 increased to $269 Two bedroom: $244 increased to $290
Penthouses: $274 increased to $302 Penthouses: $274 increased to $325
Rick reported that we added no additional funds to our reserves in November; however, monies that would ordinarily go into reserves were used for our ongoing payments for our new elevators.
Rick increased our 2015 maintenance budget from $14,000 to $25,000 for higher utilities, increased staff hours/salaries, landscaping including tree removal (causing plumbing problems), awning, carpet and window cleaning and consulting fees for our upcoming reserve study.
An EQ insurance discussion followed regarding the board’s duty to protect homeowners investments versus whether the question should be brought before the members at the annual meeting. A motion to include EQ insurance in the 2015 budget passed 2-1.
Phyllis will determine the up-front cost of the EQ insurance premium and when it is due and inform the board.
Ken presented the board with a three page description of the committee, budget requests and other matters. The board declined to approve the request that all committee aspirants be required to write a 250 word essay to be seated on the committee. The board will address the other committee requests at the next planning committee meeting.
Luther said he had been working with Harvey-Price for a proposal for the new boilers. He anticipates 1200 gallons of water storage in three tanks. The boiler room asbestos removal will begin as soon as Otis completes the elevator replacement. Luther opined that the project will be completed within 90 days of the date the boilers are ordered. The board approved the asbestos removal and asked Luther to get bids in the October 2014 meeting.
Chair Dan S. stated he would call a special meeting to approve the contract once the bids are received.
Rick again questioned as to whether the boiler could be repaired.
Dan S., Dan H. & Luther again opined the boilers cannot be repaired sufficiently to justify the expense of repair.
Ken reported the elevators are scheduled to be completed and inspected by 12/10/14 ; a “punch list” will be done before the final inspection. The carriage floor coverings are still not installed due to a vendor mis-order.
BMC will negotiate with Otis for a better maintenance contract.
Owner Doug Beauchamps requested $42.50 reimbursement for excessive rust in his unit pipes. The board approved the request 3-0.
Celina, office staff, asked permission to post notices once per floor, by the elevator, rather than on each unit door. The board approved 3-0 posting only on the mail room bulletin board on a trial basis.
will be 12-10-14 and
the next board meeting will be 12-30-14.
Susan M. Connolly filling in for Jean Kern, Secretary