Sunday, August 31, 2008

Get Ready For More New Fencing

Did you know the Board is about to authorize the new phase II fencing for in front of 412 and 436 at a cost of $48,000, after discussing it with those who wish to do so. The board also discussed painting the existing new phase I fence at past Board meetings, but the board authorized spending over $6,000 for painting the existing phase I fence a teal color green even though the majority of the owners clearly told the board they wanted the new fence painted black to match the rest of the old fence.
The Board already has a bid from the original contractor who agreed to stand by his original bid even after steel price increases. Building 412 with the fence under the owner’s balconies is to cost $16,000 and the building 436 is to cost $32,000 for a total of $48,000. Please keep in mind that the original bid for the existing phase I new fence was $78,000, yet phase I ended up costing us in excess of $200,000 for a fence that did not even need to be replaced. Rich did a drawing of the proposed building 412 fencing, which is to just plug the holes to the garage and plant roses to climb the pickets of the fencing. Rich’s drawing is on Don Appleby’s Unofficial Stoneybrook Web Site. In the Architectural Committee meeting today Rich suggested the Board could authorize the special assessment to be made in payments. He thought there could be interest collected.
The phase III fence along the north half of Bellflower Boulevard is budgeted in the reserve study at a cost of $78,000 and phase IV fence (the church block wall) is budgeted for $240,000.
According to the February 2008 Financial Statements the Fencing reserve account is already ($73,778.35) overdrawn. I know it doesn't make any difference to Rich whether the specific account has no money in it. I had hoped that we were going to try not to spend any more money unless it was absolutely necessary until we got out of our current financial crisis, which will be causing the problem of the inability to get financing for sales of units because our reserve percent funded will be ZERO during 2009 and 2010!
I just read an email from an owner who listed their unit for sale after learning the dues would be going up at the last board meeting for a third year in a row. This owner was lucky to jump ship before it sinks. This owner bailed out for $355,000 for a two bedroom. This is about $100K less than the two bedrooms were selling for two years ago. How much more do you think our property values are going to decrease if we have three more 20% increases in dues in 2009, 2010 and 2011?
Hopefully the Board will decide the roofs ($1.2 million), waterproofing the deteriorating foundations ($2 million) and painting the buildings (.5 million) are the top priorities.
We currently have about $1.5 million in cash in the reserve account. If the Board will stop spending any money on reserve items except for emergencies and replacing something that breaks, then in two years we will have built up the reserves $1.8 million from the dues plus the current $1.5 million in cash for a total of $3.2 million, which will cover replacing all three top priorities with a special assessment of $1.2 for the roofs. If the board continues to spend money on reserve items other than the top three priorities, then we are going to have to postpone dealing with the roofs, waterproofing and painting the buildings.
By Bill Whitecloud 4-14-2008

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