SAMMAMISH WATERWAY CONDOMINIUM ASSOCIATION
SPECIAL OWNERS MEETING MINUTES – APPROVED
(BUILDING RESTORATION PLAN & HOMEOWNER VOTE)
NOVEMBER 12, 2008
6:30 PM
1. Call Meeting to Order – Meeting called to order at 6:45pm. Present were Board Members Robert Folgadalen, Kent Hutchings, Derek Moore & Erik Noyd; Community Association Manager Richard Redelfs; Skylur Haggart and Sam Packard of Morrison Hershfield, Project Managers; Jim Strichartz-Association Attorney; and Charlie Swenson, Arnie Quackenbush and Jeanne Quackenbush with Eggert Strand Hunt Construction.
2. A Quorum Was established. 73/102 Units were represented either In-Person or By-Proxy.
3. Proof of Notice of Meeting was presented.
4. Presentation by Board with questions from Owners, 6:45pm-8:20pm
A. Robert Folgadalen, Board President- Establishing protocol for evening.
B. Erik Noyd, Board Member- Discussed via overhead presentation the 4 primary things which the Board learned were of concern by homeowners from the surveys sent out to owners from the last Meeting of the Association. Acknowledgement that these were not the only concerns, but they were the most frequently mentioned. Answers provided were typically given by the person most familiar with that element; i.e. legal, construction, project management, or the board’s process.
1. Financing- Surveys indicated that if payments for special assessment could be reduced by 40% they would be “affordable”. The 40% reduction was an approximation of the reduction in monthly payments for an association loan where the amortization period was extended from 7 years as originally proposed to 15 years. Owner asked for clarification about calculations made; explained by Erik Noyd. In response to this the vote to support the restoration plan was modified to indicate that the Board of Directors would not sign a contract with the contractor unless the association was able to obtain financing, for those owners unable to pay from their own funds, for a loan period of less than 15 years. Additionally, a cap of a 3% increase in the base bid for the project was approved. Fielded additional questions from owners.
2. Condition of Buildings- Numerous owners expressed in the survey that they questioned the necessity of the project. Skylur Haggart of Morrison Hershfield again reviewed the results of the envelope study presented to the association during the annual meeting in 2007 & 2008. Presentation depicted the extensive decay and construction defects discovered. Reminder that all owners have an obligation to share in the repair costs for defects found in any building. Fielded additional questions from owners.
3. “Too many items being changed”- Surveys indicated that many felt the project encompassed too many things, asked for us to identify areas that could be delayed or find an effective way to stagger the project. Pros and cons of completing some but not all items. Estimate of additional cost for staggered approach to repair is $1.5 million. Concerns about additional decay occurring. Difficulty in obtaining financing for such an approach. Fielded additional questions from owners.
4. Economic Concerns- SWC has squeezed the life from the materials used in original construction. While we would like to avoid the project in this uncertain time, the urgency of repairs dictate action is required soon. The most cost effective way to make the repairs is to do them all at once. Using an experienced professional is the way to get the job done right. Property values will be impacted until repairs are complete. Discussed prospect of presenting the projects to contractors for re-bid. Advice given by attorney and Morrison Hershfield indicated that contractors specializing in projects such as this were not seeing their business diminish during the present economic conditions and were therefore not likely to reduce their bids. Reminder that “present contractor” was second to lowest bid among 5 by hundreds of thousands of dollars. Costs have in fact increased since original bid was presented. Fielded additional questions from owners.
5. Vote on Restoration Plan by Owners, 8:20pm-8:35pm
A. Announcement that a vote would now be taken for the project. Votes were collected by Richard Redelfs.
6. Votes Tallied, 8:45pm- Richard Redelfs, Derek Moore assisted by an owner tallied the votes and reported that the restoration plan passed with a vote of support by 61% of the owners. 16% voted no and 23% abstained from voting.
7. Meeting Adjourned, 9:00pm
