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| • April 27, 2010 |
| • January 25, 2010 |
| • April 22, 2009 |
| • February 16, 2009 |
| • November 12, 2008 |
| • January 28, 2008 |
| • May 24, 2007 |
| • February 7, 2007 |
| • January 17, 2007 |
| • October 18, 2006 |
| • August 10, 2006 |
| • June 8, 2006 |
| • April 24, 2006 |
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With all the dirt, grime, dust, noise, parking problems, etc. I guess everyone now realizes we have a construction project in progress. Many of you have been so understanding and the board and staff wish to thank you. However, many of you are not so tolerant. Therefore, we wish to say we are sorry for the inconvenceies you have suffered. Please know that your staff, officers and board are doing the best we can under trying circumstances with this project.
Now to the important business at hand. Tonight I will ask the board of directors to support the recommendations of the building committee and approve some very important changes to our buildings and association. The first of these issues is the wholesale installation of high impact and high wind resistant windows and doors in all of our units. Some 50 plus owners have already bitten the bullet and ordered or have installed new code approved windows.
I have met privately with out insurance agent to discuss his presentation here at the Le Baron in January. It does not take a rocket scientist to read between the lines of the form Peter Catello presented at that meeting. Many owners have advised me of their understanding of what was said by Peter at that meeting. However, when I read the form that the insurance company requires us to file three months before our policy renewal, it appears to me we will be severely penalizes by not having high impact windows and doors in our 35 year old buildings. In a private meeting with Peter three weeks ago, he informed me it is very likely our insurance company will begin canceling insurance policies on beachfront properties the first of June. However, he says we cannot be cancelled until the first of November of this year. I asked him a direct question, considering the form we are to submit, if he felt we would be able to obtain insurance in the future. He advised me that if we instituted a board approved plan to upgrade all units of the buildings with high impact and wind resistant doors and windows he would be able to obtain coverage for our buildings. I advised him there was no way we could complete a project of this magnitude before the advent of hurricane season. Peter informed me that with a plan in place we would be insurable and he could obtain us coverage. However, I cringe to imagine the cost.
I will therefore will ask this board tonight to support the recommendation of the building committee tonight with a motion to approve the installation of new code approved windows and doors in all units of the association. The cost of this upgrade will be apportioned to each unit in accordance with a plan to be developed and approved by the board at a later date based upon the scope of work required in each unit. An early estimate of the cost of this endeavor is in the neighborhood of $1,420.000 for windows and $564,000 for doors. That would indicate an assessment of $13,000 for owners who have not replaced their windows and $3,500 for entry and emergency exit doors for each unit. Again, I am sorry to be the bearing of bad news but I cannot avoid the question, as we must maintain our property values and insurance coverage by the above action. Many of our unit owner's value have increased three fold and we must strive to maintain that value.
Now the next major issue I will present to the board of directors is the matter of shutters installed on the perimeter of our balcony decks. Unit owners reading between the lines of our agenda on shutters have contacted me by letter and telephone calls threatening action by their lawyers. One ex-board member has been soliciting board votes behind the scene before the issue is presented for board debate. If unit windows and doors are replaced with high impact hurricane wind resistant windows then there is not a need for perimeter-mounted shutters.
Owners have the misconception that shutters, installed on the perimeter of their balconies, protect them from hurricane wind pressures. Perimeter mounted shutters only protect the unit from missiles. Shutters do not affect wind pressures, as the pressure on the outside of the shutters is the same on the inside of the shutters and on the glass window.
It is evident from inspection of the early concrete restoration that we have major concrete balcony edge damage. The damage appears to be in the area where screen railing and perimeter shutter rails where installed allowing ponding water and salts to penetrate our concrete slabs.
Another important costly issue for the board to decide tonight is to replace all the existing catwalk railings on eighteen floors. The added cost is as a result of Hurricane Wilma. Many of our catwalk railings suffered damage from the storm to both the bottom railings and the upright pickets. On first review by our engineer, we were informed that the railings did not meet current code requirements and it would be difficult to find any company to repair them and assume liability for code and safety in the future. The building committee has met with the supplier of the railings to be installed on our restoration project and has negotiated a unit price for the catwalks. This total cost is estimated to be in the neighborhood of $175,000 as reported in the last board meeting. This added cost is a direct result of Hurricane Wilma.
Another important board issue to be considered to night is an added cost to construct a 16-inch high parapet wall around the perimeter of each of our buildings. Our engineer has recommended this parapet wall and its purpose is to prevent hurricane winds from lifting off our roof at the edges in the future. The building committee has obtained a price of $46,XXX from our restoration contactor for the construction of these walls. Compared to the $100,000 price we obtained from roofers quoting our roof replacement, the building committee will recommend the board issue a change order to the contract of Flack Painting for the parapet walls. As you will recall from the winter of 2005 the building committee obtained prices from painters to repaint our garage floors to satisfy an insurance company request to prevent accidents in our garages due to slipping. The painting prices were in the neighborhood of $220,000. Now that Flack Painting is on the concrete restoration project we have obtained a price from Flack to strip both garage floors, paint the floors per manufacturer's recommendations, install new bumpers, number the bumpers and strip the parking places. The total price is $106,630 and will be recommending for approval by the building committee to the board.
Finally, another important issue for board consideration tonight is to satisfy a request from our banking institution to secure a line of credit for concrete restoration for three million dollars. Our treasurer has advised me the bank requires a schedule of owner assessments to repay the amount of the concrete restoration. Without insurance claim reimbursement, the cost of the restoration project is still estimated at $2,700,000. To satisfy our bank's requirements I will recommend to the board the following schedule of assessments and payment dates:
| January 20, 2006 |
$5,000.00 |
| June 1, 2006 |
$5,000.00 |
| September 1, 2006 |
$5,000.00 |
| December 1, 2006 |
$3,650.00 |
This amount of assessment will amortize the $3,000,000 line of credit required by the bank. Once an insurance settlement is reached this schedule would be recalculated to reflect the settlement.
Now a report on our insurance claim. As I have reported in the past our public adjuster has received little cooperation from our insurance company's adjuster. The insurance company's adjuster has just completed four days of on-site review of our public adjuster's estimate of our claim. Our claim currently is in the neighborhood of $3,000,000. As I reported at the last board meeting, I have asked our corporate attorney to enter the discussion with the insurance company and their adjuster. In his early discussions the insurance company informed him we were trying to take advantage of the insurance company in our claim by requesting payment for items not involved as a result of Hurricane Wilma. I have personally reviewed each of our claims with our public adjuster and have informed our attorney that they adequately reflect our losses. We all feel enough time has expired off the clock to determine what our losses were. Our attorney will be strongly translating this fact to our insurance company next week. We are hopeful in the very near future to at least receive an idea of what the insurance company and their experts believe our claim amount should be valued.
Our corporate attorney has reviewed our documents and has given me the opinion that our board of directors controls the conformity and the type of exterior windows and doors that are installed in our buildings. The building committee is actively studying the type of code approved windows and doors that the board will allow to be installed in our buildings.
Respectfully submitted,
Le Baron Condominium
Sam Bowling, President |
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