Many of you owners have noted that some of the normal committees and normal routines have not been followed this year by the Board.  You are absolutely correct in that observation as your Board has had so many more important items on its plate that required daily attention.  Hopefully as the Restoration Project draws to a close we will have more time next year to resume the normal committee functions and routines you request.  I for one feel there are two many committees that unnecessarily draw on the Board’s limited time.

Most importantly, I wish to again inform you I continue to be totally committed to completing the Restoration Project this the last year of my Board term.  I feel the projects stands for and should be titled "the first total first class and complete concrete restoration project in our buildings the last thirty years.

I also am committed to reaching some resolution of our Wilma insurance claim in the near future.  This has been a most frustrating, time consuming, costly exercise with an insurance company who has stonewall our every effort to settle our claim.  It has appeared that QBE, our insurance carrier, only goal has been to prove that we have submitted a fraudulent claim from the beginning.  QBE has alleged that our early claim included not only our Wilma damage but also they have made written allegations that our claim included pre-Wilma damage repair.  If they proved this statement was true I have been advised by our legal council that thus gives QBE a right, by the policy terms, to deny our Wilma claim in total as fraudulent.

This has not been an easy task since our former public adjuster was not able to produce any of the claim data that they assembled from their visits to each building unit, on-site inspections, digital photographs, etc.  The former public adjuster also managed to lose all of our backup digital photographs that were the basis of their Statement of Loss that the insurance company stated was fraudulently presented. 
The Board terminated this public adjuster in early January 2007 without the payment of any fees. We subsequently hired Insurance General Contractors (IGC) to prepare a claim Statement of Loss of our Wilma claim costs from photographs, engineering reports and owner’s statements and owner photographs.

IGC has completed their estimate of our Statement of Loss and is currently in meetings with QBE’s adjuster to try to reach some resolution of our claim without going to the next step of filing a litigation claim that could prove to be very costly in time and money for the Association.  I am hopeful of reaching some negotiated settlement of this matter in the near future. 

I am also committed to upgrading our blacktop parking areas.  Either with new blacktop paving or with pavers many of you owners have requested.  Through the efforts of Board Member, George Pearson, the Board has secured at least three bids for replacing all existing blacktop paving with pavers on a cement sand base that will accommodate truck traffic.  This matter will be discussed by the Board tonight to get the input from you the owners of how you want to proceed in this matter.  An assessment would be required to pay for this project but it could be scheduled for payment between June and September 2007. 

The Building Committee and several board members have been successful in meeting and scheduling, with the low responsible bidder, a minimum deposit to commence this project.  The low bidder has advised the Building Committee that with a July 1, 2007, contract and Notice to Proceed date they could be completed by November 1, 2007.  This would facilitate returning owners before winter residency reaches a peak.  The have also neoigotated very reasonable contact deposit, and periodic draw rates against the contract amount.  The removal of blacktop, placement of new sand/cement base and new pavers would be installed in at least five phases in out lots to facilitate continued parking during the construction process. The committee is pleased with the terms worked out with the low bidder.

If the owners elect to proceed with a pavers project a special Board meeting would have to be properly noticed and held to approve any new assessments.

I remind you that to approve an assessment a fourteen (14) notice must be posted that the Board of Directors Meeting intend to discuss and approve an monetary assessment to pay for the installation of pavers in our parking lots.

The board would like to hear from you owners here tonight how you would like to proceed on the pavers project.  The alternative is to install new black top asphalt paving that we have had in the past and requires continual sealing and maintenance.
 
As a result of the Restoration Project, major damage was discovered in our garage roof supports, our electrical wiring, our metal piping, junction boxes, AC units, etc. in the first level of the covered garage parking area.  The damage was determined to be the result of salt and sea spray blowing into the garage through the East exit door on to the beach.

Our engineering firm recommended the closing of this east exit opening to minimize future damage by preventing a true easterly wind from entering the garage area.

This modification has now been completed and required reassigning a few current parking spaces. Two assigned parking spaces were relocated to the closed area of the former east exit.  This move will be an improvement for all owners, as it will protect our infrastructure from salt infiltration and damage from the former east opening.

I am pleased to report that the Concrete Restoration Project is rapidly drawing to a close.  The restoration contractor is finalizing final painting touchup, glass replacements, cleaning up and owner complaints.  As the Building Committee has assured you in the past final payment will not be made to the contractor until all legitimate complaints have been rectified to the satisfaction of the Building Committee.
However, the Board is now advised that owners are having subcontractors install new windows and sliding doors.  We are also advised that the window contractors are damaging the completed waterproofed and painted.  You as owners must be advised, and you must advise your contractors, that they are not to damage the association’s common elements.  You the owner must know that you will be held responsible by the association for the repair cost of the common areas damaged.
 
The roofing of the East Building is anticipated to be completed in total by June 1, 2007.  The Building Committee is well pleased with the roofing work performed by Advanced Roofing.  They have conducted their work in a very professional and first class manner.  The Le Baron will have a first class roofing system with a life expectance of 20 plus years when completed.  It is recommended by the Building committee that Advanced Roofing be engaged to conduct an annual inspection of our roofing systems to establish preventative maintenance procedures to maintain the twenty (20) warranty to be provided to the Association by the roofing manufacturer.

I wish to point out that the cost of the new roofing is in the range of $500,000 dollars and owners have not been assessed for this cost.  The payment of this ongoing project has been handled through our Board approved line of credit at the bank.  It is my goal to have the total roof replacement cost to be secured from anticipated insurance settlement.
Access to the roofed areas will be closely monitored once the roofing work is completed.  Owners are reminded again that those wishing to have maintenance persons perform AC or electrical repair or maintenance on the roof must arrange access to the roof through the Le Baron office with our in-house maintenance staff.

Owners are also reminded again not to attach any items to the balcony decks, railings, new doors or building walls.  The building walls are controlled by the Board and have been waterproofed and painted and are not to be marred, drilled, or in any way damaged by owners.

Now finally, it appears to me there will be three Board of Directors to be elected at our next annual meeting.  I would encourage all of you well-intentioned owners who wish to serve, to make every effort to file on time, with the proper forms and submittal dates.

I have learned from my experience the last two years as President, you need clear thinking directors on the Board who will do their own research on issues and reach decisions that will protect all our owners, not just a few.  We do not need board members with personal agendas in my opinion.

If you are looking for beauty contest or notoriety without thoughtful study for resolution of problems and handle daily operational condo matters, please this is not the place to apply for a job.  We have owners who have the skills to manage this association and we need them to step forward for service this year.

End of sermon! Lets get on with the serious business of the Board of Directors.

Respectfully submitted,
Le Baron Condominium
Sam Bowling, President
May 24, 2007