State
of the Association
Oakbrook
Townhouses
January
16, 2020
By
Ken
Karch, PE, President
I
am pleased to report on the state of the Association. I will only highlight a few items.
Property Values
While
no one likes to pay taxes, I am pleased to report that the mean assessed value
of Oakbrook Townhouses for taxes due and payable in 2020 rose 9.2%, following
an 8.0% rise for 2016, an 11.7% rise for 2017, a 21.0% rise for 2018, and a
6.6% rise in 2019, after the long slide since 2005. Total assessed value of all 65 members units
stands at a record $15,682,500, a 70% rise since 2015. Since assessed values are a lagging indicator
to sale prices, our home values are likely to look even better. In fact, the
last 8 recorded sales from 2017 to 2019 showed average sale prices 21 percent
above the respective assessed values at the time of the sales.
Proposal for Cluster
Mailbox System
Last
year you approved amendments to the CC&Rs and Bylaws to permit a cluster
mailbox system to be installed, by creating “limited common areas.” Cluster mailboxes have been installed, and
now serve 55 of our 65 members. You are
all aware that a lawsuit was filed by a member in Building 4 which delayed
installation of cluster boxes for 10 of our members in Buildings 3 and 4. I am pleased to announce tonight that papers
have been signed to settle that lawsuit, and members in those remaining
buildings will see cluster boxes to serve them installed within the next few
weeks.
Re-Roofing of
Buildings 1, 3, 4, 5, and 6
Following
an assessment of the conditions of roofing materials on Buildings 1, 3, 4, 5,
and 6, the Board authorized re-roofing of these buildings, under warranty
provisions, to provide new materials, without cost to the association. Re-roofing of those buildings was completed
in 2019.
Re-Roofing of
Buildings 7, 8, and 9
During
2017, the Board approved a pilot project to re-roof Building 11 in a manner
which provides a slight slope to the roof to promote improved drainage, thereby
eliminating the ponding which is a primary cause of roof leaks. The Building 11 job was completed, and was
successful in removing ponded water during and after heavy storms. The Board took action to re-roof three other
flat-roofed buildings (#7, #8, and #9) during 2019, and I can report tonight
that those reroofing jobs have been completed.
These reroofing jobs considerably depleted our Special Projects reserve
account, but did not require a special assessment. The Board will be
considering re-roofing of the remaining flat roof buildings (#10 and #12)
during 2020.
Inventory of Rear
Drainage System
Our
2018 slope stability study, reported on last year, recommended certain
inventory and repair work on our rear area drainage system. During 2019 the Board contracted to have the
rear drainage system video inventoried, problems identified, and repair work
completed. That work has been completed,
and for the first time, Oakbrook Townhouses has a map of its rear drainage
system, allowing further study of gutters and downspouts as potential causes of
member concerns of leaks.
Driveway Replacement
During
2019, the Board authorized, awarded bids, and completed work on four additional
driveways.
New Issues
During
2019, the Board
1.
adopted
three additional policies to clarify the respective responsibilities of
homeowners and the association, on dryer vents, on rear and side common
areas, and on front common areas;
2.
requested
a lot-specific structural damage assessment from a professional
engineering firm, and, following that, approved a proposal from a contractor
to pursue work at 7513 Zircon, expected to be complete by the end of
January, 2020;
3.
was
made aware of numerous violations of the CC&Rs and Bylaws at 7509 Zircon,
submitted demand letters to the owner to correct the violations, and engaged an
attorney to pursue litigation, the first at least in recent memory, and perhaps
ever. The home has been red-tagged by
the City of Lakewood, has been vacated, and is rumored to be in foreclosure;
4.
re-adopted
a set of criteria for prioritizing the work of the association, and
adopted a set of goals for 2019;
5.
switched insurance brokers to Mike Englund of
Gallagher Insurance;
6.
conducted
an assessment of vegetation obscuration for owners backing out onto
Zircon Drive, and contracted for trimming or removal of vegetation at six
locations;
7.
filed the CC&R amendments approved by the
membership at the January, 2019 Annual Members’ meeting; and
8.
issued approvals for a variety of issues, including a gas
line extension, fence approval, bat control, and garage damage repair; and
carried out a variety of routine maintenance activities.
Ruby Drive
Development Proposal; Chambers Creek Trail
During
2019, the Board reviewed information regarding a proposal to develop the Ruby
Drive open space, formerly occupied by a clubhouse, swimming pool, and tennis
courts, as a Planned Development District (PDD) of 16 new single family
residences, in accordance with the rezoning of the plot by the City of
Lakewood.
The
Board also followed plans for a 2.5 mile walking trail along the north side
of Chambers Creek from Kobayashi Park to the Chambers Creek Road trailhead.
Miscellaneous Items
During
2019, the Board pre-paid our insurance premiums; secured a “clean
audit” with no income tax owed; and continued our practice of making modest
contributions to our Reserve and Special projects accounts to reduce the
likelihood of future special assessments.
We distributed our Smart Watering, Winterization, and other guidance
documents to the membership. We also
approved, rejected, or proposed modifications to, a number of member
requests on a variety of topics.
Clarification of
Association vs. Member Responsibilities
During
the past few years, the Board has become aware of many actions by members who
have not secured prior Board approval as provided for in the CC&Rs, Bylaws,
or House Rules. Such actions have
included vegetation modifications; fence and deck construction; window
replacements; garage door modifications; driveway and sidewalk issues; and
construction of structures in the common area, which is owned and useable by
all members. During 2019, the Board
developed policies to clarify the respective responsibilities to the rear, side
and front common areas
New Board Members and
Officers
We
experienced the re-election of Steve Rinnan; election of Mike Tierney; and
appointment of Lew Mildon to the Board during 2019, all for terms expiring in
2022. Officers elected for 2019 were Ken
Karch, President; Al Glamba, Vice-President; Carol Rehnberg, Secretary; and Jim
Pearcy, Treasurer. Following Rehnberg’s
sale of her property, Mike Tierney was elected Secretary. Following Pearcy’s untimely death, Mike
McDonald was elected Treasurer.
Board Member
Orientation
As
a means of bringing new Board members up to speed as quickly as possible, and
providing a review for existing members, the Board carried out a series of
Board member orientation meetings during past years, and is likely to do so
again in the event new members are elected to the Board.
Customer Survey and
Goals
During
2019 we built upon priorities from the customer surveys of our full membership
carried out in 2014 and in 2019, seeking information on the issues you felt
were most important for the Board to address, and how well we were doing on
each. The Board adopted a set of goals
for 2019, based on your priorities, and has been operating under those
priorities throughout 2019.
Reserve Study
A
reserve study is required by state law for homeowners associations such as
ours, to give members an “educated guess” about potential year-by-year costs
over a 30-year time frame. The Oakbrook
Townhouses Board in 2009 undertook the first such study before the legislature
completed its work on the new law, undertook an interim review in 2011, and
completed formal updates in late 2012 and 2016.
You have been sent, or have been offered copies of the full reports, and
copies are made available as part of material required to be provided to
potential buyers of our properties. In
response to these studies, the Board has recommended, and you have approved
each year, modest incremental contributions to our reserve account. The proposed 2020 budget includes an additional
contribution of $30,000.
During
2020, the Board will undertake its next triennial reserve study.
New Disclosure
Statement
Last
year, the Washington State legislature approved modifications to the law
governing HOAs, by requiring preparation of disclosure statements outlining the
Board’s expectations over the next 5 years.
A copy of Oakbrook Townhouses’ disclosure statement was included with
the mail-out to all members, and copies are available at the sign-in table. Many
of the specific numbers in the disclosure statement are expected to change once
the 2020 Reserve Study is complete.
The
legislature also adopted a provision regarding budget approval which overrides
the provisions in our CC&R and Bylaws.
The new provision provides that the Board-adopted budget is approved
unless a majority of the unit owners, in person or by proxy, reject that
budget, and this provision does not require a quorum. This is a significant
departure from the ways budgets have been approved in the past at Oakbrook
Townhouses.
Respectfully submitted,
Ken Karch, PE
Pesident
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