DRAFT
Annual Meeting Minutes DRAFT
January
16, 2024
Oakbrook
Townhouse, Inc.
c/o
Willow Properties, Inc.
9527
Bridgeport Way SW
Lakewood,
WA 96499
by Al Glamba
Last year during this time we had 22 unit owners who were delinquent on their monthly dues in the total amount of $28,656.00. We have made substantial progress in reducing the total amount of the arrearages. As of December 31, 2023, although we have 25 unit owners who are not current with their monthly fees and dues, only seven of those unit owners are in arrears on their monthly dues and fees in an amount exceeding $375.00, which totals $13,786.00. Nevertheless, that is over $13,000.00 that Oakbrook Townhouses, Inc., does not have in its operating account to spend on the needed expenses of the Association. So, we need to do better in reducing the total amount of those arrearages.
With the possible exception of gasoline, the cost of nearly everything has gone up, except your monthly dues, which have remained the same at $375.00 per unit per month. As a result, the Board of Oakbrook Townhouses, Inc., has had to delay or defer some necessary repairs until the following year, which repairs did not pose a danger to life, health, or safety. Thus, the Board has determined that it is necessary to increase the monthly dues from $375.00 to $425.00 to account for these increased costs and to meet its obligations for 2024.
Our general liability insurance costs increased 13.3% this year and are projected to increase even more next year, just check out the amount of your increased premiums on your homeowners and automobile insurance policies. The insurance industry has taken heavy losses with all the natural disasters that have taken place this past year, and some insurance carriers have elected not to provide new insurance policies to homeowners in Florida and California because of the high insurance risks involved in those areas. The premium on our earthquake insurance policy increased 12.1% this year. The cost of providing basic cable service for our unit owners is projected to increase 6% this year. Even the cost of water is projected to increase 8.9% this year.
Since the Board did not have sufficient funds to pay off our general liability insurance policy premiums all at once as we have done in the past, the Board had to resort to paying the insurance premiums on a monthly basis and incurring the charges associated with paying the insurance premiums on an installment plan. Further, the insurance deductible for our insurance policy with Liberty Mutual Insurance Co., was increased from $5,000.00 to $10,000.00, and Liberty Mutual Insurance Co., did not give us the option to maintain the insurance deductible amount at $5,000.00.
The Board believes that with the increase in the monthly dues to $425.00 per month that the projected reserve, special projects, maintenance, and related account balances will be sufficient at the end of 2024 to meet the obligations for major maintenance, repair, or replacement of reserve components during 2024.
The Board negotiated with Willow Properties for a new property management agreement and was able to lock in the monthly property management fee for both 2024 and 2025. A major factor in selecting Willow Properties as the provider of property management services for Oakbrook Townhouses, Inc., was the fact that Willow Properties has acquired software to keep track of our uncompleted work orders, it is just that Chris Morris needs to be trained on how to use that new software to keep track of our uncompleted work orders.
The Board is still awaiting the results of the audit for 2021, which is expected any day now, and which audit report will form the baseline for the 2022 audit report.
The Board is still making deposits of $2,000.00 each month to our capital improvements and reserve accounts, respectively, which over the years had been severely depleted and needs to be built back up.
Our litigation for the fire damage claim is still ongoing. The status call with the judge in the litigation against Heritage Restoration, Inc., has been pushed back to March 1, 2024. This will allow us time to pursue our claim against Liberty Mutual Insurance Co., for acting in bad faith, which action had been recommended by our attorneys. As a result, we entered into a letter of engagement for professional services with Miller Nash LLP, a large legal firm on the west coast noted for its ability to do battle with insurance companies, in order to pursue our bad faith claim against Liberty Mutual Insurance Co. That action will force the removal of that case from the insurance adjuster to the legal offices of Liberty Mutual Insurance Co., who will face the specter of paying out possible treble damages and the reimbursement of all our attorney fees if a judgment is rendered by the court against Liberty Mutual Insurance Co., for acting in bad faith.
During this past year, we have had two of our cluster mailboxes decapitated. One was the result of a hit and run, and for the other we were able to obtain full reimbursement from the vehicle owner’s insurance company for the cost of the repairs to the cluster mailbox. I am happy to report that since we strategically placed reflective tape on our cluster mailboxes, none of our cluster mailboxes have been decapitated or even damaged.
To meet the recommendations of our general liability insurance carrier, Liberty Mutual Insurance Co., the Board requested the unit owners to self-certify and provided self-addressed envolopes to identify the manufacturer of the electrical panels of the junction boxes in their garages because some of those electrical panels could fail and could pose a fire risk. The Board also requested that the unit owners self-certify that they have at least one functioning and accessible fire extinguisher in their units, or if absent, will acquire a fire extinguisher within 60 days. The Board further requested that the unit owners who have wood burning fireplaces and use them self-certify that they will have those wood burning fireplaces inspected and cleaned on an annual basis. The responses from the unit owners so far have been less than desirable, 21 so far, and the Board requests those unit owners who have not yet submitted their self-certifications to Willow Properties to do so in the self-addressed envelopes that were provided to them.
To reduce fire risks unit owners are reminded that combustible material-soaked rags do not need an open flame to burn. Those combustible material-soaked rags may spontaneously combust in the presence of heat and oxygen.
The Oakbrook Planned Development community across the street on Zircon Drive SW has sold all its single-family dwelling units, and we have a cordial relationship with our new neighbors.
The Board placed no trespassing/no unauthorized vehicle signs in front of the two end units of Oakbrook Townhouses pursuant to our agency agreement with the Lakewood Police Department, which granted the Lakewood Police Department the authority to remove trespassers and unauthorized vehicles from the premises. The Board clarified its position that cargo vans parked on the driveways of the unit owners are not considered to be unauthorized vehicles.
During the past year, the Board had an electrical failure of the outside lamp posts of several of the units repaired without the need to jackhammer through a concrete driveway to obtain access to the electrical line that needed to be repaired and was able to obtain a credit of $500.00 for the work that was obviated.
The Board had a sewage line cleaned out that was causing a sewage backup in one of the units and could have impacted other adjoining units.
The Board had a leak detection firm come out and locate the source of a major leak in the water line in the common area in front of Building 1, and then had that water leak repaired, which required excavation far below street level to reach that damaged water line. The Board also had the leak detection firm come out to locate the source of another reported water leak, which turned out to be a broken angle stop valve within the unit. So, please check your angle stop valves below the tanks of your toilets so that they are operating properly, so we can avoid incurring such expenses in the future.
The Board had P.D.Q. Construction replace three rear decks and the adjoining dry rotted boards to those rear decks. Further, the Board has requested P.D.Q. Construction to survey all of the rear decks at Oakbrook Townhouses and to present a report to the Board about the conditions of all the rear decks that were surveyed.
The Board had a garage roof replaced with major water leaks and is in the midst of having another garage roof replaced with similar water leaks.
Further, the Board had two dead hemlock trees in the rear of Building 1 cut down because they posed a safety risk and had three backflow preventer valves certified as required by the City of Lakewood.
In addition, the Board adopted a Pesticide Policy requiring the unit owners to certify that they will apply pesticides in accordance with applicable laws governing such application and understood that the unit owner will be responsible for any damages to persons, pets, wildlife, landscaping, and property.
The Board adopted a set of Work Order Principles, clarifying the responsibilities of the Board, its members, and its property management firm for member requests for work to be performed in the common area.
The Board is currently operating at the bare minimum required by the Bylaws of Oakbrook Townhouses, Inc., of five members. The Board has already lost its Treasurer because of health reasons, and the Board needs new blood, preferably healthy new blood, to reinvigorate the Board and to ensure the Board’s continuation as a viable and vibrant entity, and we request all unit owners to give serious consideration to serving on the Board. At this time, I would also like to thank the former Board members who although they were no longer on the Board, still allowed their residences to be used for a few of the monthly Board meetings.
Treasurer’s Report
Karch presented the Treasurer’s Report, as follows.
As you all know Mike McDonald, our Treasurer for many years has sold his unit, and our successor Treasurer, Nancy Dilworth, has had to resign due to health reasons. So you’re stuck with me.
Seriously,
I worked closely with Mike and Nancy during their tenures and hope this report
won’t be too far off. We all owe a debt of gratitude to Mike during his many
years as Treasurer and to Nancy for her long dedication to the interests of our
members.
2023 Financial Data
You will have noticed on the table a copy of the December 31, 2023 financial data for the Association, in the form of 3 pages showing the balance sheet and income statement for the past year. It was not mailed to you December 12 as the end of the year had not yet occurred. We finished the year with our Operating Account at about $4,500, our reserve and insurance set aside accounts at about $253,000, and our Accounts Receivable account at about $17,000. Al described the changeover to an accrual accounting system from our former cash accounting system, resulting for the first time in an Accounts Receivable account, the largest part of which is late dues payments.
2024 Budget
You also received in the mail a copy of the Board-adopted 2024 budget, along with a document explaining the State-legislature adopted process for rejecting a budget adopted by the Board for HOAs.
To get to the 2024 budget, the Board reviewed expenses from 2023, projections for 2024, the Board-approved goals, the new reserve account received just a year ago, and projections of the general level of inflation.
You heard a first cut at the Reserve Study from Al at last year’s Annual Meeting, and the Board has done further study on it this year. We are entering a 5-year period of relatively low expenditures, but anticipate large expenditures during the following 5 years, for a re-painting job, additional rear deck repairs/replacements, and garage roof replacements. It is important that we rebuild our reserves to accommodate those higher expenditures.
Incidentally, you may receive a copy of the most recent Reserve Study from Willow Properties without charge for an electronic copy, or at $0.15 per page (it goes 55 pages).
The result is the Board-approved budget for 2024 in an amount of about $329,000, resulting in an increase in monthly charges to $425 from $375.
2025 Budget
Five Year Plan
In late 2018, the
Board developed and reviewed a several page Five Year Plan. The plan included data from the then newly
completed 2017 Reserve Study. The plan
needs to be updated, using new data provided in the 2023 Reserve Study. The
Board expects to do so this year.
RCW Required Disclosure to Members
RCW 64.38.025
requires an annual financial disclosure to the membership, based on results of
the most recent Reserve Study. This
needs to be continued annually. The most
recent document has been mailed to the membership with the December, 2023
mailing.
Al
Glamba, President
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