Minutes of Board of
Directors Meeting
October 9, 2023
Oakbrook Townhouses,
Inc.
c/o Willow Properties
9527 Bridgeport Way
SW
Lakewood, WA 96499
The
regular meeting of the Board of Directors of Oakbrook Townhouses (OT) was held
October 9, 2023 at 7705 Zircon Drive SW, Lakewood, WA 98498.
A
quorum being present Board President Al Glamba called the meeting to order at
6:04 PM.
Board
members present were Nancy Dilworth, Al Glamba, Jim Allsopp and Ken Karch (by
phone).
Approval of Minutes
Glamba
requested approval of the Board meeting minutes of August 14, 2023 and
September 11, 2023.
Dilworth
moved and Allsopp seconded approval of the Board meeting minutes of August 14,
2023. The motion passed.
Allsopp
moved and Dilworth seconded approval of the Board meeting minutes of September
11, 2023. The motion passed.
Treasurer’s Report
Treasurer
Dilworth presented financial and budget information, as of September 30, 2023.
Checking
Account $ 10,131.11
Reserve
Account $ 194,547.96
Insurance
Deductible Account $ 5,042.32
Capital
Improvement Account $ 9,728.79
Insurance
Holding $ 24,000.00
She
also listed expenditures during September. She reported that both Karch and she
had estimated Operating Account EOY (end-of-year) balances resulting in
projections between about $8,000 and $15,000, following all expected receipts
and disbursements.
The
Board discussed potential for bankruptcies and correction of arrearages, and
the move to the accrual method of accounting from the previous cash method.
2024 Budget
Dilworth
indicated she is proposing, for first reading of the 2024 proposed budget, and
in accordance with previous Board discussions, a dues increase to $425 (from
$375 currently), or a special assessment
of approximately $50 for one year, both of which would cover an expected shortfall
of about $38,000 for 2024. The Board
discussed the reasons for the projected shortfall from 1) a 13.7% increase in
insurance premiums; 2) uncertainty regarding 2024 legal expenses; 3) a need to
rebuild the Special Projects account and make additional contributions to the
Reserve account to meet Reserve Study recommendations; and 4) a need to
undertake unexpected projects, including rear deck, driveway, and garage roof
replacements.
The
Board discussed the advisability of alternative disposal approaches for
materials collected during roof and gutter cleaning; a Board-requested study of
the condition of all rear decks by our General Maintenance contractor (to be
completed by December 1, 2023); and chimney repair & maintenance.
Glamba
distributed copies of a comparison prepared by Karch of four normalized
financial indices for the period 2005 thru 2023: the US Inflation Rate (a 56%
increase); the Social Security Adjustment rate (a 56% increase); the Pierce
County Assessor’s mean increase for all Oakbrook Townhouses properties (a 144%
increase); and total Oakbrook Townhouses dues and assessments (a 20% increase,
all over the 18 year period.
Karch
recommended establishment of a work plan for our General Repair &
Maintenance contractor, without implying that he is an employee.
Following
further discussion Allsopp moved and Dilworth seconded to approve the
Treasurer’s report for October 9, 2023.
The motion passed.
Heritage Restoration Lawsuit
Glamba
stated this topic would be deferred to later in the agenda.
Update on 2021 Audit Report
Glamba
reported he sent an engagement letter to Newman CPA, and that Willow Properties
was sending required information to the company. We have heard nothing since.
Glamba will contact Willow Properties to clarify progress.
Update on Decision on Wooden Steps and
Gravel at 7631 Zircon
Glamba
indicated he had no further information on actions taken since the last Board
meeting on this issue.
Update on Repairs of Exposed Piling at
7631 Zircon
Glamba
indicated he had no further information on actions taken since the last Board
meeting on this issue.
Update on Repair/Replacement of Rear
Deck and Shingles at 7411 Zircon.
Glamba
reported the work on these items is complete and has been paid. He asked for
Board ratification of the payment to PDQ in the amount of $5,100. Following
discussion, Dilworth moved and Allsopp seconded to ratify the payment of $5,100
to PDQ. The motion passed.
Use of Email Transmission of Draft
Monthly Meeting Minutes
Karch
requested that this issue be deferred to the next meeting.
Goal Assessment
Glamba
distributed the 2022-2023 Goals Assessment data received to date by Karch,
along with a proposed set of goals for 2024. The material was reviewed, but no
action was taken.
Risk Associated with Electrical Panels
Manufactured by Federal Pacific Electric Company and/or Federal Pioneer LTD
Glamba
and Karch described learnings they had received regarding risks posed by
electrical panels manufactured by Federal Pacific Electric Company and/or Federal
Pioneer LTD. The issue surfaced as a
result of electrical work requested by Karch, and is widely reported
online. It was also addressed in a
walk-through by Glamba with Liberty Mutual as a potential insurance issue.
Karch has subsequently replaced his Federal Pacific panel, but it appears that
the same panels were installed in the 1970-1972 time frame in a number of
Oakbrook Townhouses properties. Plans are underway for further assessments.
Update on Driveways at 7417 & 7533
Zircon
Glamba
reported that the Goals adopted for 2022-2023 included driveway
repair/replacement at 7417 and 7533 Zircon, both of which have been deferred
pending a budget review.
Painting of Garage Door at 7409 Zircon
Glamba
reported the repainting of the garage door at 7409 Zircon and repair of loose
tile has been completed.
Ivy Removal Behind the Units
Glamba
reported that there is nothing further to report on this issue.
Update on Gutter Overflow at 7419
Zircon
Karch
reported that work on the upper gutter several weeks ago to prevent streaming
of water onto the sunroom roof was unsuccessful, as evidenced during the recent
storm (the first since the work was done). A request for correction has been
submitted to Willow Properties.
Update on Receipt of Property Management
Proposals
Glamba
reported he has received two alternative property management proposals, but
none so far from Willow Properties, despite being requested. He has had one interview.
Update on Timely Payments of Insurance
Premiums
Glamba
reported we have received another Notice of Cancellation from Liberty
Mutual. The Board discussed in detail
the reasons for this, including steps Willow Properties could have taken to
prevent its recurrence.
Update on Reserve Account Balances
Karch
reported on his assessment of EOY Reserve Account balances from 2011 thru
August, 2023. Analysis showed a steady
annual contribution to both the Reserve Account and the Special Projects
Account from 2013 thru 2018 and a drop off since. The Reserve Account has been holding steady
since 2019, oscillating around $180,000, but the Special Projects Account has
been almost totally depleted to about $7,000 now (from about $240,000 in
2018). The Board made a conscious
decision to use much of the Special Projects
Account funding for a variety of projects in 2019, largely roofing and gutters,
thereby putting off another round of replacements by many years.
Executive
Session on Heritage Restoration
It was moved, seconded, and approved to
adjourn to Executive Session. Following Board discussion, during which no Board
actions were taken, it was moved, seconded, and approved to return to general
session.
Invoice
from McFerran Law
Glamba requested approval to pay an invoice
from McFerran Law in the amount of $731.35 for legal services through September
25, 2023. Following discussion, Dilworth moved
and Allsopp seconded to pay the invoice from McFerran Law in the amount of
$731.35. The motion passed.
Next Board Meeting
Glamba announced the next Board meeting will be held on November
13, 2023 at 7425 Zircon at 4:00 PM.
Adjournment
It was moved and seconded to adjourn the meeting. The motion
passed. The meeting was adjourned at
8:20 PM.
Respectfully submitted,
Al Glamba, President
No comments:
Post a Comment