1. Forest Rim Informational Meeting Deferred Maintenance
October 11, 2015

2. Agenda
Introductions
This is an informational meeting – no voting/no motions
Background
Board actions to date
Findings
Corrective action
Discussion

3. Background
Board identified deferred maintenance at 2014 Annual Meeting
Proposal to spend $1.3M over 5 years discussed
Estimated deferred maintenance from Team Engineering (TE) study
Association asked Board for more information
create summary of expense by year from TE study
prioritize buildings and units
look for root cause issues (roof leaks, siding, decks, drainage)

4. Board actions to date
Authorized Anderson Construction to provide a detailed 5 year maintenance plan by building and unit (no cost to Forest Rim)
Retained Black Diamond Builders to identify root cause issues for roofs and windows on selected repairs
Allowed unit owner funded deck repair to identify deficiencies
Summarized Team Engineering study by expense and year

5. Findings Anderson Construction created 5 year maintenance plan
estimate is $1.2M (exceeds TE study for like items)
photographs, written description and 5 year summary on FR website
Black Diamond Builders found material and craftsmanship issues on roofs and siding
Deck repair by unit owner also identified poor craftsmanship and inferior material
Identified an error in the TE study (staining estimate) saving $246k (TE total now $1,121k versus $1,367k)

6. Conclusion of Findings
Both Team Engineering and Anderson Construction studies support Board assertion of 5 year deferred maintenance restitution in range of $1.1M - $1.3M
Real world examples of roofs and decks illustrate some poor craftsmanship and inferior materials
Reasonable expectation that estimated costs are low
failed septic pumps and associated equipment
recurring flooding issues
poor building drainage
more sewer issues have been raised

7. How do we fund deferred maintenance?
One time special assessment
Spread over 5 years
Pro’s
no future special assessments
Con’s
current owner pays for everything
significant cost could cause hardship
cost ahead of improvements
Pro’s
improves timing of cost/benefit
owners can plan accordingly
adjust on an annual basis
Con’s
special assessments could be required

8. What does this mean for me?
Doubling condo fees raises $1.2M in 5 years for Capital Improvements
Increase starts with 2016 Budget
Ability to adjust on annual basis if necessary

9. Where do our condo fees go? What would change?
Roofs
30,000
Trees
5,000
Siding
2,000
Landscaping
30,800
Snow plowing
25,000
Staining
15,000
Utilities
9,500
Parking lots
6,000
Siding, roofs & trim
4,700
Chimney inspections
3,000
No significant change
Virtually entire fee increase
allocated to Capital Improvements
Insurance
35,000
Property Management
22,200
Accounting
5,000
Other Admin
2,800
Legal
1,000
Budget increases from 37,000 to 234,000
No significant change

10. Is $1.2M over 5 years the right amount?
No one can predict with 100% accuracy how much is needed
Estimates from 2 independent sources range between $1.1M – $1.3M
Board believes $1.2M estimate is reasonable
Plenty of evidence illustrating deferred maintenance issues
Board has deferred action for 1 year
Irresponsible to delay addressing issues any longer
Fees should return to a more normalized level at end of 5 years

11. Discussion

12. Backup Slides - Anderson Construction study on website
O2-1. Replace 1x4 18" on propane box
2.7' one row of siding next to propane box
3. Reside under the window above the back porch 4x4
4. Re-nail top left side of the chimney box and reside the front 5x20
5. From top of window to right of entry and up new siding 14x16
6. Touch up the stucco
7.6x9+5x12 siding above and to left of the entry
8. One fully split pork chop will get replaced

13. Backup Slides - Anderson Construction study on website
Index of /owners/Unit_Photos/O2
Icon Name Last modified Size Description
[DIR] Parent Directory
[IMG] DSC00601.jpg Sep : K
[IMG] DSC00602.jpg Sep : K
[IMG] DSC00603.jpg Sep : K
[IMG] DSC00604.jpg Sep : K
[IMG] DSC00605.jpg Sep : K
[IMG] DSC00606.jpg Sep : K
[IMG] DSC00607.jpg Sep : K
[IMG] DSC00608.jpg Sep : K
[IMG] DSC00609.jpg Sep : K

14. Backup Slides - Black Diamond Builders roof

15. Backup Slides - Pictures of deck rot

16. Backup Slides - Team Engineering Summary