Predict the future by creating it

7.Board Recommendations

• Continue to repair and replace portions of the envelope while addressing the identified “high” risk decks (WJE-identified EEE). Over the next 5 – 8 years, this would end up in the $6M to $10M range

• Add the ‘medium’ decks (WJE-identified EEE) and expect $15M to $20M in costs.

• Either a special assessment would be required or a bank loan, but at the end of the project, which will take 3-4 years, in effect, you still have buildings that have reached their end of life, and it would appear much of the work may have to be replaced when doing a full CBER. This is not a recommended solution as much of the work at some point would have to be redone.

• Repair all the WJE-identified decks (EEE) and include the entire side of any building. Also when identifying any significant rot for repair that is more than an isolated area, continue to fix and complete the whole side.

• This could be a lengthy process, and the costs could be significant. It would require prioritization of buildings and, again, a substantial assessment. There could be considerable cost increases depending on the time needed to work in this manner. This is an interim method choice. It would require choosing all component materials and discussing the different batching of materials with the manufacturer over time. Ultimately, it would be more expensive, but work and materials are not being duplicated.

Option One

Option Two

Option Three

• Commit to a plan to move forward to a complete Comprehensive Building Envelope Restoration (CBER)

• Focus on a single HOA financing loan over an extended period (20 - 30 years)

• As the report and analysis outlined, we expect the CBER numbers offered to be within 5-7%. The numbers represent the actual bidding of component products and the estimation of labor based on the date the information was analyzed. This is done in the same manner as if a new complex was being forecasted to build a new complex but with the nuances of renovation of an in-place building envelope. For this purpose, it is reliable when making decisions based on the figures. That said, particular types of components, such as siding and more, will and can affect the numbers, as will the time period of actual bidding and procurement.

Discussion:

• Making a Decision:

  • What is the Best Option

  • Make a Plan of Attack

  • Who are the Right Partners

If you require clarification on anything please contact me at the numbers and email below.

I will see you on the 22nd for the meeting.

Jay Grant

Although we can offer various options, including continuing the current approach, it is increasingly becoming less viable. It is crucial to acknowledge that the building envelopes are nearing the end of their life cycle, as supported by the information we have provided.

Furthermore, the EEEs, as identified by WJE in the SB326 requirements, present a significant financial challenge. Our analyses indicate the need to address the best financial value proposition. While immediate repair requirements should continue, ongoing piecemeal repairs are only a short-term solution. There are clear benefits to the community implementing a well-structured plan.

The current reserve plan has not planned for a comprehensive envelope building restoration (CBER) project. Based on the envelope condition, the assumption must be made it needs to be addressed shortly but not longer than ten years at most. This delay, however, would likely triple the current funding requirements at that time. As addressed in our report, this cost must be considered significantly depending on the Board's decision.