Board of Directors Meeting Highlights - December 2, 2020
Discussions during the Board of Directors meeting revolved around crucial topics such as Earthquake Insurance, On-Site Manager updates, CC&Rs, Financial Studies, and General Board matters. Key decisions were made regarding appointments, resignations, and handling earthquake insurance issues. The meeting delved into the reasoning behind not having earthquake insurance, the potential need for updating the CC&Rs, and considerations for a new On-Site Manager. Additionally, voting for open board seats and addressing financial implications were significant agenda items.
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Summary: Board of Directors Topics Discuss Earthquake Insurance Discuss On-Site Manager Updating CC&Rs Updating Financial Studies Open Forum Random Items Updates General Board Minutes General Board Minutes Deep-Dive Session 2 December 2020 TempleLofts.net 835 Locust Ave, Long Beach, CA 90813
Board of Directors Topics 2020 Vote Tonight 2021 Vote Seats President Shae (Resigned) <off year> <off year> Travis Chris Vice-President Daniel Daniel Daniel <off year> Treasurer Kirsten <off year> <off year> Kirsten (Appointed) Kirsten (Resigned) Secretary Stanton Lyndell (Resigned) Chris (Appointed) OPEN SLOT Mark (Appointed) Member Shae Shae OPEN SLOT Travis Voting: Sign-up for running for the board received 11/30/2020.Let us know if you haven t. 2 open slots. Appointing someone who is Mark Friedman Accept Kirsten s resignation and appoint her back to Shae s vacated spot We ll have the 3 board members stay and the other 2 slots open 1. Kirsten Resignation, Appointment to (to Shae s seat) 2. Appointing Higgins to President 3. Appointing Mark Friedman (to Kirsten s old seat) - to help us over the next 3 months
Earthquake Insurance The Reason we don t have EQ Insurance: $5-10M $23-32M $6-10M Deductible (Before Any Insurance $) Paid by HOA ($72-120k/unit) Insurance Coverage ($60-120k/unit) Building Rebuild ($43M) ($277-385k/unit) Option Repercussion Coverage Cost Earthquake Fund Update the CC&Rs to remove requirement Most issues in the deductible range We keep the money If Total Loss Distribute Money, Sell Land $10M/15% $81k/yr $10M/20% $76k/yr Get lesser EQ insurance Request lesser coverage or provide budget Dues increase (10%) $10M/25% $71k/yr Get medium EQ insurance (shown on the left) Current quote Significant dues increase (15-20%) $5M/15% $106k/yr Get high EQ insurance Request more coverage Very significant dues increase (>20%) NOTES: Suggest that everyone ALSO gets their own Personal Policy within the walls (EX: $90/mo buys $200k total coverage) There is no definition to what level coverage is necessary in the CC&Rs
On-Site Manager Question #1: What do we need? Do we want to replace Pete exactly (with Contracted Pete or a Full-Time Equivalent) Do we want to cover his responsibilities in a different way Potentially: https://callsierra.com/facility-services/ Flagshipinc.com A new system that would look a little different than Pete. Options are: Full-Time On-Site (Employee or Contracted) Part-Time On-Site (Employee or Contracted) Why ask the question? We are in a unique position to analyze how that position operated and potentially tweak it We are maxed out on income vs. expenses and this could be a way to tip it back (i.e. larger dues increases) We do not have Earthquake or Flood insurance (i.e. larger dues increases) We are behind on Reserves (i.e. dues increases)
On-Site Manager (Maintenance Schedules) On- -Site Manager Site Manager On Service Provider Service Provider Item Vendor Name Cost Periodicity Item Interior Common Areas: Walk through all Interior common areas, on ever level and inspect the following: Exterior Common Areas: Walk through all exterior common areas, on ever level and inspect the following: Periodicity Janitorial Personal Touch Cleaning (PTC) $ 3,342.00 Daily (Paid Monthly) Trash Republic $ 2,547.95 3/Week (Paid Monthly) Weekly Gardening TS Landscaping $ 1,000.00 Weekly (Paid Monthly) Spa Step into Pools $ 300.00 Bi-Weekly (Paid Monthly) Weekly Orkin Pest Control (Rodents and Insects) Orkin Phillip $ 167.00 Monthly Security Cameras Fire Notifier Remote Ally AIMS $ 80.00 $ 30.00 Monthly Monthly Garage: Walk through all garage areas, on ever level and inspect the following: Weekly Insurance Farmers $ 2,255.08 Monthly Internet, Phone, TV Frontier $ 451.69 Monthly Burglar Alarm Lobby Floors - Condition (Wax) Boilers (Main Building) Hot Water Heaters (Towers) Water Pumps (Garage) Elevators Validation of permit as well Sump Pumps HVAC System, Plus Temple-owned AC units Valley Alarm TBD $ 49.95 TBD Monthly Monthly Building: Walk around the exterior of the Building and inspect the following: Weekly REC Plumbing (Tony) TBD Quarterly Roof surface condition - Report all damage/worn roof coverings & flashing Monthly Otis $ 1,210.07 Quarterly Fan Units - Check for vibration/noise/fan belts Boiler Room - Inspect for Leaks & Noise Garage Doors: Inspect and Lubricate hardware. Inspect mechanism for free travel. Zipties for covers. Pressure Washing and Walk-way Washing Locks and Doors (Oil and Maintain) Gutter Cleaning Patch and paint small issues around the building Prep keys by cutting and keeping 2 spares on-hand Programming keyfobs Programming front-door Install/Change bulbs Add users who request website access Add/coordinate elevator/common room reservations to the shared calendar Repair other simple handyman type items Monthly Monthly L.A. Hydrojett TCI TBD TBD Quarterly Semi-Annually Inspect Roofing For leaks Long Beach Roofing (Warranty Provider) $ 1,000.00 Semi-Annually Window Washing South Shore $ 6,811.76 Semi Annually Monthly Garage Door Maintenance Agreement Byers and Butler TBD Twice Yearly Drain Lines - Jetting L.A. Hydrojett $13,000.00 Yearly Quarterly Quarterly Quarterly Check Balconies and Walkways Waterproofed Hot Water Heaters/Boiler WICR Waterproofing Yearly Water Pumps REC Plumbing (Tony) $ 755.00 Yearly Bob peters fire and safety/ Safeguard fire and safety Old company was CalFire Annual certification: Unit Alarms, Fire Extinguishers 5yr certification: Standpipes Fire alarm TBD Yearly As needed - Conducted next working day Fan Room Roof-top Vent Motor Maintenance E Light Testing Fire Inspection (horns, sprinklers, smoke detectors) Dryer Duct Cleaning Trash Chute and Compactors - Compactor: Check eye and reflector Budget Reserve Study TCI TCI Guardian Guardian Action Ducts TBD TBD TBD TBD TBD Yearly Yearly Yearly Yearly Every Other Year TBD As Needed AllstateHOA TBD Yearly - November Every 3 Years
Item Interior Common Areas: Walk through all Interior common areas, on ever level and inspect the following: ~ Floors - Cleanliness/Trash ~ Walls - Major markings/scuff marks on paint & Damage to walls ~ Lights - Dead bulbs & Damages to light fixtures ~ Doors - Test lock, turn handles, & Door hinges ~ Doors - Paint scuffs/Damage ~ Gym Equipment - Check condition/Damage to all equipment ~ Recreation Room - Check condition/Damage to all equipment ~ Furniture - Check condition/Damage to common area furniture ~ Check all residences for violations ~ Check within all rooms and storage facilities for any issues/leaks/etc and anything outside of storage lockers (throw away items upon next inspection) ~ Inspect for bugs and rodents Exterior Common Areas: Walk through all exterior common areas, on ever level and inspect the following: ~ Floor - Cleanliness/Trash ~ Floor - Check for cracks or any sign of dampness ~ BBQ Area - Cleanliness, damage, & gas connections ~ Lights - Dead bulbs & Damages to light fixtures ~ Plants (Pots) - Check and water all plants in pots ~ Jacuzzi Area - Cleanliness/Trash, Operating correctly ~ Doors - Test lock, turn handles & Door hinges ~ Doors - Paint scuffs/Damage ~ Inspect for bugs and rodents Garage: Walk through all garage areas, on ever level and inspect the following: ~ Check for cracks or any sign of dampness or leaks in Ceilings ~ Check walls for dampness/mold & paint damage ~ Garage floor - Look for water damming/leaks ~ Lights - Dead bulbs & Damages to light fixtures ~ Inspect and note loose items stored by Owners at parking spaces. ~ Inspect and note vehicles parked in Guest Parking ~ Exterior property cleaning - On-Site, Cleaners, Landscapers ~ Check all electrical outlets for theft of building power, Installing outlet locks on garage area outlets if missing ~ Inspect for bugs and rodents ~ Inoperable vehicles stored in the garage Building: Walk around the exterior of the Building and inspect the following: ~ Landscape Areas - Cleanliness/Trash/Maintenance ~ Locust Ave & 9th Street Sidewalk - Inspect for Trash/Dog doo-doo and Damage ~ Exterior Walls - Inspect for Damage/Graffiti ~ Exterior Doors - Inspect locks & turn handle operations ~ Exterior Doors - Inspect paint marks/scuff marks ~ Flag - Inspect, Replace ~ Inspect for bugs and rodents Roof surface condition - Report all damage/worn roof coverings & flashing Fan Units - Check for vibration/noise/fan belts Boiler Room - Inspect for Leaks & Noise Garage Doors: Inspect and Lubricate hardware. Inspect mechanism for free travel. Zipties for covers. Pressure Washing and Walk-way Washing Locks and Doors (Oil and Maintain) Gutter Cleaning Patch and paint small issues around the building Prep keys by cutting and keeping 2 spares on-hand Programming keyfobs Programming front-door Install/Change bulbs Add users who request website access Add and coordinate elevator and common room reservations to the shared calendar Repair other simple handyman type items Periodicity Weekly (Tuesday) Weekly (Tuesday) Weekly (Wednesday) Weekly (Thursday) Monthly (1st Tuesday of the Month) Monthly (1st Tuesday of the Month) Monthly (1st Tuesday of the Month) Monthly (1st Wednesday of the Month) Quarterly (1st Wednesday of the Quarter) Quartely (1st Thursday of the Quarter) Quarterly (1st Thursday of the Quarter) As needed - Conducted next working day
Updating Financial Studies Alan and Pete have been working with the Board Located last full reserve study (2017) Processing new full reserve study (2020) LBHS has November Financials due to us, then it s official AllstateHOA processing End-of-Year numbers and 2021 Budget Reserves Based on FY 2020 Budget Target is $980k as of December 31, 2019, Then balance of ~$425k 43% of the ideal balance 83 units, Ave $522/mo, $520k/yr
Updating CC&Rs Roseman Law: $6k for all documents (CC&R, Bylaws, Collections, etc) CC&Rs: Old - from the construction company, lots of items out-of-date Advised by: LBHS said we need to update, AllstateHOA agrees, old/new legal agree LBHS mentioned it would be ~$20k relieved CC&Rs state the need for EQ and Flood insurance which we do not have currently need to update per decision Let us know if there is anything missing you think needs to be added/clarified
Random Items Butterfly Garden: In progress Missing Elevator Key: Anybody have it? May have to rekey if not... Security during move-in/move-out Would love to hear ideas on how to better the process. We re communicated with for move-in/move-outs We turn off the alarm during that period so as not to bother residents We communicate that the door must be attended to, and elevator key returned. Sometimes none of those things are followed... we resort to fining. Elevator door maint - Otis monthly, we can call them and make sure it's serviced when they come out Elevator Padding A little warn. We ll see who owns it and what nicer ones would cost may be PTC s property. Why not take it down? Boiler Room Leak/Mold/Drywall/Paint: Finished, cost over $6k, need some proactive work for the future as it already leaked again Hot/Cold Water Crossover Issue (x15 stack): How to test for bad cartridges? Plumbers want nearly $1k to diagnose and it ll happen soon after Roof Leak: Under warranty Fire Notifier: Less false alarms, Mapping the building so lookup/fixing is easy Orkin: Covers in-unit coverage if anybody needs him to stop by when he s here monthly Fire Inspections: Finishing those up, checking the emergency lights in stairwells and garage Cleaning: Sump-Pump and South Parking lot bringing sewage cleaning company to sanitize. And setting up periodic cleaning of the sump- pump. Building Electricity: It s paid to the building, getting outlets installed and locked-down, analyzing the bill, looking at light sensors Legal Representation: Retaining Roseman Law - $500 yearly service for free calls and lower fees, taking care of the updating of our documents
