Estes Park Mountain Fairways HOA

Feb 10th Town Hall Meeting Minutes 01-28-18

Estes Park Mountain Fairways HOA
1/28/18
Town Hall Meeting
re: 2018 Roofing Project

Attendees: Susan Novy, Rick & Claudia Jordan, Pamm Haglund, Kathy Beatty, Elen Crone, Sherry Rielly, Linda Buehring, Diane Yoblin, Nipan Karmacharya, Nan Belknap, Chris Metzger,
Phone Attendees: Aaron Voboril, Pete & Linda Hogue, Steve & Anne Poznic, Ronnie LaRue, Justin & Maria Caulkins, Jay Nelson, Joan Baker

Call to Order: 3:00pm

Review History of Project: Pamm reviewed the project and how we got to this point from the information posted on the website.
She stated that Aaron started noticing problems since 2015 with cracking that needed to be caulked. Every year since, we’ve done annual inspections of the roofs, skylights and gutters. Each year there’s been more cracks to caulk, gutters to replace that had blown away with the wind, and skylights that leaked. We had roofers look at our roofs and they thought we might have a claim towards Tamko, the manufacturer of the shingles. No roofer thinks that anyone will ever get 50 years out of 50 year shingles in this climate due to high UV and high winds. Most professionals expect more like 25 years on a 50 year roof, hence the 25 year roofing reserve.
We submitted a claim that included 2 shingle samples per building (12) and a total of 50 pictures and a flash drive of the paperwork. We received an award of 80% of shingle material and $1200.00 for the process of the claim that we sent in. We are beyond the labor part of the warranty.

At our Dec. 9, 2018 board meeting Buildings & Grounds presented why they think we should replace all the roofs, the skylights and gutters and that they chose Majestic’s bid, which included total project management of the roof and skylight.

Q. Why are the gutters part of the special assessment instead of out of our regular maintenance fund?
A. By Pete: We have $60,000.00 in our roofing reserve, which is where the gutter maintenance comes out of. So it is coming out of our regular roofing maintenance fund.

Q. What is the total for the roofs, skylights and gutters?
A. $181,000 for roofs & skylights ($60K of award is figured in to that figure) & $40K for the gutters. The $60K reserve will be used for that and any other unforeseen expenses that come up through the project.

Review Bids: Aaron reviewed the bids and answered questions from information posted on the website. (epmfhoa.com)
Apex would have to do the work in the winter and Roof Check came in quite a bit higher, so both those were rejected. That left Loveland Roofing and Majestic. Loveland added the permits on each building as an extra. Majestic included the permits and ridge venting and skylights. He gave us a screaming deal on Velux skylights (84) at only 15% over his cost. (These are some of the best in the industry and come with a 10 year warranty. These are not the bubble kind that some of us have, they are flat, like a double pane clear window.) And, Majestic’s total is the lowest of all. So that is who we will use.
For gutters: We looked at 2 companies that came in very close with each other. Thermal Concepts works with Majestic, so we chose Thermal Concepts. Both are seamless.
Shingles: pictures of the cracks were shown. There are thousands of these cracks with both horizontal and vertical cracks.

Q. Why do we have to have an increase in the roofing reserve now, to make a correction, after this assessment, when most will not be here in 25 years? Can we at least wait another 5 years?
A. We have no data as of 2018 for speculation on the reserve for the next 25 years that would necessarily increase dues currently.

Q. What is the warranty on the new shingles?
A. This is a replacement warranty figured on the original purchase date. So now we’re at 80% of the timeframe of the 50 years. Any failure of the new would start at the 80% of 50 years.

Open Discussion:
Q. Why, if your condo doesn’t have any skylights, are we having to pay for other’s skylights?
A. HOA’s are socialism. We all own the property structures. The board has wrestled for hours about finding a fair way to split all the factors of differences between the units. It was a nightmare to figure a way, other than to make the split with insurance as to the small, medium and larger units. The rest of the operating expenses were split equally.
There was plenty of discussion on this.

Q. Should I wait for this project to begin before adding venting to my bathrooms that needs to go through the roof.
A. Aaron thinks it could be coordinated with this project.

Finance Options: Pete went over the options listed on the website. All could pay 6K in 2018; or those who could pay 6K would, and those who couldn’t pay 6K at once would pay 2K per year starting in 2018 for three years and $400.00 the 4th year to cover total borrowing costs of 6%. We would need at least half to pay 6K in 2018 to do the loan option. The loan is the obligation of current unit owners. Should they sell, the money will come out of the closing costs.

Survey of Owners Preferences:
We took a survey of those present (with some providing known preference information non-present owner) on two questions:
a) do you plan to vote YES on allowing a 2018 $6,000 special assessment as a one time exception to the relevant provision in our Declarations?
b) if the vote fails and we have to go to our fallback loan approach, do you plan to say YES to pre-paying all of your $6,000 multiple year obligation in 2018?

The result was 18 YES and YES plans, for a with 1 NO and NO plans – leaving 10 with unknown plans.

An official vote with a signature is still needed from everyone.

Adjourned: 4:50pm

Jan 26th Project Documents

These three documents detail the Roofing-Skylight-Gutter project:

Project Proposal
High Level Time-Line
Project Plan

Jan 23rd Financial Alternatives

This document describes funding alternatives for this summer’s Roofing and Gutters replacement project to be discussed at the HOA Town Hall Meeting on Sunday, January 28th at 3.00 p.m at 1457 Matthew Circle, Pamm Haglund’s condo. If you are unable to attend please dial the telephone conferencing service 712.832.8330 and use access code 5472727.

FINANCIAL ALTERNATIVES – ROOF REPLACEMENT PROJECT
ASSOCIATION LOAN FROM OWNERS ILLUSTRATIVE SCENARIO

Jan 14th Tamko Allowance

This is what Tamko is awarding per unit, in terms of roofing squares: MFHOA Overall Roof Sizes By Roofing Square Measure, TAMKO Award By Roof Square and Percent

Jan 14th Timeline

This is the timeline that determined the roofing proposal: MFHOA Roof, Skylight and Gutter Replacement Effort Background Timeline

Dec 9th Bids

Roofing Bids:

Roofs and Skylights: MFHOA Loveland APEX Majestic Roof Check Roofing Estimates

Gutters:MFHOA Front Range And Majestic Seamless Gutters Estimates-1

Dec 9th The Basics

The HOA has 13 buildings

100 square feet of roofing, or 3 bundles = 1 square (in roofing lingo)

Our buildings total 725 squares + 10% waste= 800 squares

We have Tamko Heritage/Autumn Brown  50 year shingles, 15 year wind warranty, 7 year full start period (roofing lingo for the amount of time they will fully warranty the roof and cover labor costs. After that, the materials are pro-rated and the labor is not covered). We are a few years beyond that.

Currently (2017), their new full start period is 15 years.

tamko-fiberglass-and-asphalt-shingle-limited-warranty-and-arbitration-agreement

The roofs were last replaced between 2006-2008.

Our 25 year roof reserve was started in 2012 and collects $9285.00/year. We currently have approximately 60K in the reserve.

Problem: We have had some cracking and splitting failure on all roofs, so we sent samples to Tamko to determine if it was the shingles that are faulty. Tamko determined the shingles are faulty and will replace with the exact same style and color 80% of actual squares (no waste) = 580 squares. This offer is good until August of 2018. We can not get the dollar amount, only the goods delivered to our roofs. The dollar value is approximately 60K.

roofcalc.org  : This site is loaded with information about what to expect to pay for roofing.

Heritage 50 year = $85-95/square x 800 squares = $72000.00

national average for underlayment, flashing, ventilation and nails= $17./square x 800 = $13600.00

national average for labor (removal & disposal of 1 layer + replacement) = $260/square x 800 = $208000.00

total for replacing all roofs = $293600.00

less  80% of the cost of the replacement shingles = (60000.00- Tamko’s award)

The total our estimates shouldn’t go over= $233600.00