Association Financial Topics
1. What is the status of ALL delinquent homeowner association assessments? Most feel that the owners that consistently pay all of their assessments in a timely manner should receive priority remediation, cleanup and reconstruction. Why isn’t this possible?
Starting November 30, 2008 PMG will post current account reports including the delinquent accounts onto the PMG website.
The Board of Directors has reviewed all options related to the expedient reconstruction of the community. The most efficient and cost effective schedules will be established after thorough construction and financial analysis is completed for each building. Currently the board is obtaining volume reconstruction pricing from general contractors. The delay of certain condominiums will increase management costs and negatively impact volume pricing.
The Associations have reviewed a “white boxing” approach that would leave condominiums associated with delinquent Association dues at the sheetrock stage. Association bylaws and legal counsel have both indicated that the reconstruction shall be in accordance with the plans and specifications under which the Condominium was originally constructed. In reviewing the options for the benefit of the community the unfinished condominiums would devalue the community as a whole. The board’s strategy is to reconstruct the condominiums so that a struggling owner can sell the condominium to an owner that can support the financial obligations of condominium ownership.
2. When will liens be assessed on owners who haven't paid their monthly dues? Describe the process in detail.
All Associations have had a phased delinquent account policy since September 2007 that imposes liens on delinquent accounts. Numerous owners have received the lien notices. Following is a brief summary of the policy, please refer to PMG website for a complete copy of the delinquent policy.
Certified letter stating 30 days to settle account
Credit bureau reporting
Liens placed on delinquent accounts
Attorney involvement with Association option to foreclose on property
3. Where are the entire monthly dues collected going and why are there no reserves?
As a regular practice the Association budgets have been available on the PMG website. These detail the various financial commitments that are required to maintain the community. The associations fund the reserves in accordance to a reserve study that determines future replacements costs. To date the Associations have funded the reserves in accordance to replacement schedules defined in the reserve study.
4. What is the deductible on our insurance policies for the Villa's?
The deductibles are based on the square footage of each condominium. These will be provided at the November 1, 2008 meeting.
5. Homeowners want a copy of the current Master Insurance Policy available on the website.
The insurance policies will be posted on the website and available for printing.
Association Special Assessment Topics
6. What is the amount of the association deductible and how many condos will share in it? I am pretty sure we can get a FEMA loan to cover it. The association should be applying to FEMA to cover the deductable NOW- as we KNOW we will owe at least this amount. Does anyone know if this is happening?
The deductibles for the condominium associations are based on the square footage of each condominium. The amount and the backup showing how the board arrived at this amount will be provided at the November 1, 2008 meeting.
The POA deductible is divided evenly by all 557 owners. The amount and the backup showing how the board arrived at this amount will be provided at the November 1, 2008 meeting.
The Board for all three associations is in the process of reviewing loan options for the associations thru the Small Business Administration.
7. Does anyone know if Villa homeowners would share equally in special assessments for ALL PW Villas, or would the homeowners of each building be responsible for their portion of a special assessment for their particular building? What is the exact equation for determining the special assessment?
Special assessments will be specific to the unit and the building. The amount and the backup showing how the board arrived at this amount will be provided at the November 1, 2008 meeting.
8. Is the Pointe West Property Homeowners Association contemplating making any special assessments, and if so, why are they necessary and how much will they be?
Yes, the special assessment would cover the deductible and the replacement of any common elements that are not covered by the insurance policy. The amount and the backup showing how the board arrived at this amount will be provided at the November 1, 2008 meeting.
Status
9. Can we have an online daily status updates on all phases of the project, including damage assessment and time-line by building. This can easily be done on a spreadsheet?
The Board will provide updates on the blog on the status of items as they change. The damage assessment reports and schedules are available in hard copy at the Beach Club Front Desk for owners to review and electronic copies will be posted to the associations website as they become available in PDF format.
10. Please advise what the process is for obtaining a copy of the report on my unit.
The damage assessment reports are available in hard copy at the Beach Club Front Desk for owners to review and electronic copies will be posted to the associations website as they become available in PDF.
Reconstruction
11. Electricity and water should be a TOP priority for all buildings, so that minimally damaged units can be utilized sooner.
The association recognizes the importance of repairing these systems and is in the process of making the necessary repairs. However, the buildings will not be ready for occupancy until all fire and life safety systems have been repaired. Tear out and sanitizing operations are underway to mitigate further damage.
12. Explain the process of turning power and water on. What is required by Centerpoint, the city, etc. How is PMG coordinating with hospitality to do this correctly and in a timely manner?
The City and CenterPointe have established a safe protocol that the Condominium Associations are following to provide electrical services. Water services will be restored to condominiums as part of the overall reconstruction of the buildings.
13. What options are there to make repairs faster?
All owners could pay assessments based on early construction estimates instead of negotiating agreements with insurance companies. Contractors will assess additional fees to their original bid/scope if the association asks for overtime construction hours. Typically, these costs will not be covered by insurance and it would be the responsibility of the association and the owners to pay the additional cost.
14. Will the work on the electrical system fix the existing system or will there be revisions to prevent this from happening in the next hurricane?
The electrical system was installed per current building codes and City of Galveston requirements. The electrical system received water intrusion due to hurricane flooding and is being repaired to ensure that the water intrusion damage is taken care of with this insurance claim instead of failure months from now that would not be covered by insurance.
15. The repair time line should begin with work to mitigate further damage, such as roof repair, sheetrock removal and mold remediation(if required). This should occur in ALL units first, with replacement sheetrock, carpet, paint to follow only after mitigation steps are completed in ALL units first.
The associations are working on envelope repairs (i.e. roofing, patios, etc.) and water intrusion/model remediation at the same time to all units. Once, these items have been repaired or completed the association will begin the interior repairs.
16. Reminder…Tile and wood flooring cannot replace carpet on the second and third floors per bylaws. Foot thuds are already a problem.
The interior finishes of units will be repaired to their state at time of sale from the developer.
17. What are the plans for rebuilding the dunes? Any plans for adding sand to the beach?
The West Galveston Island Property Owners Association, which Pointe West is a member, is working on a proposal to be submitted to the FEMA and the GLO for an extension of the seawall that continues to the western tip of the island. The structure would be a rock revetment sand dune. The top of the structure would serve as a bike and walking path. The initial write up and drawing will be posted to the association’s website.
18. When will the repair or replacement of the walkovers begin and when will the repairs/replacement be completed?
If POA assessments are received in a timely manner the repairs will begin in December and be completed by May.
19. When will the beach cleaning begin and when will it be finished?
Due to the nature of the debris that has washed up on the beach the City of Galveston and the GLO will be responsible for the removal of the material. A timeline for this has not been determined at this time since the scope is still under City and State bid stage of the process.
Mold
20. Explain what a mold remediation certificate is exactly and when or if it is required. If required, explain what constitutes mold remediation in terms of obtaining the certificate.
A mold remediation certificate verifies that your unit is free and clear of mold. This certificate is required of all reconstruction after such a storm event.
21. Does the villa association insurance pay for mold remediation? It looks as if TWIA excludes it under any circumstances. If that is the case, who will pay for it to be removed? The homeowner or a special assessment (all homeowners)?
The association’s insurance policy has a mold exclusion. However, the association is taking the stance with the insurance company that any growth resulting from water intrusion due to the storm should be covered by the insurance company because the wet building material would need to be replaced anyways due to water damage.
Misc.
22. We want a principle owner of Terra Mesa or McFarlan at the Nov. 1 meeting.
The November 1 meeting is for the condo association with owners being the majority members, thus Terramesa and McFarlan principles will not be in attendance.
23. How do we get more owners on the Boards? When do the board members come up for reelection?
More owners will be placed on the board as we approach the developer turn over period. Currently, the developer turnover period for both Condo Associations is 2010. Therefore, another homeowner will most likely be appointed to the board in late 2009 with full turnover to the homeowners mid to late 2010.
Board members during the developer control period are appointed not elected. Once turnover to the homeowners occur, board members serve a two year term and must be re-elected to continue forward.
24. I thought the board members are appointed by TM and not elected but because PW is not built out yet. Can anyone clarify?
See question 23.
25. What is the status of elevator repairs and insurance coverage covering repair costs? We understand that the elevators were all scheduled to be refurbished under warranty before IKE. They would be covered under the flood insurance and that there should be no expense to the HWs.
ThyssenKrupp had material offsite that was ready for installation before the storm. They are currently determining if additional material will be needed as a result of the storm. The complete restoration cost associated with all elevators is part of the flood and wind insurance claim. The only expense to owners would be their share of the deductible.
26. Give us an update on the mosquito control and the test that was discussed at March meeting?
The mosquito control system test performed well and the Board approved the install of the system throughout the community. The system was installed and operating prior to the storm. The control boxes incurred damage during the storm and are inoperable at this time.
27. Security procedures - never see anyone patrolling at night around the cottages or larger home sites? When is security on duty? Do they drive to all buildings nightly?
Prior to the storm the POA employed one onsite security officer from the hours of 6PM to 6AM. The officer made routine patrols throughout the entire neighborhood and walked the floors of each condo building. Board members elected to install small chips throughout the property that the officer must wave a security wand over during his routes. The chips recorded the date and time and frequency that the officer patrolled the area allowing the board to ensure that all areas are being adequately patrolled.
After the storm the board has approved an additional onsite officer and the installed security fencing and additional lighting around the condominium buildings.
28. Would TM be willing to hire a lobbyist to be an advocate for casinos on Galveston Island. This would greatly help rebuild the island and bring value to all home owners and resorts?
The association is not aware of Terramesa position as it relates to this matter.
29. Buildings with garbage chutes, still need garbage cans placed by the elevators. This will help our buildings free from unsightly garbage and bugs.
The association will consider this matter during its annual budget review process.
30. I would like to see a new / better company replace PMG. How can PW owners participate in this decision.
All decisions regarding a management company will be made by the board but suggestions from owners are always welcome.
31. We are formally requesting that PW/TM must put a written and documented Hurricane plan in place prior to the 2009 Hurricane season. We want this available to all HWs before the 2009 Hurricane season. It should include specific details and steps that will be completed at various time frames leading up to landfall (e.g. 96hrs-72hrs-48hrs-24hrs). Should include things like putting elevators on 3rd floor level, bringing PW rental units patio furniture inside, etc.
The association will establish a sub-committee consisting of owners that will be tasked with revising the hurricane preparedness guide.
32. In my opinion, TM management should pay part of the deductible due to incompetence (for elevators and any missing patio furniture in the PW program, etc.).
Terramesa will not be paying a portion of the deductible. It is responsibility of the associations and the owners to secure their personal property and their common interest/property.
33. Quarterly board meeting minutes need to be updated on the website.
Meeting minutes are posted on the website and available through Principal Management Group.
34. Was the quarterly June board meeting conducted? Where are the minutes?
The meeting was held in July. Meeting minutes are posted on the website and available through Principal Management Group.
35. Why are the flood policies deductibles for 4141, 4131, 4121, and 4111 $1000 each and all other buildings $5000? That being the case, do these buildings pay a higher quarterly assessment to cover these lower deductibles?
The flood deductible for each building is $5000.00.
Cottage questions
36. Serious water bill issues from last summer when the landscaping company changed our sprinklers without permission – June-July bill of $532; July-August bill of $570. My bill averaged $100 for 30 months. PMG and TM refused to take responsibility.
Cottage owners are responsible for their own water usage. The cottage owners pay a service assessment to have their lawns maintained and a monthly irrigation system check. If an owner would like the landscaping company to forego the maintenance on their irrigation system they can do so by contacting Eileen Penn with PMG.
37. Landscaping services have gone down in quality over the past year with our costs remaining the same. Parking large mowers under my home cracked the concrete, they are now parking under other homes after I complained.
Landscapers should not be parking equipment under owners’ home. We will discuss this with the landscaping company and inform them that this should not occur under any circumstances.
38. Breakdown of our fees by cottages - homes - lots - villas (insurance costs for villa structures should be separated from insurance on common areas/beach club. Cottages individually pay about $1,000/month for wind/flood/homeowners)
The amount that owners will have to pay for hurricane repairs and insurance deductibles will be broken down on an individual and association basis. Villa insurance premiums are paid by the Condominium Associations.
39. What is the plan for the reclaimed sand? Can it go towards building the Dunes up higher in front of the cottages? This partly addressed in Q #17 but my question is specifically for cottages.
The minimal amount of sand in the cottage road area has been retuned to the dunes in front of the cottages.
40. Does TM plan to file paper work with the city to rebuild the cottage dunes? When can we expect this to happen and can a timeline be provided to the owners.
See Question 17.
41. When will grading issues be addressed for the beachfront cottages. Due to washed up sand, water now drains into some homes as opposed to away from the home. This will cause stagnant water and further mosquito infestation.
The POA will review condition and obtain proposal for inclusion in Hurricane cleanup assessment to homeowners.
42. Who is the final authority (decision making) figure for landscaping decisions regarding restoration?
All decisions regarding community maintenance, restoration and operation are made by the various board of directors to each association.
43. Can owners get up to 2 decals (or placards that cannot be replicated)for their automobile. I was told by PMG that this is being considered – what is the status?
PMG will obtain proposal for such stickers and present to POA for discussion and potential approval.
44. Will TM consider investing in signs such and ‘Area patrolled by security’ for the entrances or ‘towing enforced: do not block driveways’ for the cottages and homes
PMG will obtain proposals and provide to the various board of directors to determine if such items can be added into next year’s budget.
