Gutters

The gutters and downspouts on the buildings have been cleaned [some of the horizontal parts had plant life growing in them (look closely at photo), and some of the verticle parts were so clogged they were completely plugged and had to be partially disassembled in order for them to work again].

Northern exposure revisited

In April, our new management company sent a letter on our behalf to our neighbors to the north, asking them to repair their fence which borders our two properties (see blog archive for May). They have now done so.

Homeowners dues increase 2005

This is an excerpt from a letter that was sent to Kenthill Townhomes homeowners on December 29, 2005 (from our former property manager).

"It has been brought to my attention that there are some questions as to how the Board of Directors came to the decision of raising the homeowner’s dues in 2005 by 10%. Enclosed please find copies of the minutes dated August 2004 through November 2004. If you read these minutes carefully you will see the Board’s discussion of projects, maintenance items, shared expenses and utility costs increases.

It was necessary to raise the dues in order to keep up with the current roofing schedule, utility costs, and maintenance items for 2005, including special projects. The board also wants to continue to build a healthy reserve for the future.

I hope this clears up any questions you might have had. Thank you for your understanding and cooperation."

Homeowners dues increase 2004

This is an excerpt from a letter that was sent to Kenthill Townhomes homeowners on December 10, 2003:

Enclosed please find a copy of the approved 2004 budget. There will be an increase in the monthly dues of approximately 10%. This increase is based on the following items: Increased insurance and utility costs, two new roofs each year, barking projects and other maintenance and upgrade items to the property.

Coupons are being processed and will be mailed as soon as they are complete and will reflect the increase in the monthly dues amount that will be in effect January 1, 2004.

Homeowners dues increase 2003

This is an excerpt from a letter that was sent to Kenthill Townhomes homeowners on December 5, 2002:

The Board has recently completed the yearly review of our financial position and proposes 10% increase for the year 2003. The board is retracting the original 15% increase as previously announced. We apologize for any inconvenience caused. The increase is based on utility and maintenance increases and to assist in rebuilding our reserve funds.

Our insurance costs alone went up 35%. We are also hoping to replace two roofs a year over the next seven years. By slowly increasing our dues, we will not have to continually have special assessments for projects.

The dues increase will be effective January 1, 2003.

Homeowners dues increase 2002

This is an excerpt from a letter that was sent to Kenthill Townhomes homeowners on November 28, 2001:

"Enclosed you will find a copy of the approved 2002 Budget for Kenthill Townhomes. The Board has spent the last several months carefully reviewing our financial position. We know that utilities costs will increase this year: electricity will increase 15% and other utility increases are unknown at this time. We have a significant amount of delinquent units which affects the operating cash flow. Collection and legal action has been taken against these owners. We have also included in our 2002 budget the cost to complete the painting project and any unforeseen dry rot repairs per the accepted proposal.

"The 2002 Budget includes an approximate 5% increase, effective January 1, 2002. The coupon books should be mailed in time for your January 2002 payment.

Notice

The following is an excerpt from a posting on another website:

"The Special Meeting was held in the Cabana this evening from 7:00PM to 8:00PM. Introductions were made while the property manager counted the proxies and the homeowners present. The quorum was 25%, thus meeting the requirement set forth in our Declarations. The House Rules were passed by 37.2002%. Homeowners and Board members continued to discuss where we need to go from here. Homeowners will continue to send in their input concerning future revisions to the House Rules. We will need to revise parts of our Declarations in order for any changes we want to be enforceable (such as Building reps, towing authority, etc.). The attorney for the association will need to be consulted for any revisions we make in the end, to make sure they are legal. It was a good meeting, as everyone who was present had an opportunity to talk and say what they thought. Subjects discussed also included the things we share with Easthill. The meeting ended at 800PM. The Board remained for another hour to continue to work on and decide things about Kenthill Townhomes. We have many things going on right now and many choices to make. Thank you all for coming.

Correction

The following is an excerpt from the handout that was placed at all 82 condominiums:

"CORRECTION! THE MEETING WILL TAKE PLACE ON MONDAY, JULY 25, 2005 FROM
7:00PM TO 8:00PM!! AT KENTHILL TOWNHOMES IN THE CABANA.

"ALSO, I WOULD LIKE TO TAKE THIS OPPORTUNITY TO MENTION THAT WE JUST RECEIVED THE LATEST FINANCIAL PAPERWORK FROM SUHRCO. THINGS ARE NOT LOOKING PROMISING WITH REGARDS TO OUR INCOME FOR THE ASSOCIATION. WE HAVE NINETEEN “DELINQUENCIES OVER 30 DAYS.”

"THINGS WILL NEED TO IMPROVE OR WE WILL NOT BE ABLE TO MAKE OUR COMMITMENT TO HAVE TWO ROOFS INSTALLED EVERY YEAR (A SIGNED CONTRACT), AS WELL AS MEET OUR OTHER OBLIGATIONS. [UNLESS WE, THE REMAINING HOMEOWNERS, HAVE TO STEP UP AND MAKE UP THE DIFFERENCE]."

Attorney letter

These are some excerpts from the letter written by the attorney for the Kenthill Townhomes Homeowners Association which was sent to all the homeowners on March 22, 2005.

Kenthill Townhomes Condominium Association
Kent, Washington
Re: Response to questions of concern to owners
Dear Ladies and Gentlemen:
This is in response to your request that we answer and respond in writing to legal issues that have been raised as concerns by certain residents. Your questions and our responses follow below.

First Item: Did the special assessment for painting the exterior of the buildings need to be put to a vote of the owners for prior approval?

The answer to this question would be no. This is based on an interpretation of Declaration Section 16.

Second item: Did the decision to repair the damage caused by the fire need to be put to a vote of the owners for prior approval?

The answer to this question would be no for the same reasons as discussed above.

Third item: Does the Board have the authority to change the House Rules?

The answer to this question is no. Declaration Section 10.04 gives the “Association” the power to create, change and amend rules and regulations. Section 10.01 defines the Association to be “[a]ll apartment owners.”

Fourth item: Does the Board have the authority to raise dues without owner approval?

The answer to this question would be yes. Kenthill is not a “New Act” condominium and is therefore not subject to the budget approval requirements of the new condominium Act that went into effect for all condominiums created on or after July 1, 1990.

Fifth item: Can the Board impose additional late charges above the $10 stated in Declaration Section 11.02?

The answer to this question would be no. The Declaration is the fundamental governing document of the Association. The Board is not free to modify or deviate from its requirements.

Thank you for giving us the opportunity to have been of service.

Very truly yours,

Sundberg Law Office

Painting Project (two)

This was the cost to paint the 15 buildings at Kenthill Townhomes:

Fifteen Buildings
Power wash, prime, and paint exterior using a minimum of 2 coats acrylic paint, including painting individual doors (outside only): $77,750.00. Washington State Sales Tax (8.6%): $6,686.00. Total: $84,436.00.

The painting project began in early 2002.

Painting Project (one)

All Clean of America was a company used by Kenthill Townhomes in the late 1990’s and in the early 2000’s. All Clean performed various tasks for Kenthill which included lawn care, tree & shrub care, leaf cleanup, litter control, and general maintenance.

In October 2000, a painting project was begun at Kenthill Townhomes. However, much preparation was needed to be done to the buildings before painting could begin. Kenthill Townhomes was constructed in the 1970’s. Many parts of the buildings had deteriorated and were in need of repair or replacement. This work varied from building to building, but included repairs to the trim, replacing of siding due to dryrot, and repairs to the privacy fencing near the patios areas. The costs of these repairs totaled $5842.00.

This preparation work for the painting project began in 2001.

Special Assessment 2002

The following is an excerpt from a letter dated November 28, 2001 from the Kenthill Townhomes Board of Directors to Kenthill Townhomes Homeowners:

“The Board of Directors, in preparing the budget for fiscal 2002, determined that a $65,000 special assessment is warranted, to properly fund the exterior painting of the buildings, maintenance needed to the buildings prior to the painting, and the ongoing drainage projects. The special assessment will be a 12 month assessment beginning January 1, 2002 and ending December 31, 2002.”

Special Assessment 2001

Every year the financial statements of the Kenthill Townhomes Homeowners Association are audited by a Certified Public Accountant. This audit is then addressed and presented to the Board of Directors and Members and to the Kenthill Townhomes Condominium Association. Throughout the years, different CPA’s have been used for this task.

The March 25, 2002 Independent Auditors Report, page 8, item 6 contains the following paragraph:

“Special Assessments”
“The Association has approved a special assessment in the amount of $65,000 to be assessed over 12 months starting January, 2001. The funds are to be used for painting and repairs to the buildings.”

Special Assessment 1997

A large plat of land exists between Buildings L and K to the north and Buildings I and J to the south, on the property shared by Easthill Apartments and Kenthill Townhomes along 109th Ave SE. During 1993 or 1994, a paving project was begun by Hume Investment, Inc. [the owner of Easthill Apts.] to provide a paved entrance, a paved parking lot, and a paved driveway in this area shared by both owners of this land. The cost submitted to Kenthill Townhomes as their portion for payment on the project was over $30,000. The Kenthill Townhomes Homeowners Association did not have that amount in their reserves. The Association began making payments, and was billed on the outstanding balance at a rate of 1%. In 1997, the association enacted a special assessment on all its homeowners, in order to pay off the outstanding amount.

The following is an excerpt from the March 10, 1998 Kenthill Townhomes Annual Homeowners Meeting:

“Achievements During 1997”
(Item 1) ”Debt to Easthill – Thanks to all of you for paying the Special Assessment, the debt has been retired. What is owing now are only current bills for 1998.”

Shared things

This is an edited excerpt form another website:

"These are some things Kenthill Townhomes shares with Easthill Townhomes:

"The pool. [We share in the cleaning and maintenance (if it needs a new pump, or something, we would pay our share of that).]. The pool area. [This is the area surrounding the swimming pool. We share in the cleaning, etc.]. The clubhouse cabana. [We share in the cleaning, etc. (If they paint it, or something, we share in that).]. The concrete patio area. [This is the area just west of the cabana, outside the entry door. We share in the cleaning, etc. of that]. The privacy fencing. [This is the fence which surrounds the pool, etc. We share in the maintenance (if it ever needs some paint, etc.]. The tennis courts. [We share it with them. It gets swept every year. It gets powerwashed when it needs it]. The parking/driveways. [We share these things in the sense that we share the costs of when these areas get swept from time to time].

Investigating cost savings [Part three]

The discussions with the technician at the City of Kent revealed the city’s method that would be a slight alternative, but would not result in much savings. A contractor would have to come out and excavate the ground to get to the water pipes at each building. They would then install what is known as a “housing”. Then the City of Kent would come along and drop in a meter, each one of which would cost $500. At this point, the City of Kent would charge about $20,000 for each meter. When asked what this charge was for, the reply given was it was just a way for the city to make money; it is part of their fee schedule for this type of work, to according to Kent city code under the direction of the Department of Public Works and Community Development.

After much analysis and after many months of research, the Board has been advised that in the long run, this will never be a cost-effective solution to our problem. It was the consensus of the three contractors who met with the Board member that we are getting a very good deal right now with respect to our water costs, and they all strongly advised us not to proceed with the idea of going to sub-metering for our buildings. To put it briefly, they said that we would never recoup the initial outlay of our investment.

In addition to this, it must be kept in mind that even if we were to proceed, from that point forward into the future, we would be at the mercy of what ever sub-metering company we contracted with. No matter what company we negotiated with to read our meters for us, do the calculations regarding pro rating of each bill for each individual condominium unit, over time they could charge us whatever it was they wanted to. There would be no turning back.

Investigating cost savings [Part two]

In the past, condominium project projects were built with one master meter that would serve as many residents. The water and sewer were included as common area costs to the Association and then included in the monthly Association assessments.10 to 20 years ago when water and sewer costs were a fraction of what they are today, this concept worked well. Sub-Metering is one option for a way to solve this major expense and problem. Sub-Metering would place and meter at each one of our 15 buildings to measure water usage. At that point, the Sub-Metering company would handle the billing (or sub-contact that part of the project to another company). They would prorate the water usage across the five or six homeowners in that one particular building, measuring each individual unit as to the reasonable cost of the use of the water depending on the amount water used. The Sub-Metering company with then read the meters and bill the condominium and invoice our property management company. The invoice would show beginning and ending ratings and the consumption. A monthly service fee is added to the invoice.

In May of 2005, a Board member met with three contractors over several weeks for an hour each to discuss the possibility of this idea. This would be an enormous task and at and an expensive undertaking.

As mentioned in a previous post on this website, we have several different water valves which have been installed at various buildings over the last 30 years. The cost of excavating the ground to get to the water pipe and install new standard and “to code” water valves alone would cost over $4,000 for each building. This would be before the sub-meters were installed.