Pier 3 Condominium Association

Budget Meeting 11/29/2016

Attendees

Al Borden-President, Edward Collins - Vice President, Jo Ann Benner - Treasurer, Trevor Cloak– Secretary.

First Residential, Marge Agnew –Community Manager, Robert Convery- Maintenance Supervisor

Al Borden calls meeting to order at 7:06PM.

Board meeting to discuss budget.

Update on projects in progress - presented by Al Borden (4 projects)

  1. Atrium painting - South side EIFS caulking and finish coating in progress. South side is almost complete -should be finished by December this year. North side coating will start late spring 2017. Should be done by fall 2017.
  1. Exterior Caulking-Southside river wall will becompleted in December 2016. North side river wall should startfall 2017 or spring 2018.
  1. Atrium staircases. We had a delay because contractor had a problem getting the permit to proceed. They have a permit and will be fabricating the stairs soon. When old stairs are removed, the wall behindstaircase where they were anchored will be repaired and new stairs installed. This will start with one set of stairs on the North side and one set on the South side until all six staircases are replaced. Project should be complete by the summer of 2017.
  1. Third floor hallways renovations. New floor, new paint and reworked lighting. Fixtures will be the same but new LED lamps will replace the existing lamps. Ceiling tiles will be replaced/refurbished as needed. Flooring: a rubbertile floor was chosen for sanitary reasons and longer life expectancy. The flooring should generate substantial savings on maintenance and carpet replacement. Asample board with paint scheme, tile color selection and cove base are displayed. Sample board will be on display in Management office for viewing.

2017 Operating Budget:

We have changed working capital contributions that resulted in increased revenue for us. We also intend to go to a higher late charge (now $35 which will go up to $70). This is not expected to be a big income generator but hopefully will encourage owners to pay on time to avoid late fees.

There will be an hourly rate increase for projects done by staff for residents(rates to be published on pier website).

Because we have addressed many repairs, we have fewer building leaks. This has resulted in building maintenance as a budget item to be reduced 12%. Electrical rates have also dropped. Insurance may go up. Part of the reason is because there have been so many leaks in the past, we have a poor risk history, so it may be hard to get insurance at the current rate. So, short term, we may have an increase in insurance costs.

Expense side:

Payroll benefits have gone up. Future expenses may increase because of projects, such as with the300 level balconies underside. As you may be aware, we did a study on the roofs of the 200 level balconies. We found that concrete was failing and in some instances had broken off. Part of the cause isthe decks above (300 level)are deteriorating allowing moisture to come through. We have a project to address the underside but because the balconies on the third floor are part of the problem, they must be repaired. TheAssociationintends to go ahead and inspect and repair as needed. Because the 300 level balconies are a limited common area, they are the responsibility of the owners who will be back-charged for the repairs. Estimated prices are $3000 to $5000. We do not have a firm quote at this time. This is work that must be done to avoid a catastrophic failure.During warmer weather, the contractor and our engineering staff will inspect the balconies and develop a plan to complete the repairs.

Also the board is not satisfied with the repair work on the Atrium deck. We went back to the contractor and told them we not satisfied. The contractor is going to come back and improve the condition.

Jo Ann Benner presented the 2017 budget and explained the long range plan below.

The Long Range Plan is adjusted as new projects are introduced or the cost of a major project changes. This assists us in prioritizing major projects according to our financial capabilities. Our annual Capital contribution is $290k. The Special Assessment contribution for 2016 is $108,750.

Holiday party is December 8th. Please sign up downstairs at the front desk .We hope to see everyone there.

Meeting adjourned 7:34pm