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Responses to some concerns recently expressed

Fellow Owners,

Some of you have been copied on questions/incorrect statements from some owners, concerning projects associated with the assessment.  Below are clarifications/facts:

Question #1:  The Board did not include the Storm Drainage system rehabilitation and modify Pool and Parking Lights in the Phase 1 projects (however those are indicated as priority by the Engineers on the document you received.  It was commented that  “Board never voted on those projects. The Board voted for 9 projects, therefore you must do those project first, if you will have funds left, then the board, who will be at that time must voted for the additional projects.  Please, provide legal opinion from condo attorney ,allowing the Board to use assessment fund for the project that was not ON THE LIST OF ASSESSMENT PROJECTS, and NEVER VOTED  for 5.6M, therefore commingle , and mismanage funds.”

Response from Attorney:

“The special assessment is passed for the purpose of repaying the bank loan.   The bank loan was obtained for the purpose of performing common area repairs, maintenance and replacement.   The special assessment is not legally  tied to a specific project EXCEPT that if the loan is paid early and there are assessment monies left over, said monies are to be used for any additional common area repairs, etc. as determined by the Board.    

This does not mean that the project scope pertaining to the common elements cannot be altered and it does not mean that a change would require an owner vote.   Provided the bank loan is used for its overall intended purpose, the Board is free to determine, in consultation with the professionals hired, which common areas are in need of the most attention and to alter that list if deemed appropriate.”

 

Question #2:  Risers:  At the Board meeting it was stated that at least  30% of the risers must change. “The Board has the right to enter in those apartment, because it’s an emergency, and it’s a Health condition.  As per Alex ,70% risers are not leaking , and not an emergency, and not a Health condition, the Board can’t enter or start breaking closets, or bathroom walls, without the owners written consent. You brought the attorney, who gave a nice speech, telling people that the Board has the fiduciary responsibility to keep the building safe, agree, and that the Board can do what they want in the building, agree. Only one word he never mention : COMMON AREAS.  Common areas are : hallways, pool deck, mechanical, pool, roof etc.

Start changing risers, which are not leaking, based on engineer recommendation, will not open the doors in our apartments.  THE BOARD CAN ONLY ENTER INTO AN APARTMENT WITHOUT OWNER CONSENT IF:  A. EMERGENCY.  B SAFETY. C. HEALTH Which is none of the above.  Good luck with that project.”

Response:

Risers are an emergency, safety issue and health issue.  We must not forget that the chilled water risers are 18 years past their life expectancy according to our Engineers  and 30% are already failing. Not tending to them with this known and official fact would put this Board in violation of Florida Statute 718 law and naturally put our building at risk to systemic failure as stated by our Engineer.

From Florida Statute 718.111.5

“5)RIGHT OF ACCESS TO UNITS.—

(a)The association has the irrevocable right of access to each unit during reasonable hours, when necessary for the maintenance, repair, or replacement of any common elements or of any portion of a unit to be maintained by the association pursuant to the declaration or as necessary to prevent damage to the common elements or to a unit.”

Therefore, according to this law, the association has the right to access ALL it’s common elements in order to repair or replace any elements in order to prevent damage to other units.

Thank you,

Marla Hopkins

Weekly Update 4/12

Dear Fellow Owners,

Further to my recent Open Letter, this communication is to explain the many projects which this building must undertake and refers to the list sent to you last week.  I would like to thank all the Board members for their input, more specifically Alex Sorella, Leo Moldavsky and Len Zaretsky.  For many years, the “internal organs” of our building have been neglected.  Each and every project on our list must be done, some of them in parallel.  We have carefully prioritized the projects, and with the help of professional engineers and a Project management Team who will  oversee construction to ensure that the work is done properly and cost efficiently.  Please take the time to carefully read the information below.

 HALLWAY/LOBBY:

  • The ceiling needs to be changed because there are  many pipes and valves, all inoperable, in the  ceiling that service the chilled water risers which are used for connection when servicing the AC in the condos. The change-out of all these old faulty valves is very costly and will create a lot of damage to the lobby and must be done as risky methods of freezing the chilled water lines is being used when servicing AC’s and has caused extensive damage to the building already. All piping in the ceiling needs to be re-insulated and several drainage pipes need to be replaced. There is also dead, unused equipment in the ceiling which must be removed.
  • The “outside canopy” is in terrible shape:  There are several lights that don’t work; the plexiglas over the canopy is either broken or permanently discolored. We intend to keep the structure of the canopy but it needs to be reinforced.  As well, the black fences as you drive up are in bad shape and some are broken.  Also, the black plexiglas that was put on top of the windows and doors at the entrance cannot be cleaned, they are all scratched and  unappealing.
  •  Hallways:  As you have no doubt seen, the ceilings in the hallways are really bad and moldy.  The ceiling area, as you exit the elevators on each floor, must be rebuilt as there are no proper air supply ducts.  As well, on those floors that have popcorn type ceilings, they also require mold remediation/abatement.   The carpets absolutely need to be changed as the mold spores are buried in them from when they removed the wallpaper. It is our hope to also modernize the light fixtures in the hallways with economical LED lighting.  Proposed designs will be shared with all Owners as, for any material change such as change of colours of the paint, carpets, removing the rotted  wood in the lobby,  etc.,  requires a majority vote  by the Owners.

 Hallway/Sheetrock Replacement:

Once all the climate control equipment has been repaired/installed/replaced, we  will finally get to replace the mold covered sheetrock. Corridors will be isolated to protect all of us from breathing flying mold spores.  This work cannot be done until we tend to the Risers as some walls will be damaged.

 Generator

 The generator is very old, cannot meet power requirements to support  the emergency life safety systems in case of power failure. The generator is undersized, the fuel is leaking from the day and main tanks (a major violation from fire life safety and environmental standpoint) requires constant repairs. Transfer switch will need replacement also.

 Upper Mechanical Room

 Major overhaul of mechanical equipment having to do with the two main air handlers supplying fresh air into the hallways. Main reason is to be able to finally dehumidify the air being supplied into the hallways which is a major cause of mold in the building. In order to achieve this we must complete the new steam boiler, installed in lower mechanical room by sending steam to upper mechanical room, convert the heat energy in the new heat exchanger  to a hot water system which will supply two brand new hot water coils installed in the existing two air handlers. With that we will need new chilled water valves, and begin a building automation system/control systems, piping, insulation, electrical work, ductwork, fan and inertia base replacements, etc.

 Lower Mechanical Room

Replacement of small chiller which has been inoperable for at least 3 years, redundancy for cooling, requirement for operation during lower temperature season, serviceability on either chiller, stop forcing large chiller and premature wear during low temperature operation. With that will include new controls/continuation of new building automation system, new circulating pumps with redundancy pumps, new domestic water pumps, piping, insulation, electrical work, safety devices for refrigeration leak detection, revamp room ventilation, removal of unused appurtenances.

 Asbestos/Firewall

All work in the lower mechanical room will require the disruption of the asbestos soundproofing on the walls and ceiling thus requiring once and for all the removal. Firewall is a debatable item to be further discussed and evaluated by hired engineer and city officials. Wall would be required to segregate the open flame devices (boilers) from the refrigeration devices (chillers) if there is a refrigeration leak that comes in contact with an open flame, a deadly gas could possibly be created thus seriously endangering residents.  The wall is a mandatory requirement by ASHRAE Standard and a life safety issue.  It also is a BD citation for the wall.

 40 year Electrical recertification

This is a city/state requirement to inspect and overhaul all electrical systems within the building to guarantee safety and functionability. The generator will probably fall under this category. All switchgear, transfer switches, pull boxes, distribution panels, disconnect switches and possibly all electrical panels in the condo units will have to be inspected and/or replaced, including all electrical systems supplying mechanical equipment throughout the building.

 Storm drainage system

This is a long standing issue as the pipe that drains storm water out into the ocean is broken and blocked.  Since this was neglected we are not no longer allowed to drain storm water directly into the ocean and are now obliged to install 6-8 retention wells 180’-300’ deep.  The water that backs up into the garage  which not only releases a lot of moisture into the building, but also is slowly damaging our foundation.  There is a high cost associated with this repair.

 Front Fountain

The fountain is an integral part of Parker Dorado’s original design and it goes hand in hand with the canopy.  Currently it is an eye sore.  It is the first thing people see. Again, along with the canopy, it beautifies the building that we should be proud of.

 Pool and Parking Lighting

This needs to be addressed as we are being fined daily.  The Engineering firm we have hired, will be overseeing this item and dealing with the City to hopefully resolve the matter.  We have budgeted a large amount of money as we were advised that all of the lighting may have to be replaced. Our pool deck, leaking into garage also needs to be sealed. Lanai walls may have to be rebuilt – the only way to eliminate leakage  Obviously if we can find a less expensive solution we will go with that one.

 Passenger Elevators

The elevators themselves, as you may know,  keep breaking down AND people are getting stuck in them.  There was a petition from the 04 line that the elevators are very noisy and are seriously  disturbing residents.  We have sent our elevator maintenance company several times to try to resolve the issue.  Each time we are obliged to spend money, which is throwing good money after bad.  The elevators need to be changed.

 Risers

As previously communicated and as ordered by the magistrate, we will be doing the 04 line shortly with the promise to the Magistrate that the other lines will be done. We are obtaining bids for the other risers.   All dates will be communicated to owners.

 Pool Awnings

We want to be able to repair or replace the pool awnings.  Our attorney is in communication with Jones Awnings, company who installed them last year to hopefully come to a resolution. In the meantime, we have gone out for some bids should we have to replace completely.

As a reminder, we are continuing to analyze financing options.  We have spoken with the Bank 4 times since the March 14th meeting.  Included in the options is a long-term line of credit we will be considering.  We are awaiting their reply, by the end of this week hopefully.  The delay is due to the increase in the interest rate, which is the exact reason we had chosen that first payment option in the hopes of saving everyone interest charges.

We will continue to keep you informed.

Marla Hopkins,

President, Board of Directors

Special Assessment Meeting April 19, 2018

Unit Owners,

Please allow us the courtesy of reading through this email carefully.

During and shortly after the March 14th, 2018 meeting where we formally approved the $10,000,000 loan, the Board was made aware of discontent and uneasiness with the proposed financial structure of the assessment.  We, therefore, decided to go back to the Bank to request other options.  We have been waiting to explore all the options and that is the one and only reason we postponed the March 28th meeting.  We are now ready to proceed.  The Special Meeting will be held on Thursday, April 19th, 2018, 7pm.

I would like to reiterate that the initial payment option was to have a 3-month line of credit whereby the association was covering the interest charges for those 3 months and then convert to a term loan for the $10 million. This was felt to be the best option as it was the most financially sound in terms of minimizing interest costs to us.   There were no other reasons behind that decision, contrary to what some residents are trying to make you believe.

Further to us reaching out to the Bank several times, they contacted us on April 2nd at 5:49pm with a final payment option.  On April 3rd, at 4:00pm the Board had a conference call where we agreed to proceed with the following option:  an 18-month line of credit which would then be converted to a term loan after those 18 months.  This means that for the first 18 months, we would each be paying an amount for interest only.  The Accounting Department is working on the numbers that each “line” will be responsible to pay for the duration of those 18 months (this will be a fixed amount and lower than the Term Loan amount, which would include interest and capital).

Therefore, on April 3rd, at 4:55 p.m. we contacted the Bank to instruct them to prepare the documents for signature, based on the 18month line of credit (interest only) and a term loan for the remaining amount (some residents may be paying up front, so we are being told).  There were no commissions of any kind promised to any Board member nor would we EVER entertain such thoughts. Such suggestions from a few people are disrespectful and meaningless.

Banco Popular will be forwarding the final documents to us in the next few days.  Again, as soon as the Accounting Department has calculated what each “line” will be obligated to pay, we will obviously send that out to all owners as soon as we receive it, including other payment options.  In addition, the projects and their related costs will be discussed again during the April 19th meeting.  We will also have the Bank present to discuss individual arrangements with those Owners who may wish to avail themselves of such services.

I trust we can have a respectful meeting.

Thank you.

Marla Hopkins

President, Board of Directors

Parker Dorado