F.Y.I. The Newsletter of Edgewood Townehouse Association
PO Box 5424, Eugene, OR 97405


November 15, 2008

Important Dates:

Next Regular Board Meeting: Tues, Dec. 7, 7 PM

(Notices of any special board meetings are posted in the Clubhouse 3 days before date of meeting per Bylaws)

Hospitality Activities:

Monthly Potluck: Sun, Dec. 7, 5 pm
Saturday Morning Social: Dec. 13, 10:30 am
By-the-Brook Book Group: Wed, Dec. 10, 2 pm

Contents:

Board Message
Association News
Board Minutes: 11/11
Committee Reports: Grounds; Building
Manager's Report
[Proxy Form and Banking Activity omitted]

Editor: Gloria Gehrman

Informational Coffee: Sat, Nov. 22, 11 am

(This is a time to gather and ask your questions about the 2009 proposed budget and the assessment that would support it. If you cannot make it to this session, you may call any of the Board members to get your questions answered.)

Vote on Assessment: Mon, Dec.1, 7:30 pm

Board message:

Greetings, Neighbors, at this time of thanksgiving and hope,

Well, here goes - the final pitch for the new assessment.

We know it's a stretch for all of us at a time of uncertainty in the world of finance and our own pocketbooks. None of us took at $265 per month and cheer. In fact, it's more of a gasp.

BUT...

The Board has put together a 2009 budget that gets us on a path to consistent improvement of our commonly held property-to systematically deal with postponed maintenance. We have gotten expert analysis of what needs to be done, in the professional reserve study. We have adjusted the amount that the expert recommended we collect monthly from each homeowner to what we think is more affordable. (Their recommendation would have put us at about $325 per month for 2009.) We have taken into account that in 2008, each of us will pay $2,828 (including the $500 special assessment). That means the proposed $3,180 we have suggested is $352 more for 2009 - a 12% increase overall.

One question we're hearing is what is your" fall back position if this does not pass-your" meaning the Board. Let us emphasize that we have done our best to put together a responsible proposal for you to vote on, thinking about other alternatives and other amounts, using the entire reserve study as our guide - but not as a bible.

So what are our community's choices if this does not pass?

Do we keep to a 4% increase, totaling $202 per month - and that's it for 2009? That means continuing to postpone needed maintenance, letting the list get longer each year.

Do we assess that amount and then go for another special assessment in 2009 to make up the difference - $750? For many of us, large assessment amounts are more difficult to budget for.

Do we scale back the capital projects even more than we already we done from the reserve study's recommendations? If so, what more do we drop and for how long? Do we suspend or reduce the siding and painting and work on something else that we can get done in one year? Do we ignore all of the paving recommended for overlay, instead of just half of it? Do we not deal with the safety of the walkways or the code violations of our old and often rickety (safety) railings?

Do we continue to use our reserves so that we have nothing set aside for future projects - not something that would be financially prudent? The Board has been informed that our reserves and how we manage them is going to be something that lenders will be asking about, much more than in the past. Adequate reserves are one of the signs of a healthy homeowners' association.

Do we have a community bake sale and charge $50 per cookie to make up the difference? Or declare ourselves a bank and ask for some of that $700,000,000,000 of federal money?

Other ideas? Please look at the last FYI to review how the budget was developed. Remember, we are just dealing with 2009 at this point in time; we are not talking about what increases may be necessary in future budgets in future years. We are looking at this as a step away from what we have heard for many years - "We can't do that because there is not enough money."

Ultimately, though, it is all up to you.

There is still an opening on the Board so anyone who would like to help guide the operations and finances of the organization may still put their name forward. Contact our Nominations Chair, Clara Nistler.

Your Edgewood Townehouse Association Board

Association News

Enough information?

We have had a couple of requests for additional information that becomes part of Board documents but not part of this newsletter.

Our Manager does a weekly report for the Board which is emailed to Board members and posted in the Club House. A collection of those reports is currently on the coffee table in the comfy seating area. Those weekly reports are then summarized in the monthly report the Manager prepares for the Board meeting and included in the FYI. Is this adequate information for you? If not, please let your Editor know.

There is also a question about financial statements. What your Editor has been including is the list of checks written each month-the Banking Activity report - and the Profit & Loss Budget vs. Actual statement on a quarterly basis. (See documents below.) Both of these reports are prepared monthly by our bookkeeper and included in Board documents, along with a couple of other financial reports. Do you need to see more on a regular basis? Do you need to see different kinds of reports than you are getting?

(Note about electronic distribution: Your Editor has been scanning the last couple of newsletters and emailing them to a few absent homeowners. Since said Editor has an aging computer, this has not always proved successful, especially the last 23-page issue. Electronic delivery will invariably be in our future. However, only about half of our 89 homeowners use email at this time.)

Pah! on poo:
Some nasty stuff has been encountered in the process of leaf blowing this last week. A reminder that our pet rules require that "All pets outside the residences are to be on a leash. Pet owners are required to clean up after their pets." Please remind any new residents, visitors, or dog walkers of their responsibility when enjoying our walkways. Our crew has been working hard on leaf removal, and they don't need these unpleasant objects in their faces or under foot.

Grounds reminder:
Our CC&R's, Article IX, Use Restrictions, Section 8 states "All Common Areas are to be maintained by the Association and no changes in landscaping, removal or trimming of trees, lawns or shrubs will be permitted without written authorization by the Architectural Committee." This includes pruning of shrubbery or adding plants in the common areas in the front of our homes.

Although it is on our Grounds Committee list to prune many azaleas and rhodies, as stated last month they should not be pruned now because the buds have set for next spring. Please continue to fill out a Work Order for anything you see but expect it may be put on a list for seasonal completion.

ETA Veterans
Recently, a call went out for information about veterans living in our community. The following neighbors have shared their experiences. We know there are probably others, but we respect their privacy.

We want to thank all of those who have served our country at a variety of times in places all over the world. It's an honor to have you living here, and we salute you.

Russ Fryburg - enlisted in the US Army Infantry in December 1941 and was assigned to the Enlisted Reserve Corps. Called to duty in late 1942, Russ trained at Fort Lewis and was assigned to the US Air Corps in Atlantic City, NJ; Operations and Intelligence School in Denver, CO; and the Nebraska Air Corps base which fielded B17's, B24's, and B29's. Our Vice President was honorably discharged in 1946.

Jon A. Joseph - US Air Force, line pilot (1964-67), 12th troop carrier squadron, Frankfort, Germany, and Dreux, France.

Nick Musgrave - served for 25 years: Three in the US Army, and 22 i the US Air Force. Nick was stationed at several Forts and Bases in the CONUS, and overseas, I served in Hawaii (when it was a Territory), Japan (as part of the Occupying Forces), Taiwan (where I was working with the Taiwanese Air Force), Thailand (during the war in Southeast Asia),and in England (where I served as an Exchange Officer, on duty with the Royal Air Force). Our President retired in 1970.

Gene Nistler - was in the US Army during the Korean War, 1953-55, serving as an Infantry company clerk in Germany.

Pat Nugent - was a WAC at the very end of WWII, stationed in Georgia for basic training and for preparation of Secretarial-type work in the hospitals, then sent to Dibble Army Hospital in Menlo Park, CA. Pat was assigned as an aide to
the Adjutant General at the hospital which specialized in burns, mental disabilities, and other service-related issues.

Ralph Salisbury - a veteran of the Second World War. Ralph served in the Army Air Force for 29 months and was in training at several locations in the American West. He was still in training when the war ended.

Edward C. Schaaf - was in the US Army Air Force, 1946-1949. Ed served three years with two years spent in the Marshall Islands where he worked at the Communication Center.

Leo Siegel - was in the Air Force during World War II.

Jerry Wojcik - was drafted into the U.S. Army and served from August 1952 to August 1954 with the 45th Engineer Group in Wonju and Yong Dong Po, Korea. Jerry was discharged as a Sgt (T).

EDGEWOOD TOWNEHOUSE ASSOCIATION
Meeting of the Board of Directors
November 11, 2008

The meeting was called to order at 7:00 p.m. by President Nick Musgrave. Those present included Board Members Nick Musgrave, Russ Fryburg, Gloria Gehrman, Bev Behrman, Toni Horodysky, Michael Landes and Gwen Acker. Doug Cone was excused. Also in attendance were Bruce Trafton, Clara Nistler, Helen Liguori, Nancy Callaghan, Jon Joseph and Frank Bocci. It was moved by Russ Fryburg and seconded by Michael Landes that Jon Joseph be appointed to complete the term vacated by Jana Logan. The motion carried. Jon Joseph will begin his service on the Board in November 2008 and continue for the three year term beginning January 2009.

Resident Forum:
Helen Liguori spoke to the issue of the unsightly appearance of indoor/outdoor carpeting on the front porch of 70 Brae Burn. Clara Nistler spoke to the requested increase in Annual Assessment; requested that all who have e-mail be copied with the Monday Report of the Manager; and payment to TruGreen if they were not performing their job satisfactorily.

Minutes of the October 20, 2008 Board Meeting: Minutes were approved as previously published in the FYI upon motion of Jon Joseph and second by Russ Fryburg as there were no objections.

Treasurer's Report: The Treasurer was not in attendance. The Report had previously been distributed to Board members in written form. President Nick Musgrave reported that all who have not paid the Special Assessment in full were sent a notice on November 10, 2008. A copy of the Treasurer's Report is attached.

Managers Report: Frank Bocci presented an oral report. He reports that leaves are the focus of efforts at this time. He has spoken to the residents at ( ) Westbrook Way and it appears that progress has been made in the problems reported by a neighbor. He discussed the abandoned vehicle.

Bruce Trafton will follow up with the city regarding steps to tow it. There is a leak in the roof at 165 Westbrook Way. He will follow up on the past repair of the leak. A copy of the monthly report is attached.

Committee Reports:

Grounds Committee: Bruce Trafton reported that shrubs have been pruned by someone other than those designated to prune. He reminded residents that shrubbery in common area is owned by all homeowners jointly and should not be pruned by residents. A copy of an expanded report is attached.

Building Committee: Toni Horodysky presented a written report. See copy attached.

Unfinished Business:A committee consisting of Russ Fryburg, Jon Joseph and Gwen Acker will make an appointment to discuss with our attorney how we will proceed regarding the homeowner who is severely delinquent in payment of monies due, i.e. monthly payment on Annual Assessment and $500 Special Assessment, as well as attorney fees and court costs incurred in pursuing
payment.

New Business:A coffee will be held at 11:00 a.m. on Saturday, November 22, 2008, in the clubhouse for any who wish further information on the proposed increase in Annual Assessment. The Telephone Committee will be requested to call and remind Residents of this meeting.The meeting was adjourned at 8:40 p.m.

Grounds Committee Report, November 2008
Bruce Trafton, Chair

Frank and his crew and Toni (Building Committee Chair) continue to work closely on an everyday basis.

November 1st and 2nd found us clearing dead limbs cutting out dead trees while leaving right of way for creek. We left some down and rotten wood for critters. The area we worked is from the Club House, down past the new bridge to the wall on Willamette. Then came the leaves. So it has been Leaves! Leaves! Leaves!

On November 12th took out a rotten tree on Brae Burn side of creek.

The Grounds Committee wants to thank the entire ETA community for your patience while we go
through this money-saving transition.

The ETA landscaping crew - Frank, Chuck, Trevor, and Andrea - have been working with leaf blowers, rakes, and shovels to corral our leaf inundation. It is seemingly endless, very hard work, and they've done a great job in keeping up with it.

Building (Architecture) Committee Report, November 2008
Toni Horodysky, Chair ( )

Mike Metzler, __, reported a leak in his roof. Stated that he had discovered the leak back in the spring and River Roofing had made a repair. He placed a bucket in his attic to catch the drips, so the rain is not doing further damage while he awaits repair. I've noticed moss is growing on many of our roofs and will need to be removed as schedules permit.

Manager's Report-November 2008

With the leaves falling, a majority of the time this month has been taking care of the landscaping, clearing the roadways, walkways and clearing the grounds of leaves. We appear to be on the downside for fall leaves, with some major trees now totally devoid of leaves, notably along Willamette Street, and significant portions of Westbrook way. Over the week just passed, the leaves were coming down so fast that practically every day that week was spent collecting them.

The roofs have been cleaned once, and the roofs and gutters will be cleaned again in the next few weeks after the majority of the leaves have fallen. Gutter guards are being reversed since it appears that a certain style installed prior to my arrival has been put in backwards, creating a lip that catches and allows accumulation of debris.

A portion of the trees on the Westbrook side from Willamette Street to the first bridge have been pruned of deadwood. Approximately 5 dead trees (chilcots), some as tall as 40 feet, have been removed, as well as some significantly large dead conifer limbs from about 40 feet high and below. Focus on this area was due to trimming deciduous trees while the leaves were still on to be able to see the dead branches. Next month, the focus will be on the Brae Burn side as there are significant Ponderosa and other pine and fir trees with a lot of dead wood that needs to come out. Landscape committee chair Bruce Trafton has worked tirelessly in overseeing the landscaping, gathering best practices information, and physically dragging brush, pruning, and assisting with clean-up.

A 60' diseased hardwood was removed from the creekside path near 170 Brae Burn. Toni Horodysky with an eagle eye spotted mushrooms growing on the trunk, and potential uprooting signs. After felling the tree, the diseased condition was confirmed. The association is lucky to have her overseeing the Building committee. Toni has been a very reliable, invaluable resource with great organizational skills and a knack for accurate due diligence on buildings issues.

There are some lighting issues, including finding a suitable replacement globe for the street lights, and proper ballast replacements which run the fluorescent light poles, that are being worked on.

Painting and siding replacement has concluded for the year, given the turn in the weather, the shorter days, and lack of adequate temperatures over time.

The last of the yellow jackets' nests has been taken care of.

We have one unit with a leaking roof vent, and probably about 5-10 units that need downspout and gutter work, which we'll be focusing on as soon as the leaves stop falling.

Frank E. Bocci, Jr.

A Letter to Homeowners:
For what it's worth, the Board has worked very hard, (and not to slight anyone, but especially through the efforts of Gloria Gehrman and Bev Behrman with respect to the reserve study)(and I thought they had one of their best meetings this month), in acting in the best interests and in a financially responsible manner on behalf of the Association. I know, especially in these times, that the proposed raise in monthly association dues, may be difficult to understand. However, in my opinion, the Board is taking an entirely prudent course of action in suggesting the dues be raised to $265.00 per month.

What has essentially been going on over the years is that the dues have covered operations costs, but have not had funding for capital improvements. The current proposed assessment, as I understand it, includes with it essential provisions for building reserves for future capital improvements, including items such as paving, underground utilities, roof replacement, and the like, so that when items reach the end of their useful life, funds will be in place to replace the roofs, repave the streets, etc., without having to impose significant special assessments.

It will become, in the future, more difficult to market condominium units that are not adequately funded. The trend legislatively is to require Associations to put in place proper reserves, and lenders and buyers are becoming more demanding and savvy in requiring the same as it becomes very apparent that inadequately funded associations are very risky as evidenced by associations that have literally had to file for bankruptcy.

Right now, this association is on the verge of a perfect storm. First, while the past trend has been to stay within budget, what that has translated to is a back log of work to be done, as evidenced by the siding and painting issues experienced this summer. Even though I thought we made good progress, no one can argue that there still is not a significant number of units in need of siding replacement and painting. In other words, the special assessment only addressed a portion of the siding and painting problem. It's almost a sure bet that those homeowners whose siding and painting needs were not addressed feel as though their payment of the special assessment for that purpose was of no benefit to them since they, to date, have received nothing from it.

Second, the reserve study has been very beneficial in advising the association of realistic future needs. The problem in the past is that unless it's been a current problem requiring immediate Board attention, it isn't something on most people's radar. Now, thanks to the reserve study, it is. Your Board, in my opinion, has been and is acting very responsibly with their request to raise the dues.

Here are some examples:
1. By allowing me to hire proper personnel, the Association is hopefully getting better value for their money. Chuck Bowman, who did the painting this year, costs the association about $25.00 per hour. Bids for painters ranged from $42.00 to $50.00 per hour. Add to that my cost to oversee the painters and their work. The nice thing about Chuck is that he's a good worker independent of my oversight, so the Association saves more money for the time I don't have to spend supervising him, and using my time for other issues. So, on dollar cost alone, we were able to dedicate more money to siding replacement because painting cost about half of what an outside contractor would have cost. Just as important, Chuck is very efficient in three regards--a) he was more than able to keep up with the contractors, b) he's fast and stays on task without sacrificing quality, and c) since he's able to do other work around here, painting was able to be completed when conditions were optimal, translating to mean that the paint applied should last longer. For example, he could and did paint when the temperature range was optimum (not too cold or the paint won't dry, not too hot or the paint would dry too fast, potentially resulting in later peeling and flaking and failure), wind and other conditions were right. In other words, he was able to work when the conditions for painting were optimal, including after normal working hours and weekends, as opposed to when, as with outside contractors, it could be fit into their schedule. So, if the paint lasts even a year longer, it's a win for the Association.

2. The Board realizes there is a backlog of work. I'm amazed at the number of times I hear that things haven't been done for eight years, thirty years, ever, etc. For example, there are about 4000 trees here, and if one account is to be believed, they haven't been pruned of deadwood for thirty years. This is now being done because a lot of these trees are very big, and therefore present a very real risk of threat of injury to person or property. However, that also means a lot of money is currently being spent to play catch-up for years that this issue hasn't been addressed. The good news is that once this is done, the cost for maintaining the trees should be far less, but that assumes a significant amount is allocated for this purpose. I am aware that for years, homeowners have requested certain plantings, only to be told it isn't in the budget, or there wasn't enough to go around. In the short time I've been here, we've removed about 10 trees. The current outside contractor is not and has not, on the amount of money allocated to this contractor, even been able to keep up with the needs of the trees here, much less get ahead.

3. For the first time for this association, actual dedicated reserve accounts will be set up, so that money set aside for roof replacement is only spent on roof replacement. In the past, there has been a relatively small capital improvements account with no special dedication. Since boards change, without dedication to specific uses, the general capital improvements account has been at the mercy of current needs or desires of the Association, resulting in depletion, and then special assessments when it becomes apparent that siding needs to be replaced and painting can no longer be put off. My goal is to increase the efficiency of the expenditure of your money. By way of example, I'm not ignoring the requests for gutter and downspout replacement or landscape plantings, but attempting to focus on one item at a time. It costs about double to go do a single gutter, when you consider hauling out the necessary tools, going to the store each time for materials, and putting in a single installation. It is a far more efficient use of your money to gather all of the similar requests, make a single materials list for all gutter and downspout jobs, and complete all the gutter and downspout work at one time. With regard to the siding and painting, next year we will be much more efficient. Two things happened this year which were probably frustrating to those whose needs were not addressed--a) we had to make certain we had enough in the budget to complete painting for the siding which was replaced and had to be painted, which meant putting off paint-only projects and b) our siding and painting priority list of needs was on several occasions re-prioritized as more severe dry-rot and painting needs of other units not on the initial list came to our attention, bumping some of those originally intended to be included down the list. This Association is generally in good condition, but the reality is the property is at an age where proper planning for replacement of capital improvements is here, now. We have two very good realtors living on the premises, Colin Call and Bill Skillern, and through them, I'm aware of other Associations that have far larger issues that this Association does not want to have before it. I haven't spoken with Colin Call lately, but he's made me aware of one Eugene Condominium Association that may be facing a $50,000 to $100,000 special assessment per unit because of siding failure, which has resulted in structural dry-rot. As I understand it, this is the result of improper eaves to keep the water out from behind the stucco. It's unknown if and when this particular Association became aware that the eaves were inadequate to prevent water intrusion. A huge advantage here is that, because your Board had the foresight to obtain a Reserve study, this Association now knows with some reasonable expectation what future needs will be for the Association to give reasonable probability to avoid a future catastrophic event.

This Association has been very lucky, thanks to the diligence of the current Board, and the hard work of the Building Committee and others, in acting prudently to avoid a similar fate. By way of example, we've had one unit this year where the siding failure resulted in significant dry rot and mold issues, and it was far and away the most expensive fix of all of the siding and painting repair done this year, maybe by three or four times over. Thankfully, even though it's been expensive, the siding replacement done this summer has been almost exclusively without additional significant dry-rot or mold issues (none that I know of), meaning it has been done in time to avoid a far more costly outcome. While it is readily apparent that it cost each homeowner $500 or so in a special assessment, the unseen side is that had it not been undertaken in a timely fashion, it could easily have approached $2,500 to $5,000 per unit special assessment if not addressed when it has been had it been put off.

I know that approving the proposed increase in the monthly assessment is not easy. However, in my judgment, it is the right and prudent decision to make to significantly reduce the probability of a far more costly and untimely outcome. No one can doubt that cars have maintenance and replacement schedules that cost significant money but usually pay big dividends in maintaining value, reliability and functionality if adhered to. Certainly, the place that you live is of no less importance.

Frank E. Bocci, Jr.

[Phone numbers, e-mail addresses, and street addresses have been removed for privacy reasons.]

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