Creekside Calabasas HOA3) CC&R’s Hygienist to test and establish Asbestos & Lead Protocols if necessary Mobilize and complete single roof repair Board to select & Approve Subcontractor

Creekside Calabasas

Roofing Replacement Project November 2015

Agenda for this Evening’s Meeting:

• Design Build Associates, Inc.

• Current Status of the Project

• Project Budget – Estimated Project Costs

• Project Financing and Board Considered

Alternatives

• Bank – Loan Options

• Voting Process – Ballot

• Association Attorney’s Comments

• Time Line For the Project

• Questions from the Homeowners

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• Design Build Associates




Alternatives



• Association Attorney’s



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Design Build Associates

Why Design Build Associates

• For over 30 years DBA has been passionate

about ensuring the highest quality and

construction standards for Homeowners

Associations.

Why Construction Management

• A Construction Manager provides the

necessary checks and balances to assure a

successful project considering time, quality,

and cost objectives.

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How we achieve our client’s ultimate goals:

• Establishing a proper scope of work

• Prioritizing the necessary repairs

• Overseeing the project completion in a

timely manner and at a reasonable cost






Alternatives






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Creekside Calabasas HOA Pre-Construction

Job Process Flowchart

Work Product

Updated 11-12-15

Creekside

Calabasas

Sign

Contract

Establish Client

Contact and

Communication

Protocol

Identify qualified

subcontractors to

complete single

roof repair

Receive

proposals and

present to HOA

Negotiate

Contract(s)

Sign

Contract(s)

Identify the Issues 1) Life Safety

2) Water Intrusion

3) Aesthetes

Review HOA’s 1) Maintenance

History

2) Reserve Study

3) CC&R’s

Hygienist to

test and

establish

Asbestos &

Lead Protocols

if necessary

Mobilize and

complete

single roof

repair

Board to select &

Approve

Subcontractor

Receive

Hygienist

proposals

Sign

Contract

Meet with

Subcontractor

to discuss

Staging and

Schedule

Oversee Removal

and Replacement

of Roof Work

Review and

Finalize

Specifications

for the entire

Roof repair

Project

Prepare RFP

and Scope of

Work

Gather

Photos,

materials and

docs.

Discuss

HOA

Financing

Identify

Key

Lenders

Provide all

necessary

paperwork

to lenders

Receive

lender

proposals

Select

Lender &

Complete

Finance

Package

Identify

Qualified

Contractors

Complete

Bid Form

Bid to

Selected

Contractors

Complete

Bid

Analysis

Select

Contractor

Send letter to

homeowners to

announce Town Hall

Meeting to be

followed by a vote

for the assessment

Town Hall Meeting

1. Design Build Associates

2. Current Status of Project

3. Project Budget – Estimated Costs

4. Lender Financing

5. Introduction of Contractor

6. Introduction of Lender

7. Voting procedures

Vote of

Membership

Validate that the

Funding is in

place for work to

proceed

Sign

Contract Construction

Phase Begins Pull

permits

Legend Client DBA Team Contractor Lender Hygienist

Sign

Contract(s)

7

Prototype Roof Findings

8

Photo shows evidence of ponding

on roof due to improper sloping to

drain.

9

Failing Seam

10

Damaged and improperly sealed

flashing

11

Previous flashing repairs

inconsistent.

12

Incorrectly installed sheet cap

which has resulted in failure at the

connection point.

13

Failure of Roof Vent Seal

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Photo shows Roof Gutter at one

location of roof line and shows

missing gutter at another location.

15

Tile placement is not correct.

Photo indicates the overlap is not

sufficient.

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Preparation of Roof Scope of Work

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• Remove all roof material, stack roof tile for

reinstallation

• Inspect plywood sheeting and replace as

necessary

• City Inspector, issue approval to cover

• Install underlayment material to make the

roof watertight and re-install tile using foam

adhesive which drastically reduces

penetrations in roof

Scope of Repairs:

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• Install single-ply Fibertite System on Flat

Roofs

• Paint all Metal Flashing

• Install new Gutters and Downspouts as

necessary

• Complete any pick up items

• Walk roof with City Inspector to get Permit

Card sign off

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Scope of Repairs(continued):

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Removal of existing roofing

materials. Stacking tiles to be

reset.

21

Inspect plywood and replace any

damages materials.

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Photo of the beginning of the

placement of the new underlayment

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Photo showing the installation of the tile

using Foam Adhesive

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Photo showing the Foam Adhesive

Photo showing Fibertite Roof being installed on

larger project

25





• Project Financing – Board Considered Alternatives




• Line For the Project


26

Contractors Bidding:

Selected 4 Qualified Contractors to Bid

Roofing Standards Inc. - Selected

27

Project Budget

Description $ Cost

Roof Repair

1. Remove and Replace Roof Systems $1,404,600

Construction Total $1,404,600

HOA Contingency - 20% $280,920

Total Budget $1,685,520

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Board Considered Alternatives

• Increasing damages due to delayed repairs means higher costs

• No control over the guaranties and warranties

• Difficult to prioritize because some of the roof issues are hidden -

structural damage not visible until work is uncovered

• Project under construction for many years, effecting re-sale values

• Which homes get fixed first (also effects property re-sale values

for individual owners)

• Homeowners responsible for interior damage per CC&R’s

Items considered by the Board that are not recommended:

1) Continue to make “band-aid” repairs

2) Phase the project over years to avoid assessments

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Board Considered Alternatives

• Enhanced property condition immediately improves the property

resale values for all homeowners

• Project will be completed within 8 months (weather permitting)

• Costs are financed over 15 years

• Control of costs are guaranteed

• Quality control by using a single contractor

• Warranties and guaranties maintained

• Fair to all homeowners because everyone gets the work completed

at relatively the same time

• Reserves on all new components can be reset to zero therefore %

funded will increase resulting in enhanced property values

• Helps individual homeowners to obtain financing

• After roofs are completed the board can consider turning to roofs

over to the homeowner.

Recommended and best solution is to complete

repairs at once and finance the project over time











32

Lenders Bidding:

Approached 4 lenders who will fund HOA Projects

Bank Popular – Board Selected

33

Bank / Lender

34

Loan Amount up to: $2,000,000

Loan Rate: 4.60%

Term: 15 Year











35

Ballot

• Homeowners will be receiving a Ballot within the

next two weeks.

• Content of Ballot to be written by HOA Legal

Representative and approved by Board for

distribution.

• Dollar amount of Assessment to be confirmed as

part of the Ballot. Board considering reserves

prior to establishing Assessment amount.

36 36






Alternatives





• Discuss Ballot Packet for Owners


37

Association Attorney

Lisa Tashjian, esq.

38

ASSESSMENT AND APPROVAL OF

ASSOCIATION & OWNERS

• Civil Code Section 5605

o Majority of a quorum

o Quorum defined

• CC&Rs not applicable

BOARD’s OBLIGATIONS TO

ASSOCIATION & OWNERS

• Fiduciary duties of board member trustees

• Reasonable inquiry

• Reliance on experts 39

BUSINESS JUDGMENT RULE

• Duty to act

o In good faith

o In the best interests of the Association

With reasonable inquiry

• Protection – Board and Owners

• Risk & Liability

40











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Project Time Line

1. Ballot for vote will go out within the next 2

weeks, due 30 days after distribution

2. Work to begin on or before February 1, 2016

(weather and approvals permitting)

3. Construction to be completed no more than 8

months from start (weather permitting)

4. Construction schedules will be posted and

homeowners will be notified prior to start of

work on their homes

42 42









• Voting Process - Ballot



43

Questions and Answers

1. What is the roof warranty?

20 Years Manufacturer Warranty on Fibertite

10 Years on Labor for entire roof

2. Do you have to go through a credit approval application process for

my part of the loan?

No, the loan is taken out by the Association

3. Where do I make my monthly payments for the loan?

To the Association

4. How will the Reserve account be affected after the project is

complete?

The reserve account will be reset to zero for all the items that were

repaired by the project so percent funded should increase

Corporate Office | 5655 Lindero Canyon Road Suite 321 Westlake Village, CA 91362

Orange County Office | 15 Corporate Park, Irvine, VA 92606 License No. 1005935

“Our mission is to provide high

quality professional construction

management services, using all

of our knowledge, experience and

judgment in the best interest of

our client.”

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Website

Website: www.dbuild.com

(go to Client Access page)

User Name: Creekside

Password: roofing2016

http://www.dbuild.com/

Creekside Calabasas HOA3) CC&R’s Hygienist to test and establish Asbestos & Lead Protocols if necessary Mobilize and complete single roof repair Board to select & Approve Subcontractor

Documents