Finance & Legal minutes: 2019-02-27

Minutes:

Please be advised:

These minutes are going out very late.
The content has evolved considerably since this meeting.




Minutes of 2-27-19 GO Finance & Legal Committee Meeting

Present: Debbi, Becky H., Amy, Becky G.
Absent: Sharon
Guests: Members of Process between 7-8 p.m.: Bob, Jillian, also Bill
Doster
Willie between 8:00-8:30 p.m.


1. Monkeys from last meeting/past meetings are integrated into the
relevant sections below

2. Basement Egress item. We invited reps from Process to join us
between 7-8 p.m.

Following the community meeting discussion, we realized that there are
pieces of this topic that involve Grounds, F&L, and Buildings. Should
Steering be involved? No. Better to do it in a full community meeting;
Steering is intended to deal with urgent items.

Setting it up as just two choices at the recent community meeting got
people fired up. Instead, we need to figure out what the needs are. But
framing that is not easy.

Bob talked with Mary, Bill, Bennie, and Annie, all of whom had strong
feelings. Mary suggested coming back to the community to frame a problem to
be solved. We now understand that GO is liable for injuries that may occur
when the basement egress is used. Try to frame the problem clearly, and
lay out the issues.

Bob shared a flowchart of topics that could be discussed in the meeting:
* Contributing factors to the problem: more ice, cost varies by
building
* Get all clarifying questions listed and answered.
* Listing concerns from varying perspectives (owners with walkouts,
owners without walkouts, etc.)
* Brainstorming solutions: how much would it cost, who would pay,
cost-sharing etc.
* Identify components to the solution
* Next steps

It’s not just a liability problem, it’s financial problem. If we put
sidewalks on the north side, how do we pay for it in an equitable way, and
how do we get the work done?

The concerns F&L has heard are that people don’t want their expenses or
their work responsibilities to increase.

The financial question gets tied up in the legal question, because we can’t
allow households to pay directly for installation and construction in
general common elements. We’d have to transfer the property into limited
common elements. If we don’t, everyone has to pay.

We had a wide-ranging conversation including such topics as:
* The idea of transferring General Common Element land to become a
Limited Common Element, so owners could pay directly for the sidewalks.
Transfer of property requires the mortgagers to vote. This costs about
$3500 of lawyer time. We’d want to roll the decks into this; this changes
the value of the units.
* If one owner paid for the whole thing, the Reserve contribution
becomes a problem if that household moves out
* What if we played out the discussion in front of the group, almost
like a bigger fishbowl.
* There are people who feel that it’s a need that they be able to
have basement egress.
* There are other people who refuse to pay for this.
* We assume that renters will participate in the work system and
abide by our rules, but we can’t be sure. In theory it balances out, but
it’s very uneven.
* The question is not what it’s going to cost, but who pays for it,
and how do we make it equitable. The policy needs to make clear that the
owner pays for X and GO pays for Y.
* Could Skills & Thrills focus on this? Don’t want to wait until
November. Could bring in outside facilitation.
* GO needs to make sure we don’t impinge on protection area (wetlands)
* GO could put in the sidewalk in the GCE, and then the landlords
would pay only for the connector from their door. That would require
regrading.

Saturday, March 9 is Becky’s Alternative Meeting…maybe try to switch with
April’s Alt Meeting and do Grounds on the 9th and April for Egress? We
will explore this, and F&L will work with the facilitator to plan the
meeting process taking into account this evening’s discussion.

3. Legal aspects of adding onto a unit – Willie – 8:00-8:30

Talked to a contractor, got price shock. Will shop around!
Talking about expanding their house. Most dramatically would remove shed
roof, expand 2nd floor, enclose front porch; separate projects, but would
like to do them at the same time.

Buildings didn’t have any blocking concerns.
A couple of neighbors are concerned about a 3rd idea; Buildings would block
this.

If they expanded the 2nd floor, they’d add onto the roof and exterior. So
who would be responsible for this?

Debbi explained that anything that changes the envelope of the building
would require paying into the reserve, and we’d treat it the same as the
rest of what you pay. We already have a mechanism for charging this.

Must be up to code, must be licensed, must have permits.
Would they need to pay for the reserve fund update? No, it would get
folded into the next scheduled reserve study.
Will just be electrical and HVAC. No plumbing, internet, phone.

Porch: 4-season siding, treated the same.

Will come to the community? Current ARC proposal, get Building’s approval,
check with neighbors. Buildings said they would like community buy-in.

F&L has no blocking concerns.
Reserve handled using the mechanism we have.
F&L recommends that Willie & Katie match or exceed existing quality and try
to match the existing aesthetic.

The third idea was to expand the footprint. Debbi said she is loath to
give up common space for private use; sets a bad precedent.

4. Bookkeeping updates
a. Arrears
i. One household will be
over $1000 if they don’t pay this month.
ii. Another household is
on a payment plan; if they don’t pay they will get a late fee.
b. Anything else?
i. All reimbursements
are paid, except for Reserve
ii. Will get reports out
soon.

5. Progress on Priority items
a. Master Deed & Bylaws
b. Reserve Study – Mary King has contacted Paul Conahan to ask him to
get started on the study.
c. Basement egress issue – #3 above.
d. Truck Proposal – Amy shared draft proposal with Malcolm, for Grounds
to consider picking up.
e. Calendar of routine tasks – underway!
f. Landlord leases – Updates from Becky H.
i. Rick incorporated the
things we wanted from the last two meetings. Big question is about the
personal liability. We had wanted it to say that the landlord had to carry
liability insurance. But the way Rick’s lease was originally written, it
said that the tenant was responsible. We asked him to change it. So what
Rick did was add an indemnification clause at the end protecting GO. Becky
and Debbi thought this was ok.
ii. Becky changed some
wording to make it more accurate, but doesn’t change the legal meaning.
iii. She will take out the
lead-based paint item; we don’t have any.
iv. Then we’ll have a
lease!
v. We’re supposed to add
the primary egress decision once we have it. Could he say: Primary access
is determined by current community documents?
vi. Landlords may make
changes; highlight them for F&L’s review. If we have any concerns that
require legal review, the landlord will pay for the legal fees.
vii. This is lease template
that landlords must use; they can modify it.
viii. “Because we are
supposed to be reviewing leases, we’re providing a pre-approved lease.
Easy path to getting it done. Asking people to use it going forward. If
you use you use your old lease, we’ll have Rick review it at owner’s
expense….”
ix. Put template on
important docs WIKI page
x. Info item at community
meeting: Becky H. May meeting, 15 mins.
g. Unit modifications/Documenting build-outs (Master Deed, insurance,
Buildings/ARC process) – the MD part has already been discussed in a
plenary conversation.

6. Ongoing items
a. Right of first refusal for unit sales. Debbi wrote up language to
share with the community and get feedback. Shall Amy request time on the
March 18 agenda for this info/discussion item? How much time is needed?
Debbi will be in Florida, so Amy will ask for time on the April agenda. 25
mins.
b. Amy wrote to Buildings on 1-2-19 to ask for documentation and a
narrative about what happened with Jenny/Polly & Drew’s roof so F&L can
follow up with Rick.
• Mary sent an email which Amy will share with the group.
c. CH Com re: CH Leases and proof of insurance.
We now have copies of both leases (at least the front page). Amy will
follow up with CH Com regarding responsibility for CH office leases, noted
in the CH Com mandate.
d. Water sensors / Insurance discounts (email from Dale)
i. MONKEY: Becky G. will
write to Tiffany to ask about discounts, and will research the expense.


7. Matters arising - none

8. Next meeting – 3-13-19


Cooler doc:
https://docs.google.com/document/d/1_dmnNJmHmrwwFIfnscnRbPK-_8_kmahfFsOTn_fEvTY/edit
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