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AlanL5 (Florida)
Posts: 6
Posted:
I LIVE IN A SMALL TOWNHOUSE COMMUNITY, 7 BUILDINGS WITH 4 UNITS EACH. WE HAVE HAD A RESERVE LINE ITEM FOR TERMITES AND USED IT TO PAY ORKIN FOR A SPOT TREATING POLICY.

ONE UNIT HAS TERMITES INSIDE THE HOME, AND ANOTHER IN THE SAME BUILDINGS FACIA. ONE OTHER HOME IN ANOTHER BUILDING HAS THEM IN THE FACIA TREATABLE BY SPOT TREATMENT.

HOWEVER THE BOARD HAS DECIDED THAT THE RESERVE IS NOT REALY A RESERVE AND WANT TO TENT ALL THE BUILDINGS BECAUSE THEY WANT TO REROOF. THE ROOFER WHO RECOMMENDED THE EXTERMINATOR RECOMMENDED IT. THE COMPANY HE RECOMMENDS HAS NOT INSPECTED OUR HOMES.

WERE ORKIN DID AND FOUND 27 OF THE 28 UNITS CLEAR INSIDE AT TIME OF INSPECTION.

CAN THE BOARD USE THE TERMITE RESERVE TO TENT INSTEAD OF RENEWING ORKINS AGREEMENT WITHOUT MEMBERSHIP APPROVAL, AND CAN THEY FORCE US TO HAVE OUR HOME TENTED EVEN THOUGH NO ONE IN OUR BUILDING HAS TERMITES?

THANK YOU

ALAN
MarkM31 (Washington)
Posts: 351
Posted:
Quote:
Posted By AlanL5 on 09/15/2016 8:13 AM

HOWEVER THE BOARD HAS DECIDED THAT THE RESERVE IS NOT REALY A RESERVE AND WANT TO TENT ALL THE BUILDINGS BECAUSE THEY WANT TO REROOF. THE ROOFER WHO RECOMMENDED THE EXTERMINATOR RECOMMENDED IT. THE COMPANY HE RECOMMENDS HAS NOT INSPECTED OUR HOMES.


What does that even say? The roofer recommended who that recommended what that recommended which?

SheliaH (Indiana)
Posts: 6,964
Posted:
Apparently you posted this subject twice, so I'll post here and you can look at this one for subsequent responses.

First of all, please stop typing in all caps – it’s a form of shouting and hard on the eyes.

Next, check your documents to see how much leeway your board has on the budget and hiring vendors – you’ll likely find it doesn’t need homeowner approval to enter into contracts with any vendor (or terminate them).

What did the board say when you asked about the reserve “not really being a reserve?” I suspect they’re thinking pest control is more of a maintenance issue that should be covered under your operating budget, whereas replacing a roof is a reserve item. Reserves are used for major repair or replacements of community components – in this case that would be your roofing, sidewalks – things that you aren’t replacing year after year.

It could be the portion of the reserves originally designated for termite control will be used for something else in the reserve budget. You may want to take a close look at your budget and perhaps your documents (again) to see if there are any definitions on what is a reserve item, what reserves are to be used for, etc. If you’ve had a reserve study (and you should), the reserve study specialist may have noted pest control isn’t a true reserve item.

It would be a good idea for the board to get a second opinion (perhaps a third) from different vendors as to what to do about the unit with the current termite problem. The problem with those little buggers is that they could spread and that could be why the roofer recommended tenting (if the termites are all over the place, they’ll chow down on a new roof and you’re back to more expenses in getting rid of them and even more pest control). Perhaps the board wants to avoid any future problems with the other buildings so it wants to tent the buildings.

As you suspect, tenting isn’t cheap and somewhat inconvenient, but you don’t want to deplete reserves for one thing. What happens if you have problems with another building around the same time another reserve replacement becomes necessary, such as siding replacement? Do you want to be faced with a special assessment to pay for all of it – in addition to paying regular assessments that should be funding the reserves anyway?

Discuss this with your board and see what it says – the answer could be as simple as getting a second opinion and then presenting the findings to the community so they’ll know what their options are.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AlanL5 (Florida)
Posts: 6
Posted:
I am sorry I was not clear.

We have had a Reserve line item called Termite Reserve. It was used as a capital reserve to pay for Orkin to spot treat our homes.

When the board wanted to use it to tent they stopped paying for Orkin's spot treating our homes without membership approval, and let the contracts with Orkin expire.

When the board decided to re-roof our community, the roofer they want to use recommended we tent before re-roofing as well as the exterminator who the board has selected. The exterminator never inspected our homes and claimed we all have termites.

Several members insisted our homes be inspected. Orkin inspected all our homes, and found one unit had termites inside the home and two had active termites in the facia which could be spot treated.

Since Vikane, the gas to be used, has no residual benefits (which has been confirmed) there doesn't appear to be any benefit to tent buildings that don't have termites. So I proposed tenting the building that has termites inside and spot treating all the buildings. This will leave a residual and the exterminators who perform the tent-less proceedure will provide a 3 to 5 year warranty, at a lower cost, and less inconvenience.

Furthermore the exterminator they selected wants us to sign a document giving them the right to sub out the work and relinquish them any third party liability. At the end of the day I am not sure why we are being tented since we were found clear of termites, and if they can hire third party vendors to do the work without liability I don't know who I'm letting into my home.

Alan

SheliaH (Indiana)
Posts: 6,964
Posted:
Your documents, especially the CCRs, generally dictate what the association is responsible for vs. the homeowners, and like I said earlier, reserves really should be used for big ticket repairs and replacement, like roof or siding replacement because you don't need to do that every year (at least you shouldn't have to). You haven't said if your association has had a reserve study - does it say anything about this topic? If you don't have a reserve study, it would be a good idea to get one so you can make that distinction and ensure your reserves are being used for what is really needed.

I'm not sure I would have placed termite control in reserves so your board is probably correct in removing it. You still need to check your documents to see what they say regarding the budget and what the board is authorized to do with and without homeowner approval (that may be in the Bylaws and CCRs) - usually the boards are given a certain amount of leeway as to where something should go in the budget, although I agree it would have been a good idea to let the homeowners know that effective X date, spot treating wouldn't be covered and why, and what would be done in the future.l

The board likely has the power to select who does what maintenance on the units, whether it's Orkin or anyone else. I'm concerned about the proposal to relinquish the exterminator (whoever that is) of third party liability. I would be concerned that if they sub out the work and the subcontractor doesn't get paid, the subcontractor can then go after the association for the money and possibly slapping liens on everyone's homes if they don't get it. Your board should have the association attorney review this as well as look around for another exterminator.

And yes, it sounds like they need to get some more opinions on what should be done about these termites before tenting, spot treating or doing anything else. So once again, what did they tell you when you asked your questions and if they're digging in their heels, are you and the other homeowners honked off enough to look at your documents a third time to see what can be done to recall them or vote them out at the next annual meeting? Do you have anyone willing to step up and take over if you're successful?

One more thing - if you've had spot checks to address the termite problems, it seems it's time to take a long view and see what else can be done to get rid of them once and for all. Whoever you choose to hire as an exterminator, you might want to ask if they can look around the buildings and grounds and see what can be done. I just read the following on one website:

Termite treatments can be the most complex treatments of any household pest management issue (and you'll never get rid of them entirely, but can prevent them from taking up residence in your home). Depending on the species of termite, the colony’s location(s) and the extent of infestation, your professional may need to use more than one treatment method. These methods often require specialized tools and techniques. For example, carefully formulated soil treatments may need to be applied via rods inserted under your house.


If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AlanL5 (Florida)
Posts: 6
Posted:
Our CCR's have not been updated since the community was built over 20 years ago. I do not know when the added the Termite Reserve line item, but is has been part of the financial statements since before we moved in.

I have asked for copies of the last 2 reserve analysis a week ago, but is appears I need to send the request by certified mail. I tried meeting with the President of the association to review the Termite Reserve Line item components and he canceled the meeting.

I contacted the company that distributes the gas that they plan to use to confirm if there was any benefit to tenting our buildings if there were no signs of infestation. They responded there was none, since there is no residual benefit and as you said they can return as soon as the tent is removed. I have contacted a entomologist, and they confirmed that there is no residual benefits to tenting.

I expressed concern that the exterminator the board selected has never inspected our homes, has been in business for three (3) years, works out of his home without a occupational license, his state license expired August 31, 2016 and as of Monday was not renewed. Furthermore, though he represents he self performs all the work, he wants us, individually, to sign a document allowing him to hire third parties to perform the work and to relinquish him from third party liability.

So I got a bid from a company that has been in business for 10 years, check his references, and who speciallise in Tent Less termite eradication. He came in substantially less expensive and offers a three year warranty. By the way the method he proposed does not require us to move our of our homes and is how the entomologist treat their facility.

I recommended tenting the building that has termites inside one of the for homes and treating all the homes and clubhouse with the tent lass method getting and 3 year or longer warranty, so we could reserve to have the process done at the end of the warranty to period, giving us a long term solution.

Alan

SheliaH (Indiana)
Posts: 6,964
Posted:
If you want to see the last reserve studies and need to make the request in writing, do it. Creating a paper trail is a good idea and there shouldn’t be any hesitation to give homeowners copies of association records. As for your cancelled meeting, the reason is somewhere between something really came up and the president doesn’t want to respond because he doesn’t know how or just doesn’t want to, which is far more serious.

You’re also correct to be concerned about this exterminator – hasn’t inspected all the buildings and doesn’t have a license or has renewed it (we’re halfway through September already), and of course, there’s that business about wanting everyone to relinquish him from third party liability and give him permission to hire subcontractors without giving the association a lien release from those subcontractors. I’m beginning to wonder if the president is the one really driving all this.

That being said, I know you meant well and the contractor you talked to appears to be more reputable, but it’s not your place to get a bid on your own – the board is supposed to be hiring contractors and it should be smart enough to get at least 3 bids for expensive work and do its due diligence by checking for licenses, performance bonds, if appropriate.
Now, since the president seems to be stonewalling you, you need to start talking to the other board members. I’ve always felt anyone should be able to go to any board member and get complete and accurate information on why something is or isn’t being done. Have you talked to them? If so, what was the response?

If it appears there’s a lot of groupthink going on because no one wants to piss off the president, you’ll need to start talking to your fellow homeowners and see what they think about all this. What a bunch of homeowners start attending meetings and demanding answers from the board, that’s when you start seeing change. Sometimes the change means the homeowners will have to vote out or recall do nothing, incompetent or just plain unethical power hungry types. That also means someone else (including you) will have to be willing to step up and do the work instead.

So, if you’re looking for a simple solution to this or for someone else to do the heavy lifting, sorry, but life doesn’t work that way, especially in HOA land. Sometimes, these things don’t get changed unless and until YOU get up and start doing the heavy lifting. This is your home and ultimately, you need to take responsibility for what happens with it. So get on with it and I wish you luck.

One more thing, I understand what you're saying about old CCRs - my community is working with a really old set as well, but no one seems to want to take on that project. The last time we tried, half the people didn't respond to anything and the others were honked off about a rental restriction that had been proposed. We also neglected to have people get their ballots notarized when submitting them (as required by our CCRs) so if the proposals went through, they would stick.

Today, we have a bunch of off-site owners who barely manage to submit proxies so we can meet quorum for an annual meeting, so the board does what it can, although so much more could be done with updated documents. If you do manage to get a new board, that might be among the new projects it wants to take on and there are several conversations on this site about the best way to go about it.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AlanL5 (Florida)
Posts: 6
Posted:
Just to let you know, without spending thousands to defend a lawsuit we agreed under duress holding the Association liable for any damages since they never responded to our concern regarding Assignability and Waiver of Liability in the agreement they insisted we sign.

Thank you for all you responses.

SheliaH (Indiana)
Posts: 6,964
Posted:
Sorry, but what do you mean by "we agreed under duress holding the Association liable for any damages since they never responded to our concern regarding Assignability and Waiver of Liability in the agreement they insisted we sign"? How did the board decide to handle the termite issue? Are the homeowners riled up enough about all this that they'll pursuing a recall or plan to vote out the current board (at least get rid of the president)?

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
MelissaP1 (Alabama)
Posts: 13,836
Posted:
So you duressed yourself and your neighbors?

Former HOA President
AlanL5 (Florida)
Posts: 6
Posted:
Though I objected to the tenting for the following reasons:

only one to the seven buildings had live termite infestation upon inspection
tenting has no residual benefits (the day after termites can return)
4 of the 7 buildings were under contract with Orkin to spot treat for termites
the company the board selected never inspected our home
the company they selected did not provide a complete Certificate of Insurance
the document they insisted we sign allowed the contract to be assigned with no qualifications and relinquished the company from any liability

Since the board threatened to sue if we did not sign, and never addressed our concerns, we agreed under duress holding the Board liable should any damages or accident occur

SheliaH (Indiana)
Posts: 6,964
Posted:
No disrespect, but this sounds like someone blinked - people can threaten all they want and sometimes you just have to let them run their mouth and see if they have the cashews to bring the pain, so to speak. You didn't say how many homeowners are concerned about this besides you and the way this reads, it sounds like the only one the board threatened was YOU> In that case, you really should have discussed your options with an attorney before signing anything. Perhaps he/she might have been able to negotiate a settlement or helped you with representing yourself in small claims court to settle this.

If there were enough homeowners upset about this (that is, they outnumber the board and assuming there's one vote per household), I see no reason why you couldn't have rallied together to pursue a recall or force the board to reconsider this action. I hope this works out for you nonetheless.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By AlanL5 on 01/10/2017 9:11 AM

Since the board threatened to sue if we did not sign, and never addressed our concerns, we agreed under duress holding the Board liable should any damages or accident occur

I would have told the Board to Make My Day!!! Keep in mind in the future nobody can "coerce" you to do something against your will ... most likely a Judge would have thrown that out his door. Next time give a feather for those who do not deserve the whole bird

GenoS (Florida)
Posts: 4,276
Posted:
I think SheliaH covered this pretty well. It sounds like a contingency fund that is kept track of through a "reserve" line item, but is technically not a reserve item at all. To be a "reserve item", it has to be something with a definite "useful life" which can be planned for in advance over a fixed number of years. Termites are an ad-hoc thing that cannot be predicted on any firm timeline. People can refer to it as a "reserve" if they like, and many do since most people do not really comprehend reserves, but it's not really a reserve item at all.

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