Jay Peak Village Condo Association Meeting June 4

Jay Peak Village Condo Association Meeting June 4, 2016 1 © 2009 2016 Forrester Jay Peak Research, Village Condo Inc. Association Reproduction Prohibited

Introducing the Board § Alan Marquis (President) V 119 § Todd Cestari (Vice President) V 427 § Paul Clifford (Treasurer) V 435 & V 436 § John Mc. Carthy (Secretary) V 131 § Francois Brissette V 358 § Don Meskie V 111 § Paul Waxlax V 454 2 © 2016 Jay Peak Village Condo Association

Agenda § Opening words § Budget status § Wood rot situation - timeline - repair plans - summer 2016 - funding options § R&M 2015 -2016 and 2016 -2017 § Upcoming meeting (budget, election of officers) § Insurance § Miscellaneous - Boilers, windows, Q&A 3 © 2016 Jay Peak Village Condo Association

Agenda § Opening words §Budget status § Wood rot situation - timeline - repair plans - summer 2016 - funding options (very limited) § R&M 2015 -2016 and 2016 -2017 § Upcoming meeting (budget, election of officers) § Insurance 4 © 2016 Jay Peak Village Condo Association

Evolution of fees 1000 900 800 cost (000)$ 700 600 500 Total fees Management fees 400 Inflation 300 200 100 5 -2 01 6 5 20 15 -2 01 4 20 14 -2 01 3 20 13 -2 01 20 12 -2 01 2 1 © 2016 Jay Peak Village Condo Association 20 11 -2 01 0 20 10 -2 01 9 20 09 -2 00 20 08 20 07 -2 00 8 0

Increase in fees 450. 00 400. 00 Cumulative % increase 350. 00 300. 00 250. 00 Total fees 200. 00 Management fees Inflation 150. 00 100. 00 50. 00 6 © 2016 Jay Peak Village Condo Association -2 01 6 5 20 15 -2 01 20 14 -2 01 4 3 20 13 -2 01 2 20 12 -2 01 20 11 0 20 1 -2 01 9 20 09 -2 00 20 08 20 0 720 08 0. 00

Agenda § Opening words § Budget status § Wood rot situation - timeline - repair plans - summer 2016 - funding options (very limited) § R&M 2015 -2016 and 2016 -2017 § Upcoming meeting (budget, election of officers) § Insurance 7 © 2016 Jay Peak Village Condo Association

Timeline – technical expertise § 2011 Conrad Report - building by building study of siding, roofs, windows & trim Conclusion: wood rot exists in chimney chases, & siding needs preventative painting. § 2012 Skip Ciccarelli (Construction Consultant) "attachment of deck ledgers allows water to penetrate Conclusion: "best practices were not followed" § 2013 Extensive wood rot & structural damage discovered in 301 -308, VA hired Heritage to repair the problem, and commissioned a survey of all buildings including moisture readings and core samples. Conclusion: widespread rot exists, cost to repair $750, 000 8 © 2016 Jay Peak Village Condo Association

Timeline – technical expertise § 2014 De. Wolfe Engineering report Report to Board & AGM - "water infiltration is a severe problem, causing severe structural damage. Lack of flashing is a design flaw or contractor omission". § 2015 Stantec Engineering (Ted Hergl) ‘The cause of wood rot is a direct result of a lack of effective flashings at wall openings, plane changes and protrusions throughout the construction’ 9 © 2016 Jay Peak Village Condo Association

301 -308 10 © 2016 Jay Peak Village Condo Association

V 120 11 © 2016 Jay Peak Village Condo Association

V 131 12 © 2016 Jay Peak Village Condo Association

V 331 -338 13 © 2016 Jay Peak Village Condo Association

V 337 14 © 2016 Jay Peak Village Condo Association

V 452 15 © 2016 Jay Peak Village Condo Association

V 302 16 © 2016 Jay Peak Village Condo Association

301 -308 17 © 2016 Jay Peak Village Condo Association

V 454 18 © 2016 Jay Peak Village Condo Association

Technical conclusions § Severe waterproofing deficiencies due to lack of proper flashing § Important construction defect § Lack of construction oversight and construction expertise Jay Peak’s position § Most of the damages due to improper gutter maintenance 19 © 2016 Jay Peak Village Condo Association

Timeline – settlement discussions § 2013 – 2014 numerous meetings about building codes, deck attachment details and structural drawings § 2014 - Board offered Jay Peak to contribute 20% towards repair costs § 2014 - Clerk-of-works is hired to allocate responsibility § 2014 - Board offers to hire Building Sciences Corp as a binding arbitrator – Jay Peak refuses § 2015 The Assn hires Attorney Sandy Fead to help out with negociating a settlement 20 © 2016 Jay Peak Village Condo Association

Timeline – settlement discussions § 2015 An offer is made to Jay Peak to go through mediation, Jay Peak refuses § 2015 October - Association meeting – motion for mediation supported by homeowners - Jay Peak refuses § 2016 January - Jay Peak signs an agreement to contribute $125, 000 towards 2015 remediation costs. The money never comes § 2016 April 15 meeting is scheduled with Jay Peak to try to reach a compromise to avoid admin|legal costs. Meeting cancelled when SEC investigation starts (Ap. 13) § 2016 April 29 Meeting with Steve Olsen (CEO of LHR) 21 © 2016 Jay Peak Village Condo Association

Completed repairs § 441 -448 137 -140 § 451 -458 145 -148 § 117 -120 331 -338 § 141 -144 361 -368 § 301 -308 371 -378 § 341 -348 381 -388 § 201 -202 § 129 -132 § 101 -104 22 © 2016 Jay Peak Village Condo Association

Planned for this summer (pending funding) 23 © 2016 Jay Peak Village Condo Association

Wood Rot Funding - We cannot wait for a budget to be finalized; - The board will ask for a 250 k special assessment through a special online meeting to cover work for this summer; - All remaining units will be finished in 2017; 24 © 2016 Jay Peak Village Condo Association

Agenda §R&M 2015 -16 and 2016 -17 § Upcoming meeting (budget, election of officers) § Insurance § Miscellaneous - Boilers, windows, Q&A 25 © 2016 Jay Peak Village Condo Association

Upcoming meetings § June – special online meeting to vote on aspecial assessment § Late summer or fall – Budget meeting, new officers 26 © 2016 Jay Peak Village Condo Association

Remaining agenda § Insurance § Miscellaneous - Boilers, windows, Q&A 27 © 2016 Jay Peak Village Condo Association