Joelle Varnum GRAND SUMMIT CONDO OWNERS ASSOCIATION
May 17, 2024
Dear Fellow Owners,
Nearly 4 weeks ago, on April 20, 2024, the Grand Summit Condo Owners Association Board held the annual owners budget meeting where the FY25 budget was ratified. (FY25 is 5/1/24 to 4/30/25.) This annual budget meeting occurs every April, and a ratification vote is the primary purpose of the meeting.
Since the budget was sent to owners in March, there has been much discussion about the budget, the organization’s bylaws and Declaration of Condo, the reasons for the increase in quarterly dues for this fiscal year, and the cost associated with the proposed HVAC replacement. In response to questions and concerns, the board and Sunday River staff have worked hard to provide all owners with factual documentation, historical data, reserve study recommendations from 2015 & 2022, and 3 opportunities for owners to attend / participate in information sessions.
In total, 6 documents were shared, approximately 200 emails were responded to, over 55 phone conversations took place with owners, and 7+ hours of open discussion on 3 Zoom sessions were held. The association’s legal counsel was present for the Zoom sessions to respond to questions related to bylaws, Declaration of Condo, the Maine Condominium Act, etc.
We hope that these efforts and all this information has answered questions and provided clarity about the annual budget and the legal structure and processes of the association. We also hope it has helped restore trust and confidence in the board, while dispelling rumors and false perceptions from owners who suspected illegal behavior or bad intent.
The board also reached out with a straw poll survey to gather information from as many deeded owners as possible about their preference for how to fund the HVAC replacement in the next year. The results show that a majority of participants support the FY25 budget that includes a $2.1 million set aside for HVAC. This support increases when ranked choice voting is applied. The results of the straw poll are provided in the table that follows.
| Straw Poll Results: May 2024 | ||||
| OPTION A Keep HVAC at $2.1 M 103% dues increase | OPTION B Reduce HVAC to $1.0 M 58% dues increase | OPTION C Eliminate HVAC 22% dues increase | LEFT BLANK by survey participant | |
| Grand totals, with 425 deeded units* participating (n=425) | ||||
| 1st choice votes | 223 | 95 | 101 | 6 |
| Percentage | 52.5% | 22.3% | 23.8% | 1.4% |
| Ranked choice totals, after elimination of option receiving the least 1st choice votes | ||||
| Eliminate Option B | 267 | XX | 148 | 10 |
| (and redistribute all Option B voters to their 2nd choice) | 62.8% | 0.0% | 34.8% | 2.4% |
| *There are 677 total residential units, which means 62.8% of all deeded unit owners participated in this straw poll (=425/677) | ||||
The board is very much aware that we will never arrive at 100% agreement among all deeded owners on any one issue. We understand and appreciate the concerns some owners have expressed. The board also has a fiduciary responsibility to maintain this property, built 32 years ago, so it can continue to be a place of enjoyment for decades to come.
We know the need to replace the HVAC is not a surprise to anyone. We have managed to stretch the life of this infrastructure beyond its expected lifespan. Prolonging its replacement presents numerous risky variables that could result in costly repairs, or loss of revenue if rooms or wings go offline as a result of system failure or individual unit failure, etc.
At this time the board needs to determine the association’s path forward. With consideration for all that has transpired, as well as the results of the straw poll, it is clear that the majority of deeded owners who have chosen to participate over the past six weeks support moving forward with the current budget. The Board feels it is prudent to continue with the current budget that designates $2.1 million for a full HVAC replacement.
FY25 first quarter dues statements will be sent out in the days ahead.
What’s next:
As the board moves forward, we are committed to providing owners with more frequent and informative communications regarding the progress of the HVAC project. In the short term this will be done as follows:
- Continue to provide information to all deeded owners and post it on the Owners’ Website for easy access.
- Create a video introducing Greg Shinberg of Shinberg Consulting, the Project Manager/Owners’ Representative hired by the Board, who will provide information to owners about the process underway and next steps on the HVAC project.
- Provide a more definitive report by the end of summer which will include details of the new HVAC system including the scope of work, costs, and timeline for work to be completed.
The board sincerely appreciates all the owners who have engaged. We will continue to share information as the HVAC project moves ahead. We will also share information about revisions to current model room design, value engineering of room renovations, and draft timeline and financing options as more information is developed in the months ahead.
We look forward to moving ahead together!
Grand Summit Condo Owners Association Executive Board
PS For those who participated in the straw poll and shared their preference for receipt of SCOA communications, we will begin to update records next week. The vast majority would like email, but some folks will switch to US Mail. Note: If you indicated you would like both mail and email, or you indicated you’d like to get certain items in the mail and other items via email, we need to let you know that all owners must select one preference. We will be in touch with all affected by this, so please don’t respond to this communication. Thanks!