MARCH 1 ST. 2010
Energy Squared Comparison:
Aluminum Replacement vs. COPALUM Covered Bridge Condominium Association
This report summarizes and compares two methods for minimizing the risks associated with the aluminum conductors that were installed in many buildings within the Covered Bridge Condominium development in Manalapan, NJ. The two methods that are considered in this report are aluminum replacement and COPALUM. Aluminum Replacement vs COPALUM Summary:
I) Aluminum replacement is the complete removal and replacement of all aluminum conductors in the building with accepted copper wiring.
2) COPALUM is the approved process of splicing copper conductors onto every aluminum wire so that all terminations are made in copper. Apart from the complete removal of the aluminum wire, COPALUM is the only method of "pigtailing" considered by the U.S. Consumer Product Safety commission (CPSC) to be a permanent repair.
Aluminum Replacement vs COPALUM Comparison:
a) Aluminum wire replacement is a one time expense.
b) COPALUM is approximately 2/3 of the replacement cost, however, the splicing process will have to be performed with any aluminum circuits used, whenever electrical work is carried out in the building.
c) COPALUM can only be performed by a trained and Tyco approved electrician.
COPALUM connectors are applied using a special tool with a pair of dies that are costly to purchase or rent. This means that future work in the home, which could have been done by a small local electrical firm- at a lower cost, will now have to be performed by an approved, trained specialist with the resources to purchase or rent the necessary power driven tool. Finding a qualified Tyco electrician will be more difficult and expensive.
d) Although there are many ways of attaching pigtails onto the aluminum wire, COPALUM is the only approved method accepted by part of the insurance industry at this time.
e) Aluminum replacement is recognized by all insurance companies, whereas COPALUM is currently recognized by only a percentage of the insurance companies and there is always the chance of loosing that acceptance based upon the varying requirements of the insurance company in the future.
f) Aluminum replacement is regarded as the most certain corrective action for all homes and buildings.
g) COPALUM is only effective if the connections between the aluminum wires and the copper pigtails are extremely reliable. It is also necessary to carry out this process at every termination point. In our opinion, there is a greater chance of miss-application with COPALUM.
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COVERED BRIDGE CONDOMINIUM ASSOCIATION, INC.
POLICY RESOLUTION NO.
RELATING TO REMEDIATION OF ALUMINUM WIRING IN UNITS
WHEREAS, By-Laws Sections 5-1 and 5-10 provide that the affairs of Covered Bridge
Condominium Association, Inc. ("Association") shall be governed by the Board of Trustees and that
the Board of Trustees shall have and exercise all lawful powers and duties necessary for the proper
conduct and administration of the affairs of the Association and for the operation and maintenance
of a residential Condominium project; and
WHEREAS, pursuant to the Master Deed all portions of the premises within the community
which are not part of the dwelling units ("Units") shall be common elements; and
WHEREAS, the Master Deed defines each unit such that "[ n]o pipes, wires, conduits or other
public utility lines or installations constituting a part of the overall systems designed for the service
of any particular unit or multi-unit dwelling building ... which are not removable without
jeopardizing the soundness, safety or usefulness of the remainder of the building, shall be deemed
to be a part of any dwelling unit"; and
WHEREAS, the aluminum wiring serving each unit can be removed without jeopardizing
the soundness, safety or usefulness of the remainder of the building;
WHEREAS, the Master Deed, in defining the common property of the Association, excludes
any part of the units; and
WHEREAS, the Master Deed provides that unit owners are bound to contribute toward the
expenses of administration, maintenance, repair and replacement of the common elements; and WHEREAS, the Master Deed provides that the Association shall have the irrevocable right to access to each unit from time to time during reasonable hours as may be necessary for the maintenance, repair, or replacement of the common elements or of making emergency repairs necessary to prevent damage to the common elements or to another dwelling unit; and
WHEREAS, the Master Deed provides that unit owners and other occupants of units shall comply with the Master Deed, By-Laws, and Rules and Regulations of the Association ("Governing Documents"); and
WHEREAS, By-Laws Section 4-1 provides that upon notice to a unit owner "of a condition that is the obligation of the unit owner to repair and maintain which would affect his/her property and the property of others, each member shall perform promptly and at his/her own risk, cost and expense, all maintenance and repair work with respect to the portion of each unit owned by him/her which does not comprise a part of the cornmon elements and which, if omitted, would adversely affect or jeopardize the safety of the building in which his/her unit is located or any part or parts thereof belonging in whole or in part to other members. Each member shall be liable for any damages, liabilities costs or expenses, including attorney's fees, caused by or arising out of his /her failure to promptly perform any such maintenance and repair work after due notice"; and
WHEREAS, By-Laws Section 4-5 provides that in the event a unit owner fails to pay amounts due to the Association, "all such charges and expenses chargeable to a member and his/her dwelling unit shall constitute a lien against the said unit in favor ofthe Association" and that in the event of foreclosure of such lien "the Association shall, in addition to the amount due, be entitled to recover reasonable expenses of the action including court costs, attorney's fees, interest and disbursements and/or any deficiency"; and
WHEREAS, By-Laws Section 4-11 provides that unit owners shan comply strictly with the Governing Documents and that "[ f]ailure to correct any violations after due notice, shall be grounds for a civil action instituted by the Association to recover sums due for damages or injunctive relief, or both, plus court costs, attorney's fees, interest and disbursement and/or any deficiencies"; and
WHEREAS, By-Laws Section 5-1 0(0) provides that the Board has the power to "make and enforce compliance with such Rules and Regulations relative to the operation, use and occupancy of the dwellilng units, common elements and Association facilities" and that such "Rules and Regulations when approved by appropriate resolutions, shall be binding on the owner and occupant of dwelling units, their successors in title and assigns"; and
WHEREAS, By-Laws Section 5-1O(p-l) provides that the Association must maintain insurance insuring the buildings containing the units and common elements therein; and WHEREAS, an engineering firm retained by the Association ("Engineer") has confirmed that at least some of the individual dwelling units within the Association were constructed using aluminum conductors for both feeder and branch electrical circuits; and
WHEREAS, the Engineer has opined that the aluminum conductors represent a serious potential fire hazard for the buildings because the alloy used has a tendency to work itselfloose from its lugs causing areas of extreme heat or arcing; and
WHEREAS, the Engineer has opined that in order to eliminate the potential fire hazard resulting from the aluminum conductors, the aluminum wiring must be removed from the units and replaced with copper conductors; and
WHEREAS, the Association has determined that buildings 22 through 85 contain units with the aluminum wiring issue; and WHEREAS, until December 3], 2009, the Association maintained property and general insurance ("Insurance"); and
WHEREAS, in attempting to renew the Insurance, the Association was advised by its existing insurance company that no further coverage could be extended until the aluminum wiring issue was satisfactorily addressed; and
WHEREAS, in seeking Insurance through other carriers, the Association was advised that in light of the aluminum wiring issue, coverage could only be provided at a substantial increase in annual premiums and that securing future coverage was uncertain; and
WHEREAS, all unit owners pay for Insurance premiums as a common expense; and WHEREAS, the Board of Trustees determined that to protect the personal safety of residents of the Association, the individual units and personal property contained therein, the common property, and to avoid being unable to secure Insurance, that the aluminum wiring issue had to be addressed by the unit owners; and
WHEREAS, for the benefit of the Association and of the individual unit owners and other residents the Board of Trustees deems'it necessary to require unit owners to remediate the aluminum wiring issues within their individual units and for the Association to remediate the aluminum wiring issues within the common property.
NOW, THEREFORE, BE IT RESOLVED, that the foJJowing shall be adopted:
A. REMEDIATION OF ALUMINUM WIRING IN UNITS
I. Unit owners with units located in buildings 22 through 85 shall remediate the
aluminum wiring issue at their sole cost and expense. 2. The aluminum wiring issue must be remediated on or before May 3, 2010.
Remediation shall include completion of all work, satisfactory final inspection by the Township of Manalpan, and submission of all approvals and paperwork to the Association.
3. Unit owners shall have the following options for performing the aluminum wiring
remediation:
a. By Electrical Contractor Chosen by Unit Owner. At the unit owner's option,
the aluminum wiring remediation may be performed by a licensed electrical contractor chosen by the unit owner. By choosing this option, the unit owner will ensure that the work is performed in accordance with the Association's specifications, have it satisfactorily inspected by the Township of Manalapan, and to provide all approvals to the Association. In order to choose this option, the unit owner must return the following to the Association on or before February 1, 2010:
(1) A signed and dated Member Determination Form.
(2) A signed and dated Electrical Contractor Form with the name and
license number of the licensed electrical contractor chosen.
(3) An insurance certificate from the electrical contractor naming the
Association as an additional insured (not just a certificate holder).
b. By the Association's Electrical Contractor. At the unit owner's option, the
aluminum wiring remediation may be performed by the Association's electrical contractor. By choosing this option, the unit owner consents to being billed for the work by the Association and pay the Association the costs incurred by the Association's contractor. Because the Association intends to obtain a loan for the work, the unit owner will also agree to pay any proportionate loan costs. In order to choose this option, the unit oWner must return the following to the Association on or before February 1,2010: (1) A signed and dated Member Determination Form.
B. REMEDIATION OF ALUMINUM WIRING IN COMMON PROPERTY
A. The Association shall ensure that all aluminum wiring in common property is
remediated by its electrical contractor on or before June 30, 2010. Notwithstanding this, the Association shall make remediation of residential units a priority such that if the common property cannot be remediated by this deadline, it shall be remediated as soon thereafter as reasonably possible.
C. ENFORCEMENT.
1. All unit owners who have not returned a properly completed Member Determination
Form by February 1, 2010 or who fail to have the work done as required shall be deemed in violation of this Resolution and the following actions shall be taken:
a. First Notice. A notice shall be mailed (via certified mail return receipt
required) to each unit owner in violation. The first notice shall state the nature of the violation, that the violation must be corrected within ten days or further action will be taken which may include the imposition of a $100.00 penalty, and that the unit owner must contact the management office if he does not understand what is required.
b. Second Notice. A second notice shall be mailed (via certified mail return
receipt required) to each unit owner who remains in violation. The second notice shall reference the prior notice, state the nature of the violation, that a $100.00 penalty has been imposed for failure to comply (if applicable), that if the" violation is not corrected within five days of the date of the letter, (1) A signed and dated Member Determination Form. that the Association shall perform the work and charge all costs to the unit owner as set forth in Paragraph A(3)(b) of this Resolution.
2. Unit owners who fail to cooperate with access to the unit to perform the work shall
be subject to a $100.00 penalty and any costs incurred by the Association. Repeated failure to cooperate shall result in the Association entering the unit by a locksmith to perform the work.
D. MISCELLANEOUS
1. Any monies due pursuant to this Resolution shall be collected by the Association in
the same manner as Association assessments. Any monetary penalties imposed shall be in accordance with the Association's alternate dispute resolution policy.
2. Notwithstanding any of the above, the Association may exercise all rights and
remedies avai1able to it at law, in equity and/or pursuant to its Master Deed and By-Laws.
3. Should any provision hereofbe determined to be invalid, the remaining provisions
hereof shall remain in full force and effect.
4. Any provision contained within any previously adopted resolution of the Association,
which conflicts with any provisions set forth herein, shall be deemed void and the provision contained herein shall govern. 
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Dear Carolee and members of the Board
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Re: Aluminum Wiring Hazard MiddleOak Insurance
Replace with copper or "copalum" repair Time constraints
JACOBSON GOLDFARB SCOTT INSURANCE
With respect to the aluminum electrical wiring hazards in residential buildings, standard insurance company markets are normally only available after the acceptable method of repair or replacementwith
copper wiring is completed. We were able to negotiate with the underwriters of MiddleOak (Holyoke Mutual Insurance Company in Salem) to make an a exception to this underwriting standard for your community in good faith that you would diligently embrace the reduction or elimination of this fire and life safety hazard.
You may recall initially the MiddleOak insurance underwriters agreed to 3 months time period for the completion of the aluminum wiring hazard remedy in all units using the "copalum" repair method. Subsequently, these underwriters agreed to extend the completion date of all units to 2 years solely for the remedy of replacing the aluminum wiring with copper wiring.
Based upon the fact that some units might use the "copalum" repair while other units might replace the aluminum wiring with copper wiring, MiddleOak underwriters agree to the following time period for completion of this project:
It's important to note that within the next few weeks we must provide a report to the underwriters with the specific addresses of the units and buildings identified. Thereafter we must provide to the underwriters a monthly report of the progress identifying the addresses of units completed, date completed, scope of work in same and approval date by Manalapan code official. I hope this helps to explain the time allotted for completion. Please contact me (732-837-1015) with any questions. Best regards
Sincerly,
Nick Ferrara,AAI
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OPTION: COPALUM CONNECTORS
The use of COP ALUM connector to connect short copper conductors to the aluminum wire on every branch circuit in the unit will be accepted as an alternate to the complete replacement listed above. This work must be done by an approved electrician specialized in the COPALUM crimp connector procedure developed by the manufacturer. Only connectors approved by the U. S. Consumer Product Safety Commission are acceptable, and will need to be carried out in full compliance with the manufacturers recommendation and procedures The electrical contractor must use the approved cold weld crimp connector tool and be schooled in its correct use and application. The same process will need to be carried out indefinitely when any electrical work is carried out in any of the affected aluminum wiring in the effected condominium'units. :.
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