COVERED BRIDGE

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MINUTES OF THE BOARD OF TRUSTEES COVERED BRIDGE CONDOMINIUM ASSOCIATION OPEN MEETING JANUARY 12, 2010

Present: Carolee Trifon, President; Paul Profeta, Vice President; Hal Lessner, Secretary; Sid Leveson, Treasurer; Sid Alpert, Trustee; Sally Hemlan, Trustee; Rich Parachini, Trustee

Guest Speakers: Chris Florio, Esq. of Stark and Stark; Allan Samuels, Leeed AP of Energy Squared LLC.

Bill Lubeck, General Manager ofT-Tech Electric, LLC.

1. This special meeting to discuss aluminum wiring was called to order at 7:00 pm. The ballroom was packed with residents with aluminum wiring in their units, their family members, and other unit owners.

2. Carolee Trifon presented an overviewofthe insurance and safety situation and the decisions made by the Trustees, including the requirement that unit owners with aluminum wiring must pay for remediation and that replacing aluminum with copper wiring would be required. The Trustees have obtained two legal opinions and an engineer's report, and have sought insurance from various companies. A certified letter was sent to unit owners in buildings 22-85 indicating that they may have aluminum wiring and asking them to infoml the Association in writing as to whether they wanted the remediation done by the Association's electrician or their own. Ground rules for questions were established.

3. Paul Profeta described aluminum wiring replacement and the timetable. He explained that the Federal Pacific circuit breaker boxes, which are also a fire hazard, would be replaced at the same time as rewiring.

4. Chris Florio, Esq. explained that the decision that unit owners must pay for aluminum wiring remediation was based on our governing documents. There is no case law on point. He read sections from the official copy ofthe Master Deed on file with Monmouth County. He explained that the Association had the right to enter units to do the remedia­tion and to charge the unit owners.

5. Allan Samuels explained the reasons for the safety risk with aluminum wiring. Replacing it with copper wiring is the safest option. While the risk is greatest with branch circuits, there is also risk with dedicated wiring.

6. T- Tech presented slides to show how the wiring would be put behind crown molding, which would lower the cost of rewiring (especially in lower units), reduce disruption to units and enhance unit appearance. The work would be done in a couple of days. The combination of rewiring and using crown molding would minimize repainting and damage to any wallpaper or paneling. Without the use of crown molding, the cost would be much higher for lower units.

7. Questions from the audience were answered by the guest speakers and by Carolee Trifon, Paul Profeta and Sid Leveson.

8. Chris Florio, Esq. responded to a unit owner that he represents the corporation (CBCA Inc.), not the unit-own-

ers or the Trustees.

9. The Trustees acknowledged that aluminum wiring-does not violate Federal, State or Township requirements. 10. Our former insurance company, the largest condo insurer, cancelled us because of aluminum wiring. They do not accept Copalum as remediation.

11. Paul Profeta noted that the cost of Copalum, the next best alternative, was two-thirds that of rewiring with cop­per. There would still be some risk, the repair would be more disruptive, and the Township inspector could find other issues in the condo unit. The insurance market is soft today, and there is no assurance that Copalum would be accepted in a tight market. Pigtailing was accepted by our fOmler insurance company until last year.

12. Sid Leveson reported that the State Insurance Department only requires insurance companies to. file rates and other infomlation. It does not scrutinize their charges.

13. Jerry Reiff, a unit owner who previously had his own insurance agency, had been insurance advisor to the Trust­ees until 2 weeks earlier. He had advised the Trustees that there was a high risk that Copalum would not be accepted in a couple of years in a tighter insurance market. There was also a substantial risk that other insurance companies would follow the largest condo insurer, which no longer accepts Copalum. Now, as a unit owner who would have to pay for rewiring, he said that he "changed his mind." He stated that several insurance companies he approached on our behalf had turned us down because of aluminum wiring, but a few would accept us after rewiring with copper or remediation with Copalum was completed.

14. Some residents were concerned that they cannot afford to pay for remediation of aluminum wiring. Sid Leveson indicated that the Trustees were-seeking a 2-year loan that would give unit owners the option of having time to pay. Carolee Trifon assured the audience that no one would be thrown out of their unit because of inability to pay.

15. There is aluminum wiring in the clubhouse as well. Allan Samuels explained that the danger is greatest in condo units where people are sleeping.

16. Many residents said that all unit owners should share the costs of remediating aluminum wiring, which 2 lawyers told the Trustees could not be done. Many residents did not want the aluminum wiring remediation done at all, because they did not want to pay anything. A few threatened legal action.

         17. The meeting ended at 11 :00 PM.                                                                                                  

                                                                                                          Sid Leveson, Trustee