May 2023 GTS Engineering Update

 

November 2022 Geotechnical Report

Attached is the latest report from Geotechnical Testing Services. In summary, minor movement (less than 1/4") is noted on the south end of the berm next to the hotel property and restaurant.  Otherwise the majority of the berm appears to be stable.  The design report necessary for constructing the final version 1.5 of the berm is expected "by year end " (hopefully this year).   While the city conducts a peer review of the report, we will seek construction bids and will work with the three affected property owners who will need to agree to share the construction costs and grant any easements that may be required.  With respect to the condos, we are being told by the engineers that Building L will most likely need to be demolished, while Building M may possibly be saved, leveled and repaired.  This is subject to approvals and financial feasibility.   We will have more information when the next report is issued.

Link to Nov 2022 GTS Report

We appreciate the patience and cooperation of all stakeholders as we continue to work towards the resolution of a very long and difficult natural disaster.  

April 2022 Progress Report

The following link provides information regarding the geotechnical soils testing results as reported in April, 2022:

Link to April, 2022 update letter

In summary, the berm is performing well but needs further strengthening on the southern side. The balance of the berm, including buildings L and M, show no movement which is good news.  A final report and engineering design to finalize the phase two construction of the berm with a safety factor of 1.5 is expected sometime in November, 2022.  Bids will be obtained for construction costs and if all stakeholders agree to participate, work on the berm could begin early 2023.  

In April, the City of St. George without warning issued orders to demolish buildings L & M, the old Dairy Queen, and the Knights Inn properties.  In meeting with city officials, the hotel owner agreed to demolish the entire hotel building, which was accomplished in September.   The city agreed to stay the demolition order on the other two properties subject to receipt by year end of a the above mentioned geotechnical design to finalize stabilization of the berm and prove that the subject buildings are not a danger to life or property.   All stakeholders are waiting on the engineers to complete their report and design recommendations which hopefully will be accomplished sometime in November.  

June 2020 Report

Testing during the Fall of 2019 and Spring of 2020 revealed slight movement in the slope indicating that further strengthening of the berm will be necessary.  Also, another inclinometer well will need to be drilled to allow for testing next to the M building.  Measurements were taken inside several of the units in M building which confirmed that the rear of the building has tilted and the entire building is sloping about 5 inches from front to back.  If the building can be repaired someday the foundations may need to be raised with supporting piers and leveled.  We are awaiting a further geotechnical report and design requirements to determine what will be required to strengthen the berm and increase the level of safety to meet the goal of 1.5.    After determining the feasibility, cost of construction and obtaining the financial participation among all affected parties, further enlargement of the berm may commence.  Continued testing will be required approximately every six months until such time as the berm is deemed stable and the slope is rendered safe.   Below is the latest update letter from the engineering company involved in the project:

August 2019 Report

There was some concern while analyzing the test data over the last 18 months that some movement is occurring in the slope and that the berm is not performing as designed.   Additional testing on the stability of the berm was performed during March and June which confirmed that the berm has moved slightly,  probably due to the unusually wet winter and spring this year.   The original engineering planned for a level of safety of 1.25 and the new data indicates that the berm is not to that standard.  The ultimate goal is to reach a level of safety of 1.5 (50% more that what may be required to stabilize the slope).  Currently GTS is designing modifications to the berm that would hopefully accomplish the goal of completely stabilizing the affected slope.   Once the design is available it will be reviewed by the city and we will obtain cost estimates and determine the financial feasibility of making additional changes to the berm.     

March 2019 Update

I met with Chris Volksen of Geotechnical Testing Services this week for an update on his response to questions from the City and AGEC regarding his most recent report.  The report concluded that the slope appeared to be stable based on nine tests made over the past five years.  However, there were some questions from the City consultant, Jim Nordquist of AGEC, who reviewed the report and requested more information. 

GTS performed additional tests this month and discovered that there may be some slight movement after all.  Attached is a graph of data from one of five inclinometer wells, this one from a well located within the berm itself.  If you compare the test dates, it shows both positive and negative movement, back and forth, which can be attributed to instrument inconsistency.  The measuring instrument is extremely sensitive and it's not unusual to have slight inconsistencies among tests. The positive/negative differences in the early readings were averaged and the conclusion was that the slope had moved very little.  
The concern now is that the three most recent tests over the last 18 months for this particular well show a possible trend (all positive, no negative data points) indicating the possibility of slope instability.  The graph indicates movement of about 1/8 inch.  Very small but it could indicate some instability.   There is a blockage in one of the well shafts near N building about 40 feet down and Chris is trying to locate a camera this week to find out if the shaft has separated (minor inconvenience) or is sheared (major problem which could be proof of substantial earth movement).  Chris has yet to plot the other three inclinometer data readings and will compare the data from those locations to see if there is a similar trend.

It may be necessary to wait another six months (we have become very accustomed to waiting) and conduct additional tests.   If the readings indicate a negative direction, as in earlier tests, those results would be averaged with prior data and would again support the conclusion that the slope is stable.  If future readings show a continued positive trend the conclusion may be that the slope is still moving, if ever so slightly.  Further work to mitigate the problem may be necessary.  The engineers are being extra cautious as no one wants to declare the problem solved and spend a lot of money fixing things up, only to discover that the slope is still unstable. At present the test results remain somewhat inconclusive and further testing may be required to increase the confidence level in the conclusions and recommendations.   

 

October 2018 Update - Finally!

After many years of waiting we finally have evidence that justifies the effort and expense to halt the small landslide movement that has affected property owners.   Chris Volksen of GTS (Geotechnical Testing Services) details in his recently released report the results of nearly six years of monitoring and testing of the berm that was constructed in 2012 for the purpose of halting the earth movement that affected 20 home owners at Gardens South and the two adjoining commercial properties.   The report concludes that the earth movement was successfully halted as a result of the berm construction. 

The report also provides engineering recommendations to further strengthen the berm by constructing a keyway and adding additional weight to the berm, thus improving the level of safety (fudge factor) from 1.25 as originally designed to more than 1.5 as per code.   A method to make the berm permanent and protect the surface from erosion was included in the report along with specific designs from a structural engineer.   In addition to the shot-crete method of protection as detailed in the report,  GTS is currently in the process of recommending another option for protecting the face of the berm by stacking additional concrete retaining blocks like those that already are in place at the base of the berm.  This method may actually prove to be more permanent and aesthetically pleasing than using shot-crete.  

The report is currently being reviewed by the City of St. George and their representatives.   Meanwhile, bids to determine the costs to implement the recommended modifications to the berm are also being being obtained.  If approved by the City and property owners, construction may begin soon to make the berm stronger and permanently protect it from erosion.  Once the berm is deemed safe and made permanent, it is the intention of the property owners to move forward to repair or replace, if feasible, the affected improvements in order to regain the use of their properties.   The timeframe, cost and feasibility to do so has yet to be determined but we are starting to see progress and resolution to this disaster that has affected so many people.

A copy of the report is available for review at this link

March 2017 Update

It has been four and a half years since the construction of the berm designed to halt the limited soils movement affecting only two buildings within Gardens South Condos and the hotel and restaurant located below.    During the past 18 months Geotechnical Testing Services (GTS) has conducted three more inclinometer tests to monitor the stability of the specific slide area that affects only buildings L & M. at Gardens South.   All other buildings with the project appear  to be unaffected as evidenced by 30 years of occupancy.   We have yet to receive an official written analysis but the preliminary data from GTS is very encouraging and indicates that the berm is quite stable and has been successful in halting the slide.  We will post the latest report once we receive it.

GTS is now finalizing it's recommendations to make the berm a permanent structure and to increase the safety factor so that the affected properties can be repaired or replaced.   The preliminary plan may involve digging below the toe of the berm behind the Dairy Queen building and installing several layers of geo-grid to further stabilize the slide plane and raise the safety factor from 1.25 to over 1.5 which meets current building codes.   The design will most likely also require spraying a concrete gunite coating over the face of the berm to prevent future erosion or sun damage to the geo-grid.   Once we have the final design recommendations we will meet with the adjoining property owners to discuss sharing the cost.  Then hopefully we can then move forward with the final construction involving the berm.

Gardens South Condos will then determine the feasibility of repairing buildings L & M.  We will commission a design plan from both a structural and geo-technical engineer that can be approved by the City.   Once a design solution is approved we can then obtain construction bids and determine the cost feasibility of making the repairs.   Our preliminary estimates are encouraging and we are  optimistic that the two buildings can be eventually repaired within the budget resources currently forecasted.  

In the meantime, other improvements to Gardens South are being made.  During the past year Gardens South HOA was able to pay off the balance of the loan owed to the City for the construction of the berm in 2012.  The blanket lien was removed by the City providing clear title for all units not affected by the slide.   The HOA is financially healthy and is setting aside additional funds to make other capital improvements to the project, including refurbishing the 30 year old pool and installing  new high speed fiber optic internet service to each unit.   We will be one of the first condo projects in St. George to enjoy fast fiber optic service (no copper) with speeds up to 1 GB, a $90/mo value, which will be included in the current HOA fees.   We hope to have these improvements completed by May.

September 2015 Update

Further testing was conducted by Geotechnical Testing Services during the summer of 2015 to determine if any further earth movement could be detected in the area affecting buildings  L & M.  The summary letter of their findings is posted below.   The HOA board will continue to monitor the situation and seek counsel as to what the future options might be for the community and the homeowners directly affected.

January 29, 2015 Update

If you are new to Gardens South Condominiums, this blog is a running history of the challenges created by a small landslide that affected 20 of the 111 total units in the community, as well as neighboring properties (Dairy Queen, hotel, etc.).   Only buildings L & M within the Gardens South project have been affected.  All of the other buildings in Gardens South have not experienced any structural damage related to the slide and appear to be safe.    In late 2012 an earthen berm of nearly 60,000 tons of soil was constructed at the base of the slide.    It is our hope that the berm, which was designed to counter balance and stabilize the 400 foot wide landslide area, will perform as planned.  

Below is the latest communication from the geotechnical engineer tasked with monitoring movements in the slope.   Both the city,  the HOA, and the homeowners who were forced out of their condos are waiting to determine if the site can be stabilized enough to justify making repairs to the damaged buildings so they can be inhabited once again.    

It takes a couple of years for the dirt to fully settle and determine if there has been further slide activity which may pose a threat.   Some slight movement has been detected which is most likely caused by normal settling of the berm, but overall the berm, so far, appears to be doing what it was designed to do.   One major concern however was a recent break in the main sewer trunk that services the residents of the unaffected building N as well as M.   This was most likely caused by the slide prior to the construction of the berm and it's not certain how long the pipe was broken.   The HOA spent nearly $50,000 in November to construct a sewage pumping system to service building N.  Although building M is not currently connected to any city utilities, including sewer, the pump system is designed with enough capacity to also service building M if and when it can be repaired.

The geotechnical firm will conduct another reading in June, 2015 and hopefully by then they should have enough history and information to make a recommendation as to whether or not the site is safe so that a determination as to the economic feasibility of reconstruction can be made.    In the meantime, all we can do is continue to wait, monitor and hope that the slide has been sufficiently stabilized as a result of the efforts made so far.

If you have visited Gardens South recently, you will notice that the community is looking much better.   All of the asphalt has been recently sealed and protected.  This is a two step process and the second coat will be applied in the spring of 2015.   Improvements to the landscaping are constantly being made to reduce water consumption and take care of maintenance issues.   The HOA payment of $280 per month per unit may be higher than some other projects but you should be aware that it includes funds that are being set aside for capital expenditures and extra damage caused by the landslide, such as the sewer repairs. If the damaged buildings L & M can be feasibly reconstructed or if the city requires demolition, a additional special assessment may be required of all owners.   Anyone contemplating purchasing or selling a unit in Gardens South should be aware of this possibility.  

April 2014 Update

Attached is an update from the HOA board president, Bill Cornelius, regarding the status of the landslide abatement attempts.    In the fall of 2012, upon the recommendation of soils engineers, affected land owners joined in the construction of a large earthen berm with the hope that the slide could be stabilized.   The readings a year later appear positive (i.e. very little movement) since the construction of the berm, but until we experience substantial rain it cannot be determined if the slide has been halted.  It will most likely be summer of 2015 before further conclusive readings can be taken.   If after substantial rains and further testing it can be determined that the berm is effective in halting the slide the HOA board will continue to work with the city to decide whether to repair or demolish the damaged buildings and infrastructure.    In any case, owners (or prospective owners) can expect future addition special assessments until the situation is stabilized and the affected buildings are either demolished or repaired.

 

Annual Meeting -- Gardens South HOA

The following minutes are in DRAFT form and have not yet been formally approved by the Board but I was instructed to post them so that those not in attendance would be better informed.

GARDENS SOUTH

HOMEOWNERS ASSOCIATION
ANNUAL MEETING
MINUTES
December 8, 2012
Lexington Hotel Conference Center
Meeting was Called To Order by Jason Schall. Board members in attendance were Dwaine Hatch and Chip Bair. Kimberly Graff represented the Management Company.
Welcome to All Owners present. We want to extend a thank you to Dan Steurer and Terry Brotherson, due to other commitments they have resigned from the Board. Their participation on the Board and assisted in the berm project.
Year in Review: Jason Schall reviewed topics that the Board had been working to resolve this last year.

• -  A repair was made to the asphalt next to the pool
  
• -  A Crack in the pool plaster was repaired
  
• -  Wooden steps and handrails, repaired and in some areas replaced
  
• -  Fence by the swimming pool completely replaced
  
• -  A few issue were dealt with this last year:
  

o Fire in C building
o Water damage in a few units o Broken water lines repaired

• -  The board had the sewer at the front of L & M scoped. The units that sit above all drain down towards L & M buildings we wanted to be sure that the earth movement had not effected the main sewer line.
  
• -  Another hurdle to overcome before anything could be determined on the demolition of the southern half of L building was dealing with HUD. One unit was owned by them and the time it took to track down someone that was willing to make a decision took months and we needed titles before we could destroy the property.
  
• -  This Board has attended many, many meetings with the City Attorney, our own HOA Attorney, and the other two Owners with their Attorneys to move this project forward. The Board has logged 100’s of hours; 1000’s of travel miles to keep this project moving forward. The restaurant is not participating and we had to make adjustments to assure we were not encroaching upon his property.
  
• -  The berm project is moving forward, it took longer than any one of us thought. It was not the intent to not inform Owners of progress, but when it had only been progress of the contracts/agreements between the Attorneys, the Board felt that it was menial information. We still couldn’t provide a date of commencement. It is projected to move with demolition this next week.
  Report from Attorney: Joseph Hood, Vial Fotheringham
  

• -  Introduction of Joe Hood, he has been assisting with this berm project this last
  year and he would like to publicly thank Jason for all his hard work.
  
• -  We have been dealing with many agreements for this berm project
  

o Easement agreements: from the DQ land owner, the motel, and the section between Gardens South and the DQ. All easement agreements have been signed.
o Cost Share Agreement: Each participating Owner contributed their % of land interest in the shared expense to make this berm possible. This agreement has been signed

• -  All funds have been collected.
  
• -  The last step that Owners here today must vote for is a waiver/release and
  Indemnification. Barco for liability reasons (insurance) needs to be waived of any damage that may be caused due to land movement while they are on the property during this construction. The waiver does not release Barco from damage caused due to their neglect, but if the land was to move (any natural earth movement) while they are there and damage is caused they cannot be held responsible.
  

o It is noted that per the By-laws a quorum is present; Quorum is those Owners present at such meeting shall constitute a quorum. Vote is passed with a 50% majority vote of a quorum.
o Question was asked how much more money is this going to cost us. This waiver and moving forward with the berm is not going to cost any more funds. We have collected the funds necessary to this point. Future reconstruction of L and M is a different matter.
o Homeowner indicated that more communication is needed. They don’t live there and don’t know as to how things are moving. It was noted by the Board.
o Question was asked regarding the bidding and if localized to the St. George area. The City solicited the bids and chose the winning bid. The HOA did not have an opinion.
o Vote was taken with a raise of hands, all present in favor. Vote was counted 49 total Owners in person or by proxy.
Insurance Review: LaMond Woods from Sentry West

• -  LaMond reviewed, last year the association was very fortunate that we were able
  to acquire low quotes, this last year due to several claims and over $250,000 in damage the insurance company was not going to renew. After several months of contact with underwriters, and the deductible increasing we acquired a quote. The insurance premium double from last year.
  
• -  Review of coverage and Owner responsibility.
  Election of Board of Trustees: Two positions on the Board have come up for election. Nominees included Brooke Gleave, Chip Bair, and Dwaine Hatch. Open nominations from the floor. Ballots to be filled out and pass to center of isles. Collection and counting of ballots by Karen Hatch.
  Review of Finances: Kimberly Graff, Association Manager. Review of the 2012 Income/Expense statement and Balance Sheet. The 2013 Budget was reviewed, broken down as to how much an individual pays each month for water, trash, and cable. Please note that nothing was increased in the monthly expenses except Insurance.
  

- Concern expressed about number of rentals within the Community. The problem with that is knowing exactly which units are renting vs. family use. If you know of rentals in your building please report so that we can account for units that are in violation.

LANDSLIDE ISSUE:
- Question as to how long are we expected to wait before we know if renovations can be done
to L & M building. We do not have a time frame from the City but they have hinted at 1 year to monitor.
Election Results: The results from those present elected Dwaine Hatch and Chip Bair to serve 2- year terms.
MEETING ADJOURNED 

Merry Christmas !

Demolition of the Knights Inn building began this week

It's been a long and difficult six months since the last posting but finally we have something positive to report.  Who would have thought it would take a year and a half of negotiations and legal work to bring people and their money together to try to save their property.  As I reviewed the many blog entries since the emergency owners meeting held in June 2011 we all expected things to happen much more quickly than they have.   A couple of months ago we were close to despair!  Thanks to the hard work of the GSC board (particularly Jason Schall), attorneys Bruce Jenkins and Joe Hood, and with the help of the City of St. George, cost sharing agreements have now been signed between GSC and the owners (and lenders) of Knights Inn Hotel and the Dairy Queen properties.   The owner of the Claim Jumper restaurant has refused to financially participate or allow cooperative access across a small corner of his parking lot which added to the delay as negotiations continued to drag on among the affected property owners.  The owner of Monster Storage, Dennis Lyman, has agreed to let us take dirt from his site which is located nearby for which we are grateful.

Construction on the toe berm began this week as equipment arrived and the west section of hotel building is demolished.  The east side of GSC building L (the four units now owned by the HOA) is next to disappear.  The trucks will be rolling to haul off the debris and begin hauling in dirt which will be placed in 24" high layers with geo-grid fabric installed between each layer and wrapped up the leading edge of the berm.  Dirt will continue to be imported until the height of the berm reaches approximately 23 ft.  There will be a drainage pipe installed vertically through the berm to capture water from the roofs and area surrounding GSC buildings L and M.  This pipe will be tied into an existing 12" line that protrudes through the base of the hotel retaining wall and will be extended under the berm to flow, as it currently does, onto the parking lot which slopes to Bluff Street.

The expenditures relating to the landslide mitigation efforts now exceed $300,000 with Garden South eventually contributing nearly $240,000 including the money spent on past geotechnical studies and legal fees.  The City of St. George is lending $70,000 towards the project which is to be repaid over the next few years by the participating owners.   The increased insurance costs to owners continues to be a burden as insurance companies consider the higher risks of insuring the problem properties.  Insurance premiums have doubled in the past year.   Garden South has enough in reserves to fund it's share of the current known costs.   The future is still uncertain as we have yet to address the costs of restoration of the condemned buildings and some of the deferred maintenance throughout the community.

23 ft. of compacted dirt will replace the building.

Will it work ??? ... that is the big question.  The science and math says that the berm is designed with a 20% safety factor which is less than the 50% typically required by code for new construction.  The safety factor is like an airplane which is required to have enough fuel on board to reach its destination, PLUS extra fuel in case there is a need to reach an alternate airport.   In theory, there will be enough dirt placed at the toe of the slide to counterbalance the slippery ice cream scoop effect of the slide with an extra 20% to spare.   However, no one can or will guarantee that this design will permanently fix the problem.  For the slope to be declared safe by the engineers and city, it will need to be monitored and demonstrated that there has been no more movement.  This will take some time.  It will still be months before owners who are willing to invest in repairing the damage to existing buildings can begin restoration.

We will take this one step at a time, within the current budget that all owners have agreed on.  We looked at many options.   Quotes for proven landslide stabilization methods used by the DOT on mountain roads ranged from $3.500,000 to more than $6,000,000.  At that price, the owners group decided that it did not make economic sense to use the more expensive stabilization methods.  Attempts to secure government funding proved fruitless.  The only option was for private owners to band together using private funds to do what they can to save their properties.    The toe berm design has proven successful in some instances and we determined it was worth the investment to try and save the homes and business properties affected by this slow moving natural disaster given the limited financial resources available.

One Step Forward, Two Back...

Since the last posting there has been some progress and some regression.
    
A meeting with the EDG Group, owners of the land on which the Dairy Queen sits, is scheduled the first of next week to review the cost sharing agreement and seek to resolve their demands and concerns.   If EDG and the hotel both agree to contribute the amounts budgeted, along with the loan from the city, there is a good chance the berm can still be constructed by simplifying the design and reducing some of the costs even though we now have a budget shortfall of nearly $50K from what we originally had hoped to raise.  
To date, Gardens South has funded 100% of the engineering studies and legal efforts related to the landslide.   Even if Gardens South homeowners could come up with all of the money necessary to construct the berm, without signed easements granted by the hotel and EDG to use a portion of their land for the berm, it will not be possible to construct the berm .   Even if the two neighboring property owners agree to participate,  Gardens South will still shoulder nearly two thirds of the total cost.   I'm still hopeful that we can work through the legal issues but it has been more than a year since the first meetings were held among the various owners and we have yet to see signed agreements or actual funds to pay for the construction of the berm.    

Another hurdle...

On Mon, Apr 30, 2012 at 12:18 PM, Dan Steurer wrote:

I just met with Barco Excavation this morning at the site to review the latest changes to the design.  They will need to cross the corner of the restaurant parking lot property with the trucks to
build the berm.  The city is requiring the property owner sign an easement.  If he refuses to sign the easement for truck access and the install drainage system I don't know what our options are.  His parking lot is already destroyed because the storm water from the hill has been sheet flowing
across the asphalt for years.  With the new drainage system, his parking asphalt will have a much longer life expectancy once repaired. 
The free dirt at Monster Storage is quickly disappearing and if we need to pull dirt from elsewhere it will cost more.  I'm getting a bid for the storm drainage system ... just sent a bill for another $2K for the cost of the engineer who designed it.  I will then revise the construction budget and determine the latest total cost estimates to make sure we have enough money committed.

 I think only the following items must be accomplished to get started:
1.  Signed easement from the restaurant owner (and his financial participation agreement)
2.  Signed cost sharing and budget/escrow agreement by all parties... draft agreements have been sent.
3.  All parties must deposit money into escrow account prior to construction.    If we don't have the signatures and money, then the deal may fall apart.

I haven't given up, but I didn't count on the long legal delays and short-sightedness of certain property owners.  This has been a very frustrating week...we're so close.    We'll know what happens in the next couple of weeks.

More Delays... But Still Making Progress

Attorneys for the various parties are still working on finalizing the cost sharing agreement but we have yet to see monies from other property owners deposited to the trust account.   An agreement with the city regarding the use and repayment of funds contributed by the city is also being included in the cost sharing agreement.   The drainage design is complete but has yet to be approved by the city.   Draining water properly will increase the probability of the berm's success and is something that was not included in the AGEC berm design.  The city is also now requesting that the owner of the restaurant grant an access easement and storm drain easement.  This particular owner has yet to commit to participate in the landslide mitigation efforts despite the fact that the back of the restaurant is now caving in due to the slide.  We will need to work through these challenges in the coming days.   I am having to revise the budget for the berm construction to include the added drainage system costs once we have a final bid submitted.   I still think we will be within the total budget originally estimated but there will no longer be any cushion for unforeseen expenses.   This is a two steps forward, one step back process that has been frustrating for all concerned but we must continue to work through the issues if we have any hope of reducing the damages caused by this tragic slide.

Getting Closer

A meeting was held recently at the city offices to iron out any remaining issues regarding the construction of the berm.  All consents, easements, and releases from property owners and lenders have yet to be signed and collected.   The issue of drainage was discussed and the city wants to see a drainage plan included in the berm design specifications.  I met with a local civil engineer this week who submitted a quote for the design and has begun working on the project.  We should have something to submit to the city for approval within ten business days.   The attorneys are drafting an escrow agreement and requesting that all property owners contribute their share of the costs to a trust account prior to construction.  Gardens South has collected most of the special assessment that was approved by the homeowners and is ready to pay its share.   As soon as the money is collected from the other owners we should finally be ready to begin construction on the berm.

What's Happening???

Multiple bids have been solicited during the past two months from several contractors to construct a "toe berm" as designed by AGEC.   Costs are somewhat higher than originally projected but it appears that there will be sufficient funds if all property owners, including the commercial property owners who have agreed to participate, pay the pro-rata share.  A meeting is now scheduled for March 1, 2012 with the City attorney, representatives of each participating property and attorneys to finalize the cost sharing agreement, collect the necessary funds and deposit to a trust account, and work out any other issues.  We are still waiting for HUD to sign a consent/release form to allow the demolition of the condo unit they own in building L, but even if the consent is delayed we plan to continue forward with the demolition of the hotel and the construction of the berm.  All other required consents appear to be signed.  No work will begin until all funds are deposited by the participating parties (Garden South Condos, Knights Inn Hotel, Dairy Queen (EDG Group), and Claim Jumper) so that we have the assurance of being able to pay the contractors and geotech engineers.  If money is funded this month, construction can be expected to start within a week or two.
This project is the least expensive ($250K) of the possible remedies to attempt to halt the landslide and preserve property.  The engineer's math estimates that the berm should halt the slide with at 20% fudge factor of certainty.   Ideally, a 50% safety margin is desired but to achieve that the cost would be possibly more than $3 million to stabilize both slide planes down to the 40 ft. depth.  We met with two other contractors last month who specialize in stabilizing landslides across the country to obtain rough estimates.   The berm is designed as a temporary solution but given the limited resources of property owners, it may be the only economically feasible solution.
Property owners are wondering how long after the berm in completed repairs can be made on the affected buildings.   That will be determined after a period of monitoring the movement of the buildings to determine if in fact the berm is successful in achieving the desired result.  The buildings will need to be inspected and a list of repairs will need to be made to assure that they can be made safe.  If all appears to be safe and stable then it may be possible to make the buildings habitable again.   The utilities will need to be reconnected and sidewalks and gangways will need to be replaced or repaired along with any other cosmetic repairs.   All costs of repairs to the condos will need to be born by the homeowners of Garden South which may require additional assessments to raise the funds necessary.

Annual HOA Meeting Very Positive

On Saturday, Nov. 19th, 31 of the 111 units were represented by more than 50 attendees at the annual meeting of homeowners.  Many thanks to those owners who took time to attend the meeting, many from out of town.   Nominations for representation on the Board were taken to fill the 3 available two year terms.  Terry Brotherson accepted the nomination and was elected together with Dan Steurer and Jason Schall who agreed to extend their terms of service.

A report of the financial condition of the HOA was given and concern was voiced about the number of non-paying owners (currently 14) which causes a cash flow challenge for the HOA.  The HOA has the powers of a community government and the HOA fees are like taxes.  It was explained that the HOA has the right to file a lien and foreclose for non-payment of fees.   Additionally, services can be curtailed (such as cable TV service).

Those in attendance expressed gratitude for the service rendered by the board members.   A spirit of volunteerism is emerging once again as Richard Evans announced a community effort to repaint the entrance wall and signage.  Those wishing to spend a few hours to help pressure wash and paint should contact Richard who will organize the effort.  A number of maintenance and landscaping concerns were brought to the attention of the board.  If owners are aware of any issues, call or better yet, email Kimberly at C.A.M. to report items or concerns.

Lamond Woods, from Century West Insurance explained that the HOA policy covers the buildings and  everything that is "attached"(including cabinets, carpeting, etc.).  He taught why each owner should obtain personal property coverage to cover not only personal, "un-attached", property but also to cover the exposure of having to pay a $10,000 deductible should a claim be made against the HOA insurance policy.

The majority of the meeting time was spent discussing the current status and progress of the landslide abatment efforts.  Attorney Joseph Hood explained the progress made in negotiating a cost sharing agreement with commercial landowners also affected by the slide.   Homeowners received recently notification of a general assessment of $650 per unit to help fund the construction of an earthen buttress designed to halt the progress of the slide.  Copies of the recent report  and engineered designs are available at the following links:

Buttress Design Letter Link
Buttress Design Illustrations 1 - 4

We will need to get revised construction bids to see if this design is within the draft budget.   We have received permission from the owner of Monster Storage to take dirt at no cost from his site nearby.  There is somewhere between 6,000 and 10,000 yards available and it’s a short haul to our location.   If we run out, the BLM site behind the BeeHive property on Tonaquint is available for the taking.  This should help reduce the cost of obtaining suitable fill dirt.

The buttress is design to be faced with a black geotech fabric which is layered every 18".  However, the fabric as shown on the design will eventually deteriorate due to UV exposure (5 years?).   The design has morphed from being a temporary stop gap to a more permanent structure.    A more expensive option is to face the buttress with gravel filled wire cages which will add about about $6 per sq. ft. to the cost . Once we know the cost we can decide if we can afford to use the wire cages.   The consensus at the meeting was to do it right even if it cost a little more.

Because of the need to keep the drive-thru lane open at the DQ, the design provides only a 20% "safety factor". After meeting with Jim Nordquist this week, I think I now know how to explain what the “safety factor” percentage means.  The design is expected to halt the slide according to the math.  The 20% margin is the extra “fudge factor” in the design to account for some of the unknown or unaccounted for possibilities.  This is the percentage that the design is over-engineered.   The problem here is that the building code (hence, the City)  typically requires a 40% to 50% safety factor before buildings are allowed to be constructed (or reconstructed) on such soil.  What this means is that even if the berm is successful in halting the slide, AGEC is not willing to certify that the site is safe for re-construction or permanent occupancy until the safety factor is increased.  We have asked AGEC to provide a draft design that would provide for an increase the safety factor so that we can obtain a cost estimate and determine how to increase this factor so that we can make repairs to the buildings and satisfy code requirements.  This has to be figured out before evicted residents will be allowed to re-occupy their homes.

In a perfect world we would not do the berm now but try to move quickly to do the 50% safety factor design, organize the improvement district and fund the more sure solution.  Given the fact that the slide is accelerating and that it’s taken 5 months for the various land owners to agree to share costs for just the berm requires that we do the most expedient option which is to build the buttress in hopes that further property damage can be halted.  

Currently, there is an agreement in principle to share costs related only to the buttress based on the pro-rata share of assessed valuation:

•EDG Group (DQ, Pier 49)              14%

•Knights Inn Motel                           20%

•Claim Jumper Restaurant                 11%

•Gardens South HOA                       55%

Until now, Gardens South has shouldered 100% of the burden.   Having the commercial owners agree to share in the costs an allowing the berm to be built on their property is a huge step in the right direction.  It is uncertain if the initial budget of $190,000 for the berm is sufficient, especially if the more expensive option of using the wire cages to face the buttress is chosen.  The draft budget at the moment includes the following anticipated expenses:

DRAFT BUTTRESS BUDGET

  Demolition and Buttress Construction:                 $125,000

  Engineering and testing:                                      $  40,000

  Asphalt Replacement:                                         $  20,000

  Legal:                                                                $    5,000

    Total:                                                               $190,000

Gardens South HOA has about $40,000 in a reserve account set aside for landslide abatement costs.  If the $650/unit special assessment is passed, another $60,000 needs to be raised to help meet the nearly $100,000 obligation that the HOA will have in funding the buttress construction.  If the assessment is not approved, the board will be forced to take action to raise the funds by increasing the monthly dues and making a mandatory assessment as allowed by the CC&Rs and HOA By-laws.   Because the funds are needed immediately, passing the $650 assessment is in the best interest of the homeowners.   Owners will be given the option of paying the total amount or splitting up the payments over three months beginning January 1st. 

We're getting really close to seeing dirt fly and stopping the slide as soon as we accomplish the following:

1.  Obtain construction bids for the buttress as designed and for the wire cage option

2.  Obtain the remaining signed releases and consents from all affected property owners

3.  Finalize and sign the cost sharing agreement among the commercial property owners

4.  All participants fund the costs construction, probably by placing monies in a neutral escrow account prior to  authorizing the start of construction.

5.  Finalize the participation of the city in assisting with the demolition and waiver of land fill fees.

6.  Award the contract to construct the earthen buttress

Again, thanks to all who have contributed to this joint abatement effort and for the cooperative spirit that seems to be forming among the various owners affected by this unfortunate freak of nature.   

Property Taxes Lower for 2011

The county assessor has again reduced the 2011 assessed value for most of the properties associated with Gardens South due to the impact of the landslide on values.   The actual property tax bill for most owners is $100’s less than a few years ago.   Just within the last year, there has been a reduction of more than $26,000 in total taxes charged to Gardens South owners.   

The HOA Board will need to raise the monies to fund the association’s share of the landslide abatement costs as well as the future repair costs to Buildings L and M.   It has been suggested that by paying what we’ve been accustomed to paying before values dropped, some to the county and the balance to the HOA, it should greatly ease any financial hardships on property owners.   If owners would pay to the HOA the difference of what  they used to pay when values were higher, the association would have less need to raise dues or make burdensome special assessments.  It may be years before values rebound, but unless funds are raised and the slide halted, more properties will be affected and the damages and costs will escalate.   Condo owners should plan to budget for more special assessments so that the HOA can meet its obligations and so that property values can once again stabilize.   It's in everyone's best interest to fix the problems so that public and lender confidence can be restored and property values increase.