- Jun 6, 2005
- Reaction score
- Resorts Owned
- WKORV, WKV, 2-SDO, 4-Kauai Beach Villas, Island Park Village (Yellowstone), Hyatt High Sierra, Dolphin's Cove (Anaheim)
Owners - you need to keep a close eye on this. This could be the beginning of the end. What happens if the property is condemned? Or they want a huge special assessment? I feel like we are being setup here.
KBV IOA Newsletter Volume 2 2022 April28, 2022Aloha Kauai Beach Villas Interval Owner, On behalf of your IOA Board of Directors, we hope that you and your family are doing well. Much has transpired in Kauai and at the resort since we last wrote to you.This is a long newsletter; please read it in its entirety as there is a great deal of information you should be aware of.The AOAO wasadvised by Wiss, Janney, Elstner, Inc. (WJEhttps://www.wje.com/)to close and evacuate buildings G & H due to issues with the post-tension cables, which was compete onon April 13. The evacuation went smoothly. Several owners have sharedquestions to which we do not have all the answersat this time. WJE will continue building inspectionsand testing over the next few weeks. We will let you know when WJE and The John Hardy Group(JHG (jhgi.com)), the AOAO Project Manager, will be in a position to answer questionsrelated to the various issues that affect the Project.At the direction and consultation ofour contracted expert consultants, the AOAO has contracted forsome of the remedial work that affects the structureof the buildings. Owners in affected buildings have been informed that the lanai shoring will return the buildings to full strength temporarily until apermanent solution can be developed. In addition, the sewer lines in all the buildingsare being jet cleaned; spalling concrete will also be removed from the lanais;and the exposed concrete will be protected until a permanent solutionis recommended by the professionals. In addition, per the recommendation of WJE,the soffits on Buildings F, G, andH will be removed as soon aspossible.The AOAO Board held a Special Meeting on April 7 to approve the expenditurefor this work.All the work that has been done, all the work going on,and all the work yet to be done has been on the advice and recommendation of architects and engineers. Allremediation work has been designed by architects and engineers.In this newsletter we want to provide you a historical overview of the AOAOprocesses and discoveries following theflooding onMarch 28, 2020.The issues being discovered continue to surprise us. As the engineers found one issue needing repair theywould open or remove something and discover another issue, like peeling an onion with a new problem in each layer.Project HistoryThis uncovering of the many latent problems inthe project began following the flood in March2020whenthe ground floors offive of our eight buildings were flooded.The remediation of the flooded units required the removal of the lower four feet of drywall. For the first timesince the
buildings were constructed in 1980 –42years ago–this exposed the inside of the walls,allowingforinspection.As a resultof the inspection process, multiple originalconstruction defects were uncovered. The following is alist of some of theexamples uncovered,though the list is notall inclusive:1.The sill plates of the walls sit on the concrete floor placed over bolts installedin the concrete when it is poured. Many of these bolts did not have washers and nuts installed as they shouldhave. Someof the nuts installed were never tightened.2.The outside edge of the sill plate should be flush with or behind the concrete floor edge to allow for caulking to keep moisture out. Engineers have repeatedly found locations where the sill plate hangsover theedge of the concrete. This leaves a pathfor moisture to enter the building.3.Some of the concrete slabs are spalling, erodingthe area that is supposedto support the sill plates.This creates another path for moisture to enter the building.4.The building support structure includes 4”x4” steel columns and angled supports. Some of these have deteriorated from rust due to the moisture entering the wallsfrom design and original installation problems on the exterior of the buildings. Some aredeteriorated tothe point that they are losing structural strength. The worstof these are at the corners of the lanais which is why the engineers have told the AOAOto reinforcethe lanai corners with wood shoring. Thisshoringisatemporaryfixuntil theycan replace or repair the columns.5.The engineers evaluating the support columnshave discovered no flashing or other means of sealing the wallswhere they meet the lanais at the locationsconcretewas poured. This provides a path formoisture to enter the walls. This has been most evident at the corners of the lanais which is why those columns exhibit the most rust and deterioration.6.The AOAOcontracted with Avelar of Walnut Creek, CA. (www.Avelar.net).They haveengineers and architects specializingin building envelope evaluation. They discovered many places on our buildings where flashing, sealants, and other means to prevent moisture intrusion were not installed when the buildings were originallyconstructed. Avelar produced a 93-page technical report with photographs of the problem areas.The following are quotes from the Avelar report. The wordsin parentheses are added for clarification.a.“The base of the siding extends past the face of the foundation and exposes the underlying gypsum sheathing to moisture”b.“The face of the foundation edge is uneven and/or incomplete allowing for moisture intrusion into the interior”c.“The building paper (vapor barrier) at exterior walls is not continuous behind belly bands (area between floors) which allows water intrusion into wall cavities”d.“The flashing and original trim installation at doors and windows is incomplete which allows water intrusion; window flashing isnot installed and building paper is not continuous to the window frame”.7.Many of our windows and doors were improperly installed and not sealed to the building envelope. Avelarremoved trim strips to inspect above sliding doorsduring their site visit. This exposed gapsbetween the top of the door frame and the wall above it in places wide enough to allow a person to slip their fingers through it.8.Drywall is normally installed in the interior of walls and should remain dry. The gypsum in the drywall will retain moisture itencounters. In our buildings the AOAO inspectionshave found a layer of drywall installed on the exteriorof the walls under the siding. This
drywall is retaining moisture in our walls. The engineering firms we haveretainedhave not seen anything like thisand are unable tooffer us an explanation as to why it wouldhavebeen constructed this in 1980.9.While inspecting the steel columns, the design professionalshave discovered columns that are not flush with the concrete edge, leaving part of the post base hanging off the concrete. This reduces support and provides yet another entry point for moisture.These are some examples,and by no meansis this listall inclusive. Inspections weregoing on in late 2020 and through2021. It took time to select and retain expert services and initiate services beginning withinspections. During this time,COVID-19 led to government mandated travel restrictions forthe islands,even after we found firms willing to travel. COVID-19 was one of our biggest obstacles to making progressthrough 2021.The AOAO wasreluctant to release early reports until theyhad the full scope of issues, how they could be repaired and the costs associated with such repairs. The initial reports only identified problems without providing solutions. Therefore, at that time the decision was made to obtain more information before releasing such reports. The AOAOhas technical reports from:John Graham & Co. ArchitectsWiss, Janey, Elstner Associates, Inc. (WJE)BRPH Architect Engineers, Inc.Insight Environmental LLCPremier RestorationRambollAvelarWith all these reports the AOAO Board needed the information summarized in aform they could review and consider. Theycontracted G70 Architects to create this executive summary.TheAOAOreceived the first draft in mid-June 2021.The executive summary told the AOAOwhat generally needed to be done.Next,theyneeded to understand the cost of the repairs. The AOAOcontracted Joe Uno & Associates (UNO) to provide a Rough Order of Magnitude(ROM) Opinion of Probable Costs (OPCs) for recommended and prospective repairs. Theyreceived the UNO final report in early October 2021. The AOAOneeded to combinethe Executive Summary from G70 and the ROM from UNO and make decisions ofwhat todo, when to do it and how tofund it. Chris Porter of Porter, McGuire, Kiakona,LLP,helped theAOAOunderstand how a Project Manager (PM) could create the plan they needed. The AOAOspent October2021through the end of the year interviewing prospective PMs. Each interview required extensive coordination. In addition,the Governor of Hawaii asked people to not visit the islands in October, which requiredin-person Board and Annual Meetings to also be moved to Zoom. Theylost three weeks in November and December to the holidays. By early
January,the AOAOhad selecteda PM and began contract negotiations. Finally,on February 24, 2022,AOAO President Warner signed the PM contract with The John Hardy Group, Inc. (Hardy or JHG).JHG initiated a review ofthe reports, summaries, and ROMs to understand what the AOAOhad discovered to date. On March 24,2022,theymet at Kauai Beach Villas.Present from JHG:Brent Hardy, President and licensed architectJustin Evans, Senior EstimatorRyan Marzzarella, SeniorProject Director(SPD)From Wyndham Destinations:Robert Morrice, Regional VP of Resort Operations–Hawaiian IslandsRhonda Brown, General Manager, Kauai Beach VillasIan Litchfield, Project Manager, Wyndham DestinationsLarry Warner, President, AOAO Board of DirectorsTheyspent timesharingthe structure of KBV management, the association’s buildings, and the IOA and AOAO relationship. Theytalked about the age and history of the resort and the buildings. The group walked the property looking at rusty columns, lanai ceilings on the third floor, soffits on F, G,andH, stairs, concrete walls, and railings. Theywalked a few units to give the JHG SPD(Ryan Marzzarella) a flavor of the layout, what the remediated IOA units look like, an old unit, etc. With the exception of GM Brown, the group then continued to Honolulu.G70 invited the groupto meet in their offices in Honolulu. Aaron Erickson, SeniorAssociate of Wiss, Janney, Elstner Associates, Inc (WJE),and Rick Papa of RPAPA Construction joined themeeting.Time was spent reviewing the major items on the executive summary report G70 prepared covering the multitude of engineering, air quality, structural and other reports. Each item was discussed in detail until everyone understood the issue and possible remediation. Much of discussion was about the orderand timingof the repairs.The group discussed whether a whole building should be closed and all the remediation completed at one time,orrepairsstaged across several buildingssimultaneously. There were discussions of construction staging space at KBV, resident owner and guest considerations, painting, building envelope, roofs and much more. JHG brings a new perspective. To date the AOAOBoard has seen many reports and suggested remediation for the issues. JHG’s mission is to develop a plan to get KBV to the “finish line” ata reasonable cost and in a reasonable amount of time. JHG has a huge task to complete. They project this initial analysis will takethree months.
Once a comprehensive planhas been devised,the AOAO Board will need to consider financing options. TheAOAOBoard will considercash flow over the life of the project, how much money will be required and when. Part of this financial plan will include determining what needs to be done right away and which tasks can be deferred of scheduledlater.It is theirhopethatin three months the AOAO will have an overallplan theycan initiate. Theywill then need to evaluate and obtain financing within the association’s means. Once theyhave determined what theycan accomplish theywill seek contractors that can perform the work. Before the work begins,theywill need permits from the County, acquisition of materials, a determination of when buildings will be closed and estimates ofhow long. This is going to be a multi-year project.KBV’s buildings were not constructed properly and the aggressive marine environment has taken a toll on them. There is a lot to be done to extend the serviceable life of the buildings. The AOAOwantsto do this while allowing owners to useas much of the resort as possible. It will require the cooperation of everyone at KBV.We will continue to keep you informed and appreciate your understanding.