Canyon Point Villas

February 2000 Newsletter

Mar 13, 2000

In September of 1997, a lawsuit was filed against W&E Cach, LLC and Snow Construction Co., the developer and construction company responsible for Canyon Point Villas community. Numerous construction deficiencies throughout our community had been identified, as detailed below. After several failed attempts in resolving these issues, the Board of Directors decided to pursue litigation. A settlement was agreed to by the Board of Directors and the litigants through arbitration in March of 1999.

A special homeowners meeting was held in April of 1997 to address issues related to our pending lawsuit including the need for a special assessment. In order to pay for legal costs and professional consulting on construction issues, an assessment of $600.00 was requested from all homeowners. It has come to our attention that some homeowners thought that this assessment would be returned if the lawsuit was successful. Unfortunately, that is not true. Although the Board of Directors discussed this issue, it was unanimously agreed that the assessment would only be returned to the homeowners if a substantial settlement were achieved. We feel that we did achieve a settlement that will allow us to address all of the construction, drainage and grading issues, but only if we spend the settlement funds wisely.

It should be noted however, that the assessment was money that was well spent. Just since the lawsuit was settled, not even a year ago, some homeowners have realized a 20% increase in the value of their homes. And we should not forget that when our lawsuit was filed in 1997, our construction consultants had estimated that the cost to complete all repairs at Canyon Point Villas would exceed $10,000.00 per homeowner. This cost will now be covered by the settlement funds.

Below is a summation of the settlement. All funds were received in full by May of 1999, and were deposited into a settlement account, with Dain Rauscher Investment Services.




Total Settlement $727,000.00
Attorney Fees $154,000.00

Final Proceeds $573,000.00

Breakdown by Item Settlement Amount

Firewalls $ 15,000.00
Siding $ 75,000.00
Roofs $ 112,000.00
Grading & Drainage $ 140,000.00
Attic Venting & Gutters $ 31,000.00
Caulking $ 9,000.00
Deck Repairs $ 15,000.00
Road pavers $ 10,000.00
Landscaping $ 62,000.00
General Fees & Permitting $ 74,000.00
Stucco $ 30,000.00

Total Funds $ 573,000.00

As of this date, repair work has been completed on the siding, decks and firewalls and within budget. It is anticipated that repairs to the stucco will be completed by late spring. The Board of Directors hopes to approve contracts by the end of February to install new roof shingles and attic venting, repair gutters as well as grading and drainage modifications. This work should be completed by late summer. Notices will be mailed to homeowners before work commences on your home.

Another question has been brought to our attention concerning construction defects inside our homes that are not the responsibility of the homeowners association and were not a part of the lawsuit. The following is extracted from our newsletter dated March of 1999, and mailed just after our settlement.

?“This settlement however, did not release the Defendants from potential claims by individual homeowners for construction deficiencies that are not the responsibility of the Homeowners Association. An example would be defects inside your homes that were not a part of the Association claims. The Board of Directors wishes to advise homeowners that if the statute of limitations was not expired on these potential claims prior to when the Homeowners Association Litigation against the Defendants began, which may be true for many of you, then the expiration of that time period has now resumed.?”

It has been almost a year since our settlement, but we would advise any homeowner who has a concern about this issue, to seek professional advice concerning the statute of limitations, relative to their personal situation.

Board Member Vacancy

We need one more board member ?– time considerations are 3 to 4 hours per month. Your home is your investment. We encourage your participation.

1998 Audit Completed

The 1998 audit and tax returns are completed. A copy of the audit letter and balance sheet is attached. Also for your information, the Reserve monies are invested in various instruments through Dain Rauscher. The settlement and reserve funds are ?“laddered?” so they draw the most interest for the longest period of time before the Association needs to withdraw them for use on current projects.

Fire Lane Parking

Unfortunately, owners and guests are continuing to park on the street and cul-de-sacs on High Point and Canyon View Drives. These are posted fire lanes. Vehicles can be ticketed by the City ($50.00) or towed. Please do not park in these areas, so you can avoid a ticket or tow.

Amended Declarations

The Board of Directors continues to work on the Amended Declaration. We are close to a final document to present to owners in the next 2-3 months. This will be sent to you in the mail with a notice of a special meeting to vote on the changes.


SPRING IS IN THE AIR!