Water leaks are one of the most prevalent and costly threats to real property in high rise buildings. Since our building became occupied approximately two years ago, we have experienced many damaging leaks to units in our building and to common areas. These leaks resulted in residents being displaced – having to move from their homes. Significant costs (some estimate the average to be about $20,000) are often associated with water damage.

Because of water problems, in 2006 the Homeowners’ Association insurance premium went up $10,000/year and our deductible went to $15,000 per occurrence.

Why does everyone have to participate? Can’t each individual just decide whether to buy in or not?

Unfortunately protecting ourselves from water is not something we can do individually. Because water always seeks the fastest route down, the most water damage often occurs, not to the location that had the water leak, but to the units below. That is why the Board feels it so necessary that all homeowners participate. In essence if you support this proposal, you are ensuring that your neighbors above you are required to protect you from water damage.

What is the system being recommended?

After researching several possibilities the Dtect-100 Water Detection System was deemed to provide the services we would require at a very reasonable cost.

How does it work?

Here’s how it works. When water is detected, the Dtect-100 System dispatches “Call to Action” phone, email and text messages to alert property owners, Managers, building engineers and security that water has been detected. Whether someone is on-site or away, the system is monitoring the areas where it is installed 24 hours a day, 7 days a week.

The system consists of battery-operated “Base Stations” connected to a phone line. The base stations would be located in the common areas of our building.

These base stations communicate with wireless battery powered “Dtectors”. The Dtectors are discretely placed near areas where water leaks are most likely to occur: bathrooms, sinks, refrigerators, dishwashers, washing machines, water heaters, air conditioning units, and engineering cores.

How will I be notified if water is detected in my unit?

You will provide us with the contact information you would like us to use for water detection notification, e.g., cell phone, email, text messaging information.

Who else is using this system?

The Grande South is the first residential high-rise to install this system. Individual high-rise homeowners from Horizons, Pinnacle, Renaissance and Park Place are also using the system. Some commercial buildings that are using the system effectively are: Symphony Towers, 101 W. Broadway, McMillin’s Liberty Town Center, The University of California San Diego in buildings and laboratories most prone to flooding, and several others.

Why do it?

Many homeowners as well as the Board members have a strong desire to protect our building, our investment in this property and our personal possessions. Because of the problems we have already encountered, and the obvious opportunity for expensive problems in the future, we are pursuing this course.

What’s in it for me?

The idea is to save you from water damage expense, the hassles and expense of moving yourself or your lessee from the home, collecting on insurance, and rebuilding and replacing your property.

Here is a list of benefits to you:

• Helps protect the significant investment all homeowners have in their properties
• Can save you from losing your possessions to water damage
• Can save the hassles of replacing your possessions
• Can save you from losing your floors and walls to water damage
• Can save you from the hassles and expense of rebuilding your home
• Can save you from having to move from your home and the attendant expense that moving entails
• Can save you from losing your tenant and the resultant rental income
• Can save you the problems of having to collect on your insurance and the possibility of your insurance premiums going up
• Can save the Homeowners Association from insurance rate increases that inevitably occur when water problems occur in the building. Flood incidents can increase HOA insurance premiums by $10,000/year
• Can save untold frustration, anger and expense
• Has resale value for prospective buyers
• Keeps The Pinnacle competitive and on the forefront of amenities and services offered by similar downtown San Diego buildings
• Gives you a sense of confidence that your home is safe particularly when you are away.
• Gives you the pride of being a good neighbor

What is the cost?

The cost is primarily a one time investment of approximately $300 per unit.

There is an ongoing cost of approximately $2.00/month that will be covered by HOA dues.

We are fortunate to be benefactors of very favorable pricing, due to excellent negotiation and the hard work of some of our homeowners. This pricing is not guaranteed however, so we need to respond to the proposal in a timely fashion.

What are the negatives?

Installing the Dtect system will definitely require access at the time of installation. The $2.00/mo includes ongoing maintenance that will need to occur from time to time. This ongoing maintenance will require access to the unit if a water detection emergency exists; otherwise access would be needed about once every two years as needed to service the detector batteries. Access for these purposes would be scheduled with you in advance.

While there is an initial cost of approximately $55,000 for installation, that cost is significantly lower than other purchasers have experienced (almost half.) The savings is available to us now, but is not guaranteed indefinitely.

What if I don’t want to participate? Can I opt out?

A supermajority voted “Yes” and therfore you will not be able to “opt out.” The Water Detection System will now be part of our CC&Rs, the rules that govern our Homeowners’ Association and our building.

What if we are dissatisfied with the service?

Likely we would have an annual contract with Dtect. This would give us leverage if we were dissatisfied with the service.