An Open Letter to the ROC Candidates

I composed and sent this letter to the three board candidates on the "Residents of Change" slate. The original included the specific names of the candidates and my name. I have deleted these names for this blog. Otherwise this is the entire letter.

September 11, 2008
To: “ROC” board candidates and the “Residents of Change”

Dear Sirs and Madams:

Thank you for your letter, the enclosure and voting instructions. On reading them, I have questions and concerns. Since the group you represent is requesting my vote and this is a serious matter, in the name of “open communications” I would appreciate a written response to this letter. I have sent it as a “pdf” document via email and via US Mail. You should respond in kind. Please spare me the color backgrounds, etc. Simple B&W text will be sufficient.

You have stated in your letter and enclosures that “a grassroots movement….has been growing” and has “now organized the Residents of Change (ROC)”. You also stated that “we have chosen three candidates to run for the positions open on the board in 2008” and that “a majority of us have been displeased with the board”.

From your letter and enclosure I conclude the three candidates to whom I am addressing this letter are running at the request of the majority of the unit owners, who are dissatisfied, and whom they represent. You are requesting that I and the other unit owners who are not members of “ROC” vote in support of your majority.

I’d like to make an informed choice. I construe from your statements that you represent a majority, that is, at least 169 units, who are, you say, displeased. If so, you should have no difficulty in providing me with a list of the units whose owners are a part of your majority. I don’t think this is an outrageous request. You have made certain statements and you should be willing and able to back them up. I expect substantiation from my board and from potential board members.

If you don’t provide details, then I must conclude that some of the statements the “ROC” has made in the letter and enclosure, etc. are false, and designed to deliberately mislead me and my fellow unit owners.

If I seem concerned, it is because I am, and I have a lot of questions. But first, let me give you my perspective.

The issues seem to be about “being heard” and about expenses and assessments. BLMH has amassed significant reserves which the current board has allocated to specific repairs. The funds are published in the annual budget and balance sheet. These are allocated to roofing, about 45%; paving, about 28% and the balance to concrete, masonry, lake restoration and carpeting. I am paying a monthly assessment of which a substantial amount, that is, about 19% is currently allocated to reserves for these published maintenance items. I have paid these amounts for years because I support the maintenance items and to avoid special assessments. Over the years I have discussed this, written the board and received responses from the board.

On the other hand, the “ROC” has given me no substantive information at all and I think my concerns are very, very warranted. According to what you have sent me, you have been planning this for some time. So why no specific program ideas in your letter except advocating a website? I appreciate that you went to the expense of mailing a letter ($141.12 by my calculator). However, I do not understand why there is no “ROC” website supporting the running battle which has apparently been waged for some period of time and at which I could get “the whole story”.

As I see it, unit owners have differing financial and life style issues and choices. BLMH includes “seniors” who have been here for 20 to 30 years and “newbie’s” who have purchased a unit within the past 2 years. Some of us will be here at BLMH for another 20 years, and some are planning on moving in one or two. Within this diverse body there are unit owners who are involved and are out there watering the lawn during droughts, or shoveling the snow when we get that frequent dusting, or salting after icing, clearing iced gutters, etc. Some pick up the newspapers and trash that collects in entryways, and even vacuum the halls. Some are board volunteers. Others do absolutely nothing. Some probably care little about the grounds except as a dumping ground for their pets and others would love to use the grounds for lawn parties and barbecues. The unit owners have different perspectives and I suspect it is not possible to keep all of us happy. For example, BLMH assessments pay for the water used to wash unit owner’s automobiles. That could be considered wasteful and poor use of BLMH funds. Certain “forward thinking” communities are, in fact, banning this practice.

Each month I pay an assessment, the allocation of which requires the balancing of the differences of the unit owners. This includes the accumulation of reserves for capital expenditures and spending for “preventative maintenance”, and for out of pocket costs for utilities. I don’t think we will all agree on what is important or significant. Some unit owners would consider using certain resources to be wasteful or unnecessary. This could include hiring professionals to clean the garages or entryway and stairways. On the other hand, some unit owners expect this level of service and are willing to pay for it.

Some unit owners, who are planning on selling in one, two or five years probably view putting aside large sums into reserves as a poor use of their money. Others see it as a prudent savings program designed to avoid special assessments.

Some may think the association reserves should cover the replacement of windows, others not. I think unit owners should pay for specific repairs to their units. That includes windows. I think that building common elements which extend to or over multiple units, such as roofs, should be covered by the assessments.

Some are in favor of special assessments, others are not. Do you advocate the accumulation of reserves as does the current board, or are you proposing a “pay as you go” special assessment approach?

This complex is approximately 30 years old. Some repairs are necessary. However, there are differences in opinion. What are your criteria for repairs and your philosophy?

You are running on a slate of “change”. That’s an unfortunate term; I would prefer that we seek “solutions”. Your letter stresses the proposed ROC board members’ qualifications, and generalities about complaints about being heard, displeasure with the current board and management, reducing expenses, achieving the lowest possible assessments, etc. I assume you and/or the “ROC” members have specific changes you want to make upon your election. I assume the current direction is not the way you want to go. Otherwise, there would be no reason for changing the board as you intend to do. It would be appropriate for you to share your specific intentions with me and the other unit owners before the election. That would be a good demonstration of “open” communications.

I have the record of the current board and that includes their published intentions for the cash reserves. All I have from you are complaints and some nebulous promises. Here are specific questions for you to address in your response. Based on that response, I may have additional questions or request clarification:

1. I have been a volunteer in other capacities. The board is a body of volunteers. I suspect there is a lot of work involved. As with most organizations, either the volunteers do the work, or professionals for a fee do the work. How much time can you devote to this? You included a brief resume for the three board candidates who are all full time “professionals”. What you did not state was that you will make the commitment including time as required to fulfill your obligations on the board, and your promise that “we all be heard”.
2. Your “Slate of Objectives” specifically states as an objective “We will seek ways to reduce expenses and keep assessments as low as possible”. What does “as low as possible” mean? You are implying that expenses will be reduced, for the goal of reducing assessments. How will you achieve this and what are your specific proposals to accomplish this? I am certain you are aware of the rapid rise of inflation, in particular for commodities and energy.
3. The ROC slate of objectives includes “We will be the voice of the residents……champion[ing] forward thinking ideas”. The board is the elected voice of the current residents. The current one is and the next one also will be. However, the board does not and will not always act in accordance with my personal wishes. It is also true that the board has far more power than being simply “my” or “our” voice. The purpose of the board is responsible representation. Someone who can be trusted to responsibly use the funds I put into my assessment envelope each month. The ROC slate includes the statement “We will seek ways to reduce expenses and keep our assessments as low as possible.” So would you tell me where they stand on these issues:

• a. I assume the website you mention is one of the ROC’s “forward thinking” ideas. So how about giving me an idea about what other forward thinking ideas you have and are planning?
• b. How many of our residents have the ability to reach the website you are promoting? If they do not, then what? How much will that site cost? Will volunteers do the work and function as webmaster, etc. as part of their duties on the board, or will it require monies paid from the monthly assessments? If so, what reduction in service will be used to offset this cost increase? If none, then where will the money come from?
• c. The ROC and its candidates have stated that they will “encourage open, two-way communications”. They further state that suggestions will be via email or written note. That is not significantly different than the current system and would be inadequate. To empower change and “open” communication it will be necessary to have a web site open to all unit owners and where ALL letters and responses are posted. Unit owners should be able to post their questions and concerns without censure by the ROC, the Board or anyone else, within the limits of what is considered to be non-obscene. Who would moderate this?
• d. Electricity is slated for a 6-1/2% increase this year. What reduction in services are you planning to offset this and other cost increases? If no reduction then where will the money come from?
• e. This association has accumulated financial reserves, which are increasing as unit owners pay their monthly dues. Each year I am contributing about $750 to the reserve fund. Do you consider the financial reserves of BLMH to be excessive? Or adequate? Or inadequate? And why?
• f. Costs involve the day to day cash outlays to cover operating expenses. Monthly assessments are the collections to offset those expenses. It is possible to lower monthly assessments while costs are increasing. For example, you could deplete reserves to cover the differences between funds collected and “costs”. This I would call the “mortgage your future” approach. Are you planning to use this approach? If so, how much will you divert?
• g. What are your ideas regarding monthly assessments and special assessments. Specifically, will you reduce monthly assessments and replace them with special assessments? Will there be any special assessments?
• h. The current board and management has an agenda for building up the association reserves for the purpose of roof replacement and repair, paving of streets, lake restoration, concrete, masonry and carpeting. Will these programs continue?
• i. If you are not if favor of the current capital spending programs then what specific programs do you favor for the spending of the reserves? What projects are you advocating?
• j. Will there be balloting for all future uses of financial reserves? If so, will the results be published with the vote by unit and therefore verifiable?
• k. A “giveback” of financial reserves would be a windfall for certain unit owners. Are you planning or advocating such a program? If so, how would you disburse funds equitably; for example, using a formula based upon the amounts actually paid by the current unit owners?
• l. Are you planning on investing the cash on the accounts of BLMH in some other location than the present ones?
• m. Will you replace the current management company? If so, why?
• n. What other changes are you planning?
  

Thank you for your consideration and prompt response.

“A Very Concerned Unit Owner”