Updated Surplus Numbers

Updated Surplus Numbers
Updated Surplus Numbers: Actual surplus 2018 per audit was $85,163.
Boards 2011-2018 implemented policies and procedures with specific goals:
stabilize owner fees, achieve maintenance objectives and achieve annual budget surpluses.
Any surplus was retained by the association.
The board elected in fall 2018 decided to increase owner fees, even in view of a large potential surplus

Average fees prior to 2019

Average fees prior to 2019
Average fees per owner prior to 2019:
RED indicates the consequences had boards continued the fee policies prior to 2010,
BLUE indicates actual fees. These moderated when better policies and financial controls were put in place by boards

Better budgeting could have resulted in lower fees

Better budgeting could have resulted in lower fees
Better budgeting could have resulted in lower fees:
RED line = actual fees enacted by boards,
BLUE line = alternate, fees, ultimately lower with same association income lower had
boards used better financial controls and focused on long term fee stability

Tuesday, September 16, 2008

Rain, Rain "Go Away"

Interestingly, most of the "breakdowns" involving our unit have involved water. Fortunately, problems have been few and far between, and the management company and board are usually responsive. A roof leak incident was probably the "perfect storm". Oops!

From my experience, one of the things I do not like about being a unit owner, is the need for coordination and cooperation between management, contractors and neighbors and the lack of power in that process. As a home owner, I was accustomed to making decisions in which I had purchase authority. As a unit owner, I have no such authority or power with contractors or my neighbors. As a result, some simple problems can, and do become much larger ones.

I have kept copies of the letters I use to resolve these and other issues at the unit. I also have a "diary" and a task agenda. The "diary" keeps track of names, dates, conversations and so on. It's simply a day planner with notes. These get rotated out each year. The task agenda is used to establish priorities. I prefer to use letters as follow-up for conversations because they document what is going on. A letter is also a means of controlling what I say; conversations are less rigorous and it's easy to make verbal promises and agreements and then promptly forget about them. Then there are those dreaded "senior moments" that people keep warning me about. Letters are a form of documenting who promised what to whom, etc. I am also very careful that what I write is accurate. Of course, in the end you could say it is all my opinion. I prefer to view these as my "assertions". There is evidence to back up what I say. However, I do agree that this is from my point of view.

I have found that conversations can be very, very sloppy. That said, here's a couple of "water incidents".

A Leaky Water Heater

In April of 2002, our hot water heater's valve developed a minor problem and a drip. Not all of the water went down the drain in the utility room, which was only about a foot away. Unfortunately, a flaw in the floor caused some of the water to find it's way into the unit below, rather than into the drain per se. Our neighbor alerted us to the problem, which after inspecting their utility room, I was able to confirm. This was not easily resolved. I "capped" the hot water valve to stop the water "drip". I also called the general maintenance company recommended by our association and asked them to contact my neighbor to gain access to their unit and to provide me with an estimate of repairs. I'm reasonably "handy" but for liability reasons, I decided not to do the work in my neighbor's unit.

It took a while to figure out how the water was getting into the unit below. It was a very small trickle which did make it to the drain in the floor. After a few inspections from below, it was determined that water was running along the outside of the drain pipe. I stripped the tile from the floor above and determined that the cementatious underlayment had a crack. Water apparently found this path and ran along the outside of the drain pipe and into my neighbors unit. The contractor confirmed this from below.

I decided to cut the lip of the drain pipe, which was extended slightly above the level of the floor, patch the crack and the seam along the outside of the drain pipe where it passes through the floor, using epoxy cement. I then replaced the tile. I also extended the tile into the drain, so that water hitting the floor would be guided into it. However, to do this "right" would require replacement of the entire floor of 12 x 12 tiles with a single sheet of plastic vinyl. To do so would require a new hot water heater. The repairs to my neighbors ceiling were completed and they confirmed that the repairs were "satisfactory". Accordingly on May 16, 2002 we issued our check #1056 to the contractor, in the amount of $700. This was an expensive repair, in part because it took multiple visits by the contractor who stood on a ladder below with his head in my neighbor's ceiling and with me above pouring water from a bucket onto the floor. We eventually determined exactly what was happening and how the leak was getting into the unit below. I was then able to make repairs above, and that had to be completed before the contractor could replace the ceiling.

We decided to postpone replacement of the hot water heater until such time as I could also do the repair to the floor and install the vinyl waterproof floor. This was finally done in January 2007. At that time I replaced the floor with a single sheet of vinyl, put an aluminum pan under the new hot water heater, and sealed the entire edge with a vinyl cove base and generous amounts of silicone sealant. The vinyl floor was installed so that it extends over the edge of the drain. Any leaks in that room should not reach the unit below.

A Leaky Roof

In 2004, we developed a leak on the roof. It was traced to a missing cap on the chimney. However, the repairs took some time and my neighbor was very unhappy with me. It took quite a number of telephone calls, coordination with a contractor, and ultimately a letter to the management office. There was more than enough frustration to pass around and for a time we were not on speaking terms with one of our neighbors. This is the letter that finally got the problem resolved. I have deleted names, etc. but otherwise, this is the exact letter, spelling and grammatical errors included. On re-reading this, I was struck by a similarity to the premise of that movie "groundhog day":

July 21, 2004

To: Director of Management

Dear Sir:

This is to advise you in writing, of the UNSATISFACTORY and UNRESOLVED status of a problem at BLMH. What should have been a relatively minor problem, speedily repaired, has been anything but. I suppose I should be thankful this was not a major problem. However, this has gone beyond a simple nuisance and my neighbor below is a problem, as [he] would like to believe that any water entering [his] unit from above is my problem, my responsibility and can be controlled by me and that any resulting damage is my financial responsibility.

This was reported over 30 days ago to [the management company] (on June 16) but as of today has not been resolved. There is ongoing and spreading water damage to two units and a significant amount of water is collected in [my unit] each and every time it rains, with continuing and spreading damage to the utility room ceiling of the unit below. On June 21 and again on July 15, we were told by [the contractor] that this was a chimney cap problem. The parts were supposedly ordered after the June 21 inspection but in a second inspection on July 15 my spouse was told that the required parts had not been ordered. This morning I spoke with [so and so at the contractor] and he said that the proper cap is not immediately available and that he would attempt to make temporary repairs. However, I don’t know if this will be successful and prevent water entering the building.

I appreciate [the contractor's] efforts; I don’t know precisely why it has taken this long to solve this problem. My work requires extensive travel and so my spouse has been attempting to coordinate this to the best of her ability, with minimal success. As a consequence I have altered my business to permit me to be in the area for the next week or so. My neighbor below has requested that I pay for repairs to [his] utility room.

The bottom line is this. 35 days for minor repairs is excessive. It is my understanding the roof, chimney and caps, and flashing are the responsibility of [the association], not the unit owners. However, I am absolutely capable of orchestrating the necessary repairs and therefore, if this is not resolved by 5:00 pm on July 28, then on the morning of July 29 I will at my own expense hire the necessary contractors and make any and all necessary repairs to the roofing and/or chimney and related structures at [my address].

If I do have to bring in a contractor I will backcharge [the association] for the work. If, after issuing a backcharge I am not reimbursed within 30 days I will then deduct the amounts from my assessments until I am fully reimbursed. Further, and to avoid any confusion in this matter, I am a responsible owner not a renter and I do understand the difference and I believe I am acting accordingly.

To give you the complete story, the problem involves one or more roofing and/or chimney water leaks above [my unit] at [my address]. This has resulted in damage to both [my unit] and to the unit below it. However, I understand the damage to the unit below [my unit] is more extensive and includes bubbling of the utility room ceiling. Photos of [my unit] are enclosed and includes both the utility room and the adjacent bathroom ceilings in [my unit]. I do not have photos of the unit below, which is owned and/or occupied by [my neighbor].

Chronologically, this event began on Wednesday, June 16, 2004. As I stated, my work requires significant travel on my part and I was away that week. In fact, in one recent month I was on the road 29-1/2 days. This makes my involvement difficult and puts an additional burden on my spouse. However, I have altered my business for the next week or so, even though I should be at several clients out of state, so that this problem is fully and completely resolved. I digress.

On June 16, my spouse, reported to me that [my neighbor] knocked on our door at about 10:00pm to report water leakage in [his] utility room. My spouse investigated our utility room and found evidence of water leaking from above. She called me long distance about this. At 10:30pm [my spouse] called the night Operator at [your office] and reported the problem and requested assistance. [My neighbor] also promised [my spouse] that [he] would call [the management company], but we are unaware that [he] in fact, has ever done so, and according to [your contractor] they have no current work orders from [my neighbor].

On Thursday June 17, we had not received any response from [your office] so on Friday June 18 [my spouse] called [your office] during normal business hours and was told “there will be someone soon”.

On Monday June 21 [so and so] of [your contractor] arrived and investigated. [My spouse] advised him of the problem and after an inspection he advised [my spouse] that the leakage is occurring in the ductwork leading from the roof (this ductwork is compartmentalized, with inner and outer ducts, and according to [the contractor] there was water moving between the inner and outer). While he was in our unit I spoke with him via long distance telephone and he informed me of his findings and advised me that a chimney cap was missing. However, he declined to enter the attic and confined his inspection to the exterior of the roof and the utility room and bathroom. He advised [my spouse] that this would be corrected quickly, but that a chimney cover would be placed on order and so repairs could not be done immediately.

Upon return from my business trip, I made an inspection of my own. I entered the attic and looked for evidence or water leakage. Beneath the ductwork leading from the roof I installed an aluminum pan under a seam at a 90 degree elbow, in the area above the bathroom ceiling which is stained as indicated in the photo. At the time the duct was dry, but there was evidence of water (water marks) in that area of the duct. Also, it is possible that more than one section of ductwork is affected. However, the major leak is in the duct which goes through the utility room of [my unit] and to the unit below, and which I understand is causing bubbling and damage to the utility room ceiling in [my neighbor's] unit. I inspected that duct in my utility room in [my unit], but the water appears to be running vertically within the duct and is beyond my control. I also inspected the appliances in my utility room, including the HVAC unit, water heater, humidifier, washing machine and water and drain piping. The underside of the water heater and the entire floor was bone dry. There was absolutely no evidence of any internal leakage in the utility room. The nylon tubes which convey condensation from the HVAC exchanger to the drain and from the furnace humidifier were properly inserted into the floor drain. The humidifier tube was internally dry; the HVAC tube and had typical “scum” inside of the tube, but was freely conveying condensate into the drain.

I do understand there are several possible sources of water. These include and are not limited to:
1. Water from appliances and HVAC situated inside the utility room.
2. Faulty plumbing or drain piping within the utility room.
3. Roof leaks.
4. Faulty floor drain including cracked piping above the ceiling of the unit below.


Now, when the unit was purchased about 2 years ago, we discovered a faulty hot water heater drain valve. At that time we also discovered a crack in the cementatious floor of the utility room, and a defective drain which had a lip about 1/8” above the floor level. These all combined to channel water into the ceiling of the utility room below. A work order was issued to [your contractor] for which I paid $700. Work done at that time included removing floor tiles and sealing the cracks in the cementatious floor of the utility room, cutting the 1/8” lip off of the drain and sealing around the drain and floor opening with vinyl cement patch, installing a cap on the hot water heater drain to prevent any leakage, and repairing the drywall of the ceiling of the unit below. Since that time, there have been no further problems, until now.

To continue with the chronology, during and following rainstorms the week of July 5 we did collect water dripping from the ceiling above the utility room in [my unit]. Depending upon the severity and duration of the rain, each storm has resulted in about ½” to 1” of water accumulating in a utility pail I installed under the stained area of the ceiling. On July 5 [my neighbor] complained to [my spouse] about water dripping from the ceiling of the utility room in the unit [he] occupies.

[My spouse] again explained to [my neighbor] the cause of the problem and the status, and again and repeatedly suggested that [my neighbor] contact [the management company] directly for assistance in dealing with this problem.

On July 8 [my spouse] called [the management company] to determine the status of the chimney repair. She was advised that [the contractor] needs to be contacted by [us] directly as [the management company] was unaware of the status. [My spouse] left a voice message with [the contractor] and telephone tag ensued with [the contractor].

On July 13 a second appointment was scheduled with [the contractor] to occur July 15.

On the night of July 13, [my neighbor] again complained to [my spouse] of water dripping from [his] utility room ceiling. [He] insisted it must be an internal problem and convinced [my spouse] to have another contractor look into the problem.

On July 14 a contractor, “Mr. xxx” the handy man from [some company], arrived at our door.


According to [my spouse], Mr. xxx inspected the utility room and bathroom, and blows on the nylon tube existing the HVAC unit. He tells [my spouse] that he might have fixed the problem! From our unit, [my spouse] telecons [our neighbor] at [his] work as requested to give [him] a report and Mr. xxx gets on the phone and tells [my neighbor] that “he has solved the problem – it was the air conditioner”. At that point [my spouse] interrupts, but [my neighbor] refuses to discuss this with [my spouse].

I think [my spouse's] allowing Mr. xxx into the unit was a lapse of judgment, Mr. xxx apparently ignored the stains on the ceilings and would not check the attic. While he was there he offered to fix other miscellaneous problems and for whatever reason, [my spouse] assented. He look into a leaking flap valve within the bathroom toilet (ignoring the stains on the ceiling) and also tightened some of the handles on the bathroom water valves. Of course, all of this does absolutely nothing to resolve the problem of the leak(s) from above. It’s just a lot of cosmetic touches. For his service, Mr. xxx presented a bill, for which my spouse signed a check!! [My spouse] was quite upset that Mr. xxx told her that the AC might be the problem but then told our neighbor that it was the problem and he has fixed it!!

I have telephoned [the handyman company] and talked to Mr. xxx regarding [his] involvement. On July 20, 2004, I discussed my issues with Mr. xxx. I advised him that I completely disagree with his statement made to [my neighbor] that the HVAC in my unit is the cause of the water damage. I told him that I believe his statement was both incorrect and misleading. He attempted to say he did not place the blame on my air conditioner. I believe he did a disservice and in my telephone call I told him so. I told him I will not allow him or his firm into my unit in the future and have so instructed my spouse. His response was to hang up on me.

To support my position, during two inspections related to this problem, [your contractor] has not found any evidence of water damage from my air conditioner, or for that matter, from any of the other appliances in the utility room. Of course, it is always a possibility for an air conditioner to leak but in this particular case, it is not doing so. It is also possible that the piping from the floor drain is cracked and this is an additional source. However, Mr. xxx didn’t check this! YOU CAN CONSIDER THIS LETTER A FORMAL COMPLAINT AGAINST [MR. "XXX" THE HANDYMAN].

When this problem began I inspected the air conditioning system, the water heater, and the washing machine, etc. All were and are bone dry. The floor, top of the HVAC unit and interior of the bottom of the furnace were and are all bone dry, with absolutely no evidence of any water leakage, condensation, etc. etc. I want to point out that the HVAC system is not the original unit and is in EXCELLENT condition. Two years ago it was thoroughly inspected by a professional and some minor repairs were made at that time.

Returning to the chronology, on July 15 [your contractor] arrived and re-inspected [my unit]. Prior to his arrival, [my spouse] telephoned [my neighbor] and advised [him] that [the contractor] is available to inspect [the] unit but [was] declined. He performed the same check that [his predecessor] did a month ago. He checked the interior of the [my unit] and the water stains in the ceiling of both the bathroom and the utility room. He went further however, and entered the attic from [above my unit] and he advised [my spouse] that there are moderate water stains on the ductwork leading from the roof. Prior to mounting the roof he stated to [my spouse] that he suspected a chimney cover may be missing. After inspecting the roof he confirmed that a chimney cover was missing. He advised that [his company] needs to acquire one and install it. This is the same thing we were told nearly a month earlier!!! Obviously, [my spouse] was not happy to hear that it had not yet been ordered. [My spouse] discussed the issue of the air conditioner and he stated that that is possible, but that the evidence of water from above and the extent of damage described to the unit below, is more substantial than that possible by an air conditioner problem, for which there was no evidence, and was consistent with the leak from the roof, above.

[The contractor] also advised [my spouse] that he is in charge of work orders and that he never received work orders from or regarding this problem and [my neighbor's] unit. So I must conclude that [my neighbor] has never called [the management company] to report the problem in [his] unit.

At present and to the best of our ([my spouse] and my) ability we have been collecting water dripping from above in a bucket. However, any water running inside the duct or walls and entering the unit below is beyond our control. It is my opinion that “Mr. xxx the handyman” performed a disservice and should not have been paid by [my spouse]. However, I was not there to prevent this from happening.

I must conclude that [my neighbor] will not assist us in resolving this problem by contacting [the contractor] and [the management company]. So be it. However, I will not accept financial responsibility for damage done by roof and or chimney leaks to my neighbor’s unit, nor should I. I am sending a letter to [my neighbor] to advise [him] to deal with [the management company] directly. I will not be the scapegoat for roof or chimney cap problems and 35 days to fix this problem is excessive. [My neighbor] can knock on your door!

As of July 20, I left a message at [the contractor]. On the morning of July 21 [the contractor]returned my call. He advised that he has no cap but that if necessary he will have one made. I advised him that my neighbor is holding me responsible for the problem and had become a problem. He told me that I am not responsible for roof leaks and that if the drain pipe were cracked it could be a source of leakage in the unit below. However, he is not aware that it is cracked. I also advised him that the prediction is for severe storms today (60%). He advised me that he will attempt something today, even if it is temporary and agreed to call me on my cell phone if he does make repairs.

If it rains, without repairs I am certain we will collect additional water and that [my neighbor] will also be knocking on our door to complain about leakage which [he] insists is from our Unit.

Please advise me of what further action I am to take. However, if this is not resolved by July 29, rest assured that I will unilaterally take action to resolve this and fix the roof, chimney or whatever is necessary to stop this problem.

Sincerely,




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