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
Showing posts with label Residents of Change. Show all posts
Showing posts with label Residents of Change. Show all posts

Saturday, January 30, 2010

Budgeting 2010, Part I

8 comments
I received my "official" 2010 BLMH budget via the mail. I also have a spreadsheet that was made available to unit owners who attended the January(1) association meeting.  As I stated in an earlier post, I refrained from publishing until after the board decisions had been made and after they had released their "official" data to us, the unit owners.

The association spreadsheet provides a glimpse of the proposed and actual budgets for 2004 to the present. Only "2010 budget" information was included. I assume the "actual" information for 2009 was not the audited data for the year, and so is possibly "preliminary" data.

For your information, here is a chart I made of the Operational and Maintenance expense portion of the budgets.











You will notice a spike in 2009. I suspect the actual for 2009 includes the expenses for concrete, landscaping modifications, etc. which were associated with the roofing and driveway projects. As near as I can surmise, the spreadsheets do not indicate the amounts spent on reserve items in 2009; for example, roofs and driveways. Or, if they do, the amounts are buried within maintenance items. However, no clarification was provided.

One item of interest was the expenditure for "Grounds Maintenance" which was nearly 59% greater in 2009 than it was in 2008 (3). The actual difference was $16,423. This is not a trivial amount. I am not aware of the explanation for this variance. Was this a one time event? Is it related to the driveway and roofing projects of 2009? Our 2010 budget increases the amount for this category by 12.4% above the actual expenditure for 2009.

You will also note that expenditures for operational and budget items continue their upward trend. Several items of interest here. First, the budget adapted for 2010 is identical to the budget for 2009. However, the actual costs for 2009 were 3.96% greater than the budgeted amount for 2009. Nonetheless, our Board of Managers decided that the 2010 budget will not be based on the "actual" budget for 2009. So it appears to me that we may have a possible 3.96% shortfall built into the operating and maintenance budget for 2010.

Second, even though costs continue their upward trend, the board has decided to hold our monthly fees at the same level as 2009. So the question is, if costs do increase, where will the funds for any budget shortfalls come from? My guess is, from reserves if the board can find a way. Third, this budget is after the great uproar by that group called the "Residents of Change" and their vow to go over the budget and bills "item by item".

Here is a graph of our actual expenditures, with 2010 using the amount projected by our Board of Managers. You will note that the trendline is continuously upwards. From the "actual" in 2004 to the end of the trend line in 2010, the trend in increasing at 3.35% per year. However, our association is budgeting for a 0% increase in operating and maintenance expenditures in 2010. I think there will have to be a few budget cuts to accomplish that. So where will those occur? I suppose our Board assumes that the annual inflation rate, which is currently 2.7%, will have no impact on us. In other words, energy, contractors who held the line on costs last year and so on, will not pass along their costs increases to us as the economy moves out of recession and expands. All  costs will be exactly the same as that budgeted last year (2), and therefore will be nearly 4% less in 2010 than they actually were in 2009. Hmm, I don't think Com Ed is going by that play book.











Please don't make the assumption that a 4% fee increase was required in 2010 to meet rising costs. That portion of the budget allocated to operating expenses and maintenance is about 75% of the total annual budget. So, if the amount allocated to reserves is a constant amount per year, then our total budget shortfall will be about 3% in 2010, using the data provided by the Board of Managers.

According to the Balance Sheet dated November 30, 2009 as of that date, BLMH had a surplus of $6,643 for the year to date. I am uncertain if that Balance Sheet reflects the expenditures for roofs and driveways in 2009. I hope some of this becomes clearer with the balance sheet for the calendar year ending 12/31/2009. You will recall, the driveway projects for 2009 are incomplete and were scheduled for completion in 2010. Of course, our new Board of Managers may choose to go in another direction, to save funds. I understand another "reserve study" has been ordered by the Board of Managers, as announced at the January(1)  association meeting. Obviously, the board is trying to find a way out.

I'll be publishing additional information on the adapted budget and I will also be publishing my projections for the driveway and roofing projects for BLMH. I had hoped the Board of Managers would have provided us with this information but they apparently chose not to, or did not do the analysis necessary. No matter, I have done mine.

==========================================
Errors and Omissions

(1) In the original post, the December meeting was cited.
(2) In the original post, was mis-spelled.
(3) the original post compared the 2009 budget.**

**With kudos to a sharp pair of eyes!

Monday, September 28, 2009

Where To Go From Here? September 28, 2009

1 comments
I’ll be posting the coming events but first, I have to acknowledge that I did not publish the notes of the meeting of September 10th. I did type these, but the latest incident of violence against me intervened. I will publish those notes and eventually, our Association will produce a “formal” or "official" website which will publish a version of those notes, or so we were promised a year ago and this was again stated by our Communications Director at the annual meeting. However, no dates were given. Running a campaign is the latest in a series of more important tasks.

As to the latest incident of violence, which occurred the night of September 16th, I did send a letter to the management company and to the board, but there has been no response. As I recall, the big campaign issue last year was “about being heard” and at that time our Communications Director stated that the “current board allows no communications”. Seems to me that this has now come to be true.

So, preparing that letter and meeting with police, etc. took some of the time I would have allocated to publishing the meeting notes. But that was one of the intentions of this series of attacks, wasn’t it? To attempt to silence me, a candidate, before the election, to get a continuing message across, and to disrupt my life.

After a year under the rock, er, ROC and now that we are beyond another election, I am wondering how the latest version of enlightened governance will manifest itself. According to the latest political missive of our Communications Director, it will “cultivate a fresh mindset among our community leadership that encourages rather than stifles the individuality of our homeowners and places the highest value on sincerity, honesty and respectfulness.” From my experience, it would seem that “individuality” is to be tolerated only when it conforms to some official viewpoint.

Earlier this year, “injustice” against a unit owner was a big topic for our Communications Director, and of sufficient personal interest to make it worthy of disrupting an association meeting. Supporting people who break the rules and the regulations seems to be something that activates her. But “injustice” doesn’t include the string of violence against me. There are several subtle and not so subtle messages that are being conveyed here. 1) I should be a member of the ROC, 2) I should be a member of the Neighbors Club, 3) I voted for the wrong board members, 4) I have associated with the wrong board members or former board members, 5) I openly stated at the most recent budget meeting that I was in favor of an assessment increase, in defiance of the Communications Director, who voted for a 0% increase, 6) I openly supported our Architectural Director and provided volunteer services for our roofing and driveway projects, 7) I have criticized our Communications Director for disrupting an association meeting, 8) I have criticized our Communications Director and our Landscaping Director for their activities which have stonewalled or delayed our driveway and roofing projects. 9) I didn't roll over when our Landcaping Director accused me of accepting special favors so maintenance would be performed on the building housing my unit, and I won't accept personal responsibility for the poor real estate sales in the area, and 10) I had the unimitigated gall to be so much the individual as to publish all in this blog. 11) Finally, for all of the above and other real or perceived transgressions, I deserve these attacks, which are to be ignored and allowed to continue. Looking the other way is collusion, I am told.

Returning to more important matters regarding this association, if our Communications Director practiced what she preaches, we probably would not have lost our President earlier this year, and with her, her husband who would by now have our “official” website up and running, and the driveways would already be in progress. But we do get nice slogans. The “cultivate a….mindset” statement is one that is frequently used in yoga and meditation. For example, “Cultivate a Positive MindSet Through Meditation” (reference 1)

The statement of placing “the highest value on sincerity, honesty and respectfulness” is probably borrowed from Sri Sri Ravi Shankar or some other mystic. For example, Sri Sri says: “At this time we need only to cultivate love and understanding……The timeless values of religions are……Nonviolence…..Friendliness and cooperation… [and] Integrity, honesty and sincerity.” (reference 2).

This also refers to ontological structures, which “manifest themselves in terms of the intangible human traits that we live by, such as patience, humility, tolerance, deference, non-action, humaneness, concern, pity, sympathy, altruism, sincerity, honesty, faith, responsibility, trust, respectfulness, reverence, love and compassion.” For a typical discussion, see the article from Buddhism Today (reference 3).

Reference:
1) http://www.specialtyansweringservice.net/articles/meditation/Cultivate-a-Positive-MindSet-Through-Meditation_26278/
2) http://sawf.org/newedit/edit02032003/aol.asp
3) http://www.buddhismtoday.com/english/sociology/014-humanright.htm

Wednesday, August 12, 2009

Too Hard on the ROC?

0 comments
First, I really like it here, at BLMH. I like my neighbors. All are friendly, some stop to chat while they are strolling with their pet. Some are quiet. Some are young and single, some married couples and some are retirees. Some of my immediate neighbors help each other and we share chores. Some help me with the snow shoveling, when we get that dusting, or more that isn’t handled by the professional service. Some of my neighbors vacuum the halls. Some roll in my recycling bin on Friday, if I arrive late in the evening. Some do nothing. That’s the way it is, but they are all friendly and some are congenial and would probably be fun at a party. This has inspired me to share homemade cinnamon buns with them in the cold of winter. How else to say “thank you” with some grit to it? As a good baker, that’s one small way I can do so.

Some slow down as they drive by and some even wave. Some speed on by, preoccupied. Most are courteous and are obviously simply going about the business of living their lives, as I am.

I like the 40 acres of well cared and landscaped grounds and buildings. In the nearly 9 years I have been here, maintenance and decorating and painting has been at least a “4 out of 5” as they say. The financial wherewithal of the association has improved, remarkably. How else to describe a nearly 5 fold increase in reserves over 10 years, while simultaneously funding and completing reserves projects? This was accomplished because of the partnership that existed between our Board of Manager and our unit owners.

So what’s the problem? I’ve attended a few association meetings and frankly, at one point I thought I was attending the wrong meetings, or I was on another planet. I have observed a half dozen or so people whom I have come to view as chronically complaining individuals. But then I realized that they and their point of view, which they so vigorously promoted, was less than 2% of the owners here at BLMH. But they were and are persistent.

I have dealt with, lived and worked with people who are chronically dissatisfied or unhappy. Some work vigorously to prove their point. The most persistent, are somewhat like the honey bee. Yes, there is sugar and honey there and that is the attraction. But there is also a stinger. The most bitter and virulent, will hide that stinger but the moment you turn your back, they’ll use it. I’ve concluded that’s the way it is in our society. There are people who are what they seem to be and there are others who are not. We can all operate that way. Life is a choice, and allow me to demonstrate.

I sometimes think that living here at BLMH is a metaphor for the entire country. We have a great life, better than 90% of the people living on the planet. So what is the problem? I have concluded that some people are never happy. Some are bitter, and work hard at promoting their position. Some, like rebellious teenagers who never grew up, like to play the game “I won’t and you can’t make me”. As we age we become more sophisticated, some of us become very proficient at the game of “life sucks” and combine it with “I won’t and you can’t make me”. The best are adept in enrolling others in their causes, both for good and for trouble. We all need or should have a purpose in life. The question is, are our actions to be life affirming or not?

Our association is a microcosm of society in general. We have people who are willing to participate, and we have people who are willing to tear down those who participate. Critics of this blog could say that is what I am doing. However, last year, I suspected that a few dissatisfied individuals were attempting to run their racket and take a dump on my lawn. I decided to stand up, although I fully realized in doing so I would become a target and a magnet.

Recently, I have been asked why I was being so hard on the group known as the ROC or Residents of Change, and specifically their board members. I sometimes take a stand when I am confronted with the forces of negativity. I don’t think I’ve been unfair in my critique. However, to provide a serious reply requires presentation of my perspective. I also direct the reader to my post of September 27, 2008. From my perspective, I’d like to think that people, after creating quite a ruckus, disrupting meetings, running a campaign and then being elected, would read their campaign literature, the Illinois Condominium Act, their signed agreements and oaths, and then act accordingly.

Apparently, expecting people to do what they agreed to do, may be too much to ask. Making broad declarations and promises was easy. Developing concrete plans is more difficult, and carrying them out to fruition is more difficult still. The world is full of idea people. I say that based on my experience and many years in business. I too have a lot of good ideas. But it takes a lot to make ideas a reality, and that includes a structure for fulfillment, which is a topic for another post.

I’ve been told that if it’s so easy, why don’t I try running for the board? First, it isn’t easy. That’s why I am always skeptical of people who make big promises with little to show at the time the promises are made. Secondly, working on the board is an open ended agreement. My experience with people of varying capabilities indicates that taking on these types of agreements can be like stepping into a black hole. Take it on and expand to fill the void and then what happens? You get accused of micro-managing. I know, I’ve been there and done that, as they say.

The truth is, it is impossible to satisfy everyone all of the time. So anyone who steps up to the plate and joins the board with the intention of keeping people happy is destined to failure. The alternative, which is satisfying a small but very vocal and visible group is worse. It requires the board member to abrogate his or her responsibilities. As a unit owner, simply because you don’t attend association meetings or harangue the board doesn’t mean you are completely satisfied. Nor does it mean that your needs as a unit owner should be put to the rear of the line. But it is so easy for a board member to acquiesce to that in-your-face minority and that is the pull.

I was recently asked why it was that my window sills were upgraded. I was asked “who did I know?”, and the implication was that I get favored treatment from the board. I have a B unit, so my window sills were not upgraded. I am expected to replace my dormer window when the roof is replaced, just as is expected of everyone else owning a B unit. So much for “favored treatment”. I have pointed out that the juniper, that is laying on its side at the front entrance has been like that for 9 years. As far as I know, none of my fellow residents have made a request about this, either. But that is the level of jealousy and backbiting that exists, even among our board members, one of whom was the source of the question. If there is an issue or a position, I suggest that board member do an analysis of the work orders for the past 5 years. I too would like to know at which addresses the money is spent. However, I think developing a criteria and prioritization scheme for maintenance and landscaping for each and every address would be a better use of time. But if this is an issue, there are ways to address it.

Another reason not to run for the board is the fact that I’ve never been particularly interested in bird-dogging people. I'm not talking about managing contractors, which is an altogether different thing. I’m even less interested in micro management. If someone drops the ball, the solution is simple, they should clean up the mess and then get on with it. If they are intransigent, and unwilling, or persist in doing it their way, that simply adds to the work load, and creates a drag on the team. As I stated in another post, teams are easy if everyone can pull the oars together. But if board members can’t or won’t pick up the oars, or lack fundamental skills, won't keep agreements or follow directions, then there are limits to what can be achieved. Again, that’s the problem with big promises made in a vacuum. Once one is seated in the boat and told to pick up the oar, then and only then does the real work begin. Politicians are adroit at campaigning, and spending other peoples money. Based on a lifetime of careful observation I say they are terrible at getting the job done. They are also skillful at creating misdirection and telling others what they should do. One solution is to acquire staffs and delegate. That’s why government grows and bloats. So do other organizations.

I have an issue with the formation of any group in the association which has an agenda, and then attempts to place hand picked candidates on the board for the purpose of furthering that agenda. In actuality, candidates so placed and elected do not have a mandate to do anything other than to operate for the benefit of all unit owners. They are required to operate in a manner that is uniform and fair to all unit owners. They cannot represent or speak for a select group of unit owners, no matter what promises were made. To do so is inconsistent with their fiduciary duties, their oaths, agreements and the Illinois Condominium Act. It requires them to operate in a consistent manner and with integrity. So the very premise of such a group seems counter to the purpose of an elected, impartial representative board. Certainly, promoting the agenda of a few is not operating for all of us. But that group is still here, and now, having placed their “chosen” candidates on the board, they have expected action on their agenda. In political circles, that is called payback, isn’t it?

At present, this group may have changed its tactics. We now have a “neighbors club”. It may or may not be affiliated. Time will tell!

I understand this club is currently promoting the neighborhood picnic. But I also understand that the circulars for the picnic include the statement that we can “keep our community friendly and beautiful”. So is it to be a social club or something else? Possibly something else. A party sounds fine, I just hope they don’t band together and show up at association meetings demanding painted garage interiors, benches, new and expanded landscaping, new patios or expanded paving around them or whatever it is that meets the ambiguous definition of a “beautiful” community. I would hope that the club's definition includes unit owner decoration of patios within the rules, picking up street trash and retrieving and stowing their neighbors trash and recycling cans on Fridays, or some such. Of course, perhaps we are entering the next phase of the new era at BLMH, and the “Neighborly Police” will be there to assure that residents toe the neighborly line.

Sorry to sound cynical, but I am convinced that there are no limits or boundaries for some of these people. I have a few nails retrieved from my automobile tires, as evidence of what I speak, and the card of the police officer I called to discuss this with, as well as the receipts for the repair and replacement of the tires.

I do understand that unit owners will have complaints, and it is human nature to sometimes expect special treatment. Making requests or demands is one way to have things done “your way”. But it can be carried to extremes. If you don’t get your way, then create a disturbance. Raise the banner of “unfairness” of “injustice” or “oppression” etc. Throw the buzz words and slogans around and blow off steam. Stir people up and get agreement. There are always a few willing to agree that life is terrible, no matter how wonderful it is. That however, should not result in action by the board of managers. Nor should board members champion such an agenda. I do expect the board of managers will listen, within time constraints at meetings. But every unit owner should be given his or her minute. The members of the board are not required to act, unless the resulting action were something that would be, should be, and will be done for any and all unit owners, is consistent with the rules and is within established and projected budgets. Allowing every unit owner attending an association meeting equal time to address the board of managers seems an appropriate expression of being neighborly and courteous, but at many meetings I barely get 30 seconds to address the board and sometimes no time. And I’m not alone. Why? because my time was surrendered willingly or unwillingly to another unit owner who took more time, or there were long rants about injustice, etc.

I also understand that things “can be better”. As an advocate of “continuous improvement” I know things can ALWAYS be better. I also know it takes resources. I have an expression which I have used from time to time with clients and companies that make certain types of demands. It is “we can do anything, all that is required is time and money”. Our board has limited time, limited resources and the association a defined and limited budget. However, the ROC got around that by saying things like “keeping assessments as low as possible”, but never gave me a definitive answer of how they would achieve that. The implication was that the board was lazy, inefficient, wasteful and possibly stupid, and so too were our contractors and management company. But the ROC knew how to set things right! Fire them all! Well, I don’t see ROC board members resigning when things go bad, or did I?

I also believe that improvement begins with each of us as individuals. I am always skeptical and cynical of people who act in such a manner or imply that improvement begins elsewhere. I know I can do better. I’ve spent thousands of hours and even more money on “self improvement”, time management, communications and other courses, and I’ve put a lot of what I learned to good use. So I’m not going to wait for someone else to step up to the plate. Nor am I an idiot who will willingly walk into the buzz saw, nor am I a door mat. Improvement begins in my life and my unit and it includes how I treat my immediate neighbors, my board members and my extended community. It includes simple things such as being respectful during association meetings and sharing the floor by limiting one’s time in front of the board. However, throwing buzz words around is very easy. “Walking the talk” is the difficult part. From past experience, I know that when I am up against the wall, I am less gracious. But how often are we up really against the wall? How are we as neighbors at other times?

Saying “things should be better” is a very ambiguous statement and I do not and will not adhere to the position that such a statement is justification for disrupting the operation of the association. I think there needs to be a prioritization. But apparently, I have different priorities. That is why I will never agree that an ambiguous and subjective agenda in which “we should all be more neighborly” is the appropriate criteria for the operation of an association and its board of managers. Neighborliness, in my eyes, is a worthy goal for the residents and it is their responsibility to make that happen by living their lives in a manner consistent with that. Demanding that the association operate by some undefined standard of “neighborliness” is ridiculous. We do have rules and regulations and those do define some aspects of acceptable conduct in the association. So when people come to association meetings and harangue the R&R Director about the perceived “unfair” enforcement of the rules, I think they want it both ways. Rules that they see as unnecessary are to be eliminated or modified. They want the association to adhere only to their perception of “being neighborly” and will attempt to change the rules to get to that place. But doesn’t being neighborly include living in a manner such that the social norms, and that includes the rules that are in place, are adhered to? Or am I confused again?

Some people are still making declarations about how “mean spirited” and un-neighborly it was to have the semi-trailer that was parked on the property towed. They are entitled to their opinions but they should stop beating that drum. The “neighbors” could have alerted the driver to move the truck out to the city boulevard, etc. etc. But they didn’t and the vehicle was towed in accordance with the posted signs. They could have quietly passed the hat, but they didn’t. End of story.

Certainly, residents should be neighborly and should pursue any hobbies they choose. If they want social activities, they certainly don’t need anyone’s permission, as long as such activities adhere to the association rules. They don’t need anyone’s permission to have a dinner party, BBQ on their patio, walk the grounds and say “good day”. As far as I know, they can paint their rusting air conditioners, keep their patios tidy, retrieve their neighbor’s trash cans on Fridays, help with snow shoveling, pick up discards in the street, keep the speed limits and so on, all within the rules. We also have a wonderful park adjacent for public parties, etc.

But that park apparently isn’t convenient or adequate for the parties some residents envision, nor apparently is the restriction on garage sales. So they pump up their elected representative(s) and come to the meetings and disrupt them. Sure, all of this would be nice. So would free beer and margaritas at the northerly entrance every Friday night. It seems it is the position of some that “neighborliness” can be discarded as soon as it is necessary to run an agenda to get whatever it is they want. Lest we forget, our board members are our neighbors too. So don’t they merit the same “concern and respect” that anyone else living or who has ownership in BLMH should get? Well, apparently not. I personally think the high point of foolishness or hypocrisy was reached when board members were attacked because they were “un-neighborly”. So, in the name of someone’s pet cause, it’s apparently OK and justifiable to trash some of our elected volunteer board members, and past board members. How quickly we can put our standards and slogans aside when it suits achieving our objectives.

The ROC agenda included an association “where we all can be heard”. Based on the past 11 months, it seems that agenda was really about an association “where a select few of us can be heard and get our way.” What about a fair and uniform treatment of all unit owners? That’s what is expected and required. There was a lot of noise about “open communications”. The ROC stated that “residents are virtually prohibited from expressing their thoughts to any board member.” They went on to say “Under the current directorship of our association, there is no mechanism in place to receive residents’ suggestions, comments, general questions, and yes, even complaints.” I didn’t agree with that statement, but I will talk about how it was and is. At the time these statements were published, when I inquired as to why there was no ROC website in which all unit owners could be informed, I was told, in writing that “The board does not allow any such communications; therefore there can be no website unless the board allows one.” You can imagine how surprised I was! This blog was up and running and I had, and still have, no one’s permission. This led me to wonder, what was the real reason no such site existed? One possible answer, was a lack of technical acumen. Another was a lack of true commitment to open communications.

Here we are 11 months later, and the same “underground” communications pipelines exist, and of course, so does this blog. However, this blog is open. The pipelines are not. The association does have a larger newsletter with “interesting” articles on history, architecture and carefully selected residents. In 33 years I may make it to the top of the list. I suspect I’ll never meet the rigorous criteria. As requested in letters and emails to the board, I would first like expanded statements on issues, the challenges in running the association and so on from current and previous board members with minimal editing, but that email was never acknowledged or answered. Of course, the excuse could be made that “we, the ROC don’t control the entire board and we are not allowed”. I was given that excuse nearly a year ago. I didn’t buy it then and I won’t buy it now.

I asked the ROC candidates to explain their statements about a repressive board. This was what they wrote: “Well, the definitions of repression are to hold back or keep from some action; to control so strictly or severely as to prevent natural development or expression; to impose an inhibiting discipline that discourages free thinking. How much brighter our community could be if we lived under the opposite umbrella of progressiveness, enlightenment, open-mindedness, tolerance, cordiality, and good humor.” No specifics or examples to demonstrate this open ended statement were provided. Come to think of it, isn’t this blog a natural development or expression? However, my written request of June 19 for consideration of the blog as an “official” one has never been given a response by anyone on the board. I even offered to engage in a discussion about what would be suitable content. However, I was told by one of the board members that my blog is a problem.

I wrote the ROC about communications and this is part of the written reply: “Call it just plain old common courtesy, but we believe that every question from a resident should be answered, even if it is simply to say that their inquiry was received and someone will get back to them regarding it.” Well, in the 11 months since, that I’ve written letters and emails, only two have ever gotten a response. Even direct emails don’t always get acknowledged. It’s my conjecture that my letters, or emails and this blog don’t adhere to the official party line. Perhaps I’m providing too much “free thinking”. That’s one possible reason for being ignored. It may be that they don’t want to hear from me, or, what I say doesn’t fit their opinions or I simply don’t count as I have never been a ROC member or whatever their current name is. Oh, and should you wonder what I am, it's simply this; I'm a BLMH unit owner, just like 336 others, most of whom live here and are my neighbors.

A lot was made about assessments. Official ROC statements included one about outraged unit owners. The data, including that published in this blog simply doesn’t support the issues raised by a small number of unit owners nor the position taken. In a written response from the ROC candidates on the issue of assessment increases, two statements stood out. First, I was only “one of two” unit owners who had brought up the issue of assessments. Not consistent with statements about “outraged” unit owners, and second, it was the official ROC candidate’s position that rather than having assessments as high as possible, they should be as low as possible. Consistent with that statement, one of the newly elected ROC candidates immediately voted for 0% assessment increase. This even though there were projected COLA increases of 5.8%, a barely started re-roofing project (only one roof of 44 completed as of 1/1/09, I believe) and the hard work of the board the past 10 years to build up reserves. But I guess we don’t need facts or budget analysis to make these incendiary statements.

I’ve never had a single ROC member and that includes the board members, ever discuss my published financial analysis. I did once receive a very brief comment. One of the things you will notice about the analysis, is that it took about 20 years to get to the financial state of this association in 1998. It took another 10 years to reverse the course and correct that problem. I conclude that making what appears to be simple changes may require, if they are allowed to continue and accumulate, years to correct. That is why I am very apprehensive when cavalier judgments, evaluations and declarations are made about our assessments, or our management and maintenance companies. Simple annual changes were made to the association finances over a period of 20 years. I am sure a lot of people were extremely pleased with the low assessments. One of our ROC board members made the statement of being here for over 20 years. During 10 years of that period, our finances eroded, and it took another 10 years to correct this and get to where we are today. In fact, for six of those years, the assessments increases were 0%, exactly what was wanted by one of the ROC board managers last year.

I’ve never seen or heard a single ROC person ever have anything good to say about the correction of the finances and the incredible achievement of this association. Quite the contrary. So I say they are not straight about these things. In fact, if the approach to be taken by the board is to satisfy any and all unit owner complaints, which seems to be the position of the ROC, then I say that they would like to return to a direction in which the association was headed "in the good old days", which if uncorrected would have resulted in bankruptcy or very large special assessments. In 2001, I was extremely alarmed by the financial condition of the association before I purchased. I wrote a long letter to the management company and this resulted in a response, including a long conversation with our current professional manager. He assured me the board was working diligently to correct this situation with his assistance. He assured me that the board was opposed to special assessments. He provided earlier financial data to demonstrate that the board was not only committed but was taking action consistent with that stated commitment. On review, I decided that he and the board was aware of the need to work on assessments and reserves and they would keep their word. I then purchased. It took in all nearly 10 years to correct that situation. That board, some of whom were "run off on a rail" as the expression goes, did keep it's word, the reserves have been incredibly increased and there have not been special assessments. Considering the reward the deposed board members got, I do have to ask why on earth would someone ever run for the board in this association? I also want to state that in 2002 I cautioned that we should be prepared for fireworks a few years down the road. And so, here we are!

I do have an answer to the question of why would anyone run for the board, and it is contained in the beginning of this post. It includes my neighbors and the courteous, friendly and non-complaining people who live in this community, the majority of whom I have concluded are quite happy to be here. They pay their assessments and they know that they are not entitled to anything more than any one of us. It also includes the members of the board who work hard and provide time and talent to get the job done, and who make it a point to represent each and every unit owner equally, impartially and fairly.

On the subject of budgeting, I would think that taking actions consistent with the ROC position of “keeping assessments as low as possible” would result in performing maintenance and growing reserves first, and then, and only then and if the budget included unexpended funds earmarked for that specific purpose, would new work or expanded projects be considered, and that includes landscaping. Sure, some of this may be obvious or “black and white”, and there is also “shades of gray”. I think it is common sense and it isn’t too difficult if the goal is to “keep assessments as low as possible”. That means spending as little as possible, which means performing needed maintenance and repairs, and tabling everything else. Gray is adding embellishments, or expanding projects. For example, a black and white area is maintaining the grounds. Gray is adding shrubs or flowers, especially if sick or dying trees have not first been removed, which means those expenses are yet to be realized. Black and white is the numerous reserve based projects such as the roofing replacement. Gray is also comparing 30 year roofing to 15 year roofing. However, I can comprehend the attraction of a 30 year roof. The existing roofs must be stripped. So either way, each roofing method includes labor, materials, tools, insurance, overhead and profit. The basic difference between installing 15 year or 30 year shingles will be the cost of materials. The other costs remain pretty much unchanged. So what would you do? Spend a bit more to double the life of the roof, or go low ball and spend again in 15 years? The Architectural Director stated his case and the board has, for the moment, decided to go with 30 year architectural shingles. But the next board may reverse direction and go for the lowest possible cost, which means the cheapest materials available. That would be entirely in keeping with the ROC’s published position to “keep costs as low as possible”. So if they do that, unit owner’s shouldn’t be too surprised.

For each project, whether it be landscaping, concrete, sills or roofs, there are costs and benefits to be compared. All needs and projects must be prioritized. How else to avoid exceeding the budget? Exceeding the budget assures the need for higher assessments, which is exactly the opposite of “keeping assessments as low as possible.” It also seems that some people like to complain “what do we get for the money we pay to the association?” The same person who made that statement at a recent association meeting recently pointed to an unpainted chimney and quipped “another poorly done job”. I pointed out that the chimneys probably weren’t part of the painting contract but are most likely a part of the roofing project. The complaints then moved on to something else. Some people will never be satisfied. But why would any member of the board then act on their ongoing complaints? Our board is not comprised of puppets, who are to dance every time a unit owner shouts. Our board is in the business of managing the association, with the input of our professional managers and our professional maintenance and landscaping companies.

Black and white is replacing driveways pointed out by the management company and reviewed by the board. Black and white is modifying landscaping to prevent water from entering garages. Black and white is replacing roofs on schedule. Ditto for roadways. Black and white is repairing faulty sidewalks, or raising those that are under water during storms and collect mud. Gray would be adding benches, adding landscaping or having the association paying for unit B dormer windows, etc. Any of those “gray area” items should only be accomplished after other work for the year is identified and full costs are known. That’s common sense, isn’t it?

We have a roofing project underway. We don’t know the condition of the roofs under the shingles, nor do we know how many 4x8 plywood sheets will be replaced. We don’t know the condition of the framing and wood in the vicinity of the existing B unit dormer style windows. So we really don’t know the full costs of the project which will replace these roofs. True, we did accept bids and contracts were awarded. So we do know the base costs. But that is all that we know with certainty. What about the cost of coordinated landscaping modifications for drainage improvements? So it is inaccurate to say that the roofing project will cost a certain amount, as was published in our newsletter. That’s why the Architectural Director was unhappy that information was published in the newsletter and said so during an association meeting. So, has our Communications Director now published what will be construed to be a promise about how much the roofing projects will cost, and when the total costs are added, which will certainly be higher, will unit owners or others raise a ruckus about “cost overruns”? The alternative, which is to assume the amount of the extras, etc. and publish a higher estimated figure, is also risky and inaccurate.

What else is unusual about the project? Well, specifications were written and reviewed and issued. The bids that were received were compared and a successful bidder was selected. It’s usual to compare price, features and performance, which includes warranties. On that basis a contract was awarded. However, it is not necessary to tell the unsuccessful bidders what the award price was. Why not? Because that tells the unsuccessful bidders, and anyone else who gets their hands on that information, exactly how low they must bid to get the work. That may prevent us from getting the lowest possible price in the future. But, our Communications Director made the independent decision to publish this data. I know because this was discussed after the fact during as association meeting that I was present to. Is this a big deal? Well, who knows how much pencil sharpening the unsuccessful bidders would have done to get the next roof. Now we’ll never know. Using a little arithmetic, I can conjecture a difference of $100,000 or so. That’s the possible amount that a little pencil sharpening for pricing of 40 roofs could achieve and that is a big deal.

The ROC can make a lot of grand statements, and even grander shows and demonstrations. But the truth is, it’s very easy to flush money if you don’t know what you are doing, or, if with the best of intentions, you insist upon doing things your way and ignore the resources around you.

One of the big upsets for some unit owners was the “unsightly” snow removal equipment parked on one of the cul-de-sacs. This came up during the unit owner portion of an association meeting. Well, I did a little research. One of the reasons the equipment was parked there was because the garage, which the previous board president had arranged to be available, was not renewed. But our new board members didn’t know that. They didn’t need or want the input of the past president, either. So they did it their way. Politically, it was a triumph as it demonstrated again how ineffective and uncaring the remaining board members were, or so we sitting in the audience were led to believe. But who was really ineffective?

Many of the projects, including both architectural and landscaping aren’t prioritized. What’s more important; doing roofs or adding shrubs? What are the timetables? That determines how rapidly the reserves have to be accumulated and the rate at which they will be depleted. I’ve completed a spreadsheet with the projections. However, without accurate data about the true and total cost of the current roofing project, to release this data would be irresponsible. For that reason you haven’t seen the information in this blog. I’ve been asked how it is that I have access and special information. I don’t. I have the same information that every other unit owner has. I have the budgets for every year one was issued to me as a unit owner. I have a slightly earlier budget, which was given to me when I asked about justification for assessment increases. I have the numbers discussed openly during some of the association meetings I have attended and which I wrote down during those meetings. That’s the information I have used for all of my financial analysis. That’s it and nothing more.

Returning to the roofing project, I do understand some of the issues. For example, the concerns about stating specifically when each roof will be replaced. As was presented during an association meeting by the Architectural Director, if next year a roof is inspected or because of winter damage it is determined replacement should occur, it may be bumped up the schedule. He expressed the concern that unit owners may take a published schedule as a “cast in stone” promise, which it is not. Furthermore, future boards may make significant changes to any and all projects, or add new ones and change the schedule or order of events. If we have a new management company, they may also take a different tack. Prior to 1998, building the reserves seems to have been a very low priority. With the current emphasis on lowering assessments, our new and future boards may again change direction.

The final comment on the roofing project. It currently includes insulation. There was a lot of discussion at association meetings about this and about adding gutters. The problem with gutters is they fill with ice, as we all have noticed above our driveways each winter. Freeze thaw may result in ice dams. Then there are other problems to contend with. One of the causes of ice dams is poor roofing insulation. So the current plan to insulate may provide the opportunity to add gutters. A side effect or possible side benefit. However, I would suggest caution, because some of the ice formations I have seen have been extensive, and my building did have an ice dam above the garage a few years ago, which is unheated and uninsulated. In one of those fluke weather phenomenon’s, the gutter was frozen and there was ice and snow on the roof and we got a significant rain fall. Fortunately the water simply backed up on the roof and ran under the shingles and into the garage. There was no damage to any unit and only minor repairs were required in the garage. But what if this had occurred on another section of roof above the occupied units? That would have been an altogether different outcome.

On the subject of prioritization and prioritizing landscaping, we have many ornamental trees, with lifespan of 25 to 30 years. When will it be necessary to replace these? Is this part of the landscaping plan? Do we have a prioritized and comparative list of every address with needs in terms of landscaping, drainage, roofs and driveway replacement? If not, why not? I attend association meetings in which unit owners attend and attempt to strong arm the board into making concessions to project timetables or add embellishments. For example, pavers placed alongside patios were, in the past, the unit owner responsibility and at unit owner expense. But today we have requests for the association to provide these. That would seem to require an increase in the landscaping budget, or reducing landscaping in other areas to accommodate this escalation of association maintenance. Sometimes it appears that “the squeaky wheel gets the grease”. At other times, it seems to be a political circus, where those in the know or with clout or the ear of the board get things done. I’ve been accused of having such special access. However, the last request of any kind I made was to fix a problem with a chimney. That was about four years ago. I also requested a look at the water sometimes entering the garage. I was told during an association meeting earlier this year that the problem will be corrected when the roof is replaced. I was asked my opinion about unit owner responsibility to pay for a new window when the roofing project is done. I said that I thought that was appropriate and consistent with the fact that windows are the property and obligation of individual unit owners. I am a B unit owner and the window is my responsibility.

Then there was the apparent attempt to fire our maintenance company and professional manager. This is still a work in progress. Some people are resolute and are determined. Apparently, promises must be kept. Some of the association meetings I attended were as close to a kangaroo court as I have ever experienced in my lifetime. I understand where some people are coming from. Go for the big contracts and tackle them. Get the cheapest labor possible. The rationale seems to be, “We don’t need specifications and we can make do with a handful of handymen.” Just go for the lowest bidder. I know of unit owners who routinely use unlicensed and unbonded handymen to perform work in their units. That is their choice, under current rules. However, it is not a good one. If there are damages, or injury, the unit owner will be responsible. However, a business such as our association cannot operate that way. Our contractors must be licensed, bonded and insured. That includes at an absolute minimum workmen’s compensation and business liability insurance and for certain work, city certification. It also means trained professionals, but certainly a laborer is appropriate for certain tasks. Any other position by members of our board I construe as risk taking and irresponsible. But there are those who insist it can be done in a better way. Well, I suggest they deal with their immediate board responsibilities and once they have demonstrated impeccability and superior performance in that area, they will then be ready to be considered to take on larger responsibilities.

Attempts to replace the management company were also of concern to me. I frankly cannot understand the alleged unresolved issue with communications. If I have a supplier who is capable in certain areas and has a weakness, what is the rational response? Fire them? And hire whom to replace them? Wouldn’t it make more sense to determine how to improve the communications, even if that means hiring a 24 hour answering service to direct calls? Or is there an even better way? I believe there is more than one way to accomplish a result. But, the solution was always “fire the management company!” That type of approach is the core of the ROC approach; get rid of the board, get rid of the management and get rid of the maintenance company. Doesn’t that seem a bit strange? Is it possible there is another agenda at work here? Or is this simply an expression of a hypocritical approach to “being neighborly” as applied to our suppliers and contractors, wherein we choose not to work with them, instead we choose to bully, manipulate and dominate them?

Where I come from, it is expected that you will get the job done with the people and materials on hand. You determine what is missing to prevent getting the job done and you provide that. You look for the weak link in the chain and you strengthen it. When you walk in or when things get difficult, you don’t jump up and declare “This is completely unworkable and I need a new “whatever” because it’s impossible to get my job done.” That is misdirection. Rather, what is required is an honest and open appraisal of “what is missing”. Only after exhausting the alternatives do you sit back and say “it’s unworkable”. Our board is qualified by their own written statements. We now have members of the board of managers who were elected last year and were hand picked by the ROC because of their skills and that included “back-grounds in conflict resolution and team building.” Apparently, a part of the team building included the decision to ignore our replaced board members, to exclude former members from the “team” and so forth. With many years of board experience, I would think that our former president would have been an invaluable resource and that people who are skillful at conflict resolution and team building would find a way to pick her brain. But no, there was no such initiative on the part of our new board members. Yet, the ROC candidate campaign literature stated. “There is no bad blood or contentious history between us and board members.” They didn’t state that there was no bad blood with the management company or our maintenance company. So perhaps I should have expected what has ensued.

Our ROC elected board members signed the candidacy forms stating they had the necessary skills to do what it is that must be done, and they went further in the campaign literature they printed and distributed. We have a Communications Director. Isn’t handling communications issues and breakdowns of any and all kinds a part of that job?

Specifications or the lack of them come up from time to time. In that area, there is no level playing field. We have some written specifications. I am unawares of specifications for maintaining our landscaping, trees and so on. Of course, we probably do get bids. What is the criteria for competitive bids? As for writing a specification, copying a bid is not writing a specification, nor is it ethical. Most suppliers issue bids which provide no additional details because they have been burned by unethical practices which include copying their bids and distributing them to competitors. So editing an earlier bid is no substitute for generating a specification. But as I have written in earlier posts and at great length, writing a good specification is a really difficult job.

Writing a specification for the multi-discipline business of maintaining a 40 acre community is a very difficult task. I’ve written some of the issues elsewhere on this blog. But the argument has been “we don’t think we’re getting the bang for the buck from our whatchamacallit company”. Usually the discussion is about our maintenance company, but the theme is pervasive. OK, that’s an opinion but based on what? I’ve prepared specifications for multi million dollar projects, I’ve evaluated and selected the bidders, justified that to the corporate owners and managers and boards, managed those projects, designed systems, etc. and I would not make the kind of grand statements that I have seen made at association meetings. I have wondered “how can they make those statements?” Where are they going with this and who are they going to replace our maintenance company with? In the absence of a specification, anyone can come in, give us a bid for $10,000 a year less, especially after we publish and discuss the existing cost details with every Tom, Dick and Harry handyman or maintenance guy in the county. But the result would be that we now have ourselves a winner. But what is the job to be done? What compromises and what “extras” aren’t included in the contract? In the absence of facts and certainty, it seems some members of the board are willing to “roll the dice” and take a chance. Is that an appropriate way to run an association?

Of course, if you think our management company and our maintenance company and perhaps everybody else is stupid, incompetent or whatever, then you can’t listen to what our hired professionals are saying because they can’t be trusted, can they? Talk about digging a hole! On the other hand, the rationale seems to be that any maintenance guy or girl who walks into an association meeting, they of course can be trusted. This is not conjecture on my part. I attended an association meeting and observed this.

If it’s all so easy, then why are the board members working so hard at getting the job in hand done? Maybe that’s because it isn’t so easy. Perhaps we’re dealing with a lot of arrogance and attitude.

A lot of time was spent in association meetings discussing a “block party”. I mean a lot of time. Finally, the ground rules for such a party were set. The problem was, a few people wanted an association sanctioned party on the grounds. Discussion was frequently interrupted by proponents of the party. Common sense told me that, hey, just go across the street on public property and have your party. But no, that wasn’t good enough. Issues such as association liability were to be ignored, shouted the proponents. Concerns about liability were apparently delusional. Boos and hisses and jeers from the audience. Well, after wasting all of that valuable time, it seems that an insurance rider was required at additional expense. Alcohol was to be prohibited by the insurance company or the insurance voided. So after all of that, we go full circle and now there is an unsanctioned party, which means no association liability, which will be held across the street. Much to do about nothing. But couldn’t it have started that way? What was the point behind the contentious meetings and grandstanding? Was it to make a statement that our existing board members were…. what? Well, I’m not sure, but when I re-read the ROC published and distributed documents, I get a sense of where they were going. And, the course they set out on isn’t yet done, is it? Currently, two of three ROC candidates who were elected remain on the board. More are probably on the way.

Perhaps it’s me, but there are days when I conclude that I don’t belong at BLMH, and perhaps I should just move on and either rent or sell my unit. Perhaps “they” are correct and I’m being too hard on the ROC. Well, I didn’t stir things up, march and make bold promises. I didn’t trash the board, our professional managers or the maintenance company. Nor do I have the position that people are universally stupid. Sometimes we may act in less than a competent manner, but we do have common sense, and we do have average skills. So what is missing? I don’t think open ended “change” is a good thing. If you do, then you must be enjoying the state of the economy.

But perhaps I am out of step with reality. Perhaps I should just stand back, continue to watch the show, and simply report what I see. After all, some people think running an association well is simple and easy. So isn’t it?

One final item. The timing of the creation of this blog has been questioned. It was close to the surfacing of the ROC. I began this blog in August of 2008 as a hobby and it took a while to get the templates completed. I did so over the labor day weekend. So the first “official” post was September 7, 2008. I’m not a website designer, etc. so I’m not that proficient. However, I have built and maintained and do maintain a website and several blogs. I find it to be not too difficult, but it can be time consuming. However, as with most endeavors, once a certain plateau is reached, the level of difficulty is reduced. This is my 80th post on this blog.

Saturday, September 27, 2008

The Future and Where to Go from Here?

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The board elections have been completed, the vote tallies are in, and we have three new members on the board. Congratulations to them. To the other members of the board and to the members who have lost in this election, I say "THANK YOU" for all that you have done to get this association to where it is today.

I began this blog as an exercise. The original purpose was to post my personal "adventures" and observations as a BLMH Condo Unit owner. During the campaign of the ROC, I became aware that the communications system in place at BLMH was inadequate from the perspective of countering falsehoods, rumors, or erroneous statements; all of the things that some campaigns generate. I decided that my blog would become a dissenting voice to the ROC so as to provide a measure of balance and fairness to the campaigning juggernaut.

The ROC campaigners ran on a slate which included improved communications. Now that the election is over I expect that they will keep that promise and provide an official BLMH website, open to all residents and which supports a true dialog between residents and the board. So my blog could revert to what is was before, a reflection of my observations in the pastoral and sometimes sleepy community that BLMH appears to be, or, I can use it to be of service to that community.

At this moment, I am inclined to become a more visible and vocal part of the residents of this community, somewhat like a watchdog. While I do want to be of service and make a contribution, this is not simply altruism on my part. As I have stated previously we the owners of BLMH are bound as a group who share shelter and a significant investment. I have a personal vision of where this association should be in 5, 10 and 30 years. I have the past promises of the board on how the reserve contributions I make will be spent. My personal financial contribution to that endeavor is about $30 each month to a fund for the declared purpose of replacing our roofs and another $16 each month to a fund for replacement and repair of paving, concrete, masonry, carpeting, and lake restoration. (This based on the actual budget for the year 2006). I want to see this association grow in a manner consistent with my vision, protect my investment and see those programs to fruition.

What about you?

Let me know where you want this blog to go. You can email me at:

letmethinkaboutthisblog@gmail.com

Friday, September 26, 2008

My Observations at the Board Elections

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We were given the opportunity to meet the candidates for the Board. This included the three candidates of the ROC.

I learned that one of the ROC candidates has a dog, and a fellow candidate also has a dog. Two of the ROC candidates first met while walking their dogs. I also learned that this candidate had an issue of the speed bumps that were proposed for the BLMH. The speed bumps were never implemented.

This candidate acknowledged responsibility for posting the notices to all of the unit bulletin boards last year regarding fighting the alleged decision to ban pets at BLMH and the forthcoming assessment increase. I believe the candidate made a statement from the podium to justify the posting, which is in violation of "the rules and regulations" by describing a conversation with a fellow candidate who had cautioned this candidate about the rule violation. The candidate's response was something to the effect "that rule was stupid and so I posted the notices anyway." This candidate has made prior statements about being a long term, 22 year resident at BLMH. That means that this candidate is one who was present most of the years 1982 to 1998 and benefited from the very low and nearly ruinous assessments. So I can understand why this candidate would be upset about assessment increases and become a leader in a coalition to overthrow the board.

I was given the opportunity to ask one question of the candidates for the ROC. I had four pages of questions and it was difficult to choose. I also knew this was pointless. Proxy ballots had already been cast and with few unit owners in the room to hear any of this, what I or anyone on the floor or the podium said would have no influence on the election results. So much for a commitment to "open communications".

However, I used that one opportunity to direct one question to the candidate who was a 22 year resident and apparently the leader of the coalition. I asked about the statement that the ROC had made in their mailing several weeks ago about “the majority of us”. I asked if, at the time of the mailing “did the ROC have a majority”. I was not given a direct answer. Instead I was told that the ROC had members in 45 buildings. I pressed again “Did the ROC have a majority of UNIT OWNERS", and I gave the number of units that would be. I was finally given a partially straight answer, and that answer was to the effect "no". At that point, I knew that I and the other unit owners had been deceived. In my case, multiple times. So I pressed again “Then you deceived me in the mailing and in your letter of response!” I was not given an answer. I see this as an integrity issue. In a written letter to the ROC on September 11, I asked "I construe from your statements that you represent a majority.... 169 units....you have made certain statements and should be willing and able to back them up. If you don't I must conclude that some of the statements the ROC has made are false, and designed to deliberately mislead". I reiterated this several times in my letter. The written response "we make no exaggerated or false statements."

It is unfortunate that this election was based on deception. How many people voted for the ROC thinking they were voting for or with the “majority”? Was this a fraudulent election?

Whatever the election results, I have to say at this point, that this is not a good beginning. As I said in my comments written prior to the election “Honesty and the ability to manage are my greatest concerns about any of the board candidates.” This group has not been honest. In response to my questions they have repeatedly said "this was not about assessments" but in fact, this group was formed immediately after the budget meeting last year when, according to the leading candidate "angry people met in the street after the meeting". At the podium the candidate claimed responsibility for organizing the unit owners to attend and protest at the budget meeting. The material sent to all of us by the ROC stated in their FAQ that "none of the ROC candidates have had conflicts or disagreements with the current board." Literally that may be true; for the budget meeting, this candidate stirred up the owners who were then set upon the board. I guess that would be called a covert conflict on their part.

The ROC candidates do not at this point have my trust. If their candidates do win this election, they will have one year to get tangible results. I don’t mean improved color brochures or better xerographic copies. They will be evaluated first, on their ability to perform the "Powers and Duties of the Board of Directors, which each candidate signed. Second, in this case, they will also be evaluated on how they performed the duties and promises on the "ROC Slate of Objectives".

During the meeting, the current board president did not actually manage the meeting, but sat quietly while other board members fielded questions or dealt will issues from the floor. This was very unusual; it is my opinion the president was in resignation. For this reason the meeting was more unruly and less organized than most I have attended.

I will post the election results after they are made available.

Thursday, September 25, 2008

My Comments Prior to the Board Election

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Here is my perspective about the candidates and the core issues which influence my vote.

Since purchasing 6-1/2 years ago at BLMH our property values have consistently increased. I attribute that in part to the city we live in but also to the fact that the board has a program in place to preserve or enhance the value of our condominiums. To put it another way, the value of our units is in large measure due to the excellent condition of the BLMH complex and it's current financial health. At present, our financial reserves are growing, the complex is well maintained and the board has plans in place to handle some of the major maintenance issues, such as the repair of the roofs. This complex is 30 years old and there will be increasing challenges ahead as the BLMH infrastructure ages and continues to deteriorate. It is our board that will be charged with making the difficult choices we face ahead. It is our choice as unit owners to invest in BLMH or not. Either way, there will be consequences. I would hope that this association will continue to be well maintained so that my property values are protected and we will continue to have the wonderful grounds and views from our windows and balconies. However, these are privileges which are not guaranteed. They are purchased with the funds I put in my assessment envelope each month. The decision of how to use those funds will rest with the board we elect tonight.

For this election, there are two groups, comprised of members of the existing board and a new group called the “Residents of Change”. The ROC is represented by three candidates.

I have two sources of information for making my selection and voting. I have my observations of the actions of the current board, the budgets, the monthly newsletters and I have a campaign letter mailed to me by the ROC. In response to that campaign material I wrote a four page letter to each of the ROC candidates on September 11. The ROC response included comments to my letter, an email, a “FAQ” and an “ROC Survey”.

I conclude that this election is about resources, communications and possibly misplaced anger. This association has finite personnel on the board, volunteers and limited funds to address the concerns of the unit owners. How these resources are allocated determines the quality of life here at BLMH. As I have stated elsewhere (in my blog) and in my letter to the ROC, I see the unit owners as a diverse group. I also view “change” as not always a good thing. The unhappiness about increasing assessments is an expression about unwelcome change.

Each board member has what I call an “open ended” agreement. They have to do whatever is necessary to satisfy the “Powers and Duties” of their position and they have limited time each day to do that. So if there is anger or outrage on the part of some unit owners, perhaps it is because we have failed to support the board in fulfilling their duties. If there are complaints about “being heard”, then a larger question is what can we as unit owners do to assure that our board members are available to be heard? The issue is not about making other people wrong but about seeking solutions. The board is in the hot seat of providing the time and making the critical decisions. I am but a unit owner, mostly an observer, sitting in the audience and expecting it will all turn out to my personal satisfaction.

The ROC Candidates, in their material, make statements from which I conclude that they feel they would do a better management job than the current board. The only way to know is to elect them and find out. There are risks in doing so.

It is very easy for things to get out of hand, and simple decisions made with good intentions by our board can have consequences for many years. The assessment decisions made in the period 1982 to 1998 have today affected each and every unit owner living at BLMH. During that period, a decision was made to hold the increases in assessments to a low value, an average of 2.59% per year. During that period unit owners were apparently happy, even though the association was going broke. However, when my spouse and I conducted informal interviews of residents while making our decision to purchase, there were complaints about the increases to assessments in 1999 and 2000!

In my letter to the ROC candidates I asked a lot of questions about their positions regarding assessments and budgeting. Why? Because I don’t want a repeat of the decisions made in 1984 to 1998 and which culminated in the financial condition of this association. There is every indication that the board was the “voice” of the unit owners in that period and as such, some poor financial decisions were made. The ultimate result was last year’s meeting in which to quote the ROC candidates “outraged residents demanded a reduction in the proposed 8% increase”. I wonder if there were any outraged members attending meetings in 1984 after a 10% assessment increase? The following year, the assessment increase was 0%.

Unfortunately, the ROC candidates have not revealed to my satisfaction how they will provide better management of the BLMH. On the issue of rising monthly assessments which resulted in a stormy association meeting last year, the ROC has stated in a written response to my letter of September 11 that “Interestingly, you are only the second person to ask about the rising assessments! We've been surprised that that topic is not first on everyone's mind, but it seems that the other issues surrounding the board have taken precedence”. The ROC candidates stated in the response to my letter that “Our election is not about expenses and assessments” and in that same e-mailing to me, the ROC candidates also stated that the ROC was formed at “last year’s budget meeting when outraged residents demanded a reduction of the proposed 8% increase” [to assessments].

The ROC candidates also have stated in their communications to me that “being heard… is really what the residents care about now”. In that same response to my letter, they further stated that “The current system allows no communication. Again, see our [enclosed] FAQ”.

The ROC candidates say that communications is not possible, and people aren’t being heard. But they also say in their published material that we, the residents were heard and as a result the proposed 2008 assessment increase of 8% was reduced to 5.5%!

I am a bit confused by these and other conflicting statements made by the ROC candidates. It may well be that the ROC is a good idea, but their candidates aren’t up to the task of board management.

As a resident, I have successfully communicated with the current and previous BLMH boards. By “successfully” I mean that I received responses that included letters, memos and telephone calls. I have attended several monthly meetings and all but one annual election. Sometimes what I was writing to the board or the management company was acted upon in the way I wanted and sometimes it was not. However, whether or not the board and our management company do what I want as I express my complaints or requests is not a measure of successful communication. That is about outcome or results, which is a different matter entirely.

After receiving the response to my letter to the ROC candidates and reading it several times, I debated about meeting with them but I decided against it. It is my position that they need to generate this, and not simply echo back my letters to me. For example, I noticed that the printed material they issue is not dated and I suspect that the “FAQ” and “Survey” were generated by the ROC candidates from my letter of September 11.

I must admit that some of what the ROC candidates have stated in their letter and publications did concern me, and the tone seemed undermining. There are five items in particular. There is the statement about “a majority of us” in their first mailing to me, but their unwillingness to even give me the number of units in that alleged majority, their slate to champion what they think are “forward thinking ideas” and possibly repress what they construe as backward thinking ideas, their agenda of fear; i.e. the current board is to be feared and will “retaliate” on unit owners, their statements that “there is no communications with the board”, and their opaque agenda regarding the projects they would fund from our assessments.

After reading their response and their materials, I find the ROC candidates to be an enigma. There is no doubt they want to place themselves on the board. Their primary agenda seems to be “trust us” and we’ll do a better job than the other candidates and the current board.

Things at BLMH are not perfect. I know communications could be better. So the choice is to vote for a group professing change and who thinks they can do a better job and hope it all turns out, or vote for the existing board. Either way, I now have the knowledge that there are some unit owners who are very unhappy and will continue to press their agenda, whatever that is. As an individual who has made a living successfully “managing change” I know it isn’t easy and I also know as a successful businessman that some of the choices facing this board are “mutually exclusive”.

As for the ROC, I am most disappointed that they have chosen to use the fallout and consequences of responsible decisions made by this board as a springboard for their candidacy. Most notably the “outrage” of unit owners over the assessment increases. In their material to me, the ROC candidates have not promised that they can or will reduce assessments or expenses. Merely that they will “keep our assessments as low as possible”. Which implies that it is the belief of the ROC candidates that the current board is not. The ROC candidates unwillingness to make promises about the management of BLMH that affects the bottom line, that is, my assessments, leads me to conclude that they know the board is hamstrung by decisions made nearly 25 years ago or they are oblivious. Either possibility is chilling.

There is the problem of “outraged” unit owners and how they treat our volunteers. I must have missed most of the confrontational meetings. I wonder how our board has been treated by “outraged” unit owners or those who harbor “bad blood” as the ROC calls it? Would these “outraged” unit owners been less “outraged” after last years budget meeting if the assessment increase had not been reduced? Is this about “being heard” as the ROC candidates say, or is it really about getting our way?

Honesty and the ability to manage are my greatest concerns about any of the board candidates. Hindsight is wonderful and forward thinking may be desirable but what we really need is foresight.

Quoting Gandhi in the ROC literature was a nice touch but for the business of managing and running a condo association with a million dollar annual budget, I think the following is more appropriate:

“Those who cannot remember the past are condemned to repeat it.” George Santayana.
“A goal without a plan is just a wish”. Antoine de Saint-Exupery.

Sunday, September 21, 2008

Residents of Change Summary of Documents

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Here are the various links to the posts regarding the "Residents Of Change". These are for all posts prior to September 22, 2008. I've assembled them here to save you the trouble of hunting through this blog to find them.

The ROC Email response in response to my Email dated September 12, 2008:
http://briarcliffelakes.blogspot.com/2008/09/roc-email-response.html

My Letter of September 11 to the ROC Candidates:
http://briarcliffelakes.blogspot.com/2008/09/open-letter-to-roc-candidates.html

The ROC Letter in Response to My Letter:
http://briarcliffelakes.blogspot.com/2008/09/roc-letter-in-reponse-to-my-letter.html

The ROC Survey Document:
http://briarcliffelakes.blogspot.com/search?updated-max=2008-09-15T06%3A55%3A00-07%3A00&max-results=7

Monday, September 15, 2008

My Initial Thoughts on the Response from the ROC Representative

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I'm glad I did get a lengthy response. Of course I have more questions. When I composed my letter, I designed it with some "baiting" questions and statements. I focused on assessment issues because there has been at least one "stormy" meeting with the board about this. However, reading the response of the ROC representative, I am of the opinion that they don't think it's the major issue. On the other hand, in that response it was pointed out that during "last year's budget meeting when outraged residents demanded a reduction of the proposed 8% increase....that was when ROC was formed.."

The fact that the budget meeting was the catalyst for the formation of the "Residents of Change" seems to validate my opinion that assessments were and probably are the major issue for this group. If the existing board is being opaque about the budgeting process, that would rankle owners who are upset about assessment increases.

Communication and community. Sounds good. So does advocating change. But to what purpose?

I particularly like the comment that "there can be no website unless the board allows one." Well, I guess this blog doesn't exist then! Of course, I do understand that an officially sanctioned website with details of budgeting, etc. cannot exist without board approval and the release of certain documents.

I also noted that in the response letter, the ROC representative obliquely responded to my questioning of their statement that they represent the "majority" of residents. This leads me to believe that they do not.

From what I have received to date, I am of the opinion that, for this group, there is a lot of mistrust of the board. To be honest, at present I have more trust of the current board than I do of this group. What is really lacking for the ROC group is a comprehensive "mission statement" or direction for BLMH. Of course, that's a "chicken or the egg" question. We can't have an official mission statement unless it is formulated by the board. Or can we?

I'd like to see an inquiry of "Where do we want this "community" to be in 20 years"? If there were such a comprehensive statement of that type, then "we" the unit owners could determine if the actions of this group were consistent with that "mission statement". The ROC seems most concerned with changing the board. I can understand that; they can't do anything to affect the changes they want unless they are on the board. However, I'm concerned about the possible consequences of anarchy. What happens if the board is reformulated for a small but loud group of dissatisfied unit owners? Will the majority be represented, or that group of dissatisfied unit owners?

I am grateful for the response. However, I must note here that since this is the first time I have been made aware of the FAQ and Questionaire, and because they were not released with the original letter from the ROC that I received last week, there is a possibility that these documents did not exist prior to the response I received.

That does not invalidate this group.

I'm still formulating a formal response to the ROC response and when I have finished, I'll post that complete response here!

ROC FAQ received with the email

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I received a FAQ from the ROC with the email. Here it is. The text is posted after the image. Sorry for the fuzzy image! I have removed names, addresses, email addresses and phone numbers. If you want to contact these people directly, if you are a BLMH resident, email me with your email address and a telephone number and I'll either email the FAQ to you or give you the telephone number of the ROC representative. Sorry. but I cannot release this information to you until I have verified that you are a resident!


Here is the text from the FAQ. I have removed names and telephone numbers, etc.

BLMH Residents Of Change (ROC)
FAQ
Frequently Asked Questions
The Residents of Change candidates have been talking and listening to a lot of folks over the past few weeks and we want to share with you some of the most frequently asked questions they’ve been receiving. If you have questions of your own, please call or email ______, ______or _______. Or stop by their homes—they are always willing to chat!

What is your opinion of [the professional management company]?
Let’s say that [the professional management company] is a baker and provides biscuits and bagels to BLMH. We don’t know the recipe that they use to create their products, we just know that we get our biscuits and bagels from them. Once we get into the kitchen and see how they blend the ingredients we’ll have a better idea of why their products taste the way they do. Perhaps they’ll allow us to tweak their recipe so that we may accommodate a wider variety of palates. We will say this about [the professional management company] - and it is our firsthand experience—they are not responsive to calls or even face-to-face inquiries. We will encourage them to become more responsive and courteous to the residents who pay for their services.

Have you had conflicts with current board members?
None of the ROC candidates have had conflicts or disagreements with the current board. That is one of the reasons why the Residents of Change organiza-tion chose us as candidates. There is no bad blood or contentious history between us and board members. Another reason why we were chosen is our back-grounds in conflict resolution and team building. Our success in our jobs depends upon our ability to overcome objections to reach common goals and work effectively with our colleagues. We intend to bring these on-the-job skills to our role as board members.

How will you work constructively with continuing board members?
We believe in team work. That is why we are running as a team with unified objectives and an implemen-tation plan. We will regard our fellow board members as part of the same team—after all, our goals should be to direct the association with fairness and consideration in an open and honest manner.

What do you mean by "forward-thinking ideas"?
Call it just plain old common courtesy, but we believe that every question from a resident should be answered, even if it is simply to say that their inquiry was received and someone will get back to them regarding it. Under the current directorship of our association, there is no mechanism in place to receive residents’ suggestions, comments, general questions, and yes, even complaints. We hope to change that by establishing an email address, a mailing address, and by publishing the phone numbers of board members who are willing to take calls from residents. Right now, it would appear that only ROC candidates are willing to have a discourse with residents. Our phone numbers, mailing addresses, and email addresses are readily available to all. If you note on the back of our association newsletter it clearly states in large capital letters "Contact [the professional management company] for all association related issues and maintenance." So, residents are virtually prohibited from expressing their thoughts to any board member. We would like to make it easy for anyone to express themselves. And be assured of a reply.

Another forward-thinking idea that also relates to communication is to develop Residents’ Roundtables as a sort of clearing house for issues that concern residents. The thought is that neighbors and friends can host a coffee-klatch, or after-dinner, or a Sunday afternoon get-together on a regular basis to find out what each other are thinking. This would be a great forum for exchanging ideas, bringing forth improve-ments, and sharing knowledge for the benefit of all. The candidates are all willing to attend these neighborhood roundtables and find out firsthand what people are thinking and saying.

Can you define "repressive measures"?
Well, the definitions of repression are to hold back or keep from some action; to control so strictly or severely as to prevent natural development or expression; to impose an inhibiting discipline that discourages free thinking. How much brighter our community could be if we lived under the opposite umbrella of progressiveness, enlightenment, open-mindedness, tolerance, cordiality, and good humor.

Do you intend to make changes regarding our landscaping?
Absolutely not! We love how BLMH looks and we will continue to maintain the grounds as beautifully as they are now. But, we believe that our residents deserve the same respect and attention that we currently give to the trees that line our streets.

Do you plan to raise or lower assessments?
Until we become part of the process that determines how assessments are levied we cannot know if they will rise, remain the same, or be lowered. We will certainly scrutinize every dollar amount in every account number and see if there might be ways to economize without losing or downgrading services. And, we’ll brainstorm with other association boards to see how they maintain services without overburdening residents with ever-increasing assessments.

Got a Question? Call or write us—we’re always happy to hear from our neighbors.

[names, addressess, telephone numbers and emails withheld]

ROC Survey document

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I also received this survey document with the email response and letter. I have deleted names to comply with the confidentiality goals for this site. Sorry for the fuzzy images. However, a text version is included at the end of this post. If you want an original then contact me:


BLMH Residents Of Change (ROC)
Tell us what YOU think.

You’ve been hearing a lot about us lately. Now, we want to hear about YOU!

What are some of the things you and your neighbors are talking about?

Below are some ideas that have been generated by residents we’ve talked to. Let us know if you
agree or disagree with them and add your own to the list.
Participate in “Resident’s Roundtables” to talk about issues informally
Organize a Block Party!
Publish board meeting minutes and board agendas
Change the board meeting to Saturday
Reopen discussions on visitor parking lots
Use building bulletin boards for association notices
Allow semi-annual community garage sales
Post bylaws and board business on a website
Raise money for certain projects with fundraisers
Find a new meeting place for board meetings
Your idea? ___________________________
Your idea?____________________________
What are your positive experiences of home ownership in BLMH?
______________________________________________
______________________________________________
______________________________________________
What changes would you like to see in our community?
______________________________________________
______________________________________________
______________________________________________

How do the following meet your expectations?
SATISFACTORY or NEEDS IMPROVEMENT
Building Exteriors
Building Interiors
Grounds / Common Elements
Pest Control
Snow Removal
Management
Additional Suggestions?
_______________________________________________
_______________________________________________
_______________________________________________
_______________________________________________

Who are you? (optional)
Name____________________ Address_________________
Phone ___________________Email ___________________

PLEASE RETURN SURVEY BY 9/25/08

To submit your survey . . .
1. Fax to xxxxx at (630) xxx-xxxx or Email to xxxxxx@yahoo.com or
2. Call any of the ROC candidates for pickup at your home
[names and telephone numbers removed per site confidentiality promise]

Thanks for sharing your ideas with us!
Together we’ll make positive changes for our community.